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WESTERN COALFIELDS LIMITED(A Miniratna Company)
ANNUAL REPORT AND ACCOUNTS2014-15
Registered Office
COAL ESTATE, CIVIL LINES, NAGPUR - 440001
WESTERN COALFIELDS LIMITED( A Miniratna Company)
C O N T E N T S
Page No.
1 Board of Directors 1
2 Bankers & Auditors 3
3 Notice 4
4 Performance at a glance 7
5 Chairman's Statement 10
6 Awards and Accolades 17
7 Directors’ Report 23
8 Annexures to Directors’ Report 64
9 Addendum to the Directors’ Report 85
10 Balance Sheet as at 31st March, 2015 108
11 Profit & Loss Account for the year ended 31st March, 2015 109
12 Cash flow statement for the year 2014-15 110
13 Notes to Balance Sheet ( Notes 1 to 19 ) 111
14 Notes to Profit & Loss Account (Notes 20 to 32) 131
15 Significant Accounting Policies - Note 33 139
16 Additional Notes on Accounts - Note 34 146
17 Statement of Un - Audited Results for the 163
Quarter and Year Ended on 31.03.2015
(As on 22nd June, 2015)
SHRI R. R. MISHRA
Chairman-cum-Managing Director
SHRI MUKUL MARWAH
( A Miniratna Company)
SHRI RUPAK DAYAL SHRI B.K. MISHRA
SHRI R. P. GUPTA SHRI R. MOHAN DAS
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1
WESTERN COALFIELDS LIMITED
WESTERN COALFIELDS LIMITED( A Subsidiary of Coal India Limited )
Board of Directors( As on 22nd June, 2015 )
Chairman-cum-Managing Director
Shri R.R. Mishra
Functional Directors
Shri Rupak Dayal - Personnel
Shri S.S. Malhi - Technical
Shri B. K. Mishra - Technical
Government Directors (Part time)
Shri R. P. Gupta - Joint Secretary,Ministry of Coal
Shri R. Mohan Das - Director (Personnel & IR),Coal India Limited, Kolkata.
Permanent Invitee(s)
Shri Mukul Marwah - Chief Operations Manager,Central Railway, Mumbai.
Company Secretary
Shri Rameher
2
ANNUAL REPORT 2014-15
WESTERN COALFIELDS LIMITED(A Subsidiary of Coal India Limited )
Board of Directors( During the year 2014-15)
Chairman-cum-Managing Director
Shri D.C. Garg - Upto 18.06.2014
Shri Om Prakash (Add.Charge) - From 05.07.2014 to 08.10.2014
Shri Rupak Dayal (Add.Charge) - From 09.10.2014 to 10.10.2014
Shri R.R. Mishra - From 11.10.2014
Functional Directors
Shri Om Prakash - Technical ( Upto 08.10.2014 )
Shri Rupak Dayal - Personnel ( w.e.f. 28.09.2011 )
Shri S.S. Malhi - Technical (w.e.f. 03.03.2013)
Government Directors (Part time)
Shri M.R. Anand - Economic Adviser Ministry of Coal
( Upto 26.03.2015)
Shri R. Mohan Das Director (Personnel & IR),
Coal India Limited, Kolkata
( w.e.f. 28.06.2007 )
Permanent Invitee(s)
Shri R. D. Tripathi - Chief Operations Manager,
Central Railway Mumbai
(upto 19.11.2014 )
Shri Arvind Kumar - Chief Operations Manager,
Central Railway, Mumbai
(From 26.12.2014 to 09.02.2015)
Company Secretary
Shri Rameher - (w.e.f. 01.02.2008)
3
WESTERN COALFIELDS LIMITED
BANKERS
STATE BANK OF INDIAUNION BANK OF INDIA
UCO BANKHDFC BANK
ALLAHABAD BANKBANK OF MAHARASHTRAPUNJAB NATIONAL BANK
ORIENTAL BANK OF COMMERCESTATE BANK OF HYDERABAD
CENTRAL BANK OF INDIAINDIAN BANKDENA BANK
STATUTORY AUDITORS
M/S V.K. SURANA & CO.CHARTERED ACCOUNTANTS
NAGPUR
BRANCH AUDITORS
M/S V.K. LADHA & ASSOCIATESCHARTERED ACCOUNTANTS
UJJAIN
M/S KPRK & ASSOCIATESCHARTERED ACCOUNTANTS
NAGPUR
M/S. B. CHHAWCHHARIA & CO.CHARTERED ACCONANTS
NAGPUR
REGISTERED OFFICECOAL ESTATE ,CIVIL LINES ,
NAGPUR – 440001
4
ANNUAL REPORT 2014-15
WESTERN COALFIELDS LIMITED
Ref : WCL/SECY/BD/AGM-40/2015/271 Date : 16/06/2015
N O T I C E
FORTIETH ANNUAL GENERAL MEETING
Notice is hereby given that the Fortieth Annual General Meeting of Western Coalfields
Limited will be held at 10.00 A.M. on Monday, the 22nd June, 2015 at the Registered
Office of the Company at Coal Estate, Civil Lines, Nagpur to transact the following
business :
I. ORDINARY BUSINESS:
1. To receive, consider and adopt the Audited Financial Statements of the Company for
the financial year ended March31,2015 including the Audited Balance Sheet as at
March 31, 2015 and Statement of Profit and Loss for the year ended on that date
and the Reports of Board of Directors, Statutory Auditor and Comptroller and Auditor
General of India thereon.
2 To confirm the dividend declared on equity shares for the financial year 2014-15 as
final dividend for the year 2014-15.
3. To appoint a Director in place of Shri R. Mohan Das(DIN: 01594255), who retires by
rotation in terms of Section 152(6) of the Companies Act 2013 and being eligible,
offers himself for re-appointment.
4. To appoint a Director in place of Shri Rupak Dayal (DIN: 05105263), who retires by
rotation in terms of Section 152(6) of the Companies Act 2013 and being eligible,
offers himself for re-appointment.
II. SPECIAL BUSINESS:
ITEM NO.1
Subject : Ratification of Remuneration of Cost Auditors of the Company for the financial
year 2015-16.
ORDINARY RESOLUTION :
To consider and if thought fit to pass with or without modification(s) the following resolution
as an ordinary resolution:
“RESOLVED THAT pursuant to Section 148(3) of the Companies Act, 2013 and Rule 14of the Companies (Audit and Auditors) Rules, 2014 and other provisions of the Act, thefollowing cost audit firms appointed as Cost Auditors be paid audit fees as per the followingdetails for conducting cost audit for 2015-16 in respect of Western Coalfields Limited:
5
WESTERN COALFIELDS LIMITED
*(a) In addition to fees, traveling and out of pocket expenses restricted to 50% of the audit feeswill be paid subject to production of documentary evidence.
(b) Service tax etc. will be paid extra as applicable on furnishing the registration number with theappropriate authority”.
“RESOLVED FURTHER THAT Chief of Internal Audit & Company Secretary to take necessary
action in the matter.”
By order of Board of Directors FOR WESTERN COALFIELDS LIMITED
Sd/- ( Rameher )
Company SecretaryRegistered Office :Coal Estate, Civil Lines, NAGPUR - 440 001CIN NUMBER : U10100MH1975GOI018626
NOTE :1. A member entitled to attend and vote at the meeting is also entitled to appoint a
proxy or proxies to attend and vote instead of himself/herself and such proxy need notbe a member of the Company. In order to be effective, the Proxy form duly completedshould be deposited at the registered office of the Company not less than forty-eighthours before the scheduled time of the Annual General Meeting. A proxy form is enclosed.
2. For Item No. 1 of Special Business, an Explanatory Statement, pursuant to Section102(1) of the Companies Act, 2013 with regard to the Special Business mentionedabove is enclosed.
3. Members are also requested to accord their consent for convening the meeting at ashorter Notice under section 101(1) of the Companies Act, 2013.
To1. Members/Shareholders, Western Coalfields Limited2. Statutory Auditors Western Coalfields Limited3. Secretarial Auditors Western Coalfields Limited4. Chairman-Audit Committee, WCL
Copy to
All Directors, Western Coalfields Limited, Nagpur
Company Secretary, Coal India Limited, Kolkata
General Manager (Finance) I/C-I WCL, Nagpur
Sl. No.
1
2
3
4
Name of the Firm & Address
M/S M.R. Pandit & Co. cost Accountants,Pawanvihar N-4, E-40, CIDCO,Aurangabad -431003 (M.S.)
M/S G.R. Paliwal & Co.,Cost Accountants,408A, Lokmat Square, Ramdaspeth,Nagpur- 440012 (M.S.)
M/S R.M. Bansal & Co., Cost Accountants,A-201.Twin Towers, Lakhanpur,Kanpur – 208024 (U.P.)
M/S Aman Malviya & Associates,Cost Accountants, B-12, Basement,Murli Bhavan, Lucknow - 226001 (UP).
Regn. No.
‘000268
100058
‘000022
‘00189
Zone Allotted
Zone I : Consisting of WCL Hqrs& Nagpur Area.
Zone II : Consisting of Wani,Majri, Wani North Areas and CentralWorkshop Tadali
Zone III : Consisting of Pench,Kanhan, Nandan Washery andPatherkhera Areas.
Zone IV : Consisting of Umrer,Chandrapur and Ballarpur Areas.
Audit Fees*
Rs.2,30,000/-
Rs.1,23,000/-
Rs.1,23,000/-
Rs.95,700/-
6
ANNUAL REPORT 2014-15
ANNEXURE TO THE NOTICE FOR ANNUAL GENERAL MEETING OF
WESTERN COALFIELDS LIMITED
EXPLANATORY STATEMENT UNDER SECTION 102(1) OF THE
COMPANIES ACT, 2013
SPECIAL BUSINESS
ITEM NO. 1:
Subject : To approve the remuneration payable to cost auditors for conducting
cost audit for 2015-16.
The Board of Directors of WCL in its 265th meeting held on 23/05/2015 passed a resolution
to appoint cost auditors to conduct cost audit for financial year 2015-16 for a Audit Fees amounting
to total of Rs.5,71,700 plus travelling expenses and out of pocket expenses restricting to 50% of
the audit fees payable subject to production of documentary evidence.
The Board of Directors approved the fee subject to the ratification by Members of the
Company in General Meeting in order to comply with Rule No. 14 of Companies (Audit & Auditors)
Rules 2014 on Remuneration of the Auditors and sub section (3) of section 148 of Companies
Act 2013.
In view of above mentioned provision, it has become mandatory that the remuneration
as recommended by the audit committee and approved by the Board of Directors for conducting
cost audit for the year 2015-16 be placed for ratification by the shareholders in the ensuing
General meeting.
Accordingly the resolution for approving the fees payable to cost auditors for conducting
cost audit for 2015-16 is placed before the Annual General Meeting for consideration and approval.
None of the Directors, Key Managerial Personnel or their relatives are interested or
concerned in the Resolution.
———————————
WESTERN COALFIELDS LIMITED
7
ANNUAL REPORT 2014-15
8
9
WESTERN COALFIELDS LIMITED
10
ANNUAL REPORT 2014-15
Chairman’s Statement
I feel great pleasure in reporting at the 40th Annual General Meeting thatWestern Coalfields Limited has improved its financial performance withstrong top line, i.e. revenues of ̀ 9652.74 Crores along with sturdy bottomline, that is pre-tax profit of ̀ 544.74 Crores during the financial year 2014-15.
I am happy to share that we are well positioned among the coal producersin the country on the strength of our strong balance sheet and sturdyperformance year after year, despite the stiff challenges posed by adversegeo mining conditions, paucity of reserves amenable to mega projects,constraints in land acquisition/physical possession, delay in forestry/environment clearances, the highest stripping ratio among all thesubsidiaries of CIL, strata control problems due to adverse geo tectonic
parameters and high susceptibility of coal to spontaneous heating/fire in underground mines andunviable ongoing/future projects.
Vision
It is well established fact that Energy is the prime mover for the growth of the nation and coal isthe primary source of energy in India. Indian Coal Industry in general and CIL in specific needsto augment the coal production at an unprecedented rate of growth to match with the growingdemand. Thus, Coal India Ltd has set its target to double its output from 494 Million Tonnes to1 Billion Tonnes by 2019-20.
Keeping the above target in mind, your company has also revisited its earlier long term projectionand has set its goal to enhance output to 60.00 MTY and beyond by the year 2020.
Accordingly, the Company has set its vision to emerge as a key player in the primary energy sectorcommitted to provide energy security to the country by attaining environmentally and sociallysustainable growth through best practices from mine to market.
Performance 2014-15
Financial Year 2014-15 had been a year full of challenges but the undeterred Company teamwith concerted efforts achieved coal production of 41.147 Million Tonnes against last year’s39.729 million tonnes, registering a growth of 3.6%.
The coal off-take during the fiscal was 41.247 Million Tonnes as against last year’s actual of39.945 Million Tonnes, registering a growth of 3.3%.
Coal desptaches through rail have registered growth as Company has dispatched 22.866 MillionTonnes coal through rail mode as against the AAP target of 22.182 Million Tonnes and lastyear’s actual of 22.374 Million Tonnes that is an achievement of 103% of target & a growth of2.2% over last year. The wagon loading was 16 rakes/ day as against the last year’s actual of15.6 rakes/day, registering a growth of 2.6%.
The sales realization during the fiscal was ` 9924.11 Crores which is 14% more than the lastyear’s realization of ̀ 8711.93 Crores. Additional revenue of ̀ 331.49 Crores generated throughe-auction during 2014-15 which was more than ̀ 310.01 Crores earned during the last year.
Your Company achieved overall productivity of 3.26 tonnes per man-shift during the year 2014-15,which is 111.6% of the target of 2.92 tonnes per man shift and registered appreciable growth of10.1% over last year’s actual of 2.96 tonnes per man shift. Company produced about 88.10% ofCoal through departmental means and the capacity utilization in departmental coal production was103.50%.during the year.
Friends,
11
WESTERN COALFIELDS LIMITED
Company continued to maintain high utilization of HEMM, which has been more than CIL’s averageduring the year 2014-15 and it is ranked 2nd in utilization of Dumpers & Dozers and 3rd in Draglines,Shovel and Drill amongst all Subsidiaries of CIL. For further strengthening, Company purchased 56 newequipment comprising of 60T Dumpers and Hydraulic Excavators against surveyed off during the fiscal.
Financial Performance
During the year, Company achieved turnover of ` 9652.74 Crores with a pre-tax profit of ` 545Crores, which is more than the last year’s pre-tax profit of ` 326 Crores. Net worth of thecompany has increased from ̀ 3479.48 Crores of last year to ̀ 3514.28 Crores during current fiscal.
Your Directors have recommended a dividend payment of ` 188.06 Crores @ 64.47% on thePaid up Capital of the company that is ̀ 297.10 Crores, a tangible demonstration of Company’sability to continue creating value.
Creation of Assets
Company has invested ̀ 518.79 Crores during FY 2014-15 on development of new mines andinfrastructure along with replacement of old assets, entirely from internal resources againstrevised budget of ̀ 575.00 Crores i.e. an achievement of 90.22% utilization, which is highestduring the last five years. An amount of ` 300.29 Crores was invested for acquisition of landduring the year. HEMM worth ` 92.00 Crores were purchased in addition to the undergroundequipment worth ` 9.98 Crores..
Planning Preparedness
Your company is operating 33 Ongoing Projects/Schemes with a sanctioned capacity of 36.16MTY and capital of ̀ 2775.56 Crores. Out of these, 22 projects have contributed 17.24 milliontonnes of coal production during the year 2014-15 and further 22.94 Million Tonnes of coalproduction has been envisaged from ongoing /future projects during FY 2015-16.
Thinking Beyond - Shri Piyush Goyal, Hon’ble Minister of State (IC), Power, Coal, New &Renewable Energy, Govt. of India unveiling Vision 2020 Document of WCL in the august presenceof Shri Chandrashekhar Bawankule, Hon’ble Energy Minister, Govt. of Maharashtra, Shri SutirthaBhattacharya, Chairman, CIL and Shri R.R. Mishra, CMD, WCL.
12
ANNUAL REPORT 2014-15
Unviable Projects
Many of the ongoing projects and most of the projects in future category are not viable to yield
requisite 12% IRR at 85% capacity, at notified price due to higher cost of production on account
of high stripping ratio, high wage bill, hike in land compensation rate by Govt. of Maharashtra,
etc. Unviable projects cannot take off as no investment can be made without entering in to cost
plus agreement with prospective/willing consumers.
Initiatives have been taken to bring the unviable projects out of the ambit of un-viability which
enabled the company in opening of projects viz, Makhardhokra I OC, Penganga OC and
Bhanegaon OC during the year 2014-15. Further planned for opening of 12 nos of projects
during in FY 2015-16 and 11 Nos projects in FY 2016-17.
Exploration and addition in Reserves
Exploratory drilling to the tune of 111014.50 meters has been carried out during the fiscal by
CMPDIL in WCL command area, which includes 75867.65 meters in CIL Blocks and 35146.85
meters in Captive Blocks. The purpose of drilling was for value addition and accordingly revised
Geological Reports have been prepared. Reserves of 314.797 MT (proved 304.914 MT) in CIL
Blocks and 90.928 MT reserves in Non-CIL Blocks have been established.
Technology infusion in Underground Mines
For sustaining the current production levels and to achieve the targeted growth in the coming
years, production from UG mines needs to be augmented, as the production from OC mines will
be on decline due to paucity of suitable reserves in the company. Initiatives have been taken for
adoption of mass production and continuous mining technology in UG mines for augmenting
production and productivity.
Continuous Miner :
Currently, Continuous Miner is in operation at Tandsi UG mine and during the year 2014-15 bids
were invited for introduction of Continuous Miner on partial hiring basis with minimum guaranteed
production at Tawa-II UG an operating mine. Further, it is proposed to introduce the said
technology at two other operating mines i.e. Tawa-I and Chattarpur-I during the fiscal 2015-16.
Introduction of Man Riding
In order to eliminate long arduous travel, fatigue and to improve the efficiency of workmen in UG
mines, Man Riding Systems have been installed in eight UG mines. During the fiscal 2014-15,
Man Riding System was commissioned on trial basis in Adasa UG Mine, Nagpur Area.
Further planned for installation of two more Man Riding Systems at Rajur UG and Neharia UG
Mine during the year 2015-16. To cater the needs of other underground mines, 15 Nos. of Man
Riding Systems are programmed for installation by FY 2019-20.
Introduction of Universal Drilling Machines (UDM)
Your company has played a leading role in mechanizing the drilling for face as well as roof
support. So far 45 Nos. of Universal Drilling Machines (UDMs) have been deployed in the ines.
This resulted in significant improvement in blasting efficiency leading to increased availability of
coal and also improvement in Green Zone support with added safety.
13
WESTERN COALFIELDS LIMITED
Energy Efficiency initiatives:
Accepting the fact that there is scope to save energy by rationalization of operations, yourCompany has undertaken various initiatives.
Power consumption during the year has been reduced over previous year by 6.77% (42.941Million kWh) due to Implementation of various energy conservation measures and less rainfallby 45% than previous year.
Material Management
All the procurement cases of material were finalized through e-tendering with e-price bid in thecompany. Total 1551 nos. of e-tenders were floated with estimated amount of ` 1173 Croresduring the year 2014-15.
Your company has maintained its position at the top amongst CIL subsidiaries by keeping thelowest inventory during the fiscal, that is inventory of 0.77 month’s consumption against 0.75month during 2013-14. i.e. 1.86% increase despite of 5% increase in stores and spares’ cost.Company has realized ̀ 18.70 Crores by means of scrap disposal during the fiscal.
Environment Management
Coal mining is environmentally sensitive activity and mitigation of its adverse impacts is imperativefor sustainable development. Your company is aware of its responsibility and has taken initiativesfor environmental protection and pollution mitigation measures in all the operating mines.
Your Company is committed to restore the degraded land through reclamation, afforestationand green belt development. In this pursuit, 182.69 lakh saplings have been planted upto31.03.2015 covering an area of 6621.20 Ha in its command area in the state of Maharashtraand Madhya Pradesh. Progress of afforestation in 10 major Open Cast Projects producingmore than 5 million cubic meter (Coal+OB) is monitored every year through Satellite Imagerywhich indicates the increase in green cover area by 11.26 Sq. Kms during the years 2008-2014.
In furtherance to corporate commitment, your company has completed plantation over 125 Hain Chandrapur (100 Ha) & Yavatmal (25 Ha) districts through Forest Development Corporationof Maharashtra for regeneration of degraded forest land outside its command area in the stateof Maharashtra, as a part of CSR activities for securing “Green Credits” during the year.
Acquisition of Land
Your company has made remarkable achievement in land acquisition and physical possessionfor mining and allied activities during the FY 2014-15. The Company could acquire 1363.463 Haof land under CBA Act.
Further, through various initiatives to resolve contentious issues and trust building measures,the company took all time high physical possession of 1370.43 Ha. of land which is 5.8 timesyearly average of 230 Ha.
During the fiscal, total 09 Project affected families, have been resettled by providing resettlementgrant as opted by land oustees, within the provisions of R&R Policy of CIL. Administrativeapproval was accorded by Company Board for Employment/monetary compensation in lieu ofemployment to 224 land oustees.
Corporate Social Responsibility
With a view to bring meaningful change in the lives of our most important stake holders that is,populace residing in our command area in particular and the society at large, your company undertookmassive CSR initiatives during the year 2014-15 and spent about ` 20.15 Crores, which is ̀ 12.18Crores more than the prescribed requirement of ̀ 7.97 Crores under provisions of Companies Act 2013.
14
ANNUAL REPORT 2014-15
The activities undertaken broadly covers; Infrastructure Support, Education, Drinking Water, Health-
care, Swachch Vidyalaya Abhiyaan, Environment, Sustainable Development, Solar Lights and Social
Empowerment.
Further, to mitigate the hardships faced due to shortage of water by villagers, your company has
taken an initiative under ‘Jal-Sahayog’ through a pilot project for gainful use of mine discharge water
for drinking and irrigation purpose at Boregaon village, Nagpur Area. Successful implementation of
this project fulfilled the requirement of water at this village.
WELFARE :
During the year the company incurred an expenditure of ̀ 96.06 Crores for improving the quality of
life, medical & health care services and educational facilities for its employees and their wards.
An initiative has been taken to ensure hassle free post retirement medical treatment to the members
of CPRMSE (Contributory Post Retirement Medicare Scheme for Executives of CIL) by providing
‘Aarogya – Gold Card’ i.e. a photo ID with portal based access to medical history.
HUMAN CAPITAL MANAGEMENT
An initiative has been taken in the Company to create an online portal for uploading individual
employee data with regard to qualification, skills acquired, experience, hobbies, training requirement
etc. for effective planning, training and gainful utilization of human resources.
Further, Gen-next executives were mobilized to be a part of cohesive force in the decision making
process for transforming them into future leaders to shoulder the responsibility
Nurturing Future Leaders - 1st batch of Gen-next Leaders of WCL with Shri P.S.
Bhattacharyya, Ex-Chairman, Coal India Ltd and Shri R.R. Mishra, CMD, WCL, Shri Rupak
Dayal, Director (Personnel), WCL and Shri S.S. Malhi, Director (Tech) OP, WCL
15
WESTERN COALFIELDS LIMITED
Safety
Safety is always our top priority and we are continuously thriving for achieving the superior standards
through adoption of best practices. Thrust is given to boost safety awareness at the grass root level
so as to prevent repetitive nature of accidents. Participative Safety Management is also practiced at
the unit level through monthly Safety Committee meetings and Tri-partite Safety Committee meetings
at Area Level with active participation of DGMS officials as well. Special safety awareness drives on
various subjects like green roof support, safe practices in haulage, belt conveyors, face equipment,
ventilation, dust suppression, explosives and blasting were also organized by Internal Safety
Organization (ISO), to improve the safety standards, practices and safety awareness etc.,
During the fiscal 2014-15 serious accidents were reduced by six numbers in comparison to last
year while the number of fatal accidents remained at same level.
Industrial Relations
Industrial Relations during the fiscal 2014-15 has been peaceful, cordial and harmonious in the
company. However, there was a General Strike called by all the Five Central Trade Unions in all the
Subsidiaries of Coal India Ltd., for five days during 06/01/2015 to 10/01/2015 over 10 point charter
of demands of National issues. The strike was called off on 7th Jan. 2015.
Awards and Accolades
I feel pleasure to share with you that your company was bestowed with following awards during
the year 2014-15 –
H “Excellence Award for CSR” by Bureaucracy Today for best practices in CSR
under Mini Ratna Category at New Delhi in the month of June 2014.
H “Organization with Innovative HR” during Asia Pacific HRM Congress, at
Bengaluru on 11th September 2014.
H “Corporate Performance Award 2013-14” for MoU Excellent Rating by Coal
India Ltd. On 1st November 2014.
H “Most Caring Companies of India Award” by World CSR Congress 2014 at
Mumbai on 18th Feb. 2015.
H National Safety Award for Accident Free Mine for Tawa-I UG Mine by Hon’ble
President of India, New Delhi, 20th March 2015
Your company stood First in Kabbadi and Body Building, Second position in Table Tennis in CIL
Inter-Company Tournament. Company Rescue Team secured awards in individual capacity for
Drill, Turnouts, Rescue Work and Rescue and Recovery work, during All India Mines Rescue
Competition held at Ramgarh, CCL Ranchi.
Corporate Governance
Company has complied with conditions (except a few which are under progress) of Corporate
Governance as stipulated in the Guidelines on Corporate Governance issued by the Department of
Public Enterprises, Government of India. As required under the said guidelines, a separate section
on corporate governance has been added to the Director’s Report and a certificate regarding
compliance of conditions of Corporate Governance obtained from the practicing Company Secretary.
16
ANNUAL REPORT 2014-15
“Excellent” rating was accorded by DPE in the field of Corporate Governance to your Company for
the year 2013-14. This year also, as per self-evaluation, your company’s Corporate Governance
compliance stood at 94.87%.
Last but not the Least
We are committed to achieve growth despite stiff challenges while ensuring highest priority to
the Corporate Governance, Environment and Corporate Social Responsibility.
We firmly believe that we will continue to maximize the returns of Company’s key stake holders
- its shareholders, customers, employees and local populace.
I call upon all of Company family to arise, aspire, perspire and move towards for not only
attaining the goal of 45.50 Million Tonnes of coal production and offtake of 45.50 Million Tonnes
during FY 2015-16 but also to ensure requisite growth in the coming years to reach 60.00
Million Tonnes coal production by 2020 in line with our Vision 2020. Thus, we will be fulfilling
our bounden duty to energize India and in turn contributing to the progress of the nation.
With Best Wishes,
(Rajiv R Mishra)
Chairman-cum-Managing Director
17
Shri R.R. Mishra, CMD,
WCL rece iv ing the
'Corporate Performance
Award - 2013-14' for
Excellent MOU rating from
Shri S.K. Srivastava,
Secretary (Coal), MOC,
Govt. of India on the
occasion of Coal India
Foundation Day on 1st
N o v e m b e r , 2 0 1 4 i n
Kolkata.
An Initiative - on the
occasion of launching
' P R A G A T I ' a n
initiative by WCL Shri
A n i l S w a r u p ,
Secretary (Coal),
Govt. of India, Shri
A.K. Debnath, CMD,
CMPDIL, Shri R.R.
Mishra, CMD, WCL,
Shri Rupak Dayal,
Director (Personnel),
WCL and Shri S.S.
M a l h i , D i r e c t o r
(Technical) OP, WCL.
WESTERN COALFIELDS LIMITED
WCL conferred with 'Organisation
with Innovative HR' at Asia Pacific
HRM Congress - 2014 held in
Banga lo re on 11th & 12th
September, 2014.
Western Coalfields Ltd. conferred
with 'Most Caring Companies of
India Award-2014' by World CSR
Congress on 18th February, 2015 in
Mumbai.
ANNUAL REPORT 2014-15
18
19
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LF
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LIM
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D
WESTERN COALFIELDS LIMITED
BALANCE SHEET AS AT 31st MARCH
PARTICULARS
SOURCE OF FUND
SHARE CAPITAL
RESERVES & SURPLUS
PROFIT & LOSS A/C
LOAN FUND
DEFERRED TAX LIABILITIES
LONG TERM LIABILITIES & PROVISIONS
T O T A L
APPLICATION
FIXED ASSETS :
GROSS BLOCK
LESS: DEPRECIATION
LESS: IMPAIRMENT OF ASSETS
NET BLOCK
CAPITAL WORK IN PROGRESS
DISCARDED/SURVEYED OFF ASSETS
INVESTMENTS
DEFERRED TAX ASSETS
LONG TERM LOANS & ADVANCES
OTHER NON-CURRENT ASSETS
CURRENT ASSETS, LOANS & ADVANCES:-
CURRENT INVESTMENT
INVENTORIES
SUNDRY DEBTORS
CASH & BANK BALANCE
LOANS & ADVANCES
OTHER CURRENT ASSETS
SUB TOTAL
LESS: CURRENT LIABILITIES &
PROVISIONS
NET CURRENT ASSETS
T O T A L
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10
788.67 1049.59 1343.88 1680.34 2089.39 984.68 1052.52 1123.42 1178.82 1210.13
1429.36 1673.10 1794.26 1843.91 1932.82 1988.80 2013.77 2039.50 2050.57 2054.06
135.49 122.97 112.98 133.60 109.52 102.56 101.97 84.92 - -
63.10 32.65 29.18 15.22 20.48 - - - - -
- - - 0.28 0.00 2155.89 3273.04 3554.40 3788.05 4128.08
2713.72 3175.41 3577.40 3970.45 4449.31 5529.03 6738.40 7099.34 7314.54 7689.37
3480.99 3668.24 3782.45 3986.99 4137.27 4294.58 4490.39 4493.04 4625.57 4909.70
2072.22 2251.34 2398.13 2539.15 2651.49 2769.51 2884.24 2853.64 2912.97 3083.65
81.93 80.63 85.75 89.39 93.83 100.70 104.01 101.77 104.32 104.42
1326.84 1336.27 1298.57 1358.45 1391.95 1424.37 1502.14 1537.63 1608.28 1721.63
204.41 174.85 187.65 217.31 252.63 274.53 269.50 293.19 335.88 419.11
10.49 11.29 11.36 13.23 16.09 17.31 19.50 21.13 - -
320.90 288.81 272.77 240.68 192.54 128.36 96.27 80.23 48.14 -
151.07 140.25 315.83 345.33 340.98 350.13 455.72 578.44 439.04 464.13
- - - - - 58.21 61.99 56.12 59.90 88.18
- - - - - - - - - 0.58
- - - - - 32.09 32.09 450.14 312.20 137.31
287.77 363.97 301.43 288.46 294.17 437.09 570.60 667.33 743.07 757.11
235.06 238.14 126.02 191.52 109.18 25.20 13.97 471.27 468.93 672.92
1513.75 1296.62 2262.20 3033.11 3919.96 4063.78 5503.40 4243.83 4626.81 5138.03
1518.80 1983.95 2490.98 2868.96 1784.73 704.54 860.70 1104.50 991.40 988.19
351.20 432.06 427.52 320.14 362.14
3555.38 3882.68 5180.63 6382.05 6108.04 5613.90 7412.82 7364.59 7462.55 8055.70
2855.37 2658.74 3689.41 4586.60 3852.92 2337.78 3079.54 2831.99 2639.25 3059.96
700.01 1223.94 1491.22 1795.45 2255.12 3276.12 4333.28 4532.60 4823.30 4995.74
2713.72 3175.41 3577.40 3970.45 4449.31 5529.03 6738.40 7099.34 7314.54 7689.37
NOTE : 1. Figures in this statement are rearranged from the printed accounts excluding contra items.
2. The Financial Statements are prepared on the basis of Schedule III of the Companies Act, 2013 as notified by Ministry of Corporate Affairs from the F.Y. 2014-15.
Figures prior to 2010-11 are as per pre-revised Schedule III.
3. Surveyed Off Assets amounting ` 26.62 Crores (P.Y. ` 25.32 crores) and ` 25.46 crores (P.Y. ` 24.16 Crores) are including in Gross Block and Net Block for the year
2014- 15 and 2013-14 respectively
(` in crores)
20
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-15
WESTERN COALFIELDS LIMITED
STATEMENT OF PROFIT AND LOSS( EXCLUDING CONTRA ITEMS)
NOTE : 1. Figures in this statement are rearranged from the printed accounts excluding contra items.
2. The Financial Statements are prepared on the basis of Schedule III of the Companies Act, 2013 as notified by Ministry of Corporate Affairs from the F.Y. 2014-15. Figures prior
to 2010-11 are as per pre-revised Schedule III.
3. Welfare Expenses amounting to ` (5.65) crores (P .Y. ̀ 21.64 crores) and ̀ 16.17 crores (P.Y. ` 16.62 Crores) are included in employees Benfefit expenses and other exprnses
for the year 2014-15 and 2013-14 respectively.
