Contents Page No. - bcclweb.in coal Offtakeduring 201112 stood at 30.159 million ton- nes against...

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Contents Page No.

1. Notice

2. Management

3. Bankers & Auditors

4. Directors’ Report and Corporate Governance Report.

5. Comments of the Comptroller and Auditor General of India

6. Statutory Auditor’s Report and replies of Management.

7. Balance Sheet

8. Profit & Loss Account

9. Schedule to Balance Sheet

10. Schedule to Profit and Loss Account

11. Accounting Policy

12. Notes on Accounts

13. Particulars of Employee

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BHARAT COKING COAL LIMITED (A subsidiary of coal India Ltd.)

KOYLA BHAWAN, KOYLA NAGAR, DHANBAD

Board Secretariat

Ref. No. No. Secy : F-AGM/2012/ 399 Dated : 21.05.2012 NOTICE Notice is hereby given to all the Shareholders of Bharat Coking Coal Limited that the 41st Annual General Meeting of Bharat Coking Coal Limited will be held on 26.05.2012(Saturday) at 1.00 PM at the Registered Office, Koyla Bhawan, P.O. Koyla Nagar, Dhanbad to transact the following businesses:

ORDINARY BUSINESS 1) To receive, consider and adopt the audited Balance Sheet as at 31st March, 2012 and the

Profit & Loss Account for the year ended on that date along with Auditor’s Report and Directors’ Report thereon.

2) To appoint a Director in place of Shri N. Kumar, who retires in terms of Article 34(i) (e) (iii) of the Articles of Association of the Company, and is eligible for re- appointment.

3) To appoint a Director in place of Shri P. Soma Shekar Reddy, who retires in terms of Article 34(i) (e) (iii) of the Articles of Association of the Company, and is eligible for re-appointment.

. By Order of the Board (K.N. Mukhopadhyay) G.M(Company Secretary) REGISTERED OFFICE: Koyla Bhawan, P.O.: Koyla Nagar, Dist.: Dhanbad Dated:21.05.2012 1.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. A proxy form is enclosed.

2.The shareholders are requested to give their consent for calling the Annual General

Meeting at a shorter notice pursuant to the provisions of Section 171(2)(i) of the Companies Act, 1956.

MANAGEMENT DURING THE YEAR 2011-12

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CHAIRMAN-CUM-MANAGING DIRECTOR

Shri T.K.Lahiry : From 01.11.2008 ; continuing FULL TIME DIRECTORS

Shri P.E. Kachhap : Personnel ( from 11.07.2007 ; Continuing) Shri D.C.Jha : Technical (from 27.10.2009 ; continuing) Shri Amitava Saha : Finance (from 03.08.2011 ; continuing) Shri Ashok Sarkar : Technical (from 25.08.2011 ; continuing) PART TIME DIRECTORS Shri N.C. Jha : Director(Tech.) CIL, Kolkata (from 02.03.2007 ; 31.01.2012) Shri N.Kumar : Director(Tech.) CIL, Kolkata (from 29.02.2012 ; continuing) Shri P.Soma Shekar Reddy : Director Ministry of Coal, New Delhi (from 13.01.2012 ; continuing) Shri S.C. Bhatia Director Ministry of Coal, New Delhi (from 03.02.2011 to 12.01.2012) Shri Paul Joshep : Non-official Part-time Director (from 25.06.2011 ; continuing) Shri B.Rameshkumar : Non-official Part-time Director (from 25.06.2011 ; continuing) Dr. B.B.Biswal : Non-official Part-time Director (from 25.06.2011 ; continuing) Shri SB GhoshDastidar : Non-official Part-time Director (from 31.01.2012 ;continuing)

Permanent Invitees Shri Kundan Sinha ; Chief Operation Manager S.E. Railway, Kolkata (From 12.03.1010 to 30.01.2012) Shri G.K.Mohanty : Chief Operation Manager S.E. Railway, Kolkata (From 31.01.1012;continuing) Shri N.N.Sinha : Secretary Mines & Geology

Department

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Govt. of Jharkhand, Ranchi (from 06.11.2009 to 29.09.2011)

Shri A.K.Sarkar : Secretary Mines & Geology

Department Govt. of Jharkhand, Ranchi

(from 30.09.2011 ; continuing)

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BANKERS & AUDITORS

BANKERS State Bank of India

United bank of India Bank of India

Punjab National Bank UCO Bank

ICICI BANK

AUDITORS Statutory Auditors

M/s. Anand Rungta & Co.

Chartered Accountants, Patna

BRANCH AUDITORS

M/s. Bhartiya & Associates

Chartered Accountants Dhanbad

M/s. K.N. Jain & Co. Chartered Accountants, Giridih

M/s. Naha,Dhar,Kapur & Co.

Chartered Accountants, Burdwan

M/s. S.K.Singhania & Co. Chartered Accountant, Kolkata

M/s. Kay &Kay & Associates. Chartered Accountants, Kolkata

M/s. Kadmawala & Co

Chartered Accountants, Ranchi M/s H.K. Drolia & Co

Chartered Accountants, Dhanbad

M/s. R.K.Patnia & Co Chartered Accountant, Dhanbad

M/s Sanjay Rajoria & Associates

Chartered Accountants, Ranchi

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MANAGEMENT AS ON 26th May, 2012

CHAIRMAN-CUM-MANAGING DIRECTOR

Shri T.K.Lahiry

WHOLE TIME DIRECTORS

Shri P.E. Kachhap : Director(Personnel) : Shri D.C.Jha : Director (Technical)

Shri Amitava Saha : Director (Finance) Shri Ashok Sarkar : Director (Technical)

PART TIME DIRECTORS Shri N.Kumar : Director(Tech) CIL ,Kolkata Shri P.Soma Shekar Reddy : Director, Ministry of Coal, New

Delhi . Shri Paul Joshep Non-official Part time Director

Shri B.Ramesh Kumar : Non-official Part-time Director

Dr. B.B.Biswal : Non-official Part-time Director

Shri SB GhoshDastidar : Non-official Part-time Director

Permanent Invitees Shri G.K.Mohanty : Chief Operation Manager S.E. Railway, Kolkata . Shri A.K.Sarkar : Secretary Mines & Geology Deptt Govt. of Jharkhand, Ranchi

COMPANY SECRETARY

Shri K.N. Mukhopadhyay

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DIRECTORS’ REPORT To The Shareholders Bharat Coking Coal Limited Dhanbad Sirs, I have a great pleasure in presenting to you, on behalf of the Board of Directors, the 41st Annual Report of Bharat Coking Coal Limited along with Audited Accounts for the year ended 31st March, 2012. The Company has earned a profit of Rs822.36 crore against a profit of Rs1093.69crore crore for the previous year. The Audited Statement of Accounts, Auditors’ Report thereof and the comments of Comptroller & Auditor General of India are annexed to this Report. 1.0 OVERVIEW OF PERFORMANCE DURING 2011-12 1.1 Coal Production

The raw Coal production during 2011-12 is 30.203 MT compared to that of 29.004 MT over last year. In 2011-12, there is a growth in coal production of (+) 4.13% over the previous year. Coal production commensurate to corresponding off-take programme (as per MOU) 30.20 Mte.

1.2 OBR

Overburden removal including re-handling achieved during the year 2011-12 was 88.763 million cubic metre compared to the target of 84.00 million cubic metre. The achievement was (+) 105.67% of the target compared to the achievement of 88.372 million cubic metre in 2010-11, the growth is (+) 0.44%.

1.3 Productivity : Output per manshift (OMS)

Overall output per manshift (OMS) was 2.20 tonnes against 2.09 tonnes in 2010-11. The growth is (+) 5.26% As per MOU Man Productivity (Output/Manshift- Overall) (commensurate to corresponding to production target) 2.20 Te./Manshift

1.4 Wagon Loading

Wagon loading in 2011-12 averaged 2941 FWs/day compared to the actual of 2779 FWs/day in 2010-11. This represents a growth of (+) 5.83 % over the previous year.

1.5 Coal Offtake

Total coal Offtake during 2011-12 stood at 30.159 million tonnes against 29.385 million tonnes in 2010-11 with a growth of (+) 2.63% As Per MOU Coal Offtake 30.16Mte.

1.6 Supply of washed & direct feed coal

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Supply of washed & direct feed coal to the steel sector was 15.03 Lakh tonnes in 2011-12 against 16.80 Lakh tonnes in 2010-11. This represents a growth of (-) 10.54% over the previous year. This was due to low off-take of direct feed coal by steel plants. As Per MOU Washed Coal production- Coking inclusive DF 1.84Mte. Non-coking 1.59Mte

2. MANAGEMENT: a)The affairs of the Company during the period from 01.04.2011 to 31.03.2012 have been managed by the following members of the Board.

1. Shri T.K. Lahiry Chairman-cum-Mg. Director

: From 01.11.2008 ; Continuing

2. Shri P. Soma Shekar Reddy Director


3. Shri N. Kumar, Director : From 29.02.2012 ; Continuing 4 Shri S.C. Bhatia, Director : From 03.02.2011 to 12.01.2012 5 Shri N.C. Jha Director : From 02.03.2007 ; 31.01.2012 6. Shri P.E.Kachhap, Director

From11.07.2007 Continuing

7. Shri D.C. Jha, Director : From 27.10.2009 ; Continuing 8. Shri Amitava Saha : From 03.08.2011 ; Continuing 9. Shri Ashok Sarkar, Director : From 25.08.2011 ; Continuing 10 Shri Paul Joseph,

Independent Director : From 25.06.2011 ; Continuing

11. Shri B. Ramesh Kumar, Independent Director

; From 25.06.2011 ; Continuing

12. Dr. B.B. Biswal, Independent Director


13. Shri S.B. Ghosh Dastidar Independent Director


14. Shri G.K. Mohanty Permanent Invitee


15. Shri A.K. Sarkar Permanent Invitee


16. Shri Kundan Sinha, Permanent Invitee

: From 12.03.2010 ; 30.01.2012

17. Shri N.N. Sinha , Permanent Invitee

: From 12.03.2010 ; 29.09.2011

(b) Eight Board Meetings were held during the year 2011-12.

3. PRODUCTION PERFORMANCE 3.1 Production of Raw Coal 3.1.1 During the year 2011-12 the company achieved overall coal production of

30.203 million tonnes compared to the achievement of 29.004 million tonnes in the previous year.

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3.1.2. Comparative figures of achievement in respect of underground and opencast production for 2011-12 and 2010-11 are shown below. :

(Fig. in Million Tonnes) Mines 2011-2012 2010 – 2011 Target Actual Target Actual

Underground Production 4.500 3.483* 4.250 3.696 Opencast Production 25.700 26.720 24.750 25.308 Total 30.200 30.203 29.000 29.004

*UG production got affected due to heavy rainfall of 1541.8 mm in 2011-12 compared to 1033.9 mm in 2010-11 compelling stoppage of some u/g mines for safety reasons. 3.1.3 Break up of raw coal production into coking coal & NLW/ non-coking coal during the year 2011-12 was as under:

(Fig. in Million Tonnes) 2011-2012 2010 – 2011

1. Coking Coal 27.249 25.283

2. Non Coking Coal 2.954 3.721 __________________________________________________________________

Total Raw Coal 30.203 29.004

As per MOU Under Ground Production of Coal = 3.48 Mte. 3.2 OBR

Overburden removal (excluding re-handling) during the year 2011-12 stood at 81.361 million cubic metre against 83.227 million cubic metre in 2010-11.

3.3 Production of Hard Coke (in Lakh Tonnes)

__________________________________________________________________ 2011-2012 2010-2011 __________________________________________________________________ Hard Coke Production 0.000 0.000

3.4 Washed Coal Production

(Fig. in Million Tonnes) Mines 2011-2012 2010-2011 Target Actual Target Actual

Washed Coal ( C ) 1.825 1.421 1.702 1.549 ( NC/WPC ) 1.374 1.896* 0.690 0.992* Total 3.199 3.317 2.392 2.541 * Including WPC recycled from Slurry & Rejects of 0.307 M.Te. in 2011-12 & 0.323 M.Te. in 2010-11.

. 4. AVAILABILITY & UTILISATION OF HEMM W.R.T. CMPDIL NORMS:

The relevant details in this regard are shown below :

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_________________________________________________________ _________________ Equip Population Population Norms 2011-12 2010-11 -ment as on as on Actual Actual 31.03.12 31.03.11 AV% UT% AV% UT% AV% UT% Dragline 2 2 85 73 80.14 69.62 88.44 70.56 Shovel 160 166 80 58 82.15 72.39 84.42 77.54 Dumper 584 514 67 50 92.43 52.42 91.80 59.19 Dozer 132 138 70 45 80.29 55.61 81.05 52.75 Drill 122 120 78 40 80.79 52.12 79.51 62.11 As per MOU System Capacity utilisation (Overall) (Commensurate to corresponding production target) - 96.35%

5. HOLDING COMPANY CIL The Company continues to be a Subsidiary of Coal India Limited.

6. CONSTRAINTS The major constraints which affected BCCL’s performance during the year in terms of loss of coal production

(a) Loss of Coal Production ( Fig. in Lakh Te.) Sl. No. Causes 2011-2012 2010-2011 (i) Power Failure 2.774 7.302 (ii) Absenteeism 0.493 0.134 (iii) Rain 0.449 0.107 (iv) Mechanical Break down 4.180 13.953 (v) I.R. 0.412 2.404 (vi) Lag/Stowing 0.069 0.095 (vii) NA/Land 0.161 0.051 (viii) Roof Trouble & Others 6.462 11.165

Total 15.000 35.211 (b) Loss of Washed Coal Production ( Fig. in Lakh Te.) Sl. No. Causes 2011-2012 2010-2011 (i) Power Failure 0.530 0.542 (ii) Elec. & Mech Breakdown 3.445 2.697 (iii) Raw Coal Shortage 1.303 0.229 (iv) CC Bunkerfall 0.024 0.164 (v) Rain & Drowning 0.000 0.000 (vi) Operational Trouble 2.737 1.918 (vii) Maint Hold Up 1.494 1.155 (viii) Media Short 0.104 0.016

Total 9.637 6.721

7. STATUS OF POWER SUPPLY:

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7.1 Power Availability:

The power requirement for the year 2011-12 was assessed as 185.4 MVA , the average power availability was 179.2 MVA. The demand and availability during the previous year were 186 MVA and 172.07 MVA respectively. Aggregate duration of power interruption in 2011-12 was 2749 Hrs. as compared to 9149 Hrs. in 2010-11.

7.2 Operation of Captive Sets to supplement power availability:

The details of energy generated during 2011-12 by various captive DG station compared to previous year is noted below:

Captive DG Set

Installed capacity

(MVA)

2011-12 2010-11

Energy generated (KWH)

Running Hrs.

Energy generated (KWH)

Running Hrs.

Jealgora 7.2 - - - -

Madhuband 3.2 - - - -

Moonidih 6.4 12981 22.55 82542 90.00

Amlabad 1.6 794 04.20

Murulidih 1.6 353232 124.47 26531 128.20

Total 366213 147.02 109867 222.40

7.3 Further steps to supplement power availability:

(a) 2X10 MW Captive Power Plant based on fluidized bed combustion technology has been leased out and is operated by lessee since April 2011. Total energy injected in DVC grid is 69324255 KWH and consumed by Moonidih is 109000 KWH

(b) As per agreement between CIL & M/s. DLF Power Limited a 1 X 10 MW Captive Power Plant based on fluid bed combustion has been constructed under B-O-O scheme at Madhuband based washery reject as fuel . CPP has not been generating since 24.06.07.

(c) The power plant at Madhuband is besieged with problems right from the beginning on account of performance guarantee test, Capital cost, quality of washery rejects etc.

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(d) DLF power went for arbitration and the arbitral award is under challenge by BCCL in Civil Court at Dhanbad. Tariff order issued by JSERC is under challenge by BCCL in appellant tribunal of electricity at New Delhi.

(e) Appellant tribunal has dismissed the appeal and as such BCCL has filed special leave Petition with Honorable Supreme Court of India on 07.04.12 .

(f) Proposal submitted by DLF for restarting the plant is under the consideration of additional Solicitor General. Govt. of India and based on his opinion BCCL will take further action in this matter.

7.4 DVC is billing provisionally at present due to petition of tariff under challenge by DVC at Honorable Supreme Court.

8. PLANNING The Annual Action Plan for 2011-12 was drawn up for demand of 30.0 Million tonnes. Performance against the Annual Plan Target was as follows :

(i) Planned Production 30.000 MT (ii) Actual Production 30.203 MT

9. FINANCE

9.1 Capital Structure

Authorized Share Capital as on 31.03.2012. Rs. 2500 Crore Subscribed Share Capital as on 31.03.2012. Rs. 2118 Crore Paid-up Share Capital as on 31.03.2012. Rs. 2118 Crore

9.2 Unsecured Loan

The balance due to Coal India Limited as on 31st March, 2012 was Rs.1083.30 Crore as compared to previous year’s balance of Rs.1083.30 Crore.

9.3 Capital Expenditure

(Rs. in Crore) Head of Account 2011-12 2010-11

Land 0.63 21.04 Office/Service Building etc. 2.14 3.13 Residential/Welfare Buildings and Water Supply Arrangements

4.41 5.03

Plant & Machinery including HEMM and Railway Siding

302.93 177.44

Development, Prospecting & Boring 99.75 113.38 Vehicles and Furniture 0.86 0.92

TOTAL 410.72 320.94 9.4 Financial Results

During the year under review, the Company has made a net profit of Rs. 822.36 Crore after considering Prior Period Adjustment Account (as compared to last year’s net profit of Rs.1093.69 Crore). Details are as under:

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(Rs. in Crore) Particulars 2011-12 2010-11

Profit(+)/Loss(-) before Impact of NCWA-IX, Depreciation, Impairment, Finance Cost, Waiver of Apex Charges & PPA

1750.22 1316.86

Less, (i)Impact of NCWA-IX

857.18

--

(ii)Depreciation & Impairment of Assets 201.35 187.07 (iii)Finance Cost 22.84 42.01 Waiver of Apex Charges (-)151.64 -- Prior Period Adjustment (-)1.87 (-)5.91 Net Profit(+)/Loss(-) as per Profit & Loss Account

822.36 1093.69

9.5 Payment to Exchequer

During the year, the Company paid Rs. 1331.45 Crore to the State and Central Governments towards Statutory dues against Rs. 816.69 Crore paid in the previous year. The details are as follows:

(Rs. in Crore) Particulars 2011-12 2010-11

Royalty on Coal 567.92 508.33 Sales Tax / VAT 233.74 165.71 Stowing Excise Duty 29.60 28.33 Other Cess 4.11 5.79 Clean Energy Cess 147.10 84.98 Central Excise Duty 348.98 23.55

TOTAL 1331.45 816.69

The company paid an amount of Rs. 60.46 Crore as advance in March, 2012 towards the dues of Royalty on Coal for the despatches of March, 2012 payable in April, 2012 and also for 2012-13. Out of Rs. 60.46 Crore, Rs. 46.06 Crore has been adjusted against the dues of March, 2012 and the balance Rs. 14.40 Crore will be adjusted against the dues of April, 2012

10. Telecommunication:

(i) 15 Nos. of Biometric Finger print and proximity reader and accessories at a total value of Rs.726942.00 for attendance of the employees has been installed at Koyla Bhawan. Enrolment of Biometric templates of the employees at Koyla Bhawan have been completed and the system is operational.

(ii) Connectivity through MPLS-VPN at 82 locations for E-despatch has been established and flow of data has already started and the same is being processed by the user Departments.

11. Computerization:

a) All computerized activities already established in BCCL till end of the previous year are continued.

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b) BCCL has hosted its web portal www.bccl.gov.in along with related web services including corporate mail on its own server located at BCCL HQ.

c) Existing services located at BCCL HQ and all its area offices have been linked

through MPLS-VPN connectivity established in BCCL by its TELECOM department through BSNL.

d) Since the existing servers are very old and on the verge of decommissioning, a

proposal has been prepared to introduce a Centralized Data Centre concept using state-of-the art technology. It is expected that with the commissioning of the new servers most of the crucial computer applications shall become on-line with all the users across all area offices will get connected to the centralized Data Centre.

e) e-Despatch system from coal sale by road has been established during the year

2011-12. f) Coal Net Application Software maintenance for 2 years has been established and is

in operation. Under this contract necessary modifications and improvement to the existing applications are being done.

12.Geological Exploration and Drilling

12.1 Exploration Drilling

During the year 2011-2012 exploratory/production support drilling of 197.05 mtr has been done.

SNO

NAME OF BLOCK AGECY METREAGE

DRILLED REMARK

1 Kapuria MECL

Through Cmpdil

4988.50 Work In Progress

2 Singra MECL

Through Cmpdil


3 Chandrapura MECL

Through Cmpdil

1148.50

Exploration Completed On

04.11.2011

4 West Mohuda MECL

Through Cmpdil


5

Lohapatti Colliery(East

Of Maheshpur Dyke)

MECL Through Cmpdil


TOTAL 17197.05

Name of Work 2010-2011 2011-2012 % increase/ Decrease

Exploration Drilling

17633.70 17197.05 (-)2.48

http://www.bccl.gov.in/

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12.2 Preparation of reports/notes:

The work of Mining plan for lease renewal under MCR 1960 for 06 collieries viz Katras Choitudih,AKWMC,AARC,Salanpur,Gaslitand and Bhutgoria was under preparation at CMPDIL RI-II.

12.3 Deprtmental Drilling activity:

S.N

Name Of Drill

Progress of work (in mtr) Nature of work

% increase/ decrease

No of drill 2010-

2011 2011-2012

1 Vollam 160 HTR

1569.91 1061.93

Drilling/ Reaming/cleaning at New Akaskinari ,Madhuband ,Loyabad,Lodna,Jeenagora,kujama, Basudeopur

(-)32.36% 02

90.00 103.63 Casing lowering ,Basudeopur (+)15.14%

2 DR-2000 3773.9

2 4047.00 Work over rig for CBM wells at moonidih

(+)7.24%) 01

3 UG Burn side drilling machine 140.51

Proving of coal seam and dewateing at 37/38 incline of Bhowrah South colliery

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13. RESEARCH AND DEVELOPMENT Following 14 projects/schemes(R&D) schemes of CIL; were under implementation

during 2010-11 in BCCL Command Area. (CMPDIL is the nodal agency for monitoring all the R&D Projects) Sl. No.

Name of the Project & Implementing Agency

Month & Year of Start

Month & Year of comple-tion

Total Appor. Cost (₹ in lakh)

Status

1. Development of CMPDIL capacity for delineation of viable coal mine methane (CMM) blocks in the existing and would be mining areas having partly de-stressed coal in virgin coal seams. Project Code:CIL/R&D/1/28/08 Implementing agency

June, 2008

March 2012 March 2011 Nov.2010

522.00 1.Detail assessment of three block of BCCL and two blocks of CCL are under progress. 2. Samples of AI sent to CIMFR lab and CMPDI lab for Chemical & petrography test (100% sample sent). 3. National consultancy firm engaged for commercial and fiscal issues and framing of TSD and model contract document . Part-I of the draft submitted and presentation on the

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CMPDI document made by deloitte before FDs of CMPDI. Final report, after inclusion of all the suggestions submitted by Deloitte. Tender specification Document (TSD) & Model Development Contract (MCD) prepared by M/s. Deloitte has been sent to CIL for competent approval. 4. Work order issued to CIMFR on methane emission in April 2010. Work to be taken up in Jharia, East Bokaro, Singrauli, Korba & other coalfields. 5. To complete the remaining activities of the project, the project proponent has again requested for time extension upto March, 2012, which was discussed and approved by R&D Board of CIL held on 13.03.2011 at CIL(HQ), Kolkata.

2. Analysis of in-situ stress

for CBM exploration in Jharia Coalfield. Project Code: CIL/R&D/1/32/09 Implementing agency: CMPDI & ISM, Dhanbad

March 2009

Feb.2012 168.597 CMPDI-126.00 ISM-42.597

1. Analysis of well log data of two sells from Moonidih, Jharia Coalfield has been done. 2. Coal bed permeability and cleat volume/porosity have been estimated from ten wells in Singara area. 3. Cleat orientation plots were correlated with well log data. 4. In-situ stress orientation has been estimated from cleat orientation plots and average permeability contours. 5. Procurement of software COMET- 3 is in process and expected to completed shortly. 6.Hand held GPS receiver has been procured. 7. Macrals analysis and M..R. analysis for few samples have been carried out.

3. Recovery and utilization

of Coal mine methane in Jharia and Raniganj Coalfields. Project Code:CIL/R&D/1/30/09 Implementing agency: CIMFR, Dhanbad. Molopo Australia Ltd. Melbourne/ Molopo Energy India Pvt. Ltd., Kolkata/Greentech Solutions Pvt. Ltd. Kolkata/ECL/BCCL

June 2009

May 2011 3339.98 CIMFR-217.90 Molopo Aus- 3073.72 Molopoener.Ind- 48.36

The progress of the project is much behind the schedule time frame. The slow progress of the project was again reviewed in the last meeting of R&D Board of CIL held on 11.03.2011 at Kolkata. The committee directed CIMFR to place the order and also signing of agreement with Molopo, Australia Ltd. by 15th April, 2011. The CIMFR further directed to submit firm schedule of completion of the project activities to CMPDI after placing of order for procurement of equipment. Till date CIMFR, Dhanbad has not submitted the progress report regarding placing of order for procurement of equipment to CMPDI. The research work is being done at BCCL mine areas.

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4. GPS base production reporting system in OCP. Project Code: CIL/R&D/1/33/09 Implementing agency: System Department, CIL(HQ), Kolkata, BCCL.

Sep. 2009

Dec.2011 Aug. 2010

54.00 The project is being implemented at Vishwakarma OCP, BCCL. Extended up to Dec. 2011 to complete the remaining activities of the project.

5. Effective utilization of low

rank and low volatile high rank Indian coking goals for Blast furnace (BF) coke making. Project Code: CIL/R&D/3/1/09 Implementing agency: CMPDI, Ranchi and RDCIS (SAIL), Ranchi

Sep. 2009

Aug. 2011 265.00 CMPDI 245.00 RDCIS 20.00

A proposal form CIMFR for washing the coals of Muraidih Colliery , BCCL and North Urimari, Argada seam, South Karanpura Coalfields of CCL at 10%, 15% & 17% ash level in pilot plant to generate about one tone of clean coal has been received. Approval for the same awaited.

6. Development of

guidelines for safe dragline dump profile under varying geo-engineering condition in opencast coal mines of Coal India. Project Code: CIL/R&D/1/38/10 Implementing agency: BIT, Mesra and CMPDI Ranchi.

Feb. 2010

Jan. 2013 Jul.2011

75.60 for BIT, Mesra 59.00, For CMPDI-16.60

BIT, Mesra has submitted interim report on “Slope stability study of Dragline dump of Khadia and Jayant opencast Project, NCL” which were sent to concern department for valuable observations. The proposal of time extension for 18th month i.e. upto Jan. 2013 and cost revision submitted by BIT, Mesra was discussed and approved by R&D Board of CIL in its meeting held on 11.03.2011. Under this study all mines of BCCL having dragline will also be included.

7. Studies on determination

of the silica (Q-quartz) content in respirable air borne dust in coal mines and preparation of data bank of free silica and other minerals print in dust as well as in coal. Project Code: CIL/R&D/1/39/10 Implementing agency: BIT, Mesra and CMPDI Ranchi.

Feb. 2010

Jul.2011 336.02 CIMFR 186.02 S&R (CIL) -150.00

The project is not progression as per schedule due to delay in procurement of equipment. All the mines of CIL including all mines of BCCL will also covered under this research study .

8. Demonstration of coal Dry

Beneficiation System using Radiometric Technique. Project Code: CIL/R&D/2/05/10 Implementing agency: CMP Division, CMPDIL & Ardee HI-Tech Pvt. Ltd, Vishakhapatnam.

Sep. 2010

Aug.2012 2565.70 CMPDI-1814.40 Ardee HI-Tech 751.30

Some major equipment has been received . This project would be executed in Madhuband Washery, BCCL.

9. “Investigation on

augmentation of life of dump truck tyres through

March 2011

31st August 2012

53.28 Procurement of raw material for preparation of rubber compound at IIT, Kharagpur is in progress. The

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the improvement of the tyre retreading compound and development of an optimum road maintenance management system-Phase-II” Project Code: CIL/R&D/1/45/10 Implementing agency: IIT, Kharagpur and BCCL Dhanbad.

research work will be carried out in one of the BCCL mines as agreed by BCCL.

10. Assessment of proposed of shale gas in Gondwana basin with special reference to CIL areas. Project Code: CIL/R&D/1/46/10 Implementing agency: CBM (Cell), CMPDI(HQ), Ranchi and Advance Resources international , Washington, DC, UDA

April, 2011

Sep. 2013 400.00 For CMPDI 328.90 For ARI, USA 71.10

New project started recently.

11. Delineation of barrier

thickness against waterlogged workings in underground coal mines –MT/153. Implementing agency: CIMFR

May, 2007

Mar 2011 Oct 2010 Apr. 2009

342.2692 M/s. Groundradar, Canada conducted field trial with GPR system (without ATEX certification) in underground mines of East Basuria Colliery of Kusunda Area, BCCL and Tetulmari Colliery of Sijua Area, BCCL) . the system could able to defect coal barrier up to 60m & above with 5-10% . Project is likely to delayed as field trial will be conducted with GPR system after obtaining ATEX certification.

12. Development of self

advancing(mobile) goaf edge supports (SAGES) for depillaring operations in underground coal mines – MT(E0I)/159. Implementing agency: ISM, Dhanbad & M/s. Jaya Pvt. Ltd.(JBEPL), Hyderabad

Sep. 2010

Dec. 2012 197.75 For JBEPL- 135.65 For ISM- 62.10

Fintie Element Modeling(FEM) for stress analysis and fabrication of structural design of support has been completed by M/s. JBEPL, Hyderabad Department of Electrical engineering, IIT, Bombay designed the circuit and fabricated the PCB(Printed circuit board). After development of self advancing (mobile) goaf edge supports(SAGES) field trial will be conducted at BCCL & SECL.

13. An approach to explore

the applicability of spectrometry as a tool for assessment of coal quality-CU/58 Implementing agency: CIMFR, Dhanbad

Jan. 2010

Dec. 2012 147.61 Purchase of spectro- radiometer, differential GPS and reflectance unit are under process Geological details of different coalfields gathered Geo-referenced maps of different coalfields are being prepared. Field trial will be conducted at BCCL mines.

