Ktk1 incline cost review meeting 24 09-2015

cost Review Meeting of BHPL AREA

Sri. J.PAVITRAN KUMAR IRSDirector (Finance& PA&W), SCCL

Introduction • Bhupalpalli is situated 65 Km from Warangal and 85 Km

from Godavarikhani.

• Bhupalpalli is situated in Mulugu Coalbelt. This coal belt has reserves of 765 MT in a continuous stretch of about 100 Kms.

• The mines in Bhupalpalli Area are christened as “KAKATIYA KHANI (KTK)”. Kakatiya Dynasty ruled this part in 12th Century A.D. under which Art, Architecture and Culture have reached their zenith.

• Bhupalpalli Area has started its functioning since July 1988. The first mine KTK 1 & 1A Incline was inaugurated on 15.7.1988.

DETAILS OF EXISTING MINES AT BHUPALPALLI

Sl No Mine Date of starting the Mine

Life as per FR/RCE

1 KTK 1 INC 15-07-1988 30 Yrs

2 KTK 2 INC 03-02-1989 30 Yrs

3 KTK 5 INC 03-05-1993 25 Yrs

4 KTK 6 INC 07-09-1998 21 Yrs

5 KTK LWP 16-06-2003 24 Yrs

6 KTK OC Sector I 23-11-2008 09 Yrs

Performance Analysis up to July 2015BHP AREA

Production achieved is 99.96% of the targeted production.

-Targeted production 10.33 LTs

-Achieved production 10.32 LTs

Production achieved is 159.40 % of the previous year production ( up to July 2014) 6.48 LTs

Performance Analysis up to July 2015BHP AREA Cont..

•EMS is Rs.2687.96 against budget Rs.2676.61 and the previous year of Rs.2527.43

•OMS is 2.22 T against budget 2.06 T and the previous year of 1.30 T

•SDL utilization is 27% against the availability of 94%.

•44 SDLs out of 49 SDLs were utilized below 40%.(MAH).

•Cost of Production per ton is Rs.2861 against Budget Rs.2965 and previous year of Rs.3631

•Wages cost per ton is Rs.1673 against budget Rs.1802 and previous year of Rs.2653

•Wages cost of Rs.17262.97 lakhs (being 58.46% of Cost of production) are covered by the Sales of Rs.24731.80 lakhs.

•Manpower in July ‘15 was 6043 against Prv.Year of 6428

• Actual Manshifts up to July 2015 were 526420 against budgeted Manshifts of 569712 budget & 557172 of previous year corresponding period

Performance Analysis up to July 2015BHP AREA Cont..

•Stores cost per ton is Rs.265 against budget Rs.279 and previous year of Rs.284

•Explosives cost per ton is Rs.77 against budget Rs.80 and previous year of Rs.51.

•Power Cost per ton is Rs.91 against budget of Rs.106 and previous year of Rs.135

•Sand transport Cost per ton is Rs.45 against budget of Rs.68 and previous year of Rs.102

•Other Expenses per ton is Rs.91 against budget of Rs.86 and previous year of Rs.61


•OB removal Cost per ton is Rs.467 against budget of Rs.420 and previous year of Rs.209

•Coal Offloading expenses per Ton was Rs 12 against Rs 1.50 budget and Rs.0.60

•Loss of Rs.47.99 crs is incurred as against budgeted Loss of Rs.23.27crs and Prv. Year loss of Rs.39.72 Crs.

•BEP is 1408679 tonnes. Output of 376510 tonnes is required to cover loss


AREA 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Upto 07/ 2015

Gross Production

Target 23.50 24.54 33.04 30.10 33.41 35.70 33.00 10.33

Actual 10.75 17.32 20.27 14.40 19.17 24.06 29.47 10.32

Cost of Production

Rs.Lakhs 27754 38953 47436 53105 63054 73973 92493 29531

CPT (Rs.) 2581 2249 2341 3687 3289 3075 3139 2861

ASRRs.Lakhs 25687 32321 40082 37455 50787 61956 76391 24732

PT (Rs.) 2389 1866 1978 2600 2650 2575 2592 2396

Profit (+) / Loss(-)