--
PPPPPARARARARARTICULARSTICULARSTICULARSTICULARSTICULARS 2005-062005-062005-062005-062005-06 2006-072006-072006-072006-072006-07 2007-082007-082007-082007-082007-08 2008-092008-092008-092008-092008-09 2009-102009-102009-102009-102009-10 2010-112010-112010-112010-112010-11 2011-122011-122011-122011-122011-12 2012-132012-132012-132012-132012-13 2013-142013-142013-142013-142013-14 2014-152014-152014-152014-152014-15
NET REVENUE FROM OPERATIONS 4382.35 4392.96 4909.18 5636.01 5836.63 5994.27 6750.01 6705.15 6613.83 7325.39
OTHER OPERATING REVENUE 160.08 223.13
OTHER INCOME 328.83 387.13 507.63 558.94 560.35 464.78 680.69 717.78 473.81 429.12
ACCRETION/(DECRETION) IN STOCK 83.87 73 .07 -54.08 -34.22 13 .18 129.60 128.96 89 .31 84 .15 0.63
(A) (A) (A) (A) (A) 4795.054795.054795.054795.054795.05 4853.164853.164853.164853.164853.16 5362.735362.735362.735362.735362.73 6160.736160.736160.736160.736160.73 6410.166410.166410.166410.166410.16 6588.656588.656588.656588.656588.65 7559.667559.667559.667559.667559.66 7512.247512.247512.247512.247512.24 7331.877331.877331.877331.877331.87 7978.277978.277978.277978.277978.27
EMPLOYEES BENEFIT EXPENSES 1420.21 1497.59 1910.02 2967.70 2595.21 2780.58 3991.41 4296.43 4241.11 4454.04
COST OF MATERIAL CONSUMED 724.64 750.69 762.88 872.72 856.32 863.43 920.26 998.24 1143.82 1149.93
POWER & FUEL 184.68 221.56 225.63 229.09 242.85 259.20 281.94 330.20 329.95 309.72
REPAIRS & MAINTENANCE 110.70 111.52 117.40 126.62 122.86 68 .46 64 .09 68 .05 51 .12 64 .34
CONTRACTUAL EXPENSES 383.14 396.10 491.84 536.10 570.98 467.51 501.01 537.90 604.97 708.83
CORPORATE SOCIAL RESPONSIBILITY 23.95 20 .15
WELFARE EXPENSES 211.78 223.81 228.14 239.99 269.17 223.71 253.80 82 .54
DEPRECIATION/AMMORTIZATION/ IMPAIRMENT 164.50 178.28 185.65 176.44 171.41 188.16 195.65 188.53 192.23 236.07
FINANCE COSTS 4.31 5.55 4.33 3.97 4.85 3.30 3.20 2.87 2.26 -
P R OV I S I O N S -133.00 -19.07 45 .68 -25.01 -17.57 110.25 220.62 34 .15 116.49 210.69
OBR ADJUSTMENT 35.16 158.57 262.77 280.37 305.61 314.56 458.95 279.96 47 .61 15 .97
OTHER EXPENSES 187.00 223.66 208.32 241.65 346.63 249.35 237.00 252.94 255.80 263.79
(B) (B) (B) (B) (B) 3293.123293.123293.123293.123293.12 3748.263748.263748.263748.263748.26 4442.664442.664442.664442.664442.66 5649.645649.645649.645649.645649.64 5468.325468.325468.325468.325468.32 5528.515528.515528.515528.515528.51 7127.937127.937127.937127.937127.93 7071.817071.817071.817071.817071.81 7009.317009.317009.317009.317009.31 7433.537433.537433.537433.537433.53
PROFIT/LOSS FOR THE YEAR (A-B)(A-B)(A-B)(A-B)(A-B) 1501.93 1104.90 920.07 511.09 941.84 1060.14 431.73 440.43 322.56 544.74
PRIOR PERIOD ADJUSTMENTS 54.97 50 .46 -10.15 -5 .03 10 .81 -7 .84 -8 .77 11 .56 -3 .30 -0 .05
PROFIT AFTER PRIOR PERIOD ADJUSTEMENT 1446.96 1054.44 930.22 516.12 931.03 1067.98 440.50 428.87 325.86 544.79
PROVISION FOR TAXATION 472.03 391.70 487.96 224.15 275.81 559.28 239.37 227.29 -37.13 287.98
PROVISION FOR DEFERED TAX (ASSET)/LIABILITIES -15.61 -19.64 -169.52 -43.46 9.61 -29.62 -105.59 -122.73 139.40 -56.34
PROFIT AFTER TAX 990.54 682.38 611.78 335.43 645.61 538.32 306.72 324.31 223.59 313.15
(` in crores)
21
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WESTERN COALFIELDS LIMITED
CAPTIAL EMPLOYED, NET WORTH AND RATIOS
PPPPPARARARARARTICULARSTICULARSTICULARSTICULARSTICULARS 2005-062005-062005-062005-062005-06 2006-072006-072006-072006-072006-07 2007-082007-082007-082007-082007-08 2008-092008-092008-092008-092008-09 2009-102009-102009-102009-102009-10 2010-12010-12010-12010-12010-111111 2012012012012011-121-121-121-121-12 2012-132012-132012-132012-132012-13 2013-142013-142013-142013-142013-14 2014-152014-152014-152014-152014-15
CAPITAL EMPLOYED (` in crores) 2028.44 2561.71 2846.06 3153.90 3647.08 4686.32 5822.03 6053.62 6431.58 6717.37
NET WORTH (` in crores) 2304.21 2650.31 2814.14 2914.11 3099.86 3236.56 3315.22 3410.91 3479.48 3561.29
PAID UP CAPITAL (` in crores) 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10
NET WORTH PER RUPEE OF PAID UP CAPITAL 7.76 8.92 9.47 9.81 10.43 10.89 11.16 11.48 11.71 11.99
LOAN FROM CIL AND OTHERS (`in crores) 135.49 122.97 112.98 133.60 109.52 102.56 101.97 84.92 0.00 0.00
DEBT/EQUITY RATIO 0.06:1 0.05:1 0.04:1 0.05:1 0.04:1 0.03:1 0.03:1 0.02:1 0.00 0.00
NET PROFIT(BEFORE PPA & TAX) (` in crores) 1501.93 1104.90 920.07 511.09 941.84 1060.14 431.73 440.43 322.56 544.74
NET PROFIT FOR THE YEAR AS % TO 74.04 43.13 32.33 16.21 25.82 22.62 7.42 7.28 5.02 8.11CAPITAL EMPLOYED
NET PROFIT(BEFORE TAX BUT AFTER 1446.96 1054.44 930.22 516.12 931.03 1067.97 440.50 428.87 325.86 544.79PPA) (` in crores)
NET PROFIT AFTER PPA AS % TO 71.33 41.16 32.68 16.36 25.53 22.79 7.57 7.08 5.07 8.11CAPITAL EMPLOYED
DEBTORS AS % TO GROSS SALES 8.44 8.01 5.73 5.59 3.90 2.08 1.59 6.34 6.40 7.84
INVENTORY OF STORES & SPARES IN NO.OF 1.04 1.05 1.09 1.05 1.06 1.10 1.09 0.93 0.75 0.82MONTHS CONSUMPTION.
VALUE ADDED (` in crores) 3485.32 3414.45 3789.27 4426.82 4667.86 4895.92 5676.58 5466.02 5224.21 5866.37
VALUE ADDED /EMPLOYEE (` in ‘000) 517.30 520.50 590.60 708.38 766.86 829.21 996.08 994.55 995.39 1171.61
22
ANNUAL REPORT 2014-15
23
WESTERN COALFIELDS LIMITED
DIRECTORS’ REPORTTo
The Members/Shareholders,
Western Coalfields Limited.
Your Directors have pleasure in
presenting the 40th Annual Report of Western
Coalfields Limited and Audited Accounts for
the year ended 31st March, 2015 together with
the report of the Statutory Auditors and report
and review of the Comptroller and Auditor
General of India thereon.
2. LOCATION OF UNITS
The mines of your Company arelocated in Maharashtra and South-West Madhya Pradesh. For Effectiveadministrative control and operations,
the mines have been grouped in 10(Ten) Areas as follows:
3. PERFORMANCE
During the year 2014-15 WCL hasachieved coal production of 41.147Million Tonnes against the AAP targetof 44.0 million tonnes which is 2.853Million tonnes less than the AAP targetand 1.418 million tonnes more than
last year’s actual of 39.729 milliontonnes.
Coal offtake during 2014-15 was41.247 million tonnes which is 3.753
million tonnes less than targeted45.000 million tonnes i.e. 91.7%achievement and 1.302 million tonnesmore than last year’s actual of 39.945million tonnes.
Overburden removal during the year
2014-15 was 122.914 million cubic meter
against the AAP target of 130.00 million
cubic meter which is 7.086 million cubic
meter less than the target and 2.838
million cubic meters more than last year’s
actual of 120.076 million cubic meter.
Shortfall in coal production during 2014-
15 was mainly due to following reasons:-
(i) Non materialisation of production from
ongoing/future projects as envisaged
in the annual plan on account of non/
delayed opening of un-viable projects
(ii) Termination of HoE (Hir ing of
Equipment) contracts, due to non
commencement of awarded work/
poor performance.
(iii) Poor performance of HoE (Hiring of
Equipment) contractors against
awarded work for OB removal/coal
production affected performance.
(iv) Restricted working space at HLOC
mine as the mine working reached the
boundary and presence of major
geological fault.
(v) Incidences of spontaneous heating/
fire, restricting the scale of production
in UG mines
(vi) Adverse geo-mining conditions such
as poor roof, high water percolation,
soft floor, geological disturbances
(Dyke/faults) affected coal production
in UG mines.
(vii)Shortage of Sand for Stowing at New
Majri UG
3.1 Performance of Production (Coal and
Washed Coal), Productivity, Coal Sales
and Off-take against Annual Action Plan
(AAP) targets and as compared to last
year’s is given in the following table:
Area District State Mines as on 1.4.2015
Chandrapur, Ballarpur,Majri, Wani and Wani North
Pench and Kanhan
Pathakhera
TTTTTotalotalotalotalotal
Chandrapur& Yavatmal
Chhindwara
Betul
Maharashtra
Madhya
Pradesh
Madhya
Pradesh
Under-
ground
Opencast Total
Nagpur and Umrer Nagpur Maharashtra 7
2 7
7
-
4 1
1 7
3 9
2 0
6
8 2
10
12
13
0 6
4 1
24
ANNUAL REPORT 2014-15
A Shovel-Dumper in operation at one of the Opencast Mine of WCL
3.2 Mechanised Underground Coal
Production
The Mechanised Coal Production from
Underground mines during the year
2014-15 was 7.405 million tonnes
which is 0.158 million tonnes less than
last year’s actual of 7.563 million
tonnes. Major reasons for shortfall in
coal production due to Restricted
working space on account of closure
of working due to
i) spontaneous heating/fire at DRC
3&4 and DRC6,7,8,
ii) adverse geo-mining conditions such
as-poor roof, high water percolation,
soft floor, geological disturbances
(Dyke/faults) at Kumbharkhani,
Rajur, Morpar, Saoner-II, Vishnupuri-
I & Vishnupuri-II UG.
S L
N O Target
AAP
36.100
7.900
44.000
45.00
44.941
0.108
0.108
Coal Production
OC (Mill Tonnes)
Coal Production
UG (Mill Tonnes)
Total Coal
Production
(Mill Tonnes)
Total Off-take
(Mill Tonnes)
Despatches
(Sales)
(Mill Tonnes)
Washed Coal
Production
(Mill Tonnes)
Despatches to
Steel Plants
(Mill Tonnes)
2013 -14Actual
31.999
7.730
39.729
39.945
39.953
0.120
0.118
Actual
33.581
7.566
41.147
41.247
41.350
0.0727
0.0747
%
Achieve-ment
overTarget
%Growth Over
lastyear
2 0 1 4 - 1 5
PARAMETERS
93.0
95.8
93.5
91.7
92.0
67.3
69.2
i)
ii)
iii)
iv)
v)
vi)
vii)
4.9
-2.1
3.6
3.3
3.5
-39.4
-36.7
25
WESTERN COALFIELDS LIMITED
iii) Shortage of Sand for Stowing at
New Majri UG on account of pending
clearance from Govt. of Maharashtra
for Kunada Sand Ghat
3.3 Productivity & overall System
Capacity Utilisation
Productivity per manshift of the Company
has gone up to 3.26 tonnes during the year
2014-15 which is more than the target of
2.92 tonnes and also more than last year’s
actual of 2.96 tonnes. SDL productivity
during the year was 78 Tonnes / Machine/
day against AAP Target of 81 TPD and
LHD productivity was 164 Tonnes /
Machine/day against AAP Target of 157
TPD. Overall system capacity utilization
of WCL for the year 2014-15 was 108.22 %.
3.4 Coal Stock
Coal Stock at the end of fiscal 2014-15
was 5.500 million tonnes as compared
to last years 5.600 million tonnes.
4. SAFETY
4.1 During the financial year 2014-15, there
had been a reduction of six serious
accidents vis a vis 2013-14. However,
there was no reduction in the number of
fatal accidents.
Skilled human resource are the biggest
asset for our company, hence their safety
is of paramount importance to us. Thrust
is being given in your company to increase
safety awareness at the grass-root level
in order to prevent repetitive nature of
accidents and accidents due to
negligence and casual attitude.
Participative safety management is being
practiced at the unit level by way of safety
committee meetings conducted every
month. Besides, tripartite safety committee
meetings at Area level with active
participation of DGMS officials are also
being held. Training and re-training of our
workforce to follow safe practices at the
work place has also been our thrust area
in 2014-15.
4.2 Steps Taken during 2014-15 to improve
safety and reduce accidents :
1) Special Safety Drives on various
subjects and operations were
conducted in all the mines of WCL in
order to assess the safety standards
of the mines and safety awareness
amongst the workmen
2) Special stress has been given on
green roof support & qualitative face
suppor t by roof bolting. Resin
capsules has also been introduced in
many underground mines specially in
watery strata.
3) Pit top safety talks were regularly
given in all the mines and the same
are being monitored during ISO
inspections.
4) Pit safety committees of all mines
have been re-activated and are being
attended by Area level and Hq. level
officers. The implementation of the
recommendations of these
committees are implemented and
monitored regularly.
5) Back shift inspections by senior
officers of mine and area have been
intensified.
6) CIL officers who were trained by
SIMTARS, Australia were engaged for
imparting training and upgrading the
knowledge of executives and
supervisors in evaluation of risk in the
mine, management of the risk and
preparation of Safety Management
Plan. On the basis of this training,
Safety Management Plans (SMPs)
have been prepared and submitted
26
ANNUAL REPORT 2014-15
to CIL for all mines of WCL. The same
are being reviewed at colliery level
periodically. A SIMTARS accredited
executive from CIL had visited Pench
Area of WCL on 16.12.2014 and
17.12.2014 to update and review the
Safety Management Plan (SMP)
prepared for each underground mine
of Pench Area and its implemen-
tation.
7) A subsidiary level bipartite meeting
was conducted between WCL
management and DGMS officials on
07.08.2014. During this meeting, Area
General Managers and Area Safety
Officers were advised to keep strict
vigil on unsafe practices.
8) Similarly, a subsidiary level tri-partite
meeting was also conducted on
27.08.2014 which was attended by
WCL management, DGMS officials
and Trade Union representatives.
Suggestions obtained from CMD, DT,
DGMS officials and trade union
representatives were noted for
improving the standard of safety so
that accidents could be avoided. The
next tr i-par tite meeting will be
conducted by May 2015.
9) Meetings with Area Safety Officers
were conducted periodically to
evaluate the implementation status of
various safety measures in the mines.
The mine inspection repor ts of
Workmen Inspectors (in form U) and
other officials are regularly monitored
and rectification of deficiencies
pointed out are ensured.
10) A high level committee had inspected
all the mines of WCL to ascertain the
preparedness for monsoon against
water danger.
11) General Manager(S&C) attends the
Safety Committee meeting of all
mines where fatal accident has taken
place during 2014-15 in order to
review the safety status of the mine.
12) The Annual Safety Fortnight – 2014
mine inspections were conducted
from 27.11.2014 to 10.12.2014
wherein each mine was inspected by
multi-disciplinary team in order to
ensure that all operations are being
conducted safely and as per statute.
4.3 Statistics of Fatal and Serious
Accidents (Financial Year)
Statistics of Fatal and Serious
Accidents (Calender Year)
4.4 Technical Contribution in 2014-15 :
i) Vetting of operational plans of all
mines by ISO at Hq.
ii) RMR study for development districts
for support design.
Particulars
No. of fatal accidents
Fatalities
Fatality rate per million Tn. production
Fatality rate per 3 lakh manshift
No. of serious accidents
Serious Injuries
S.Injury rate per million Tn. production
S.Injury rate per 3 lakh manshift
2014 -15
(Financialyear)
2013 -14(Financial
year)
8
9
0.22
0.21
3 3
3 5
0.85
0.83
8
8
0.2
0.18
3 9
4 0
1.00
0.89
8
9
0.23
0 .2
4 5
4 7
1.19
1.04
Particulars
No. of fatal accidents
Fatalities
Rate per million tonne output
Rate per 3 lakhs manshift
No. of serious accidents
Serious Injuries
Rate per million tonne output
Rate per 3 lakhs manshift
2014 -15
(Calenderyear)
2013 -14(Calender
year)
9
1 0
0.24
0.24
3 6
3 8
0.92
0.91
27
WESTERN COALFIELDS LIMITED
iii) Accident enquiry in case of fatal &
serious accidents and enquiry into
major dangerous occurrences /
incidents .
iv) Analysis of all accidents and
incidents so as to decide preventive
safe practices.
4.5 Special Achievements in 2014-15 :
(i) In addition to statutory initial training
imparted to contractor workers, a
special training is being imparted to
contractor workers on safety
aspects. In this connection, 2418
numbers of contractor workers
(engaged as dumper/ tipper/
excavator and pay loader operators)
to be imparted the above special
training has been identified. A
schedule of training of contractor
workers at different VTC centre of
WCL has been prepared in
consultation with HRD Deptt, WCL
and the same is being conducted
and is expected to be completed by
8th June 2015.
(ii) Workshop on functional skill
updation programme for Ventilation
Officers was conducted at MDI ,
Nagpur from 08/09/2014 to 10/09/2014
(iii) Workshop on functional skill
updation programme for Safety
Officers was also conducted at MDI
Nagpur from 15/12/2014 to 17/12/2014.
(iv) Workshop was also conducted on
22.01.2015 at WCL Hq. on ‘Control
of Spontaneous Heating / Fire in UG
mines. This workshop was
conducted by expert faculty Shri
N.Sahay, Sr. Scientist, CIMFR,
Dhanbad and was attended by Area
Safety officers, Managers and other
senior officers of WCL.
(v) In WCL, seven numbers of Gas
Chromatographs have been
procured. Six stationary type have
been installed in 6 areas (Ballarpur,
Chandrapur, Majri, Nagpur, Kanhan
and Pathakhera) and one portable
type has been commissioned at
Mines Rescue Station, Nagpur.
(vi) In WCL, there are nine Man riding
Systems installed in 8 mines [i.e,
Tandsi, Mohan, Saoner-1, Tawa-1,
Shobhapur (2nos.) Kumbharkhani,
Ballarpur Colliery 3&4 and
Chattarpur-1 Another man-riding
system has been installed at Adasa
UG mine, Nagpur Area and is likely
to be commissioned shortly.
Future Programme :- Further, eight
mines have been identified for
installation of man-riding system. [
viz. Saoner-2, Nandgaon Incl., HLC-
1, Mahakali, Rajur, Nehariya, Tandsi
(second system) and Saoner-3] .
Competent approval has been
obtained for Nandgaon incl. and for
the remaining mines, action for
approval is under process.
(vii) In WCL, there are no degree-III
mines. However, presently six tele-
monitoring systems have been
installed in the following mines of
WCL, (Viz. BC3&4, DRC, NMC-3/
Naglone, HLC-1, Sasti UG and
Mahakali).
Further, 9 nos of telemonitoring
systems for Nehariya, Thesgora,
Mathani, Tawa-1, Tawa-2, Tandsi,
Mohan, DRC 6,7,8 and Nandgaon
Incl. underground mines of WCL
have been identified and proposal
is under process of competent
approval.
28
ANNUAL REPORT 2014-15
(viii) Slope Stability Radar (SSR) issuitably integrated with a real timevisual imaging system forcontinuously scanning the problemarea in opencast mines to identifythe potential areas of failure andvisualise any ground movement /failure by comparing measurementagainst the first scan having suitableaudio-visual warning system.
In vew of slope failures at Sasti OCmine in the past, WCL has placedorder for one number of SlopeStability Radar to be installed atSasti OC mine (dragline mine),Ballarpur Area for round the clockdump slope and bench slopemonitoring. The same is likely to beinstalled by 31st May 2015.
4.6 Utilisation of Safety Budget : 2014-15
Head Capital
5. RESCUE
5.1 Prompt Service in Emergency &Reopening.
During 2014-15, two incidents ofSpontaneous Heating/fire and three re-opening operations have been dealtsuccessfully as per the following details :-
5.2: IN-HOUSE EXPERTISE TO
CALIBRATE GAS DETECTORS
The initiative taken to acquire in-house
exper tise for maintenance and
caliberation of gas detectors of
different make led to increased
reliability, availability and efficiency of
the gas detectors in mines besides
considerable saving in cost of
Rs.46.00 Lakhs during the year.
5.3 REVENUE GENERATION :
Mines Rescue Station, Nagpur
imparted Rescue training to
employees of M/S. Sunflag Iron &
Steel Company and MOIL Ltd. and
generated revenue to the tune of
Rs.17.33 Lakhs.
5.4 Competition/Drives in Rescue
Services:
5.4.1 Inter Rescue Room Competition was
held in the month of February 2015.
RRRT, Tadali bagged the First Prize
under RRRT group and Rescue
Room Sasti was adjudged First in
Rescue Room group.
5.4.2 Zonal / Inter Area Rescue Competition
was held at RRRT, Pathakhera on
dt.14.11.2014. Overall First Prize was
bagged by Pench Area, Overall
Second – Chandrapur Area and
Overall Third- Pathakhera Area.
5.4.3 All India Mines Rescue Competition
was held at Mines Rescue Station,
Ramgarh (CCL), from 14th to 17th
January 2015. In this competition
WCL Team bagged the following
prizes.
Drill & Turnout -2nd and 3rd Prize
Rescue and Recovery - 3rd Prize
Rescue Work - 3rd and 4th Prize
CapitalCapitalCapitalCapitalCapital
Rs. 433 lakhs
Rs. 205.47 lakhs
H e a dH e a dH e a dH e a dH e a d
Budget
Expenditure
Sl.Sl.Sl.Sl.Sl.No.No.No.No.No.
01
02
0 3
0 4
0 5
12.07.14
20.07.14
13.09.14
25.02.15
24.03.15
— -
—
15.09 .14
—
25.03 .15
Silewara /
Nagpur
Vishnupuri-2 / Pench
DRC-6,7,8/Chandrapur
DRC-6,7,8/Chandrapur
DRC-6,7,8/Chandrapur
Fire occurred in IV Top
Sector- C, 0L / 3R
Re-opening of part panel ofVB-2 seam, which was sealed
due to spontaneous heating
DRC Incline No.6,7,8 hasbeen sealed due to fire in
underground at 5R/14L.
Partial re-opening (recoveryof main fan)
Partial re-opening of mine
DateColliery/
AreaReasons
29
WESTERN COALFIELDS LIMITED
5.5 Gas Chromatograph : One Portable
Gas Chromatograph and two
stationary Gas Chromatograph has
been installed at Mines Rescue
Station, Nagpur and RRRT-Parasia,
Pathakhera respectively for prompt and
precise mine gas analysis.
6. AVAILABILITY OF POWER AND
CONSUMPTION
6.1 Availability of Power
6.2 Power Consumption
6.2.1 Electricity
(a) Power consumption during the
year has been reduced over
previous year by 6.77% (42.941
Million kWh) due to Implemen-
tation of various energy
conservation measures and less
rainfall by 45% than previous
year.
(b) Average Rate (Rs/kWh) during
the year as compared to previous
year has been increased due to
increment in the tariff charged by
MSEDCL and Regulatory Liability
Charges refund amounting Rs
69.75 lakhs/ month has been
stopped since March, 2014 by
MSEDCL, despite of the increase
in incentives for high power by Rs
20.65 lakhs, reduction in penalties
due to low power factor by Rs
53.95 lakhs, reduction in
additional charges paid due to
Excess Recorded Maximum
Demand by Rs 68.43 lakhs &
segregation of domestic
consumption from industrial at
Sundar Nagar, Kailash Nagar and
Pipla.
6.2.2 As a part of initiatives under Energy
Conservation, the Company awarded
the work for benchmarking of electric
power consumption at Umrer
Opencast mine to M/s. Elion
Technology and Consulting during the
month of January, 2015.
7. Population & Performance of
Equipment
7.1 Population of Equipment
7.2 Performance of HEMMs
7.2.1 Availability of HEMMs
i) CMPDIL-Norms for availability of
Dumper has been achieved.
ii) WCL ranked Third in Availability
of Shovel among all subsidiaries
of CIL.
iii) Availability of Dumper, Dozer and
Drill has been higher than last
year.
7.2.2 Utilization of HEMMs
i) Utilization of all the HEMM’s in
WCL is more than CIL average.
ii) CMPDIL Norms of utilization with
respect to Shovels, Dumpers,
Dozers and Drills could not be
achieved due to ageing of
equipment, as 29.4% of total fleet
of equipment (as on 25.03.2015)
have qualified for survey-off.
Area
Average Contract Demand in MVA
Average Availed Demand in MVA
2014 -15
140 .846
120 .893
2013 -14
141 .975
127 .941
Purchased
Units in MKWH
Rate / unit
2014 -15
591 .013
7 .41
2013 -14
633 .953
7 .29
S.No. Equipment As on 31st March
2015 2014
1 Dragline 3 3
2 E.R.Shovel 37 39
3 Hydraulic Excavator 92 99
4 Dumper 449 494
5 Dozer 150 158
6 Drill 98 91
TOTAL 829 884
Population
30
ANNUAL REPORT 2014-15
7.3 Special Achievements
7.3.1 WCL is ranked as SECOND in
utilization of Dumper & Dozer while
THIRD in Dragline, Shovel & Drill
among all subsidiaries of CIL.
7.3.2 56 new equipment including 60T
Dumpers and Hydraulic Excavators
were purchased against surveyed off
during the year.
7.3.3 To increase reliability of aged
equipments, 5 Equipments have been
covered under Rehabilitation
programme and 28 Equipments have
been taken under Reliability
Programme.
7.3.4 During FY 2014-15 CWS, Tadali has
achieved 110% against Target in repair
jobs of Machine, Heat Treatment and
Structural shops. Engine
transmission, sub-assembly repair
shop registered 106.5% achievement
against target.
7.3.5 Initiative has been taken for
benchmarking of specific diesel
consumption in Bhatadi opencast mine
and the work was awarded to M/s.
CSIR in the month of January, 2015.
7.3.6 System Capacity Utilization of Open
Cast Mines of WCL :-
8. FINANCIAL PERFORMANCE:
The Company has earned a profit
before tax in the year 2014-15 Rs.545
Crores as against Rs. 326 Crores in
the previous year 2013-14. The
financial performance of the Company
for the year 2014-15 vis- a-vis 2013-
14 is furnished below:
8.2 THE WORKING RESULTS FOR THE
YEAR AS COMPARED TO THEPREVIOUS YEAR ARE GIVEN
BELOW:-
Year
2014 -15
2013 -14
Capacity
Utilization
9 8 . 0 8 %
9 6 . 5 9 %
Capacity in
Mill. Cu.m.
81 .76
80 .73
Remarks
Based on CMPDI capacity ason 1st April, 2014.
Based on CMPDI capacity ason 1st April, 2013.
Sl.Sl.Sl.Sl.Sl. ParticularsParticularsParticularsParticularsParticulars AmountAmountAmountAmountAmount Amount Amount Amount Amount Amount
N oN oN oN oN o
11111 PRPRPRPRPROFIT BEFORE OFIT BEFORE OFIT BEFORE OFIT BEFORE OFIT BEFORE TTTTTAX FOR AX FOR AX FOR AX FOR AX FOR THE THE THE THE THE YEAR 2013-14YEAR 2013-14YEAR 2013-14YEAR 2013-14YEAR 2013-14 3 2 6
22222 CHANGE IN INCOMECHANGE IN INCOMECHANGE IN INCOMECHANGE IN INCOMECHANGE IN INCOME
i Increase in Sales Revenue 7 1 2
ii Increase in Other Operating Revenue 6 3
iii Increase / (Decrease) in Other Income (45)
Net increase in Income 7 3 0
33333 CHANGE IN EXPENSESCHANGE IN EXPENSESCHANGE IN EXPENSESCHANGE IN EXPENSESCHANGE IN EXPENSES
i Increase in Cost of Material consumed 6
ii Change in inventory 8 4
iii Increase in Employee expenses 2 1 3
iv Increase in Contractual expenses 1 0 4
v Increase in provisions / mine closure expenses 9 4
vi Increase in Depreciation 4 4
vii Change in OBR Adjustment and Other expenses (34 )
Net increase in Expenses 5 1 1
PROFIT BEFORE TAX FOR THE YEAR 2014-15 (1+2-3) 5 4 5
(` in crores)
PPPPPA RA RA RA RA RT I C U L A R ST I C U L A R ST I C U L A R ST I C U L A R ST I C U L A R S 2 0 1 4 - 1 52 0 1 4 - 1 52 0 1 4 - 1 52 0 1 4 - 1 52 0 1 4 - 1 5 2013-14 2013-14 2013-14 2013-14 2013-14
Revenue From Operations 9652.74 8 5 6 3 . 6 4
Less:Less:Less:Less:Less: Levies Maharastra 1 9 9 1 . 4 9 1 6 5 3 . 7 6
Madhya Pradesh 3 3 5 . 8 6 2 9 6 . 0 5
2 3 2 7 . 3 5 1 9 4 9 . 8 1
Net Revenue FromNet Revenue FromNet Revenue FromNet Revenue FromNet Revenue From
O p e r a t i o n sO p e r a t i o n sO p e r a t i o n sO p e r a t i o n sO p e r a t i o n s 7 3 2 5 . 3 97 3 2 5 . 3 97 3 2 5 . 3 97 3 2 5 . 3 97 3 2 5 . 3 9 6 6 1 3 . 8 36 6 1 3 . 8 36 6 1 3 . 8 36 6 1 3 . 8 36 6 1 3 . 8 3
Net Other OperatingNet Other OperatingNet Other OperatingNet Other OperatingNet Other Operating
R e v e n u eR e v e n u eR e v e n u eR e v e n u eR e v e n u e 2 2 3 . 1 32 2 3 . 1 32 2 3 . 1 32 2 3 . 1 32 2 3 . 1 3 1 6 0 . 0 81 6 0 . 0 81 6 0 . 0 81 6 0 . 0 81 6 0 . 0 8
TTTTTotal Reotal Reotal Reotal Reotal Revenvenvenvenven ue frue frue frue frue fromomomomom
O p e r a t i o n sO p e r a t i o n sO p e r a t i o n sO p e r a t i o n sO p e r a t i o n s 7 5 4 8 . 5 27 5 4 8 . 5 27 5 4 8 . 5 27 5 4 8 . 5 27 5 4 8 . 5 2 6 7 7 3 . 9 16 7 7 3 . 9 16 7 7 3 . 9 16 7 7 3 . 9 16 7 7 3 . 9 1
Less:Less:Less:Less:Less: Expenditure -
Net of other. Income 7 0 0 3 . 7 8 6 4 5 1 . 3 5
Gross MarginGross MarginGross MarginGross MarginGross Margin 7 8 0 . 8 17 8 0 . 8 17 8 0 . 8 17 8 0 . 8 17 8 0 . 8 1 5 1 7 . 0 55 1 7 . 0 55 1 7 . 0 55 1 7 . 0 55 1 7 . 0 5
Less: Depreciation/
Amortizat ion/ Impairment 2 3 6 . 0 7 1 9 2 . 2 3
Gross ProfitGross ProfitGross ProfitGross ProfitGross Profit 5 4 4 . 7 45 4 4 . 7 45 4 4 . 7 45 4 4 . 7 45 4 4 . 7 4 3 2 4 . 8 23 2 4 . 8 23 2 4 . 8 23 2 4 . 8 23 2 4 . 8 2
LessLessLessLessLess: Interest 0 . 0 0 2 . 2 6
Profit Before PPA 5 4 4 . 7 4 3 2 2 . 5 6
Less/(AdLess/(AdLess/(AdLess/(AdLess/(Add) :d) :d) :d) :d) : Prior Period
Adjustments ( 0 . 0 5 ) ( 3 . 3 0 )
Profit Before Tax 5 4 4 . 7 9 3 2 5 . 8 6
Less:Less:Less:Less:Less: TTTTTax Expensesax Expensesax Expensesax Expensesax Expenses
Provision For Taxation 2 4 2 . 3 3 1 5 1 . 3 9
Deferred Tax ( 5 6 . 3 4 ) 1 3 9 . 4 0
Earlier Tax 4 5 . 6 5 ( 1 8 8 . 5 2 )
PrPrPrPrProfit After ofit After ofit After ofit After ofit After TTTTTaxaxaxaxax 3 1 3 . 1 53 1 3 . 1 53 1 3 . 1 53 1 3 . 1 53 1 3 . 1 5 2 2 3 . 5 92 2 3 . 5 92 2 3 . 5 92 2 3 . 5 92 2 3 . 5 9
Add : Profit/(Loss)
from discontinuing operation ( 0 . 0 1 ) ( 0 . 0 1 )
Add: Add: Add: Add: Add: Profit Brought Forward 2 0 5 0 . 5 7 2 0 3 9 . 5 0
Less: Adjustment forLess: Adjustment forLess: Adjustment forLess: Adjustment forLess: Adjustment for
D e p r e c i a t i o nD e p r e c i a t i o nD e p r e c i a t i o nD e p r e c i a t i o nD e p r e c i a t i o n ( 5 2 . 6 8 ) 0 .00
Distributable SurplusDistributable SurplusDistributable SurplusDistributable SurplusDistributable Surplus 2 3 1 1 . 0 3 2 2 6 3 . 0 82 2 6 3 . 0 82 2 6 3 . 0 82 2 6 3 . 0 82 2 6 3 . 0 8
(` in crores)
31
WESTERN COALFIELDS LIMITED
10. BORROWING FROM GOVT. OF
INDIA:
Your Company has not borrowed anyamount from the Government of Indiadirectly during the year 2014-15.