14. Development of Feb. Jan. 2012 354.491

For Installation of Aerosol Spectrometer

19

Methodology for estimation of Greenhouse Gas emissions in mine fire areas and their mitigation through terristerial sequestration- EE(EOI)/39 Implementing agency:CIMFR, Dhanbad and BHU, Varanasi

2009 CIMFR 341.77 For BHU 12.721

& aethalometer in the laboratory and colliery has been completed. Design of the system to collect Green House Gas being emitted from coal mine fire has been finalized . Chemical parameters of soil including anions, cations, organic carbon etc. have been completed. Analysis of physical parameters of soil of dump and other weastelands in Jharia & Raniganj coalfields have also been complested. Soil carbon pool of ‘Raniganj coalfields has been studied in detail for various land uses, a pre-requisite for the feasibility study of CDM ( Clean Development Mechanism). High value equipment like Gas Chromotograph, CO2, Analyzer , CH4 analyser and photosynthesis meter are under procurement.

14. MODERNISATION

14.1 The objective of the Company is to put more thrust on medium level technology with the use of Side Discharge Loaders (SDLs) and with infusion of Mass Production Technology on Risk/gain sharing basis or turnkey basis.

14.2 A total no. of 180 SDLs are on roll as on 31.03.2012 in comparison to 152 nos.

of SDLs as on 31.03.2011.

The major thrust is on optimization of operations to improve machine productivity. The figures given below shows decrease in production as well as decrease in productivity of SDL’s during 2011-2012 over last year. The decrease can be attributed to machines which have out lived their productive life. Factors responsible for low production and productivity is enumerated below.

• During monsoon of 2011-12 following mines were badly affected resulting in loss of production:- Simlabahal Burragarh Restored partially Hurriladih Bagdigi ---- Still out of operation

• Bansdeopur was closed for operation • Gopalichak was out of operation for about two months due to imposing

of violation by DGMS. • Reorganization of Kustore Area in Feb.’12 affected the smooth operation

of mines. • IR problem at Govindpur Area affected production for about a month and

half. • Alkusa 3-Pit closed since Feb.’12.

20

Particulars 2011-12 (Prov)

2010-11

Growth over Last year (%)

Production (MT) 3.183 3.23 -1.455 Productivity (Te/SDL/Day) 54.93 74.17 -25.94

14.3 2 Load Haul Dumpers (LHDs) were running in 2011-12 at Bastacolla Colliery in

comparison to 3 LHDs in 2010-11 (1 no. at Moonidih Colliery and 2 nos. at Bastacolla Colliery.)

The production by LHDs of the concerned mines are as follows:

(MTe) Mine 2011-12 2010-11 Moonidih 0.000 0.021 Bastacolla Colliery 0.0223 0.045 Total 0.0223 0.066

14.4 Introduction of mass production technology deploying Continuous Miner

with collaboration of manufacturers on risk-gain sharing basis: Project Report for Introduction of Continuous Miner (0.45 MTY) for exploitation of I/II seam at Block-II Area, has been approved by BCCL Board in its 262nd Board Meeting held on 3.01.2009 and subsequently by CIL Board on 22.12.2009 in its 253rd Board Meeting. The estimated capital outlay of the PR is Rs. 113.37 crores. The award of work has been approved in 278th BCCL Board Meeting held on 18.05.2011 in favour of M/s. Minop Innovative Technologies (P) Ltd. For extraction of coal from I/II seam by Continuous miner technology for a guaranteed production of 0.45 Mty The agreement has been signed on 03.03.2012 for FSA. LOA issued in favour of M/S MINOP INNOVATIVE TECHNOLOGIES (P) LTD. On 24.03.2012.

14.5 TURNKEY PROJECTS

Sl. No.

Name of the Mine/Project

Cap. (MTY)

Present Status

1

Muraidih (Barora Area)

2.00 Project was sanctioned for a Estimated capital cost of ` 339.875 Crs. in 265th CIL board held on 14.02.2011 DPR was to be submitted by the bidder by 25.09.2011. DPR Submitted. Presentation made in BCCL, HQ and CMPDI, HQ, Ranchi on 21.01.12 & 25.01.12 subsequently. Observations/recommendations as suggested in the presentation has been communicated to M/s. Minnop Innovative. Comments from related departments have been sought Vide letter No. BCCL/GM(P&P)/F- /2012:142 Dated 08.02.2012 are being compiled for communication to M/s. Minnop Innovative for incorporation in final PR being prepared by M/s. Minnop Innovative.

2 Kapuria (WJ Area)

2.00 Approval of award of Work to M/s. AMR-BBB Consortium at a capital Cost of ` 988.354 Crs for a minimum guaranteed production of 20.024 MTe. during commercial production period of 9 years approved in 279th BCCL Board Meeting held on 3.7.2011 and also by CIL. LOA issued on 10.09.2011. LOA has been accepted by M/s. AMR-BBB Consortium. Issues related to cost involved on coal drivage and insurance has been approved by FD. The estimated cost is likely to be ` 1094.241 Crs. now. BCCL Board has been informed of the same and in view of the observations of BCCL Board, the proposal along with Agenda Note and other relevant information submitted to BCCL Board, have been forwarded to CIL.

21

Sl. No.

Name of the Mine/Project

Cap. (MTY)

Present Status

Agreement signed on 18.04.2012 between BCCL and M/s. AMR-BBB Consortium

3 Moonidih XV Seam (WJ Area)

1.50 Approval of award of Work to M/s. INDU-SCCL-BUCYRUS (Consortium) at a capital Cost of ` 1230.274 Crs including insurance and freight for a total minimum guaranteed production of 22.50 MTe. during commercial production period of 9 years approved in 279th BCCL Board Meeting held on 3.7.2011 and also by CIL. LOA issued on 07.09.2011. LOA has been accepted by M/s. INDU-SCCL-BUCYRUS (Consortium). Agreement signed on 18.04.2012 between BCCL and M/s. INDU-SCCL-BUCYRUS (Consortium)

4 Moonidih XVI Top Seam (WJ Area)

0.70 NIT issued on 07.03.2011. Tender opened on 3.11.2011. (Six Parties participated.) Evaluation received from CMPDI. TC Meeting held on 01.03.2012. Price Bid opened on 17.04.2012 and sent to CMPDI for evaluation.

5 Lohapatty (WJ Area)

0.35 Approved by BCCL Board in its 268th meeting held on 24.3.2010. NIT floated on 05.04.2011. Tender opened on 15.11.2011. Evaluation of Part-I is being done by CMPDI, HQ. (Two parties participated.) First TC Meeting held on 11.04.2012. Clarifications sought from Bidders.

6 Madhuband (Barora Area)

1.0 Receipt and Opening date of tender extended. Revised date of tender receipt: 25.06.12; revised date of Opening Tender: 26.06.2012.

7 Sudamdih Shaft (EJ Area)

0.50 Approved by BCCL Board in its 273rd meeting held on 8.11.2010. CMPDI has been asked to prepare NIT. GR under preparation. North portion details are to be annexed.

8 Amlabad (EJ Area)

0.50 Tender has been cancelled and as advised by CMD on 3.2.2011, Pre bid/NIT meeting held on 10.6.2011. Pre-bid meeting held on 27.09.2011. Recommendation of Committee under approval.

9 Ghanoodih (Bastacola Area)

0.60 Approved by BCCL Board in its 270th meeting held on 14.05.2010. Presentation made on 29.09.2011. CMPDI is studying for NIT documentation.

10 Bhowrah (S) (EJ Area)

0.50 Approved by BCCL Board in its 271st meeting held on 22.7.2010. Presentation made on 29.09.2011. NIT to be prepared considering the present working seams of the mine. Bhowrah (N) also is being examined for Turnkey Project. GR under preparation.

11

P.B. Project (P.B.Area)

1.00 Single offer received. Evaluation of Part-I offer received from CMPDIL on 25.04.11. TC meeting was held on 25.05.11. Technical shortcomings were received from CMPDI as decided by earlier TC. Second TC Meeting held 18.07.2011. Single bidder participated. Tender not found Technically suitable hence it did not qualify. Tender cancellation Notice issued on 29.09.2011. Pre-NIT meeting held for better participation on 06.01.2012. 6 Parties participated. They will give suggestion within 10 Days. Only one party has submitted their observation. Observations and suggestions of other parties are being awaited.

12 Simlabahal (P.B. Area)

2.00 Approved by BCCL Board in its 272nd meeting held on 24.8.2010. Technical profile etc., for NIT will be prepared by CMPDI.

15.0 FOREIGN COLLABORATION At present there is no foreign collaboration project under implementation in BCCL. 16. Marketing: 16.1 Demand and Supply: The actual sector wise Demand and supply in 2011-12 Vis-à-vis 2010-11 are as under:

(Fig. In Million Tonnes)

22

Sector Demand* Actual ** % satisfaction

over demand

2011-12 2010-11 2011-12

2010-11

2011-12

(Prov)

2010-11

Power (Coal) 21.70 20.03 21.37 20.16 98.46 100.66

Steel/H.C. # 4.60 4.25 4.13 4.26 89.87 100.24

Fertilizer 1.13 1.05 1.06 1.11 93.94 105.74

Others 2.41 3.44 3.47 3.72 143.78 108.39

Colly. Cons. 0.16 0.24 0.09 0.09 54.69 37.75

Total 30.00 29.00 30.114 29.34 100.38 101.18

Middling 1.14 1.13 0.99 0.88 86.68 77.95

WNCC 0.80 0.69 0.84 1.00 104.99 145.19

Note: Power demand & Actual contains power CPP. # Steel/HC Sector contains coal despatch viz. DF, Own wash, Pvt. Coke, H/c Mfg. * as per AAP targets of Coal India ** As per statistics Dept. Report (M-18) 16.2 Comparison of Quantity of Transportation of Coal and its allied for the year 2011-12 and 2010-11 . Quantity in Million Tonne Item Description 2011-12 2010-11 % increase or decreased in

2011-12 over that of 2010-11.

Departmental transportation of coal(excluding HEMM), coke, slurry and rejects excluding sand

1.402454 0.9953 40.9% increase

Contractual transportation of coal, coke, slurry and rejects by trucks

19.692793 19.4611 1.19% increase

16.3 A Securitization Under the Securitization Scheme for the principal dues of the then UPSEB up to 30.09.2001 amounting to Rs. 138.56 crores, the State Govt. has issued 8.5% tax free RBI Power Bonds through State Bank of India, Security Service Branch , Mumbai Main Branch during the year 2003-04. During 2011-12 redemption has been made @10% of the principal amount in two equal installments of Rs.6.93 crores each and Rs.13.86 crores has been received. Two half yearly interests @ Rs.2.94 crores and Rs.2.65 crores totaling to Rs.5.59 crores has been received and considered in the Profit and Loss Account during 2011-12.

23

B. Settlement of old outstanding dues : Bilateral settlement meeting for resolving the old outstanding dues with

following core sector consumers on account of quality , shortage , POL etc. was done during 2011-12.

(₹ in crore) Sl. No. Name of the

Consumer Total disputed Amount

Amount Received by BCCL

Amount Accepted by BCCL

1. UPRVUNL 32.48 25.45 7.03 2. WBPDCL 0.29 0.00 0.29 3. CESC 16.93 5.52 11.41 4. NFL 9.07 4.62 4.45 Total: 58.77 35.59 23.18

C. Sales Realization.: In the past BCCL has been facing a serious problem in realizing the Sales

dues from the consumers for which untiring efforts have been made to maximize realization. This has shown significant improvement in realization, the details of which are given below:

Sl. No.

Year Turnover (Rs. in crores)

Realization (Rs. in crores)

% of Realization

1. 2011-12 8584 8274 96.39% 2. 2010-11 6952 6920 100.5% 3. 2009-10 5038 4890 97% 3. 2008-09 4181 4201 101%

D. E-Marketing

BCCL is pioneer in e-auction marketing of coal & coal products in CIL made a remarkable progress in generating additional revenue over the notified price during the year in question towards strengthening of the Company. During the year 2011-12, e-Auctions/e-Bookings were conducted and a total quantity of 57.042 lakh tonnes was offered for e-Auctions/E-Booking and the actual quantity sold out was 38.51 lakhs tonnes. The notified sale value for the quantity sold out was Rs.697.27 crores whereas the bid value was Rs.1495.15 crores and the gain over the notified price was Rs.797.89 crores which was around 114% above the notified value. As per MOU E-Auction of coal (% of Production) 14.68%

17. FOREIGN EXCHANGE EARNING & OUTGO: 17. Foreign Exchange Outgo (Fig. in Rs. Lakhs)

24

Value of Imports calculated on CIF Basis.

2011-12 2010-11

Stores and Spares Parts 1018.54 55.16

17.2 Inventory (Figure in Rs Crore)

Item 2011-12 2010-11 % incr./Dr. Inventory of Stores, Spares 97.32 86.12 (+)13.00 Cash realization against Scrap 6.19 5.19 (+)19.27

QUALITY CONTROL:

18.1(a) Quality of Washed Coal:

Average overall quality of washed coal supplied to the Steel Plants from different Washeries under BCCL are given below:

Washery AV Ash % 2011-12 Av. Ash% 2010-11

Dugda 20.2 20.1 Bhojudih 20.5 20.4 Patherdih 20.6 20.4 Sudamdih 20.6 20.0 Barora - - Moonidih 19.9 20.2 Mahuda 20.7 20.2 Madhuband 19.4 19.8 Wt. Avg. 20.3 20.2 18.1(b) Quality of Raw Coal to Washeries : Average overall quality of raw coal supplied to Washeries.

Washery AV Ash % 2011-12 Av. Ash% 2010-11

Dugda 29.56 21.02 Bhojudih 24.98 21.38 Patherdih 30.2 18.70 Sudamdih 27.54 23.65 Barora - - Moonidih 23.79 23.42 Mahuda 23.12 21.84 Madhuband 32.89 33.48 Wt. Avg. 27.44 24.30 18.3 Consumer Complaints:

There has been greater emphasis on supply of sized coal from different sources of BCCL. Number of complaints were few as given below: 2011-12 2010-11

25

No. of Complaints 14 15 N.B. the number of complaints are gradually decreasing as the areas are kept informed and intimated about the written complaints received from consumers on regular basis and the same is monitored religiously. As a result, the quality of coal loaded in the rakes is improving.

18.4 Sampling: Joint Sampling Status :

All consumers are under joint sampling arrangement at the loading end as per the modalities of the new FSA, executed with consumers. Based on the analysis carried out, the overall percentage conforming to scheduled grade is 87.4%(prov.) during 2011-12 compared to 87.4% during 2010-11 .

18.5 Action for improvement in Quality & Consumers Satisfaction:

i) All the major sidings in BCCL supplying coal to Power Houses have Feeder Breakers installed at strategic points to ensure 100% sized coal is being ensured.

ii) Regular inspections of sidings by the official of QC Deptt. , HQ and

interactions with colliery officials helps in the improvement of the quality of the dispatched coal.

iii) BCCL has installed “on line ash analyzer” in three Washeries namely

Patherdih, Bhojudih, Dugda indicating results in the PC and Monitor with regard to ash in raw coal as well as in washed coal. This has helped these washeries in keeping check on.

iv) Further BCCL has installed Auto Sampler in all its washeries for collection of

samples through mechanical means, thereby completely eliminating collection of samples manually for building confidence in the consumers.

v) For promoting consumers satisfaction HOD(QC) and Area General Managers

have been directed to interact with the consumers across the table to know their problems and grievances for redressal.

vi) Consumers are invited to see the coal at the sidings and all of them have

expressed their satisfaction for the quality of coal being loaded.

vii) Four nos.(4) of Bomb calorimeters have been installed at Bastacolla, Sijua, Lodna & CV Area Laboratories to assess the calorfic value of coal and all laboratories are being equipped to assess the quality of coal as per the FSA. Indents are already processed for procurement of another 5 Nos. of Bomb calorimeters.

As per MOU Despatch of coal to Power Sectors by Rail i) Sized Coal (%) 100 ii) Weighed on electronic Weigh Bridge before dispatch (%) 98.11

26

19. CAPITAL PROJECTS AND SCHEMES

1. Mining projects costing more than Rs.20 Crs completed during the year 2011-12 with approved capacity & capital.

NIL 2. Mining projects costing more than Rs.20 Crs. that have started contributing during

the year 2011-12 with approved capacity & capital. NIL

3. Mining projects costing more than Rs.20 Crs. sanctioned during the year 2011-12 with approved capacity & capital.

Name of the

Project Sanc.

Capacity (MTY)

Sanc. Capital (` Crs.)

Approval Date.

Kapuria 2.00 1094.241 12.Aug.2011 in 272nd CIL Board

Moonidih XV Seam

1.50 1230.274 12.Aug.2011 in 272nd CIL Board

4. Non mining projects costing more than Rs.20 Crs. sanctioned during the year

2011-12 with approved capacity & capital. NIL

5. RPR/RCEs costing more than Rs.20 Crs. sanctioned during the year 2011-12 with approved capacity & capital.

NIL Status of tenders regarding abandoned UG mines of BCCL is furnished below:

Sl. No.

Unit Status

1 Kenduadih Tender opened on 30.12.11. Single participation: JSW Steel JV. Tender cancelled vide Notice No. BCCL/CGM(CMC)/Global-22/Kenduadih/2012/391 Dated 23.04.2012.

2 Kustore Revised tender document is in final stage of completion at CMPDI. Final Technical scrutiny is being done. It is to be up loaded shortly. 3 Dharmaband

4 Victoria 5 Begunia To be prepared shortly.

Note: Open Retendering is to be refloated for all the abandoned mines.

1. RLS Maheshpur (5 MTY)

ESC of CIL in its 73rd meeting held on 03.01.2011 approved the Revised Cost Estimate of Rs. 140.4696 Crores. Award of work approved by BCCL Board in its 275th meeting held on 24.01.2011. Revised track lay out drawing is under preparation by RITES for shortening length of track. After getting drawings ,the same would be sent to CMPDI for approval. After approval by CMPDI, the same would be sent to m/s S.K SAMANTA for necessary correction in the drawing regarding RL LEVEL of the silo, bunker structure etc. Soil Investigating Report and Agreement copy has been sent to CMPDI, HQ on 21.03.12 for needful. After approval by CMPDI, the same has been sent

27

to m/s S.K SAMANTA for necessary correction in the drawing regarding RL LEVEL of the silo, bunker structure etc. NEW PROJECT North / South Tisra expansion OCP (6 MTY) BCCL Board in its 265th meeting on 01.09.2009 approved the PR for an estimated capital of Rs. 281.94 Crores. The report is sent to CIL for further consideration as observed in the 265th Board Meeting vide letter no. BCCL/GM (P&P)/F-10/2009/594 dated 26.09.2009. As advised by CIL, the PR has to be evaluated by an independent Financial Appraisal Institution as the cost of the PR is more than Rs. 150 Crs.

ICRA’s Appraisal Report submitted has been deliberated in BCCL Board on 03.03.2012 and recommended to CIL. Resolution awaited. Letter sent to CIL for approval of Updated Cost Estimate (UCE) vide letter no. BCCL/GM/(P&P)/F-14/12/257 dated 24.03.2012.

19.1 On Going Projects

The particulars of on-going projects in 2011-12are as follows:

Sl. No.

Projects Capacity (MTY)

Capital outlay (` Crs)

Production achieved during

2011-12 (MT)

Remarks

1. Bagdigi(Aug) RPR UG

0.27 11.54 0.016 Proposed to foreclose the project on as-is-where-is basis

2. Bararee IX/X Seam RPRUG

0.24 7.88 0.085 Proposed to foreclose the project on as-is-where-is basis.

3. Goluckdih(NC) OCP

1.20 12.27 0 Forest Land problem. This is included in Cluster-VIII as approved by MOEF. Public hearing conducted on 31.01.2012 Final EMP prepared by CMPDI has been submitted on 31.03.2012. EAC has considered it. Observation is yet to be communicated.

4. Damoda BJ Section

0.60 7.78 0 The land for Project could not be acquired. EAC has recommended but the final order awaited.

TOTAL 2.31 39.47 0.101

19.2 Projects kept in abeyance/frozen list of monitoring

28

Following projects have been kept in abeyance/frozen list of monitoring:

Sl. No.

Name of Projects Capacity (MTY)

Capital outlay

(Rs in Crs)

Status as on 31.3.2012

1. Block- III (Coking) OCP

0.45 45.97 Kept in frozen list of monitoring. The Project could not start due to fire in IX/X & XI/XII seams.

TOTAL 0.45 45.97

Status of tenders regarding abandoned UG mines of BCCL is furnished below:

Sl. No.

Unit Status

1 Kenduadih Tender opened on 30.12.11. Single participation: JSW Steel JV. Tender cancelled vide Notice No. BCCL/CGM(CMC)/Global-22/Kenduadih/2012/391 Dated 23.04.2012.

2 Kustore Revised tender document is in final stage of completion at CMPDI. Final Technical scrutiny is being done. It is to be up loaded shortly.

3 Dharmaband 4 Victoria 5 Begunia To be prepared shortly.

As per MOU

1) Stage I Board approval for initiating applications for clearances to be granted by MoEF ( Muraidih UG) 2.00Mte.

2) Stage II clearance and final approval (N/S Tisra OC) 6.00Mte. 3) Commissioning of New Projects (Goluckdih OCP) Commissioned in Nov.’2011 4) Incremental Production from on going projects (H/HEMM) 2.42 Mte. 5) Acquisition and possession of land 12.84 Ha. (Actual physical possession) 6) Revision/ modification of Long Term Document. Done in Sept.’2011 7) On-line updation of Project data base in MOSPI (Projects costing more that Rs. 150 Cr.)

Updated for two mines Moonidih XV Seam and Muraidih UG. 8) Dismantling of BCB siding for liquidation of locked up coking coal reserves. (8.0Mte)

As per advise of S.E.Railway the job to be taken up by M/S RITES . Proposal to be approved by BCCL Board.

NAME OF PROJECT: COAL BED METHANE RECOVERY AND

COMMERCIAL UTILIZATION 1.0 BRIEF INFORMATION OF PROJECT

29

1.1Methane is trapped in coal beds and is released during mining. If efficiently

recovered, coal bed methane associated with coal reserves could be significant potential source of energy apart from reducing hazard associated with methane during mining.

1.2 Considering above a project “ Coal Bed Methane Recovery and Commercial

Utilization” was approved by Ministry of Coal. The details of the project are as follows-

Project Number : IND/98/G34/a/IG/99 Project Title : Coal Bed Methane Recovery and Commercial

Utilization Duration : Five years ACC/UNDP Sector : 2000 Environment Policies Government Sector : Environment Sub-sector : Climate Change Government counterpart: : Department of Eeconomic Affairs, ministry of Finance Executing Agency : Ministry of Coal

FUNDING SUMMARY UNDP and cost sharing UNDP $ 1,210,000 UNDP/GEF $ 9,198,000 Government contribution (in cash) $ 4,544,000 Cost Sharing or Third Party UNDP and cost sharing Total $ 14,952,000 NB: The above figures do not include $ 1,960,000 which is

revenue to be generated during the project duration

Estimated starting date : June 1998 Government Contribution (in kind) :US $ 2,321,000 Brief description: The purpose of this project is to demonstrate the commercial

feasibility of utilizing methane recovered during coal mining activities from coal and surrounding strata before, during and after extraction of coal. Recovered methane will be used as fuel in a 1 MW internal combustion generator and in 50 ton mine dump trucks that are powered by converted bi-fuel engines.

1.3 Threes strategies for developing the coal bed methane resources associated with

mining are proposed:

i) To drain the gas that has existed in the coal seams for which mining is planned. ii) To recover methane from the surface by vertical drilling into the gob

areas iii) To recover gas by long hole horizontal drilling in the seam.

30

Presently this project focus on two mine sites, Moonidih & Sudamdih Coal Mines in the Jharia Coalfield . These mining properties contain sizable reserves of coal bed methane. The project is designed to recover methane using three different technologies. 1.4 RCE 2004,actual expenditure and updated status RCE 2004 was prepared to update the cost of the project. The updated estimate and

actual expenditure is as follows:

Collaborators Amount in Rs. Crores

(@ Rs. 45.05 = 1 US D) Provision as per RCE 2004

Actual expenditure

Up to 31mach”07 (In crores)

Remarks

A. UNDP/GEF 41.437 35.894 B. UNDP-India 5.451 4.575 C GOI :

Cash iv)Kind

18.058 6.994

0.798 3.00

Fund provided by CBM, Project, CMPDI, Ranchi Fund provided by BCCL

D. Part of the revenue cost met out of the income generated from the project on account of utilisation of exploited CBM in the initial time period.

8.33 0.42 Fund provided by BCCL for urgent spares required for drill

ONGC co-sharing 12.157 12.157 ONGC co-sharing for Hydro Fracturing equipment

Grand Total 92.427 56.844

1.5 The physical progress of CBM Project is as follow-

i. Gas Utilization The recovered gas from CBM well is supplying to Gen set for power generation

generated power is being supplied to CPP Colony, Moonidih Project. The Power generated in the Year 2011-12 is 146679 kwH. And in the year 2010-11 the generation is 9346kwH. 20. CONSERVATION OF ENERGY: The specific energy consumption in 2011-12 is 31.44 KWH/Te as compared

to 32.02 KWH/Te in previous year.

31

20.1 Power & Fuel Consumption:

2011-12 2010-11 a) Purchased unit(Mkwh) 949.09 928.74 Total amount(Rs. Crores) 406.17 286.31 Avg. rate/unit(Rs. per day) 4.27 3.08 b) Through D.G. sets(MKWH): 0.05 0.11 Unit/Litre of HSD 3.35 2.50 Avg. cost/kwh(Rs./KWH) 36.50 36.00

21. SAFETY 21.1 Statistics Relation to Safety. Performance is shown below:

Accident Detail 2009-10 2010-11 2011-12 No of Fatal Accident 8 8 7 No of Fatalities 10 8 8 No of Serious Injuries 41 74 28

21.2 Rock Mass Rating Rock Mass Rating of all development districts which were worked up to March’ 2012 were determined for proper framing of SSR and ensuring adequate support. Separate strata control cell has been established at H. Q .and Area level for this purpose. 21.3 (a) Steel Support

1. Programme for replacement of timber support in development districts has been achieved by providing additional 39 Nos of SDL Mounted Roof Drills and 36 Nos pneumatic Compressed Air operated Drills for hard sand stone roof in development districts.

(ii) Consumption of Steel materials for roof support during 2010-11

&2011-12 was as follows:

Item 2010-11 2011-12 a. 20 mm Tor Steel 761.97 MT 1517.59 MT. b. 4” M.S. Pipe (PEN) Nil 294 Mtr. c. Steel Chocks 1015 Sets 81 sets d. 1.6 mm M.S. Sheet 78.83 MT 63.74 MT e. 6 mm M.S. Flate 93.27 MT 64.40 MT f. 6mmx150mm MS sheet 340.55 MT 314.260 MT

21.4 Safety Audit:

4th Round Safety Audit of 64 no of Mines has been completed by Five outside experts. 5th Round Safety Audit of 55 Mines of BCCL has been completed by 6 Out side Mining Experts

32

6th Round of safety Audit of U/G as well as open cast Mines will be conducted soon.

21.5 Correlation Survey:

In order to verify and to establish the correct bearing/ co-ordinates in underground in relation to surface, it was decided to conduct Correlation Survey by CMPDIL by using the modern method like Gyrotheodolite. This has been completed in 69 pits, at 71 seam / horizons of 42 Mines till April-06 .

21.6 Check Survey:

Check Survey was completed in 69 mines. Routine Check Survey is in progress as and when required. At present check survey of Mudidih is completed. Check Survey of P.B.Project & Burrragah is in progress which is being done by H.Q. survey team. Out of 70 Mines, check Survey has been done by outside agency in the following mines:-

1. Burragarh BY I.S.M 2. Kankanee By CMPDI 3 KB5/6 - do - 4. Hurriladih - do - 5 East Bhuggatdih - do - 6 Bhowra (S) - do -

21.7 Other Safety measures taken to improve the Safety Standard of the Mines: INUNDATION: - The following actions hav been taken at BCCL level to reduce the accidents: –

i. Senior officers of company HQ are directed to inspect the mines in back shift to improve the supervision level in back shift from time to time.

ii. 4th Round Safety Audit of 64 no of Mines has been completed by five outside Mining experts & 5th Round Safety Audit of 55 Mines of BCCL has been completed by 6 outside Mining Experts.6th Round of Safety Audit of U/G as well as Open Cast Mines will be conducted soon.

iii. Before onset of monsoon, the danger of inundation from both surface and underground sources of water are examined in every mine .

iv. Risk Assessment for all mines of BCCL has been done and it is being reviewed every 6 months.

v. Alternate Source of power supply in the mines of BCCL has been provided. vi. Pumps and other accessories have been kept at centrally located place for

emergency purpose. vii. Escape routes in underground mine plan, as well as in underground working

has been demarcated. viii. Mock rehearsal is being conducted every year before onset of monsoon..

ix. Latest technique of ground penetration radar to determine the barrier thickness where one side is unapproachable has been used through NIRM at three mines Pootkee, Pularitand and Madhuband in the year 2004.

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ROOF FALL (a) Geo-mechanical properties of rocks are being studied and support systems are being scientifically designed on the basis of RMR and duly approved by DGMS. (b) Greater use of quick setting cement capsules grouted roof bolts for support in development workings in underground mines. (c) Steel supports are now replacing the timber support. In long wall faces , power supports are provided. (d) Introduction of SDL/ LHD in place of manual loading to reduce exposure of workmen to Green Roof. All manual districts have been converted into SDLs/ LHDs district except 4 districts of EJ area. (e) Production VS roof bolting records are maintained in a register at every mine..

21.8 OTHER CAUSES; -

(i) Measure for reduction in accidents in Open Cast Mines are being pursued through

• Codes of practices for different critical operations in OCMs framed and are being implemented.

• Implementation of traffic rules, checking of road-worthiness of contractor’s vehicle/ equipment by company’s engineers.

• Training of HEMM operators and contractor’s workers. • Enhancement of safety awareness through poster, publicity and

propaganda, safety drives and safety weeks etc. (ii) Thrust of training and retraining of workmen including contractor’s worker,

supervisors and executives to increase safety awareness. (iii) Regular monitoring of mine environment by hand held Gas Detector, Flame

Safety Lamps and continuous monitoring of noxious gases by environmental Telemonitoring system are in operation in 4 mines. (Bararee, Bagdigi, Sudamdih and Madhuband) . 45 nos of LMD have been provided and under installation for continuous monitoring of mine environment.

(iv) Thrust is given on inspection –

(a) By senior officer from company HQ, area CGMs/ GMs and agents.