Rs.Lakhs -2067 -6631 -7353 -15650 -12268 -12017 -16101 -4799

PT (Rs.) -192 -383 -363 -1087 -640 -500 -546 -465

Year wise Financial performance of BHPL AREA

Financial Performance (Cr.Year Vs Prv.Year)UPTO JULY 2015

BHP AREA

Details AREA U.G.Mines

Up to July 2015

Up to July 2014

Up to July 2015

Up to July 2014

PRODU-CTIONTarget 10.32600 8.30700 5.57600 4.55700

Actual 10.32169 6.47545 4.27064 4.34395

Cost of ProductionRs.Lakhs 29531.08 23513.86 18960.88 19597.17

CPT (Rs.) 2861.07 3631.23 4439.82 4511.37

Sales RealizationRs.Lakhs 24731.80 19542.07 14019.23 15185.63

PT (Rs.) 2396.10 3017.87 3282.70 3495.81


Rs.Lakhs -4799.28 -3971.79 -4941.65 -4411.54

PT (Rs.) -464.97 -613.36 -1157.12 -1015.56

Mine KTK 1 KTK 2 KTK 5

Up to July 2015

Up to July 2014

Up to July 2015

Up to July 2014

Up to July 2015

Up to July 2014

PRODU-CTION

Target 1.62100 1.21500 0.81900 1.01300 1.63600 1.21500

Actual 1.09050 1.17983 0.98068 0.96880 1.16498 1.13258

Cost of Production

Rs.Lakhs 4854.26 5308.88 4037.81 4189.29 4926.67 5290.76

CPT (Rs.) 4451.41 4499.70 4117.36 4324.20 4228.97 4671.43

Sales Realization

Rs.Lakhs 3376.80 3447.68 4369.30 4402.51 3466.32 3966.97

PT (Rs.) 3096.56 2922.18 4455.38 4544.29 2975.43 3502.60


Rs.Lakhs -1477.46 -1861.20 331.49 213.22 -1460.35 -1323.79

PT (Rs.) -1354.85 -1577.51 338.02 220.09 -1253.54 -1168.83


Mine KTK 6 KTK LW KTK OC

Up to July 2015

Up to July 2014

Up to July 2015

Up to July 2014

Up to July 2015

Up to July 2014

PRODU-CTION

Target 0.95500 0.70900 0.54500 0.40500 4.75000 3.75000

Actual 0.65084 0.71144 0.38364 0.35130 6.05105 2.13150

Cost of Production

Rs.Lakhs 2935.55 2912.67 2206.59 1895.58 10570.20 3916.68

CPT (Rs.) 4510.40 4094.05 5751.72 5395.90 1746.84 1837.52

Sales Realization

Rs.Lakhs 2114.24 2553.27 692.57 815.20 10712.57 4356.43

PT (Rs.) 3248.48 3588.88 1805.26 2320.53 1770.37 2043.83


Rs.Lakhs -821.31 -359.40 -1514.02 -1080.38 142.37 439.75

PT (Rs.) -1261.93 -505.17 -3946.46 -3075.36 23.53 206.31


BHP AREA Apr-15 May-15 Jun-15 Jul-15 UPTO JUL.2015

PRODU-CTION

Target 289800 286100 238300 218400 1032600

Actual 266807 290778 222739 251845 1032169

Cost of Prodn.

Rs.Lakhs 7743.73 7888.68 6489.96 7409.55 29531.08

CPT (Rs.) 2902.37 2712.96 2913.71 2942.11 2861.07

Sales Realization

Rs.Lakhs 6528.05 6553.91 5545.24 6104.61 24731.81

PT (Rs.) 2446.73 2253.92 2489.57 2423.96 2396.10


Rs.Lakhs -1215.70 -1334.79 -944.02 -1304.95 -4799.28

PT (Rs.) -455.65 -459.04 -423.82 -518.16 -464.97

Month Wise Financial Performance Upto JULY, 2015

ACTUAL vs BUDGETED AND BREAK EVEN PRODUCTIONUP TO THE MONTH OF JULY, 2015

PRODUCTION (LTs )

MINE TARGET 2015-16 BUDGETED ACTUAL BEP % ACH.

TO BEPKTK 1 4.80 1.62 1.09 1.84 59

KTK 2 2.40 0.82 0.98 0.88 111

KTK 5 4.80 1.64 1.16 1.90 61

KTK 6 2.80 0.96 0.65 1.05 62

KTK LW 1.60 0.55 0.38 2.51 15

UG MINES 16.40 5.58 4.27 6.50 66

KTK OC 15.00 4.75 6.05 5.82 104

AREA 31.40 10.33 10.32 14.09 73

Mine

Normative cost

in Rs/Cum 2015-

16

Quantity of sand stowed in CumSand Stowing Subsidy recognized @75% of

normative cost in Rs lakhs

Actual Budget Difference Actual Budget Difference

KTK 1 Incline 578.46 55210.51 50784.00 4426.50 239.52 150.62 88.89

KTK 2 Incline 526.18 105940.00 87060.00 18880.00 418.08 232.70 185.38

KTK 5 Incline 563.10 43053.00 69648.00 -26595.00 181.82 201.15 -19.33

KTK 6 Incline 527.29 57395.00 79804.00 -22409.00 226.98 214.20 12.78

AREA : 261598.51 287296.00 -25697.491 1066.39 798.67 267.72

Sand stowing – Subsidy recognized as Income up to July 2015

Mines not covered Wage Cost upto July, 2015

Sl. No. Mines Production

(LTs)Total Cost (Rs.lakhs)

Wages Cost

(Rs.lakhs)

Sales (Rs.lakhs)

Under reovery of

wages (Rs.lakhs)

Profit(+) / Loss(-)

(Rs.lakhs)