11. CAPITAL EXPENDITURE:
During the year ending 31st March,2015 an amount of Rs. 518.79 crores(excluding capital commitment ofRs.978.44 crores) was invested inFixed Assets and Capital Work-in-progress of existing and upcomingMines/Projects.
The capital expenditure for theprevious year was Rs. 287.67 crores.
12. ROYALTY, SALES TAX, ENTRY TAX,EXCISE DUTY & OTHER DUTIESON COAL:
Royalty, Sales Tax, Entry Tax, StowingExcise Duty, Clean Energy Cess andCentral Excise Duty paid to Govt
during the year are as given below:-
14. PLANNING:
14.1 Group-wise production programme
and achievement during the year
2014-15 and target for the year 2015-
16 is furnished below:
APPROPRIATION :
8.3 DIVIDEND:
Directors are pleased to recommenda final dividend of Rs. 188.06 Crores(P Y Rs. 134.29 Crores ) @ 64.47%(P Y 45.20% ) on the paid up EquityShares Capital of the Company. Thetotal dividend per share is @ Rs. 633( P Y Rs. 452 per share ) on 29,71,000Equity Shares of the Company .
9. CAPITAL STRUCTURE:
9.1 SHARE CAPITAL:
The Authorised Share Capital of yourCompany is Rs.800 crores comprisingof 80 lakhs Equity Shares of Rs. 1000/- each of which Rs.297.10 crores ispaid up Equity Share Capital (29.71lakhs Equity Shares of Rs. 1000/-each) which remained unchanged
during the year.
9.2 LOAN FUND:
Unsecured Loans: NIL
Secured Loan: NIL.
However, charge has been created for
Rs.165.00 crores on current assets for
securing working capital facility from
CIL’s Consortium Banks as per joint
deed of hypothecation dated
01.09.2008. Further against approval
of CIL towards fund based facility an
amount for Rs.30 crores was allocated
to WCL. This loan has, however, not
been availed so far.
FINAL DIVIDEND
TAX ON DIVIDEND
TRANSFER TO CSR RESERVE
TRANSFER TO SD RESERVE
TRANSFER TO GENERAL RESERVE
SURPLUS SURPLUS SURPLUS SURPLUS SURPLUS
2 0 1 4 - 1 52 0 1 4 - 1 52 0 1 4 - 1 52 0 1 4 - 1 52 0 1 4 - 1 5
1 8 8 . 0 6
3 7 . 6 0
0 . 0 0
0 . 0 0
3 1 . 3 1
2 0 5 4 . 0 62 0 5 4 . 0 62 0 5 4 . 0 62 0 5 4 . 0 62 0 5 4 . 0 6
2 0 1 3 - 1 42 0 1 3 - 1 42 0 1 3 - 1 42 0 1 3 - 1 42 0 1 3 - 1 4
1 3 4 . 2 9
2 2 . 8 2
2 1 . 1 4
0 . 7 2
3 3 . 5 4
2 0 5 0 . 5 72 0 5 0 . 5 72 0 5 0 . 5 72 0 5 0 . 5 72 0 5 0 . 5 7
Particulars
1 Existing/ Completed Project
2 Ongoing/future Projects
2014-15
Target
24 .03
19 .97
44 .00
Actual
23.903
17.243
41.147
2013-14AAP Target
(As Per AnnualAction Plan)
22.16
22.94
45.10
(` in crores)
Royalty
Sales Tax
State
Central
Entry Tax
Stowing
Excise Duty
C l e a n
Energy Cess
Central Excise
Duty
TTTTTotalotalotalotalotal
M.....P.....
157.10
5 8 . 4 6
5 .18
1 0 . 2 1
5 .56
4 8 . 0 9
5 2 . 7 3
337.33337.33337.33337.33337.33
M. H
8 4 5 . 9 3
2 7 3 . 0 6
3 9 . 5 2
0 .00
3 5 . 4 6
2 9 8 . 2 8
3 0 5 . 5 3
1797 .781797 .781797 .781797 .781797 .78
Total
1003.03
331.52
44.70
10.21
41.02
346.37
358.27
2135.11
M.....P.....
1 4 0 . 8 5
5 0 . 8 0
6 .27
1 0 . 6 7
5 .79
2 8 . 1 3
6 0 . 6 3
3 0 3 . 1 43 0 3 . 1 43 0 3 . 1 43 0 3 . 1 43 0 3 . 1 4
M. H.
754.00
239.86
35.58
0.00
33.64
167.60
285.57
1516.25
Total
894.85
290.66
41.85
10.67
39.43
195.73
346.20
1819.39
2 0 1 4 - 1 52 0 1 4 - 1 52 0 1 4 - 1 52 0 1 4 - 1 52 0 1 4 - 1 5 2 0 1 3 - 1 42 0 1 3 - 1 42 0 1 3 - 1 42 0 1 3 - 1 42 0 1 3 - 1 4
(` in crores)
32
ANNUAL REPORT 2014-15
15. DRILLING & EXPLORATION:
15.1 During the fiscal, total 111014.50
meters of drilling was carried out by
CMPDIL in WCL command area. This
includes 758677.65 meters in CIL
Blocks and 35146.85 meters in Captive
Blocks. Reserves of 314.797 Mt had
been established in CIL Blocks (Proved
304.914 Mt) and reserves of 90.928 Mt
had been established in Non CIL
Blocks.
The target for drilling in 2015-16 in WCL
command area is 154000 meters
(Departmental as well as outsourcing
in CIL blocks and captive blocks).
16. REPORT FORMULATION
16.1 Geological Reports
During the year 2014-15 the following
Geological Reports were prepared:
i) GR of Gouri Central, Wardha
Valley Coalfield.
ii) GR for Bansuli, Bander Coalfield.
iii) GR for Chimri/Bababehra/
Vishnupur, Patherkhera Coalfield
(Non-CIL).
iv) GR for PR Dhankasa OC, Pench
Coalfield.
v) GR for PR of Silori OC, Kamptee
Coalfield.
vi) GR for PR of Bhandak West OC,
Wardha Valley C.F.(Captive
Block).
The following GR/Interim GR are
scheduled to be prepared during 2015-16:
i) Saoner- II & III, Kamptee coalfield
ii) Konda Hardola, Wardha valley
Coalfield.
iii) Rajur- Manikgarh, Wardha valley
Coalfield.
iv) Bahmni- Palasgaon, Wardha
Valley Coalfield.
The following Geological Reports
arescheduled to be prepared during
2015-16 by outsourcing agency:
i) Sangam. Kamptee Coalfield
ii) Silewara Kamptee Coalfield
iii) Ambara- Sukri Pench – Kanhan
Coalfield
16.2 Mining Project Reports:
During 2014-15 following 7 Mining
Project Reports were formulated:
16.3 PLANNING PREPAREDNESS
16.3.1 At present there are 33 ongoing
projects with a capacity of 36.165
Million Te/annum with a total
sanctioned capital of ̀ 2775.557 Crores.
Out of this 22 projects have contributed
17.243 Mte coal production during the
year 2014-15 and rest are under
implementation.
16.3.2 Overcoming the financial
challenges
The financial challenges faced by WCL
is the viability of projects in terms of
desired selling price to yield 12% IRR
as many of the ongoing / future /
replacement projects were falling in the
ambit of cost plus after revision of land
rates declared by Government of
Maharashtra, new R&R Policy, 2012
and other cost in parameters.
S. Name of Project Capacity Capital
No. (Mty.) (Rs. Crores)
1 Recast PR of Tawa –III UG 0 .48 1 3 5 . 1 7 3 5
2 Recast of Jamunia UG 0.84 1 9 8 . 7 6 7
3 PR of Shaktigarh UG 1.70 8 4 2 . 1 1 3 2
4 RPR of Dinesh OC 4.00 6 1 1 . 1 6 0 5
5 RPR of Penganga OC 4.00 4 4 1 . 8 2 0 9
6 PR of Silori OC 2 .00 1 7 9 4 . 8 7 5 0
7 PR of Adasa UG to OC 1.5 4 4 3 . 7 5 8 0
33
WESTERN COALFIELDS LIMITED
WCL has taken steps in bringing
revision of old CMPDIL norms for
formulation of the Project Report,
capacity enhancement in some of the
projects wherever possible,
amalgamation of adjacent projects etc.,
After taking these steps many Projects
of WCL namely Makhardhokra I OC,
Penganga OC, Bhanegaon OC, Gokul
OC & Dinesh OC came out of the ambit
of cost plus and viable on notified price.
16.3.3 LONG TERM PLANNING :
WCL has planned to open 23 New/
Replacement projects with total
capacity of 34.35 MTY in the state of
Maharastra & Madhya Pradesh during
the FY 2015-16 & 2016-17 to create a
production capacity of 60 MT as a part
of 1 BT production programme of CIL
by 2019-20. The details of projects are
as under:-
17. PROJECTS/SCHEMES APPROVAL
17.1 Approval of Project Reports
During the year 2014-15 following
projects were approval by WCL/CIL Board
* Approved by CIL Board.
17.2 Commissioning of Projects:
17.3 Major activities/milestones achievedduring the year in respec of new ongoing projects
i) Makardhokra-I mine was openedon 28.11.2014 with the approvalof WCL Board on 27.09.2014 and
after the award of work for the OBremoval on 08.11.2014. The mineproduced 69000 tonnes of coalupto March, 2015.
ii) Milestones of building capacity of0.45 MT of scheme of DhurwasaOC Mine was achieved in themonth of December, 2014.
iii) OB rehandling and soilexcavation of 37.43 lakhs cu.m(88.7% of awarded work) wasexecuted along path of Amb riverfor diversion.
iv) Master control network in respectof 15 projects costing more than
Rs.20 rores or having capacity
more than 1 MTPA was prepared
and submitted.
Sl.Sl.Sl.Sl.Sl. Name of ProjectName of ProjectName of ProjectName of ProjectName of Project AreaAreaAreaAreaArea CapacityCapacityCapacityCapacityCapacity OpeningOpeningOpeningOpeningOpening
No.No.No.No.No. (Mty )(Mty )(Mty )(Mty )(Mty ) ScheduleScheduleScheduleScheduleSchedule
1 New Majri Sector IA & IIA OC Majri 1 .20 May-15
2 Gokul OC Umrer 1 .50 May-15
3 Jamunia UG Pench 0 .84 July-15
4 New Majri UG to OC Majri 0 .80 Jun-15
5 Sharda UG Kanhan 0 .32 Jun-15
6 Dinesh OC Umrer 4 .00 Oct-15
7 Dhau North UG Kanhan 0 .36 Oct-15
8 Singhori OC Nagpur 0 .80 Nov-15
9 Amalgamated Yekona -I & II OC Majri 2 .50 D e c - 1 5
1 0 Amalgamated Pauni-II & III OC Ballarpur 2 .50 Jan-16
1 1 Chincholi OC Ballarpur 0 .30 Feb-16
1 2 Kamptee Deep OC Nagpur 1 .50 Mar -16
2 0 1 6 - 1 72 0 1 6 - 1 72 0 1 6 - 1 72 0 1 6 - 1 72 0 1 6 - 1 7
1 Mungoli Nirguda Deep OC Wani 4 .00 April-16
2 Bellora / Naigaon Wani 1 .00 M a y - 1 6
(Amb River Diversion) OC
3 Umrer Expansion Umrer 2 .00 Jun-16
(Amb River Diversion) OC
4 Waghoda UG Nagpur 0 .39 July-16
5 Tawa-III UG Pathakhera 1 .00 Sept-16
6 Hindustan Lalpeth Expn. OC Chandrapur 1 .00 Oct-16
7 Dhuptala Extn. Ballarpur 1 .70 Nov-16
(Sasti UG to OC)
8 Pimpalgaon Deep OC Wani North 1 .00 D e c - 1 6
9 Padmapur Deep OC Chandrapur 2 .50 Jan-17
1 0 Niljai Expansion (Deep) OC Wani 3 .00 Feb-17
1 1 Harradol UG Kanhan 0 .14 Mar -17
Sl. Project Date Sanctioned Sanctioned
No of Approval Capacity Capital
(Mtpa) (Rs. Crores)
1 Penganga OC 2 7 . 0 9 . 2 0 1 4 4 . 0 0 4 4 1 . 8 22 Makhardhokhda I OC 2 7 . 0 9 . 2 0 1 4 2 . 0 0 2 6 6 . 2 33 Gokul OC 2 9 . 1 1 . 2 0 1 4 1 . 5 2 6 7 . 6 74 Bhanegaon OC 0 3 . 0 2 . 2 0 1 5 1 . 0 0 1 8 7 . 9 45 Junnad Ext. OCP 0 3 . 0 2 . 2 0 1 5 0 . 6 7 9 . 3 7 9 3
(additional)6 New Majri Sector 0 3 . 0 2 . 2 0 1 5 1 . 2 5 2 . 2 5 5 9
IA & Sector II A OC (additional)7 Dinesh OC* 0 8 . 1 1 . 2 0 1 4 4 . 0 0 611.16
Sub-
sidiary
W C L
W C L
W C L
Sl.
No.
1
2
3
Name of the Projects
Makhardhokdhra-I
Bhanegaon
Penganga
Type
O C
O C
O C
Sanctioned
Capacity
(Mty)
2.00
1.00
3.00
Sanctioned
Capital
(Rs. Crores)
266.30
187.94
441.82
34
ANNUAL REPORT 2014-15
v) Depar tment of BusinessManagement, Rashtrasant TukdojiMaharaj Nagpur University wasawarded the work as anindependent consultant to developa business model to enable WCLto open new projects with specialemphasis on cost analysis.
vi) Construction of approach road atGouri Deep OC was completed inthe month of January, 2015.
17.4 ISO-9001-2008 certification:
During the year, ISO-9001-2008certification was accredited to 9 Mines/Training Institutes and re- certificationof 18 units was also received fromQMS Certification Services Pvt. Ltd,Bangalore with the approval ofJASANZ Australia.
18. Acquisition of land :
18.1 The Coal Bearing Areas (Acquisition &Development) Act, 1957 is the mainstay for acquiring land by the CentralGovernment and thereafter vestingwith WCL for coal mining activities.After execution of agreements u/s14(1) of CBA Act, with Land Owners,the amount of compensation isassessed as per the provisions of theAct or as per rates declared andinvoked by Government ofMaharashtra. Compensation amountis disbursed after obtaining thesanction from Ministry of Coal, Govt.of India and all benefits under the R&RPolicy of CIL are extended.
Since nationalization, WCL hadacquired under CBA Act, 21472.618Ha. of land till March, 2015, out of which11210.942 Ha. is under possession.
During the fiscal, 1363.46 Ha. land wasnotified U/s. 9(1) of CBA Act and1441.08 Ha. land was notified U/s.11(1) of CBA Act.
18.1.1 Land acquisition has been done underLand Acquisition Act 1984 throughState Government alsoand all benefits
under the R&R Policy of CIL areextended.
Since nationalization WCL hadacquired 4184.642 Ha. land till March,2015 out of which 4080.842 Ha. isunder possession.
18.1.2 The provisions of Land Revenue Code
of Madhya Pradesh and Maharashtra
have also been preferred for acquiring
land in cases where mining lease has
been obtained under Mineral
Concession Rules.
WCL had acquired and taken
possession of 1594.329 Ha. and
1572.417 Ha. land respectively under
this provision. During the year 36.232
Ha. land under MPLRC was acquired,
out of which 14.320 Ha. land was taken
under possession. At times, land was
also being acquired through direct
purchase to meet the critical
equirement as well.
18.1.3 During the FY 2014-15, your Company
has made a remarkable achievement
in acquisition of land for mining and
allied activities and details of acquisition
are as under :
18.2 Physical possession of land :
18.2.1 The Company has achieved a
remarkable landmark in physical
possession of land i.e. to the tune of
1370.432 Ha during the year as a result
of initiatives taken from the month of
November, 2014 to resolve contentious
and long pending issues of land owners.
Sl.Sl.Sl.Sl.Sl. A r e aA r e aA r e aA r e aA r e a ProjectProjectProjectProjectProject Mode of acquisitionMode of acquisitionMode of acquisitionMode of acquisitionMode of acquisition TTTTTotal Areaotal Areaotal Areaotal Areaotal Area
No.No.No.No.No. (In Ha.)(In Ha.)(In Ha.)(In Ha.)(In Ha.)
1 Ballarpur Dhuptala OC CBA (A&D) Act 8 7 0 . 8 7 0
2 Nagpur Kamptee UG to OC Direct Purchase 6 . 2 0 0
3 Nagpur Inder UG to OC Direct Purchase 1 9 . 5 2 0
4 Wani Niljai Deep OC CBA (A&D) Act 4 1 0 . 4 7 0
5 Wani North Ukni Deep OC Direct Purchase 2 . 2 0 0
6 Pench Barkuhi Ph. - III M P L R C 3 6 . 2 3 2
T O T O T O T O T O T A LT A LT A LT A LT A L 1 3 4 5 . 4 9 21 3 4 5 . 4 9 21 3 4 5 . 4 9 21 3 4 5 . 4 9 21 3 4 5 . 4 9 2
35
WESTERN COALFIELDS LIMITED
18.2.2Details of land taken in physical
possession during FY 2014-1518.4.3 Forest land acquisition
Forest land is diverted from State
Government as per the provisions of
Forest Conservation Act, 1980 after
approval from MoEF, New Delhi. This
year Stage- II clearance has been
obtained for 19.50 Ha. forest land for
Ghorawari OC Mine of Kanhan Area
and physical possession of 9.50 Ha.
forest land for Sharda UG Mine of
Kanhan Area has been handed over
by Forest Department.
18.4.4 Rehabilitation and Resettlement
Total 9 Project Affected Families were
resettled in 2014-15 by providing
resettlement grant on the option given
Sl.No.1
2
3
4
5
6
7
89
10
11
12
13
141516
1718
Area
Ballarpur
Ballarpur
Chandrapur
Nagpur
Nagpur
Nagpur
Nagpur
UmrerUmrer
Wani North
Wani North
Wani North
Wani North
WaniWaniPench
PenchKanhan
Project
Sasti Expn.OCGouri DeepOCBhatadi Extn.OCKampteeUG to OCKampteeUG to OCInder UGto OCBhanegaonOCGokul OCMakardhokra-I
Ukni DeepOCKolarpimpriDeep Extn. OCJunadExtn.OCGhonsa OCPenganga OCPenganga OCBarkuhi OCPhase – IIIJamunia UGSharda UG
Mode ofacquisition
LA Act
CBA(A&D) ActLA Act
LA Act
DirectPurchaseDirectPurchaseCBA(A&D) ActCBA (A&D) ActCBA (A&D) Act
DirectPurchaseCBA(A&D) ActCBA(A&D) ActCBA(A&D) ActCBA (A&D) ActLA ActMPLR
CBA (A&D) ActFC ActTTTTT OOOOO TTTTT A LA LA LA LA L
Tenancy
44.110
7.670
3.440
5.070
6.200
19.520
25.70
282.570294.920
2.200
101.180
6.340
20.92335.150
4.23014.320
48.6780.000
1222 .2181222 .2181222 .2181222 .2181222 .218
Govt .
-
-
-
-
-
-
-
2 2 . 1 02 0 . 2 2
-
-
-
-96.394
--
-0 . 0 0 0138.714138.714138.714138.714138.714
Total Area(in Ha.)44.110
7.670
3.440
5.070
6.200
19.520
25.70
304.670315.140
2.200
101.180
6.340
20.920431.544
4.23014.320
48.6789.500
1370.4321370.4321370.4321370.4321370.432
Forest
-
-
-
-
-
-
-
--
-
-
-
----
-9 . 5 0 09 . 5 0 09 . 5 0 09 . 5 0 09 . 5 0 09 . 5 0 0
Opening new Chapter - Inauguration of Penganga Opencast Project, the largest mine of WCL on 22ndMarch, 2015 at the hand of Shri Devendra Fadnavis, Hon’ble Chief Minister of Maharashtra in the augustpresence of Shri Nitin Gadkari, Hon’ble Minister of Road Transport and Highways, Govt. of India, ShriPiyush Goyal, Hon’ble Minister of State (IC) for Power, Coal, New & Renewable Energy, Govt. of India,Shri Hansraj Ahir, Minister of State for Chemical & Fertilizers, Govt. of India amongst other.
36
ANNUAL REPORT 2014-15
by land oustees, within the provision
of R&R Policy of CIL. These includes 5
families of Pits Colony under Ghugus
OCP and 4 families of Kamptee UG to
OC Mine, Nagpur Area.
Administrative approval for
employment during 2014-15:
18.4.5 Constraints in acquisition of land:
i) For the land notified U/s. 9(1) of
CBA Act, 1957 considerable time
elapsed in executing agreement
with each land owners U/s. 14(1)
of CBA Act, which is required for
preparation of compensation bill at
the rate of land compensation
applicable for WCL as declared by
Government of Maharashtra.
ii) There is inordinate delay in
processing the forestry clearance
proposals at different levels of
State Forest Department causing
delay in obtaining clearance for
diversion of forest land from MoEF.
iii) State Government officials show
their inability for providing
Government land for resettlement
of Project Affected Families (PAFs).
Identification of land for
resettlement in consultation with
PAFs causes delay in identification
of resettlement site.
Adding another Feather - Bhumipujan on the occasion of inauguration of Bina-Bhanegaon
Opencast Project under Nagpur Area.
Year
2014-15
Employment/ Monetary
Compensa-tion in
lieu of Employment
administratively
approved by WCL Board
163 Nos. / 61 Nos.
Name-wise
Monetary compen-
sation in lieu of
employment
approved
113 Nos.
37
WESTERN COALFIELDS LIMITED
18.4.6 To overcome the above constraints
meetings were held with Chief
Secretary, Government of Maharashtra
on 9th April, 2014, 1st July, 2014, 21st
November, 2014 and 10th December,
2014 and with Principal Secretary
(Revenue) on 31st December, 2014 and
23rd February, 2015, for expeditious
processing of forestry clearance
proposals. Besides above, meetings
were also held with Collector,
Chandrapur and Nagpur on 7th January,
2015 and 15th January, 2015. The
progress was reviewed in subsequent
meetings held on 13th January 2015
and 10th February, 2015, with APCCF/
Nodal Officer and other Officials at
Nagpur for expediting the forestry
clearance proposals. With the active
cooperation and support of State
authorities, the proposals for forestry
clearance in respect of Ghonsa OC,
Singori OC, Durgapur Extn. OC, Gokul
OC and Mahakali UG have been
recommended and forwarded to MoEF.
18.4.7 Meetings were also held with Madhya
Pradesh State Forest Officials CCF,
Chhindwara on 10th December, 2014
and at MoEF, R. O., Bhopal on 10th
February, 2015 for expediting forestry
clearance proposals which are under
process at State Level and at MoEF.
19 COAL MARKETING
19.1 Raw Coal Offtake during the Fiscal
2014-15 was 41.247 Mill Te against the
TGT of 45.00 Mill Te i.e achievement
of 91.7 % of Target. Offtake during the
fiscal 2013-14 was 39.945 Mill Te.
Offtake during the year was affected
mainly due to the reasons beyond the
control of WCL. The main reasons of
shortfall are as under
Failure of Contractors engaged by
Mahagenco in transporting Coal from
Bhatadih to CSTPS resulted in
accumulation of stock at Bhatadih Cost
Plus Mine dedicated to CSTPS to the
tune of 0.253 Mill Te
Restriction in sale of Coal under e-
auction to 3.000 Mill Te (w.e.f Aug’14)
resulted in shortfall by 0.600 Mill Te as
compared to last year.
Disruption in production and despatch
due to 2 days’ strike by Trade Unions
on 6th and 7th January, 2015 (estimated
impact on offtake : 2.50 lakh tonnes).
Transporters failure against awarded
LOI contributed to Pshortfall of 1.760
Mill Te
19.1.1 Modewise AAP TGT and despatches
( Sales) by Rail , Road& Other mode
for 2013-14 & 2014- 15 are furnished
below:
DESPATCHES
(Fig in Mill-Te)
19.1.2 Modewise AAP Target &
Despatches(Sales) by Rail, Road &
Other Modes for 2013-14 & 2014-15
are furnished below:
YYYYYe a re a re a re a re a r
(By all(By all(By all(By all(By all
Modes )Modes)Modes)Modes)Modes)
2 0 1 3 - 1 4
2 0 1 4 - 1 5
AAP
TGT
44.100
45.00
ACTUAL DESPATCHES
RAIL
22.374
22.867
ROAD
13.603
14.731
MGR
0.581
0.400
OTHER/MODE
3.395
3.352
TTTTT OOOOO TTTTT A LA LA LA LA L
DESPDESPDESPDESPDESPAAAAATCHESTCHESTCHESTCHESTCHES
( S A L E S )( S A L E S )( S A L E S )( S A L E S )( S A L E S )
3 9 . 9 5 3
4 1 . 3 5 0
38
ANNUAL REPORT 2014-15
DETAILS OF SECTORWISE TARGET &
DESPATCHES DURING 2014-15
Govt. Power utilities could source a
quantity of 26.76 Lte on “As is where
is basis” during the fiscal 2014-15 as
per requirement of their power plant.
This has been helpful in augmenting
coal offtake from WCL
19.2 Wagon Loading ( in Boxes / Day
The details of AAP Target for wagon
Loading on daily Average basis &
quantity despatched for the year 2014
15 as compared to 2013-14 -
WCL has despatched 22.867 MT coal
through rail mode as against the AAP
target of 22.171 MT and against last
year’s actual of 22.374 MT. Thus WCL
has achieved 103.14% of target with
growth of 2.2 % over last year.
19.3 Sales realization
The Sales Realization during the
financial year 2014-15 was
Rs.9924.11 crs which was
Rs.1212.18 crores ( i.e.14% ) more
than the last year’s realization of
Rs.8711.93 crores.
19.4 Spot e-Auction :
Details of the total quantity of coal
offered under Spot e-auction, the
quantity allocated based on bids made
by the bidders and the additional
revenue generation on the basis of the
quantity allocated during the year
2013-14 and 2014 -15 are as below :
Even though the quantity offered/
allocated under spot e-auction during
2014-15 was less than 2013-14 due
to restriction in e- auction by CIL, still
the additional revenue generated under
Spot e-Auction conducted during 2014-
15 was more by Rs. 21.48 crs. as
compared to the additional revenue
generation in the Spot e-Auctions in
2013- 14. The variations in the Bid
Prices under the e-auctions are market
driven.
Sector A A PT G T
3 5 . 7 4 5
4 . 1 5 5
0 . 2 2 1
0 . 2 9 0
4 . 5 6 4
4 4 . 9 7 5
0 . 0 2 5
4 5 . 0 0 0
0 . 0 7 9
A C T
* 3 0 . 9 5
3 . 5 1 4
0 . 1 5 0
0 . 3 9 5
6 . 2 3 2
4 1 . 2 4 1
0 . 0 0 6
4 1 . 2 4 7
0 . 1 8 4
%a g e
8 7
8 5
6 8
1 3 6
1 3 6
9 2
2 4
9 2
2 3 3
ACT
Apart from *30.95 MTof raw coal 0.07 MT ofmiddlings was alsodispatched to powerutilities thus the totaldespatches to powerutilities including IPPsstands at 31.02 MT.during FY 2014-15Despatches were asper booking.
WCL has dispatched
Washed Coal to the
tune of 0.075Mill Te
& Washery Grade-II
Raw Coal to SAIL
Plants under MOU
as 0.049Mill Te as
Washery was not in
operation due to is-
sues related to Envi-
ronmental Clear-
ance w.e.f June’14.
Coal Supplied as perF S A
Includes FSA & E-Auct ion
2 0 1 4 - 1 5 2013 -14 % ageGrowth
over2013-14
(Fig in Mill Te)
R e m a r k s
Po w e rincludingI P P( R a wC o a l )
C e m e n t& C P P
S t e e l( R a w )
S p o n g eIron
Others
Tota lDespatch(Internal Raw)
C CTota l
Offtake(RawCoal)
Middl &Slurry(Despatch)
2 8 . 9 1 3
3 . 5 0 0
0 . 2 2 9
0 . 3 9 2
6 . 9 0 5
3 9 . 9 3 9
0 . 0 0 6
3 9 . 9 4 5
0 . 0 8 9
7
0 . 5
(-)53
1
(-) 11
3
0
3
3 2
Year Quantity offered Quantity allocated Additional Revenue(lakh tonnes) (lakh tonnes) g e n e r a t e d
(Rs. in crs.)
2 0 1 3 - 1 4 7 4 . 6 9 5 0 . 3 7 3 1 0 . 0 1
2 0 1 4 - 1 5 5 5 . 3 0 4 1 . 5 4 3 3 1 . 4 9
Year TGT ACT ACH% Rail Desp(Boxes) (Boxes) in Mill Te
2013-14 944 921 97.6 22.374
2014-15 928 944 101.7 22.867
39
WESTERN COALFIELDS LIMITED
19.4.1 Forward e-Auction
Quarterly Forward e-Auctions wereconducted in the year 2014-15. TheQuantity offered, the Bid Quantity by
the Customers and the Additionalrevenue Generated over and abovethe applicable Notified price are as
under:
20. CONSUMER SATISFACTION:
For furthering confidence andimprove consumer satisfaction
various steps were taken forimproving the quality of coal, for100% weighment on electronicweighbridges, and sampling &analysis by third party appointed byCIL during the FY 2014-15.
20.1 QUALITY OF COAL:
20.1.1 Coal Sampling & Analysis wascarried out by independent thirdparty agencies appointed by CIL,throughout WCL.
20.1.2 The overall Grade materialization ofthe coal supplied to the power sector
was 91.08% as compared to90.94% achieved during last fiscal.
20.1.3 Total dispatched quantity to thepower sector including IPPs by allmodes was 31.02 million Te, out ofwhich 30.90 million Te, was covered
under agreed third party sampling.
20.1.4 Following was the bonus earnedunder quality head against coalsupplies to Mahagenco from different
cost-plus mines of WCL:
20.1.5 The grade materialization in respect
of coal supplies made to GSECL &
UPRVUNL was 100% and it was
99.83% and 98.75% incase of
supplies to KPCL & HPGCL
respectively.
20.1.6 The weighted average Gross Calorific
Value (GCV) of coal supplied to
MAHAGENCO was more than the
GCV required for Mahagenco as
stated below:
20.1.7 WCL is the only subsidiary in CIL to
have one NABL-accredited
laboratory, functioning under the
administrative control of GM (QC).
Action is underway to get NABL
accreditation for other laboratories
also.
20.1.8 With a view to give further impetus
to the quality of coal and to
increase the awareness
Quality Fortnight was organized
throughout WCL during the period 21st
Oct. to 4th November 2014 at mine
level. Area level Quality Control
Teams were constituted to keep vigil
on the quality aspects and a Topic on
coal quality was included in the
curriculum of HRD for imparting
training with special emphasis on
maintenance of coal quality to
executives and staff engaged in the
activities of coal production and
dispatches.
20.1.9 Two flying squads with four members
each from Hqrs Q.C. Department have
been constituted to pay surprise visits
to problem Areas on receipt of
complaints regarding any coal quality-
related issue. The flying squads have
been empowered to issue spot memos
Mine Bonus Earned (Rs/Ton)
Durgapur OC 73.32
Bhattadi OC 149.11
Junad Extn OC 2.51
Adasa UG 30.48
Kolgaon OC 67.28
Year Quantity offered Quantity allocated Additional Revenue
(lakh tonnes) (lakh tonnes) generated
(Rs. in crs.)
2014-15 9.14 5.29 6.66
GCV required as perMahagenco’s Boiler parameters
4212 Kcal/Kg
GCV ActuallyDelivered
4796 Kcal/Kg
40
ANNUAL REPORT 2014-15
to the officials, if found to be negligent on
ensuring dispatch of coal as per grades/
quality declared.
20.1.10 Started conducting exclusive training
classes aimed at imparting required in-
house training and providing relevant
and updated information on coal quality
and allied matters to executives/ staff/
workers associated with coal
production, weighment and dispatch.
The inaugural classes were conducted
for two days from 29th Sept 2014 to 30th
Sept 2014. Apart from the exclusive
classes, topics on coal quality were also
included in the HRD Department’s
regular course modules. WCL is the first
subsidiary in CIL to have introduced
exclusive classes on coal quality.
20.2 WEIGHMENT OF COAL:
20.2.1 The total quantity of 41.35 million
Tonnes by all modes was dispatched
after weighment on Electronic
weighbridges at loading-points
20.2.2 The total dispatched quantity to power
sector by Rail mode including MGR was
21.68 million Tonnes, which was
dispatched after weighment on
Electronic Rail weighbridges at loading-
points.
20.2.3 Three nos. additional Electronic Road
weighbridges were installed and
commissioned at Shivpuri OC and
Semi Store of Pench Area and Gouri
Deep OC of Ballarpur Area.
20.2.4 All the Rail and Road weighbridges in
WCL have been duly verified, certified
and stamped by the statutory authority,
Legal & Metrology Department.
20.3 CRUSHING/SIZING OF COAL:
20.3.1 Total Installed crushing capacity for
sizing of coal to (-) 250 mm size from
the opencast mines is 46.20 million
Tonnes per annum, out of which 6.6
million te capacity available is for
sizing to (-) 100 mm. Further
installation of secondary crushers to
convert entire crushing capacity for
sizing (-) 100 mm had been
undertaken.