(b) Back shift inspections. (c ) Inspection by ISO officials. (v) Co-ordination meetings as well as brain storming session on safety at different levels of company are being held for critical analysis of accidents and incidents. (vi) Introduction of system of plan vetting from ISO HQ before applying for

permission to DGMS. (vii) Function of Pit Safety Committee made more effective. (viii) Symposium on occupational health being organized at area level. (ix) Inspection of mines by Safety board members of the company. x) Our Company Training Performance

34

________________________________________________________________________ Sl No Type of training Programme 2010-11 2011-12 ________________________________________________________________________ 1 Management Training 400 300 2 Technical Training 358 448 3 IICM 247 298 4 Abroad 16 03 Total 1021 1049 Xi) Training Performance ________________________________________________________________________

_ Sl No Type of Training Programme 2010-11 2011-12 ________________________________________________________________________

_ 1 Basic 722 724 2 Refresher 8676 8721 3 Special & Others 1088 1024 4 As Per Safety Conference 4026 3241 Total 14012 13710

Xii) Sixth round Bipartite inspection of all mines and all washeries of BCCL by Trade

Union Representatives & Higher Management have been completed by 21/03/2012.

Xiii) Tripartite meetings was held on different dates at company H.Q. Level and Area Level during 2011-12.

Xiv) Seminar/workshop in every area (OCPs) for the awareness of high standard safety measures amongst the workers, supervisors and officers was held during the period 01.02.2012 to 04.02.2012.

As per MOU

1) Reduction in fatality rate (Fatalities/MM3 of total material excavated with respect to previous FY) (%) :2.94 (increase)

2) Reduction in serious injury rate (serious injury/MM3 of total material excavated with respect to previous FY) (%) : 61.05% ( decrease)

22.0 PERSONNEL: 22.1.1 Manpower :

1.1(a) Rationalization of manpower has been a major thrust area ofmanpower in

BCCL, and last few years has seen substantial reduction in manpower. Roadmap/action plan for gainful deployment specially in core.essential categories has been adopted during 2011-12 through transfer, promotion,conversion,selection,training,retraining and development.

The comparative manpower strength of the company as on 01.04.2011

compared to 31.3.2012 are as under:

35

Sl. No.

Category STATUS AS ON

31.03.2012 1.04.2011

I Executive 2564 2552

II Monthly Rated 11605 12641

III Daily Rated 45818 47070

IV Piece Rated 3939 4669

V Badli(Re-instated) 245 167

VI Others 713 835

Total 64884 67934

Reduction 3050

It may kindly be seen from the above table that the manpower as on 01.04.11 is 67934 and the manpower strength as on 01.04.11 is 67934 and the manpower strength as on 31.03.2012 is 64884 as such three is net decrease of 3050 (4.49% decrease) during the month of April’2011 to March’2012.

1.1(b) Manpower Budget : Manpower Budget for 2011-12 was approved by the

Board of Directors of BCCL on 1st October, 2011. The Manpower Budget of the Company is based on scientific analysis & rationalization of available manpower resources. Sufficient provision of manpower has been made for core/essential designations to achieve production target as well as extensive computerization in the Company for 2011-12.

1.1(c)Technical Pool: Rationalization of existing manpower from surplus area to shortage area, surplus designation to Shortage designation through selection, regularization and conversion in conformity with Cadre Scheme has already been undertaken during the last three years. The shortage of HEMM Operators like Shovel, Dozer, Dumper and Drill Operators are being met among the existing employees of the Company who possess Heavy Motor Vehicle driving license (in case of Dozer Operator endorsement of tractor driving license also) and other eligibility criteria in conformity with cadre scheme/norms of the company. During the year 2011-12 selection of 283 HEMM operator(Trainee) from departmental candidates were made and have been put in the job as indicated below:

Designation Nos of selection made Shovel Operator 93 Dumper Operator 123 Dozer Operator 54 Drill Operator 13 Total: 283

Besides the above, departmental selections were also made in same critical designations.

1.1(d) Home Grown Timber Scheme.

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Coal Industry in general and BCCL in particular is experiencing acute

manpower shortage in statutory designations i.e. Overman , Mining Sirdar, Surveyor etc. , a scheme has been launched in Mining Training Institute , HRD Department, BCCL. This scheme is known as ‘Home Grown Timber’ and is aimed at fulfilling the shortages of Overman, Mining Sirdar and Surveyor by departmental manpower through training and retraining.

Under this scheme , eligible departmental candidates are being registered for

different statutory exams through extensive awareness campaign using banners, posters, pamphlets. After registration, quality training is being imparted to our departmental employees so that they can pass the statutory examinations conducted by DGMS. The candidates who pass the written exams are given rigorous training , in addition, a mock interview is also conducted as a simulation exercise to instill confidence of the candidate.

Under Home grown scheme, similar action is also undertaken for fulfilling the shortage of Electrical supervisor and Winding Engine Operator by departmental manpower through training and retraining. 1.1(e) ‘Super 40’ Scheme for Survey Candidates Coaching to qualified and eligible employees of the Company is being provided for appearing in Surveyorship Examination conducted by DGMS. Apart from this, simulation exercise as mock interview is also being taken to enable Survey Apprentices who have been provided coaching and mentoring to face the statutory exams of DGMS. 1.1(f) Gainful utilization of Female Employees. An action plan has already been formulated to meet the shortages in semi skilled and skilled nature of job, which can be performed by female employees of the company. For the purpose, 30 such deployable designations have been identified where potential of existing female employees can be best utilized in the interest of the company, after their training and retraining for the job as per their suitability . This helps in meeting the shortages in essential designations from internal sources, and acts as a motivating factor and also opens scope for career growth of female employees of the Company. 1.1(g) Female literacy Drive: It was observed that many of our female employees in spite of being technically proficient cannot shoulder job of higher responsibilities in essential categories due to lack of formal education, i.e due to being illiterate. To remove this stigma of illiteracy, BCCL in collaboration with Central Board of Workers Education (CBWE) , an organization under Ministry of Labour, Government of India launched Female Literacy Career Development Drive in BCCL so that these female employees can meet the eligibility criteria of literacy as laid down in the Cadre Scheme. Under the programme undertaken the results have been encouraging as shown below:

Status of Career Growth of Female employees.

37

Phase Nos. of options

received Nos. of optionss found eligible

Nos of female employees found illiterate

Nos of female employees passed Literacy Test CBWE Exam.

1st Phase 837 268 218 137 2nd Phase

762 218 380 155

1.1(h) Selection of Security Guard (Trainee), 2nd Phase : With a view to guard important installations and strategic points in different

Areas/Units of the company and also to strengthen security scenario, applications form existing employees of the company have been received and the selection of 2nd phase has been completed, altogether 70 Security Guards have been selected, and are undergoing further training under the CISF. In the first phase 174 departmental candidates were selected.

1.1(i) Selection of Data Entry Operator :

To improve the efficiency of office management through computerization and office automation, selection of 14 Data Entry Operator(T) has been made and as per provision made in the Man Power Budget 2011-12 from amongst the eligible employees of the Company.

1.1(j) Promotion Orders : During the year a total number of 5021 employees were promoted across

different disciplines and grades and categories. As per MOU Representation of minority member in recruitment committees : 100%

22.1.2 HRD AND MANAGEMENT DEVELOPMENT: 1. MOU As per the MOU, target for 2011-12 fixed by CIL for BCCL vis-à-vis

Achievement with respect to parameters related to HRD were as follows:

(a) No of Executives trained

Target - 285 Achievement - 681

(b) Formal training in Project Management from Recognized Institute Target - 5 Achievement - 7 (C) Training of Medical Professionals in occupational health and safety

38

Target - 6 Achievement - 6 (d) Certified training in Contract management. Target - 5 Achievement - 9 (e) Conducting workshop for awareness on sustainable development. Target - 01 Achievement - 01 2. No. of employees trained for statutory posts. --------------------------------------------------------------------------------------------------------- Particulars 2011-12 2010-11 % Increase ---------------------------------------------------------------------------------------------------------- Mine Manager ship 108 84 1st Class & 2nd Class Overman 55 69 Mining Sirdar 294 278 Surveyor 119 112 Winding Engine Operator 87 131 Gas Testing 350 241 -------------------------------------------------------------------------------------------------------------- Grand Total 1013 915 +10% --------------------------------------------------------------------------------------------------------------- 3. In-house training programme for the year 2011-12. The target fixed for training during 2011-12 has been achieved. There

is substantial overall increase in all the categories. The details are as under: Particular 2011-12 2010-11 % increase No. of persons 6445 5471 +18% Trained -------------------------------------------------------------------

Special thrust was given on the critical topics like skill development for statutory manpower ,vigilance awareness, Interaction/Induction of MTs, Retiring persons, Female development, and computer awareness.

4. Female employee trained during 2011-12. Particular 2011-12 2010-11 % increase Executives 175 60 Supervisors 144 280 Workers 604 489 --------------------------------------------------------------------- ` **Total 923 829 + 11% --------------------------------------------------------------------- ** Female Training at Institutes 5. Training programme conducted institute-wise for MOU and non-MOU

39

during 2010-11 and 2011-12. Name of Institute 2011-12 2010-11 % increase M.D.I. 2642 1107 S.D.I. 1462 1753 M.T.I. 867 964

**E.M.T.I. 1474 1647 --------------------------------------------------------------------------- Total: * 6445 5471 +18% --------------------------------------------------------------------------- * Includes non schedule prog. conducted at institutes.

** CILMTI, Moonidih merged with EMTI, Dhansar. 6. Training at IICM, Ranchi 2011-12 2010-11 % increase 298 247 +21% ------------------------------------------------------- 7. Training programme conducted in VTC 2010-11 and 2011-12. Particular 2011-12 2010-11 Achv. Target Achv. % Achv. Basic Nil 724 722 Refresher 8450 8721 8676 Special & others 3314 4265 5114 As per Safety conf. Recommendation ------------------------------------------------------------------------------- Total 11764 13710 117% 14512 ------------------------------------------------------------------------------- 8. External Training; 2011-12 2010-11 % increase ___________________________________ 752 870 -13% __ 9. PDPT Training under Apprentice Act. Continuing Joint Total/ Achv. % Achv. Achv. From in Target 2011-12 2010-11 2010-11 2011-12 ---------------------------------------------------------------------- 68 41 109 109 100% 92 -- ---------------------------------------------------------------------------------------- 10. Training of Contractor’s workers 2011-12 2010-11 Target Achv. % Achv. Achv. 400 810 +203% 1453 ----------------------------------------------------------------

11. Vocational training provided to students

40

2011-12 2010-11 Target Total Reported Total % Achv. Achv.

Nil 620 620 +100% 517 ------------------------------------------------------------- 12. Human Resource Development (Performance as per MOU parameters)

Parameters Performance Executives to be trained. (as % of Total executives on roll)

35.84%

Certified training in Project Management ( No. of executives trained)

7

Certified training in Contract Management ( No. of executives trained)

9

Training of medical professionals in occupational health and safety. ( No. of executives trained)

6

Conducting workshop for awareness on sustainable development. ( No.)

1

SPECIAL INITIATIVES:- i. Statutory Manpower Development- Developing statutory manpower in critical designations like Mining Sirdar, Overman, Surveyor, 1st Class & 2nd class Mine Managers continues to be an important thrust area for the company. The success of "Home Grown Timber" & "Super-40" schemes by MiningTraing Institute (MTI) under HRD department has created benchmark in developing statutory manpower for the company. In 2011-12, in surveyorship final examination, BCCL alone accounted for 30% of the total number of successful candidates in India. Similarly, under training at EMTI, in 2011-12, out of 19 candidates from BCCL, who appeared for WE Operator's examination, 12 candidates have passed, registering a success rate of 63%. ii. Critical Category Manpower Development:- The role of Excavation and Mechanization Training Institute (EMTI) under HRD in developing critical category manpower like HEMM Operator(T), Winding Engine Operators(T) and Electrical supervisors from among company's internal resources is quite imminent. Besides the above, it is playing important role in skill upgradation of personnel, engaged in operation and maintenance of Electrical, Mechanical and HEMM equipment. iii. Female Literacy Drive- This is the culmination of the policy adopted by apex management of BCCL to conduct the literacy drive with the active co-operation of CBWE (under Ministry of Labour and Employment, Govt. of India) with the aim to gainfully utilize the large force of illeterate female employees of BCCL by providing literacy certificate and thus making them eligible for different jobs as per cadreship schemes of the company. 32 (Thirty two) designations, including some directly production linked designations have been identified, where such female employees can be deployed.The drive is being conducted in phases. In the first two phases a total number of 292 female employees have been provided

41

with literacy certificate by CBWE. The third phase for the drive is in progress and which 245 more female employees have appeared. iv. Computer Literacy Drive- In pursuance of directive and guideline by the apex level management of BCCL towards making all BCCL employees computer literate, HRD is imparting basic level computer application initially to executives and ministerial staff. The drive is in progress and till March, 2012 about 3500 personnel have been provided basic computer application training. v. Preventive Vigilance Awareness Program- This was a special drive which was organized under the guidance and behest of CVO, BCCL to spread awareness among all levels of executives including newly promoted executives regarding vigilance matters and guidance in work abiding rules and laws in work processes. vi) Management Trainees Grooming- HRD department is playing active role in the grooming process of MTs in the company. Three types of trainings are being conducted for MTs at HRD like- (a) Induction trainings (b) Inter-action trainings with higher level management including company Directors and CMD & (c) Technical trainings, separately for different disciplines. HRD dept is also taking care of the well being welfare of the MTs and their adjustment in the Organization. . 22.1.3 Welfare & Community Development Activities.

(a) Figures related to Community Development works are given below :

Year Budget Expenditure % Increase in expenditure with respect to previous year

2008-09 252.00 215.78 16.13 2009-10 275.00 257.88 19.51 2010-11 1375.00 315.00 22.15 2011-12 1450.00 550.00 74.60 During the year 2011-12 the approx expenditure on CSR /CD works was Rs 550.00 lacs which is higher at 74.60 % than last year’s expenditure. Budget provision for the year 2011-12 was Rs. 1450.00 lacs out of which Rs. 115.00 lacs was exclusively earmarked for medical services under CSR. Some major and focal activities undertaken during the year 2011-12 are as under:

CSR ACTIVITIES Performance of MOU parameters for 2011-12: CSR As per the MOU, target for 2011-12 fixed by CIL for BCCL vis-a-vis achievement with respect to parameters related to CSR were as follows: Sl. No.

Parameters /items Performance

a) Installation of hand pumps in 60 nos.

42

peripheral / adjoining village. b) Solar lamps in peripheral villages 130 nos. c) Addition of class room for girls

school in BCCL command / peripheral area.

250 no of beneficiaries.

d) Hostel room extension in peripheral area of BCCL maintained by trust/others for poor section of students.

4 nos.

1. Drinking Water Facilities:

Providing and installation of Hand pumps and Deep Bore Well along with provision of Submersible Pumps& Motors. (Total nos. of beneficiary villages : 40)

2. Installation of Solar Lights:

Providing and installation of 130 nos. Solar Street Lights. (Total nos. of beneficiary villages : 53)

3. Construction of Class Rooms/Halls in School:

Total nos. of beneficiary schools : 4

4. Construction of Hostel Rooms in Girls School:

Total nos. of beneficiary schools : 2, Rooms provided: 4

5. Construction of Community Halls:

Total nos. of beneficiary villages : 2, Halls provided : 2

6. Construction of Toilets:

Total nos. of beneficiary villages : 2, Toilets constructed : 8

7. Blanket & Sweater Distribution

Total 10400 Blankets and 4000 Sweaters have been provided.

WATER SUPPLY

1. Installation of Pressure Filters:

25 nos. Pressure Filter Plants of 5000 gph to 15000 gph capacity have been installed in different Areas of BCCL, the total installed capacity of which is 4.16 mgd (approx) . Tender for installation of 28 nos. 1200gph to 11600gphPressure Filters have been done which will augment the installed capacity by 5.76 mgd.

2. Multipurpose Utilization of abandoned mine water:

For multipurpose usages of available mine water from Barora, Block-II & Govindpur Areas, a project is under implementation under which the mine water will be conveyed into two reservoirs situated at Khonathi & Behrakudar villages of Baghmara block. The total water storage capacity of these reservoirs together will be about 47 million gallon and about 25000 population will be benefitted out of this multipurpose water supply scheme..

43

3. Desiltation of Jamunia Dam :

Desiltation work of Jamunia Dam, which is the raw water source for Jamunia Water Treatment Plant(3.50 mgd), has been completed. This is a capture dam and serves the Areas of Barora and Block-II.

4. Proposal for gainful utilisation of mine water discharge:

It has been proposed to arrest the mine water discharge flowing into natural water courses in respect of all Areas by diverting the same to flow into ponds of peripheral villages. This will not only save wastage of water but rather be channalised for the utilisation by peripheral villages , which face Shortage specially during summer season. Approximate 2.16 mgd water from WJ Area is at present being discharged into 09 nos. ponds in peripheral villages presently discharge of mine water into natural drainage courses is nil in respect of WJ Area.

HOUSING

Before Nationalization Present Position No. of Standard Residences

No. of Non-Standard Residences

No. of Houses

Satisfaction No. of Standard Residences

No. of Non-Standard Residences

No. of Houses

Satisfaction

26869 10524 37393 21% 52419 26017 78436 100% UPGRADATION OF COLONIES

In BCCL every Area has its own residential colonies for the employees. As most of these colonies were established soon after Nationalisation Renovation/upgradation of such 41 colonies situated in non-coal bearing areas have been undertaken. In first phase, repair/maintenance and construction of infrastructural facilities like Roads/Drains/Compound Walls/Parks etc have been taken up. Thorough repair and maintenance of all quarters of these colonies has been proposed to be taken up in 2nd phase during next three years by taking into consideration 1/3 rd of total quarters each year.

SPORTS & CULTURAL ACTIVITIES

1. BCCL hosted Inter Company Table Tennis Tournament in which 09 Subsidiary companies including Singareni Coal Company participated.

2. Under the aegis of District Table Tennis Association, the State Championshiop of Table Tennis Tornament was organised by BCCL in Nehru Complex.

3. T 20 East Zone Cricket Tournament was organised in Jealgora Stadium under the aegis of Dhanbad Cricket Assiciation

4. Financial assistance have been provided to various Sports & Atheltics Organisation

44

5. The Bharat Coking Coal Natya & Nritya Sangh Won the All India Drama Competition Championship held at Mumbai.

6. Organised sports for Handicapped & Blind Children

7. Sponsored the State Cricket Championship for handicapped players and the Team won the Jharkhand T-20 Cricket Tournaments for disabled, held in Ranchi.

8. Jeevan Jyoti School is running for physically & mentally challenged persons from downtrodden and poor families of the society. Financial aid has been granted to the school.

Apart from above, the following Sports and Cultural activities were organized by Company during the year 2011-12 as per sports calendar :-

(i) Chess Inter Area (ii)Bridge Inter Area (iii)Badminton Inter Area (iv)Volleyball Inter Area (v)Kabaddi Inter Area (vi)Football Inter Area (vii)Cricket Inter Area (viii)Zonal Athletic meet (ix) Carom Inter Area

Besides the above , the following activities were organised during the year:

1. Summer coaching camps for outstanding athletes was conducted under the

supervision of Sri Bandhan Toppo, BCCL Athletic Coach.

2. Cricket Coaching Camp of Dhanbad District was conducted with the help of BCCL

at Jealgora Stadium, Lodna Area.

3. Cultural Programme was performed by the children of different schools at

Jealgora Stadium on occasion of Republic Day 2012 in a befitting manner.

4. Koylanchal Nattya Sangh organised Cultural Programme at CCWO on the occasion

of Childrens’ Day, 2012 where employees & their wards participated.

5. 30 members team of Koylanchal Nattya Sangh sponsored by Welfare Department

of BCCL at Mumbai in 2011-12 . They got several medals.

Other Welfare Activities 2011-12 :

1. Company is providing reimbursement of tuition fees & hostel charges to the words of wage board employees who secured admission in Government Medical Colleges & Technical Institution as enlisted by BCCL from the academic session 2010-11. In the year 2011-12 ( 23 ) number of students were provided the above facility to the tune of Rs 4,02,116/-

45

2. The wards of employees are being provided Scholarship to facilitate their education expenses through BCCL Employees Benevolent Fund Society. For the financial year 2011-12, 2043 applicants were provided Scholarship to the tune of Rs.26,87,600/- . Other than Scholarship following facilities are being provided to the employees :

- Financial Assistance ( In case of Death ): Rs. 8,80,000/- No. of Heads 88 @ Rs. 10, 000/- each (2011 -12). & Rs. 60,000/-... No of heads – 3 , Rs. 20,000/- each.

- Financial Assistance ( In case of Long sickness ) Rs17,868 /-. No. of Heads : 01 ( 2011-12 ).

3. The wards of employees are also being provided Scholarship under the Coal India Scholarship has been awarded to 124 number of employees wards to the tune of Rs. 1,50,840/- .

Other Welfare Activities 2011-12. BCCL is extending financial assistance as per CIL’s extant rule to 83 nos. private committee managed school and 11 nos project schools. The details of beneficiary school is as below :

_____________________________________ Sl. Particulars As on No. 31.03.2012

1. Primary School 54 2. Middle School 20 3. High School 07 4. Girls High School 02 5. DAV Public School 08 6. Vidya Vikas Samity School ( Saraswati Vidya Mandir) 02 7. Delhi Public School 01

______________________________________

Total 94 ________________________________________ Financial Assistance being provided during 2011-12. __________________________________________ Sl.No. Name of Schools Amount

1. Project Schools 100.00 lacs 2. Private Committee Managed Schools 90.00 lacs

___________________________________________ Other Facilities : _____________________________________________ Housing 31.03.2012 78436 100% satisfaction Water supply 31.03.2012 19.14 MGD 22.1.4 Pension and CMPF: 1. Total Pension claim file submitted by BCCL and Settled by CMPF Office :

Submitted for Settled for the % Increase over last year

46

the year 2011-12 year 2011-12 5346

5391

As pending files were mostly submitted to CMPFO in special drive & awareness programme’09-10 & 10-11 so only regular files are deposited in year’11-12. So settlement % decrease to the tune of 29.07%.

2. Total Pension claim file submitted by BCCL and Settled by CMPF Office :

Submitted for the

year 2010-11 Settled for the year 2010-11

% Increase over last year

7537

7893

As file quantity deposited less over last year, so quantity of Settlement also been less over last year i.e. 31.71%

3. Increase/decrease % over last year: Submitted Settled (-) 29.07% (-) 31.70% 4. Progress made from April,2011 to March,2012 are as under: (A) Progressive Submission up to March’12 : 85825 (B) Progressive Settlement up to March’12 : 85004 (C) Submission for the year,2011-12 : 5346 (D) Settlement for the year,2011-12 : 5391 5. Reconciliation with CMPFO has been done up-to March’11. Regular VV

Statement deposited up to March’2011

6. Suppl. V.V. have been deposited for left out case during the year 108 nos. of

employees Supplementary of Non CMPF member (NCDCPF/CMALSPF/HSLSPF) also deposited to CMPFO for 21nos. Employees.

7. There are 52 nos. of demand notices had been issued for CMPF & Non CMPF members.

8. Officials of Pension Cell visited all Areas for clearing Pension Cases from time to

time. 9. Special Achievement:

(a) BCCL has deposited Regular V.V. Statement of Financial Year,2010-11 of all 137 unit within Nov’2011 with complete reconciliation.

(b)

22.2 MEDICAL

47

1.MEDICAL MOBILE VAN: Fourteen Medical Mobile Vans (MMVs) have been pressed into services equipped with doctors, paramedical staff serving different 222 villages situated in and around the mining areas on working days. The villagers are examined by the experienced clinicians and medicines are dispensed free of cost to them . This provision has been made by BCCL exclusively under CSR activities for the benefit of villagers by providing them free medical assistance. The total beneficiaries during 2011-12 were 103213. 2.,WELLNESS CLINICS: 14 Wellness Clinics are functioning in BCCL in all the hospitals/Regional Hospitals besides Central Hospital, Dhanbad for 1 to 2 hrs for counseling the patients for modifying their life style. The patients are made known about the nutritional values of different diets, diet schedules for different diseases, how to lead a happy life, importance of morning walk, how to get rid of stress, value of yoga and different types of exercise etc. Such clinics extend awareness amongst the employees for life style management thus lowering the no. of man days lost at their work site. Obviously such clinics are indirectly helping to improve the production and productivity in a positive way. The total no. of beneficiaries in 2011-12 was 34536. Wellness/Health awareness (Nos. as per MOU Parameters) = 254 3.CSR CLINICS: BCCL has embarked upon by opening of free CSR clinics from 01.04.2009 to provide free patient consultation at Central Hospital (PHC Building, Kalyan Bhawan) and subsequently at all 14 Regional Hospitals which is open to all. These clinics run for one./two hours daily in morning hours and free medical advise is given to people around Colliery areas. The total no. of beneficiaries in 2011-12 was 43349. 4.TELE-MEDICINE: BCCL has installed Telemedicine Centre at Central Hospital, Dhanbad which will pave the way for introduction of new system of treatment based on telecommunication. Thus the treating doctors at CHD may have interaction and discussion on a particular disease or patient with the doctors of super-specialty hospitals in order to provide best possible medical assistance to them. Initially the department has been connected with RTIICS, Kolkata and Mission Hospital, Durgapur; few more corporate super specialty hospital of repute will be connected in the months to come.The unit was inaugurated by Chairman CIL on March 28th.,2010 The total number of cases screened under tele-medicine is 12 in 2011-12. 5.ARTIFICIAL LIMB CENTRE : Under CSR activities BCCL has started one clinic at PHC Building Kalyan Bhawan, Jagjivan Nagar. Aim of the clinic is to examine and enlist handicapped persons followed by to organize camps for them in which free prosthesis will be provided. Till March 2012 , 11 such handicapped persons enrolled at this centre.

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6.EK JAGRAN – JEEVAN SHAILI: Life Style Management Programmes are being organized by Welfare Deptt. of BCCL assisted by Medical Deptt. in different areas in which de-addiction from tobacco, alcohol, smoking and other ill habits are deliberated. Such programme is arranged amidst thickly populated colonies so that all the members of the family may participate. Lodna and PB area has already organized such programmes. In the year the said programme has been organized in Kusunda and EJ areas. 7.MISSION MITWA: This programme is being organized in Block-II Area of BCCL mainly for the truck drivers and persons from unorganized sector who are not well known to the evils of AIDS This programme is very very successful for awareness of AIDS/HIV amongst truckers, coal pickers, wagon loaders etc. . Free distribution of condom is also done. . The team of Doctors alongwith union Leaders reach the working sites where the they assemble and listen the deliberation about AIDS. During the year 2011-12 771 persons attended this programme in different 18 camps. 8.PARTICIPATION IN FW CAMPS AT DVC : A team of Gynecologists of BCCL undertook 66 cases of tubectomy in DVC Hospital, Maithon on 15.11.11 and 88 cases in DVC Hospital, Panchet on 4.2.2012 on request of the DVC authorities. 9.CELEBRATION OF COAL INDIA FOUNDATION DAY: On the occasion of CIL Foundation Day,2009, 60 camps were organized during the month of November,2011 in which the no. of beneficiaries were 4714. In the year 2010 during this period (Nov.01 to Nov.30, 2010) 32 camps were organized and the no. of beneficiaries was 1970. 12.EYE CAMPS : During the year 2011-12, 639 patients were operated in 12 Eye Camps with provision of IOL . 13.FAMILY WELFARE CAMPS : During the Yr. 2011-12, 15 camps for Family Welfare were organized and 828 sterilization operations were done in different areas . EJ area undertook Maximum number of cases ie. 194 cases followed by Gobindpur Area (120 operations) followed by Bhuli RH ( no. being 116). Mahuda Group of Washery Division organized Copper-T Camp at Area Dispensary on 23.08.2011 and 05 insertions were done free of cost. 14.HEALTH CAMPS : Several Health Camps were organized during this year. Few special camps like Senior Citizen Medical Check up Camp (Geriatrics Camp), Kishori Swasthya Shivir for adolescent girls and Medical Check up Camp for Expecting Mothers were organized. 254 no. of camps were organized and the number of beneficiaries was 20450. It was a 72.63% jump in comparison with the camps organized last year. 15.CELEBRATION OF WORLD AIDS DAY :

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World AIDS Day was celebrated on December 1st., 2011 in Barora Area. 300 school children marched through the streets of Baghmara raising slogans for awareness of HIV and AIDS. Subhash Auditorium was well arranged to receive the students as well the employees, trade union leaders, members of INMF and dignitaries from BCCL Hqs. Faculties from Jharkhand AIDS Control Society and Central Hospital, Dhanbad delivered their catching lectures on the topic. General Managers of Barora and Block-II areas spoke on the occasion. An impressive Nukkad Natak was performed by Bhuli Natya Kala Niketan. 16.PME : During this year PME was done in all the nine centres with an annual target of 23148 employees out of which 19107 examinations were done ( 83 %). The performance of Sijua area was excellent (105.16%) followed by Block II (102%) and EJ Areas ( 101.85%).

22.3 Industrial Relations The Industrial Relation scenario during the period 2011- 12 remained cordial in BCCL. This happened with the effort that, regular Industrial Relations meetings with Central Trade Unions were held under three tier system i.e. Unit level, Area level and Head Quarter level as per Calendar set for the year 2011 – 2012. This calendar was circulated to all the Central Trade Unions well in advance and meetings were organised accordingly . Apart from structural meetings with the Central Trade Unions , Industrial Relation meetings were also held with other Trade Unions as well as with important craft unions . CCC meetings and Welfare Boards Meeting were also held for taking major policy decision in-consultation with the participating Central Trade Unions . Apart from that, regular Industrial Relation situation is monitored every day in the morning hours. Report of daily IR situation is taken from Area at 7.00 A.M. which is fed to higher Authorities . Thereafter in between 9.30 A.M. to 10. 30 a.M. a further report is taken from the Area and lastly at 11.00 A. M a final situation report of IR fed by Area over telephone, is sent to CIL. This system helps in taking appropriate action in time to maintained normalcy in the working of the mines of the Areas . It may be seen that due to this effective functioning of this system Manday’s Loss due to Strike / Stoppage of work etc has become nil in BCCL which may be seen as under : 2010 – 11 2011 – 12 Mandays Loss 14765 NIL

22.4 Achievement of the Company in the area of Official Language Implementation 2011-12. -------------------------------------------------------------------------------------

a) Compliance of the Section 3(3) of the Official Language Act, 1963 is ensured. b) Percentage of the communication, achieved in reply to the communication of

Hindi under the Official Language rule 1976, was 100% whereas the percentages achieved in the communications with the A,B & C regions were 92%, 85% and 81% respectively.