% of wage cost to

Total Cost

01 KTK 1 Incline 1.091 4854.26 4004.80 3376.80 628.00 -1477.46 82.50

02 KTK 2 Incline 0.981 4037.81 3529.88 4369.30 -839.42 331.49 87.42

03 KTK 5 Incline 1.165 4926.67 4125.98 3466.32 659.66 -1460.35 83.75

04 KTK 6 Incline' 0.651 2935.55 2380.06 2114.24 265.82 -821.31 81.08

05 KTK Longwall 0.384 2206.59 1540.95 692.57 848.38 -1514.02 69.83

UG Mines 4.271 18960.88 15581.67 14019.23 1562.44 -4941.65 82.18

06 KTK Opencast 6.051 10570.20 1681.30 10712.57 -9031.28 142.37 15.91

Area 10.322 29531.08 17262.97 24731.80 -7468.83 -4799.28 58.46

WORKING RESULTS FOR THE MONTH OF JUL, 2015

BHP AREAUPTO THE MONTH

Pre.Year UPTOJUL, 2014 Actual

VARIANCEBudget Vs

ActualActual Vs Pre. YearACTUAL BUDGET

Description UNITS 1 2 3 1-2 2-3Gross Production L.Ts 10.32169 10.32600 6.47545 -0.00431 3.84624OBR - Off Loading L.Cu.M 44.68394 37.00000 7.16531 7.68394 37.5186Manshifts (Mines) Lakhs 4.65785 5.02424 4.99282 -0.36639 -0.33497Manshifts (Depts) Lakhs 0.60635 0.67288 0.57890 -0.06653 0.02745

EMS (Sal&Wages/Paid M/shifts) Rs 2687.96 2676.61 2527.43 11.35 160.53

OMS (Rev.Prodn/Mine M/shifts) Tonnes 2.22 2.06 1.30 0.16 0.92COST ELEMENTS Rs.Lakhs Rs./T Rs.Lakhs Rs./T Rs.Lakhs Rs./T Rs.Lakhs Rs.Lakhs

Sal/Wages 17262.97 1672.49 18603.74 1801.64 17180.22 2653.13 -1340.77 82.75Explosives 794.37 76.96 824.86 79.88 327.29 50.54 -30.49 467.08Stores 2735.74 265.05 2883.46 279.24 1840.46 284.22 -147.71 895.28Power 934.47 90.53 1090.55 105.61 871.80 134.63 -156.08 62.67Other Expenses 940.67 91.14 884.56 85.66 395.08 61.01 56.11 545.59Coal Transport Sand Transport 469.52 45.49 699.98 67.79 660.68 102.03 -230.46 -191.16Interest 0.12 0.01 0.05 0.01 0.12 0.07Depreciation 1456.04 141.07 1275.62 123.53 878.69 135.70 180.42 577.35OBR Expenses 4937.19 478.33 4350.17 421.28 1359.59 209.96 587.02 3577.60W_OBR Adjustments (a) 2717.84 263.31 2241.77 217.10 995.83 153.79 476.07 1722.01OBR Off loading expenditure (i) 2099.06 203.36 2093.39 202.73 360.10 55.61 5.67 1738.96Coal Off loading expenditure (ii) 120.29 11.65 15.00 1.45 3.66 0.57 105.29 116.63Total Cost of Production 29531.08 2861.07 30612.91 2964.64 23513.86 3631.23 -1081.84 6017.22Sale Realisaion (A)+(B)+(C)+(D) 24731.80 2396.10 28286.13 2739.31 19542.07 3017.87 -3554.33 5189.74Value of Coal Transfer to CHP ( A) 4431.92 429.38 2373.83 229.89 -1420.07 -219.30 2058.08 5851.99Realisation Through PHD (B) 18913.48 1832.40 23785.15 2303.42 18624.17 2876.12 -4871.67 289.31Other Sales component (C) 964.24 93.42 931.66 90.22 1737.10 268.26 32.59 -772.86Profit/Loss Transfers from CHP (D) 422.16 40.90 1195.49 115.77 600.86 92.79 -773.33 -178.70Profit (+)/Loss (-) -4799.28 -464.97 -2326.79 -225.33 -3971.79 -613.36 -2472.49 -827.49

BREAK EVEN PRODUCTION (L.T.) 14.08679 11.76781 8.54330

ELEMENT WISE COST & % OF COST IN COST OF PRODUCTION BHP AREA

COST ELEMENTSUPTO JUL, 2015

ACTUAL BUDGET Actual Prv.YearCPT (Rs.) % CPT (Rs.) % CPT (Rs.) %

Sal/Wages 1672.49 58.46 1801.64 60.77 2653.13 73.06Explosives 76.96 2.69 79.88 2.69 50.54 1.39Stores 265.05 9.26 279.24 9.42 284.22 7.83Power 90.53 3.16 105.61 3.56 134.63 3.71Other Expenses 91.14 3.19 85.66 2.89 61.01 1.68Coal Transport 0.00 0.00 0.00 0.00 0.00 0.00Sand Transport 45.49 1.59 67.79 2.29 102.03 2.81Interest 0.01 0.00 0.00 0.00 0.01 0.00Depreciation 141.07 4.93 123.53 4.17 135.70 3.74OBR Expenses 478.33 16.72 421.28 14.21 209.96 5.78