20.3.2 During the FY 2014-15 entire quantity
of coal (100%) dispatched to power
sector by Rail mode including MGR i.e.
21.69 Million te, was sized before
dispatch.
20.3.3 Action has already been taken for
installation of additional (-) 100 mmcrushing capacity equivalent to 29.14million tons. With this additionalinstallation, 100% requirement of (-) 100mm quantity to the power sector shallbe taken care of.
20.4 QUALITY COMPLAINTS ANDREDRESSAL
20.4.1 Proper complaint redressalmechanism is in place to address theconsumer complaints in a time- boundmanner. The details of the complaints
received and action taken is uploadedon WCL’s website.
20.4.2 During FY 14-15, total 58 Complaints
were raised by consumers regarding
receipt of lumpy coal, extraneous
material and wet/sticky coal. All the
complaints were registered,
investigated and corrective remedial
measures were taken and necessary
feedback was arranged to the
complainant(s).
20.4.3 Customer Satisfaction Survey :
During the FY 2014-15 customer (FSA
Holders) satisfaction survey was
undertaken by inviting feedback in the
proforma jointly worked out. The survey
was completed on 24.10.2014.
41
WESTERN COALFIELDS LIMITED
21. TELECOMMUNICATION
21.1 Existing TelecommunicationSystems
21.1.1 VOICE & DATA Communication
WCL (HQ) has an efficient voice and
data communication network of 64Kbps speed connecting WCL HQ withArea Hqrs. Stores through BSNLleased lines.
a) Surface Communication :
i) During 2014-15, 500 lines IPEPABX system at WCL HQ
has been installed andcommissioned.
ii) During 2014-15, a supply
order dt. 26.04.2014 forCCTV Video surveillancesystem for WCL HQ hasbeen placed, installed andcommissioned for CCTVsurveillance at WCL HQ.
iii) During 2014-15, a supplyorder dt. 08.09.2014 for IPEPABX system has been
placed, installed andcommissioned atMakardokda and Murparmines of Umrer Area andTawa I mine of PatherkheraArea for smooth surface
communication.
iv) During 2014-15, a supplyorder dt. 13.03.2015 for 6 nos
of small EPABX systemshas been placed, andinstallation and commission-ing is under progress for theoffice of Directors & CVO.
b) UG Communication :
i) During 2014-15, a Auto cumManual UG telephonesystem, installed andcommissioned at Tawa I UGmine of Patherkhera Area.
ii) During 2014-15, a supply
order dt. 30.03.2015 has
been placed for 2 nos of Auto
cum Manual UG telephone
system 1 no. for Murpar UG
mine of Umrer Area & 1 no.
for Chattarpur II UG mine of
Patherkhera Area to ensure
smooth UG communication.
22 COMPUTERISATION
Status of activities of systemdepartment planned for the year
2014-15 :
Sr.No1
2
3
4
5
6
Particulars of Activities
Implementation of Biometricattendance at All Areas andunits.
Implementation of deployment of acentral data base server connectedup-to Mine/Weighbridge level withMPLS/ VPN network (to be providedby E & T department) afterprocurement of the same
Implementation of PF andPension central Database afternetworking is established.
Implementation of four modules ofCoalNet Package afterprocurement of consolidatedservers , modification of thepackage to suit WCL requirementseither through outside agencies orin house and establishment ofnetworking up-to unit/weighbridgelevel.
Replacement and installation of485 personal computers.
Implementation of modifiedpayroll package interfacing withother application
Status
Implemented at HQ. Andwill be implemented in allAreas and Units by July 2015.
Tender has been floatedfor Centralized server andto be opened on 7.5.2015.
To be implemented afterestablishment of highspeed network up-to unitlevel by E&T dept forwhich tender has beenfloated and Price bid hasbeen opened.
Procurement of consolidatedServers : tender is to be openedon 07.05.2015Modification ofthe CoalNet package to suitWCL requirements. Tender hasbeen floated and opened on7.4.2015. TCR is beingp r e p a r e d . H o w e v e r ,modification of the package isbeing carried out in-house alsoand out of total 13 modules ofCoalNet , 2 modules (PIS &ADM) have been implementedat HQ. Payroll and S&M are ontrial run. MMS & FAS will beimplemented soon beforeOct’15).
Administrative approvalfor procurement ofPersonal Computersthrough DGS&D ratecontract is under process.
Trial run of modifiedPayroll is going on.
42
ANNUAL REPORT 2014-15
23. ROLE PLAYED BY WCL INDEVELOPMENT AND SUSTAININGSMALL SCALE INDUSTRIAL UNITS
23.1 WCL, a key Public Sector company inthis region, is making all efforts indevelopment of Small Scale Industrialunits in Vidarbha Region. WCL hasfully implemented MSE Policypromulgated on 23rd March, 2012by Ministry of MSME. All the benefitsas per MSME Policy are also availableto Stores and Spares required in WCLin various National Level and StateLevel Vendor Development Programsarranged by MSME Development
Institute, Nagpur.
24 MANAGEMENT OF INVENTORIES
24.1 WCL has maintained its position as thetop (amongst CIL subsidiaries) inrespect of Inventory Management.Online MMS has been introduced inWCL and all the functional activities arebeing done through OL-MMS.
24.2 Comparative position of net inventoryvis-à-vis annual consumption of storesand spares in respect of last threeyears is as under
:
Note : Although, there is an increase in the prices of stores
and spares by approx 5%, the increase in inventory
is marginal i.e. 1.86% in absolute value. Inventory
during month’s consumption has remained practically
same.
24.3 To have better control over inventoryand consumption, 47 charged off storeshave been computerized.
24.4 LONG TERM AGREEMENT :
Indian Oil Corporation Ltd., has enteredinto a Long Term Agreement (LTA) withWestern Coalfields Ltd., on 22-10-2014
for supply of Diesel for 3 years which
is further extendable for 2 years with
due approval of WCL Board.
This agreement gives a win-win
opportunity to both the organizations.
IOCL has got assured market of nearly
Rs.1500 Crores for the next three years
and WCL has got assured and
dependable supply source of Diesel
and with maximum benefit of approx.
Rs.438/- per KL, against previous
discount of Rs.50/- per KL. Net savings
in three years agreement period will be
Rs.9.33 Crores.
On similar lines, Hindustan Petroleum
Corporation Ltd., has entered into a
Long Term Agreement (LTA) with
Western Coalfields Ltd., for supply of
Diesel for 3 years which is further
extendable for 2 years with due
approval of WCL Board. Net savings
in three years agreement period will be
Rs.1.18 Crores.
24.5 SPECIAL AGREEMENT :
24.5.1 WCL has entered into a MoU with M/s
SAIL for supply of various types of Iron
and Steel materials w.e.f. 01- 04-2014.
The validity of MoU was up to 31-03-
2015 for off take value of Rs.51.75
crores for an approximate quantity of
11000 M.T. WCL is first amongst CIL
subsidiaries to have such an
agreement for smooth supply of Iron
and Steel materials.
24.6 e-PROCUREMENT :
24.6.1 WCL has introduced e-tendering with
e-price bid with effect from September,
2009. During the F.Y. 2014-15, all the
cases of material procurement in
respect of both Head Quarter and Area
Purchase with threshold limit of more
than Rs.2.00 Lakhs in each case were
finalized through e-tendering mode.
(Fig. Rs. in Lakhs)
Sr. No. Financial Net Annual Inventory in % age
Year Inventory Consumption terms of change inmonths inventory
consumption
1 2012-13 7467.17 99824.00 0.93 -10.37%
2 2013-14 7195.00 114382.00 0.75 - 3.64%
3 2014-15 7328.54 114552.00 0.77 +1.86%
43
WESTERN COALFIELDS LIMITED
During the current year, total 1551 nos.of e-tenders have been floated withestimated amount of Rs.1173 Crore.CIL concluded a contract with NationalInformatics Centre, New Delhi forproviding e-tendering services to CILand its subsidiaries.
24.7 MODEL DEPOT AGREEMENT :
24.7.1 Being the lead company nominated by
Coal India Limited, WCL has finalized
the Model Depot Agreement with M/s
Bharat Power Corporation Limited for
supply of transmission spares.
24.8 DISPOSAL :
24.8.124.8.124.8.124.8.124.8.1 WCL has achieved the target fordisposal of scrap and unserviceableitems during the year 2014-15. Year-wise disposal value is as below :
(Rs. in Lakhs)
25.125 .125 .125 .125 .1 Manpower Manpower Manpower Manpower Manpower
25.1.125.1.125.1.125.1.125.1.1 The Company’s manpower as on31.03.2015 as compared that on31.03.2014 is furnished below :
25.2 HUMAN RESOURCE EVELOPMENT
(HRD), WCL - 2014-15
25.2.1. During the financial year 2014- 15 WCL
achieved a total of 193242 Training
mandays through Internal and External
training initiatives for Executives,
Supervisors and Workers. Percentage
of Training Plan was 133% against
YYYYYearearearearear
2 0 1 1 - 1 2
2 0 1 2 - 1 3
2 0 1 3 - 1 4
2 0 1 4 - 1 5
TTTTTarararararggggget fet fet fet fet for Saleor Saleor Saleor Saleor Sale
830
960
1 0 0 0
2 0 0 0
Sale Sale Sale Sale Sale VVVVValuealuealuealuealue
1 1 9 3
952
1 7 2 5
2 4 0 0
R e a l i z a t i o nR e a l i z a t i o nR e a l i z a t i o nR e a l i z a t i o nR e a l i z a t i o n
1 0 8 6
869
1 6 5 6
1 8 7 0
Planned Training Mandays 145489.
Expenditure incurred towards training
during financial year 2014-15 is Rs 16.09
Crore.
25.2.2 IN-COMPANY TRAINING :
In-Company training plays a vital role
in improving knowledge, skill and
attitude leading to overall development
of Human Resources. Four Institutes
viz. Management Development
Institute (MDI)-Nagpur, Supervisory
Training Institute (STI)-,Chhindwara,
Workers Training Institute (WTI) -
Wardha and HEMM Training Institute
(HEMMTI)- Durgapur and 12
Vocational Training Centres impart
functional, cross-functional and other
training courses for the executives,
supervisors and workers. In addition,
the executives are also imparted
specialized contextual training at Indian
Institute of Coal Management, Ranchi.
A) 188282 training mandays of
executives, supervisors and workers in
the 04 Institutes and 12 Vocational
Training Centres have been achieved
during 2014-15 as tabulated below:
In CompanyTraining Mandays
VTCs andInsittutes1 8 8 2 8 2
I I C M
1 2 5 3
Institution Basedand Seminars
3 5 9 4
Fore ignTra in ing
1 1 3
Tota l
1 9 3 2 4 2
Out Company Training Mandays
Sl..Sl..Sl..Sl..Sl.. CategoryCategoryCategoryCategoryCategory Manpower as on Manpower as on Manpower as on Manpower as on Manpower as on
No.No.No.No.No. 31.03.201431.03.201431.03.201431.03.201431.03.2014 31.03.201531.03.201531.03.201531.03.201531.03.2015
1 Executive ` 2693 2 6 3 1
2 Supervisor 5 2 2 7 4 9 2 1
3 Clerical 2 8 1 6 2 6 7 5
4 Highly Skilled / Skilled 26126 24772
5 Semi-skilled / Unskilled 15135 14586
6 Company’s Trainee 487 486
T O T A LT O T A LT O T A LT O T A LT O T A L 5248452484524845248452484 5007150071500715007150071INSTITUTESINSTITUTESINSTITUTESINSTITUTESINSTITUTES
MDI, NAGPUR
WTI, WARDHA
STI, CHHINDWARA
HEMM TI,
D U R G A P U R
AREA BASED
T R A I N I N G
INITIAL TRAINING
R E F R E S H E R
T R A I N I N G
SPECIAL TRAINING
TTTTT OOOOO TTTTT A LA LA LA LA L
EXEEXEEXEEXEEXE
2 2 6 1
-
-
1 0 3
8 3 4
-
-
-
3 1 9 83 1 9 83 1 9 83 1 9 83 1 9 8
SUPSUPSUPSUPSUP
1 8 0
1 3 8
4 1 3
9 2
5 3 2
-
-
-
1 3 5 51 3 5 51 3 5 51 3 5 51 3 5 5
TOTALTOTALTOTALTOTALTOTAL
6 1 8 1
3 6 0 4 0
8 0 1 2
2 7 6 9
1 3 3 1 4
3 8 8 2 8
7 9 4 8 3
3 6 5 5
1 8 8 2 8 21 8 8 2 8 21 8 8 2 8 21 8 8 2 8 21 8 8 2 8 2
WORWORWORWORWOR
4 0 8
3 3 3
7 8 7
6 2 3
4 7 1 5
8 8 7
7 3 8 6
1 4 8 8
1 6 6 2 71 6 6 2 71 6 6 2 71 6 6 2 71 6 6 2 7
TOTALTOTALTOTALTOTALTOTAL
2 8 4 9
4 7 1
1 2 0 0
8 1 8
6 0 8 1
8 8 7
7 3 8 6
1 4 8 8
2 1 1 8 02 1 1 8 02 1 1 8 02 1 1 8 02 1 1 8 0
44
ANNUAL REPORT 2014-15
B) NUMBER OF PERSONS TRAINED AT
IICM, RANCHI
25.2.3 OUT-COMPANY TRAINING :
Human Resource Development
Department acts as nodal department
to arrange and provide Out- Company
training to the employees to expose
them to the Global and Sectoral
industrial environment through
participation in various seminars,
Conferences, institution based training
in the educational institutes and Original
Equipment Manufacturers facilities.
a) Within Country
During FY 2014-15, the employees have
been nominated to attend training
programmes organised by various
Educational Institutes such as Indian
School of Mines University (ISMU),
Dhanbad , Indian Institutes of
Technology (IIT), National Institutes of
Technology(NIT), Banaras Hindu
University, Varanasi, C-Dac Pune and
various organisations such as Indian
Institute of Industrial Engineering (IIIE)
Mumbai, Institute of Public Enterprise,
Hyderabad, Administrative Staff
College of India, Hyderabad, Indian
Institute of Materials Management
(IIMM), National Productivity Council
(NPC), MGMI , National Institute of
Personnel Management (NIPM) ,
Gandhi Labour Foundation Puri etc and
Manufacturers (OEM) such as BEML,
L&T etc. In order to improve the
efficiency and productivity of
supervisors and workers by sharpening
their managerial , technical and
functional skills, they have been
nominated to Gandhi Labour
Foundation(GLF), Puri.
The breakup of executives, supervisorsand workers sent for Out-companytraining is as given below :
b) Foreign Training :
Apart from various types of Out-company training in India, employeesare also sent abroad for different typesof study tours, trainings, development
courses, inter-national Exhibitions/Expo etc.
25.2.4 SAFETY TRAINING :
Under VT Rules, various trainings suchas Initial, Refresher and Specialtrainings are imparted to the workersworking in mines. This purpose isfulfilled by 12 VTCs located in differentAreas of WCL. Additionally,Contractors' workers, who play animportant role in today's scenario, arealso imparted Initial and Refreshertraining in our VTCs. As perrecommendation of 8th / 9th Safety
Conference, the supervisors are
provided Safety training in the
respective Institutes. The break-up
of various types of safety training
imparted during 2014-15 is tabulated
below :
EXE SUP WOR TOTAL Trg. Mandays
IICM RANCHI 256 - - 256 1253E X EE X EE X EE X EE X E S U PS U PS U PS U PS U P W O RW O RW O RW O RW O R TTTTTOOOOOTTTTTA LA LA LA LA LTTTTTrrrrrg.g.g.g.g. Manda Manda Manda Manda Mandaysysysysys
Out-CompanOut-CompanOut-CompanOut-CompanOut-Company y y y y TTTTTrainingrainingrainingrainingraining
(including GLF, Puri) 7 3 2 6 8 5 8 8 5 8 3 5 9 4
EXE SUP WOR TOTAL Trg. Mandays
IICM RANCHI 10 - - 10 113
TYPE OF TRAINING TYPE OF TRAINING TYPE OF TRAINING TYPE OF TRAINING TYPE OF TRAINING NO. OF WORKERS /NO. OF WORKERS /NO. OF WORKERS /NO. OF WORKERS /NO. OF WORKERS /SUPERSUPERSUPERSUPERSUPERVISORS VISORS VISORS VISORS VISORS TRAINEDTRAINEDTRAINEDTRAINEDTRAINED
1. INITIAL TRAINING 887
2. REFRESHER TRG 7386
3. SPECIAL TRG 1488
4. AREA BASED TRAINING 6081
5. CONTRACTORS’ WORKERS TRG
a) Initial training 3006
b) Refresher training 309
c) Area based trg 723
6. TRG. FOR SUPERVISORS
(as per 8th / 9th Safety Conf.)
a) Mining 227
b) E&M 108
c) Excv 3 3
S.S.S.S.S.No.No.No.No.No.
45
WESTERN COALFIELDS LIMITED
25.2.5 TRAINING UNDER APPRENICE ACT :
This year, 592 apprentices were
engaged in various trades such as Fitter,
Electrician, Materials Handling
Equipment Operator-cum- Mechanic
(MHEO), Mining (Trainee) etc against the
quota of 404.
25.2.6. TRAINING OF SC / ST / OBCS :
Training for upliftment of SC/ST/ OBCs
has been an important thrust area for
the company.
SC / ST / OBC Training (In-company &
Out-company) :-
SC - 2928
ST - 1572
OBC - 4702
25.2.7.During FY 2014-15, training of
employees in different Skill
Improvement courses was the thrust
area and accordingly initiatives were
taken as below :-
i) 79 Executives of WCL have
par ticipated in the training
programme "CERTIFIED
TRAINING IN PROJECT
MANAGEMENT" organized at
following Institutes :
a) Advance Computing Training
School, C-DAC, Pune
b) Indian Institute of Coal
Management, Ranchi
ii) 25 Executives of WCL have
participated in the Course on
"CERTIFIED TRAINING IN
CONTRACT MANAGEMENT"
organised at Indian Institute of
Coal Management, Ranchi.
iii) Training programmes / Workshop
on subject - "Formal training in
Environment, Forest Management
and Land Acquisition" were
organised at Management
Development Institute, Nagpur
during the financial year 2014-15
in which 29 Executives have
participated.
iv) 07 Executives from the companyhad participated in the on "Formaltraining in Risk Management”organized by Indian Institute ofCoal Management, Ranchi.
v) Training of “Mine Managers or
other Executives to make them
aware of conditions stipulated in
Environmental Clearance” was
organised at Management
Development Institute, Nagpur, in
which 23 Executives of WCL had
participated.
vi) For Developing Critical mass of
Leaders, a training programme
“Leadership Development
Programme” has been designed
and successfully organised at
Management Development
Institute, Nagpur & Indian Institute
of Coal Management, Ranchi.
Total 236 Executives of WCL were
trained during the year 2014-15.
During the financial year 2014-15, WCL
achieved a total of 193242 Training
Mandays through Internal and External
Training initiatives to Executives,
Supervisors and Workers, against
Target Mandays - 145489. Total
Number of persons trained is 22304
AWARDS :
Western Coalfields Limited was
bestowed with the award of “Best
Innovative Practices in Human
Resource” under the head of “Building
a Great Place to work with Powerful
Results” during Asia Pacific HRM
congress 2014 on 11-12 Sept 2014 at
Bengaluru.
46
ANNUAL REPORT 2014-15
26. SCHEDULED CASTES AND
SCHEDULED TRIBES/OBC.
26.1 As on 31/03/2015, the details of
number of employees including the
number of SC/ST/OBC is furnished
below .
26.2 The Presidential directives of SC/ ST
and OBCs are being implemented in
respect of recruitment as well as in
promotion.
27. WORKERS' PARTICIPATION IN
MANAGEMENT :
27.1 The Steering Committee at Company
level comprising of CMD and all
Functional Directors and Trade Union
representatives of five central trade
unions viz. INTUC, BMS, AITUC,
HMS, CITU and representatives of
CMOAI and GM(P&IR) is functioning
smoothly.
The broad functional areas of the
Steering Committee include:
i) Formulation and evaluation of
Action plans/budgets;
ii) Resources utilization:
iii) Cost/profitability:
iv) Quality of coal:
v) Safety:
vi) Employees' welfare and
vii) Environmental protection
27.2 The periodical meetings of the Steering
Committee were held regularly which
not only helped in inducing cordial
industrial relations but also in achieving
organizational goal.
Total No. of employees SC ST OBC
as on 31/03/2015
5 0 0 7 1 1 0 1 8 8 3 8 9 6 1 4 0 2 1
27.3 Employment to dependants :
During 2014-15, under the provision of
NCWA, employment to 692
dependents of employees and
monetary compensation to 59 was
sanctioned. Further employment to 26
dependents under Special Female
Voluntary Retirement Scheme was
also sanctioned for posting at CMPDIL.
28. INDUSTRIAL RELATIONS :
28.1 Industrial Relations scenario in WCL
during the fiscal 2014-15 harmonious.
28.2 Status of Industrial Relations during
the FY 2013-14 and 2014-15 is given
as below :-
28.3 Recruitment during FY 2014-2015
:
i) Job provided to land oustee- 665
ii) Mining Sirdar - 02
iii) Surveyor Mining - 04
Notified for recruitment of following posts :
a) Mining Sirdar - 438
b) Mine Surveyor - 27
28.4 Promotions during 2014-15
As part of career care of employees,
2452 non-executive employees of
various disciplines were given
promotions.
Law & order incidents 2013-2014 2014-2015
Relay Hunger Strike Nil Nil
Gherao Nil Nil
Assault Nil Nil
Dharna/Morcha/Demonstration 01 02
Total 1 2
Strike/Work Stoppage
No. of strikes 01 1
Mandays lost 2493 53716
Production loss (Te.) 9700 263900
47
WESTERN COALFIELDS LIMITED
28.5 Grievance Redressal:
In order to redress the grievances of
employees in WCL, a well-defined
system is in vogue:
i) During the year 457 grievances
were received out of which 419
were redressed i.e. 91.6 %.
ii) During 2014-15 total 253
structured meetings were held with
the employees representatives of
Central Trade Unions at operating
areas and Head Quarter.
29. WELFARE MEASURES AND
SOCIAL AMENITIES :
29.1 Group Gratuity Scheme :
29.1.1 WCL adopted LIC's Group Gratuity
Scheme as a part of its sound financial
management system for providing
gratuity liability every year and claiming
the tax benefit. Unique feature of the
scheme is to ensure notional gratuity
in the event of premature death.
The Group Gratuity Scheme is in
vogue with effect from 10th
March,2003. The actuarial liability as on
31/03/2015 is Rs 2247.25 crores and
unpaid liability will be paid to Life
Insurance Corporation of India. The
trust had earned an interest amounting
to Rs. 197.00 crores @ 9.52% under
existing scheme for old members and
Rs. 1.42 crores @ 9.25% under revised
scheme as per IRDA for new members
in the year 2014-15.
29.1.2 Payment of Gratuity :
An amount of Rs 252.92 Crs was paid
to 2769 superannuated/separated
employees and an amount of Rs 7.04
Crs Life cover in addition to Rs 23.49
Crs Gratuity was paid to the nominees
of deceased employees during the
financial year 2014-15.
29.2 WELFARE AMENITIES:
29.2.1 Following are the details of various
amenities for the welfare of our employee:
29.3 Family Welfare:
29.3.1 During 2014-15 under Family Welfare
Programmes, total beneficiaries were
3588 (TT+VT) out of which 36 camps
with 1211 beneficiaries were organised
in collaboration with State Health
Authorities.
30. GAMES & SPORTS
Company has secured 1st position in
Table Tennis, Kabaddi and Body Building
and 2nd position in Carom and
Badminton in last CIL Inter Company
Tournament.
31. Brief outline of the company's CSR
policy:
31.1 While implementing CSR activities,
WCL follows the CSR policy framed
by CIL reference no. CIL/CSR/2014/
1082 dated 13.06.2014 incorporating
the features of Companies Act 2013
and the notifications issued by the
Ministry of Corporate Affairs,
Government of India on 27.02.2014 as
well as Department of Public
Enterprises (DPE) guidelines.
The main objective of CSR policy is tomake CSR a key business process forsustainable development for the
Sl.No.Sl.No.Sl.No.Sl.No.Sl.No. Detai lsDetai lsDetai lsDetai lsDetai ls As on 31.03.As on 31.03.As on 31.03.As on 31.03.As on 31.03.1515151515
1 (i) Houses- Standard - 42527(ii) Non-Standard - 10086 5 2 6 1 3
2 Water Supply (Population covered) 3 ,23 ,8553 Schools (receiving recurring, non
recurring grants or infrastructural facilities) 1 54 Co-operative Stores 2 4
5 Co-operative Societies 4 56 Bank Branches/ Extension Counters 1 1 3
7 Ambulances 1 1 18 Dispensaries 5 4
9 Hospitals 1 11 0 Canteens 7 9
1 1 Gymnasiums 2 71 2 Stadium 1 3
48
ANNUAL REPORT 2014-15
Caring - Providing Medical facilities to the nearby villagers in command Areas of WCL
through Mobile Medical Van.
Society. It aims at supplementing the
role of the Government in enhancing
welfare measures of the society based
on the immediate and long term social
and environmental consequences of
their activities.
The primary beneficiaries of CSR in
CIL and its subsidiaries are land
oustees, Project affected persons
(PAP's) and those staying within the
radius of 25 kms of the project areas.
Poor and needy section of the society
living in different parts of India are the
secondary beneficiaries.
The CSR action plan is prepared in
Consultation with the District
Authorities/ Govt. Official/ Village
Panchayat/ Sarpanch/ Gram Sevak.
CSR activities are carried out in the
arena of Education, Water supply,
Health care, Environment, Social
Empowerment, Skill Development,
Infrastructure support, Village
electricity/solar lights, Sports and
Culture, Grant/donation/ Financial
assistance, Empowerment to women,
Relief to victims of natural Calamities,
Disaster management activities to
bring meaningful & sustainable
changes in the living standards of
villagers.
CIL's CSR Policy is available in thecompany's website: westerncoal.nic.in
31.2 Overview of projects or programsproposed to be undertaken
31.2.1 Vision of CSR activities for next fiveyears i.e. 2015 2020
31.2.2 The composition of the CSRCommittee
CSR & Sustainable development
committee at company level was
49
WESTERN COALFIELDS LIMITED
Promoting Sport - A Hockey Match in Progress
constituted on 05.01.2012 consisting
of the following:
Independent director – Chairman
Director (Personnel) – Member
Director (T/P&P) – Member
During the financial year 2014-2015
there was no Independent Director on
the Board of Western Coalfields
Limited.
In Western Coalfields limited there is
a CSR Cell at HQ level headed by
General Manager (CSR) and a CSR
committee of company having
representative of Finance, Civil,
Environment, CSR and Medical
discipline and also Area level CSR
committee headed by Area General
Manager having representative of
Personnel, Finance, Civil, Environ-
ment and Medical discipline was
functional during the year 2014-15.
31.2.3 Average net profit of the company
for last three financial years.
Average net profit of the company for
the last three financial years (i.e. 2011-
12, 2012-13 & 2013-14) is Rs.
3,98,40,16,793.19 (Rs. 398.40
Crores). Details are given below :
31.2.4 As per the provision of The
Companies Act, 2013, Company is
required to spend 2% of the average
S.N Year/Particulars Net profit( Rupees in crores)
a 2 0 1 1 - 1 2 4 4 0 . 4 9
b 2 0 1 2 - 1 3 4 2 8 . 8 7
c 2 0 1 3 - 1 4 3 2 5 . 8 6
d Total (a +b +c) 1 1 9 5 . 2 2
e Average Net Profit (d)/3 3 9 8 . 4 1
50
ANNUAL REPORT 2014-15
of last three years' net profit which is
Rs.796.80 lakhs. However, your
Company has spent Rs.2014.83 lakhs
during the period which is Rs.1218.03
lakhs more than the prescribed
requirement.
31.2.5 Details of CSR amount spent during
the financial year.
i) Total amount to be spent for the
financial year-Rs.796.80 Lakhs
ii) Total amount spent for the
financial year-Rs.2014.83 Lakhs
iii) Amount unspent, if any
- Not applicable.
iv) Manner in which the amount spent
during the financial year is detailed
below :
(Figures in Rs. Lakhs)
Promoting Sport - A Hockey Match in Progress
51
WESTERN COALFIELDS LIMITED
31.2.6 In case the company has failed to
spend the two percent of the average
net profit of the last three financial years
or any part thereof, the company shall
provide the reasons for not spending
the amount in its Board report -
Not applicable.
31.2.7 A responsibility statement of the CSR
Committee that the implementation and
monitoring of CSR Policy, is in
compliance with CSR objectives and
Policy of the company.
Implementation & monitoring of CSR
Policy in WCL is in compliance with
CSR objectives and policy of company.
31.2.8 With a view to encourage unemployed
rural youth for self- employment, 100
youth residing nearby villages of
Chandrapur and Ballalrpur Areas of
Company were trained in Welding and
Fabrication through an external agency
namely Maharashtra Centre for
Entrepreneurship Development' a Govt.
of Maharashtra organization.
31.2.9 In order to strengthen the infrastructure
of nearby villages 9.29 kms of road
was constructed during the FY 2014-15
32. PENSION
32.1 Processing and sanction of Pension
cases :
WCL is torch bearer and trail blazer in
CIL for implementing the provision of
CMPS 1998. All 4197 Pension claims
received during the year 2014-15 were
settled.
32.1.1 Up to 31st March 2015, ( Since
inception of the scheme) total 55337
claims were received, out of which
55297 claims were settled by CMPF
Office Nagpur Region & Chhindwara
Region. 40 balance claims were under
process.
A Step Forward - Members of Jhankar Mahila Mandal of WCL at a Medical Camp jointly
organized with ‘Help Age India’ at Manewada, Nagpur.
52
ANNUAL REPORT 2014-15
32.2 Computerization of processing
Pension & PF Claims:
The processing of Pension/PF claims
has been completely computerized and
the database is maintained for future
reference in respect of all the claims.
The individual data sheet is provided to
all the Pensioners.
32.3 Settlement of Pension/PF in the
month of Superannuation under
“Mission Biswas”
The status of settlement of PF/ Pension
claims under MISSION- BISWAS
during the year 2014-15 is as under :
32.4 Pension Help Line :
Pension help line is in operation forsolving the problem being faced by thePensioners, and dedicated efforts arebeing made to sort out the issue, if any.During the financial year 2014-2015total 334 calls including grievances inwriting were received, out of which 327cases were cleared and feedbackabout the action taken was given.CMPF-Office at Nagpur, at Chhindwaraand concerned Nationalized Bankswere persuaded for expeditiousdisposal of balance cases.
32.5 Submission of Annual VV Statement forthe year 2013-14 and for the year 2014-15. WCL had always given priority intimely submission of “VV” statements.“VV” Statements for the currency periodending 3/2014 in respect of all the Units/Areas under Regional CommissionerCMPF Nagpur & Chhindwara, havebeen submitted within the scheduledtime. Further, “VV” statements for theperiod from April 2014 to January 2015were also submitted within scheduledtime.
33 PROGRESSIVE USE OF HINDI 2014-
15 :
In accordance with official Language
policy of Government of India following
efforts were made during 2014-15 for
popularising the use of Hindi in official
working and progressive use of Hindi
in the company.
33.1 During the Year 2014-15, three
numbers of Rajbhasha Workshops
were organised, in which, 151 officer/
employees participated. The
participants were acquainted with
Official Languages Act and Rules,
Rajbhasha targets and practiced Hindi
noting, drafting and Hindi
correspondence.
33.2 Meetings of Official Language
Implementation Committee were held
regularly in each quarter to review Hindi
progress and steps taken to achieve
Rajbhasha targets. Total 12 Nos. of
meetings were held during the year
2014-15, Eight offices of WCL were
inspected to review compliance of
Official Languge Act and Rules.
33.3 In order to popularize the use of Hindi
words substituting English Words in
day to day official works, “Aaj ke shabd”
were displayed near entrance of the
Headquarter office building and at Area
Offices regularly.
33.4 During the financial year, 4 issues of
bi-lingual In-house magazine “Pragati”
and 25 issues of Hindi fortnightly “Wall
poster“ were published, highlighting the
activities and performance of WCL.
33.5 Celebration of 'Hindi Diwas' on 14th
September 2014 in the Company, was
followed by a week long observation of
Rajbhasha Saptah during 15th to 20th
September. On this occasion various
events of competition such as, self
created Poetry, general knowledge,
cross word, for Non-Hindi employees,
No. of Employees
superannuated from
April 2014 to March 2015
A
2489
No. of claims submitted
to CMPF – O, out of A.
B
2481
Balance
C
08
53
WESTERN COALFIELDS LIMITED
Antaaxary and “Prashna Manch” were
organised for furthering the use of Hindi.
Winners of these competitions, were
felicitated and Prizes were given away.
Outstanding performers amongst the
Areas and Hq. Departments in the
promotion of Hindi were awarded with
“Raajbhasha Shield/Cup.
33.6 At present 6768 Hindi Books on various
subjects are available in Dinker Hindi
Library for use of employees. Besides
this, 5 Hindi monthly magazines were
also made available.
33.7 3 issues of E- Magazine “Rajbhasha
Vividha“ was uploaded on WCL
Website for encouraging upcoming
Writers .
33.8 AWARDS
During All India Rajbhasha Seminar at
Khajuraho from 29.10.2014 to
31.10.2014 organized by 'Rajbhasha
Vikas Sansthan', Dehradun following
awards were conferred to
i) Sri Rupak Dayal, Director
(Personnel) WCL - “Rajbhasha
Keerti Samman“ Shri Chetan
Yadav, Manager (Secty./
Rajbhasha) - “Vishesh Rajbhasha
Vishishta Samman“
ii) Shri Hardal Singh, Sr. officer
(Secty./Rajbhasha)- “Rajbhasha
Shilpi Samman”.