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c) All the four quarterly meetings of the Official Language Implementation Committee (Corporate level) were held in June’11, August’11, December,11 and March’ 12 respectively.

d) Fifteen Official Language workshops were organized in different areas of BCCL in which 397 employees participated.

e) Hindi books worth Rs. 10, 290/- mostly selected from the list recommended by the Rajbhasha Department, Home Ministry, Government of India, were procured for the Central Hindi library of the Company.

f) 16th & 17th issues of the six monthly House magazine, Koyla Bharati were published and circulated in the month of August’11 & January’ 12 respectively.

g) Rajbhasha fortnight was observed from 14th September’ 11 to 30th September’11. During the Rajbhasha Pakhwara, Noting & Drafting Competition (separately for Hindi & non- Hindi employees), Essay Competition exclusively for women employees, Hindi Quiz and self composed Hindi Poem, Recitation competition at Corporate level, Hindi Gyan Pratiyogita (Hindi Knowledge competition) to generate interest for the Hindi language in the new generation was organized for the school going children of the employees. Besides, twenty employees from each Area as well as Headquarters, were awarded for their work ( in Hindi) performed during the whole year. A large number of employees and their children participated in these competitions. In addition to the attractive prizes for the best three, all remaining participants were also given consolation prizes.

h) On the recommendation of the Official Language inspection Committee shields were awarded to the best three areas as well as three departments of Head Quarter, for their performance pertaining to the implementation of the Official language (Hindi) for the year 2011-12.

i) All the awards, shields and prizes as above mentioned, were distributed during the concluding ceremony of the Official Language fortnight held on 29th Dept., 2011. The occasion was marked by the presence of Sri Sanjeeb the famous Hindi Litterateur and Actg. Editor of Hans Magazine, New Delhi and Dr. Giridhari Ram Gounjhoo “ Giriraj” HOD of , Regional Language, Ranchi University. They were honoured for their outstanding contribution in the field of Rajbhasha.

j) Hindi version of the Annual Report of the company for the year 2010-11 was published.

k) BCCL holds the Chairman’s office of the Town Official Language Implementation Committee, Dhanbad. During the year two meetings were held under the Chairmanship of Director (Personnel), BCCL in the month of June’11 and Dec.’11. The meetings witnessed increased participation from different Central Govt. Organizations situated in Dhanbad District.

l) BCCL received following six awards for outstanding performance in the field of implementation of Rajbhasha. These awards were given by Bhartiya Rajbhasha Sansthan, Dehradoon in all India Rajbhasha conference held from 12th to 14th 2011 at Madurai(Tamil Nadu). (a)Rajbhasha Shree (b) Bishesh Rajbhasha (c) Rajbhasha Kirti (d) Bishhesh Rajbhasha Kirti (e) Rajbhasha Shilpi (f) Rajbhasha Excellence Award.

m) BCCL received “Rajbhasha Excellence” Award for outstanding performance in

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the field of implementation of Rajbhasha from Rajbhasha Sansthan, New Delhi on 29.4.2011 at Solan (H.P.).

n) “ Rajbhasha Gaurav” award has been conferred to BCCL for outstanding performance in the field of implementation of Rajbhasha at Agra on 8th October’ 2011 by All India Rajbhasha Trust, Gaziabad (New Delhi).

o) 14th edition of BCCL’s House Magazine “ Koyla Bharati” has received Excellance award on 29.4.2011 at Kochhi (Kerala) from CENTAD, Bangaluru for its outstanding publication and presentation.

p) 15th edition of BCCL’s House Magazine “ Koyla Bharati” has received Excellence Award on 18th Nov.,’2011 at Dalhoji (Himachal Pradesh) for its outstanding publication / presentation from Dalhausie Sanstan, New Delhi.

Report on WIPS,BCCL ACTIVITIES WIPS BCCL has won 3rd prize for Best Enterprises Award at the 22nd National meet on 11-12 February at IIM Ahmedabad.The award was handed over by the Hon’ble Chief Minister of Gujrat Shri Narendra Modi on 11th Feb 2012.This is the second time that BCCL has been conferred this award.Earlier in the year 2010,BCCL had won the first prize in the best Enterprises Award.This is a significant achievement for BCCL

23 VIGILANCE Brief note on actions taken by Vigilance Department of BCCL on Preventive Vigilance,

Punitive action, Surveillance detection and other important achievements Vigilance Department is an integral part of management which helps the organization by playing an important and vital role in the growth of the organization by promoting ethics and probity which goes a long way in achieving a good public image of the organization. In order to promote the goal of the company, Vigilance Department of BCCL under the broad guidelines of Central Vigilance Commission has adopted a three-pronged strategy to combat/prevent corruption/irregularities which has been detailed below:

1. Preventive: - Under it comes plugging of loopholes by issuing guidelines for system improvement whenever required, educating and counseling the officials of the organization.

2. Punitive: - Under it comes initiation of disciplinary action against the officials/employees of the company who indulges in corrupt practices and found guilty of omission and/ or commission.

3. Surveillance: - Which help in minimizing the scope of corruption.

Brief description of activities undertaken by the Vigilance Department of BCCL within the scope of above areas during the financial year 2011-12 is elaborated below:

1. Preventive Vigilance: a. Surprise/test checks:

During the financial year 2011-12, Vigilance Department conducted 16 surprise checks. The main thrust area of surprise checks/inspections are as under:

i. Coal Stock Measurement ii. Diesel dispensing units

iii. Irregularities in Civil tendering/repairing job iv. Purchase of materials. v. Personnel matters.

vi. Transportation of coal.

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vii. Attendance Check.

Certain irregularities were observed in such checks and 03 regular cases were registered for investigation. While 05 cases are still in investigation stage, in the 03 other case, CMD, BCCL ordered for major PP against one non-executive, Minor PP against 03 officials and warning against 07 officials.

b. Intensive Examination:

CTE type intensive examination of various civil work/procurement of materials is yet another area in which documents are scrutinized to check irregularities. During the financial year 2011-12, five numbers of CTE type intensive examinations were carried out which are under various stages of scrutiny.

c. Observance of Vigilance Week for creating awareness:

As per the directive of CVC, Vigilance Awareness Week - 2011 was observed in BCCL from 31st October, 2011 to 5th November, 2011. The week commenced with pledge on 31st October, 2011 at Koyla Bhawan. The pledge was administered by the CMD, BCCL. On this occasion CMD, BCCL released a Compendium of Circulars / Guidelines of CVC, CIL & BCCL compiled by Vigilance Department, BCCL and a News letter “CHETNA” relating to vigilance activity. During the week Banner and Posters were displayed at Company headquarter as well as at all the areas of BCCL. During the awareness week a one day workshop was organised at HRD, H.Q. Inter School slogan writing and drawing competition on Anti Corruption Topic was organised at Delhi Public School. Dhanbad. An easy writing competition was organised at Koyla Bhawan for Executives & Non-Executives of BCCL and Inter school Debate competition was organised at DAV School, Koyla Nagar. Workshop on Vigilance Awareness:

1) One day Workshop on Vigilance Matters was organized at CCWO,

BCCL, Dhanbad on 25.05.2011. The workshop was inaugurated by Shri Prashant Kumar Sinha, CVO, BCCL on 25.05.2011 at CCWO, Conference Hall, Saraidhella, Dhanbad in which Shri KN Singh, Chief General Manager, Washery Division with other senior officials were present. Faculty from IICM, Ranchi Shri PC Mishra, Chief Manager, IICM was also present at the occasion. During the inauguration, CVO, BCCL expressed his views and threw light on the importance of such programme in updating and enlightening the executives. Shri KN Singh, Chief General Manager, Washery Division expressed that such type of workshop would go a long way for the officials of Washeries in BCCL in updating their knowledge and making them aware about the common irregularities in procurements and how to prevent them in their working. Faculty from IICM, Shri PC Mishra took the first Session on the topic “Common Irregularities in procurement and relevant CVC guidelines”. He elaborated in details about the action that should be taken at the time of opening of tender. He discussed about different aspects of tender like technical specification, negotiations with the L-1 bidders, website publication, limited tender, proceedings of tender as well as integrity pact. He enlightened the participants with the new concept and process in procurement and tendering.

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Shri P.K. Sinha, Chief Vigilance Officer, BCCL threw light on the topic “Complaint handling/Preventive Vigilance”. He spoke on types and sources of complaint & how they are handled as per CVC’s procedures/guidelines. He explained the provisions of Vigilance Manual of CVC regarding “Vigilance Angle”. He also elaborated how Anonymous & Pseudonymous complaints and those of administrative nature are handled. He advised all senior officials present in the Workshop to work with greater transparency and integrity.

2) On 03.11.2011, a one day workshop was organized at HRD, Kalyan Bhawan. The workshop was inaugurated by CMD, BCCL in presence of Sri Ashok Sarkar, D(T)PP, Sri Amitabh Saha, D(F) and Sri PK Sinha, CVO, BCCL. There were three sessions, the first session was taken by Sri J. Nayak, OSD to Director, CBI, New Delhi on the topic “Role of CBI and Vigilance in PSU-some case studies”.The second session was taken by Sri P. Pathak, Professor, Deptt. of Management Studies, ISM, Dhanbad on the topic “Fighting Corruption- the values imperative”. In the last session, Sri PP Sengupta, Ex-CGM(MM), CIL, Kolkata elaborated on the topic“Common irregularities in Tender” and “E-procurement” with minute details. In the closing ceremony,Sri TK Lahiry, CMD, BCCL expressed that this type of workshop would help in more preventive vigilance and instructed the participants (Area CGMs, GMs and HODs) to disseminate the knowledge gathered in the seminars/ workshops to junior officers in the Area.

3) Vigilance Department organized a one day workshop on vigilance awareness for second batch of Management Trainees of BCCL on 2.3.2012 at HRD Kalyan Bhawan. The workshop was inaugurated by Sri TK Lahiry, CMD, BCCL. Sri PK Sinha, CVO, BCCL, Sri PK Manjhi, SP, CBI, Sri DK Chandrakar, GM(Vig.,) were present on the occasion. Sri TK Lahiry, CMD during his inaugural address stated that this type of programme for management trainees will certainly help them a lot in their professional career. Vigilance awareness is very important for strong foundation of professional career. Management Trainees are the future of the Company and if they work honestly & shall be vigilant and transparent in their work the company shall be definitely benefitted.

Sri PK Sinha, CVO, BCCL in his address stated that this programme has been especially designed for management trainee who have joined BCCL recently. They should know about the workings of anti corruption agencies as well as CDA rules governing them and other circulars and guidelines of the Company which will guard them in their working against deviation. In the second session Sri PK Manjhi, SP, CBI spoke about the role and function of CBI, different relevant section of IPC and PC Act. He stated that the public servant should work with transparency. More and more transparency shall minimize scope of corruption. He interacted with Management Trainees and answered their queries, doubts etc. regarding working of CBI, the role of public servant etc. In the third session Sri SK Roy Sr. Manager(M)- CMD Sectt. gave details of status of computerization and use of technology in various department of BCCL. He stated that vigilance is not stand alone function. Leveraging

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of technology shall definitely contribute in containing corruption and bringing transparency in work. In the fourth session Dr. Pramod Pathak, Professor, ISM deliberated on ethics and values-The crucial factor. Ethics/ values/ moral has very important role in professional life of the people as well as personal life. Ethics and values plays a very important role in the professional life of the executives and it is essential for the development and growth of the company also. He gave examples from historical/ mythological stories and events highlighting the role of ethics / values in the professional life. At the end of the session CVO, BCCL interacted with management trainees and replied to their queries, doubts, suspicion etc. regarding function of Vigilance Department, its guidelines and circulars, CDA Rules etc. More than 50 MTs participated in the programme.

4) Vigilance Department organized a one day workshop on vigilance

awareness for newly promoted Sub-ordinate Engineers of Civil Discipline, BCCL on 13.3.2012 at HRD, Kalyan Bhawan. Workshop was inaugurated by Sri PE Kachhap, D (P). Sri Ashoke Sarkar, D(T) PP and Sri PK Sinha, CVO. Sri DK Chandrakar, GM (Vig.), Sri AK Mitra, GM (Civil), Sri S. Dasgupta, GM (HRD) were present on the occasion. During the inaugural session D(P), BCCL gave thanks to CVO, BCCL for organizing such programme for newly promoted Sub-Ordinate Engineers and said that under the leadership of Sri PK Sinha, CVO more and more emphasis is being given to preventive vigilance. This type of workshop shall definitely very fruitful for the participant as well as for the Company. Sub-ordinate Engineers have been promoted from non-executive to executive and there has been change in their service condition, responsibilities and other matters. They were being governed by Certified Standing Orders when they were working as Staff and now CDA Rules will be applicable on them. As per CDA Rules they will have to file property return every year and other information are to be given to the concerned department. There are various Do’s and don’ts for executives as per CDA Rules which are new to them. He advised Sub-ordinate Engineers to work with honesty and dedication for their professional growth and for the growth of the Company.

CVO, BCCL in his address stated that Sub-ordinate Engineers must know the civil engineering manual and CDA Rules. It has been seen during the scrutiny of files of civil work that many civil engineers are not aware about the provisions of manual and other circulars, guidelines of the company issued time to time. After promotion in executive they shall be governed by CDA Rules and as such they should know various provisions of CDA Rules. He informed that the term “similarly work” for various civil work has been defined and circulated recently and that should not be changed at Area and unit level. D(T)P&P in his address stated that the company is incurringexpenditure in crores every year on civil works. Civil Engineers are responsible for the quality and satisfactory completion of work. They should discharge their duties with dedication and responsibilities by following the rules, regulations and guidelines of the Company. He stated that more emphasis should be given on the quality part of civil works. In first session Sri S. Dalela, Chief Engineer deliberated on tendering procedure and civil engineering manual. He throw light on the common

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irregularities in tendering and execution of civil works and points of attention for civil engineers. He also dealt with various provisions of civil engineering manual. In the second session Sri U. Chatterjee, Ex-Dy. GM(Vig.) deliberated on CDA rules, its provisions, the nature of misconduct, disciplinary proceedings etc. In the third session Sri PC Mishra, Chief Manager, IICM, Ranchi deliberated on tendering procedure and CVC guidelines. In the fourth session Dr. Pramod Pathak Professor, ISM deliberated on ethics and values-The crucial factor. Ethics/ values/ moral has very important role in professional life of the people as well as personal life. Ethics and values plays a very important role in the professional life of the executives and it is essential for the development and growth of the company also. He gave examples from historical/ mythological stories and events highlighting the role of ethics / values in the professional life. Before conclusion of the workshop CVO interacted with participants and answered the queries, question, doubt and suspicion raised by them and highlighted the irregularities observed by vigilance department during investigation of various civil works. More than 60 Sub-ordinate Engineers participated in the workshop.

5) Vigilance Department organized a one day workshop on vigilance awareness for newly promoted Sub-ordinate Engineers of E&M Discipline, BCCL at HRD, Kalyan Bhawan on 14.3.2012. The workshop was inaugurated by Sri DC Jha, D(T)Op., Sri Amitabh Saha, D(F), Sri PK Sinha, CVO and Sri PK Manjhi, SP, CBI. Sri DK Chandrakar, GM (Vig.) & Sri S. Dasgupta, GM (HRD) were present on the occasion. Sri DC Jha in his address stated that this programme shall be beneficial for the participants in discharging their duties. He requested all the participants to interact with different faculties of the programme to remove every doubts and queries, if any.

Sri Amitabh Saha, D(F) highlighted the importance of this type of programme and expressed that this programme shall be very useful for the participants in their day-to-day work Sri PK Sinha, CVO in his address stated that it is very essential for the newly promoted officers to know the rules & regulations of the Company, their responsibilities and the Conduct Discipline & Appeal Rules applicable on them. This type of programme are being organized as a major of preventive vigilance/participative vigilance as per directive of CVO. In the first session SP, CBI dealt with role and function of CBI, various provisions of PC Act and IPC. He expressed that transparency in work is the most important way to contain corruption. The more will be transparency the better will be the quality of the decision and lesser possibility of corruption. In the second session Sri SK Sen, Sr. Manager (P)-EE discussed with the participants about CDA Rules, its provisions, the Do’s and don’t’s as per CDA rules etc. In the third session Sri KKS Sinha, CGM (E&M) dealt on the subject transparency in E&M, works and contracts. He elaborated on common irregularities in E&M works and main points where special attention are to be given while executing the work. In the last session Dr. Pramod Pathak, Professor, ISM deliberated on ethics and values-The crucial factor. Ethics/ values/ moral has very important role in professional life of the people as well as personal life. Ethics and values plays a very important role in the professional life of the executives and it is essential

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for the development and growth of the company also. He gave examples from historical/ mythological stories and events highlighting the role of ethics / values in the professional life. Before conclusion of the workshop CVO interacted with participants and answered the queries, question, doubt and suspicion raised by them and highlighted the irregularities observed by vigilance department during investigation of various E&M works. More than 60 Sub-ordinate Engineers of E&M Discipline participated in the workshop.

d. System Improvement:-

For plugging the loopholes in the system, seven numbers of circulars/guidelines were issued at the instance of Vigilance Department which were noticed by the Vigilance Department during verification/investigation of various complaints. These guidelines are mainly related to tendering process and issuance of materials. The following circulars / guidelines pertaining to different field / area of work were issued on the recommendation of the Vigilance Department for bringing overall improvement in the procedures, systems and to ensure transparency.

1) During verification of a complaint, it was found that a contractor has

obtained work in his favour on the basis of false /forged experience certificate. There was no system of verification of credentials submitted by the contractor.

The matter was taken up with the competent authority and a guideline to bring system improvement in this matter has been issued.

The salient features of guidelines that the management should devise a

mechanism to ensure verification for the genuineness of the certificates submitted by L-1tenderer by sending our own person to the office concerned or through post, email etc. Reminders should be sent to the office concerned if there is delay in getting response. Action to blacklist the tenderer and launching criminal proceedings against the bidder should be undertaken apart from cancelling the tender whenever fake certificates are found submitted.

2) For increasing transparency in tender process of Civil works being

undertaken by different Areas of BCCL . Wide publicity of tender notices is essential for circulation among intending bidders. In order to achieve wide publicity in all such cases all tender notices can be put up on the website of BCCL. This will benefit the BCCL by bringing transparency and reducing opportunities for any malpractices. This will also help the organization in bringing more participation and thus competition. In view of the reasons cited above and to maintain transparency and fairness, it is decided that following improved amended guidelines in tender process of Civil works being undertaken by different Areas of BCCL shall be followed with effect from 01.2.2011 onwards: i) All the tender notices irrespective of estimated cost of the Civil

Works shall be displayed on company’s Website. Thus uploading/e-publicity of each work irrespective of value shall be ensured.

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ii) Dropping /receipt of all the tenders simultaneously will be at designated place of two adjoining Areas also; in addition to existing system of dropping of tenders at BCCL HQ i.e. at C.I.S.F. Post near Koyla Bhawan gate, Koyla Nagar, BCCL, Dhanbad as well as in the designated place at concerned Area.

3) During the course of investigation by Vigilance Department, it was found

that in some transfer cases LPCs have not been issued even though the officers concerned had been transferred from their place of posting for quite some time. This ‘error in system’ resulted in undue payment on a few heads, which had to be later on recovered from the employee. To eliminate this error in the system, Vigilance Department proposed that a guideline be issued from the Management so that the flaw in the system could be corrected. Based on the recommendation of Vigilance department, a circular was issued by Director (Personnel) whereby it was directed that the LPC of the transferred executive are to be issued by the end of the month in which the officer is released.

4) Based on the recommendation of Vigilance Department, a Circular was

issued by General Manager(Civil) for provision of Check list in Civil tenders to be submitted by the bidders. This was introduced to bring uniformity in the bids submitted by the tenderers. The check list includes details of obtaining the bid document, submission of tender fee and earnest money, documents submitted in support of eligibility criteria, declaration statement and the other requisites of the NIT. With the introduction of the check list, rejection of bids on minor issues is likely to be eliminated.

Similarly, based on the observation of Vigilance Department, Chief Manager (Finance) / TS to D(F) issued an office Memorandum for betterment of fund management. The salient points of the memo are :-

i) Every expenditure should reflect effects in terms of its physical

outcome. ii) Record note for conclusion upon final settlement of any

expenditure should deliberate on its effectiveness in terms of both cost and benefits w.r.t. target envisaged.

iii) No financial commitment in excess of budget provision in the form of liability for the Company should be made without obtaining additional budget.

iv) The forwarding notes pertaining to approved annual revenue budget may be religiously pursued.

Approved delegation of power should be strictly adhered to.


issued by Dir.(Tech.)P&P, BCCL for better accountability and for speedy disposal of proposals. File documents / paper in any office of BCCL should move through official dak and proper docketing system is to be followed at all level of its handling. Under no circumstances, file / documents should be handed over by any employee of BCCL to any private person for carrying it to other employee or office. This will minimise chances of forgery. Any file / documents if carried by hand by any employee should be specifically noted in the file, as “carried by hand”.


issued by Chief of Medical Service, BCCL for improvement in working

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of store of Indore ward / department of Central Hospital, Dhanbad the following guidelines have to be complied with strictly :-

1) Indent of linen towel etc. is to be raised on need basis and to be

issued for use in instalment, record of receipt, issue and stock in hand to be maintained in respective wards.

2) Indent of medicines, surgical dressing and other consumables are to be raised on weekly basis and indent should bear date and quantity of last indent as well as stock in hand.

3) Stock ledger and indent format as recommended by committee are under printing process and will be issued as soon as available. New indent format and stock ledger to be used by all for raising indents and maintaining stock ledgers.

4) Disposal of all used items should be as below:-

a) Linen towel etc Sister In-charge will put up the disposal quantity to the condemnation committee of CHD. The committee will assess the physical condition and period of use and after due deliberation recommend for disposal.

b) Surgical dressing items and other consumables – these items become waste and can be disposed off on daily basis.

c) Medicines will be disposed off only after expiry by condemnation committee. Regular monitoring of stock and transfer of surplus stock to the other wards to avoid expiry of medicines to be done by ward in charge.

7) A circular was issued by General Manager (Civil) , BCCL defining the

similar nature of works in tender notices. One of the pre-qualification criteria for determining the eligibility of the tenders / bidders is based on execution of works of similar nature. It was therefore necessary that the definition of similar nature of work is explicit / clear in each tender notice. An exhaustive list of different works and its similar nature was circulated to all concerned officials. With this, uniformity can be achieved in all the tender floated by different Areas / Projects / Washeries of BCCL.

2. Punitive Vigilance: -

During the financial year 2011-12, Vigilance Department registered total 31 regular cases. 07 cases were closed after due action against the 13 responsible officials. In 10 cases, investigation has been completed and action has been initiated against the 29 responsible officials. 14 cases are still under investigation.

Apart from the above, during the year 2011-12, CBI altogether registered 13 cases against the officials of BCCL out of which 02 cases were related to demand and acceptance of illegal gratification and sanctions for their prosecutions in the Court of Law have been issued by the concerned D.A.

3. Surveillance detection:

During the year 2011, Agreed list for BCCL was prepared in consultation with SP, CBI, Dhanbad. The list of officials of doubtful integrity was also prepared for the said period.

4. Vigilance clearance/status:

Vigilance Department of BCCL issued Vigilance Status report in respect of 3295 numbers of officials during the year 2011-12.

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24. THE PRESENT STATUS OF BIFR:

BCCL was referred to BIFR as a sick company consequent upon its net worth becoming negative and was registered vide Reg. No. 504/95 dated 18.12.95. With a capital restructuring by conversion of CIL loan for Rs.996 Cr. into Equity, the net worth of the company was made positive and the Company came out of BIFR in December 1997. However, after completion of accounts for the year 1999-2000, the Net Worth of the company again became negative. The company was referred to BIFR and was registered as a sick company vide no. Registration no 502/2001. As directed, BCCL submitted its Revival Plan to BIFR as on 12.04.2004 for its consideration. Subsequently, after formation of BRPSE, BCCL submitted its Revival Plan to BRPSE in April’05 suitably modifying the Rehabilitation Plan submitted earlier to BIFR on 12.04.2004. BRPSE recommended the Rehabilitation Plan of BCCL to BIFR for concurrence as confirmed vide OM no. 38039/1/2008-CA-II(Pt-I) dt. 3/10/2008 of Director MOC. In its hearing held on 18.05.2009, BIFR directed BCCL to submit updated Revival Scheme/ Proposal for revival of BCCL. Accordingly a Draft Rehabilitation Scheme (DRS) was submitted to BIFR vide ref. no. CMD: ES:F:BIFR:09:771 dated 11.08.2009. The said Draft Rehabilitation Scheme has since been approved by BIFR as communicated by Bench Officer- II, BIFR on 28.10.2009 and the same has also been vetted by MOC, Govt. of India as communicated by Under Secretary to Govt. of India, MOC vide reference no. 13011/4/2004-CA-II(Vol.II) dt. 25.02.2010. A review hearing was held on 28.09.2010 on the progress of implementation of the Revival Plan. In the said hearing, the company was directed by BIFR to continue to submit the compliance report(s) from time to time. The Company has been regular in submission of said progress Report to BIFR with information to MOC. Against the projected Net Worth of (-)Rs.5732 Cr., the net worth as on 31.03.2011 stood at (-)Rs.4309Cr.

25.Audit Committee:

Audit Committee of the Board of Directors of BCCL has been formed in the year 2002 in line with the section 292 A of the Companies Act, 1956. Shri Paul Joseph, Non Official part time Director is the Chairman of Audit Committee. The Audit Committee consists of the following members: i) Sri Paul Joseph, Chairman of Audit Committee ii) Shri P. Soma Shekar Reddy, Director Ministry of Coal, Govt. of India. iii) Shri D.C.Jha Director(Technical), BCCL. iv) Shri B. Ramesh Kumar, Independent Director

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v) Dr. B.B. Biswal, Independent Director vi) Shri S.B. Ghosh Dastidar, Independent Director

The terms of reference of Audit Committee include all commercial aspects of the

organization including inter-alia.

i) Review of financial statement before submission to the Board. ii) Periodical review of internal control system . iii) Review of Govt. Audit and Statutory Auditors’ Report. iv) Review of operational performance vis-à-vis standard parameters

including that of subsidiaries. v) Review of Projects and other capital schemes including that of

Subsidiaries. vi) Review of internal audit findings/observations including that of

Subsidiaries. vii) Development of a commensurate and effective internal audit function. viii) Special studies /investigation of any matter including issues referred by

Board. The Audit Committee held 6 meetings during the year 2011-12.

26. CONSTRUCTION OF NEW WASHERIES & MODERNISATION / MODIFICATION

A) Setting up of new Washeries on Build – Operate- Maintain Concept:

A decision was taken in the meeting held on 11.01.2007 chaired by Hon’ble MoC (Coal) at Kolkata to wash all non-coking coal other than Pit Head Consumers before dispatch. Subsequently, in the meeting held on 27.03.2007 by PMO regarding beneficiation of coal, CIL was advised to draw a road map for next 5 years to supply 100% washed coal to all Power Projects excluding Pit Head Power Plants by end of XI Plan period. Accordingly, it was proposed to set up 6 (six) new washeries on 'BOM' concept for washing 18.6 million tonnes per annum of NLW/Non-Coking Coal to be produced from Opencast and Hired HEMM mines by the year 2011-12 covering all areas of BCCL.

The proposed locations of the new washeries & its capacity in terms of raw coal input are furnished below:

1. Madhuband NLW 5.0 Mty. 2. Patherdih NLW 5.0 Mty. 3. Dugda NLW 2.5 Mty. 4. Dahibari NLW 1.6 Mty. 5. Patherdih NLW 2.5 Mty. 6. Bhojudih NC 1.6 Mty.

18.6 Mty. Selection of sites for the proposed washeries in various Areas of BCCL has

been completed. The detailed testing of all linked coals and preparation of Conceptual

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Reports of new washeries was entrusted to CMPDIL. Washability and other required tests for 16 nos. of major coal samples has been completed. The sample from seam I,II and III of N/S Tisra which has been linked to Bhojudih NC washery, has recently been collected by CMPDI for required testing. Conceptual Reports for all the washeries excepting Bhojudih has been received and approved. Conceptual Report of Bhojudih washery is awaited from CMPDIL. Reports of preparatory works like Contour map, Soil Investigation have already been completed for all the proposed sites. The status of all washeries under 'BOM' concept are as appended below:

(i) 5.0 Mtpa NLW Washery at Madhuband:

• On approval of CIL Board on 31.05.2010 after BCCL Board's approval on 14.05.2010 Letter of Award/Letter of Acceptance (LoA) for setting up of the washery has been issued to M/s HEC Ltd. on 23.06.2010 for setting up of Madhuband NLW washery at the capital investment of Rs.262.9927 crores.

• Contract Document is under process of finalization. The Agreement Document is likely to be signed between M/s HEC and BCCL in April 2012.

• Application has been submitted to DVC for providing 7.0 MVA power for the washery.

• EMP Report has been approved by MoEF in its EAC meeting held on 28.11.2011 and it has been intimated to BCCL vide their letter no. J-11015/234/2009-1A.II(M) dated 25.01.2012.

• For the BCCL part of associated pre and post activities, BCCL Board has also approved a sum of Rs.19.9719 crores in its 271st meeting held on 22.07.2010

• Tender Document for Rapid Loading Dispatch Arrangement of washed products is being prepared by RI-II, CMPDI, Dhanbad and tender shall be invited shortly besides uploading the same on BCCL website.

(ii) 5.0 Mtpa NLW Washery at Patherdih:

• M/s Monnet Ispat & Energy Limited has been identified as the preferred Bidder.

• Upon approval of BCCL Board on its 274th Meeting on 11.12.2010, CIL Board approved the project on 01.02.2011for a total set up cost of Rs.169.6416 crores which includes the cost of raw coal receipt and washed coal dispatch arrangement also.

• EMP Report has been approved by MoEF in its EAC meeting held on 28.11.2011 and it has been intimated to BCCL vide their letter no. J-11015/240/2010-1A.II(M) dated 25.01.2012.

• LoA has been issued to M/s MIEL on 21.02.2012.

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• Contract Document is under process of finalization. The Agreement Document is likely to will be signed between M/s MIEL and BCCL in April 2012.

• Tender Documents for the work of receipt of raw coal, dispatch arrangement of washed products and for strengthening/modification of railway track are being prepared by RI-II, CMPDI Dhanbad. The same are awaited from RI-II, CMPDI Dhanbad,

• Application has been submitted to DVC for providing 5.0 MVA power for the washery.

• Authenticated site plan has been handed over to M/s MIEL. Site clearance work like removal of slurry, hutments, power line over the site has been taken up for their needful action.

(iii) 2.5 Mtpa NLW Washery at Dugda:

• Bid Notice was floated on 02.06.2009.

• RFQ part has been finalized on 11.01.2011 in which 4 (four) Bidders had qualified for opening of the RFP parts.

• ToR has already been approved by MoEF in its meeting held on 30.08.2010.

• Price Bid was opened on19.12.2011 and the bids have been evaluated. TC has identified M/s GCWL as the L1 Bidder in its meeting held on 27.01.2012.