Total Cost of Production 2861.07 100.00 2964.64 100.00 3631.23 100.00

Sale Realisaion 2396.10 2739.31 3017.87Profit (+)/Loss (-) -464.97 -225.33 -613.36

Cost Element Cost Element Name

AREA

Actual Upto July,2015


Variance (+) Increase / (-)

Decrease4354701 Basic Pay & SPRA 5388.40 5463.22 -74.814354702 Dearness Allowances 2229.61 1830.51 399.10

4354703 UnderGround Allowanc 652.00 696.71 -44.714354704 HRA 325.16 78.11 247.054354707 Other Allowances 195.58 215.47 -19.894354708 CMPF-Admin Chgs 1241.74 1308.67 -66.934354710 Incentives 57.17 21.30 35.864354711 Play Day 167.82 431.91 -264.094354712 Overtime 14.33 124.89 -110.554354713 Paid Holiday 14.04 32.91 -18.874354715 Quarterly Bonus 445.66 489.90 -44.24

4354720Sp/Acc/Mat Leave Wag 55.62 36.27 19.35

4354735 Special allowance 243.43 260.72 -17.294354736 Telangana Inc Basic 189.52 0.00 189.524354760 CL-SL-LWP-PeiceRate 1042.54 997.25 45.284354761 Acting Wages 128.12 614.69 -486.57

Analysis of element wise wage cost


AREAActual Upto

July,2015



Decrease4365320 Free Gas to employee 78.86 76.75 2.124354709 Prdn/perf Link Bonus 805.39 668.30 137.094354714 Leave Encashment 269.61 284.23 -14.614355026 Gratuity 1096.12 1173.31 -77.194365325 Sp Inc Corporate Sch 172.58 184.73 -12.154365332 L.L.T.C. Employees 147.98 133.72 14.254365336 Matching Grant 0.95 0.25 0.704365337 Ex-Gratia -Fatal Acc 0.00 5.85 -5.856200001 AOHWAGES 1346.83 1209.11 137.726200011 ASWWAGES 513.13 405.08 108.056500001 WS WAGES 321.24 302.43 18.82


DetailsAcutals Up to

07/15Actuals up to

07/14Budget up to Aug 2015

Total Units consumed 15055627 15164324 16986720

Production in Tonnes 1032169 647546 1032600

Units/Tonne 14.59 23.42 16.45

The power cost per Tonne was Rs.90.53 up to July 2015 as against Rs.134.63 up to July 2014.( decreased by Rs.44.10/T)

Though there was increase in the power tariff w.e.f April 2015, the reduction in power cost was on account of increase in production and saving in power units per tonne.

When compared with the budget for 2015-16( up to July 2015) , the power cost reduced by Rs.156.08 lakhs( decrease by Rs.15.08/T).

The total number of units consumed and units per tonne are tabulated hereunder :

Analysis of Power Cost - BHP Area

Cost Element Cost Element

Upto July,2015 In Rs lakhs

Upto July, 2014

in Rs lakhs

Variance in Rs lakhs

3313719 SandStowin-Ass/Sbsdy -1066.394 -743.2272 323.174334522 Hiring of HEMM 16.230642 0 16.234344617 Other Expenses – topsoil

re-handling of KTK OC 610.53929 0 610.54

4365306 Med Reimb-Employees 125.23071 45.385773 79.844365321 Welfare expenses-Oth 17.937416 0 17.944365349 LS Pmt.Rs. 3.00 lakh 12.5 0 12.504375411 R&M-P & M 10.799899 0.8002 10.004426213 Prov-Mine closure pl 261.10997 248.6733 12.444436318 Settling Allowance 5.4129042 16.72508 -11.314436334 Consultancy Charges 0 21.758 -21.764436390 Misc. Expen(Others) 2.4916131 13.848098 -11.366200003 AOHBILLS 181.31539 157.20744 24.116200013 ASWBILLS 417.75857 386.84881 30.916200033 AREA DEPRECIATION 188.88181 111.90188 76.986500003 WS BILLS 55.345504 44.313251 11.03