34. ENVIRONMENT AND ECOLOGY:
34.1 Your Company is aware of its
responsibilities towards the environment
and ecology aspects of project
management and is taking due care for
Environmental Protection and Pollution
mitigative measures in all operating
mines. Status of the different activities
under environment management as on
31-03-2015 is as under:
34.1.1 Environmental Impact Assessment
(EIA)/Environmental Management
Plans (EMPs) for new Projects/ Existing
Projects – Status of Environmental
Clearance:
The company has received
Environmental Clearance for 7(seven)
projects/mines namely Harradol UG (
0.135 MTPA ), Ghonsa OC Expn. ( 0.60
MTPA ), Shivani OC ( 1.4375 MTPA ),
Pauni OC Expn. ( 0.90 MTPA ),
Ballarpur OC Expn. ( 0.625 MTPA ),
Gouri Deep OC Expn. ( 0.60
MTPA),Bhatadih OC Expn. ( 0.975
MTPA ) during the year 2014-15 as per
EIA Notification, 2006.
In view of envisaged enhancement of
production during the year from Pauni
OC, pending proposal of environmental
clearance was pursued on priority and
secured the same. With the relaxation
of CEPI pending application of Ballarpur
OC was considered and EC was
granted by MoEF. Fur ther, for
augmenting production EC capacity
expansion in respect of Bhatadih OC
and Gouri Deep OC Expn,was taken up
in the midst of FY 2014-15 on fast track
and obtained their ECs. Formal ECs
were also received during the year for
new Projects, Shivani OC and Harradol
UG as they were pending with MoEF/
SEIAA since long.
34.1.2 Terms of Reference (TOR)
The company has received Terms of
Reference (TOR) of Four (4) Projects
viz. Hindustan Lalpeth OC Expn. (1.25
MTPA ), Chinchala Chikalgaon OC
(3.90 MTPA), Mungoli Nirguda
Extension Deep OC ( 3.90 MTPA ) &
Nandan–II UG Extn.(In Dhau North
Block)( 0.405 MTPA ) as per EIA
Notification, 2006 during the year 2014-
15 from Ministry of Environment &
Forests, Govt. of India.
54
ANNUAL REPORT 2014-15
34.1.3 Implementation of EMPs approvedby MOEF
The projects having EMPs approved
by MOEF are implemented and thereports on compliance of MOEFstipulations as given in the respectiveEnvironmental Clearances (ECs) aresubmitted every six months to IADivision, MOEF, New – Delhi and
Regional Office, Western Region,Bhopal. Certificates of EC complianceobtained from Regional Office,MoEF&CC, Bhopal in respect of PauniOC, Ballarpur OC, Gouri Deep OC &Bhatadi OC.
34.2 Afforestation
34.2.1 In compliance of environmentalclearance conditions under MoU,20000 saplings of Bamboo alongtransport roads in mines areas and27500 of other local multi species have
been planted in FY 2014-15 in theadjoining mining areas through StateForest Development Corporations.
34.2.2 The plantation work was executed byState Expert Agencies viz; ForestDevelopment Corporation of
Maharashtra Limited and MadhyaPradesh Rajya Van Vikas NigamLimited. 182.69 lakh saplings havebeen planted upto 31.03.2015,covering an area of 6621.20 Ha in itscommand area in the state of
Maharashtra and Madhya Pradesh.
34.2.3 During FY 2014-15 plantation over 125Ha of degraded forest land inChandrapur (100 Ha) & Yavatmal (25Ha) districts was undertaken throughForest Development Corporation of
Maharashtra Limited as a part of CSRactivities for securing “Green Credits”.
34.3 Other Environmental MitigationMeasures completed in 2014-15
34.3.1 Land Reclamation Monitoring through
Remote Sensing Technique
34.3.1.1 Progress of afforestation in the below
mentioned 10 major OCPs producing
more than 5 million cubic meter
(Coal+OB) is monitored regularly by
CMPDIL on yearly basis, through
Satellite Imagery which indicates that
the increase in green cover area by
11.26 Sq.Kms during the years 2008-
2014.
i) Sasti OC
ii) Durgapur OC
iii) Padmapur OC
iv) Niljai OC
v) Mungoli OC
vi) New – Majri OC
vii) Umrer OC
viii) Ukni OC
ix) Pimpalgaon OC
x) Ghughus OC
34.3.2 Conservation of Natural resource
34.3.2.1Company is concerned with
conservation of water resources. To
improve water availability and increase
the level of ground water, two number
of Rainwater Harvesting Schemes
were implemented in FY 14-15 one
each in Chandrapur and Umrer Areas.
34.3.2.2 Quality of effluent is an important
parameter of natural resource like
water, an initiative in this regard was
taken by implementing two Nos. of
Recycling Projects at Gondegaon OC,
Nagpur Area and Central Workshop –
Tadali, for industrial waste water.
34.3.3 Initiative towards non- conventional
source of energy – LOA for two number
of schemes for generation of 140 KWp
(80 KWp in Nagpur Area + 60 KWp in
Ballarpur Area) of solar energy was
issued.
55
WESTERN COALFIELDS LIMITED
34.4 Environmental Awareness
34.4.1 Environment Week (June 1 – 7, 2014)
and World Environment Day on 5th
June, 2014 were observed in your
Company at HQ, Area Levels and
Project Levels.
34.4.2 The activities undertaken during the
week – long celebration were as
follows:-
i) Pledge on Environment Protection
as per UN- theme” Small Islands
and Climate Change” taken by all
employees both at Corporate (HQ)
and at all areas. ii)
Organizing various competitions
among wards of employees viz.
Drawing, Slogan etc
iii) Plantation & distribution of plants
iv) Awareness on environment.
35. VIGILANCE
35.1 Preventive Vigilance :
31.1.1 In order to increase transparency in
dealing with public matters, online
complaint handling system has been
introduced. Now complaint can be
made online from any place and the
complaint is also being processed
online. It has three users interface where
a complainant and top most officials of
the company can directly look into the
complaint. The complaint rests with the
dealing officer till the report is submitted
to CVO. All tenders irrespective of its
value are being uploaded on the
company's website. This year one
souvenir consisting of various articles
related to Vigilance Awareness and list
of circulars issued by CVC, DOPT, CIL
& WCL have been compiled &
published and distributed for the benefit
of officers dealing with similar tasks. 24
Protecting Environment - Tree Plantation on the overburden at one of the Opencast Mine of WCL.
56
ANNUAL REPORT 2014-15
surprise inspections were conducted by
Vigilance Department. Circulars have
been issued in the initiative of Vigilance
Department to improve upon the
system of Tender procedure.
35.1.2 For improvement of procurement of
bearing by Tendering through proven
sources.
35.1.3 For improvement in the procedure for
delivery of coal against the Delivery
Orders. Stake holders'/Customers meet
was organized in all the Areas of WCL
, Total Meet held were 9.
35.2 Punitive Vigilance :
35.2.1 As punitive vigilance 45 investigations
were taken up out of which 44 have
been disposed of. The vigilance
activities have resulted into a total 10
cases(30 employees) of Regular
Departmental Action (RDA) excluding
the opening balance of 21 cases (72
employees) of Regular Departmental
Actions. Inquiry reports have been
submitted in 3 cases(6 employees)into
12 cases(28 employees) have been
imposed major penalty and 06 case (09
employees) of minor penalty have
been imposed and 06 cases(19
officers) have been issued censure or
warned/ cautioned.
35.3 Other activities like observance of
Vigilance Awareness Week,
Preparation of “Agreed List” and
“Officer of Doubtful Integrity list” and
rotation of employees on sensitive
posts have been carried out. Close
liaison with Central Bureau of
Investigation(CBI)and Central
Vigilance Commission(CVC) have
been maintained. In addition, 13103
numbers of vigilance clearance to
Executives and Non- executives were
issued. 9 Workshop/Training
Programmes on Vigilance Awareness
& Personality Development and 4
workshops for IAs and POs were
organized in which 634 and 240
executives participated respectively.
One day workshop on Financial
Management, Check and Balances
was also organized for executives of
Finance discipline in which 57
executives participated.
36. DIRECTORS :
36.1 The following persons continued to be
the Directors of your Company during
the year under report :
1 Shri R. Mohan Das, Director
2 Shri Rupak Dayal, Director
(Personnel)
3 Shri S.S. Malhi, Director (Technical)
P&P
36.2 Shri D.C. Garg, Chairman-cum- ManagingDirector (CMD) ceased to be CMD ofyour Company w.e.f. 18/06/2014 duringthe year under report.
36.3 Shri Om Prakash, Director (Technical)OP with Additional Charge of CMD(w.e.f. 05/07/2014), ceased to beDirector of your company w.e.f. 09/10/2014 during the year under report.
36.4 Dr. M.R. Anand, Director, ceased tobe Director of your Company w.e.f.27.3.2015 during the year under report.
36.5 Shri R.R. Mishra joined your Companyas Chairman-cum- Managing Directorw.e.f. 11/10/ 2014 during the year underreport.
36.6 Shri B.K. Mishra joined your Companyas Director (Technical) w.e.f. 23/05/2015.
36.7 Shri R.P. Gupta joined your Companyas Part-time official Director w.e.f. 08/
06/2015.
57
WESTERN COALFIELDS LIMITED
37.0 Corporate Governance in WCL :
37.1 Company's Philosophy :
37.1.1 Corporate Governance is a
commitment backed by transparency
in functioning, value and mutual trust
among all the constituents of an
organization. It is a self-imposed
discipline which guides the
management and employees to
function towards the goal of the
organization. It involves essentially a
creative, generative and positive
thinking activity that adds value to the
stakeholders.
37.1.2 In your Company, Corporate
Governance philosophy stems from
our belief that Corporate Governance
is a key element in improving efficiency
and growth as well as enhancing
outsiders confidence. We are making
continuous efforts to adopt the best
practice in Corporate Governance and
we believe that the practice we are
putting into place for the company shall
go beyond adherence to regulatory
framework.
37.1.3 As per self evaluation report on
compliance of Corporate Governance
Guidelines submitted to Ministry of
Coal, WCL achieved excellent rating
i.e. 94.87% for the year 2014-15.
37.2 Board of Directors :
37.2.1 Size of the Board :
37.2.1.1 In terms of Articles of Association of
the Company, strength of our Board
shall not be less than two Directors
and more than fifteen Directors. These
Directors may be either whole time
Functional Director or Part-time
Directors.
37.2.2 Composition of the Board :
37.2.2.1As on 31st March, 2015, the Board
comprised of four Directors, out of which
three were whole time Functional
Directors including the Chairman-cum-
Managing Director. one Director was
nominee of the Government of India. The
appointment of one Government nomine,
two functional Directors five independent
directors as per the constitution of Board,
is under process of approval. In addition
to this, Government has nominated three
representatives one each from Govt. of
Maharashtra, Govt. of Madhya Pradesh
and Central Railway as Permanent
Invitees on the Board of WCL. The
Directors bring to the Board wide range
of experience and skill.
37.3 Board Meeting :
37.3.1 The meeting of the Board of Directors
are normally held at the Company's
registered office at Nagpur. The
Company has defined procedure for
meeting of the Board of Directors and
Committees thereof so as to facilitate
decision making in an informed and
efficient manner. 9 (nine) Board
meetings were held during the financial
year 2014-15 on 28/04/2014, 23/05/
2014, 26/07/2014, 27/09/2014,
02.11.2014, 29/11/2014, 10/01/ 2015, 03/
02/2015 and 03/03/2015 respectively.
Details of number of Board meetings
attended by Directors are tabulated
below:-
58
ANNUAL REPORT 2014-15
37.4 Information placed before the
Board of Directors :
37.4.1 Board has complete access to any
information within the Company. The
information regularly supplied to Board
includes :-
- Annual operating plans and
budgets and any update.
- Capital budget and any update.
- Quarterly result of the Company.
- Annual Report, Directors' Report
etc.
- Minutes of the meetings of all
Board Sub-committees.
- Fatal or serious accidents,
dangerous occurrence etc.
- Operational highlights.
- Award of large contracts.
- Major investment, joint venture
etc.
- Disclosure of interest by Directors
about Directorship and position
occupied by them in other
companies.
- Non-compliance of any
regulatory, statutory requirement.
- Utilization of equipment.
- Other materially important
information.
37.5 Audit Committee :
37.5.1 The scope, constitution etc. of the Audit
Committee is in line with the guidelines
of Corporate Governance.
37.5.1.1 Scope of Audit Committee :
a) Ensure compliance of internal
control system.
b) Reviewing the financial
statements with the management
before submission to the Board for
approval.
c) Reviewing the adequacy of
internal audit function.
d) Discussions with internal auditors
any significant findings and follow
up thereon.
e) Discussions with Statutory
Auditors.
37.5.1.2 Constitution :
The Audit Committee has beenconstituted with the membership of -
i) Four Independent Directors, onebeing the Chairman of the AuditCommittee;
ii) Nominee of Ministry of Coal(MOC), nominated on the Boardof WCL;
iii) Nominee of Coal India Limited,nominated on the Board of WCLand
iv) Director (Technical) OP
Sl. Directors Meetings No. of Number ofNo. held during Board Committee
respective Meetings membership tenure of attended in theCompany
Directors in 2014-15As As
ChairmanMember
Functional Directors :
1 Shri D.C. Garg, 2 2 - -Chairman-cum-Mg. Director
2 Shri R.R. Mishra, 5 5 - -
Chairman-cum-Mg. Director
3 Shri Om Prakash 4 4 - 3
Director (Tech.) Operations
with additional charge of CMD
4 Shri Rupak Dayal, 9 9 2 1
Director (Personnel)
5 Shri S.S. Malhi,Director 9 9 1 3
(Tech.) Planning & Projects
Government Directors :
6 Dr. M.R. Anand, 9 9 1 -
Economic Adviser,
Ministry of Coal
7 Shri R. Mohan Das, 9 8 - 1
Director (P&IR),
Coal India Limited
59
WESTERN COALFIELDS LIMITED
37.5.1.3 Composition :
During the year, Audit Committee of
the Company comprised of only three
Directors, two Govt. Director and one
Functional Director as the term of
Independent Directors completed and
fresh appointment is under process of
approval by MOC.
During the year, the Audit Committee
comprised of the following :-
Dr. M.R. Anand, Govt. Director - Chairman
Shri R. Mohan Das, Govt. Director- Member
Shri Om Prapash, Director (Technical)
OP (upto 08/10/2014) - Member
Shri S.S. Malhi, Director (Technical)
P&P (w.e.f. 09/10/2014) - Member
Director (Finance) also attended the
meetings of the Audit Committee as
invitee.
37.5.1.4Meeting and Attendance :
During the year 2014-15, 5 (five)
meetings of the Committee were held.
The details of Audit Committee
meetings attended by members are as
under :-
37.6 Remuneration Committee /
Remuneration of Directors :
37.6.1 Your Company, being a Central Public
Sector Undertaking, the appointment,
tenure and remuneration of Directors
are decided by the President of India.
Hence, the Board does not decide
remuneration of the Directors.
Independent Directors are paid only
sitting fees at the rate fixed by the
Board within the ceiling fixed under the
Companies Act, 2013 for attending the
Board Meetings as well as Committee
Meetings. Details of remuneration of
Functional Directors and Key
Managerial Person of the Company for
2014-15 are given in Form MGT-9
attached with the report.
37.7 General Body Meetings / Annual
General Meetings :
37.7.1 Date, time and locations where the last
three Annual General Meetings were
held are as under:-
37.7.2 During the year one Extraordinary
General Meeting was held on 27th
March 2015 to approve the modified
Articles of Association (AoA) of your
Company and to ratify the fee paid to
the Cost Auditors for the financial year
2014-15.
37.8 Disclosure :
37.8.1 As per the disclosure given by the
Directors of the Company, there were
no material related party transactions
that have potential conflicts with the
interest of the Company. The financial
statements are prepared in
accordance with applicable mandatory
Accounting Standards and relevant
presentational requirement of the
Companies Act, 2013.
37.9 Audit Qualifications :
37.9.1 It is always the Company’s endeavour
to present unqualified financial
Members of AuditMembers of AuditMembers of AuditMembers of AuditMembers of Audit Meetings held duringMeetings held duringMeetings held duringMeetings held duringMeetings held during Meetings attendedMeetings attendedMeetings attendedMeetings attendedMeetings attended
CommitteeCommitteeCommitteeCommitteeCommittee his / her tenurehis / her tenurehis / her tenurehis / her tenurehis / her tenure
Dr. M.R. Anand 5 5
Shri R. Mohan Das 5 5
Shri Om Prakash 3 3
Shri S.S. Malhi 2 2
Date :Date :Date :Date :Date : May 25May 25May 25May 25May 25, , , , , 20122012201220122012 May 27, 2013May 27, 2013May 27, 2013May 27, 2013May 27, 2013 June 11, 2014June 11, 2014June 11, 2014June 11, 2014June 11, 2014
Time :Time :Time :Time :Time : 01.00 P.M. 10.00 A.M. 10.00 A.M.
VVVVVenenenenenue ue ue ue ue : Coal Estate, Coal Estate, Coal Estate,
Civil Lines, Civil Lines, Civil Lines,
Nagpur. Nagpur. Nagpur
SpecialSpecialSpecialSpecialSpecial
Resolu-Resolu-Resolu-Resolu-Resolu- - - - - - ----- -----
tttttions ons ons ons ons :
60
ANNUAL REPORT 2014-15
statement. Management reply to the
Statutory Auditors’ observations on the
Accounts of the Company for the year
ended March, 2015 are furnished as
an Annexure to the Directors’ Report.
Comments of the Comptroller and
Auditor General of India under Sec.
143(6) of the Companies Act, 2013 on
the Accounts of Western Coalfields
Limited for the year ended 31st March,
2015 is also enclosed.
37.10 Whistle Blower Policy :
37.10.1Your Company is a fully owned
subsidiary of Coal India Limited. Coal
India has prepared and adopted
Whistle Blower Policy which is also
applicable to all its subsidiaries. Apart
from that, your Company has an
independent Vigilance Branch, headed
by a Chief Vigilance Officer. The
Vigilance Branch, functioning under
the overall guidance of Central
Vigilance Commission, mainly lay
stresses on preventive vigilance. Drop
Box has been kept, where employees
and others can report to the Vigilance
Branch, concerns about unethical
behaviour, actual or suspected fraud
etc. and the complaints so lodged are
reviewed by the Vigilance Branch and
necessary action, as deemed fit, is
taken while protecting the identityof the
complainants.
38. CODE OF CONDUCT :
The Board of Directors has approved
a Code of Business Conduct and
Ethics for the Board members and
Senior Management.
The Code lays down the standard of
conduct which is expected to be
followed by the Directors and the
Senior Management Personnel in their
business dealing and in particular on
the matter relating to integrity at the
work place, in business practices and
in dealing with stakeholders.
All the Board members and Senior
Management Personnel have
confirmed compliance with the code.
39. AUDITORS:
In exercise of the powers conferred
by the Company at the Extra-ordinary
General Meeting held on 30th August,
2001, pursuant to provisions of section
142(1) of the Companies Act, 2013 the
Board of Directors in its 250th meeting
held on 2nd November, 2013 fixed the
remuneration of Statutory and Branch
Auditors appointed by the Comptroller
and Auditor General of India, under
section 139(5) of the Companies Act,
2013 for the financial year 2014-15.
In addition to annual audit, the auditors
are appointed for carrying out review
of 1st Quarter Accounts ended on 30th
June 2014, 2nd Quarter Accounts
ended on 30th September, 2014 and
3rd Quarter Accounts ended on 31st
December, 2014 with a fees for each
quarter @ 25% of the annual audit fees
of previous year.
The details of Auditors appointed, their
fees and other expenses approved for
Annual Audit, 1st Quarter Review, 2nd
Quarter Review and 3 rd Quarter
Review are as under -
61
WESTERN COALFIELDS LIMITED
39. MEMORANDUM OF
UNDERSTANDING
As per guidelines of Department of
Public Enterprises (DPE)
Memorandum of Understanding
(MOU) between WCL and CIL for the
year 2014-15 has been verified and
duly authenticated by Independent
Auditor, appointed by the Board for
the Performance and auditors’ report
is annexed to this report.
40. DIRECTORS’ RESPONSIBILITY
STATEMENT:
Pursuant to the requirement under
section 134 (3) (c) of the Companies
Act, 2013, with respect to Directors’
Responsibility Statement, it is hereby
confirmed:
a) That in the preparation of the
Annual Accounts for the financial
year ended 31st March, 2015 the
applicable accounting standards
have been followed along with
proper explanations relating to
material departures;
b) That the Directors have selected
such Accounting Policies and
applied them consistently and
made judgments and estimates
that were reasonable and prudent
so as to give a true and fair view
of the state of affairs of the
Company at the end of the
financial year and of the profit or
loss of the Company for the year
under review;
c) That the Directors have taken
proper and sufficient care for the
maintenance of adequate
accounting records in
accordance with the provisions of
the Companies Act, 2013 for
safeguarding the assets of the
Company and for preventing and
detecting fraud and other
irregularities; and
Statutory/BranchStatutory/BranchStatutory/BranchStatutory/BranchStatutory/Branch
AuditorsAuditorsAuditorsAuditorsAuditors
Statutory AuditorsStatutory AuditorsStatutory AuditorsStatutory AuditorsStatutory Auditors : : : : :
M/S Jodh Joshi and co,
Chartered Accountants,
Nagpur.
M/S V K Surana & co,
Chartered Accountants,
Nagpur.
Audit FeeAudit FeeAudit FeeAudit FeeAudit Fee
At actuals , subject
to maximum of ac-
tual fare plus DA
for Partners /
qualified assis-
tants @ Rs.140/-
per day and for
audit assistants @
Rs.120/- per day
for the actual man
days engaged for
audit of Areas/ of-
fices situated out-
side Nagpur city.
1
2
1
2
3
4
Rs.1,31,445/- for 1st
Quarter Review.
plus applicable taxes
Rs.5,25,780/- for
Annual Audit and
Rs.1,31,445/- each for
2nd and 3 rd Quarter
R ev i ew .
plus applicable taxes
Rs.2,18,750/- for
Annual Audit and Rs.
54,690/- each for 1st
Quarter, 2nd Quarter
and 3 rd Quarter Review
plus applicable taxes
Rs.70,310/- for 1st
Quarter Review. plus
applicable taxes
Rs.2,81,250/- for
Annual Audit and Rs.
70,310/- each for 1st
Quarter, 2nd Quarter
and 3 rd Quarter Review
plus applicable taxes
Rs.2,81,250/- for
Annual Audit and Rs.
70,310/- each for 1st
Quarter, 2nd Quarter
and 3 rd Quarter Review
plus applicable taxes
Rs.13,07,030/- for
Annual Audit and Rs.
3,26,755/- each for 1st,
2nd and 3 rd Quarter
Review plus
applicable taxes
TA/DA and out-of-A/DA and out-of-A/DA and out-of-A/DA and out-of-A/DA and out-of-
pocket expensespocket expensespocket expensespocket expensespocket expenses
Branch AuditorsBranch AuditorsBranch AuditorsBranch AuditorsBranch Auditors : : : : :
M/S B Chhawchharia
& CoChartered
Accountants
N a g p u r.
M/S. A . S . Dani &
C o C h a r t e r e d
Accountants
N a g p u r.
M/S V K Ladda &
C o C h a r t e r e d
Accountants
Uj ja in .
M/S KPRK &
Associates
C h a r t e r e d
Accountants
N a g p u r.
T O T A L
- do -
- do -
- do -
- do -
B
Actual TA/DA, limited
to total
Rs.1,50,000/- for
Annual Audit
and Actual TA/
DA, limited to
total Rs.75,000/-
each for 1st , 2nd
and 3rd Quarter
R e v i e w
62
ANNUAL REPORT 2014-15
d) That the Directors have prepared
the accounts for the financial year
ended 31st March, 2015 on a
‘Going Concern’ basis; and
e) That directors had laid down
internal financial controls to be
followed by the company and that
such internal financial controls are
adequate and were operating
effectively; and
f) The directors had devised prope
systems to ensure compliance
with the provisions of all applicable
laws and that such systems were
adequate and operating effectively.
The accounts of your company would
be available at the Headquarter of the
Company for providing information to
the shareholders of the CIL on demand
if any.
41. ACKNOWLEDGEMENTS :
41.1 Your Directors express their gratitude
to the Ministry of Coal, Government of
India and Coal India Limited, for their
valuable assistance, support and
guidance from time to time.
41.2 The Directors thank various Ministries
of the Central Government and the
State Governments of Maharashtra
and Madhya Pradesh for their valuable
support.
41.3 The Directors also take this opportunity
to acknowledge with thanks the
assistance rendered by the sister
organisations and Directorate General
of Mines Safety.
41.4 Industrial Relations in the Company
continued to be cordial. The Directors
place on record their appreciation for
the co-operation extended by the Trade
Unions and Officers Association and all
Steering Committee Members, Officers
of Ministry of Labour and the team
spirit shown by the employees at all
levels towards the achievement of the
objectives of the Company.
41.5 The Directors record the appreciation
of services rendered by Statutory and
Branch Auditors and the Officers and
Staff of Comptroller & Auditor General
of India, Department of Company
Affairs, Company Law Board and
Registrar of Companies, Maharashtra.
41.6 The Directors also extend their thanks
to various important citizens of
Nagpur, Maharashtra and Madhya
Pradesh States, stationed in the
Coalfields for their co- operation from
time to time and also to the Steering
Committee of WCL comprising of
Trade Union representatives and
Management.
42. ADDENDA :
42.1 The following papers are annexed :
42.2 In pursuance to the provisions of
section 134(3)(m) of theCompanies
Act, 2013, read with Companies Rule
(8), Sub-Rule (3) of the
Company(Accounts) rules, 2014,
information in regard to the
Conservation of Energy, Technology
Absorption and Foreign Exchange
Earning & Outgo is given in Annexure-
I to this report.
42.3 The Secretarial Audit Report for the
financial year ended 31st March, 2015
from Practising Company Secretary.
42.4 Corpoate Governance Certificate, in
compliance of conditions of Corporate
Governance, from Practising Company
Secretary.
63
WESTERN COALFIELDS LIMITED
NAGPUR
DATED : 22nd June, 2015
For and on behalf of Board of Directors
( R.R. MISHRA )CHAIRMAN-CUM-MANAGING DIRECTOR
42.5 Addendum to the Directors' Report
under section 134(3)(f) of the
Companies Act, 2013.
42.6 Comments of the Comptroller & Auditor
General (C&AG) of India under section
143(6) of the Companies Act, 2013.
42.7 Your Directors further state that "The
Company has in place an Anti Sexual
Harassment Policy in line with the
requirements of The Sexual
Harassment of Women at the
Workplace (Prevention, Prohibition &
Redressal) Act, 2013.
Internal Complaints Committee (ICC)
has been set up to redress
complaintsreceived regarding sexul
harasment. All employees (permanent,
contractual, temporary, trainees) are
covered under this policy.
The following is a summary of Sexual
harassment complaints received and
disposed off during the year 2014-15 :
No. of complaints received : 1
No. of complaints disposed off : 1
64
ANNUAL REPORT 2014-15
ANNEXURE - I
A. Conservation of Energy:
(i) Steps taken or impact on conservation of energy
1. Benchmarking of electrical power consumption in Umrer OC mine, including colony
& office by an external agency.
2. Conducting “Electrical Energy Audit” at Chattarpur UG mine by CMPDIL.
3. Addition of Capacitors to improve and maintain the power factor above 0.96.
4. Use of energy efficient tubes/ CFL in place of high watt luminaries/ conventional
fittings.
5. Use of auto-timers in street light circuits.
6. Installation of UG bunker.
7. Load shedding on domestic feeders.
8. Reduction in idle running of CHP.
9. Re-organization of LT OH Line by Aerial Bunched Cable.
10. Installation of de-watering pumps on float in OC mines during monsoon season.
11. Continuous monitoring & disconnection of unauthorized connections.
12. Installation of de-watering pumps with positive suction for UG mines sumps.
13. Elimination or reduction of stage pumping as far as practicable.
14. Stoppage of purchasing high energy consuming lights & fittings.
(ii) Steps taken by the company for utilising alternate sources of energy
1. Installation of Solar Power Generation system at Nagpur Area (80 kWp) &
Ballarpur Area (60 kWp) – tender was finalized during year 2014-15 & work
awarded on 15.04.2015
2. Installation of 619 kWp Solar Power Generation system at different locations –
under process of approval during 2014-15.
(iii) Capital investment on energy conservation measures
An amount of Rs. 2.83 Crores has been invested towards measures listed above at
point no. (i).
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B. FORM "B" IS enclosed
C. FOREGIN EXCHANGE EARNING & OUTGO :
i) Acitvities relating to exports, initatives taken to increase exports, development of
new export markets for products and services and export plans
Company is not engaged in export activities.
PPPPPararararar t icu lart icu lart icu lart icu lart icu larsssss Current yearCurrent yearCurrent yearCurrent yearCurrent year Previous yearPrevious yearPrevious yearPrevious yearPrevious year
( A )( A )( A )( A )( A ) Foreign Exchange earnedForeign Exchange earnedForeign Exchange earnedForeign Exchange earnedForeign Exchange earned 0 .000 .000 .000 .000 .00 0 .000 .000 .000 .000 .00
( B )( B )( B )( B )( B ) Foreign Exchange used :Foreign Exchange used :Foreign Exchange used :Foreign Exchange used :Foreign Exchange used :
i )i )i )i )i ) C.I.F C.I.F C.I.F C.I.F C.I.F VVVVValue of Imporalue of Imporalue of Imporalue of Imporalue of Importststststs
Raw materialsRaw materialsRaw materialsRaw materialsRaw materials 0 .000 .000 .000 .000 .00 0 .000 .000 .000 .000 .00
Components , Stores & Spare Parts 3 .28 9 .11
Capital GoodsCapital GoodsCapital GoodsCapital GoodsCapital Goods 0 .000 .000 .000 .000 .00 0 .000 .000 .000 .000 .00
ii) Repayment of JBIC Loan 0 .00 41.74
iii) Repayment of IBRD Loan 0 .00 43.18
iv) Effect of Exchange fluctuation 0 .00 9 .00
v ) Travelling Expenses 0 .05 0 .12
vi) Interest/Commitment/Agency
charges etc. of IBRD/JEXIM (including swap cost) 0 .00 2 .26
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ANNUAL REPORT 2014-15
Form Form Form Form Form ‘B’‘B’‘B’‘B’‘B’
DiscDiscDiscDiscDisclosure of Plosure of Plosure of Plosure of Plosure of Pararararar ticularticularticularticularticulars with respect to s with respect to s with respect to s with respect to s with respect to TTTTTececececechnology Absorptionhnology Absorptionhnology Absorptionhnology Absorptionhnology Absorption:::::
A.A.A.A.A. TTTTTececececechnology Absorption :hnology Absorption :hnology Absorption :hnology Absorption :hnology Absorption :
Efforts, in brief, made towards technology absorption, adaptation and innovation:
Concerted efforts are being made for technology absorption, adaptation and innovation
and various scientific studies in the sphere of mining with due emphasis on safety,
environment control, conservation and quality improvement details of which are furnished
below:
B.B.B.B.B. Mining Mining Mining Mining Mining TTTTTececececechnology:hnology:hnology:hnology:hnology:
1.1.1.1.1. Contin Contin Contin Contin Continuous Miner uous Miner uous Miner uous Miner uous Miner TTTTTececececechnology & its benefits:hnology & its benefits:hnology & its benefits:hnology & its benefits:hnology & its benefits:
Continuous Miner technology is under operation at Tandsi UG mine of WCL. Further,
the said technology has been proposed to be introduced with minimum guaranteed
production on partial hiring basis (paid on Rs/Tonne), at Tawa-II U/G, Pathakhera Area,
an operating mine. Accordingly, the proposal along with estimated cost and customized
bid document were approved by WCL Board in its 260th meeting held on 10th January,
2015. Global bid was floated on 26th March 2015, with scheduled date of opening of bid
on 09th June, 2015.During the financial year 2015-16, it is envisaged to introduce the
said technology in two operating mines viz. Tawa-I and Chhatarpur-I. Feasibility report
for both the mines has been submitted by CMPDIL and necessary scheme is under
preparation. After necessary approval, tendering action shall be initiated.
There are numerous benefits by deployment of said technology, some of them
are listed below:-
1. Significant increase in production and productivity
2. Safety of workmen from exposure to active face of operation
3. Reduces induced stress on overlying strata by eliminating blasting operation
4. Increase in output thereby reduces the cost per tonne of coal production.,
2. Application of Bottom ash as stowing material & its advantage:2. Application of Bottom ash as stowing material & its advantage:2. Application of Bottom ash as stowing material & its advantage:2. Application of Bottom ash as stowing material & its advantage:2. Application of Bottom ash as stowing material & its advantage:
Directives imposed by State Government restricted availability of sufficient quantity of
sand for stowing material in underground mines. Pilot study for using bottom ash as
stowing material has been undertaken in Sarni Mine, Pathakhera area under guidance
of CIMFR. After successful completion of pilot study, it is envisaged to introduce bottom
ash stowing in Rajur Mine, Wani North Area and other underground mines, depending
upon techno-economic feasibility and availability of bottom ash.
Successful study of bottom ash as stowing material will address environmental issues
and also to protect the important surface features over the mining area.