• Competent Authority has approved the TCR on 29.02. 2012.

• BCCL Board in its 284th meeting held on 03.03.2012 has approved the project at the total capital investment of Rs. 94.8352 crores [Rs.45.1636 Crores (firm cost) for BOM part + Rs.49.6716 Crores (estimated cost) for Infra-structural Development by BCCL.] and has recommended to CIL Board for financial concurrence.

• Conceptual Report for receipt of raw coal and dispatch of washed products arrangement is under preparation by RI-II, CMPDI, Dhanbad. However, cost estimate required for calculating the project viability, has been submitted.

• Application for obtaining NOC from JSPCB, Dhurwa, Ranchi is under process of submission.

(iv) 1.6 Mtpa NC Washery at Dahibari:

• Bid Notice was floated on 30.12.2009.

• 7 (seven) valid offers were opened on 31.05.2010.

• ToR has been approved by MoEF on 28.05.2010 under cluster XVI. Public Hearing has also been conducted on 21.01.2012.

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• Conceptual Report for receipt of raw coal and dispatch of products arrangements is under preparation by RI-II, CMPDI, Dhanbad.

• RFP parts of the 6 (six) qualified Bidders has been opened on 03.08.2011. Evaluation report has been submitted by CMPDI, Ranchi.

• Bidders have been requested to submit their shortcomings/ clarifications/ confirmations upto 04/05.04.2012 for finalization of the offers. All the Bidders except M/s ACB have requested to extend the submission time for 15 to 20 days.

(v) 2.5 MTY NLW Washery at Patherdih:

• Final Conceptual Report received from CMPDI Ranchi has been approved by Competent Authority.

• Patherdih 2.5 Mtpa NLW washery will be installed at the site of existing Patherdih washery which needs to be dismantled before the execution of construction. The matter was put before Competent Authorities for its approval.

• As desired, a proposal has been made to survey off the existing washery. The proposal has been referred to a committee constituted to study the same. Committee's report is awaited.

• The washery is under Common Centralized Request for Qualification in which bids shall be invited from the selected /listed bidders for the RFP part directly.

(vi) 2.0 MTY NC Washery at Bhojudih:

• Seam I, II and III of N/S Tisra has been identified as the potential source of non-coking coal to link with Bhojudih 2.0 Mtpa NC washery. As such, CMPDI, Ranchi was requested to collect sample for washability and other required tests for preparation of Conceptual Report.

• Sampling team of CMPDI visited the mine and collected sample from the above seams on 20.03.2012.

• Conceptual Report is being prepared at CMPDI, Ranchi.

• The washery is under Common Centralized Request for Qualification in which bids shall be invited from the selected /listed bidders for the RFP part directly.

B) Washeries under II Phase

• Based on the production programme of raw coal during 2021-22, two coking coal washeries of 2.5 Mtpa capacities each at Moonidih and Kapuria are to be installed for which sites are being finalized.

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• Two NLW washeries of 5.5 and 5.8 Mtpa capacities are also being formulated. Locations and linkages of these NLW washeries are under study & finalization.

• Meanwhile, a committee has been constituted for finalization of the two sites for Moonidih & Kapuria washeries. The committee has inspected the two probable sites. Report of the committee is awaited.

C) Renovation / Modification Schemes of existing washeries

i) Dry Deshaling plant at Madhuband: Tender has been opened in CMPDI, Ranchi and evaluation is in progress.

ii) Automation and instrumentation for process control for Dugda and Bhojudih: In

technical evaluation single party has qualified. A note for competent approval has been moved for opening of Price Part of the single party.

iii) Approval of scheme for improvement of fines recovery in washeries: Apex Committee

of CIL R&D Board has suggested to explore the possibilities of implementing the fine coal beneficiation and dewatering system on turn-key basis in association with CIMFR/IIMT Bhubaneswar.

Parameters as per MOU Finalisation and issue of LOI for New Washeries:

I) Finalisation and issue of LOI for Dahibari (NLW) Washery (1.6 MTY) : Final evaluation and preparation of comparative statement of RFP part is in progress at CMPDI, Ranchi.

II) Finalisation and issue of LOI for Patherdih (NLW) Washery (2.5 MTY): Final Conceptual Report received from CMPDI Ranchi has been approved by Competent Authority. The proposed Washery will be installed at the site of existing Patherdih Washery which needs to be dismantled before construction of new washery. Survey off proposal for the existing Patherdih Washery to be put up in BCCL Board.

27. ENVIRONMENT & ECOLOGY

BCCL has made sustained and large scale efforts to improve the environment. The following activities were taken up by BCCL during 2011-12.

(A). Ecological restoration :

• The work of ecological restoration which consists of three tier plantation of native species for establishing natural forest on mined out areas of degraded land has been taken up for the first time in Coal India on 8 ha. of OB dump located at Tetulmari, Sijua Area of BCCL. The work is being done through Forest Research Institute, Dehradun at a cost of Rs.20 lakhs on R&D basis. The work has been

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started in the month of Sept., 2011&will continue for three years. The scientists of FRI are regularly visiting the sites.

• On the advise of the Hon’ble Jharkhand High Court, a Road Map for ecological restoration of mined out areas of BCCL was prepared through FRI, Dehradun at a cost of Rs. 19.50 lakh. This Road Map serves as a guideline for restoration of the mined out area of the whole coalfield using forest techniques and involving local villagers and Project Affected People.

• 35 BCCL personnel have been trained at FRI, Dehradun in ecological restoration techniques. Teams are being developed at each area for taking up ecological restoration work in the coming year.

• BCCL had organized awareness programme in ecological restoration for 4 days at HRD to about 125 un-employed youths of Dhanbad District through scientists from FRI, Dehradun.

• Another Ecological Restoration on two OB Dumps of Damoda Colliery(At Old Ghutway Section,2 Ha land and near No.4 incline about 4 ha),Barora Area of BCCL have been taken up by the able guidance of Prof. C.R. Babu, Vice Chiarman, EAC, MoEF, New Delhi.

(B). For biological reclamation an amount of Rs. 62.47 lakh has been given as advance

to District forest Deptt., Govt. of Jharkhand for plantation on 137.40 ha land out of identified 175 .4 Ha.

Departmental plantation was also taken up in different areas/ units with distribution of 6500 nos. saplings from our nursery, for planting in and around the schools, dispensaries, office premises and other suitable places.

(C ) BCCL is having its own Environmental Laboratory. Regular monitoring of air,

water etc. is being done for keeping a check on the pollution level. Mitigative measures, as and when necessary, are being taken.

(D) Environmental Clearance of mines of BCCL

• Following the approval of Cluster Concept by MoEF, New Delhi, BCCL had obtained Terms of Reference (TOR) for 16 Clusters, out of 17 Clusters.

• The Environmental Clearance of the proposed Madhuband and Patherdih NLW Coal Washeries of 5 MTPA capacity each has been approved by MoEF, New Delhi.

• The Environmental Clearance of Cluster-I Group of mines has been recommended by the Expert Appraisal Committee in Feb., 2012.

• Public hearing for 10 Clusters has been successfully conducted by JSPCB. • EIA/ EMPs of further 4 Clusters have been submitted to MoEF for Environmental

Clearance. (E) MOU PARAMETERS ACHIEVED :

• Prepared and submitted EIA / EMP (cluster/group of mines) of Five Clusters of Mines for Environmental Clearance.

• 3.43 Lakhs tree Plantation done in the year to restore Degraded land/OB dumps

• Effluent Treatment Plants & Oil Grease Trap made operative at Lodna Workshop and a new one installed at Sinidih Workshop.

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• Two mines, Muraidih and Block-II are recommended for the Accreditation of ISO 14001 Certificate by assessors of QMS Certification services, Australia.

• Conducted a Workshop for awareness on Sustainable Development

• Work-order awarded for 4080 no. Of houses for Rehabilitation township development for BCCL employees living in endangered area as per Master Plan in Dec’ 2011. ( work order issued on 23.12.2011)

• Action plan for rehabilitation of BCCL employees living in endangered area -- Prepared and approved in Nov.’2011

. (F) Approval of the Master Plan for Dealing with fire, subsidence and rehabilitation in the lease hold of BCCL The Master Plan for Dealing with fire, subsidence and rehabilitation in the lease hold of BCCL has been approved on 12th Aug., 2009 by Govt. of India. The initial two years consists pre-implementation activities i.e. socio-economic survey, land acquisition, thermal survey, town planning etc. which are going on as per the provision of Master Plan. • The implementation of Master Plan is being monitored by High Power Central Committee at

regular intervals. In this regard, last Meeting was held on 23.12.2011 under the Chairmanship of Secretary (Coal), Ministry of Coal.

(i) Fire, Subsidence Control and Rehabilitation Schemes

As a protective measure to prevent /control fire and subsidence, 6 Fire Schemes with a sanctioned cost of Rs.97.50 crores have been formulated through CMPDI as per the approved Master Plan which are at different stages of implementation. Out of this, 2 fire schemes have been completed.

In addition BCCL has also taken advance action for dealing with active fires through hiring HEMM in different patches.

(ii) Demonstration Project at Belgoria A Demonstration Scheme for “Shifting of people from most endangered areas of BCCL” is going on for an amount of Rs.61.09 Crores for rehabilitation of people from endangered areas of Jharia Coalfield. The details are as below :-

BCCL Non-BCCL (being done by JRDA)

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Target 1500 houses 3100 houses Constructed • 344 houses at Bhuli, Bhimkanali,

Nichitpur and Katras Coal Dump in triple stories blocks

• Till date 204 employees have already shifted to these quarters.

• Work Order has been issued in

favour of M/s Kamla Construction on 22.10.10 for construction of 1152 Triple Stories quarters (96 Block each of 12 units) at Kusunda, Katras,Sijua and Lodna Area of BCCL.

• Work in all blocks are in full swing and are at various stage of construction.

• 2352 houses are completed in Jharia Vihar, Belgoria. 1058 families have already shifted in these quarters.

• Construction of 748 houses

could not be started due to land problem with local people .

Sanctioned amount (Rs.Cr.)

35.89 25.19

Expenditure incurred (Rs.Cr.)

31.27 25.19

Electric power supply and water distribution to the houses is already made by JRDA. (a) 1058 families (encroachers) of Bokapahari, Kukurtopa sites (Kustore Area), LUJ Pit Area (Lodna Area), PB Area and Ghanoodih Colliery/ fire sites (Bastacolla Area) have already shifted to Jharia Vihar, Belgoria Township.

(b) 1024 nos.of affected families (encroachers) have already been handed over cheque amounting Rs.10,000/- (each) as shifting allowance.

(c ) 963 nos. of affected families (encroachers) have already been given payment of minimum wages of 125 days (i.e. applicable for six months period only) and 822 nos of affected families have also been paid 2nd installment of minimum wages of 250 days

(iii)Rehabilitation under Master Plan

BCCL

NON BCCL(Being done by JRDA) Private

(Authorized)

Private (Unauthorized) Others

TARGET 23500 Houses 29444 Houses

20747 Houses 868 units

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STATUS • BCCL Board has approved construction of 4080 triple storied quarters (340 Blocks each of 12 units). These quarters have also been planned to be constructed in non-coal bearing area at Kusum Vihar & Jagjivan Nagar in addition to Karmatand, Karmiknagar and, Alakdih for the value of Rs.165.56 Crores. Work has already been started by the agency at Kusum Vihar and Jagjiwan Nagar.

• Construction of remaining houses are scheduled to be taken up in next financial year

• E-tender for 2000 units double room Visthapit Awas has been floated by JRDA on 09.02.12 and opened on 16.01.12,Price bid opened on 21.02.12.

• All other works like socio-economic survey, land acquisition, payment of shifting allowance and payment of minimum wages to affected families are already going on and detailed separately.

• DPR for construction of of road from Joraphatak to Dokhra crossing adjacent to Belgaria is proposed by RITES and forwarded to RCD,GOJ for Technical Sanction by JRDA .

• Construction of market complex, Bank, Post Office at Belgaria is under progress

SANCTIONED AMOUNT (Rs CRORES)

1068.45 2780.81 818.38 112.95

EXPENDITURE INCURRED (RS CRORES)

3.50 86.69 -

(iv)Demographic/Socio-Economic Survey

CIMFR and ISM, Dhanbad have been entrusted with the job of demographic / socio-economic survey of fire affected/ subsidence prone areas for identification of families living in these areas. Survey of 313 sites (129 sites by CIMFR and 184 sites by ISM) have been completed till 31.03.2012, in which 32722 (20616 by CIMFR and 12106 by ISM) families have been identified and photo identity cards are complete for 21401 families. Distributions of photo identity cards are in progress.

(v) Road diversion

As per the survey report of RITES Ltd. following routes has been approved by Govt. of

Jharkhand as an alternate measure to NH-32 on 29.6.10 and also accepted by Ministry of

Road transport & Highway, Govt. of India.

(a) Short Term Measure : Strengthening and widening of road from Mahuda More –Nawagarh-Dumra-Gomoh to Topchanchi. The DPR prepared by RITES Ltd has been approved by Road construction Department, Govt. of Jharkhand. The estimated cost is Rs 19.85 crores for construction of said road.Govt. of Jharkhand has sought fund from BCCL,Dhanbad.BCCL has provided fund of Rs 19.85 crores to JRDA which has already been sent to Executive Engineer, Road Construction Deptt on 14.03.2012.

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(b) Long Term Measures : Mahuda-Mahespur-Bhatmurna-Kako More(via Hirak Road)- Gol Bhawan (NH-32).

(vi ) Railway diversion

Brief Report/Discussion plan for proposed rail routes has been submitted by RITES. The office of G.M.,E.C.Rly,Hajipur and G.M.,S.E. Rly,Kolkata have forwarded their comments along with brief report/discussion Plan of RITES Ltd regarding Rly Diversion to Railway Board,New Delhi.

(vii) Land Acquisition for Satellite Township for non-BCCL people & encroachers

An estimated 1105 ha. of land would be required for resettlement of non-BCCL families. Proposals for 1037.54 acres Raiyti land sent to the DLAO, Dhanbad by JRDA. Proposal to 319.26 acres of Government land sent to the Addl. Collectorate, Dhanbad by JRDA. Further 440 acres (Raiyti and Govt.) land has been surveyed for acquisition / transfer by JRDA 28. Directors’ Responsibility Statement: In terms of Section 217(2AA) of the Companies Act, 1956, the directors report

that: i) In the preparation of the annual accounts, the applicable accounting standards

have been followed. ii) Such accounting policies have been selected and applied consistently and

judgments and estimates have been made that are reasonable and prudent so as to give true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the company for the period.

iii) Proper and sufficient care have been taken for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

iii) The annual accounts have been prepared on a going concern basis. 29. Inspection of Annual Accounts of BCCL. The Annual Accounts of BCCL shall be available for inspection for any shareholders

of Coal India Limited on demand at Company Secretariat of the Company. 30.Implementation of Integrity Pact:

Integrity pact has been implemented in BCCL. An MOU was signed with Transparency International Ltd., Delhi on 4th March 2009 at Dhanbad to implement the integrity pact. As per FDs decision held on 31.01.2011 and 01.02.2011 Integrity Pact coverage have been extended for the tenders awarded with the approval of Director. Integrity Pact are also cover all tenders finalized by GM(MM) and GM(CMC) of the Company. It was previously applicable in all tenders which attract the approval of CMD, as the case may be or of higher level.

31. Performance of MoU Parameters for 11-12: Corporate Governance Report

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(i) Compliance of Corporate Governance as per corporate Governance guidelines issued by DPE - Submitted.

(ii) Submission of date for Public Enterprise Survey published by CPE --- Submitted on 12th September, 2011.

ACKNOWLEDGEMENT

Your Directors extend their thanks to the Government of India, the Ministry of Coal in particular and Coal India Limited for their unreserved support and valuable guidance towards attainment of the objectives of the Company. Your Directors also extend their thanks to the State Government and its officials including those at the District level, for their co-operation and valuable assistance extended to the Company. Your Directors also acknowledge the constructive suggestions received from Statutory Auditors and Comptroller & Auditor General of India and are grateful for their continued supported co-operation. Thanks are also due to the employees and trade unions who extended their full and loyal co-operation in production and all other activities of the Company during the year.

ADDENDUM

The following are annexed to this report: 1. Addendum to the Directors’ Report under section 217(2A) of the Companies Act,

1956 read with the Companies(Particulars of employees ) rules 1975. 2. Addendum of the Directors’ Report under section 217(3) of the Companies Act,

1956. 3. Comments of the Comptroller and Auditor General of India under section 619(4) of

the Companies Act, 1956 and review of Accounts by the Indian Audit and Accounts Department.

For and on behalf of the Board of Directors. Sd/- (T.K .Lahiry) Dhanbad Chairman-cum-Managing Director Dated: 21.05.12 Bharat Coking Coal Limited ANNEXURE-I

RESEARCH & DEVELOPMENT(R&D) DURING 2011-12 1. Technology Absorption, Adaption and Innovation : Covered above. Efforts, in brief, made towards technology absorption, adaption and innovation. The

technology of high capacity sand flushing has been established with the existing pump and stowing arrangement.

2. Benefits Derived as a Result of the above.

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Since favorable results have been achieved, the results of the above experiment can be successfully used to fill inaccessible voids below ground by spend sand flushing to stabilize the ground surface and made it safe. The volume of sand which can be flushed by this technique is quite high compared to conventional stowing.

This R&D scheme was taken up for further trials for other parameters like optimum

ratio of sand, water by volume , maximum distance of packing through a single borehole, maximum void filled through a single borehole, consumption of impeller etc.

3. In case of imported technology imported during the last 5 years reckoned from the beginning of the financial year the requisites information is given below:

(a) Technology imported No new technology was imported/used.

(b) Year of import Not applicable. (c) Has the technology been fully Absorbed. Not applicable. (d) If not fully absorbed, areas where this has not taken

place, reasons therefore and future plan and actions.

Not applicable.

As per MOU

1) Approval of schemes for improvement of fines recovery in washeries – Apex Committee of CIL R&D Board has suggested to explore the possibility of implementing the fine Coal Beneficiation and dewatering system on Turn Key basis in association with CIMFR/IIMT Bhubaneswar.

2) Approval of schemes for use of OC reclaimed Area for agriculture purpose-- Scheme to be presented by CIMFR to CIL.

Report on Corporate Governance : (2011-12) 1. Corporate’s Philosophy: BCCL is committed to observe Corporate Governance at different level for ensuing values, ethical behavior conduct transparency, disclosure as per laws, rules and guidelines. 2. Board of Directors: As per Articles of Association of BCCL, the number of Directors of the Company shall not less than three and not more than fifteen. These directors may be either whole time Functional Directors or part time Directors. 3. Composition of Board: As on 31st March, 2012, the Board of Directors consists of a full time Chairman, 4 Functional Directors, 2 Non-Executive Directors, 4 independent Directors. In addition, there are 2 permanent invitees in the Board.

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4. Board Meeting: During the year 8 Board Meetings were held on 16.04.11,18.5.11,03.07.11,10.08.11,01.10.11,07.11.11,04.02.12 and 03.03.12. Details of number of Board Meeting attended by Director, attendance of last Annual General Meeting, number of other directors etc. during the year 2011-12 are as follows: Sl. No.

Name of Director Category of Directors No. of Board Meetings attended during 2011-12

Attended last AGM

1. Shri T.K. Lahiry Chairman 8 Yes 2. Shri P.E. Kachhap Director 8 No 3. Shri D.C.Jha Director 7 No 4. Shri Amitava Saha Director 5 Yes 5. Shri Ashok Sarkar Director 4 No 6. Shri P.Soma

Shekhar Reddy Non-Executive Director 1 No

7. Shri Paul Joshep Independent Director 5 No 8. Shri S.C. Bhatia Non-Executive Director 5 No 9. Shri B.Ramesh

Kumar Independent Director 4 No

10. DR. B.B.Biswal Independent Director 6 No 11 SHRI N.Kumar Non-Executive Director 0 No 12 Shri

S.B.GhoshDastidar Independent Director 1

13 SHRI NC JHA Non-Executive Director 1 NO 5. Audit Committee : a) Composition: Audit Committee of the Board of Directors of BCCL has been formed in the year 2002 in line with the section 292 A of the Companies Act, 1956 in pursuance of excellence in Corporate Governance. Audit Committee of BCCL consists of four independent Directors, one Functional Directors and one Government Nominee Director, One of the independent Director is the Chairman of the Committee. As on 31st March 2012, the Audit Committee ( a sub committee of BCCL Board of Directors) composed of the following members: i) Shri Paul Joshep : Chairman ii) Shri P.Soma Shekhar Reddy :Member iii) Shri D.C. Jha : Member iv)Shri B.Ramesh Kumar:Member v)Dr.BB Biswal : Member vi) Shri SB Ghosh dastidar:Memberr : Director(Finance) and Head of Internal Audit and the Statutory Auditors are invited to the Audit Committee Meeting for interacting with members of the Committee. Senior Financial Executives are also invited as and when required to provide necessary information to the Committee.

73

b) Scope of Audit Committee: i) Review of financial statement before submission to the Board. ii) Periodical review of internal control system . iii) Review of Govt. Audit and Statutory Auditors’ Report. iv) Review of operational performance vis-à-vis standard parameters including that

of subsidiaries. v) Review of Projects and other capital schemes including that of Subsidiaries. vi) Review of internal audit findings/observations including that of Subsidiaries. vii) Development of a commensurate and effective internal audit function. viii) Special studies /investigation of any matter including issues referred by Board. a) Meeting and Attendance of the Audit Committee: Six meetings of the Audit Committee were held during the financial year 2011-12 on 18.5.11,10.08.11,30.09.11,07.11.11,04.02.12 and 03.03.12. The details of the meeting of Audit Committee attended by the members are as under: Sl. No.

Name of Director status No. of Board Meetings attended

1. Shri Shri Paul Joshep

Chairman 4

2. Shri N.C. Jha Chairman 0 3. Shri S.C.Bhatia Member 3 4. Shri B.Ramesh

Kumar Member 4

5. Dr.BB Biswal Member 5 6. Shri D.C. Jha Member 5

b) General Body Meeting : Date, time and venue of the last 3 Annual General Meeting are as under: Financial Year

Date Time Location

2010-11 24.05.11 11.30AM Koyla Bhawan, Koyla Nagar, Dhanbad

2009-10 20.05.2010 11.30 AM Koyla Bhawan, Koyla Nagar, Dhanbad



f) Share holding pattern of BCCL: 100% share of BCCL are held by Coal India Limited and its nominee. As per MOU

1) Compliance of Corporate Governance guidelines issued by DPE as applicable to BCCL : 100%

74

2) Submission of data for public enterprises survey published by DPE ( in line with DPE Directives ) : Submitted on 12.09.2011

75

AUDITOR’S REPORT MANAGEMENT’S REPLY TO THE MEMBERS OF

BHARAT COKING COAL LIMITED

1. We have audited the attached Balance Sheet of BHARAT COKING COAL LIMITED as at 31st March, 2012 and the Profit & Loss Account of the Company and also the Cash Flow Statement for the year ended on that date both annexed thereto. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in

accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

We further report that Accounts of

different Areas inclusive of Collieries, Washeries, Workshops and other units audited by the

76

respective Branch Auditors in accordance with the appointment made by the Comptroller and Auditor General of India in this behalf, have been incorporated in the aforesaid accounts after considering the reports of the respective Branch Auditors.

3. As required by the Companies (Auditor’s Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the said Order to the extent applicable.

Attention is drawn to the following :- 3.1 Survey off Assets Para 5.2.5 of Additional Notes on

Accounts (Note-34) refers to Assets retired from active use, which are being held for disposal. These are being retained at net book value i.e. cost less depreciation without ensuring that the book value is lower than net realisable value as recommended by A.S. 10-Accounting for Fixed Assets issued by ICAI and to this extent, expected loss, if any, could not be recognized in the Profit & Loss Statement as recommended by the Accounting Standard-10.

This has already been explained in Additional Notes on the Accounts at Para No. 5.2.5. This practice is being consistently followed by the Company and its effect in the Profit & Loss Account is also not material.

3.2 Provision for Impairment of Assets: Para 5.2.6 of Additional Notes on

Accounts (Note-34 ) refers to provision for Impairment of Assets as laid down by A.S.28 issued by ICAI a sum of Rs. 2.74 Crores & 2.84 Crores has been determined as impairment loss of assets and withdrawal of impairment .

Other than Fixed Assets under the

category of ‘Prospecting & Boring and Development’ no provision has been

Impairment of assets has been ascertained during the year as indicated in para no. 5.2.6 of Additional Notes on the Accounts.

77

created in the Accounts towards impairment loss; if any, for other Fixed Assets.

3.3 Overburden Removal (OBR) Accounting : Para 11 of Accounting Policy

(Note-33) deals with method of O.B.R. Accounting. Regarding compliance of the directions contained in A.S. 26 – ‘Intangible Assets’ issued by I.C.A.I., status-quo has been maintained placing reliance on Expert’s opinion obtained by the Company in the past.

This being a statement of fact calls for no comment separately.

3.4 For Assets and Liabilities taken over following Nationalisation of Coal Mines by virtues of Govt. Notification as dealt with in Para 5.2.1 of Additional Notes on Accounts (Note- 34), necessary Deed of Conveyance has remained to be executed.

This has been suitably disclosed in Addl. Notes on the Accounts.

3.5 Depreciation on unmoved Capital work in progress: As dealt with in para 5. 3.2 of Additional Notes on Accounts (Note-34) provision for depreciation at applicable rates have been made on Plant & Machinery and incomplete civil jobs lying in Capital Work in Progress remaining unmoved for 3 & 4 years respectively, without ascertaining the adequate reasons for non-completion.

No depreciation has been charged on Capital-work-in-Progress which has not been moved for more than three and four years as the case may be but a provision equivalent at the rate of depreciation applicable on the category of assets have been made in the Accounts for wear and tear of the machinery/effluxion of time.

4. We further observe as follows: 4.1: Sundry Creditors and advance to

parties at certain Area Offices: Though letter of confirmation of balance are sent to Sundry creditors and advance to parties, no confirmation has been received by the areas in absence of which we are unable to comment upon the existence/outstanding balances.


4.2 :Para 14.11 of Additional Notes on Accounts (Note 34) refers to investigation of expenditure of erstwhile

This being a statement of fact and suitably disclosed in Additional Notes on the

78

KUSTORE Area (now merged with other areas, such as: Kusunda, Bastacolla & PB Area) by different authorities / outside agencies and number of books and records seized by the investigating authorities were not made available for audit. The outcome of investigation might severely affect the final amount payable in respect of liability already accounted for Rs.26.09 Crores and non-accounted liability for several bills amounting to Rs.24.44 Crores under various expenditure heads (presently shown as Contingent Liability); although non accountal of above liability has resulted in overstatement of Profit and understatement of Current Liability by Rs.24.44 Crores.

Further, as mentioned in Para 6.2 of Additional Notes on Accounts (Note 34) Shortage of Stock noticed during the year amounting to Rs.113.38 Crores (accounted for as per para 6.1 of Significant Accounting Policies: Note No.33) include shortage of stock Rs.72.88 Crore at erstwhile Kustore Area itself.

Accounts in para no 14.11. This being a statement of fact and suitably disclosed in Additional Notes on the Accounts in para no 6.2.

4.3 : The accounts have been prepared on the going concern assumption. In view of the huge carried forward losses and negative net worth position at the year end, the Company’s ability to continue as a going concern is dependent on availability of substantial finance as well as future profitability.


5. Further to our comments in the paragraph (4) above, we report that:

(a) we have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit;


(b) in our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of


79

the books;

(c) the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;


(d) in our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;


(e) Since Section 274(1)(g) of the Companies Act, 1956 is not applicable to the Government Companies, question of reporting on disqualification of Directors does not arise;


(f) in our opinion, and to the best of our information and according to the explanations given to us, the annexed accounts subject to notes given in Note “34” give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India : 1. in the case of the Balance

Sheet, of the state of affairs of the Company as at 31st March, 2012;

2. in the case of the Profit &

Loss Account, of the Profit of the Company for the year ended on that date; and

3. in the case of Cash Flow

Statement, of the cash flows for the year ended on that date.


80

Sd/- Place: Dhanbad For Anand Rungta & Co. Firm Reg. No.: 000681C Chartered Accountants Dated: 21.05.2012 Sd/- M. C. Midya Partner, Memb. No.: 072352

BHARAT COKING COAL LIMITED ANNEXURE TO THE AUDITORS’ REPORT

(Referred to in paragraph ‘3’ of our report of even date)

1. (a) The company has the system of maintaining records to show full particulars of Fixed Assets including quantitative details and situation thereof except at Eastern Jharia and D &F Ropeways.

Noted for corrective action.

(b) Fixed Assets costing Rs. 1.00 Lac and above have been physically verified by the management during the year as per the policy of the Company. Assets valuing less than Rs. 1.00 Lac have not been verified by the management. We are unable to express our opinion as to material discrepancy, if any, that might exist in respect of assets costing less than one lac in each case which have not been physically verified.


(c) According to the information and explanations given to us the Company has not disposed off substantial part of Fixed Assets during the year.


2. (a) Stock of Coal, Washed Coal and Washery Products have been physically verified by Coal India team at the end of the year. The physical verification of stores and spare parts has been carried out by the management on a perpetual basis at reasonable intervals.


(b) The procedures of physical verification of Inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.


81

(c) The company is maintaining proper records of inventory, except for stock of stores where there is unreconciled difference between Priced Store Ledger and adopted Book Stock amounting to Rs. 6.71 Crores. The discrepancies have been properly dealt with in the books of account.


3. (a) We are informed that the company has neither taken, nor granted any loan, secured and unsecured, from/to companies, firms or other parties listed in the register maintained u/s 301 of the Companies Act,1956.


(b) The rate of interest and other terms and conditions etc. are not applicable in view of our comment in (3) (a) above.


(c) Repayment of principal amount and interest is not applicable in view of our comments in (3)(a) above.


(d) Overdue amount of loans is not applicable in view of our comment in (3) (a) above.


4. In our opinion and according to the information and explanations 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 purchases of inventory, fixed assets and with regard to sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls; except at KUSTORE AREA where some lapse of internal control regarding reporting of closing stock of coal and procedure of giving financial concurrence against bills submitted by different parties. The matter is under investigation by different authorities / agencies.

In order to strengthen the internal control system, units of Kustore Area were merged with Bastacolla Area, P.B. Area and Kusunda Area wef 04.02.2012.

5. (a) According to the information and explanations given to us, no transaction requiring entry in the Register maintained u/s 301 of the Companies Act,1956 has


82

come to our notice.

(b) In view of our comments in paragraph (5) (a) above question of reasonableness of the prices etc. does not arise.