Other Expenses Details – Up to July 2015

AREA UPTO THE MONTH OF JULY, 2015

Description 07/2015 Budget 07/15 Previous year 07/2014

Coal Production (LTs) 10.32169 10.32600 6.47545Manshifts (Lakhs) 6.42232 6.95049 6.79750OMS (Ts) 2.22 2.06 1.30EMS (On Paid M/S) 2687.96 2676.61 2527.43OBR Company (L.Cu.m) 0.15412 0.62099OBR Off loading (L.cu.m) 44.52982 37.00000 6.54432 Lakhs /T Lakhs /T Lakhs /T1.Salaries & Wages 14774.31 1431.39 15988.53 1548.38 14749.96 2277.832.Explosives 794.37 76.96 824.86 79.88 327.29 50.543.Stores 2735.74 265.05 2883.46 279.24 1840.46 284.224.Power ( Mines ) 934.47 90.53 1090.55 105.61 871.80 134.635.Other Elements * 6086.37 589.67 5673.58 549.45 2166.73 192.91Sub Total (A) Controllable 25325.26 2453.60 26460.96 2562.56 19956.23 2940.131.Wage Provisions 2488.66 241.11 2615.21 253.26 2430.26 375.30 PLB / PLR 877.81 85.05 897.18 86.89 725.31 112.01 Leave Encashment 178.98 17.34 187.11 18.12 189.44 29.25 Gratuity 1237.09 119.85 1304.12 126.29 1309.35 202.20 Special Incentive 194.78 18.87 226.80 21.96 206.15 31.84 2488.66 241.11 2615.21 253.26 2430.26 375.302.Depreciation 1456.04 141.07 1275.62 123.53 878.69 135.703.Prov. for Mine Closure Plan 261.12 25.30 261.12 25.29 248.67 180.104.Provn. for OBR Back Filling Sub Total (B) Uncontrollable 4205.82 407.47 4151.95 402.09 3557.62 691.10

Total Cost of Production (A + B) 29531.08 2861.07 30612.91 2964.64 23513.86 3631.23

Controllable and Un-Controllable costs

Details Up to July 2015

BEP Production in Tonnes 1408679

Actual Production in Tonnes 1032169

Variance in Tonnes -376510

Contribution in RS /Tonne ( ASR Rs.2396.10 – Variable Cost Rs.1121.42)

1274.68

Profit /Loss In Rs lakhs -4799.29

BEP Analysis BHPL Area


UG MINESUPTO THE MONTH


VARIANCEBudget Vs


Description UNITS 1 2 3 1-2 2-3Gross Production L.Ts 4.27064 5.57600 4.34395 -1.30536 -0.07331OBR - Off Loading L.Cu.M Manshifts (Mines) Lakhs 4.42518 4.79960 4.78947 -0.37442 -0.36429Manshifts (Depts) Lakhs 0.25404 0.37042 0.41216 -0.11638 -0.15812EMS (Sal&Wages/Paid M/shifts) Rs 2729.49 2711.09 2544.63 18.39 184.86

OMS (Rev.Prodn/Mine M/shifts) Tonnes 0.97 1.16 0.91 -0.20 0.06

COST ELEMENTS Rs.Lakhs Rs./T Rs.Lakhs Rs./T Rs.Lakhs Rs./T Rs.Lakhs Rs.LakhsSal/Wages 15581.67 3648.56 17100.01 3066.72 16148.17 3717.39 -1518.33 -566.50Explosives 177.54 41.57 234.52 42.06 185.96 42.81 -56.98 -8.42Stores 916.70 214.65 1170.45 209.91 1059.77 243.96 -253.76 -143.07Power 872.46 204.29 1049.11 188.15 844.35 194.37 -176.65 28.10Other Expenses -151.67 -35.51 370.90 66.52 83.62 19.25 -522.56 -235.29Coal Transport Sand Transport 469.52 109.94 699.98 125.53 660.68 152.09 -230.46 -191.16Interest 0.12 0.03 0.05 0.01 0.12 0.07Depreciation 1094.54 256.29 876.09 157.12 614.57 141.48 218.45 479.97OBR Expenses W_OBR Adjustments (a) OBR Off loading expenditure (i) Coal Off loading expenditure (ii) Total Cost of Production 18960.88 4439.82 21501.05 3856.00 19597.17 4511.37 -2540.18 -636.29Sale Realisaion (A)+(B)+(C)+(D) 14019.23 3282.70 19219.92 3446.90 15185.63 3495.81 2415.03 2263.85Value of Coal Transfer to CHP ( A) 981.01 229.71 2373.83 425.72 432.28 99.51 -1392.83 548.72Realisation Through PHD (B) 12216.94 2860.68 15286.15 2741.42 13195.97 3037.78 3069.20 979.02Other Sales component (C) 399.12 93.46 364.45 65.36 956.52 220.20 -34.67 557.40Profit/Loss Transfers from CHP (D) 422.16 98.85 1195.49 214.40 600.86 138.32 773.33 178.70Profit (+)/Loss (-) -4941.65 -1157.12 -2281.13 -409.10 -4411.54 -1015.56 2660.52 530.11


Performance Analysis up to July 2015UG MINES





Performance Analysis up to July 2015UG mines Cont..

•EMS is Rs.2729.49 against budget Rs.2711.09 and the previous year of Rs.2544.63



•44 SDLs out of 49 SDLs were utilized below 40%.(MAH).



•Wages cost of Rs.15581.67 lakhs (being 82.18% of Cost of production) are not covered by the Sales of Rs.14019.23 lakhs.



Performance Analysis up to July 2015UGMINES Cont..


•Explosives cost per ton is Rs.41.57against budget Rs.42.06 and previous year of Rs.42.81.