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WESTERN COALFIELDS LIMITED
3. Application of Man Riding System in UG Mines & its advantage :3. Application of Man Riding System in UG Mines & its advantage :3. Application of Man Riding System in UG Mines & its advantage :3. Application of Man Riding System in UG Mines & its advantage :3. Application of Man Riding System in UG Mines & its advantage :
9 Nos. of man riding systems are under operation in 08 underground mines. In the
financial year 2014-15, man riding system was commissioned in Adasa Mine, Nagpur
Area, on trial basis.
For the financial year 2015-16, it is envisaged to introduce man riding system in 02
mines viz. Rajur and Naheriya underground mines.
The said system was introduced in order to eliminate fatigue to the workman due to
long and arduous travel in UG mines and to improve their efficiency.
4. Universal Drilling Machines & its benefit:4. Universal Drilling Machines & its benefit:4. Universal Drilling Machines & its benefit:4. Universal Drilling Machines & its benefit:4. Universal Drilling Machines & its benefit:
The Company has played a leading role in mechanizing underground drilling operation
for coal face as well as for roof support. In this regard, 45 Nos. UDMs have been put in
operation.
After introduction of UDM, there is significant increase in blasting efficiency, thereby
increasing Coal availability and also there is significant improvement in green zone
support with added Safety.
WESTERN COALFIELDS LIMITED
MOU PERFORMANCE in F.Y. 2014-15 ( APRIL'14 - MARCH'15 )
Static / Financial Parameters
(i) Mandatory
a ) Sales Turnover Rs. Crs 10.0 7627.05 7571.68 7193.10 6833.44 6491.77 7571.68 7325.39In between V.Good & Good 2.651 0.2651
b ) Gross operating Margin Rate Ratio 10.0 0.0138 0.0104 0.0099 0.0094 0.0089 0.0104 0.0734Excellent 1 0.1
( i i ) Profitability
a ) PAT/Net Worth Ratio 5.0 0.00655 0.00154 0.00146 0.00139 0.00132 0.00154 0.0879 Excellent 1 0.05
b ) EBIDTA/ Net Block Ratio 7.0 0.12790 0.11640 0.11050 0.10500 0.09980 0.11640 0.4535 Excellent 1 0.07
( iii ) Cost/Output efficiency
a ) Sales turnover/Net Block Ratio 10.0 3.7755 3.7753 3.5865 3.4072 3.2368 3.7753 4.2550 Excellent 1 0.1
( iv) Efficiency of Asset Use
a) Average collection period for trade receivables No of days 8.0 19.43 19.85 20.84 21.88 22.98 19.85 21.590In between Good & Fair 3.721 0.2977
Sub Total of Static / Financial Parameters 50.0 0.8828
11.06.2015Evaluation Criteria Unit Weight
(in %) MoU TargetPerformance
in
14-15
Remarks/ Rating Score
Excellent Very Good Good Fair Poor Target Actual
1 2 3 4 5
2 Dynamic Parameters
(i) Corporate Social Responsibility ( CSR) & Sustainablity
1 Self/Gainful employment training programme for rural youth
for self employment in villages around WCL areas for 50
youths by external agencies
Nos 0.50 50 40 30 20 10 40 100 Excellent 1 0.005
2 Contruction of 5.5 KM road in villages % 0.50 100 90 80 70 60 90 166.54 Excellent 1 0.005
3 Implementation of 02 nos of Rain water harvesting
Schemes in areas
Date 0.50 28.02.2015 15.03.2015 31.03.2015 --- --- 15.03.2015 Before
28.02.2015Excellent 1 0.005
4 Implementation of 02 nos of Recycling projects for
Industrial / Sewage water ( at Tadali Workshop and
Gondegaon Nagpur Area )
Date 0.50 28.02.2015 15.03.2015 31.03.2015 --- --- 15.03.2015 Before
28.02.2015Excellent 1 0.005
SUB TOTAL 2.00 0.02
Achievementfor F.Y.
2014-15
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MOU PERFORMANCE in F.Y. 2014-15 ( APRIL'14 - MARCH'15 )11.06.2015
Evaluation Criteria Unit Weight
(in %) MoU TargetPerformance
in
14-15
Remarks Rating Score
Excellent Very Good Good Fair Poor Target Actual
1 2 3 4 5
( III ) Initiatives of Growth
a) Physical targets / output or No. of new orders/ projects
1 Approval of PR of Makardhokra - I Mine by WCL Board
and award of work for OB removal
Date 2.0 28.02.2015 31.03.2015 --- --- --- 31.03.2015 PR Approved
on 27.09.2014 & W.O.Excellent 1 0.02
2 Acquition and Possession of land
i ) Notification under Section 9 ( 1 ) of CBA Act Ha 1.00 1280 1216 1152 1095 1039 1216 1363.460 Excellent 1 0.01
ii ) Notification under Section 11 ( 1 ) of CBA Act Ha 1.00 1440 1368 1299 1234 1172 1368 1441.080 Excellent 1 0.01
iii ) Possession of Land Ha 1.00 280 220 180 170 160 220 1370.432 Excellent 1 0.01
Sub Total 5.00.05
( iv ) Project Management & Implementation
a ) Capacity Addition
1 Capacity Built up of 0.45 MT of Scheme for Dhorwasa OC
mine
Date 2.0 31.12.2014 31.01.2015 28.02.2015 15.03.2015 31.03.2015 31.01.2015 31.12.2014 Excellent 1 0.02
2 Environment clearance of Pauni OC Date 1.0 31.12.2014 31.01.2015 28.02.2015 15.03.2015 31.03.2015 31.01.2015 24.12.2014 Excellent 1 0.01
c ) Milestones to be reached for new / ongoing projects that can not be completed during the year
1 OB rehandling and soil excavation along path of Amb River
for diversion
% 1.00 60% 50% 40% 30% 20% 50% 88.7% Excellent 1 0.01
2 Completion of Approach road at Gauri deep OC Date 0.50 31.01.2015 28.02.2015 15.03.2015 31.03.2015 --- 28.02.2015 30.01.2015 Excellent 1 0.005
3 Preperation of Master Control Network of Projects costing
Rs 20 Crores or having capacity more than 1.00 MTPA
Nos. 2.00 15 10 6 4 1 10 15 Excellent 1 0.02
4CAPEX Rs. Crores 1.00 475.00 455.00 432.25 410.64 390.11 455.00 518.79 Excellent 1 0.01
Sub Total 7.50 0.075
Issued on 08.11.2014
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MOU PERFORMANCE in F.Y. 2014-15 ( APRIL'14 - MARCH'15 )11.06.2015
Evaluation Criteria Unit Weight
(in %) MoU TargetPerformance
in
14-15
Remarks Rating Score
Excellent Very Good Good Fair Poor Target Actual
1 2 3 4 5
v ) Productivity & Internal Process
a ) Asset/ machine/ Facility Utilisation/ Downtime
1 Overall System Capacity Utilisation % 0.5 92% 90% 86% 84% 82% 90% 108.22% Excellent 1 0.005
f ) Customer satisfaction and redress of customer grievances
1 Customer ( FSA holder) satisfaction survey Date 1.0 31.12.2014 31.01.2015 28.02.2015 31.03.2015 --- 31.01.2015 Completed
on 24.10.2014Excellent 1 0.01
2 Despatch covered under third party sampling to power
sector
% 1.0 99.00 98.00 97.00 96.00 95.00 98.00 99.61 Excellent 1 0.01
3 Sized coal Despatch to power sector by Rail % 1.00 99.00 98.00 97.00 96.00 95.00 98.00 100 Excellent 1 0.01
4 Weighment on electrinic weighbridges before despatch of
coal
% 1.00 99.00 98.00 97.00 96.00 95.00 98.00 99.99 Excellent 1 0.01
5 Commitment to supply of coal to power utilities including
IPPsunder FSA complying directives of Govt.
MT 1.0 35.960 35.745 33.958 32.260 30.647 35.745 31.020 In between Fair & Poor 4.769 0.048
Sub Total 5.5 0.093
vi ) Technology, Quality, Innovative practices
a ) New Technologies / improving exsisting ones/other innovative practices
1 Award of work for bench marking of specific diesel
consumption in an opencast mine by an external agency
Date 0.5 28.02.2015 31.03.2015 --- --- --- 31.03.2015 07.02.2015 Excellent 1 0.005
2 Award of work for Benchmarking of electric Power
consumption in an opencast mine by an external agency
Date 0.5 28.02.2015 31.03.2015 --- --- --- 31.03.2015 07.01.2015 Excellent 1 0.005
3 Award of work to engage an independent consultant to
develop a business model to enable WCL to open new
projects with specific emphasis on cost analysis.
Date 1.0 15.01.2015 31.01.2015 28.02.2015 31.03.2015 --- 31.01.2015 14.01.2015 Excellent 1 0.01
c ) Quality Management - Method like TQM, Six Sigma and
ISO, Baldrige Performance Excellence Criteria etc.
1 Quality Management System ( QMS) under ISO -9001
2008 ( Recertification of 18 units )
Date 1.00 31.08.2014 30.09.2014 31.10.2014 30.11.2014 31.12.2014 30.09.2014 Completed
on 12.08.2014Excellent 1 0.01
2 Quality Management System ( QMS) under ISO -9001
2008for New Mines / Training Institutes.(4no.)
No 1.00 4 3 2 1 --- 3 10 Excellent 1 0.01
Sub Total 4.00 0.04
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vii ) Human Resource Management - HRM -
1 Certified Training in Project Management No. of
Executives
1.0 60 50 40 30 20 50 79 Excellent 1 0.01
2 Certified Training in Contract Management No. of
Executives
1.0 5 4 3 2 1 4 25 Excellent 1 0.01
3 Certified Training inEnvoronment, Forest Management &
Land Acquisition
No. of
Executives
1.0 5 4 3 2 1 4 29 Excellent 1 0.01
4 Formal Training in Risk Management No. of
Executives
1.0 5 4 3 2 1 4 7 Excellent 1 0.01
5 Training for mine managers and other executives to make
them aware of conditions stipulated in environmental
clearance
No. of
Executives
1.0 10 8 6 4 2 8 23 Excellent 1 0.01
6 Developing critical mass of leader through a system of
career planning & development of executives.
No. of
Executives
1.0 140 130 120 110 100 130 236 Excellent 1 0.01
Sub Total 6.0 0.06
Sub Total of Dynamic Parameters 30.0 0.3377
3 Sector specific & Enterprise specific Parameters
a ) Sector Specific
1 Coal Offtake ( subject to availability of 17.4 rake / day on
an annual basis as per Annexure D )
Million tonnes 9.0 45.50 45.00 42.75 40.61 38.58 45.00 41.246 In between Good & Fair 3.703 0.333
2 Total Coal Production Million tonnes 9.0 44.50 44.00 41.80 39.71 37.72 44.00 41.147 In between Good & Fair 3.312 0.298
3 Coal Production from UG Mine Million tonnes 1.0 8.00 7.90 7.51 7.13 6.77 7.90 7.565 In between V.Good & Good 2.859 0.029
Enterprise Specific
1 Man Productivity OMS (Output/manshift) Te 0.50 2.59 2.54 2.41 2.29 2.18 2.54 3.26 Excellent 1 0.005
2 Afforestation / Tree plantation including Bamboo plantation
along transport roads in mines areas
No 0.50 20000 18000 16000 14000 12000 18000 47750 Excellent 1 0.005
Sub Total 20.00.6699
Total of Non- Financial Parameters 50.00 1.0076
GRAND TOTAL ( Fin. + Non-Fin) 100.00 1.8904
WESTERN COALFIELDS LIMITED
MOU PERFORMANCE in F.Y. 2014-15 ( APRIL'14 - MARCH'15 )11.06.2015
Evaluation Criteria Unit Weight
(in %) MoU TargetPerformance
in
14-15
Remarks Rating Score
Excellent Very Good Good Fair Poor Target Actual
1 2 3 4 5
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FORM NO. MGT 9
EXTRACT OF ANNUAL RETURN
As on financial year ended on 31.3.2015
Pursuant to Section 92 (3) of the Companies Act, 2013 and Rule 12(1) of the Company (Management & Administration) Rules, 2014
A) REGISTRATION & OTHER DETAILS:
1. CIN U10100MH1975GOI018626
2. Registration Date 29th October 1975
3. Name of the Company Western Coalfields Limited
4. Category/Sub-category of the Company Private Company/Government Company
5. Address of the Registered office & contact
details
Coal Estate, Civil Lines, Nagpur – 440001,Maharashtra
Contact No. : 0712-2511216 Fax No. : 0712-2511216
Email Id. : [email protected]
6. Whether listed company No
7. Name, Address & contact details of the
Registrar & Transfer Agent, if any.
NA
B) PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY:
[All the business activities contributing 10% or more of the total turnover of the company shall be stated]
S. No. Name and Description of main products / services NIC Code of the
Product/service% to total turnover of the company
1. Coal Mining 051-05101 and 051-05102 100.0
C) PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES:
S.No Name and Address of the Company CIN/GLN Holding/Subsidiary/Associate % of ShareHeld
Applicable Section
NA
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D) SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity):
1. Category-wise Share Holding:
the year
Category of Shareholders - -04No. of Shares held at the beginning of the year
[as on 01 2014]
No. of Shares held at the end of the year[as on 31-03-2015]
%
Changeduring
Demat Physical Total % of TotalShares
Demat Physical Total % of TotalShares
A. Promoter`s
(1) Indian:
a) Individual/ HUF 0 0 0 0 0 0 0 0 0
b) Central Govt 0 0 0 0 0 0 0 0 0
c) State Govt(s) 0 0 0 0 0 0 0 0 0
d) Bodies Corp. 0 2971000 2971000 100.0 0 2971000 2971000 100.0 0.00
e) Banks / FI 0 0 0 0 0 0 0 0 0
f) Any other 0 0 0 0 0 0 0 0 0
Sub-Total (A)(1): 0 2971000 2971000 100.0 0 2971000 2971000 100.0 0.00
(2) Foreign:
a) NRIs- Individuals 0 0 0 0 0 0 0 0 0
b) Other- Individuals 0 0 0 0 0 0 0 0 0
c) Bodies Corp. 0 0 0 0 0 0 0 0 0
d) Banks / FI. 0 0 0 0 0 0 0 0 0
e) Any other 0 0 0 0 0 0 0 0 0
Sub-Total (A)(2): 0 0 0 0 0 0 0 0 0
Total shareholding of
Promoter (A)=(A)(1)+(A)(2)0 2971000 2971000 100.0 0 2971000 2971000 100.0 0.00
Total shareholding of
Promoter (A)0 2971000 2971000 100.0 0 2971000 2971000 100.0 0.00
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Category of Shareholders-04-
No. of Shares held at the beginning of the year[as on 01 2014]
No. of Shares held %Changeduring
the year
Demat Physical Total % of TotalShares
Demat Physical Total % of TotalShares
B. Public Shareholding
a) Mutual Funds 0 0 0 0 0 0 0 0
b) Banks / FI 0 0 0 0 0 0 0 0
c) Central Govt 0 0 0 0 0 0 0 0
d) State Govt(s) 0 0 0 0 0 0 0 0
e) Venture Capital Funds 0 0 0 0 0 0 0 0
f) Insurance Companies 0 0 0 0 0 0 0 0
g) FIIs 0 0 0 0 0 0 0 0
h) Foreign Venture Capital
Funds
0 0 0 0 0 0 0 0
i) Others 0 0 0 0 0 0 0 0
Sub-total (B)(1):- 0 0 0 0 0 0 0 0
(2) Non-Institutions
a) Bodies Corporate:
i) Indian 0 0 0 0 0 0 0 0
ii) Overseas 0 0 0 0 0 0 0 0
b) Individuals:
i) Individual shareholders
holding nominal share capital
upto Rs. 1 lakh
0 0 0 0 0 0 0 0
ii) Individual shareholders
holding nominal share capital
in excess of Rs 1 lakh
0 0 0 0 0 0 0 0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
at the end of the year
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Category of Shareholders No. of Shares held at the beginning of the year[as on 01-04-2014] -03-
No. of Shares held at the end of the year[as on 31 2015]
%Changeduring
the yearDemat Physical Total % of Total
SharesDemat Physical Total % of Total
Sharesc) Others (specify):
Non Resident Indians 0 0 0 0 0 0 0 0 0
Overseas Corporate Bodies 0 0 0 0 0 0 0 0 0
Foreign Nationals 0 0 0 0 0 0 0 0 0
Clearing Members 0 0 0 0 0 0 0 0 0
Trusts 0 0 0 0 0 0 0 0 0
Foreign Bodies - D R 0 0 0 0 0 0 0 0 0
Sub-total (B)(2):-
Total Public Shareholding
(B)=(B)(1)+ (B)(2)
0 0 0 0 0 0 0 0 0
C. Shares held by Custodian
for GDRs & ADRs
0 0 0 0 0 0 0 0 0
Grand Total (A+B+C) 0 2971000 2971000 100.0 0 2971000 2971000 100.0 0.00
2. Shareholding of Promoter:
S.No.
’Shareholders Name Shareholding at the beginning of the year[as on 01-04-2014]
Shareholding at the end of theyear % change
shareholdingduring the
year
No. of Shares % of totalShares of the
company
%of SharesPledged /
encumbered tototal shares
No. of Shares % of totalShares of
the company
%of SharesPledged /
encumberedto totalshares
[as on 31-03-2015]
1. Coal India Limited 2971000 100.00 0.00 2971000 100.0 0 0.00
in
5
3. Change in Promoters’ Shareholding (please specify, if there is no change):
S.
No. Particulars
Cumulative Shareholding during the year[2014 -2015]
No. of shares % of total
shares of the
company
No. of shares % of total
shares of the
company
Shareholding at the beginning of the year
[as on 01- 04-2014]
1. At the beginning of the year 2971000 100.0 2971000 100.0
2.
during the ye
Date wise Increase/Decrease in Promoters Shareholding
ar specifying the reasons for
increase/decrease (e.g. allotment/transfer/ bonus/ sweat
equity etc.):
-
3. At the end of the year 2971000 100.0 2971000 100.0
4. Shareholding Pattern of top ten Shareholders: (Other than Directors, Promoters and Holder s of GDRs and ADRs):
S.No.
’Shareholder s Name04
Shareholding at the beginning of the year[as on 01- -2014]
Shareholding at the end of the year[as on 31-03-2015]
% change inshareholding during the
year
No. of Shares % of totalShares of the
company
%of SharesPledged /
encumbered tototal shares
No. of Shares % of totalShares of
the company
%of SharesPledged /
encumberedto totalshares
1. NA
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5. Shareholding of Directors and Key M anagerial Personnel:
S. No. Shareholding of each Directors and each Key ManagerialPersonnel
Shareholding at the beginning Cumulative Shareholding-
No. of shares % of totalshares of the
company
No. of % of totalshares of the
company
of the year[as on 01-04-2014]
1. Shri Rajiv Ranjan Mishra
Chairman-cum-Managing Director,Western Coalfields Limited
At the beginning of the year Nil Nil Nil Nil
Date wise Increase / Decrease in Shareholding during the year
specifying the reasons for increase /decrease (e.g. allotment / transfer
/ bonus/ sweat equity etc.)
-
At the end of the year Nil Nil
2. Shri R. Mohan Das
Government Director (Part time)
At the beginning of the year Nil Nil Nil Nil
Date wise Increase / Decrease in Shareholding during the year
specifying the reasons for increase /decrease (e.g. allotment / transfer
/ bonus/ sweat equity etc.)-
At the end of the year Nil Nil
3. Dr M.R.Anand
Government Director (Part
At the beginning of the year Nil Nil Nil Nil
Date wise Increase / Decrease in Shareholding during the year
specifying the reasons for increase /decrease (e.g. allotment / transfer
/ bonus/ sweat equity etc.)-
At the end of the year Nil Nil Nil Nil
- 2015]during theYear [2014
shares
Time)
TRANSFER
DATE : 10/01/2015
TRANSFER
DATE : 01/03/2015
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S. No. Shareholding of each Directors and each Key ManagerialPersonnel
Shareholding at the beginning Cumulative Shareholding-
No. of shares % of totalshares of the
company
No. of % of totalshares of the
company
of the year[as on 01-04-2014] - 2015]during theYear [2014
shares
4. Shri Rupak Dayal
Director (Personnel)
At the beginning of the year Nil Nil Nil Nil
Date wise Increase / Decrease in Shareholding during the year
specifying the reasons for increase /decrease (e.g. allotment / transfer
/ bonus/ sweat equity etc.)
At the end of the year Nil Nil Nil Nil
5. Shri S.S.Malhi
Director (Technical)
At the beginning of the year Nil Nil Nil Nil
Date wise Increase / Decrease in Shareholding during the year
specifying the reasons for increase /decrease (e.g. allotment / transfer
/ bonus/ sweat equity etc.)
At the end of the year Nil Nil Nil Nil
6. Shri Rameher
Company Secretary
At the beginning of the year Nil Nil Nil Nil
Date wise Increase / Decrease in Shareholding during the year
specifying the reasons for increase /decrease (e.g. allotment / transfer
/ bonus/ sweat equity etc.)
At the end of the year Nil Nil Nil Nil
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E. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but
Secured Loans excluding deposits Unsecured Loans Deposits Total Indebtedness
Indebtedness at thebeginning of the financial year
Nil
i) Principal Amount Nil
ii) Interest due but not paid Nil
iii) Interest accrued but not due Nil
Total (i+ii+iii) Nil
Change in Indebtedness duringthe financial year
Addition Nil
Reduction Nil
Net Change Nil
Indebtedness at theend of the financial year
i) Principal Amount Nil
ii) Interest due but not paid Nil
iii) Interest accrued but not due Nil
Total (i+ii+iii)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil Nil
not due for payment
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9
F). REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:
A. Remuneration to Managing Director, Whole-Time Directors and/or Manager:
S.N
Particulars of RemunerationName of MD/WTD/ Manager Amount
Shri Rajiv Ranjan Mishra(appointed as Chairman-cum-Managing Director
w.e.f 11th October 2014)
Shri D C Garg(upto 17th June 2014)
Shri Om Prakashupto
8th October 2014
Shri Rupak
Dayal
Shri S.S.Malhi
1. Gross salary 1012994 824424 1446972 2309260 2637627 8231277
(a) Salary as per provisions contained in section17(1) of the Income-tax Act, 1961
917858 748258 1315047 2089890 2388406 7459459
(b) Value of perquisites u/s 17(2) Income -tax Act,1961
95136 76166 131925 219370 249221 771818
(c) Profits in lieu of salary under section 17(3)Income- tax Act, 1961
- - - - -
2. Stock Option - - - - -3. Sweat Equity - - - - -4. Commission
- as % of profit- others, specify
- - - - -
5. Others, please specify* 98622 2575478 304677 256360 256186 3491323
Total (A) 1111616 3399902 1751649 2565620 2893813 11722600
Ceiling as per the ACT
*includes Medical Reimbursements,Provident Fund & Family Pension and Encashment of Leave.
Total
-
---
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B. Remuneration to Other Directors:
SN.
Particulars of Remuneration Name of Directors Total Amount (Rs.)
1. Independent Directors: No Independent Directors were present during the year NA
Fee for attending board committee meetings 0 0
Commission 0 0
Others, please specify 0 0
Total (1) 0 0
2. Other Non-Executive Directors: No Non-Executive Directors were present during the year NA
Fee for attending board committee meetings 0 0
Commission 0 0
Others, please specify 0 0
Total (2) 0 0
Total (B)=(1+2) 0 0
Total Managerial Remuneration 0 0
Overall Ceiling as per the Act
C. Remuneration to Key Managerial Personnel Other than MD/Manager/WTD:
S.No.
Particulars of Remuneration Key Managerial Personnel Total Amount (Rs.)
(Shri Rameher), CS
1. Gross salary 2341419 2341419
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 2135381 2135381
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 206038 206038
(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 - -
2. Stock Option - -
3. Sweat Equity - -
4. Commission - -
- as % of profit - -
Others, specify… - -
5. Others, please specify* 236809 236809
Total 2578228 2578228
*includes Medical Reimbursements,Provident Fund & Family Pension .
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G. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:
TypeSection of the
Companies ActBrief
Description
Details of Penalty /Punishment/
Compounding feesimposed
Authority[RD / NCLT/ COURT]
Appeal made,if any (give Details)
A. COMPANY:
Penalty
NonePunishment
Compounding
B. DIRECTORS:
Penalty
NonePunishment
Compounding
C. OTHER OFFICERS IN DEFAULT:
Penalty
NonePunishment
Compounding
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WESTERN COALFIELDS LIMITED
85
ADDENDUM TO DIRECTORS’ REPORT
UNDER SECTION 134(3) and 143(3) OF THE COMPANIES ACT, 2013
Author Report to the Members of Western Coalfields Ltd.
This audit report supersedes the earlier audit report dated May 23' 2015 and is being revised to
include the directions and sub directions issued u/s 143(5) of the Companies Act, 2013 as per
the direction of Comptroller and Auditor General of India vide his letter no. 251/CAR/CCL/PDCA/
COMM/A/CS/2014-15 Dated 03.06.2015.
Report on the Financial Statements
We have audited the accompanying financial statements of WESTERN COALFIELDS LIMITED
(A Subsidiary of Coal India Limited), which comprise the balance sheet as at 31st March
2015, the statement of profit and loss and the cash flow statement for the year then ended, and
a summary of significant accounting policies and other explanatory information. The financial
statements audited by us incorporate the accounts of:-
a) 5 Areas / Units audited by us, and
b) 11 Areas / Units audited by Branch Auditors
The reports of Branch Auditors have been furnished to us and have been appropriately dealt
with by us in preparing this report.
Management’s Responsibility for the Financial Statements
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the
Companies Act, 2013 (“the Act”) with respect to the preparation and presentation of these
financial statements that give a true and fair view of the financial position, financial performance
and cash flows of the Company in accordance with the accounting principles generally accepted
in India, including the Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance
of adequate accounting records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making judgments and estimates
that are reasonable and prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
ANNUAL REPORT 2013-14
86
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
have taken into account the provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the provisions of the Act and
the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section
143(10) of the Act. Those Standards require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal financial
control relevant to the Company’s preparation of the financial statements that give a true and fair
view in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on whether the Company has in place an adequate internal
financial control system over financial reporting and the operating effectiveness of such controls.
An audit also includes evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid financial statements, read together with Additional Notes to Accounts and Accounting
Policies give the information required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the company as at March 31,
2015
(b) in the case of the Statement of Profit and Loss, of the Profit for the year ended on that date;
and
WESTERN COALFIELDS LIMITED
87
(c) In case of Cash Flow Statement, of the cash flows of the company for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required under section 143(5) of the Companies Act, 2013, we give in the Annexure
“A”, a statement on the directions issued by the Comptroller and Auditor General of India
after complying the suggested methodology of Audit, the action taken thereon and its
impact on the accounts and financial statement of the company.
2. As required by the Companies (Auditor’s Report) Order, 2015 (“the Order”) issued by the
Central Government of India in terms of sub-section (11) of section 143 of the Act, we give
in the Annexure “B” a statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
3. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of
our knowledge and belief were necessary for the purpose of our audit.
b) In our opinion proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
c) The report on the accounts of the Areas/ units, audited under section 143(8) by branch
auditors has been forwarded to us and have been dealt with in preparing our report
in a manner considered necessary by us.
d) The balance sheet, the statement of profit and loss and the cash flow statement dealt
with by this Report are in agreement with the books of account.
e) In our opinion, the aforesaid financial statements comply with the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014, subject to the following:
ANNUAL REPORT 2013-14
88
AUDIT OBSERVATION
(i) Accrual basis of accounting as required by provisions
of section 128(I) of Companies Act, 2013 has not been
followed in respect of :
a) Liquidated damages, interest on delayed payments
and escalation claims from customers are
accounted for on the basis on final settlement
b) Insurance / Railway claims are accounted
for on admission / final settlement.
c) Sale of scrap is accounted for on realization
d) Refund/Adjustment of Tax from tax authorities
except Input Tax Credit claim on VAT are
accounted for on cash basis. Additional demand
for Income Tax, Royalty, Cess, Sales Tax, Entry
Tax etc. are accounted for after final orders in
appeals are received. Pending such appeals,
payments made against additional demands
claims receivable
(ii) As stated in footnote no. (c) to Note No.16 Non
recognition of interest of Rs. 7.94 crores in respect of
interest not securitized.
Recognition of revenue arising
out of claims made on railway
authorities, customers etc. is
done only when there is a
reasonable cer tainty of
collection of such claims. Thus
a prudent accounting practice
is followed resulting in
depiction of true and fair view
of the state of affairs of the
company. Further the practice
has been adequately
disclosed in the Additional
notes to the Accounts Point
No.8.a
Ministry of Power, Government
of India had advised Madhya
Pradesh Power Generation
Corporation Ltd (MPPGCL) to
securitise outstanding principal
and interest upto 30.09.2001
of Rs.171.94 cr and Rs.21.99
cr respectively. MPPGCL had
securitied Rs.123.91 cr in the
year 2003. For the balance
Rs.70.02 cr (principal Rs.62.08
cr & interest Rs.7.94 cr)
MPPGCL preferred for
Arbitration. Pending
finalisation of Arbitration,
Provision for Doubtful debt for
Rs.62.08 cr
towards principal is made and
balance Rs.7.98 cr being
interest has not been
recognised in the books as per
practice adequately disclosed
in the Additional notes to the
Accounts Point No.8.a.
MANAGEMENT REPLY
WESTERN COALFIELDS LIMITED
89
The detailed records are not
available for the taken over
assets. However, Net Residual
value/ WDV of all such Assets
is Rs.1.00 lakh. The value of
these assets is very meagre &
hence immaterial.
Assets were taken over from
Coal Mines Labour Welfare
organisation (CMLWO)
through administrative orders
issued by the concerned
ministries and no purchase
consideration was fixed.
This being a statement of fact
calls for no comments
This being a statement of fact
calls for no comments
This being a statement of fact
calls for no comments
(iii) As stated in footnote no. (a) to Note No. 10A, ‘Assets Taken
over on Nationalization’ of the company with Gross Value
of Rs. 9.07 crores, Accumulated Depreciation of Rs. 9.06
crores and WDV of Rs. 0.01 crores are not classified into
proper sub-head within fixed assets.
(iv) As stated in footnote no. (b) to Note No. 10A, finalization of
purchase consideration of certain fixed assets taken over
by company from the Coal Mines Labour Welfare
Organization is still pending. This has impact on reported
figures of Gross block of such Fixed Assets, Accumulated
Depreciation and Reserves & Surplus and also on the
presentation of fixed assets. The impact however is not
ascertainable.
(f) sub-section (2) of section 164 of the Companies Act, 2013
is not applicable to the Company being the Government
Company; and
(g) The company has adequate internal financial control in place
and such control are effectively operative in the company.
(h) with respect to the other matters to be included in the
Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the
explanations given to us the said accounts give the
information required by the Companies Act, 2013, in the
manner so required and subject to forgoing and read
together with the accounting policies and additional notes
on accounts gives a true and fair view in conformity with
the accounting standards generally accepted in India.
AUDIT OBSERVATION MANAGEMENT REPLY
For V. K. Surana & Co.
Chartered Accountants
CA. Sudhir Surana
Partner
Membership No. 43414
Firm Reg. No.: 110634W
Nagpur,
Jun 05, 2015
ANNUAL REPORT 2013-14
90
ANNEXURE “A” TO THE AUDITORS’ REPORT OFWESTERN COALFIELD LIMITED FOR THE YEAR ENDED 31ST MARCH, 2015
(As referred to in Paragraph 1 of Report on Other Legal and Regulatory Requirements of
our report on the statement of Directions & Sub Directions under section 143(5) of
Companies Act 2013, issued by the Comptroller and Auditor General of India for the year
2014-15)
1 If the Company has been
selected for disinvestment, a
complete status report in terms
of valuation of Assets (including
intangible assets and land) and
Liabilities (including Committed
& General Reserves) may be
examined including the mode
and present stage of
disinvestment process.
2 Please report whether there are
any cases of waiver/ write off of
debts/loans/interest etc., if yes,
the reasons there for and the
amount involved.
3 Whether proper records are
maintained for inventories lying
with third parties & assets
received as gift from Govt. or
other authorities.
4 A report on age-wise analysis
of pending legal/ arbitration
cases including the reasons of
pendency and existence/
effectiveness of a monitoring
mechanism for expenditure on
all legal cases(foreign and local)
may be given.
The Company is a
Subsidiary of CIL and as
informed to us the Company
is not being selected for
disinvestment.
No such cases are found.
No such cases are found.
The age wise details of total
number of pending legal
cases at different courts
including High Court Nagpur
as on 31.03.15 are as
under.Up to 3 Year – 1627
CasesAbove 3 Year – 1575
CasesTotal – 3202 Cases
This being a statement of
fact calls for no comments.
.
This being a statement of
fact calls for no comments.
This being a statement of
fact calls for no comments.
Yes. The status of legal
pending cases has been
disclosed as contingent
liabilities. Financial impact
will depend on the outcome
of the legal cases.
Sr.No.
Details/Directions Auditor’s Reply Management Reply
WESTERN COALFIELDS LIMITED
91
Sub Directions For Audit Of
Companies Engaged In
Coal Mining :-
i. Provisioning done in case
of unpaid amount on GCV
issues may be examined.
Latest GCV dues position
of concerned subsidiaries
of CIL as on 31.03.2015
is required to be
examined.
It may also be confirmed
whether the annual
accounts have been
prepared/maintained as
per the New Companies
Act 2013.
ii. Valuation of inventories
with compliance to
Accounting Standard-2 in
entirety.