6. In our opinion and according to the information and explanations given to us, since the company has not accepted any deposit from public, question of complying with provisions of Sections 58A and 58AA of the Companies Act,1956 and the rules framed there under does not arise.


7. In our opinion, the Company has an internal audit system commensurate with the size of the company and nature of its business. However, there is a scope for developing System and Management Audit in order to make the internal audit an effective tool for exercising control mechanism.

To strengthen the internal audit system of the Company, the Firms of Chartered Accountants /Cost Accountants were appointed as Internal Auditor for continuous audit from F.Y 2011-12.

8. The cost records maintained by the

Company broadly serves the purpose as envisaged in the notification.


9. (a) The Company is generally regular in depositing Provident Fund and Pension Fund dues with the appropriate authorities. The Provident Fund and Pension Fund dues were Rs. 47.67 Crores and Rs. 6.92 Crores respectively as on 31st March, 2012. We are informed that Employees State Insurance laws are not applicable to the Company.

(b) According to the information

and explanations given to us, no undisputed amount payable in respect of Income Tax, Wealth

Company is regular in regard to payment of P.F. and Pension Fund within due date. Bazaar Tax is subjudice hence payment has not been made. This has been suitably disclosed in Additional Notes on the Accounts in Para No. 3.2.

83

Tax, Sales Tax, Customs Duty, Excise Duty and Cess were in arrears as at 31st March,2012 for a period of more than six months from the date they became payable, except Bazaar Tax which have not been paid by the Company and the amount of arrears as on 31.03.2012 was Rs. 214.81 Crores.

(c) According to the information

and explanations given to us by the Branch Auditors, the particulars of dues of Sales Tax and other dues as at 31st March, 2012 which are disputed are as under :-

The Management is pursuing the cases with appropriate authorities for early settlement.

S.N. Prticulars Areas/Uni

ts Amount (Rs. in

Crores).

1. Sales Tax Royalty

Barora 10.80 1.90

2. Sales Tax/Levy Royalty

Block II Area

4.47 2.05

3. Sales Tax Royalty

Govindpur 33.83 2.18

4. Sales Tax/Levy Income Tax Royalty Others

Katras 24.52 0.27 0.08 0.11

5. Sales Tax/Levy Service Tax Others

Sijua 97.30 0.04

6.

Sales Tax/Levy Royalty

Kusunda 49.05 0.10


P.B. Area 38.50 12.88


Kustore 11.83 5.59

9. Sales Tax/Levy Other Levies

Bastacolla 42.09 5.33

10. Sales Tax/Levy Lodna 35.40 11. Sales Tax

Royalty Other

E.J. Area 19.88 0.09 2.74

12. RE/PE Cess Sales Tax Royalty on Coal

C.V. 271.82 12.32 0.02

84

Service Tax 1.37

13. Sales Tax/Levies Royalty Others

W.J. Area 4.64 77.47 0.15

14. Sales Tax/Levies Others

Washery Division

78.90

15. Sales Tax/Levy

Madhuban Washery

3.40

16. Sales Tax/Levies Others

Purchase. Finance

0.16 0.33

17. Sales Tax/Levy Mines Rescue Station

0.0025

18. Service Tax Central Accounts

16.79

10. The Company was referred to BIFR on the basis of Accounts as on 31.03.2000. The accumulated loss of Rs. 5604.83 Crores as on 31.03.2012 far exceeds its paid up capital which leads to negative net worth. The Company has not incurred any cash loss during the financial year and in the immediately preceding financial year.


11. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to any financial institution, bank or debenture holders.


12. Since the Company has not granted any loan and advance on the basis of security by way of pledge of shares/debentures and other securities, the provisions of clause 4(xii) of the Companies (Auditor’s Report) Order, 2003 are not applicable.


13. In our opinion, the Company is not a chit fund or a nidhi/mutual benefit fund/society, therefore, the provisions of clause 4(xiii) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the Company.


14. In our opinion, the company is not dealing in or trading in shares, securities,


85

debentures and other investments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the company.

15. In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the company.


16. In our opinion, no term loan has been borrowed during the year.


17. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report that no funds raised on short term basis have been used for long-term investments and vice-versa.


18. Since the Company has not made any preferential allotment of shares, provisions of clause 4(xviii) of the Companies (Auditor’s Report) order, 2003 are not applicable.


19. Since the company has not issued any debentures, provisions of clause 4(xix) of the Companies (Auditor’s Report) order, 2003 are not applicable.


20. Since the Company has not raised any money by public issue, provisions of clause 4(xx) of the Companies (Auditor’s Report) order, 2003 are not applicable.


21. According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year; except at erstwhile KUSTORE AREA where in view of issues mentioned at point no.4.2 of our main audit report, which are being investigated by different authorities / outside investigating agencies; as such we are unable to comment whether during the year any fraud has been reported or noticed.


86

Sd/- Place: Dhanbad For Anand Rungta & Co. Firm Reg. No.: 000681C Chartered Accountants Dated: 21.05.2012 Sd/- M. C. Midya Partner, Memb. No.: 072352

88

BHARAT COKING COAL LIMITED Annexure- 1

Annexure I to Clause 41 Financial Result for The Year ended 31.03.2012

in Crores

Particulars 3 months Preceeding Correspond-

Year to date Previous

ended 3 months ing 3months figures

for Year

ended ended C/Year

en- ended

31.03.12 31.12.11 31.03.11 ded

31.03.12 31.03.2011 Unaudited Unaudited Unaudited Audited Audited 1. Income from operations Net Sales/Income from Operations(Net of excise duty) 2513.55 1646.30 1855.71 7280.48 6157.11 Total Income from operations (Net) 2513.55 1646.30 1855.71 7280.48 6157.11 2. Expenses :

Change in Inventories of Finished Goods,WIP & Stock in Trade -106.27 84.89 -149.71 79.31 -173.25 Cost of Material Consumed 127.06 122.18 118.58 467.85 445.87 Employees Benefit Expenses 1469.88 925.55 734.08 4211.01 3235.35 Power & Fuel 77.65 71.55 48.60 314.80 217.82 Welfare Expenses 41.67 43.19 90.58 164.47 138.23 Repairs 44.56 14.39 30.95 80.51 70.05 Contractual Expenses 214.22 163.27 198.57 665.47 643.35 Other Expenses 150.57 122.96 209.94 503.15 544.13 Overburden Removal Adjustment 40.53 6.94 17.02 47.72 20.57 Finance Charges/Commitment Charges 0.00 0.00 0.00 0.00 0.00 Depreciation/Amortisation/Impairment/Provisions 51.16 52.08 55.68 201.35 187.07 Write Off 20.20 0.00 0.00 37.57 0.03 Provisions 19.13 61.37 15.86 198.09 1.42 Total 2150.36 1668.37 1370.15 6971.3 5330.64 3.Profit from Operations before other income, 363.19 -22.07 485.56 309.18 826.47 Interest & excep.items(1-2) 4. Other Income 268.30 97.53 104.44 534.15 303.32 5.P/L from ord. activities before Intt.& Exceptional Items(3+4) 631.49 75.46 590.00 843.33 1129.79 6.Interest 2.99 5.44 9.49 22.84 42.01 7.P/L from ord. activities before Exceptional Items(5-6) 628.5 70.02 580.51 820.49 1087.78 8.Exceptional Items 2.13 0.00 5.98 1.87 5.91 9.Profit(+)/Loss(-) from ordinary activities before tax(7+8) 630.63 70.02 586.49 822.36 1093.69 10.Tax Expenses 0 11.Net Profit(+)/Loss(-)from ordinary activities after tax(9-10) 630.63 70.02 586.49 822.36 1093.69 12.Extraordinary Item(net of tax expenses Rs. ) 13.Net Profit(+)/Loss(-) for the period (11-12) 630.63 70.02 586.49 822.36 1093.69 14.Paid up Equity Share Capital 2118.00 2118.00 2118.00 2118.00 2118.00 15.Reserve excluding Revaluation Reserves as per (6,427.19) (6,427.19)

(7,520.88)

(6,427.19)

(7,520.88)

Balance Sheet of previous accounting year.

16.Earning Per Share(EPS) in Rupees

89

a) Basic and Diluted EPS before Extraordinary items 297.75 33.06 276.91 388.27 516.38 for the period, for the year to date & the previous year

b) Basic and Diluted EPS after Extraordinary items 297.75 33.06 276.91 388.27 516.38 for the period, for the year to date & the previous year 17.Public Shareholding No. of Shares Nil Nil Nil Nil Nil Percentage of Shareholding

18.Promoters and promoter group shareholding a) Pledged/Encumbered Nil Nil Nil Nil Nil Number of Shares

Percentage of Shares(as a % of the total Share

holding of promoter and promoter group)

% of Shares(as a % of the total Share Cap.of the Co.)

b) Non-encumbered Nil Nil Nil Nil Nil Number of Shares

Percentage of Shares(as a % of the total Share

holding of promoter and promoter group)

% of Shares(as a % of the total Share Cap.of the Co.)

(K.N.Mukhopadhyay) (A.K.Pandey) (Amitava Saha)

( T.K.Lahiry )

GM( Company Secretary ) Gen.Manager(F) Director( F ) Chairman-cum-Managing Director

Place :Dhanbad

For Anand Rungta & Co

Date : 21.05.2012

Firm Registration No - 000681C

Chartered Accountants

Place : Dhanbad

( M. C. Midya)

Date : 21.05.2012

Partner

M. No - 072352

.

90


BALANCE SHEET AS AT 31.03.12

₹ in Crores

Note As at 31.03.2012

As at 31.03.2011

I. EQUITY AND LIABILITIES 1) Shareholders' Fund

a) Share Capital 1

2,118.00

2,118.00

b) Reserves & Surplus 2

(5,604.83)

(6,427.19)

c)Money received against Share Warrants

-

(3,486.83)

-

(4,309.19)

2) Application money pending allotment

-

-

3) Non-Current Liabilities

a) Long Term Borrowing 3

1,083.30

1,083.30

b)Deferred Tax Liability (Net)

-

-

c)Other Long Term Liabilities 4

7.67

4.75

d)Long Term Provisions 5

2,533.31

1,845.06

3,624.28

2,933.11

4) Minority Interest 5) Current Liabilities

a) Short Term Borrowing 6

2,500.23

3,145.08

b) Trade Payables 7

127.74

95.22

c) Other Current Liabilities 8

2,478.23

2,144.27

d) Short Term Provisions 9

971.43

787.06

6,077.63

6,171.63

Total

6,215.08

4,795.55

II. ASSETS 1. Non-Current Assets (a) Fixed Assets 10

i) Tangible Assets - Gross Block

4,026.10

3,799.56

Less : Depreciation & Impairment Provisions

2,703.76

2,584.54

Net Carrying Value

1,322.34

1,215.02

ii) Intangible Assets - Gross Block

542.19

533.82

Less : Depreciation & Impairment Provisions

428.59

419.24

Net Carrying Value

113.60

114.58

iii) Capital Work-in-Progress

163.83

102.83

iv) Intangible Assets under Development

3.09

2.12

91

(b) Non-Current Investment 11

41.57

55.42

(c)Deferred Tax Assets (Net)

-

-

(d ) Long Term Loans & Advances 12

39.82

41.25

(e) Other Non-Current Assets 13

0.87

0.72

2. Current Assets

(a) Current Investments 14

13.86

13.86

(b) Inventories 15

1,044.41

1,112.36

(c ) Trade Receivables 16

951.72

618.14

(d) Cash & Bank Balance 17

2,102.86

1,250.98

(e) Short Term Loans & Advances 18

237.04

104.77

(f) Other Current Assets 19

180.07

163.50

4,529.96

3,263.61

Total

6,215.08

4,795.55

Significant Accounting Policies 33 Additional Notes on Accounts 34 The Notes reffered to above form an integral part of Balance Sheet

(K.N.Mukhopadhyay) (A.K.Pandey) (Amitava Saha)

( T.K.Lahiry )

GM( Company Secretary) Gen.Manager(F) Director( F )

Chairman-cum-Managing Director

This is the Balance Sheet referred to in our Report of even date. Place : Dhanbad

Date : 21.05.2012




Place : Dhanbad

Date : 21.05.2012

( M. C. Midya)

Partner

M. No - 072352

92


PROFIT & LOSS ACCOUNT

For The Year Ended 31.03.2012

₹ in Crores

Note For the Year

For the Year

INCOME

ended 31.03.12

ended 31.03.11

Sale of Coal,Coke,etc

8583.87

6951.77

Less: Excise Duty

377.56

29.08

Other Levies

925.83

765.58

I. Revenue From Operations 20 7,280.48

6,157.11

II. Other Income 21

534.15

303.32

III. Total Revenue (I+II)

7,814.63

6,460.43

IV. EXPENSES

Cost of Material Consumed 22

467.85

445.87

Purchase of Stock-in-trade

Change in inventories of F/goods WIP & Stock in trade 23 79.31

(173.25)

Employee benefit expenses 24

4,211.01

3,235.35

Power & Fuel

314.80

217.82

Welfare Expenses 25

164.47

138.23

Repairs 26 80.51

70.05

Contractual Expenses 27

665.47

643.35

Finance Costs 28 22.84

42.01

Depreciation/amortization/Impairment

201.35

187.07

Provisions 29

198.09

1.42

Write off 30 37.57

0.03

Overburden Removal Adjustment

47.72

20.57

Other Expenses 31

503.15

544.13

Total Expenses

6,994.14

5,372.65

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

820.49

1,087.78

and extraordinary items and tax(III-IV)

VI. Prior Period Adjustment {Charges/(Income)} 32 (1.87)

(5.91)

VII. Exceptional Items

VIII. Profit/(Loss) before extraordinary items and tax(V-VI-VII)

822.36

1,093.69

IX. Extraordinary Items {Charges/(Income)}

-

-

93

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

822.36

1,093.69

XI. Less :Tax Expense

- Current year

-

-

- Deferred Tax

-

-

- Earlier years

-

-

XII.

Profit/(Loss) for the Period from continuing operations(X-XI)

822.36

1,093.69

XIII. Profit/(Loss) from discontinuing operations XIV. Tax expenses for discontinuing operations

XV. Profit/(Loss) from discontinuing operations (after tax) (XIII-XIV)

XVI. Profit/(Loss) for the Period (XII+XV)

822.36

1,093.69

Earnings per equity share (in Rs.) (Face Value of Rs.1000/- per share)

1) Basic

388.27

516.38

2) Diluted

388.27

516.38

Significant Accounting Policies 33

Additional Notes on Accounts 34

The Notes referred to above form an integral part of Profit & Loss Account.

(K.N.Mukhopadhyay) (A.K.Pandey) (Amitava Saha) ( T.K.Lahiry )

GM( Company Secretary) Gen.Manager(F) Director( F )


This is the Profit & Loss Account referred to in our Report of even date.


Place : Dhanbad


Date : 21.05.2012


Place : Dhanbad

Date : 21.05.2012

( M. C. Midya)

Partner

M. No - 072352

95


Statement of Flow of Cash and Cash Equivalent ( Under Indirect method )

For the year ended 31.03.2012 and Year ended 31.03.2011

₹ in Crores

Details 31.03.2012 31.03.2011

1.FUND FROM OPERATION :

Net Profit(+)/Loss(-) before taxation & extra ordinary items: 822.36

1093.69

Adjustments for :

( a ) Depreciation , Miscellaneous Expenditure

written off and OBR 249.07 207.63

( b ) Provision against Capital WIP 0.34 0.38

( c ) Interest 22.84 42.02

Operating Profit(+)/Loss(-) before Working Capital changes:

1094.61

1343.72

( d ) Decrease(+)/ Increase(-) in Trade Receivables(Net) -333.58

-224.33

( e ) Decrease(+)/ Increase(-) in Short/Long Term Loan & Advances -147.56

22.15

and Other Current & Non Current Assets

( f ) Decrease(+)/ Increase(-) in Inventories 67.96

-173.46

( g) Decrease(-)/ Increase(+) in Trade payables ,Short/Long Term

1234.01

-228.93

Provisions & Other Current & Long Term Liabilities

Net Cash from Operating Activities :

1915.44

739.15

2.CASH FLOW FROM INVESTING ACTIVITIES :

( a ) Purchase of Fixed assets 679.39 593.92

( b ) Purchase of Investments -13.85 -13.85

( c ) Adjustment for sale / discard of assets -309.38 -276.00

Net Cash used in Investing Activities : 356.16 304.07

3.CASH FLOW FROM FINANCING ACTIVITIES :

( a ) Proceeds from Loan/ Current Account Balance with CIL -630.16 249.10

( b ) Interest paid -1.05 -4.15

96

Net Cash used in Financing Activities : -631.21 244.95

( I ) Net Increase in Cash & Cash equivalents ( 1-2+3 ) 928.07 680.03

( II ) Cash & Cash equivalents at the beginning of the period :

a. Opening Cash & Cash Equivalent 1250.99 923.03

b. Opening Cash Credit Balance 111.10

1139.89 463.17 459.86

( III ) Cash & Cash equivalents at the end of the period :

a. Closing Cash & Cash Equivalent 2102.86

1250.99

b. Closing Cash Credit Balance 34.90

2067.96 111.10

1139.89

[ III - II ] 928.07 680.03

(K.N.Mukhopadhyay) (A.K.Pandey) (Amitava Saha) (T.K.Lahiry)

GM(Company Secretary) Gen.Manager(F) Director(F) Chairman Cum Managing Director




( M. C. Midya)

Partner

M. No - 072352

97


NOTE TO BALANCE SHEET AS AT 31.03.2012

NOTE - 1

SHARE CAPITAL

₹ in Crores

As at

As at

31.03.12

31.03.11

Authorised (i) 250,00,000 Equity hares of Rs. 1000/- each 2500.00

2500.00

2,500.00

2,500.00

Issued, Subscribed and Paid-up

(i) 20330126 Equity Shares of Rs.1000/- each fully

2,033.01

2,033.01

paid in cash

(ii) 849874 Equity Shares of Rs.1000/- each allotted

84.99

84.99

as fully paid up for consideration received other than

cash

2,118.00

2,118.00

Note:Shares in the company held by each shareholder holding more than 5% Shares

Name of Shareholder

No. of Shares

Held (Face

% of Total Shares

98

value of Rs 1000

each)

Coal India Limited 21180000 100

99



NOTE - 2

RESERVES & SURPLUS

₹ in Crores

As at

As at

31.03.12

31.03.11

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 -

-

As per last Balance Sheet

(6,427.19)

(7,520.88)

Profit/(Loss) after Tax During the Year 822.36

1,093.69

Profit/(Loss) available for Appropriation

(5,604.83)

(6,427.19)

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 :

(5,604.83)

(6,427.19)

100



NOTE - 3

LONG TERM BORROWING

₹ in Crores

As at

As at

31.03.12

31.03.11

Term Loan

IBRD -

-

JBIC -

-

Export Development Corp., Canada

Liebherr France S.A., France

Loan From Coal India Limited

1,083.30

1,083.30

Total (A+B)

1,083.30

1,083.30

CLASSIFICATION 1

Secured

-

-

Unsecured 1,083.30

1,083.30

CLASSIFICATION 2

Loan taken under Guarantee

Particulars of Loan Amount in Rs crores

Nature of Guarantee

Nil Nil Nil

Note: 1) Amount outstanding in foreign currency is to be disclosed.

2) Period and amount of continuing default as on the balance sheet date in loans repayment of and interest, shall be specified separately in each case.

3) State Security & Term of repayment of each line item under the schedule as notes.

Action to be taken: Please take out the next 12 month payable out of each item of this Note and place that in the Note of other current liability

101



NOTE - 4

OTHER LONG TERM LIABILITIES

₹ in Crores

As at

As at

31.03.12

31.03.11

Shifting & Rehabilitation Fund

Opening Balance

Add: Interest from Investment of the fund

Add: Contribution Received

Less: Amount utilised

Trade Payable*

Security Deposits 7.67

4.75

Others ( Specify Nature) -

-

Total 7.67

4.75

Note: 1) Amount outstanding in foreign currency is to be disclosed.

2) *Any Deffered credit for more than 12 months on payment allowed directly by the supplier may be shown here.

102



NOTE - 5

LONG TERM PROVISIONS

₹ in Crores

As at

As at

31.03.12

31.03.11

For Employee Benefits

- Gratuity 1871.98

1,395.17

- Leave Encashment

303.66

271.10

- Other Employee Benefits

242.91

151.84

For Foreign Exchange Transactions (Marked to Market) -

-

OBR Adjustment Account

57.02

9.30

Mine Closure

57.74

17.65

For Others -

-

TOTAL

2,533.31

1,845.06

103

BHARAT COKING COALLIMITED


NOTE - 6

SHORT TERM BORROWING

₹ in Crores

As at

As at

31.03.12

31.03.11

Loan From Bank -

-

Loans Repayable on Demand

Balance with Coal India Limited & other Subsidiaries of Coal India Limited 2,500.23

3,112.48

Overdraft against Pledge of Term Deposit -

32.60

Other Loans and Advances

Deferred Credits -

-

Total : 2,500.23

3,145.08

CLASSIFICATION 1

Secured -

32.60

Unsecured

2,500.23

3,112.48

CLASSIFICATION 2

Loan taken under Guarantee

Particulars of Loan Amount in Rs crores Nature of Guarantee

Nil Nil Nil

104



NOTE - 7

TRADE PAYABLES

₹ in Crores

As at

As at

31.03.12

31.03.11

Sundry Creditors For Revenue Stores

127.74

95.22

TOTAL

127.74

95.22

105



NOTE - 8

OTHER CURRENT LIABILITIES

₹ in Crores

As at

As at

31.03.12

31.03.11

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

-

Current Account with Subsidiaries

-

For Capital ( including Stores)

40.36

49.28

FOR EXPENSES :

Salary Wages & Allowances

652.33

275.31

Power & Fuel

158.48

158.99

Others

373.36

310.74

1,224.53

794.32

STATUTORY DUES :

Sales Tax/VAT**

26.55

Provident Fund & Pension Fund

55.37

150.01

Central Excise Duty

12.51

7.18

Royalty & Cess on Coal

27.89

25.06

Stowing Excise Duty

8.15

7.67

Clean Energy Cess

26.73

25.13

Other Statutory Levies

222.17

167.70

382.93

409.30

Income Tax Deducted at Source

19.48

20.97

Security Deposit

50.54

62.14

Earnest Money

32.25

20.86

Advance Deposit from Customers & Others

537.45

417.56

Interest Accrued and due on Borrowings

-

-

Interest Accrued but not due on Borrowings -

-

Cess Equilisation Account -

-

Current Account with IICM -

-

Ex-Owner Account -

106

Unpaid Dividend* -

-

Advance Deposit other Pre-Nationalisation -

-

Others Liabilities

231.05

419.12

TOTAL

2,478.23

2,144.27

Note: 1) * No amount is due for payment to Investor Education & Protection Fund

2) ** Net of receivable and payable

107



NOTE - 9

SHORT TERM PROVISIONS

₹ in Crores

As at

As at

31.03.12

31.03.11

For Employee Benefits

- Gratuity 426.25

363.95

- Leave Encashment 74.51

67.70

- PPLB 130.31

97.15

- PRP 259.75

188.42

- Other Employee Benefits -

-

For Proposed Dividend -

-

For Corporate Dividend Tax -

-

Provision for Income Tax

Less: Advance Income Tax/TDS

-

-

For Excise Duty on Closing Stock of Coal 80.61

69.84

For Others -

-

TOTAL 971.43

787.06

108

NOTE TO BALANCE SHEET AS AT 31.03.12,

NOTE - 10 FIXED ASSETS AND CAPITAL WORK IN PROGRESS

₹ in Crores

PARTICULARS FIXED ASSET & CWIP:GR.BLOCK

PROV FOR DEPRECIATION & CWIP

IMPAIRMENT/LOSS

NET BLOCK NET BLOCK

FIXED ASSETS : AS ON ADDITION Adj/Sale/ G.BLOCK AS ON ADDITION Adj/Sale/ TOT ON AS ON ADDITION Adj/Sale/ TOT ON AS ON AS ON TANGIBLE ASSETS 01.04.11 Transfer 31.03.12 01.04.11 Transfer 31.03.12 01.04.11 Transfer 31.03.12 31.03.12 31.03.11 Land:Freehold 53.76 0.63 -0.88 53.51 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 53.51 53.76 Leasehold 3.05 0.00 0.00 3.05 0.88 0.19 0.00 1.07 0.00 0.00 0.00 0.00 1.98 2.17 Building/Water Supply/Rd.& Culverts 455.06 10.87 18.22 484.14 175.99 10.20 7.60 193.79 0.00 0.00 1.13 1.13 289.22 279.07 Plant & Equipments 2902.63 273.36 -106.15 3069.85 2044.38 170.78 -100.23 2114.93 65.59 2.05 5.01 72.65 882.27 792.66 Telecommunication 0.00 0.04 8.18 8.22 0.00 0.33 6.71 7.04 0.00 0.00 0.00 0.00 1.18 0.00 Railway Siding 47.61 0.13 -0.99 46.75 33.73 1.31 -0.99 34.05 0.00 0.00 0.00 0.00 12.70 13.88 Fur.& Fit./Off.Tool&Eqp/EF/Fire arms 34.81 1.11 -1.91 34.01 30.26 0.73 -3.45 27.54 0.00 0.00 2.60 2.60 3.87 4.55 Vehicle 40.44 4.89 -0.63 44.70 33.78 0.72 -0.64 33.86 0.00 0.00 0.01 0.01 10.83 6.66 Aircraft 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Development 262.20 12.34 -4.13 270.41 169.69 5.06 -1.56 173.19 30.24 0.69 0.39 31.32 65.90 62.27 Assets Taken on Nationalisation 0.00 0.00 11.46 11.46 0.00 0.00 10.58 10.58 0.00 0.00 0.00 0.00 0.88 0.00 TOTAL 3799.56 303.37 -76.83 4026.10 2488.71 189.32 -81.98 2596.05 95.83 2.74 9.14 107.71 1322.34 1215.02 PREVIOUS YR.(TANGIBLE ASSETS) 3555.94 291.28 -47.66 3799.56 2365.96 168.46 -45.71 2488.71 95.25 0.58 0.00 95.83 1215.02 INTANGIBLE ASSETS:Comp.Software 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Development 511.23 8.30 0.07 519.60 311.84 11.85 0.00 323.69 85.36 -1.89 0.06 83.53 112.38 114.03 Prospecting & Boring 22.59 0.00 0.00 22.59 20.53 0.28 0.00 20.81 1.51 -0.95 0.00 0.56 1.22 0.55 TOTAL 533.82 8.30 0.07 542.19 332.37 12.13 0.00 344.50 86.87 -2.84 0.06 84.09 113.60 114.58 PREVIOUS YR(INTANGIBLE ASSETS) 504.44 29.38 0.00 533.82 322.00 10.37 0.00 332.37 79.22 7.65 0.00 86.87 114.58 CAPITAL WORK IN PROGRESS : TANGIBLE:Bldg/Wat.Supply/Rd.&Culv. 11.82 41.90 -10.32 43.40 1.76 0.12 0.03 1.91 0.00 0.00 0.00 0.00 41.47 10.06 Plant & Equipments 81.36 310.49 -281.87 109.98 26.82 0.13 -0.08 26.87 0.00 0.00 0.05 0.05 83.07 54.54 Railway Siding 0.78 0.09 -0.09 0.78 0.63 0.01 0.00 0.64 0.00 0.00 0.00 0.00 0.13 0.15 Development 11.84 11.84 -12.58 11.11 0.59 0.08 0.00 0.67 0.00 0.00 0.00 0.00 10.45 11.26 Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL 105.80 364.32 -304.86 165.26 29.80 0.34 -0.05 30.09 0.00 0.00 0.05 0.05 135.12 76.01 PREVIOUS YR(TANGIBLE CWIP) 95.27 248.09 -237.56 105.80 29.51 0.38 -0.09 29.80 0.00 0.00 0.00 0.00 76.01 SURVEYED OFF ASSETS 26.82 3.93 -2.04 28.71 28.71 26.82 PREVIOUS YEAR 28.41 1.94 -3.53 26.82 26.82 Grand Total CWIP(Tangible) 132.62 368.25 -306.90 193.97 29.80 0.34 -0.05 30.09 0.00 0.00 0.05 0.05 163.83 102.83 Grand Total CWIP(Tangible)Pv.Year 123.68 250.03 -241.09 132.62 29.51 0.38 -0.09 29.80 0.00 0.00 0.00 0.00 102.83 0.00 INTANGIBLE:Development 3.41 9.32 -2.70 10.03 1.29 0.00 0.00 1.29 0.00 0.00 5.65 5.65 3.09 2.12 Prospect.& Boring 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL 3.41 9.32 -2.70 10.03 1.29 0.00 0.00 1.29 0.00 0.00 5.65 5.65 3.09 2.12 PREVIOUS YR(INTANGIBLE CWIP) 13.25 25.17 -35.01 3.41 1.29 0.00 0.00 1.29 0.00 0.00 0.00 0.00 2.12 .