•Other Expenses per ton is Rs.-35.51 against budget of Rs.67 and previous year of Rs.19

Performance Analysis up to July 2015UG Mines



Performance Analysis up to July 2015UG Mines

UG MINES



Sal/Wages 3648.56 82.18 3066.72 79.53 3717.39 82.40Explosives 41.57 0.94 42.06 1.09 42.81 0.95Stores 214.65 4.83 209.91 5.44 243.96 5.41Power 204.29 4.60 188.15 4.88 194.37 4.31Other Expenses -35.51 -0.80 66.52 1.73 19.25 0.43Coal Transport 0.00 0.00 0.00 0.00 0.00 0.00Sand Transport 109.94 2.48 125.53 3.26 152.09 3.37Interest 0.03 0.00 0.00 0.00 0.01 0.00Depreciation 256.29 5.77 157.12 4.07 141.48 3.14OBR Expenses 0.00 0.00 0.00 0.00 0.00 0.00


Sale Realisaion 3282.70 3446.90 3495.81Profit (-)/Loss (+) -1157.12 -409.10 -1015.56

ELEMENT WISE COST & % OF COST IN COST OF PRODUCTION


07/15Actuals up to

07/14

Budget up to Aug 2015



Units/Tonne 32.97 33.82 29.31

The power cost per Tonne was Rs.204.29 up to July 2015 as against Rs.194.37 up to July 2014. ( Increased by Rs.9.92/T)

When compared with the budget for 2015-16( up to July 2015) , the power cost reduced by Rs.176.65 lakhs( Per tonne cost increased by Rs.16.14/T).


Analysis of Power Cost - UG MINES





Contribution in RS /Tonne 2212.96


BEP Analysis UG MINES

UG MINES UPTO THE MONTH OF JULY, 2015

Description 07/2015 Budget 07/15 Previous year 07/2014

Coal Production (LTs) 4.27064 5.57600 4.34395Manshifts (Lakhs) 5.70865 6.30742 6.34599OMS (Ts) 0.97 1.16 0.91EMS (On Paid M/S) 2729.49 2711.09 2544.63 Lakhs /T Lakhs /T Lakhs /T1.Salaries & Wages 13247.03 3101.88 14713.30 2638.68 13824.22 3182.412.Explosives 177.54 41.57 234.52 42.06 185.96 42.813.Stores 916.70 214.65 1170.45 209.91 1059.77 243.964.Power ( Mines ) 872.46 204.29 1049.11 188.15 844.35 194.375.Other Elements * 244.01 57.14 996.91 178.79 673.92 -183.52Sub Total (A) Controllable 15457.74 3619.54 18164.30 3257.59 16588.23 3480.041.Wage Provisions 2334.64 546.67 2386.71 428.03 2323.95 534.98 PLB / PLR 805.53 188.62 823.00 147.60 688.79 158.56 Leave Encashment 170.03 39.81 170.30 30.54 181.72 41.83 Gratuity 1174.76 275.08 1186.97 212.87 1255.89 289.11 Special Incentive 184.32 43.16 206.43 37.02 197.55 45.48 2334.64 546.67 2386.71 428.03 2323.95 534.982.Depreciation 1094.54 256.29 876.09 157.12 614.57 141.483.Prov. for Mine Closure Plan 73.96 17.32 73.96 13.26 70.42 354.874.Provn. for OBR Back Filling Sub Total (B) Uncontrollable 3503.14 820.28 3336.75 598.41 3008.94 1031.33


Controllable and Un-Controllable costs


KTK 1 INCLINEUPTO THE MONTH


VARIANCEBudget Vs


Description UNITS 1 2 3 1-2 2-3Gross Production L.Ts 1.09050 1.62100 1.17983 -0.53050 -0.08933OBR - Off Loading L.Cu.M Manshifts (Mines) Lakhs 1.15129 ####### 1.34472 ####### 1.28813 ####### -0.19343 -0.13684Manshifts (Depts) Lakhs 0.06503 ####### 0.10738 ####### 0.11317 ####### -0.04235 -0.04814EMS (Sal&Wages/Paid M/shifts) Rs 2698.81 2704.51 2548.26 -5.70 150.55