(a) Whether stock
measure-ment was
done keeping in
view the contour
As explained and / or verified the
same are pending as proceedings
are underway and final judgement
is pending.Presently there is no
mechanism to monitor the legal
cost involved in individual cases.
The same is approved based on
the approved rate / slab taking into
account the involvement /
appearance at different court.
Provision for GCV if any, as per
the Quality Control Report is being
done.
Yes
Yes
Yes, the stock measurement was
done keeping in view the contour
map.Yes, physical stock
measurement repor ts are
accompanied by contour map in
Yes. Provision for GCV if
any, as per the Quality
Control Report has been
done.
Yes. The provision of New
Companies Act, 2013
complied with.
This being a statement of
fact calls for no comments.
This being a statement of
fact calls for no comments.
Sr.No.
Details/Directions Auditor’s Reply Management Reply
ANNUAL REPORT 2013-14
92
map. Whether physical stock
measurement reports are
accompanied by contour map
in all cases? Whether new
heap, if any, created during
the year has got the approval
of the competent authority?
(b) Whether there is age wise
analysis of non-vendable
stock of coal? Is there any
substantial variance (beyond
+/- 5%) found on
measurement of non-
vendable stock of coal? If
yes, has it been properly
recorded with reasons?
Whether valuation of such
stock was as per the laid
down accounting practice by
the competent authority.
(c) As per the new policy adopted
by CIL as well as Government
of India, HSD is to be
procured at the projects/
mines at bulk rate. Whether
the contractors who are
purchasing diesel at bulk rate
are allowed price escalation
at bulk rate instead of retail
rate.
(d) Whether provisions inConsolidated FinancialStatement (CFS) under theNew Companies Act 2013 aremade with a view torepresenting true and fairview of financial condition andoperating result of the
business entity.
all casesIn respect of new heaps,
wherever created during the year
at various mines the necessary
approval is obtained from the
competent authority.
As per the explanation and
records there is no non-vendable
stock of coal.
As explained, there are no such
cases. The escalation is allowed
at Retail rate as per the terms of
tender.
Not Applicable.
This being a statement of
fact calls for no comments.
This being a statement of
fact calls for no comments.
WCL does not have
subsidiary, Associates or
JVs hence, not applicable.
Sr.No.
Details/Directions Auditor’s Reply Management Reply
WESTERN COALFIELDS LIMITED
93
(e) Special emphasis should
be given to satisfy that
the CFS has been
prepared in
accordance with the AS
21, 23 and 27.
iii. It may be verified that the
capital expenditure incurred
on assets not belonging to
the company has been
properly identified and
accounted for as per
established accounting
principles.
iv. Special emphasis on
compliance with respect to
observations / comments
raised by Statutory Auditors/
Govt. Auditors in 2013-14
and also in the Review
Report on Half Yearly
Accounts for the year 2014-15.
v. It may be verified that the
third party confirmation on
debtors, creditors, bank
balances, account
receivable, account payable
and loans and advances
have been done in full? If not,
par ty-wise including
percentage of such
unconfirmed amount may
also be reported.
Not Applicable.
Yes, the capital expenditure
incurred on assets not
belonging to the company are
properly identified and
accounted for as per
established accounting
principles]
The observations given by Govt
Auditor in 2013-14 and also in
the Review Report on Half
Yearly Accounts for the year
2014-15 are complied with.
Confirmations are received in
respect of bank balances.
In respect of Sundry Creditors, for
F.Y 14-15, letter for confirmations
have been issued but response
to the same is yet to be received.
As regards confirmations for F.Y.
13-14, the status of confirmation
from Sundry Creditors at
NAGPUR Area is as follows:
WCL does not have
subsidiary, Associates or
JVs hence, AS - 21, 23
and 27 are not applicable.
This being a statement of
fact calls for no comments.
This being a statement of
fact calls for no comments.
Yes. Confirmations are
received from Banks.
Parties were requested
to send the confirmation
of the balances, which
are awaited.
Reconciliation with all
power houses is complete
which constitute 90% of
our customer.
Sr.No.
Details/Directions Auditor’s Reply Management Reply
Gross 945.18 100
Confirmation letter sent 801.87 86
Confirmation received 321.72 20
Percentage 34% 20%
Particulars
amountTotal Amt
in LakhsNo
ANNUAL REPORT 2013-14
94
vi. Similarly, whether separate
Escrow Fund Accounts have
been opened/maintained or
earmarked in the Bank in CIL
and its subsidiaries, for the
specific purpose.
This being a statement of
fact calls for no
comments.
Impact on accounts and
financial statements is not
ascertainable.
This being a statement of
fact calls for no comments.
Sr.No.
Details/Directions Auditor’s Reply Management Reply
In respect to Sundry Debtors,
the process of reconciliation with
major Power House debtors is
done till different interim period
of F.Y. 2014-15. The same shows
un-reconciled / un-confirmed
balance of Rs. 389 Lacs. Apart
from this, there is unsettled
claim of Rs. 7137 Lacs relating
to performance incentive for FY
12-13 & 13-14. As explained the
verification and reconciliation
process thereof is underway.
However in respect of private
parties, generally having credit
balance, there is no system of
doing reconciliation.In respect of
other account receivable,
account payable and loans and
advances there is no system of
calling confirmation.
Yes, the same is maintained at
Head Office in respect of Mine
Closure Account.
For V. K. Surana & Co.
Chartered Accountants
CA. Sudhir Surana
Partner
-Membership No. 43414
Firm Reg. No.: 10634W
Nagpur,
Jun 05, 2015
WESTERN COALFIELDS LIMITED
95
ANNEXURE "B" TO THE AUDITOR'S REPORT OF
WESTERN COALFIELDS LIMITED FOR THE YEAR ENDED 31ST MARCH, 2015
(As referred to in Paragraph 2 of Report on Other Legal and Regulatory
Requirements forming part of our report of even date)
i) (a) The Company has maintained proper records
showing full particulars, including quantitative
details and the situation of fixed assets, except
for assets taken over from Coal Mines Authority
on Nationalization and those taken from Coal
Mines Rescue Station and Coal Mines Labour
Welfare Organization, which have not been
recorded. Some of the title deeds/lease deeds for
land building and moving rights continue to be
held in name of Coal India Limited.
(b) The Physical verification of Plant & Machinery
valuing Rs. 1 Lac and above and Vehicles as on
31.03.2015 has been done by Departmental
Committee at respective areas and no material
discrepancies were noticed on such verification.
Physical verification of Plant & Machinery items
having book value less than Rs.1 lac has been
carried out by the departmental committee of all
the areas of the Company, except few areas where
no such physical verification is done since last
three years which is contrary to the Company’s
policy.
In respect of CBE Plant Bhandara, fixed assets
are in the custody of the management of
Ordinance Factory and as stated the same are
physically verified by them and no material
discrepancy is reported on such verification.
In respect of DFD Plant, Hinganghat, major items
of fixed assets are physically verified by the
management. No material discrepancy is reported
to have been noticed on such verification.
Assets were taken over from Coal Mines
Labour Welfare organisation (CMLWO)
through administrative orders issued by
the concerned ministries and no purchase
consideration was fixed.
Also, lease of Coal mines nationalised
under Coal Mines (Nationalisation) Act,
1973 were vested in Coal Mines Authority
Limited by statutory order No. GSR/345
dated 9th July’1973, New Delhi. Further
as per Gazette Notification No.45/2000
dated 8.12.2000, all title /lease deeds are
deemed to have been vested with the
subsidiary concern.
This being a statement of fact calls for no
comments.
Physical verification of Plant & Machinery
items having book value less than Rs.1
lac has been carried out in most of the
areas except in few areas where the
reconciliation for physical verification is
under progress and on completion,
adjustment required, if any, shall be made.
This being a statement of fact calls for no
comments.
This being a statement of fact calls for no
comments.
MANAGEMENT REPLYAUDIT OBSERVATION
ANNUAL REPORT 2013-14
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However, in respect of few items found short or
excess during the Physical Verification of Fixed
Assets as on 31.03.2003, done by a firm of Cost
Accountants/ Chartered Accountants / Outside
Agencies at various Areas, the work of
reconciliation is in progress. Pending final
reconciliation of items of fixed assets found short
/ excess in few areas, no adjustment has been
made in the accounts of the Company for the
year 2014-15.
(ii) (a) The stock of coal has been physically
verified at reasonable intervals by the
management by adopting volumetric measures.
The physical verification of stock of coal as on
31.03.2015 has been done by a team appointed
by Coal India Ltd. However, the certification of
production for the year 2014-15 and books stock
as on 31st March’ 2015 is pending at certain
Areas.
Physical verification of stock of stores & spares
as on 31st March 2015 of Regional Stores and
Charged off Stores has been carried out by an
independent firm of Chartered Accountants /
Cost Accountants appointed for this purpose
(b) In our opinion and according to the
information and explanation given to us, the
procedure of physical verification of inventories
followed by the management is reasonable and
adequate in relation to the size of the Company
and nature of its business. However, procedure
for identification of obsolete items of inventory
requires improvement.
(c) The company is maintaining proper
records of inventory. In accordance with
Company’s policy as set out in Para 6 of
Accounting Policies (Note 33), no adjustment is
made in the books of accounts in case the
difference between books stock of coal and
volumetrically measured physical stock of coal
is within (+/-) 5%, due to approximate nature of
the method of measurement. ‘
In respect of few items found short or
excess in some Area during physical
verification of Fixed Assets as on
31.03.2003, Reconciliation for some inter
area adjustments are under progress and
on completion, adjustment if required, shall
be made.
As per the policy of CIL, the physical
verification has been done.
The certification of production for the year
2014-15 and book stock as on 31st March,
2015 has since been completed in all
Areas..
Provision against identified obsolete items
has been taken in the accounts. Further
Identification of obsolete items being a
continuous process is under progress.
Closing stock of coal is measured
volumetrically and converted to weight
(tonne) by applying the identified
conversion factor. To take care of the
inherent approximation error of volumetric
measurement and subsequent conversion
thereof to weight by applying a
mathematically determined conversion
factor, the variance of (+/-) 5% between
MANAGEMENT REPLYAUDIT OBSERVATION
WESTERN COALFIELDS LIMITED
97
As informed to us, in case of other inventories
the discrepancy noticed, if any, on physical
verification as compared to the book/ records
were not material in relation to the operation of
the company and have been duly dealt with.
(iii) The company has not granted any loans,
secured or unsecured to companies, firms, or
other parties listed in the Register maintained
under section 189 of the Companies Act, 2013
(iv) In our opinion and according to the
information and explanations given to us, there
are adequate internal control systems
commensurate with the size of the Company
and the nature of its business with regards to
purchase of inventory, fixed assets and for the
sale of goods and services.
We have not observed continuous major
weakness in internal control system during the
course of the audit except that in under
mentioned cases the internal control needs to
be strengthened:
a. Follow-up of old advances to suppliers,
adjustment of cer tain advances against
corresponding liability after receipts of items in
few areas.
b. Non receipt of confirmations of outstanding
balances from customers, suppliers and
contractors and timely reconciliation of balances
in case of difference.
(v) The Company has not accepted any
deposits from the public within the meaning of
Sections 73 to 76 or any other relevant
provisions of the Companies Act, 2013 and the
rules framed there-under.
(vi) Maintenance of cost records under section
148(1) has been made mandatory by the Central
Government. As per information and explanation
book stock and physical stock is ignored
as per Accounting Policy of the Company.
This being a statement of fact calls for no
comments
This being a statement of fact calls for no
comments
Continuous monitoring for adjustment of
advances, linking of advances with liability/
sundry creditors shall be done.
Reconciliation with all power houses is
complete which constitute 90% of our
customer and all other parties were
requested to send the confirmation of the
balances, which are awaited.
This being a statement of fact calls for no
comments
The cost records as required by the
notification are being maintained by
respective areas
MANAGEMENT REPLYAUDIT OBSERVATION
ANNUAL REPORT 2013-14
98
provided to us, the required accounts and records
are being maintained at respective Area offices.
We have however not made detailed examination
of such record.
(vii) (a) According to the information and
explanations given to us, the Company is
generally regular in depositing undisputed
statutory dues including Provident Fund,
Employees’ State Insurance, Income-Tax,
Sales-Tax, Wealth Tax, Service Tax, Duty Of
Customs, Duty Of Excise, Value Added Tax, Cess
and other statutory dues with the appropriate
authorities. According to the information and
explanation given to us, no material undisputed
arrears of statutory dues were outstanding as on
31st March, 2015 for a period of more than six
months from the date they become payable.
(b) According to the records of the Company, the
dues of income tax or sales tax or wealth tax or
service tax or duty of customs or duty of excise
or value added tax or cess which have not been
deposited on account of disputes and the forum
where the dispute is pending are given in
Annexure 1 attached herewith.
(c) No amount is required to be transfer in investor
education and protection fund in accordance with
the relevant provisions of Companies Act and
rules made thereunder
(viii) The Company neither has accumulated
losses and nor it has incurred any cash losses
during the financial year covered by our audit or
in the immediately preceding financial year.
(ix) This clause is not applicable to Company, as
it has not taken any loans from any financial
institutions or bank nor has issued any
debentures.
The company is regular in depositing the
statutory dues with the appropriate
authorities in time
This being a statement of fact calls for no
comments
This being a statement of fact calls for no
comments
This being a statement of fact calls for no
comments
MANAGEMENT REPLYAUDIT OBSERVATION
WESTERN COALFIELDS LIMITED
99
MANAGEMENT REPLYAUDIT OBSERVATION
(x) According to the information and explanations
given to us, the Company has not given any
guarantee for loans taken by others from banks/
financial institutions.
(xi) According to the information and explanations
given to us, the Company has not borrowed any
term loan.
(xii) To the best of our knowledge & belief and
according to the information & explanations given
to us, no material fraud on or by the Company
has been noticed or reported during the course
of our audit
For V. K. Surana & Co.
Chartered AccountantsCA. Sudhir Surana
Partner
Membership No. 43414
Firm Reg. No.: 110634W
Nagpur,
Jun 05, 2015
This being a statement of fact calls for no
comments
This being a statement of fact calls for no
comments
This being a statement of fact calls for no
comments
ANNUAL REPORT 2014-15
100
Annexure – I
Statement of Disputed Statutory Dues ref. to in Annexrespect of Western Coalfields Ltd., Nagpur
Details of Disputed Liabilities are given below:-
Name of
StatuteForum where dispute is pending Nature of dues
Period to which the
amount relates
Sum ofAmount
Bombay SalesTax Act 1959
Appellate Authority Nagpur Sales Tax 2002-03 & 2003-04 404509000
S T Tribunal Mumbai Sales Tax 1993-94 & 1994-95 21050000
Sales Tax Tribunal Nagpur Entry Tax on Vehicle Mar-04 59000
Central ExciseDepartment
Appellate Tribunal Mumbai & NewDelhi.
Central Excise 2013-1426791250813
Commissioner of Central ExciseNagpur
Wrong Availment ofCENVAT Credit
2012-1326643000
Central Sales TaxAct 1956
A.C./CTO Jabalpur Central Sales Tax 2008-09 855190
Addl. Comm. Jabalpur Central Sales Tax 1998-99 & 2004-05 480606
Appellate Authority Nagpur Sales Tax 2002-03 & 2003-04 256740000
Appellate Board Central Sales Tax2005-06,2006-07,2007-08 & 2009-10 28219038
S T Tribunal Mumbai Sales Tax1989-90, 1994-95 &1997-98 9336000
Income Tax Act1961
CIT (Appeal) Nagpur Corporate Tax2005-06, 2006-07, 2009-10, 2010-11, 2011-12,2012-13 & 2013-14 6062519000
ITAT Nagpur
Perks on Income Tax 2004-05 to 2006-07 22156000
TDS2007-08,2008-09, 2009-10 & 2010-11 7376000
TDS on payment toDoctors / Hospitals
2006-07, 2007-08, 2008-09 & 2009-10 2582579000
Land Revenue
District Collector Yavatmal.
Enhanced LandCompensation
2004-0561530000
Surface Rent 1972-73 to 2005-06 4208000
High Court Nagpur Non Agricultural Tax2002-03, 2003-04 &2004-05 & More than 5years old 684441000
LP at Mumbai High Court NagpurBench
Non Agricultural Tax 1972-73 to 2003-04179932000
M.P.State Govt.Sales Tax Dept.
For revision With Dy Comm.Bhopal
Central Sales Tax 2000-015391
Hon ble High Court Jabalpur’ Central Sales Tax 2000-01 1578431
MaharashtraEntry Tax Act
High Court Nagpur Entry Tax on HEMM1.4.1988 to 31.10.1996,2005-06, 2007-08 &2008-09 1170398000
MaharashtraLand RevenueCode
High Court Nagpur Non Agricultural Tax 2005100389000
MineralConcessionRules 1960
SLP pending with Hon'bleSupreme Court
Cess on Royalty of Coal 1991-92604133.23
MineralValidation Act1992
SLP pending with Hon'bleSupreme Court
Cess on Royalty 1982-83 & 1991-92 23874918.13
Cess on Royalty and Cesson storage of coal
1982-83 to 1989-903864874
Cess on Storage Coal 1991-92 2167294.52
MSEB MAD Cess 1991-92 1402376.95
MP CommercialTax Act 1994
Addl. Comm. Jabalpur Commercial Tax2004-05,2009-10,2010-11, 2011-12 & 2012-13 7803804
Appeal Dy. Comm. Bhopal
Entry Tax1998-99, 2001-02,2005-06, 2011-12 & 2012-13 3163287
State Sales Tax VAT
1986-87,1998-99, 2001-02,2003-04, 2005-06,2006-07, 2007-08, 2008-09,2009-10,2010-11,2011-12 & 2012-13 35756581
MP Entry Tax ActAddl. Comm. Jabalpur Entry Tax
2009-10 2011-12 & 2012-13 38407849
Commissioner( Appeals) Entry Tax 2007-08 3121143
MP State Govt.Sales Tax 2002
Appellate Board VAT 2008-09 & 2009-10 4202626
Appellate Board Bhopal MP VAT2000-01, 2002-03,2004-05,2006-07 & 2008-09 24137386
MP State Govt.Sales Tax 2002
Commissioner( Appeals) VAT 2006-07 3903341
D.C. Chhindwara VAT 2005-06 77161
District Collector Chandrapur. Surface Rent 1972-73 to 2005-06 31362000
MPGATSVA(NON MIN.LEASE AREACLAIM)
Hon ble High Court Jabalpur’ MPGATSVA Oct 2005-Dec 2012
628772447
MPGATSVA2005
Hon ble High Court Jabalpur’ Tax & PenaltyOct 2005-March 2013 &April 13 to March 15’’ 404249765
I Appeal (Commissioner) Tax & Penalty 2011-12 & 2012-13 26492237
Income Tax Appellate Tribunal Tax & Penalty 2008-09 870652000
Rent Act
District Court Nagpur Surface Rent 2001 181000
Dy. Commissioner Surface Rent 2008-09 & 2010-11 3424495
Dy. Commissioner Surface Rent2005-06, 2008-09 &2010-11 6867326
MOC New Delhi Surface Rent More than 5 years old 9757000
MSTT Mumbai Surface Rent2001-02, 2004-05,2005-06,2006-07, 2007-08 &2008-09 1963148000
Grand Total 42513647514
WESTERN COALFIELDS LIMITED
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ANNUAL REPORT 2014-15
WESTERN COALFIELDS LIMITED(A MINI RATNA COMPANY)
(A Subsidiary of Coal India Limited)
BALANCE SHEET AS AT 31ST MARCH, 2015
Note No As at As at31/03/2015 31/03/2014
I EQUITY AND LIABILITIES(1) Shareholders’ Fund
a) Share Capital 1 297.10 297.10b) Reserves and Surplus 2 3,264.19 3,229.39c) Money Received against Share warrants - -
3,561.29 3,526.49(2) Share Application money pending allotment - -(3) Non-Current Liabilities
a) Long Term Borrowings 3 - -b) Deferred Tax Liabilities (Net) - -c) Other Long Term Liabilities 4 6.45 4.16d) Long Term Provisions 5 4,121.63 3,783.89
4,128.08 3,788.655) Current Liabilities
a) Short Term Borrowing 6 - -b) Trade Payables 7 106.60 84.14c) Other Current Liabilities 8 1,849.76 1,704.19d) Short Term Provisions 9 1,103.60 850.92
3,059.96 2,639.25Total 10,749.33 9953.79
II ASSETS(1) Non-Current Assets
(a) Fixed Assets i) Tangible Assets - Gross Block 10A 4,366.19 4,070.14 Less : Depreciation, Impairment & Provisions 2,755.18 2,579.57 Net Carrying Value 1,611.01 1,490.57
ii) Intangible Assets - Gross Block 10A 543.51 555.43 Less : Depreciation, Impairment & Provisions 432.89 437.72 Net Carrying Value 110.62 117.71
iii) Capital Work-in-Progress 10B 55.25 43.75 iv) Intangible Assets under Development 10C 363.86 292.13
(b) Non-Current Investments 11 - 48.14(c) Deferred Tax Assets (Net) 464.13 439.04(d ) Long Term Loans & Advances 12 88.18 59.90(e) Other Non-Current Assets 13 0.58 -
(2) Current Assets(a) Current Investments 14 137.31 312.20(b) Inventories 15 757.11 743.07(c) Trade Receivables 16 672.92 468.93(d) Cash & Bank Balance 17 5,138.03 4,626.81(e) Short Term Loans & Advances 18 988.19 991.40(f) Other Current Assets 19 362.14 320.14
8,055.70 7,462.55
Total 10,749.33 9,953.79
Note: Contingent Liabilities and Commitments (to the extentnot provided for) 34 A 5728.73 4468.60Significant Accounting Policies 33Additional Notes on Accounts 34The Notes referred to above form an integral part of Balance Sheet
(` crores)
Place : Nagpur
Date : 23rd May, 2015
CA. A M MARATHE RAMEHER RUPAK DAYAL R.R. MISHRAGeneral Manager (Finance) Company Secretary Director (Personnel) Chairman-cum-Managing Director
(DIN-05105263) (DIN-05103300)
As per our report of even date
FOR V.K. SURANA & CO
Chartered Accountants (FRN 110634 W)
CA. SUDHIR SURANA PARTNER
(M.No.43414 )
109
WESTERN COALFIELDS LIMITED
WESTERN COALFIELDS LIMITED(A MINI RATNA COMPANY)
(A Subsidiary of Coal India Limited)
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED ON 31ST MARCH, 2015
INCOME Notes For the Year For the Year
ended 31.03.15 ended 31.03.14
(I) Revenue From Operations 20A Sale of Coal, coke etc. 9,652.74 8,563.64
Less:- Excise Duty 505.42 454.08 Other Levies 1,821.93 1,495.73Net Sales 7,325.39 6,613.83
B Other Operating Revenue 244.87 174.77Less: Excise Duty 12.49 8.45 Other Levies 9.25 6.24Net Other Operating Revenue 223.13 160.08Revenue from Operations (A+B) 7,548.52 6,773.91
II. Other Income 21 429.12 473.81III. Total Revenue (I+II) 7,977.64 7,247.72IV. EXPENSES
Cost of Material Consumed 22 1,149.93 1,143.82Purchase of Stock-in-trade - -Change in inventories of finished goods work inprogress and Stock in trade 23 (0.63) (84.15)Employee benefit expenses 24 4,454.04 4,241.11Power & Fuel 309.72 329.95Corporate Social Responsibility 25 20.15 23.95Repairs & Maintenance 26 64.34 51.12Contractual Expenses 27 708.83 604.97Finance Costs 28 - 2.26Depreciation/amortization/Impairment 236.07 192.23Provisions 29 210.69 116.49Write off 30 - -Overburden Removal Adjustment 15.97 47.61Other Expenses 31 263.79 255.80
Total Expenses 7,432.90 6,925.16V. Profit/(Loss) before Prior Period,
exceptional and extraordinary items and tax (III-IV) 544.74 322.56VI. Prior Period Adjustment { charges/ (Incomes) } 32 (0.05) (3.30)VII. Exceptional Items - -VIII. Profit/(Loss) before extraordinary items and tax (V-VI-VII) 544.79 325.86IX. Extraordinary Items { charges/ (Incomes) } - -X. Profit/(Loss) before Tax (VIII-IX) 544.79 325.86XI. Less : Tax Expense
- Current year 242.33 151.39 - Deferred Tax (56.34) 139.40 - Earlier years (including Deferred Tax � 58.36 crores) 45.65 (188.52)
XII. Profit/(Loss) for the period fromcontinuing operations ( X-XI) 313.15 223.59
XIII. Profit/(Loss) from discontinuing operations (0.01) (0.01)XIV. Tax expenses of discontinuing operations - -XV. Profit/(Loss) from discontinuing operations
(after tax) ( XIII-XIV) (0.01) (0.01)XVI. Profit/(Loss) for the period ( XII+XV) 313.14 223.58XVII. Earning per equity share (in � )
(Face Value of � 1000/- per share) (1) Basic 1,053.99 752.54 (2) Diluted 1,053.99 752.54Significant Accounting Policies 33Additional Notes on Accounts 34The Notes referred to above form an integral part of Statement of Profit and Loss
(` crores)
Place : Nagpur
Date : 23rd May, 2015
CA. A M MARATHE RAMEHER RUPAK DAYAL R.R. MISHRAGeneral Manager (Finance) Company Secretary Director (Personnel) Chairman-cum-Managing Director
(DIN-05105263) (DIN-05103300)
As per our report of even date
FOR V.K. SURANA & CO
Chartered Accountants (FRN 110634 W)
CA. SUDHIR SURANA PARTNER
(M.No.43414 )
110
ANNUAL REPORT 2014-15
WESTERN COALFIELDS LIMITED(A MINI RATNA COMPANY)
(A Subsidiary of Coal India Limited)
CASH FLOW STATEMENT FOR YEAR ENDED ON 31ST MARCH, 2015
31/3/2015 31/3/2014
A) CASH FLOWS FROM OPERATING ACTIVITIESNet Profit before taxation and extraordinary items 544.79 325.86Adjustments for:Depreciation/amortization/Impairment 236.69 191.73Foreign Exchange Fluctuation - 9.00Interest Income (365.60) (415.95)Dividend Received from Mutual Fund (32.16) (26.57)OBR Adjustment 15.97 47.61Finance Cost - 2.26Provisions made during the year 210.69 131.82(Profit)/Loss on Sale of Assets (2.93) (1.12)Operating profit before working capital changes 607.45 264.64
(Increase)/Decrease in Trade Receivables (208.09) 3.02(Increase)/Decrease in Inventories (14.32) (76.68)(Increase)/Decrease in Loans & Advances 163.78 167.56Increase/(Decrease) in Trade & Other Payable 469.21 (67.55)Cash generated from operations 1018.03 290.99Direct Taxes paid (Net) (460.42) 86.61Loss from Discontinued Operations (0.01) (0.01)Cash flow before Extraordinary Items 557.60 377.59
Extraordinary Items - -Net cash flow from Operating Activities 557.60 377.59
B) CASH FLOWS FROM INVESTING ACTIVITIESPurchase of Fixed Assets (518.79) (287.67)Proceeds from Sale of Assets 8.73 4.36Change in Non-Current Investments 32.09 32.09Investment in Mutual Fund 190.94 137.94Interest Received 365.60 415.95Dividend Received from Mutual Fund 32.16 26.57Change in Other Bank Balance (Fixed Deposits) (350.30) (493.98)Net cash flow from investing activities (239.57) (164.74)
C ) CASH FLOWS FROM FINANCING ACTIVITIESProceeds from Long Term Borrowings - -Repayment of Long Term Borrowings - (93.92)Finance Cost - (2.26)Dividend Paid (including Dividend Distribution Tax) (157.11) (227.67)Net cash used in Financing Activities (157.11) (323.85)
NET INCREASE/(DECREASE) IN CASH & CASH EQUIVALENTS 160.92 (111.00)CASH & CASH EQUIVALENTS AT BEGINNING OF PERIOD 692.17 803.17CASH & CASH EQUIVALENTS AT END OF PERIOD 853.09 692.17
Note:1. Cash & Cash Equivalents ( Maturity upto 3 Months) 853.09 692.17 Other Bank Balances (considered in investing activities) 4284.94 3934.64Total (Refer Note 17) 5138.03 4626.812. Purchase of Fixed Assets includes movements of Capital Work-in-progress between the beginning and the end of the period.
(` crores)
FOR THE YEAR ENDED ON
Place : Nagpur
Date : 23rd May, 2015
CA. A M MARATHE RAMEHER RUPAK DAYAL R.R. MISHRAGeneral Manager (Finance) Company Secretary Director (Personnel) Chairman-cum-Managing Director
(DIN-05105263) (DIN-05103300)
As per our report of even date
FOR V.K. SURANA & CO
Chartered Accountants (FRN 110634 W)
CA. SUDHIR SURANA PARTNER
(M.No.43414 )
111
WESTERN COALFIELDS LIMITED
As at As at31-03-15 31-03-14
NOTE - 2
NOTES TO BALANCE SHEET
NOTE - 1
SHARE CAPITALAs at As at
31/3/2015 31/3/2014
(` crores)
Authorised share capital
(i) 8000000 Equity Shares of ̀ 1000/- each 800.00 800.00
800.00 800.00Issued, Subscribed and fully Paid-up
(i) 1800019 Equity Shares of ̀ 1000/- each fully paid up in cash 180.00 180.00
(ii) 1170981 Equity Shares of ̀ 1000/- each allotted as fully paid
up for funds adjusted against purchase consideration other than cash 117.10 117.10
297.10 297.10
1 Shares in the company held by each shareholder holding more than 5% Shares
Name of Shareholder No. of Shares Held ( Face value of ̀ 1000 each) % of Total SharesCoal India Ltd - Holding Company 2971000 100
2 During the year there is no change in the number of shares issued.
3 Coal India Ltd - Holding Company has got 100% voting rights
Capital Reserve As per last Balance Sheet 0.00 0.00 Add: Addition during the year - - Less: Adjustment During the year - -
0.00 0.00Capital Redemption Reserve As per last Balance Sheet - - Add: Addition during the year - - Less: Adjustment During the year - -
- -Reserve for Foreign Exchange Transactions As per last Balance Sheet - - Add: Addition during the year - - Less: Adjustment During the year - -
- -CSR Reserve As per last Balance Sheet 46.10 48.76 Add: Addition during the year - 21.14 Less: Transfer to General Reserve 46.10 23.80
- 46.10Sustainable Development Reserve As per last Balance Sheet 0.91 0.35 Add: Addition during the year - 0.72 Less: Transfer to General Reserve 0.91 0.16
- 0.91General Reserve As per last Balance Sheet 1,131.81 1,074.31 Add: Transfer from Profit & Loss Account 31.31 33.54 Add: Transfer from CSR & SD reserve 47.01 23.96
1,210.13 1,131.81Surplus in Statement of Profit & Loss As per last Balance Sheet 2,050.57 2,039.50 Less: Adjustment for Depreciation (52.68) - Profit/(Loss) after Tax During the Year 313.14 223.58 Profit/(Loss) available for Appropriation 2,311.03 2,263.08APPROPRIATIONReserve for Foreign Exchange Transaction - -Transfer to General Reserve 31.31 33.54Transfer to CSR Reserve - 21.14Transfer to SD Reserve - 0.72Interim Dividend - -Proposed Dividend on Equity Shares (@ ‘. 633/share) 188.06 134.29Corporate Dividend Tax 37.60 22.82
2,054.06 2,050.57Miscellaneous Expenditure(to the extent not written off)Preliminary Expenses
- -Pre-Operational Expenses - -
- -Total : 3,264.19 3,229.39
General Reserve:Opening balance of CSR & SD reserve has been transferred to General reserve, as per Schedule III of Companies Act, 2013.
During the year an amount (10% of PAT) of ̀ . 31.31 crores (`33.54 crores) is transferred to General Reserve.
(` crores)
112
ANNUAL REPORT 2014-15
As at As at
31-03-15 31-03-14
- -
NOTE - 3
LONG TERM BORROWING
NOTES TO BALANCE SHEET (CONTD.)
Term Loan
Export Development Corp., Canada - -
Liebherr France S.A., France - -
Loan From Coal India Limited - -
Total - -
(` crores)
113
WESTERN COALFIELDS LIMITED
NOTES TO BALANCE SHEET (CONTD.)
NOTE - 4
OTHER LONG TERM LIABILITIES
As at As at
31/3/2015 31/3/2014
Shifting & Rehabilitation Fund
Opening Balance - -
Add: Interest from Investment of the fund - -
Add: Contribution Received - -
Less : Amount utilised - -
- -
Trade Payable - -
Security Deposits 6.45 4.16
Others ( Specify Nature) - -
Total 6.45 4.16
(` crores)
114
ANNUAL REPORT 2014-15
NOTES TO BALANCE SHEET (CONTD.)