109

BHARAT COKING COAL LTD


NOTE- 11

NON - CURRENT INVESTMENTS - Unquoted at Cost

₹ in Crores

Number of shares/bonds/s

ecurities current

yr/(previous yr)

Face value per

shares/bonds/security

current yr (previous yr)

As at

As at

31.03.12

31.03.11

TRADE

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

(on securitisation of Sundry Debtors) Major State-wise Break-up

UP 6 / (8)

69,280,000

41.57

55.42

-

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) -

-

-

- NON TRADE

7.55% Non Convertible IRFC TAX Free Bonds 2021 Series

Total : 6 / (8)

69,280,000.00

41.57

55.42

Agregate of Quoted Investment

-

- Agregate of Unquoted Investment

41.57

55.42

Market Value of Quoted Investment

-

- Market Value of Unquoted Investment

-

-

Provision made for diminution in the value of Investment

-

-


110


NOTE- 12

₹ in Crores

LONG TERM LOANS & ADVANCES

As at

As at

31.03.12

31.03.11

ADVANCES For Capital : Secured Considered Good

Unsecured Considered Good

23.38

24.31

Doubtful

4.14

4.14

27.52

28.45

Less : Provision for Doubtful Loans and Advances

4.14

4.14

23.38

24.31

For Revenue : Secured Considered Good Unsecured Considered Good Doubtful

-

-


-

-

Security Deposits: Secured Considered Good Unsecured Considered Good Doubtful

-

-


-

-

Deposit for P&T, Electricity etc.: Secured Considered Good


14.30

14.27

Doubtful

1.72

1.72

16.02

15.99


1.72

1.72

14.30

14.27

LOAN TO EMPLOYEES & OTHERS

For House Building: Secured Considered Good

2.05

2.56

Unsecured Considered Good Doubtful

2.05

2.56

For Motor Car & Oth.Conveyance:Secured Considered Good

0.09

0.11

Unsecured Considered Good Doubtful

0.09

0.11

For Others: Secured Considered Good Unsecured Considered Good Doubtful

-

-

111


-

-

Loan To Subsidiaries: Secured Considered Good Unsecured Considered Good Doubtful

-

-

TOTAL

-

39.82

41.25

Note

CLOSING BALANCE MAXIMUM AMT. DUE AT ANY TIME DURING

Due by the Co. under the same management( With name of the Co.) CURRENT PERIOD

PREVIOUS PERIOD

CURRENT PERIOD

PREVIOUS PERIOD

Due by the parties in which the Director(s) of Co.is /are interested Nil Nil Nil Nil * This Loan should include interest accrued thereon. Nil Nil Nil Nil

112



NOTE-13

OTHER NON-CURRENT ASSETS

₹ in Crores

As at

As at

31.03.12

31.03.11

Long Term Trade Receivable

- Secured considered goods

-

-

- Unsecured considered goods

-

-

- Doubtful

-

-

-

-

Less Provision for bad and doubtful trade receivables

-

-

-

-

Exploratory Drilling Work - Secured considered goods - Unsecured considered goods - Doubtful

-

-

Less Provision for bad and doubtful E&D Works

-

-

Other Receivables - Secured considered goods

- Unsecured considered goods

0.87

0.72

- Doubtful

0.87

0.72

Less Provision for bad and doubtful Receivables

0.87

0.72

TOTAL

0.87

0.72

Note

CLOSING BALANCE

MAXIMUM AMOUNT DUE AT ANY TIME

DURING

CURRENT PERIOD

PREVIOUS PERIOD

CURRENT PERIOD

PREVIOUS PERIOD

Due by the Companies under the same management( With name of the Companies) Nil Nil Nil Nil Due by the parties in which the Director(s) of company is /are interested Nil Nil Nil Nil

113



NOTE-14

CURRENT INVESTMENTS - Unquoted at Cost

₹ in Crores

Number of

shares/bonds/securities current yr/(previous yr)

Face value per shares/bonds/security current yr/(previous

yr)

Mkt Value/ NAV per shares/bonds/security

cur.yr./pv yr As at As at

31.03.12 31.03.11

NON-TRADE

Mutual Fund Investment -

-

- -

( with name of mutual fund )

7.55% Non Convertible IRFC Tax Free Bonds

2021 Series

TRADE

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

Sundry Debtors) Major State-wise Break-

up 2 / ( 2 ) 69,280,000

13.86 13.86

Total : 2 / ( 2 )

69,280,000

13.86 13.86

Agregate of Quoted Investment

- -

Agregate of Unquoted Investment

13.86 13.86

Market Value of Quoted Investment

- -

Market Value of Unquoted Investment

- -

Provision made for diminution in the value of Investment

- -

114



NOTE-15 INVENTORIES (Valuation as per Accounting Policy No. 6.0)

₹ in Crores

As at

As at

31.03.12

31.03.11

Stock of Coal/Coke

1,377.86

1,422.30

Coal Under Development

-

-

1,377.86

1,422.30

Less : Provision

431.07

396.36

A Stock of Coal/Coke (Net)

946.79

1,025.94

Stock of Stores & Spare Parts (at cost)

145.85

132.40

Stores -in -transit

3.48

2.75

Less : Provision

52.01

49.03

B Net Stock of Stores & Spare Parts (at cost)

97.32

86.12

Workshop Jobs :

Work-in-progress and Finished Goods Less : Provision

-

-

C Net Stock of Workshop Jobs

-

-

D Press :

Work-in-Progress and Finished Goods

E Stock of Medicine at Central Hospital

0.30

0.30

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

-

-

Total ( A to F )

1,044.41

1,112.36

115


ANNEXURE TO NOTE - 15

Table:A

Reconciliation of closing stock of Raw Coal adopted in Account with Book stock as at 31.03.12

₹ in Crores

(Qty.in lakh Tonne)

OVERALL STOCK NON-VENDABLE

STOCK VENDABLE STOCK

Qty. Value Qty. Value Qty. Value 1.A) Opening Stock as on 01.04.11 96.12 850.25 15.74 0.00 80.38 850.25

( B) Adjustment in Opening Stock - -

-

- 0.00 0.00

2. Production for the year

302.07

6,632.27

-

- 302.07 6632.27

3. Sub-Total ( 1+2)

398.19

7,482.52

15.74

-

382.45

7,482.52 4. Off- Take for the year :

(A) Outside Despatch

267.92

5,639.63

-

- 267.92 5639.63

(B) Coal feed to Washeries

32.78

945.42

-

- 32.78 945.42

(C) Own Consumption

0.88

24.60

-

- 0.88 24.60

Sub-Total ( 4)

301.58

6,609.65

-

-

301.58

6,609.65

5. Derived Stock (3-4)

96.61

872.87

15.74

- 80.87 872.87

6. Measured Stock

83.95

737.69

15.74

- 68.21 737.69

7. Difference (5-6)

12.66

135.18

-

-

12.66

135.18

8. Break-up of Difference:

(A) Excess within 5%

0.02

0.45

-

- 0.02 0.45

(B) Shortage within 5%

2.17

22.25

-

- 2.17 22.25

(C) Excess beyond 5% - -

-

-

(D) Shortage beyond 5%

10.51

113.38

-

- 10.51 113.38

9. Closing stock adopted

86.10

759.49

15.74

-

70.36

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

116



NOTE - 16

TRADE RECEIVABLE

₹ in Crores

As at

As at

31.03.12

31.03.11

Debts outstanding for a period exceeding six months

from the due date

Secured Considered Good


196.99

171.49

Doubtful

469.64

361.67

666.63

533.16

Less : Provision for bad & doubtful debts

469.64

361.67

196.99

171.49

Other Debts

Secured Considered Good

6.53

29.52


748.20

417.13

Doubtful

198.04

151.66

952.77

598.31

Less : Provision for bad & doubtful debts

198.04

151.66

754.73

446.65

Total

951.72

618.14

Note

CLOSING BALANCE


DURING

CURRENT PERIOD

PREVIOUS PERIOD

CURRENT PERIOD

PREVIOUS PERIOD

Due by the Companies under the same management( With name of the Companies) Nil Nil Nil Nil

Due by the parties in which the Director(s) of company is /are interested Nil Nil Nil Nil

117



NOTE - 17

CASH & BANK BALANCES

₹ in Crores

As at

As at

31.03.12

31.03.11

Cash & Cash Equivalents

Balances with Scheduled Banks

- SBI Dividend Account(unpaid/unclaimed Dividend Account)

- In Deposit Accounts with matuirity upto 3 months 202.20

251.28

- In Current Accounts 483.28

8.27

- In Cash credit Accounts

Balances with Non - Scheduled Banks

In Account with Banks outside India

Remittance - in transit

Cheques, Drafts ,Stamps on hand 0.19

0.03

Cash on hand 0.34

0.33

Deposit with Scheduled Banks under Shifting and Rehabilitation Fund Scheme with matuirity upto 3 months

-

-

Other Bank Balances

Balances with Scheduled Banks

- In Deposit Accounts with matuirity more than 3 months

1,416.85

991.07

-

-

Deposit with Scheduled Banks under Shifting and Rehabilitation Fund Scheme with matuirity more than 3 months

-

-

Deposit with Scheduled Banks under Mine Closure Plan Scheme

-

-

-

-

Total

2,102.86

1,250.98

Maximum amount outstanding with Banks other than Scheduled Banks at any time during the year Nil

Nil

Note:

1. Deposit Account includes Fixed Deposit of Rs.1.68 Crore pledged with Bank as margin money

for Bank guarrantee.

2. Deposit Account includes Fixed Deposit of Rs.115.35 crores pledged with SBI Dhanbad for

availing overdraft facility of Rs.100 crore.

118



NOTE - 18

SHORT TERM LOANS & ADVANCES

₹ in Crores

As at

As at

LOANS

31.03.12

31.03.11

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

ADVANCE TO SUPPLIERS

For Revenue : Secured Considered Good


9.41

6.31

Doubtful

16.55

16.63

25.96

22.94

Less : Provision for Doubtful Advances

16.55

16.63

9.41

6.31

ADV PAYMENT OF STATUTORY DUES

SalesTax : Secured Considered Good


51.41

39.57

Doubtful

0.08

0.08

51.49

39.65


0.08

0.08

51.41

39.57

Advance Income Tax / Tax Deducted at Source

44.03

32.35


44.03

32.35

Others : Secured Considered Good


1.25

0.66

Doubtful

0.58

0.52

1.83

1.18


0.58

0.52

1.25

0.66

Advance to Employees : Secured Considered Good


99.58

8.33

Doubtful

0.40

0.40

99.98

8.73


0.40

0.40

99.58

8.33

Current Acct with CIL other Subsidiaries of CIL

Loan Account with Subsidiaries:Secured Considered Good


Doubtful

-

-

Less : Provision for Doubtful Loans

-

-

119

Claims Receivables : Secured Considered Good


30.87

13.79

Doubtful

3.82

3.82

34.69

17.61


3.82

3.82

30.87

13.79

Prepaid Expenses

0.49

3.76

TOTAL

237.04

104.77

Note

CLOSING BALANCE


DURING

CURRENT PERIOD

PREVIOUS PERIOD

CURRENT PERIOD

PREVIOUS

PERIOD

Due by the Companies under the same management

( With name of the Companies)

Eastern Coalfields Ltd. - - 0.14 0.20

Central Coalfields Ltd. - - 0.12 0.08

Western Coalfields Ltd. - - - 0.02

South Eastern Coalfields Ltd. - - 0.96 0.24

Mahanadi Coalfields Ltd. - - 1.01 0.06

CMPDI Ltd. - - 0.59 1.52

Northern Coalfields Ltd. - - 0.35 0.13

Due by the parties in which the Director(s) of Co. is/are interested

120



NOTE -19

OTHER CURRENT ASSETS

₹ in Crores

As at

As at

31.03.12

31.03.11

Interest Accrued

- Investment

2.65

3.24

- Deposit with Banks

65.45

55.85

- Others

-

-

Ex Owner's Account

1.85

1.85

Other Advances

90.35

73.58

Less: Provision

0.36

0.01

89.99

73.57

DEPOSITS

Deposit for Customs Duty, Port Charges etc.

-

-

Deposit with Coal India Limited

-

-

Deposit for Royalty, Cess & Sales Tax

18.86

17.27

Less: Provision

-

-

18.86

17.27

Others

0.05

11.47

Less: Provision 0.05

0.05

-

11.42

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

-

-

Less: Provision

-

-

-

-

Other Receivables

1.27

0.30

Less: Provision

-

-

1.27

0.30

TOTAL

180.07

163.50

121


NOTE TO PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31.03.12

NOTE - 20

Revenue From Operations

₹ in Crores

For the Year

For the Year

ended 31.03.12

ended 31.03.11

Sale of Coal, Coke etc. 8,583.87

6,951.77

Less : Excise Duty 377.56

29.08

Less : Levies

Royalty 465.50

424.46 Cess on Coal 4.22

2.08

Stowing Excise Duty 26.79

25.83 Central Sales Tax 126.36

105.02

Clean Energy Cess 133.94

97.45 State Sales Tax/VAT 118.26

67.78

Other Levies 50.76

42.96

TOTAL LEVIES 1,303.39

794.66

Revenue From Operations (NET SALES*) 7,280.48

6,157.11

122



NOTE - 21

OTHER INCOME

₹ in Crores

For the Year

For the Year

ended 31.03.12

ended 31.03.11

Income From Long Term Investments Dividend from Joint Ventures -

-

Dividend from Subsidiaries Interest from: Govt. Securities(8.5% Tax Free Special Bonds) (Trade) 4.42

5.59

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

Income From Current Investments

Dividend from Mutual Fund Investments -

- Interest from: Govt. Securities(8.5% Tax Free Special Bonds) (Trade) 1.18

1.18

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

-

- Income From Others

Interest (Gross)

From Deposit with Banks 138.14

84.30 From Loans and Advances to Employees 0.08

0.06

From Income Tax Refunds -

- From Coal India -

-

Others -

-

Apex Charges Subsidy for Sand Stowing & Protective Works 8.03

5.52

Profit on Sale of Assets 0.04

0.69 Recovery of Transportation & Loading Cost 156.90

150.17

Gain on Foreign exchange Transactions -

- Exchange Rate Variance -

-

Lease Rent 6.18

- Liability Write Backs 182.57

16.16

Guarantee Fees from Subsidiaries -

- Other non-operating Income 36.61

39.65

TOTAL 534.15

303.32

123



NOTE - 22

₹ in Crores

COST OF MATERIAL CONSUMED

For the Year

For the Year

ended 31.03.12

ended 31.03.11

Explosives 151.32

129.99

Timber 10.68

12.04

P O L 163.64

145.21

HEMM Spares 71.49

78.35 Other Consumable Stores & Spares 70.72

80.28

TOTAL 467.85

445.87

.

124



NOTE - 23

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

₹ in Crores

For the Year

For the Year

ended 31.03.12

ended 31.03.11

Closing Stock of Coal / Coke 1,377.86

1,422.30

Less: Deterioration of Coal/Coke 431.07

396.36 Total (1) 946.79

1,025.94

Opening Stock of Coal/Coke 1,422.46

1,251.65

Less: Deterioration of Coal/Coke 396.36

398.95 Total (2) 1,026.10

852.70

A) Change in Inventory of Closing Stock (2-1) 79.31

(173.24)

Cl. Stock of Workshop made F/goods and WIP -

-

Less: Provision -

- Total (3) -

-

Opening Stock of Workshop made finished goods and WIP -

-

Less: Provision -

- Total (4) -

-

B) Change in Inventory of Closing Stock of workshop (4-3) -

-

Press Closing Job

i)Finished Goods -

-

ii)Work in Progress -

- Total (5)

Less: Press Opening Job

i)Finished Goods -

-

ii)Work in Progress -

- Total (6)

C) Change in Inventory of Closing Stock of Press Job made finished goods and WIP(6-5) -

-

Closing Stock of Medicines ( Central Hospital)(7) 0.30

0.30

Less Op. Stock of Medicines ( Central Hospital) (8) 0.30

0.29 D) Change in Inventory of Stock of Medicines at Central Hospitals (8-7) -

(0.01)

Total Change in Inventory of Stock( A+B+C+D ) 79.31

(173.25)

125



NOTE - 24

EMPLOYEE BENEFIT EXPENSES

₹ in Crores

For the Year

For the Year

ended 31.03.12

ended 31.03.11

Salary, Wages, Allowances ,Bonus & Benefits 2,650.72

2,179.59 Exgratia 145.39

117.63

PRP 71.33

69.25 Contribution to P.F. & Other Funds 275.82

278.04

Gratuity 823.35

378.22 Leave Encashment 99.89

140.48

VRS -

- Workman Compensation 2.01

1.55

Other Employee Benefits 142.50

70.59

TOTAL 4,211.01

3,235.35

126



NOTE - 25

₹ in Crores

WELFARE EXPENSES

For the Year

For the Year

ended 31.03.12

ended 31.03.11

Medical Expenses 26.80

22.61

Medical Exp. for retired Employees 2.70

1.87 Grants to Schools & Institutions 1.06

2.87

Sports & Recreation 0.41

0.40 Canteen & Creche 0.28

0.31

Power - Township 99.89

76.57 Hire Charges of Bus, Ambulance etc. 4.38

3.87

CSR Expenses -

1.98 Environmental Expenses 1.55

1.22

Tree Plantation 1.02

0.22 Other Expenses 26.38

26.31

TOTAL 164.47

138.23

127



NOTE - 26

₹ in Crores

REPAIRS

For the Year

For the Year

ended 31.03.12

ended 31.03.11

Building 31.58

31.14 Plant & Machinery 45.15

34.76

Others 3.78

4.15

TOTAL 80.51

70.05

128



NOTE - 27

₹ in Crores

CONTRACTUAL EXPENSES

For the Year

For the Year

ended 31.03.12

ended 31.03.11

Transportation Charges : - Sand 3.07

3.06

- Coal & Coke 99.81

86.46 - Stores & Others etc. -

0.02

Wagon Loading 14.69

14.66 Hiring of P&M 519.72

512.58

Other Contractual Work 28.18

26.57

TOTAL 665.47

643.35

129



NOTE - 28

₹ in Crores

FINANCE COSTS For the Year

For the Year

ended 31.03.12

ended 31.03.11

(A) INTEREST

Deferred Payments -

- Bank Overdraft / Cash Credit 0.29

1.64

Interest on IBRD & JBIC Loan -

- CIL Fund Loan Interest 21.59

37.86

Interest to Subsidiaries -

- Others 0.96

2.51

TOTAL(A) 22.84

42.01

(B) FINANCIAL / COMMITMENT CHARGES

Guarantee Fees on (IBRD & JBIC) Loan -

-

Other Expenses / Bank Charges* -

-

TOTAL(B) -

-

TOTAL (A+B) 22.84

42.01

130

BHARAT COKING COAL LIMITED NOTE TO PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31.03.12

NOTE - 29

₹ in Crores

PROVISIONS

For the Year

For the Year

ended 31.03.12

ended 31.03.11

(A) PROVISION MADE FOR Doubtful debts 238.73

-

Doubtful advances & Claims 0.33

- Foreign exchange Transaction -

-

Stores & Spares 2.98

0.24

Reclamation of Land/Mine Closure Expenses 40.09

17.65

Surveyed of Fixed Assets/Capital WIP 0.34

0.38 Others

-

TOTAL (A) 282.47

18.27

(B) PROVISION WRITTEN BACK Doubtful debts 84.38

-

Doubtful advances & Claims -

- Foreign exchange Transaction -

-

Stores & Spares

-

Reclamation of Land/Mine Closure Expenses -

16.85

Surveyed of Fixed Assets/Capital WIP

- Others -

-

TOTAL (B) 84.38

16.85

TOTAL ( A-B ) 198.09

1.42

131

BHARAT COKING COAL LIMITED NOTE TO PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31.03.12

NOTE - 30

₹ in Crores

WRITE OFF

For the Year

For the Year

ended 31.03.12

ended 31.03.11

Doubtful debts 37.57

-

Doubtful advances -

0.03 Others -

-

TOTAL 37.57

0.03

132

BHARAT COKING COAL LIMITED NOTE TO PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED

31.03.12

NOTE - 31

₹ in Crores OTHER EXPENSES For the Year

For the Year

ended 31.03.12

ended 31.03.11

Travelling expenses - Domestic 7.83

8.14

- Foreign 0.07

0.16 Training Expenses 2.32

2.67

Telephone & Postage 4.19

3.01 Advertisement & Publicity 7.58

6.88

Freight Charges 13.70

12.82 Demurrage 28.64

15.93

Donation/Subscription 0.04

0.01 Security Expenses 133.04

131.56

Service Charges of CIL -

14.50 Hire Charges 15.24

10.31

CMPDI Expenses 39.40

34.31 Legal Expenses 1.27

1.78

Bank Charges 0.17

0.17 Guest House Expenses 0.32

0.27

Consultancy Charges 0.14

0.39 Under Loading Charges 77.46

86.24

Loss on Sale/Discard/Surveyed of Assets 0.34

0.20 Auditor's Remuneration & Expenses

- For Audit Fees 0.13

0.11 - For Taxation Matters 0.01

0.01

- For Company Law Matters -

- - For Management Services 1.36

0.38

- For Other Services 0.20

0.12 - For Reimbursement of Expenses 0.08

0.06

Rehabilitation Charges -

- Royalty & Cess 125.16

109.03

Central Excise Duty 10.80

69.84 Rent 0.33

0.61

Rates & Taxes 2.24

3.78 Insurance 0.59

0.06

Loss on Exchange Rate Variance -

1.83 Lease Rent -

-

Rescue/Safety Expenses 2.04

1.29 Dead Rent/Surface Rent 1.23

0.15

Siding Maintenance Charges 5.88

5.14 Land/Crops Compensation 0.21

0.55

Misceleneous Expenses 21.14

21.82

TOTAL 503.15

544.13

133



NOTE -32

EXCEPTIONAL ITEMS

₹ in Crores

PRIOR PERIOD ADJUSTMENT

For the Year

For the Year

ended 31.03.12

ended 31.03.11

(A) Expenditure

Sale of Coal & Coke -

- Stock of Coal & Coke -

-

Other Income -

- Consumption of Stores & Spares -

-

Employees Remuneration & Benefits -

- Power & Fuel -

-

Welfare Expenses -

- Repairs -

-

Contractual Expenses -

- Other Expenditure -

1.70

Interest and other financial charges -

- Depreciation -

-

TOTAL (A) -

1.70

(B) Income

Sale of Coal & Coke -

- Stock of Coal & Coke 0.16

-

Other Income -

- Consumption of Stores & Spares 1.71

1.31

Employees Remuneration & Benefits -

- Power & Fuel -

-

Welfare Expenses -

- Repairs -

-

Contractual Expenses -

6.30 Other Expenditure -

-

Interest and other financial charges -

- Depreciation -

-

TOTAL (B) 1.87

7.61

TOTAL ( A-B ) (1.87)

(5.91)

134

Note No. 33 A. SIGNIFICANT ACCOUNTING POLICIES 1.0 Accounting Convention: Financial statements are prepared on the basis of historical cost and on accrual basis following going concern concept, accounting standards' and generally accepted accounting principles except otherwise stated elsewhere. 2. 0 Basis of Accounting: All expenses and incomes are booked initially in the natural heads of accounts and then transferred to functional heads wherever required. 3.0 Subsidies/Grants from Government: 3.1 Subsidies/Grants on Capital Account are deducted from the cost of respective assets to which they relate. The unspent amount at the year end, if any, is shown as Current Liabilities. 3.2 Subsidies/Grants on Revenue Account are credited to Profit & Loss Account under the head Other Receipts and the expenses are debited to the respective heads. 4.0 Fixed Assets: 4.1 Land includes cost of acquisition, cash rehabilitation expenses and re-settlement cost incurred for concerned displaced persons. All other expenditure incurred as compensation in lieu of employment or where employment itself is given or where a monthly fixed sum of money is paid for foregoing employment etc. the expenditure are treated as revenue expenditure. 4.2 Plant & Machinery: Plant and Machinery includes cost and expenses incurred for erection/installation and other attributable costs of bringing those assets to working conditions for their intended use. 4.3 Railway Siding: Pending commissioning, payments made to the railway authorities for construction of railway siding are shown under capital Work-in-Progress. 4.4 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. Projects/mines under development are brought to revenue:-

135

(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 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,

4.5 Prospecting & Boring and other Development Expenditure: The cost of exploration and other development expenditure incurred in one "five

year" plan period will be kept in Capital work-in-progress till the end of subsequent two "five year" plan periods for formulation of project before it is written off except in the case of Blocks identified for sale or proposed to be sold to outside agency will be kept in Capital W.I.P. till finalisation of sale.

5.0 Investments: Investments are stated at cost. 6.0 Inventories: 6.1 Book Stock of Coal/Coke is considered in the Accounts where the variance

between book stock and measured stock is upto +/- 5% and in cases where the variance is beyond +/- 5% the measured stock is considered. Such stock are valued at Net Realizable Value or cost whichever is lower.

6.1.1 Provision for deterioration of coal & coke etc.has been made wherever

warranted due to unmoved closing stock of coal/coke etc. 6.1.2 Year end stock of Middlings of Washeries is valued at net realizable

Value and stock of slurry is valued on e-auction price for the quantity booked by customers through e-auction sale and the balance quantity as per notified price.

6.1.3 Stock of Raw Coal at Washeries are valued at average transfer price

plus applicable transport charges. No provision for deterioration is to be made on this stock.

6.2 Stock of stores & Spare parts at Central & Area Stores are valued at cost calculated on the basis of weighted average method. The year-end inventory of Stores & Spare Parts lying at Collieries/Sub-Stores/consuming centres, initially charged off, at issue price of Area Stores, Cost/estimated cost. Workshop jobs including work-in-progress are valued at cost.

6.2.1 Stores & Spare Parts include loose tools. 6.2.2 Provision are made at the rate of 100% for unserviceable

damaged and obsolete stores and 50% for stores & spares not moved for 5 years.

136

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

specified in Schedule XIV of the Companies Act, 1956 (as amended) except for telecommunication equipments, HEMM, SDL & LHD Depreciation on such equipments is charged over the technically estimated life, at higher rates, viz; @ 15.83% and @ 10.55% on telecommunication equipments and on certain equipments/HEMM at the rate of 11.88%, 13.57% & 15.83% as applicable, LHD @ 15.83% and SDL @ 19%.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 Assets attracting 100% rate of depreciation on which 100% depreciation is provided in the year of capitalization itself.

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.

7.4 Assets attracting 100% depreciation, other than items costing Rs.5000/- are

taken out from the Accounts after expiry of two years following the year in which these are fully depreciated.

8.0 Balance with Coal India limited (Holding Company) : Amount due to coal India Limited on account of Loan after adjustment for

conversion to equity or vice-versa from time to time is shown as Unsecured Loan. Amount due/receivable for revenue nature transaction in Current Account is shown under Current Liabilities/Current Assets.

9.0 Apex Office Charges and Interest to Holding Companies :

9.1 Apex Office Charges as charged by Holding Company is allocated to revenue mines on the basis of Coal Production.

137

9.2 Interest on Loans from Coal India Limited is accounted for as per advice from CIL/ascertained at company level. Interest is allocated to the units on the utilization of loan fund by the respective unit.

10. Expenses/Income above Rs. 5 (five) lakhs in each case relating to Prior Period

which arises as a result of errors & omissions in the preparation of Accounts of earlier years are treated as Prior Period Expenses/Income.

11.0 Overburden Removal (OBR) Expenses :

11.1 In Opencast mines with rated capacity of 1 million tones and above, the cost of OBR is charged on technically evaluated average ratio (Coal:OB) at each mine with due adjustment for advance stripping and ratio variance account after the mines are brought to revenue. Net of balance of advance stripping and ratio variance at the end of the year is shown as cost of removal of Overburden.

The reported quantity of overburden is considered in the Accounts where the variance between reported quantity and measured quantity is within the permissible limits detailed hereunder:

Annual Quantum of OBR of the Mine.

Permissible limits of variance (whichever is less) % Quantum (in Mill. Cu. Mtr.)

Less than 1 Mill. CUM.

+/- 5%

0.03

Between 1 and 5 Mill. CUM

+/- 3%

0.20

More than 5 Mill. CUM

+/- 2%

(-)

If the variance between reported quantity and measured quantity is more than the above tolerance limit measured quantity will be considered in the Accounts.

138

Note No. 34

BHARAT COKING COAL LIMITED ADDITIONAL NOTES ON THE ACCOUNTS

1. Long Term Borrowing (Note No. 3): Coal India Limited had converted the loan of Rs. 1083.30 crore as interest free loan w.e.f. 01.04.2005. Hence, no interest has been provided in the Accounts. 2. Long Term provisions as on 31.03.2012 (Note No. 5, 10 & 12) :

[ Rs. in crores]

Provisions Opening Balance

Addition during the

Year

Write Back /Adj during the year

Closing Balance

For Proposed Dividend For Corporate Dividend Tax For Gratuity 1395.17 476.81 1871.98 For Leave Encashment 271.10 32.56 303.66 For Other Employee Benefits 151.84 91.16 0.08 242.92 For Income Tax For Forex Transactions (Marked to Market) Cost of Stowing Lag OBR Adjustment Account 9.30 47.72 - 57.02 Mines Closure 17.65 40.09 - 57.74 Bad & Doubtful debts Provision for Doubtful Advances & Claims 5.86 - - 5.86

CWIP 31.09 0.34 0.05 31.38 3. Other Current Liabilities (Note – 8) 3.1 Price of rejects and Power tariff with DLF are not yet finalized and the same are subjudice,

one case at Dhanbad Court and one at Appellate Tribunal for Electricity, New Delhi. The interest receivable/payable at this stage is not accounted for. However, interest due to delay in payment to DLF has been provisionally worked out Rs 14.54 Crores upto 31.03.2012.

3.2 Bazaar fees collected on sale of coal/coke vide Gazette Notification No.34 dated 18th

Jan’2006 but the same has not been deposited to the appropriate authority as the matter is subjudice at Jharkhand High Court under case no.6507 of 2006. The accumulated liability as on 31.03.2012 is Rs 214.81 Crores.

139

4. Short term provisions as on 31.03.2012( Note No. 9, 16, 18 & 19)

[ Rs. in Crores]

Provisions Opening Balance

Addition during the

Year

Write back/ Adj during The year

Closing Balance

For Proposed Dividend For Corporate Dividend Tax For Gratuity 363.95 305.37 243.07 426.25 For Leave Encashment 67.70 67.32 60.51 74.51 For Other Employee Benefits 285.57 216.72 112.23 390.06 For Income Tax For Forex Transactions (Marked to Market) Cost of Stowing Lag OBR Adjustment Account Land Reclamation Bad & Doubtful debts 513.33 233.54 84.38 662.49 Provision for Doubtful Advances & Claims 21.50 0.02 0.04 21.48

CWIP Excise Duty on Closing Stock of Coal

69.84

10.77 80.61

5. FIXED ASSETS (Note-10) 5.1 TRANSFER AND ACQUISITION: The formal "Transfer Deeds/Agreements" for Assets and Liabilities transferred to the Company by the Govt. of India on Nationalization of Coal Mines and also the Assets and Liabilities transferred and taken over by the Company in respect of Coal Mines Labour Welfare Organization, Central Hospital along with four other Hospitals, Mines Rescue Stations of Govt. of India and four Washeries of SAIL, erstwhile Coal Board and Central Jharia Projects are in the process of finalization and execution. 5.2 FIXED ASSETS:

5.2.1 Registration of "Title Deeds/Lease Agreements" for properties and land acquired on Nationalization of Coal Mines and also for land acquired through land acquisition proceedings are in process in some cases. 526 acres of land owned by the Company are critically encroached area. 5.2.2 Assets transferred to and taken over by the Company in respect of Mines Rescue Stations and Coal Mines Labour Welfare Organization have not been accounted for as no Book Value, was made available to the Company on transfer of the said Units. 5.2.3 Assets taken over on Nationalization :- Rs. 1145.81 lakhs being gross value of Assets including land valuing Rs.88.30 lakhs (quantitative and value wise details of which are not available) taken over by the Company in respect of entities covered under Coal Mines Nationalization Act, 1971 and on which depreciation has been fully provided for in the Account except land.

140

5.2.4 “Fixed Assets" costing Rs.1.00 lakhs and above in each case have been physically verified by the Company at the end of Financial year. 5.2.5 Surveyed off Assets in Stores have been shown in Fixed Assets schedule at Net Book Value as item wise Net Realizable Value could not be determined.