OMS (Rev.Prodn/Mine M/shifts) Tonnes 0.95 1.21 0.92 -0.26 0.03

COST ELEMENTS Rs.Lakhs Rs./T Rs.Lakhs Rs./T Rs.Lakhs Rs./T Rs.Lakhs Rs.LakhsSal/Wages 4004.80 3672.44 4791.21 2955.71 4356.48 3692.46 -786.42 -351.68Explosives 51.30 47.05 73.33 45.24 54.28 46.00 -22.02 -2.97Stores 250.59 229.80 317.72 196.00 303.03 256.85 -67.13 -52.44Power 190.40 174.60 307.46 189.67 229.83 194.80 -117.05 -39.42Other Expenses -19.90 -18.25 147.12 90.76 63.65 53.94 -167.02 -83.55Coal Transport Sand Transport 185.24 169.87 168.67 104.05 189.44 160.57 16.57 -4.20Interest 0.12 0.11 0.05 0.04 0.12 0.07Depreciation 191.71 175.80 149.73 92.37 112.13 95.04 41.98 79.58OBR Expenses W_OBR Adjustments (a) OBR Off loading expenditure (i) Coal Off loading expenditure (ii) Total Cost of Production 4854.26 4451.41 5955.24 3673.80 5308.88 4499.70 -1100.98 -454.62Sale Realisaion (A)+(B)+(C)+(D) 3376.80 3096.56 5248.09 3237.56 3447.68 2922.18 -1871.29 -70.88Value of Coal Transfer to CHP ( A) 146.14 134.01 -569.51 -482.71 146.14 715.66Realisation Through PHD (B) 2906.58 2665.36 5087.36 3138.41 3561.94 3019.03 -2180.78 -655.36Other Sales component (C) 155.15 142.27 160.73 99.16 455.25 385.86 -5.59 -300.10Profit/Loss Transfers from CHP (D) 168.93 154.91 168.93 168.93Profit (+)/Loss (-) -1477.46 -1354.85 -707.15 -436.24 -1861.20 -1577.51 -770.32 383.74


Performance Analysis up to July 2015KTK 1 INC





Performance Analysis up to July 2015KTK 1 Inc Cont..

•EMS is Rs.2698.81 against budget Rs.2704.51and the previous year of Rs.2548.26



•All 13 SDLs were utilized below 40%.(MAH).



•Wages cost of Rs.4004.8 lakhs (being 82.50% of Cost of production) are not covered by the Sales of Rs.3376.80 lakhs.



Performance Analysis up to July 2015Cont..

KTK 1 Inc


•Explosives cost per ton is Rs.47.05against budget Rs.45.24 and previous year of Rs.46.



•Other Expenses per ton is Rs.-19.90 against budget of Rs.90.76 and previous year of Rs.53.94

Performance Analysis up to July 2015KTK 1 Inc



Performance Analysis up to July 2015 KTK 1 Inc

KTK 1 INCLINE



Sal/Wages 3672.44 82.50 2955.71 80.45 3692.46 82.06Explosives 47.05 1.06 45.24 1.23 46.00 1.02Stores 229.80 5.16 196.00 5.34 256.85 5.71Power 174.60 3.92 189.67 5.16 194.80 4.33Other Expenses -18.25 -0.41 90.76 2.47 53.94 1.20Coal Transport 0.00 0.00 0.00 0.00 0.00 0.00Sand Transport 169.87 3.82 104.05 2.83 160.57 3.57Interest 0.11 0.00 0.00 0.00 0.04 0.00Depreciation 175.80 3.95 92.37 2.51 95.04 2.11OBR Expenses 0.00 0.00 0.00 0.00 0.00 0.00


Sale Realisaion 3096.56 3237.56 2922.18Profit (-)/Loss (+) -1354.85 -436.24 -1577.51

ELEMENT WISE COST & % OF COST IN COST OF PRODUCTION


KTK 1




Decrease4354701 Basic Pay & SPRA 1314.11 1362.13 -48.024354702 Dearness Allowances 534.48 444.82 89.664354703 UnderGround Allowanc 172.79 188.32 -15.534354704 HRA 89.10 20.36 68.734354705 Tr.Subsidy 6.36 7.38 -1.034354707 Other Allowances 49.27 57.55 -8.284354708 CMPF-Admin Chgs 301.86 336.29 -34.434354710 Incentives 10.05 3.46 6.594354711 Play Day 31.65 119.38 -87.734354712 Overtime 0.98 36.61 -35.634354713 Paid Holiday 3.00 8.81 -5.824354715 Quarterly Bonus 110.38 124.75 -14.374354720 Sp/Acc/Mat Leave Wag 16.54 12.58 3.954354722 Pension Recoveries 2.04 2.27 -0.234354735 Special allowance 59.81 67.65 -7.844354736 Telangana Inc Basic 46.93 0.00 46.934354760 CL-SL-LWP-PeiceRate 266.34 270.36 -4.024354761 Acting Wages 20.80 204.60 -183.804365305 Workmen's Compensati 0.00 6.50 -6.50



KTK 1




Decrease

4354709 Prdn/perf Link Bonus 202.04 177.66 24.384354714 Leave Encashment 62.38 65.70 -3.33

4355026 Gratuity 270.55 302.71 -32.164365325 Sp Inc Corporate Sch 42.60 47.66 -5.064365330 L.T.C. Employees 23.18 20.36 2.814365332 L.L.T.C. Employees 37.41 40.89 -3.484365337 Ex-Gratia -Fatal Acc 0.00 5.85 -5.856200001 AOHWAGES 157.11 242.30 -85.196200011 ASWWAGES 128.93 108.39 20.546500001 WS WAGES 34.30 58.98 -24.68

Contd..Analysis of element wise wage cost


07/15Actuals up to

07/14

Budget up to Aug 2015



Units/Tonne 28.23 33.85 29.54

The power cost per Tonne was Rs.174.60 up to July 2015 as against Rs.194.80 up to July 2014.

Though there was increase in the power tariff w.e.f April 2015, the decrease in power cost power was on account of increase in production and saving in power units per tonne.

When compared with the budget for 2015-16( up to July 2015) , the power cost reduced Rs.117.06 lakhs( Rs.15.07/T).


Analysis of Power Cost - KTK1

Cost Element Cost Element Upto

July,2015 In Rs lakhs

Upto July, 2014

in Rs lakhs

Variance in Rs lakhs

3313719SandStowin-Ass/Sbsdy -239.52 -147.26 92.254334526Hirechg Offi Veh(FBT 2.19 2.15 0.044365306Med Reimb-Employees 20.00 11.94 8.074365321Welfare expenses-Oth 4.74 0.00 4.744375435Miscellaneou Service 8.10 5.32 2.784395725Civic Taxe(Water et) 1.30 0.00 1.304436311Travel TA Exp- Emplo 2.36 3.18 -0.814436318Settling Allowance 0.00 1.60 -1.604436356Training Expe-Exec 1.14 1.61 -0.484436390Misc. Expen(Others) 0.47 3.13 -2.666200003AOHBILLS 20.76 26.66 -5.896200013ASWBILLS 105.07 103.19 1.886200033AREA DEPRECIATION 20.21 21.91 -1.706400233AGENT'S OFFICE BILLS -0.42 -0.49 0.076500003WS BILLS 6.08 8.47 -2.39

Other Expenses Details – Up to July 2015

BEP CALCULATION KTK 1 IncUPTO July 2015 Pre.Year UPTO

JUL, 2014 ActualACTUAL BUDGET

Cost of Element Fixed Variable Fixed Variable Fixed Variable Fixed Variable

WAGES-FILLERS 80 20 3203.84 800.96 3832.97 958.24 3485.18 871.30

EXPLOSIVES 100 51.30 73.33 54.28

STORES 40 60 100.24 150.36 127.09 190.63 121.21 181.82

POWER 60 40 114.24 76.16 184.47 122.98 137.90 91.93

OTHER EXPENSES 100 -19.90 147.12 63.65

COAL TRANSPORT 100

SAND TRANSPORT 20 80 37.05 148.19 33.73 134.94 37.89 151.55

INTEREST 100 0.12 0.05

DEPRECIATION 100 191.71 149.73 112.13

OBR EXPENSES 100

Total cost in Rs lakhs 3627.28 1226.97 4475.11 1480.12 3958.00 1350.88Sales including Profit from CHP Lakhs 3376.80 5248.09 3447.68

Contribution (Sales - Variable Cost) Lakhs 2149.82 3767.97 2096.80

Contribution per tonne Rs. 1971.41 2324.47 1777.20

BEP (Fixed Cost/Contribution per tonne LT 1.83994 1.92522 2.22709

Break Even Analysis





Contribution in RS /Tonne 1971.41


BEP Analysis KTK 1 INC

Controllable and Un-Controllable costs KTK 1 INCLINE UPTO THE MONTH OF JULY, 2015

Description 07/2015 Budget 07/15 Previous year 07/2014Coal Production (LTs) 1.09050 1.62100 1.17983Manshifts (Lakhs) 1.48391 1.77156 1.70959OMS (Ts) 0.95 1.21 0.92EMS (On Paid M/S) 2698.81 2704.51 2548.26 Lakhs /T Lakhs /T Lakhs /T1.Salaries & Wages 3397.05 3115.13 4120.70 2542.07 3727.69 3159.522.Explosives 51.30 47.05 73.33 45.24 54.28 46.003.Stores 250.59 229.80 317.72 196.00 303.03 256.854.Power ( Mines ) 190.40 174.60 307.46 189.67 229.83 194.805.Other Elements * 158.85 145.67 309.19 190.74 246.84 209.22Sub Total (A) Controllable 4048.20 3712.25 5128.40 3163.72 4561.67 3866.381.Wage Provisions 607.75 557.31 670.51 413.64 628.78 532.94 PLB / PLR 209.91 192.49 231.17 142.61 188.84 160.05 Leave Encashment 44.24 40.57 47.85 29.52 48.87 41.43 Gratuity 305.64 280.28 333.49 205.73 337.84 286.35 Special Incentive 47.96 43.98 58.00 35.78 53.23 45.12 607.75 557.31 670.51 413.64 628.78 532.942.Depreciation 191.71 175.80 149.73 92.37 112.13 95.043.Prov. for Mine Closure Plan 6.60 6.05 6.60 4.07 6.29 5.334.Provn. for OBR Back Filling Sub Total (B) Uncontrollable 806.06 739.16 826.84 510.08 747.20 633.31


Ktk1 incline cost review meeting 24 09-2015

Technology

Transcript of Ktk1 incline cost review meeting 24 09-2015