5.2.6 Impairment of Assets-Accounting Standard 28-The concept of this accounting standard is to represent the assets in the financial account at their Fair Value. This concept has already been applied to current assets like Inventory, Debtors, etc. where the carrying cost or realizable value whichever is lower is depicted.

In case of Fixed Assets, they are carried at the historical cost less depreciation which may not represent the fair asset value which may be lower than the net realizable value due to obsolescence/impairment. As is evident in Para 5 of AS-28, impairment should be identified with individual assets. In a loss making mine if a new machine is installed to maintain the production with a negative cash flow it does not necessarily mean that the machine is impaired.

Para 6 of the standard prescribes that an enterprise should assess whether there is any indication that an asset may be impaired.

Para 7 makes it clear that if there is no indication of financial loss, the standard does not require the undertaking to make a formal estimate of impairment. While applying impairment to asset test the assets carried by the Company can be broadly classified into the following heads:-

(a) Land (b) Building (c) Plant & Machinery (d) HEMM (e) Exploration, Boring & Development. (a) Land

Generally there is no impairment loss on account of land. Land does not suffer

damage over a period of time and as such there is no impairment on this account. Depreciation of land due to open cast mine has been dealt with under separate

Accounting Standard.

(b) Building

The same applies to Buildings also unless it is damaged by an act. In such cases necessary provisions are made in the books of Accounts. The Building attached to a colliery making loss does not necessarily mean the Building has lost its value. The mine can be closed, the workers can be transferred to other profitable cash generating units and they can continue to reside in the said building itself. In such an event, there is no need to make provisions towards impairment of loss because cash generating unit shows negative result.

(c) & (d) Plant & Machinery, HEMM

141

Plant & Machinery is used both in Opencast and Underground Mines and HEMMs are used exclusively in Opencast Mines. These are movable items and can be shifted from profit making units to loss making units and vice-versa. Just because it is under the roll of a loss making unit it does not make the machines obsolete/impaired. Even by referring to RBI Index it normally shows that there is no downward trend in the price of machinery. As such, it is not prudent to consider prima-facie impairment unless it is obsolete/damaged, etc. for which provisions are invariably made by identifying these equipment.

(e) Exploration, Boring & Development

Costs related to these activities are primarily determinant for viability of each unit

since mining activities begin with the exploration of an area. If the exploration does not succeed, such expenses are written off as a revenue expenditure.

For Areas incurring heavy losses the primary indication is present. The impairment test in line with the general principle shall be applied for Prospecting, Boring & Development cost. On the ground of prudence, for loss making Areas written down value on Prospecting, Boring and Development may be considered as impaired.

Keeping the above facts in mind, only Prospecting, Boring and Development expenses have been considered for provisioning towards impairment of assets as per AS-28 of ICAI.

5.3 CAPITAL WORK-IN-PROGRESS (Note-10): 5.3.1 "Prospecting & Boring" and also Development shown under Capital Work-in-Progress

mostly relates to jobs awaiting completion.

5.3.2 Provision has been made on Plant & Machinery which have not been put to use for more than three years and on incomplete civil jobs lying in capital work-in-progress for more than four years at the rates of depreciation which would have been otherwise applicable to such items.

5.3.3 "A" type Miners’ Quarters at Bhimkanali Township amounting to Rs. 218.69 lakhs

are in the process of completion. Since the jobs are in incomplete stage for a long period, a provision for Rs 50.76 lakhs have been made in the Accounts as per rate of depreciation applicable to civil jobs.

6. INVENTORIES ( NOTE-15)

6.1 Coal Stock as on 31.03.2012 has been valued at Net Realisable Value or cost whichever is lower. 6.2 Due to conversion to Gross Calorific Value (GCV) System of pricing from the earlier system of Useful Heat Value (UHV), the Closing Stock of Coal increased by Rs. 13.05 Crore.

The apparent net shortages/surplus of Coal & Coke etc. found on physical verification beyond +/- 5% compared to Book Stock are disclosed hereunder (Ref. Accounting Policy No.6) :-

Product Quantity

(lakh tonne) Value

(Rs.in crore) Coal (Shortage) 10.51 113.38 Hard Coke (Shortage) 0.00012 0.0004

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The values stated above are arrived at on the same basis as taken for valuation of "Closing Stock" as per Accounting Policy No. 6.1. Out of 10.51 Lakh Tonne of shortage of coal, BCCL Board approved the write off proposal of 191269 tonne of ROCP (Kustore Area) and 370164 tonne of Kuya OCP (Bastacolla Area) in its 282nd Board Meeting held on 07.11.2011 with directive to forward the proposal of write off to CIL for approval of CIL Board. Further, BCCL Board in its 283rd Board Meeting held on 04.02.2012 approved the write off proposal of 483190 tonne of ROCP (Kustore Area).

6.3 PARTICULARS OF FINISHED STOCK: Qty. in Lakh Tonne & [ Rs. in Crores]

Raw Coal Washed/Deshaled Coal Other Products Total Coking Non-Coking Coking Non-Coking

Qty Value Qty Value Qty Value Qty Value Qty Value Qty Value Opening Stock (Audited

80.73 752.61 15.39 97.64 1.41 75.02 0.08 0.75 71.58 496.28 169.19 1422.30

Less: Non-vendable Coal

9.78 --

5.96 -- -- -- -- -- -- -- 15.74 --

Opening Vendable Stock (Audited)

70.95 752.61 9.43 97.64 1.41 75.02 0.08 0.75 71.58 496.28 153.45 1422.30

Adjusted Opening Stock (Vendable)

70.95 752.61 9.43 97.64 1.41 75.02 0.08 0.75 71.58 496.44 153.45 1422.46

Production 272.37 6120.97 29.70 511.30 14.21 1164.88 -- -- 23.58 529.95 339.86 8327.10

Offtake -- -- -- -- -- -- -- -- -- -- -- -- (A) Outside Despatch

238.77 5123.32 29.15 516.31 14.27 1172.40 -- -- 22.04 468.45 304.23 7280.48

(B) Coal feed to Washeries

32.78 945.42 -- -- -- -- -- -- -- -- 32.78 945.42

(C) Own Consumption

0.78 23.34 0.10 1.26 -- -- -- -- 7.99 7.82 8.87 32.42

Closing Stock 70.99 781.50 9.88 91.37 1.35 67.50 0.08 0.75 65.13 550.12 147.43 1491.24

Less: Shortage() /Surplus

(10.51) (113.36) -- (0.02) -- -- -- -- -- -- (10.51) (113.38)

Closing Stock 60.48 668.14 9.88 91.35 1.35 67.50 0.08 0.75 65.13 550.12 136.92 1377.86

6.4 Inventories do not include 0.91 lakhs tonnes of Slurry stock flown out of the Washery premises and lying on land not belonging to the Company (Dugda Washery 0.54 lakh tonnes and Barora Washery 0.37 lakh tonnes).

6.5 Stock of reject as on 31.03.2012 at Bhojudih Coal Washery includes 2.29 lakh MT (Measured Stock)/Washery Grade-II.

7. CASH & BANK BALANCE (Note-17):

An amount of Rs. 150.12 lakh was realised from the explosive suppliers for the period from 01.03.2006 to 30.06.2006 on account of price differences and the same has been kept under the head “Cash & Bank Balance” in Note No. 17. In light of the decision given by the Hon’ble High Court, Kolkata, the amount was deposited as Fixed Deposit with IDBI Bank, Dhanbad Branch @ 7.25% p.a. After the maturity of the said deposit ,the maturity amount of Rs. 173.32 lakh has been reinvested on 31.10.2011 in 9.60% interest bearing FD with Andhra Bank, Dhanbad. The difference between acrrued interest @ 7.25% p.a. and @ 9.60% respectively on Fixed Deposit and interest @ 12% p.a. which might be payable as per High Court order amounting to Rs. 32.91 lakh has been considered as contingent liability upto 31.03.2012.

8. SHORT TERM LOANS & ADVANCES (NOTE-18) Loans & Advances include Rs 51.49 Crores paid towards Advance Sales Tax and also the

stayal amounts against cases under appeal.

143

9. OTHER CURRENT ASSETS (NOTE-19)

Loans & Advances includes Rs.45.00 crores paid to B.S.E.B under protest during the year 1998-99.

PROFIT & LOSS ACCOUNT : 10. REVENUE FROM OPERATION (Note -20)

10.1 Sale amount appears after netting off actual deductions by the consumers on account of grade slippage etc. 10.2 Due to conversion to Gross Calorific Value (GCV) System of pricing w.e.f. 01.01.2012 from the earlier system of Useful Heat Value (UHV), the Gross Sale Value, Levies & Net Sale Value increased by Rs. 63.25 Crores, Rs. 7.46 Crores & Rs. 55.79 Crores respectively.

11. OTHER INCOME (Note-21) :

11.1 House Rent receivable from the tenants of Bhuli Town Administration is accounted for on cash basis as the matter is sub-judice.

11.2 As per lease agreement dated 18th March 2010, lease rent @ Rs. 55 lakh/month from 23rd April, 2011 has been booked in the account for leased out Captive Power Plant of Western Jharia Area to M/s OSD Coke (Consortium) Private Limited. The lease is valid for 20 years. Details of the said Asset under lease is given below :-

(Rs. in lakhs) S.No. Particulars Gross

Block Current Year Dep.

Current year Impairment

Progressive Dep. as on 31.03.2012

Progressive Impairment as on 31.03.2012

1 Land 3.35 - - - - 2 Building Township 128.44 2.09 - 39.78 - 3 N.R. Building 709.24 23.67 - 582.24 - 4 Road/Culv. Factory

Area 26.67 0.89 - 16.93 -

5 Plant & Machinery 4645.94 - - 1888.87 2524.77 6 Furniture & Fitings 2.58 - - 2.45 - 7 Vehicle Others - - - - - 8 SOH Vehicle 3.44 - - 3.27 - 9 Development 3699.81 - - 1293.60 2406.21 TOTAL 9219.47 26.65 - 3827.14 4930.98

12. EMPLOYEES BENEFITS EXPENSES (NOTE-24)

12.1 The National Coal Wage Agreement (NCWA-IX) effective from 01.07.2011 has been finalized on 30th January, 2012 for Wage Board employees. Summarised position of financial impact of Pay Revision excluding gratuity impact for employees who retired during the period from 01.07.2011 to 31.03.2012 and the impact of actuarial liability is given below :- Impact of Pay Revision as on 31.03.2012 : Rs. 394.20 Crores Apart from the above, impact of gratuity for revision of salary and wages to be paid to the employees who retired during the period 01.07.2011 to 31.03.2012 works out to Rs. 39.79 Crores.

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Actuarial liability as on 31.03.2012 towards gratuity, earned leave encashment, life cover scheme and settlement allowance for non-executives includes the effect of wage revision of wage board employees over pre-revised wages, on the above benefits by Rs. 326.18 Crores, Rs. 35.23 Crores, Rs. 8.32 Crores and Rs. 53.46 Crores. Like earlier year, the year end liability of certain other employee benefits like Gross Personal Accident Insurance Scheme, Leave Travel Concession, Medical Benefits for Retired Executives, Compensation to dependants in case of mine accidental death are valued on actuarial basis.

Actuarial Liability as on 31.03.2012 under different heads has been enhanced on proportionate basis because of difference in manpower considered by Actuary and the actual manpower on roll of BCCL as on 31.03.2012.

Total Liability as on 31.03.2012 based on valuation made by the Actuary, details of which are mentioned below, is Rs. 2676.61 Crores, which includes the impact of Rs. 423.19 Crores towards additional actuarial provision made for revision of pay and benefits over pre-revised Salary & wages. The Actuarial Liability as on 31.03.2012 is as under:-

(Rs. in Crores)

Head

Opening Actuarial

Liability as on

01.04.2011

Incremental Liability based on

pre-revised salary

Additional Impact due to revision of pay and

benefits

Closing Actuarial

Liability as on

31.03.2012 Gratuity 1653.52 192.12 326.18 2171.82 Earned Leave 255.66 (4.75) 35.23 286.14 Half Pay Leave 51.48 6.18 - 57.66 Life Cover Scheme 9.52 (0.07) 8.32 17.77 Settlement Allowance (Executive)

0.85 (0.07) - 0.78

Settlement Allowance(Non-Executive)

0.00 0 53.46 53.46

Gross Personal Accident 0.20 0 - 0.20 Leave Travel Concession 32.26 7.45 - 39.71 Medical Benefit 2.42 2.54 - 4.96 Compensation to dependents in case of mine accidental death

43.83 0.28 - 44.11

TOTAL 2049.74 203.68 423.19 2676.61

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12.2 The disclosure as required under AS 15 (Revised) 2005 in respect of Actuarial gratuity and Leave encashment is placed below: A. Actuarial Valuation of Gratuity Liability as at 31.03.2012:

Table 1: Disclosure Item 120(c) Table showing Changes in present value of obligations:

(Rs. in lakh) As at 31/03/2012 Present Value of obligation at beginning of year 16535.21 Acquisition Adjustment 0 Interest Cost 12156.68 Past Service Cost 0 Current Service Cost 8876.90 Curtailment Cost 0 Settlement cost 0 Benefits paid 26787.00 Actuarial gain/loss on Obligations 52328.90 Present Value of obligation at end of year 211927.57

Table 2: DISCLOSURE ITEM 120(e)

Table Showing Changes in Fair Value of Plan assets: Not applicable as Scheme is unfunded

Table 3: DISCLOSURE ITEM 120(f)

Table showing Funded Status Not applicable as Scheme is unfunded.

Table 4:: DISCLOSURE ITEM 120(g)

Table showing Expense Recognized in Statement of Profit/Loss: (Rs. in lakh)

As at 31/03/2012 Current Service Cost 8876.90 Past Service cost 0 Interest Cost 12156.68 Expected Return on Plan asset 0 Curtailment Cost 0 Settlement cost 0 Actuarial gain/loss recognized in the year 52328.90 Expense Recognized in Statement of Profit/Loss 73362.48

Table 7:: DISCLOSURE ITEM 120(L) Table showing Actuarial Assumptions

As at 31/03/2012

Mortality Table LICI 1994-96 Superannuation age 60

Early Retirement & Disablement 10 per thousand P.A. 6 above age 45

3 between 29 and 45 1 below age 29

Discount Rate 8.0 Inflation Rate 6.25

Return on Asset 0.0 Remaining Working Life 10.0

FORMULA USED PROJECTED UNIT CREDIT METHOD

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Table 8:: DISCLOSURE ITEM 120(m) Not applicable as Scheme is not related to Medical cost

Table 9:: DISCLOSURE ITEM 120(n) Summary of last 4 Valuation Record

Amount for the Current and Previous four periods are as follows: (Rs. in lakh) Financial Year 2011-12 2010-11 2009-10 2008-09 2007-08 Defined benefit obligation

217182.00 165352.08 156593.19 153066.45 96419.00

Plan Assets 0 0 0 0 0 Surplus/deficit 0 0 0 0 0 Experience Adjustment on Plan Assets

0 0 0 0 0

Experience Adjustment on Plan Liabilities

0 0 0 0 0

Table 10: : DISCLOSURE ITEM 120(P) Movements in the liability Recognized in Balance Sheet

(Rs. in lakh) As at 31/03/2012

Opening Net Liability 0 Expenses as above 73362.48 Contributions 0 Closing Net Liability 73362.48 Closing Fund/Provision at end of year 211927.56

NOTE TO APPENDIX B OF AS15 (REVISED 2005)

AS THE SCHEME IS UNFUNDED CHARGES TO PROFIT /LOSS ACCOUNT

HAS BEEN BASED ON FOLLOWING ASSUMPTIONS :- (1)PREVIOUS OBLIGATION WAS PROVIDED FOR AT LAST ACCOUNTING DATE (2)BENEFIT TO EXITS HAS BEEN PAID TO DEBIT OF ABOVE PROVISION (3)CURRENT OBLIGATION WILL BE PROVIDED FOR AT CURRENT ACCOUNTING DATE

B. LEAVE ENCASHMENT ACTUARIAL VALUATION OF LEAVE ENCASHMENT BENEFIT (EL/HPL) AS AT 31.03.2012.

Table 1:: disclosure item 120(c)

Table Showing Changes in Present Value of Obligations: (Rs. in lakh)

As at 31/03/2012 Present Value of Obligation at Beginning of year 30713.91 Acquisition Adjustment 0 Interest Cost 2256.83 Past Service Cost 0 Current Service Cost 1287.91 Curtailment Cost 0 Settlement Cost 0 Benefits Paid 5007.00 Actuarial gain/loss on Obligations 3429.48 Present Value of Obligation at end of year 32681.14

147

Table 2:: DISCLOSURE ITEM 120(e) Table Showing Changes in Fair Value of plan assets:

Not applicable as Scheme is unfunded

Table 3: DISCLOSURE ITEM 120(f) Table showing Funded Status

Not applicable as Scheme is unfunded.

Table 4: : DISCLOSURE ITEM 120(g) Table showing Expense Recognized in Statement of Profit/Loss:


Current Service Cost 1287.91 Past Service cost 0 Interest Cost 2256.83 Expected Return on Plan asset 0 Curtailment Cost 0 Settlement cost 0 Actuarial gain/loss recognized in the year 3429.48 Expense Recognized in Statement of Profit/Loss 6974.23

Table 7: DISCLOSURE ITEM 120(L) Table showing Actuarial Assumptions

As at 31/03/2012

Mortality Table LICI 1994-96 Superannuation age 60

Early Retirement & Disablement 10 per thousand P.A. 6 above age 45

3 between 29 and 45 1 below age 29

Discount Rate 8.0 Inflation Rate 6.25

Return on Asset 0.0 Remaining Working Life 10.0

FORMULA USED PROJECTED UNIT CREDIT METHOD

Table 10 : DISCLOSURE ITEM 120 (P) Movements in the Liability Recognized in Balance Sheet :


Opening Net Liability 0 Expenses as above 6974.23 Contributions 0 Closing Net Liability 6974.23 Closing Fund/Provision at end of year 32681.14

NOTE TO APPENDIX B OF AS15 (REVISED 2005)

AS THE SCHEME IS UNFUNDED CHARGES TO PROFIT /LOSS ACCOUNT

HAS BEEN BASED ON FOLLOWING ASSUMPTIONS :-

(1) PREVIOUS OBLIGATION WAS PROVIDED FOR AT LAST ACCOUNTING DATE (2) BENEFIT TO EXITS HAS BEEN PAID TO DEBIT OF ABOVE PROVISION (3) CURRENT OBLIGATION WILL BE PROVIDED FOR AT CURRENT ACCOUNTING DATE

148

13. WELFARE EXPENSES (Note-25) As per CIL CSR policy, CIL is allocating 2.5% of retained profit of last year of CIL for execution of CSR activities in the state which is not covered by subsidiary company and also for supporting loss making company. CIL is considering BIFR subsidiaries as loss making subsidiaries even if they earned profit in the previous year till the Net Worth of subsidiaries become positive. Accordingly, expenditure incurred on CSR activities during financial year 2011-12 to the tune of Rs. 6.22 Crores has been transferred to CIL. 14. GENERAL:

14.1 Use of Estimate In preparing the financial statement inconformity with accounting principles generally

accepted in India, management is required to make estimates and assumptions that effect the reported amount of assets and liabilities and the disclosure of contingent liability as at the date of financial statements and amount of revenue expenses during the reported period. Actual results could differ from those estimates. Any revision of such estimate is recognized in the period the same is determined.

14.2 Earning per Share – The basic earnings per share (EPS) is computed by dividing the net profit after Tax for the year ended 31st March, 2012 by weighted average number of equity shares outstanding. For the purpose of calculating diluted EPS, net profit after tax upto 31st March, 2012 and the weighted average number of shares outstanding are adjusted for the effects of all dilutive potential equity shares :-

Particulars Current

Year Previous Year

Profit/(Loss) after tax ( Rs. in Crores) 668.94 1093.69 Profit attributable to equity share holders (Rs. in Crores)

668.94 1093.69

No. of Equity Shares for basic and diluted EPS (Nos.)

21180000 21180000

Nominal value of Equity Shares ( Rs.) 1000 1000 Basic & Diluted Earnings per Share (Rs.) 315.84 516.38

14.3 Accounting Standard 22- Taxes on income – The difference of deferred tax Assets arising on account of carried forward loss and deferred tax liability arising on account of depreciation, provisions and other misc. items, has not been considered in the Accounts in view of huge accumulated loss of Rs 5758.25 Crores. 14.4 The Company does not charge or pay any “Sales Tax” for store/equipment

transferred to/from other Subsidiaries of CIL, if any, as per legal opinion obtained.

14.5 Bank Guarantees, on fund base security etc. obtained by the Company from suppliers/contractors as security are not accounted for.

14.6 The Company has received JAP , SSRC/EMSC and R&D grant upto 31.03.2012 for Rs 11668.98 lakhs, Rs 9705.88 lakhs & Rs.175.00 lakhs respectively and total expenditure incurred against these are as follows:

(Rs. in Lakhs)

JAP scheme SSRC/EMSC Scheme

R&D

Capital 7220.72 3494.25 50.21 Revenue 331.79 540.77 38.88

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14.7 As required, the provisions of interest on delayed payment to Small & Medium Enterprise under the Micro, Small & medium Enterprises Development Act,2006, the Company has not received any memorandum as required to be filled by the supplier with the notified authorities under Micro, Small & Medium Enterprise Act claiming their status as Micro & Small Medium Enterprise. Consequently the amount payable to those parties during the year is not ascertainable.

14.8 The Present Status of BIFR:

BCCL was referred to BIFR as a sick company consequent upon its Net Worth becoming negative and was registered vide Reg. No. 504/95 dated 18.12.95.

With a capital restructuring by conversion of CIL loan for Rs. 996 Cr. Into Equity, the Net Worth of the Company was made positive and the Company came out of BIFR in December, 1997. However, after completion of Accounts for the year 1999-2000, the Net Worth of the Company again became negative. The Company was referred to BIFR and was registered as a Sick Company vides Registration No. 502/2001.

As directed, BCCL submitted its Revival Plan to BIFR as on 12.04.2004 for its consideration. Subsequently, after formation of BRPSE, BCCL submitted its Revival Plan to BRPSE in April’05 suitably modifying the Rehabilitation Plan submitted earlier to BIFR on 12.04.2004.

BRPSE recommended the Rehabilitation Plan of BCCL to BIFR for concurrence as

confirmed vide OM No. 38039/1/2008-CA-II (Pt-I) dated 03.10.2008 of Director MOC.

In its hearing held on 18.05.2009, BIFR directed BCCL to submit updated Revival Scheme/Proposal for revival of BCCL. Accordingly a Draft Rehabilitation Scheme (DRS) was submitted to BIFR vide ref. No. CMD: ES: F: BIFR: 09:771 dated 11.08.2009. The said Draft Rehabilitation Scheme has since been approved by BIFR as communicated by Bench Officer-II, BIFR on 28.10.2009 and the same has also been vetted by MOC, Govt. of India as communicated by Under Secretary to Govt. of India, MOC vide reference no. 13011/4/2004-CA-II (Vol. II) dt. 25.02.2010. A review hearing was held on 28.09.2010 on the progress of implementation of the Revival Plan. In the said hearing, the Company was directed by BIFR to continue to submit the compliance report(s) from time to time. The Company has been regular in submission of the said progress Report to BIFR with information to MOC. Against the projected Net Worth of (-) Rs. 5732 Cr., the net worth as on 31.03.2011 stood at (-) Rs. 4309 Cr.

Going Concern Concept:

In view of various reasons proposed in the Draft Rehabilitation Scheme for the survival and revival of the Company, the Management is of the opinion that by implementing rehabilitation scheme the Company is likely to make its net worth positive by 2013-14 while meeting all its financial obligation and as a result thereof the Company will continue its operation and will become viable in future. As such the Accounts of the Company have been prepared on the basis of “Going Concern Concept”.

14.9 Additional liabilities, if any, for Sales Tax, Royalty, Cess, Central Excise Duty, interest on delayed payment of TDS and other statutory taxes etc. are accounted for as and when assessment is completed in all respects and Appeal Cases, if any, are finally disposed off.

14.10 Various Certificate Cases are pending before Certificate Officer in District Mining Officer’s (D.M.O’s) Office in respect of Royalty on shortage of Stock of Coal at Areas.

150

Hon'ble Supreme Court has directed the D.M.O’s to quantify the demand for Royalty payable after determining shortages arising from inflation, pilferage, over reporting of production of Coal etc.

In view of above, direction of the Hon’ble Supreme Court the amount involved as per Certificate Case (Rs.13.42 crores) is yet to be revised/confirmed by the D.M.O. Hence the same has not been provided in the Accounts and the amount has been considered as contingent liabilities. 14.11 Expenditure of Kustore Area is under investigation by different authorities. Bills lying amounting to Rs. 24.44 Cr. has been considered as Contingent Liabilities due to pending decision. 14.12 The Company has only one business segment, i.e. mining of Coal and manufacturing of Coke, hence segment reporting as defined in AS-17 by the ICAI is not applicable. 14.13 Previous Year figures have been “reorganized” and “regrouped” wherever necessary to correspond with the current year’s figures.

15. CONTINGENT LIABILITIES :

(A) CLAIMS NOT ACKNOWLEDGED AS DEBTS [Rs. in Crores ]

Current Year Previous Year (a) Income Tax 0.27 0.27 (b) Sales Tax 466.16 323.99

(c) Service Tax 18.20 18.23 (d) Royalty 102.36 96.93 (e) Other Levies 277.72 273.71 (f) Suits against the Company 619.69 647.74 (g) Arbitration proceedings 165.84 104.12

(B) BANK GUARANTEE: [Rs. in Crores] Current Year Previous Year Issued by the Company 2.00 1.60 (C) Other money for which the Company is contingently liable. LETTER OF CREDIT: [Rs. in Crores] Current Year Previous Year Given by the Company 5.07 8.84 16. COMMITMENTS: (a) CAPITAL COMMITMENTS [Rs.in Crores]

Current Year Previous Year Estimated amount of contract remaining to be executed on capital account and not provided for.

65.71

218.72

(b) Uncalled liability on shares and other investments partly paid – NIL

151

(c) Other Commitments:-

[Rs.in Crores] Current Year Previous Year Estimated amount of contract remaining to be executed on Revenue account and not provided for.

1540.30

-

17. DIRECTORS REMUNERATION: [Rs. in lakhs]

Current Year Previous Year Salary 76.35 78.51 Gratuity - 10.00 Provident Fund and Family Pension Fund Contribution

7.40 7.49

Sitting Fee (Part time Director) 2.60 1.30 Note : Does not include perquisites like medical Reimbursements and free medical facilities provided in the company Hospital(s), etc. 17.1 The following particulars are being stated regarding remuneration to key management

personnel for the quarter ended 31.03.2012 in pursuance to direction in A.S. 18 of the Institute of Chartered Accountants of India:-

[Rs. in lakhs]

Designation

Gross Salary

P.F. Contri-bution

Gratuity LTC/Leave Encashment

etc.

Total


22.87 2.25 - - 25.12

Other Directors 53.48 5.15 - 0.70 59.33 Total 76.35 7.40 - 0.70 84.45 17.2 PARTICULARS OF ADVANCE [ Rs. in lakhs ]

Current Year Previous Year A. Amount due from Directors NIL NIL B. Maximum amount of Advance due from Directors at any time during the year.

0.96

3.59

17.3 SUBSCRIPTION TO CLUB: [ Rs. in lakhs ] Current Year Previous Year Subscription to Club 3.18 0.15 18. VALUE OF IMPORTS CALCULATED ON CIF BASIS : [Rs. in lakhs] Current Year Previous Year Stores and Spare Parts 311.68 55.66 Capital Goods 1058.03 NIL

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19. EXPENDITURE IN FOREIGN CURRENCIES: [Rs. in lakhs] Current Year Previous Year Travelling 6.53 6.74 Stores 1018.54 55.16 Consultancy & Others - - Advance to supplier - - 20 VALUE OF RAW MATERIALS AND SPARES CONSUMED (Rs. in Crores) Current year Previous Year 1. Raw Coal consumed in Washeries: Imported - - Indigenous 1066.36 1025.88 2. Stores & Spares: Imported 2.13 - Indigenous 465.52 445.87 21. All the Notes 1 to 32, the Accounting Policies and Additional Notes on the Accounts form integral part of the Accounts. (K N Mukhopadhyay) (A K Pandey) GM(Company Secretary) GM(F)CA&T (Amitava Saha) (T K Lahiry) Director(Finance) Chairman-Cum-Managing Director Place: Dhanbad Dated: 21.05.2012

153

STATEMENT PURSUANT TO PART IV OF SCH.VI TO THE COMPANIES ACT,1956

Balance Sheet Abstract and Company's General Business Profile I. REGISTRATION DETAILS

Registration No. U 1 0 1 0 1 J H 1 9 7 2 G 0 I 0 0 0 9 1 8

STATE CODE 0 3

Balance Sheet

3 1 0 3

2 0 1 2

Date

Date Month Year

II. CAPITAL RAISED DURING THE YEAR ( AMOUNT RS. IN CRORE )

Public Issue

Rights Issue

N I L

N I L

Bonus Issue

Private Placement

N I L

N I L

III. POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS

(₹ in Crore)

Total Liabilities

Total assets

6 2 1 5 . 0 8

6 2 1 5 . 0 8

SOURCES OF FUNDS

Paid-up Capital

Reserves & Surplus

2 1 1 8 . 0 0

(-) 5 6 0 4 . 8 3

Secured Loans

Unsecured Loans

N I L

3 5 8 3 . 5 3

APPLICATION OF FUNDS

Net Fixed Assets

Investments

1 6 0 2 . 8 6

5 5 . 4 3

Net Current Assets

Misc. Expenditure

(-) 1 5 4 7 . 6 7

N I L

Accumulated Losses

(-) 5 6 0 4 . 8 3

IV. PERFORMANCE OF COMPANY ( AMOUNT RS.IN CRORE )

Turnover

Total Expenditure

7 2 8 0 . 4 8

6 4 5 8 . 1 2

+/-Profit/Loss Before Tax

+/-Profit/Loss After Tax

8 2 2 . 3 6

8 2 2 . 3 6

Earning per Share ( in Rs.)

Dividend Rate

3 8 8 . 2 7

N I L V. GENERIC NAMES OF THREE PRINCIPAL PRODUCTS/SERVICES OF THE COMPANY

( AS PER MONETARY TERMS )

Item Code No.(ITC Code)

Product description

2 7 0 1 1 2

R A W C O A L


Product description

W A S H E D C O A L


Product description

H A R D C O K E

On behalf of the Board of Directors (K.N.Mukhopadhyay) (A.K.Pandey)

(Amitava Saha) (T.K.Lahiry) GM( Company Secretary) Gen.Manager(F) Director(F)

Chairman cum Managing Director

Date : 21.05.2012

154

END OF REPORT

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