NOTE - 5
LONG TERM PROVISIONS
As at As at31/3/2015 31/3/2014
For Employee Benefits - -
- Gratuity - 10.72
- Leave Encashment 422.48 389.78
- PRMBS 117.62 121.78
- Other Employee Benefits 283.92 262.53
For Foreign Exchange Transactions (Marked to Market) - -
OBR Adjustment Account 2,329.91 2,313.94
Mine Closure 967.70 695.86
For Others - -
TOTAL
4,121.63 3,783.89
Note:
Details of OBR ADJUSTMENT ACCOUNT as above
A OBR Advance stripping
as per last accounts 1,622.10 1,473.13
Add: expenditure during the year 1,759.88 1,639.06
Written off/adjusted 1,657.64 1,490.09
TOTAL (A) 1,724.34 1,622.10
B Ratio Variance
as per last accounts 3,936.04 3,739.46
Written off/adjusted 118.21 196.58
TOTAL (B) 4,054.25 3,936.04
C Total (A-B) 2,329.91 2,313.94
a) Gratuity Liability under payment of Gratuity Act, is based on actuarial valuation certified by Actuary. which as on 31st
March, 2015 comes to ` 2247.25 crores (` 2218.94 crores). After considering the fund available with the trustees of the
Gratuity fund, an additional expenditure of ` 109.90 crores (` 15.97 crores) is debited to Statement of Profit & Loss.
b) Actuarial valuation for Leave Encashment has been made and liability assessed by actuary is ̀ 464.43 crores (` 427.53
crores) as on 31st March, 2015. As a result an amount of ̀ 36.90 crores (` 26.15 crores) has been charged to statement
of Profit & Loss. As certified by Actuary expected payment within next 12 months is ` 41.95 crores, the same is shown
under Note 9
c) Actuarial valuation of LLTC/LTA, Settlement Allowance, Accidental Insurance Cover, Life Cover and Fatal Mine Accident
has been made by the Actuary for an amount of ̀ 127.97 crores (` 132.83 crores). Accordingly an amount of ̀ 4.86 crores
(` 7.47 crores) has been credited to the statement of Profit and Loss.
d) i) Actuarial Valuation for Post Retirement Medical Benefit for executive employees has been made by Actuary as on 31st
March, 2015 for an amount of ̀ 117.23 Crores (For employees retired prior to 1.1.2007, ̀ 21.04 Crores, for employees retired
after 1.1.2007, ̀ 41.33 Crores and for existing employees ̀ 54.86 Crores). Accordingly, a net amount of ` 13.72 Crores is
withdrawn after adjustment of amount deposited by retired employees to avail medical benefits.
ii) Post Retirement Medical Benefit for Non-executive employees has started from 2014-15. An amount of ̀ 0.32 crores is
provided after adjustment of deposit from retired employees ̀ 0.07 crores. Actuarial liability for the same as on 31.03.2015
is ` 0.39 crores.
(` crores)
115
WESTERN COALFIELDS LIMITED
NOTES TO BALANCE SHEET (CONTD.)
NOTE - 6
SHORT TERM BORROWING
As at As at
31/3/2015 31/3/2014
Loan From Bank - -
Loans Repayable on Demand
Balance with Coal India Limited & other Subsidiaries of Coal India Limited - -
Overdraft against Pledge of Term Deposit - -
Other Loans and Advances
Deferred Credits - -
Total : - -
TRADE PAYABLES As at As at31-03-15 31-03-14
Sundry Creditors For Revenue Stores 106.60 84.14
TOTAL 106.60 84.14
NOTE - 7
( Refer additional Note WD - 4)
a) Amount due to Small Scale Industries amounting to more than ` 1 lakh and outstanding for more than 30 days is ` NIL
( ` NIL )
b) The applicability of Micro, Small and Medium Enterprises Development Act, 2006 (MSMEDA, 2006) to the company for the
purpose of disclosure and other requirements, could not be ascertained pending information from the suppliers.
c) Sundry Creditors to the tune of ` 12.33 Crores (` 12.68 Crores) remain unadjusted for more than three years pending
reconciliation.
NIL
(` crores)
116
ANNUAL REPORT 2014-15
Current Maturities of Long Term Borrowings
Term Loan From IBRD- Through CIL (Holding Company) -
Term Loan From JBIC- Through CIL (Holding Company) -
Term Loan From Export Development Corp., Canada -
Term Loan
From Liebherr France S.A., France - -
Loan From Coal India Limited - -
Surplus Fund from Coal India - -
Current Account with Subsidiaries - -
For Capital (including Stores) 27.81 23.08
FOR EXPENSES :Salary Wages & Allowances 346.81 347.37
Power & Fuel 38.45 40.04
Others 193.83 182.11
579.09 569.52STATUTORY DUES :Central Sales Tax 3.56 3.53
Sales Tax/VAT 20.04 22.98
Provident Fund & Pension Fund 72.15 67.88
Central Excise Duty (9.70) (19.95)
Royalty & Cess on Coal 81.05 95.96
Stowing Excise Duty 10.98 11.42
Clean Energy Cess 73.92 37.38
Other Statutory Levies 32.22 35.97
284.22 255.17Income Tax Deducted at Source 17.51 33.32
Security Deposit 75.95 64.31
Earnest Money 41.29 31.45
Advance & Deposit from customers / others 613.77 548.16
Interest Accrued and due on Borrowings - -
Interest Accrued but not due on Borrowings - -
Cess Equilisation Account - -
Current Account with IICM - -
Unpaid Dividend - -
Ex-Owner Account - -
Advance Deposit other Pre-Nationalisation - -
Liability for CISPA 0.99 1.06
Others Liabilities 209.13 178.12
TOTAL 1,849.76 1,704.19
1 Sales Tax/VAT, Central Excise Duty are shown above is Net of Credit Receivables
2 During the period recovery of electricity charges @ 1% of basic pay has been made from the salary/wages of non-executive
employees. This recovery has been challenged by the employees before the Calcutta High Court and as per the directives of
the Court, the amount so recovered has been deposited with the State Bank of India, Nagpur. As per directives of CIL and
pending settlement with the employees the same has been kept separately under FC 470120 to the tune of ̀ 46.01 Crores.
During the year of 2014-15, this deposit has earned an interest of ̀ 3.12 crores (` 3.44 crores) and the same is treated as
liability. There is a contingent liability against the company to the extent of excess interest, if any, awarded by the Court on
final disposal of the case.
3 Outstanding capital liability for civil works / Plant & Machinery completed in different Areas include an amount of ` 2.99
Crores (` 2.25 Crores) outstanding for more than three years.
4 Deductions made from employees’ remuneration in 1996-97 towards Union Fund (`0.78 Crores) and Relief Fund (`0.39 Crores)
continue to be kept in separate deposit accounts as the matter is sub-judice. The interest earned on these deposits upto 31st
March, 2015 is ` 2.16 Crores (C.Y ̀ 0.21 Crores) and ‘ 0.99 Crores (C.Y. ̀ 0.12 Crores) respectively. The deduction together
with the interest is appearing under the head Other Liability.
5 Liability for CISPAAs per instruction from CIL, liability for Coal India Sports Promotion Association (CISPA) is be provided at ` 0.25 paise per
tonne of coal production of the previous year. Accordingly, during the year an amount of ` 0.99 crores is provided.
NOTE - 8
NOTES TO BALANCE SHEET (CONTD.)
OTHER CURRENT LIABILITIES As at As at
31-03-15 31-03-14
117
WESTERN COALFIELDS LIMITED
NOTE - 9
NOTES TO BALANCE SHEET (CONTD.)
SHORT TERM PROVISIONS As at As at
31/03/2015 31/03/2014
For Employee Benefits
- Gratuity 105.95 10.72
- Leave Encashment 41.95 37.75
- PPLB 175.62 158.46
- PRP 490.55 418.54
- Other Employee Benefits - -
For Proposed Dividend 188.06 134.29
For Corporate Dividend Tax 37.60 22.82
Provision for Income Tax - -
Less : Advance Income Tax / Tax Deducted at Source - -
For Excise Duty on Closing Stock of Coal 63.87 68.34
For Others - -
TOTAL 1,103.60 850.92
(` crores)
NOTE - 10 AFIXED ASSETS
( ` Crores)
PARTICULARSAs on
01.04.2014
Addition
during the
period
Adj./Sales
/Transfer
during the
period
As on
31.03.2015
As on
01.04.2014
Addition
during the
period
Adj./Sales
/Transfer
during the
period
As on
31.03.2015
As on
01.04.2014
Addition
during the
period
Adj./Sales
/Transfer
during the
period
As on
31.03.2015
As on
31.03.2015
As on
31.03.14
(A).Tangible AssetsLand
(a) Freehold 95.04 4.94 2.63 102.61 - - - - - - - 102.61 95.04
(b) Land - others 229.75 301.04 (2.58) 528.21 137.71 14.62 0.02 152.35 - - - - 152.35 375.86 92.04
Building/Water
Supply/Road & Culverts 637.25 13.59 (1.03) 649.81 230.33 27.71 54.47 312.51 0.12 - - 0.12 312.63 337.18 406.80
Plant & Equipments 2,945.31 100.92 (126.09) 2,920.14 2,086.66 172.28 (95.56) 2,163.38 1.54 - - 1.54 2,164.92 755.22 857.11
Telecommunication 16.84 0.23 0.10 17.17 14.90 0.47 (0.04) 15.33 - - - - 15.33 1.84 1.94
Railway Sidings 29.72 0.46 - 30.18 25.95 1.31 0.13 27.39 - - - - 27.39 2.79 3.77
Furniture & Fixtures/
Office Tools &
Equipments/ Electrical
Fittings/ Fire Arms 34.03 2.02 (0.15) 35.90 28.91 1.14 0.64 30.69 - - - - 30.69 5.21 5.12
Vehicle 47.81 0.82 (2.15) 46.48 43.23 0.45 (2.03) 41.65 - - - - 41.65 4.83 4.58
Aircraft - - - - - - - - - - - - - - -
Development - - - - - - - - - - - - - - -
Assets taken on
Nationalisation 9.07 - - 9.07 9.06 - - 9.06 - - - - 9.06 0.01 0.01
TOTAL 4,044.82 424.02 (129.27) 4,339.57 2,576.75 217.98 (42.37) 2,752.36 1.66 - - 1.66 2,754.02 1,585.55 1,466.41
(B). Surveyed off
Assets 25.32 6.53 (5.23) 26.62 - - - - 1.16 - - 1.16 1.16 25.46 24.16
Total Tangible
Assets (A+B)
(As on 31.03.2015) 4,070.14 430.55 (134.50) 4,366.19 2,576.75 217.98 (42.37) 2,752.36 2.82 - - 2.82 2,755.18 1,611.01 1,490.57
Tangible Assets (As
on 31.03.2014) 3,950.81 217.95 (123.94) 4,044.82 2,524.36 169.94 (117.55) 2,576.75 1.65 0.01 1.66 2,578.41 1,466.41 1,424.80
Surveyed off Assets
(As on 31.03.2014) 22.29 6.27 (3.24) 25.32 - - - - 1.16 - - 1.16 1.16 24.16 21.13
Total Tangible Asset
(As on 31.03.2014) 3,973.10 224.22 (127.18) 4,070.14 2,524.36 169.94 (117.55) 2,576.75 2.81 0.01 - 2.82 2,579.57 1,490.57 1,445.93
Intangible AssetsComputer Software - - - - - - - - - - - - - - -
Development 505.10 11.64 (21.89) 494.85 305.42 16.44 (19.61) 302.25 95.88 0.86 (0.80) 95.94 398.19 96.66 103.80
Prospecting & Boring 50.33 - (1.67) 48.66 30.80 1.44 (3.20) 29.04 5.62 - 0.04 5.66 34.70 13.96 13.91
Total 555.43 11.64 (23.56) 543.51 336.22 17.88 (22.81) 331.29 101.50 0.86 (0.76) 101.60 432.89 110.62 117.71
Intangible Assets
(As on 31.03.2014) 542.23 26.55 (13.35) 555.43 329.28 17.76 (10.82) 336.22 100.12 4.02 (2.64) 101.50 437.72 117.71 112.83
a)
b)
c)
d) Land - others also includes Land acquired under Coal Bearing Areas Act, 1957 and Land Acquisition Act, 1894.
Company took over various assets from the Coal Mines Labour Welfare Organisation (since repealed) situated at various locations and Coal Mines Rescue Station at Pench, in the years 1984 and 1986 respectively, consequent to
decision by Government of India. These Assets have not been incorporated in the Accounts pending finalisation of purchase consideration thereof by the Central Government. Accounting adjustment would be made on final
determinationPlant and Machinery are shown net of Input Tax Credit claim of VAT and CENVAT credit receivable wherever applicable
GROSS BLOCK DEPRECIATION /AMORTISATION IMPAIRMENT LOSSTotal
Depreciation/
Impairment
Loss
NET CARRYING VALUE
Fixed Assets taken over by Company from Western Division of Coal Mines Authority of India Ltd, vested consequent to nationalisation of Coal Mines, appearing as "Assets taken over on Nationalisation” under the head 'Fixed
Assets', stood depreciated in the course of earlier years and are appearing in accounts at a total residual value of ` 0.01 crore only
AN
NU
AL
RE
PO
RT
2014-1
5
118
WESTERN COAL FIELDSLIMITED
(A subsidiary of Coal India Limited)
NOTE - 10 B
CAPITAL WORK-IN-PROGRESS
PARTICULARS As on
01.04.2014
Addition
during the
period
Adj./Sales/
Transferduring the
period
As on
31.03.2015
As on
01.04.2014
Addition
during the
period
Adj./Sales/T
ransferduring the
period
As on
31.03.2015
As on
01.04.2014
Addition
during the
period
Adj./Sales/
Transferduring the
period
As on
31.03.2015
As on
31.03.2015
As on
31.03.14
Tangible Assets
Building/Water
Supply/Road &
Culverts 12.79 14.22 (12.90) 14.11 - - 0.04 0.04 0.04 14.07 12.75
Plant & Equipments 18.04 4.68 (3.92) 18.80 - - 8.73 (0.76) 7.97 7.97 10.83 9.31
Railway Sidings - - - - - - - - -
Development - - - - - - - - -
Others 22.28 80.41 (71.09) 31.60 0.51 0.04 (0.24) 0.31 0.08 0.10 0.76 0.94 1.25 30.35 21.69
TOTAL 53.11 99.31 (87.91) 64.51 0.51 0.04 (0.24) 0.31 8.85 0.10 - 8.95 9.26 55.25 43.75
Tangible Assets(As on 31.03.2014) 49.44 99.40 (95.73) 53.11 0.42 0.09 - 0.51 8.44 0.41 - 8.85 9.36 43.75 40.58
a)
b)
c)
Inventory of Steel, Cement, Cables, Conveyors, etc. lying at year end are forming part of Capital Work-In-Progress.
Provision for Non-moving Capital Stores & Spares, not moved for 5 years is made as per company's accounting policy @ 50% and @ 100% for unserviceable, damaged and obsolete obsolete stores. During
the period an additional provision to the tune of 0.10 crores has been made. Thus the closing provision as on date stands at 0.18 crores` `
COST PROVISION IMPAIRMENT LOSS Total
Deprecia
tion/Impairment Loss
NET CARRYING VALUE
Provision Equivalent to Depreciation has been provided on Plant & Machinery lying in Stores (Pending capitalisation) for more than three years.The resultant impact in current period is ` 0.04 Crores( ` 0.09
Crores).
WE
ST
ER
N C
OA
LF
IELD
S L
IMIT
ED
119
NOTE - 10 C
INTANGIBLE ASSET UNDER DEVELOPMENT
PARTICULARS As on
01.04.14
Addition
duringthe
period
Adj./Sales/
Transferduring the
period
As on
31.03.2015
As on
01.04.14
Addition
duringthe
period
Adj./Sales/Transfer
during theperiod
As on
31.03.201
5
As on
01.04.14
Addition
during the
period
Adj./Sales/
Transfer
during the
period
As on
31.03.2015
As on
31.03.2015
As on
31.03.2014
Intangible Assets
Development 171.72 40.79 (3.37) 209.14 - - - - - 209.14 171.72
Prospecting & Boring 120.41 37.85 (3.54) 154.72 - 154.72 120.41
TOTAL 292.13 78.64 (6.91) 363.86 - - - - - - - - - 363.86 292.13
Intangible Assets
(As on 31.03.2014) 252.63 58.32 (18.82) 292.13 0.02 (0.02) - - - 292.13 252.61
COST PROVISION IMPAIRMENT LOSSTotal
Depreciation
/ Impairment
Loss
NET CARRYING VALUE
AN
NU
AL
RE
PO
RT
2014-1
5
120
121
WESTERN COALFIELDS LIMITED
NOTES TO BALANCE SHEET (CONTD.)
NOTE - 11NON - CURRENT INVESTMENTS - quoted / Unquoted at Cost
(Refer additional Note No- 9 )
Face value per
shares/bonds/
security
current year/
(previous year) Rs.
Number of
shares/bonds/
securities current
year/
(previous year)
INVESTMENT :
The Bonds received on Securitization of dues from State Electricity Boards, from the State Governments of Maharashtra &
Madhya Pradesh with a lock-in-period of five years are treated as long term investments and are valued at cost unless there is a
permanent diminution in the value of investment. The year end balance as on 31.3.2015, is ̀ 32.09 crores. As the entire amount
will mature within 12 months, it is shown as current investment (Note- 14).
As at As at
31-03-15 31-03-14
TRADE INVESTMENTS (Unquoted)
Investments in Govt. Securities
8.5% Tax Free Special Bonds (Fully Paid up) :
(on securitisation of Sundry Debtors)
Major State-wise Break-up
UP - - - -
Haryana - - - -
Maharashtra - - - 29.55
(2,95,485) 1,000.00 - -
Madhya Pradesh - - - 18.59
Gujarat (1,85,865) 1,000.00 - -
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 : - 48.14
Aggregate of Unquoted Investment - 48.14
122
ANNUAL REPORT 2014-15
NOTE - 12
NOTES TO BALANCE SHEET (CONTD.)
LONG TERM LOANS & ADVANCES As at As at31/3/2015 31/3/2014
The advances to suppliers/contractors and for capital works/mobilisation advances lying unadjusted since long are ̀ 2.34
Crores (` 1.53 Crores). Necessary provisions are appearing in the books of accounts for the same amount.
Due by the Companies in which directors of the companyis also a director/member
Due by the parties in which the Director(s) ofcompany is /are interested
CLOSING BALANCE
CURRENT
PERIOD
MAXIMUM AMOUNT
DUE AT ANY TIME DURING
CURRENTPERIOD
CURRENTPERIOD
PREVIOUSPERIOD
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
(` crores)
LOANSADVANCESFor Capital- Secured considered Good - -- Unsecured considered Good
.05 0.30- Doubtful 0.92 1.53
0.97 1.83Less : Provision for Doubtful Loans and Advances1 0.92 1.53
0.05 0.30For Revenue- Secured considered Good - -- Unsecured considered Good - -- Doubtful - -
- -Less : Provision for Doubtful Loans and Advances - -
- -Security Deposits- Secured considered Good - -- Unsecured considered Good - -- Doubtful - - - -Less : Provision for Doubtful Loans and Advances - -
- -Deposit for P&T, Electricity etc.- Secured considered Good - -- Unsecured considered Good 81.32 50.85- Doubtful 1.09 1.09
82.41 51.94Less : Provision for Doubtful Loans and Advances 1.09 1.09
81.32 50.85LOAN TO EMPLOYEES & OTHERSFor House Building- Secured Considered Good 6.59 8.48- Unsecured Considered Good - -- Doubtful - -
6.59 8.48For Motor Car and Other Conveyance- Secured Considered Good 0.22 0.27- Unsecured Considered Good - -- Doubtful - -
0.22 0.27For Others- Secured considered Good - -- Unsecured considered Good - -- Doubtful - -
-Less : Provision for Doubtful Loans and Advances - -
- -- -
Loan To Subsidiaries- Secured considered Good - -- Unsecured considered Good - -- Doubtful - -
- -TOTAL 88.18 59.90
123
WESTERN COALFIELDS LIMITED
NOTE - 13
NOTES TO BALANCE SHEET (CONTD.)
OTHER NON-CURRENT ASSETS As at As at
31/3//2015 31/3/2014
Long Term Trade Receivable
- Secured considered good - -
- Unsecured considered good - -
- Doubtful - -
- -
Less Provision for bad and doubtful Trade Receivable - -
- -
Exploratory Drilling Work
- Secured considered good - -
- Unsecured considered good - -
- Doubtful - -
- -
Less Provision for bad and doubtful - -
Receivable for Mine Closure Expenses 0.58 -
Other Receivables
- Secured considered good - -
- Unsecured considered good - -
- Doubtful - -
- -
Less Provision for bad and doubtful Receivables - -
- -
TOTAL 0.58 -
Due by the Companies in which directors of the
company is also a director/member
Due by the parties in which the Director(s) of
company is /are interested
CLOSING BALANCE
CURRENT
PERIOD
MAXIMUM AMOUNT
DUE AT ANY TIME DURING
CURRENTPERIOD
CURRENTPERIOD
PREVIOUSPERIOD
NIL NIL NIL NIL
NIL NIL NIL NIL
124
ANNUAL REPORT 2014-15
NOTES TO BALANCE SHEET (CONTD.)
NOTE - 14
Mutual Fund:
As on 31st March, 2015 investement in Mutual Fund amounts to ` 105.22 crores, which includes ` 3.22 crores
dividend earned and re-invested.
125
WESTERN COALFIELDS LIMITED
INVENTORIES
(Valuation as per Accounting Policy No 6)
As at As at
31-03-15 31-03-14
NOTE - 15
NOTES TO BALANCE SHEET (CONTD.)
Stock of Coal - Revenue Mines 661.50 663.48
Development Mines 6.99 -
668.49 663.48
Less : Provision 0.01 0.01
A Stock of Coal (Net) 668.48 663.47
Stock of Stores & Spares (at cost) 68.87 67.23
Stores -in -transit 9.78 4.72
Less : Provision 14.19 13.91
B Net Stock of Stores & Spares (at cost) 64.46 58.04
C Workshop Jobs :
Work-in-progress and Finished Goods 15.63 13.02
Less : Provision 1.45 1.45
Net Stock of Workshop Jobs 14.18 11.57
D Press :
Work-in-Progress and Finished Goods - -
E Stock of Medicine at Central Hospital - -
F Prospecting, Boring/ Development Expenditure/GR
- Coal Blocks meant for Sale 9.99 9.99
Total ( A to F ) 757.11 743.07
1 Provision - Stores:Provision for Non-Moving Stores & Spares, not moved for 5 years is made as per company’s accounting policy @ of 50% and
provision is made @ 100% for unserviceable, damaged and obsolete stores. During the year an additional provision to the tune
of ` 0.28 crores (` 0.19 crores) has been made. Thus the closing provision as on date stands at ̀ 14.19 crores (` 13.91 crores)
(` crores)
126
ANNUAL REPORT 2014-15
ANNEXURE TO NOTE - 15(Qty in '000 tonnes) ( value in crores)
Table:A Reconciliation of closing stock adopted in Account with Book stock as at the end of the year: 31/03/2015
OVERALL STOCK NON-VENDABLE STOCK VENDABLE STOCKQty. Value Qty. Value Qty. Value
NOTES TO BALANCE SHEET (CONTD.)
1. (A) Opening stock as on 01.04.14 5,699.35 663.48 5,699.35 663.48
(B) Adjustment in Opening Stock - - - - - -
2. Production for the year 41,302.02 7,361.22 - - 41,302.02 7,361.22
3. Sub-Total (1+2) 47,001.37 8,024.70 - - 47,001.37 8,024.70
4. Off- Take for the year :
(A) Outside Despatch 41,349.44 7,325.40 - - 41,349.44 7,325.40
(B) Coal feed to Washeries 149.45 29.20 - - 149.45 29.20
(C) Own Consumption 6.25 1.74 - - 6.25 1.74
TOTAL (A) 41,505.14 7,356.34 - - 41,505.14 7,356.34
5. Derived Stock 5,496.23 668.36 - - 5,496.23 668.36
6. Measured Stock 5,529.87 660.81 - - 5,529.87 660.81
7. Difference (5-6) (33.64) 7.55 - - (33.64) 7.55
8. Break-up of Difference:
(A) Excess within 5% 21.79 2.87 - - 21.79 2.87
(B) Shortage within 5% 82.09 10.42 - - 82.09 10.42
(C ) Excess beyond 5% 0.87 0.13 - - 0.87 0.13
(D ) Shortage beyond 5% - - - - - -
9. Closing stock adopted 5,591.04 668.49 - - 5,591.04 668.49
in A/c.( 6-8A+8B)
Table B : Summary of Closing stock of Coal
127
WESTERN COALFIELDS LIMITED
NOTE - 16
NOTES TO BALANCE SHEET (CONTD.)
Due by the Companies in which directors of the
company is also a director/member
Due by the parties in which the Director(s) of
company is /are interested
CLOSING BALANCE
CURRENTPERIOD
DUE AT ANY TIME DURING
PREVIOUS
PERIOD
CURRENT
PERIOD
PREVIOUS
PERIOD
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
As at As at
31/03/2015 31/03/2014
Debts outstanding for a period exceeding six months from the due date
- Secured considered good - -
- Unsecured considered good - 4.37
- Doubtful 77.93 72.54
77.93 76.91
Less Provision for bad and doubtful trade receivables 77.93 72.54
- 4.37
Other Debts
- Secured considered good - -
- Unsecured considered good 672.92 464.56
- Doubtful 5.88 7.17
678.80 471.73
Less Provision for bad and doubtful trade receivables 5.88 7.17
672.92 464.56
Total 672.92 468.93
a) During the year an amount of ` 4.10 Crores has been provided towards provision for Doubtful Debts. Total Provision for
Doubtful Debts as on 31st March, 2015 stands at ̀ 83.81 Crores (` ̀ 79.71 Crores).
b) Ministry of Power, Government of India had advised Madhya Pradesh Power Generation Corporation Ltd. (MPPGCL) to
securitise outstanding principal and interest up-to 30.09.2001 of ̀ 171.94 crores and ̀ 21.99 crores respectively. MPPGCL
had securitised ` 123.91 crores in 2003. For the balance of ̀ 70.02 crores MPPGCL had gone for Arbitration. Provision for
Doubtful debts for ̀ 62.08 crores is made and the balance ̀ 7.94 crores being interest has not been recongnised in the books.
(` crores)
128
ANNUAL REPORT 2014-15
NOTE - 17
NOTES TO BALANCE SHEET (CONTD.)
CASH & BANK BALANCE As at As at
31/03/2015 31/03/2014
Cash & Cash Equivalents
Balances with Scheduled Banks
- SBI Dividend Account (unpaid/unclaimed dividend account) - -
- In Deposit Accounts with maturity upto 3 months 577.73 577.50
- In Current Accounts 271.84 113.00
- In Cash Credit Accounts - -
Balances with Non - Scheduled Banks
In Account with Banks outside India
Remittance - in transit 0.52 0.67
Cheques, Drafts and Stamps on hand 2.82 0.81
Cash in hand 0.18 0.19
Deposit with Scheduled Banks under Shifting and
Rehabilitation Fund Scheme with maturity upto 3 months - -
Other Bank Balances
Balances with Scheduled Banks
- In Deposit Accounts with maturity more than 3 months 3,317.22 3,249.70
- In Deposit accounts under Shifting and Rehabilitation
Fund Scheme with maturity more than 3 months - -
Deposit with Scheduled Banks under Mine Closure Plan Scheme 967.72 684.94
Total 5,138.03 4,626.81
Cash & Cash Equivalents ( Maturity upto 3 Months) 853.09 692.17
Other Bank Balances (Maturity more than 3 Months) 4,284.94 3,934.64
Total 5,138.03 4,626.81
1 Balance in Deposit Accounts includes deposits of ` 967.72 crores ( ` 684.94 crores) having maturity of more than 12
months from the date of deposit.
2 Balance in Deposits Accounts includes an amount of ` 4.73 crores (` 4.70 crores) held as Bank Guarantee.
3 Balance with Scheduled Banks, In Deposit Account includes deposit for:
a) Undisburded Wages 2.04 2.04
b) 1% Electricity charges recovered from Non-Executives 57.20 33.08
c) Court cases for Union Fund, Relief Fund, 5% MPGATSVA and Bank Guarantee 93.89 81.99
129
WESTERN COALFIELDS LIMITED
NOTE - 18NOTES TO BALANCE SHEET (CONTD.)
(` crores)
SHORT TERM LOANS & ADVANCES As at As at31/03/2015 31/03/2014
LOANSADVANCE( Recoverable in cash or in kind or for value to be received)ADVANCE TO SUPPLIERSFor Revenue - Secured considered good - - - Unsecured considered good 7.72 3.99 - Doubtful 1.98 1.97
9.70 5.96 Less Provision for bad and doubtful Advance 1.98 1.97
7.72 3.99ADV PAYMENT OF STATUTORY DUES SalesTax - Secured considered good - - - Unsecured considered good - - - Doubtful - -
- - Less Provision for bad and doubtful Advance - -
- -
Advance Income Tax / Tax Deducted at Source 1,931.23 1,700.43 Less : Provision for Income Tax 1,112.83 883.21
818.40 817.22Others - Secured considered good - - - Unsecured considered good - - - Doubtful - -
- - Less Provision for bad and doubtful Advance - -
- -Advance to Employees - Secured considered good - - - Unsecured considered good 94.23 99.28 - Doubtful 0.10 0.12
94.33 99.40 Less Provision for bad and doubtful Advance 0.10 0.12
94.23 99.28Current Account with Coal India Limited &other Subsidiaries of Coal India Limited - -Loan Account with Subsidiaries - Secured considered good - - - Unsecured considered good - - - Doubtful - -
- - Less Provision for bad and doubtful Loan - -
- -Claims Receivables - Secured considered good - - - Unsecured considered good 59.11 61.44 - Doubtful 6.04 6.05
65.15 67.49 Less Provision for bad and doubtful claim receivables 6.04 6.05
59.11 61.44Prepaid Expenses 8.73 9.47TOTAL 988.19 991.40
Due by the Companies in which directors of the company is also a
director/member
Due by the parties in which the Director(s) of
company is /are interested
CLOSING BALANCE
CURRENTPERIOD
AT ANY TIME DURING
PREVIOUS
PERIOD
CURRENT
PERIOD
PREVIOUS
PERIOD
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
b) Provision for Income Tax: Provision for Income Tax for the year ended on 31st March 2015, ` 242.33 Crores (Previous Year :` 151.39 Crores) has been worked out as per the provisions of the Income Tax Act 1961 and on the basis of completed assessmentsof the Company.
130
ANNUAL REPORT 2014-15
NOTES TO BALANCE SHEET (CONTD.)
OTHER CURRENT ASSETS As at As at
31/3/2015 31/3/2014
NOTE - 19 (` crores)
Interest Accrued
- Investment 2.05 3.41
- Deposit with Banks 96.66 97.55
- Others -
Ex Owner’s Account -
Other Advances 40.05 24.93
Less: Provision 1.31 1.31
DEPOSITS
Deposit for Customs Duty, Port Charges etc. - -
Deposit for Royalty, Cess & Sales Tax 6.45 4.98
Less: Provision - -
Others 0.04 0.45
Less: Provision -
Deposit with Coal India Limited 177.46 116.29
Amount Receivable from Govt of India for transactions on behalf of Ex-Coal Board - -
Less: Provision - -
Other Receivables 40.83 73.93
Less: Provision 0.09 0.09
TOTAL 362.14 320.14
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WESTERN COALFIELDS LIMITED
Revenue From Operations For the year Ended onFor the Year Ended on 31/03/2015 31/03/2014
Sales of Coal, coke etc 9,652.74 8,563.64
Less: Excise Duty 505.42 454.08
9147.32 8,109.56
Less : Other Levies
Royalty 982.38 893.52
Cess on Coal - -
Stowing Excise Duty 40.31 38.85
Central Sales Tax 46.07 48.87
Clean Energy Cess 384.57 192.57
State Sales Tax/VAT 368.6 321.92
'Other Levies - -
TOTAL OTHER LEVIES 1,821.93 1,495.73
Net Sales (A) 7,325.39 6,613.83
Facilitation charges of coal import - -
Subsidy for sand stowing and protective works 20.48 23.41
Loading and additional transportation charges 224.39 151.36
Less: Excise Duty 12.49 8.45
Other Levies 9.25 6.24
Net Other Operating Revenue (B) 223.13 160.08
Revenue From Operations (A+B) 7,548.52 6,773.91
NOTE - 20
NOTES TO STATEMENT OF PROFIT & LOSS
(` crores)
a) Gross sales as shown above is net of levies like entry tax, transit fees, MPGATSVA Tax, etc. levied in the state of Madhya Pradesh
amounting to ` 53.45 Crores ( ` 49.22 crores)
b) Net Revenue from operations includes ` 51.94 Crore, Performance Incentive Bills raised as per Fuel Supply Agreements (FSA). This
includes ` 45.02 crores for supplies made during the year and ` 6.92 crores for balance Delivery Order quantity for the year 2013-14,
lifted during 2014-15.
c) In respect of mines having cost plus agreement with MSPGCL for supply of coal, coal sales bills are initially raised only for 90% value
of coal plus 100% Duties and Taxes. Final bills (for balance value) are raised after receipt of acceptable quality analysis reports of
sampling at loading and unloading ends.Pending receipt of quality report the accounting of 10% balance value is done on provisional
basis whereby ` 25.73 Crores (` 18.95 crores) have been accounted for.
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ANNUAL REPORT 2014-15
NOTE - 21
OTHER INCOME
31-03-15 31-03-14
NOTES TO STATEMENT OF PROFIT & LOSS
NOTE - 22
COST OF MATERIAL CONSUMED
31-3-2015 31-3-2014
Explosives 190.41 155.28
Timber 14.23 14.92
P O L 579.84 609.00
HEMM Spares 179.06 188.49
Other Consumable Stores & Spares 186.39 176.13
TOTAL 1149.93 1143.82
(` crores)
Income From Long Term InvestmentsDividend from Joint Ventures - -
Dividend from Subsidiaries - -
Interest from
Government Securities ( 8.5% Tax Free Special Bonds) ( Trade ) 2.04 4.77
Income From Current Investments
Dividend from Mutual Fund Investments 32.16 26.57
Interest from Government Securities ( 8.5% Tax Free Special Bonds) ( Trade ) 2.73 2.73
Income From Others
Interest (Gross)
From Deposit with Banks 339.19 357.95
From Loans and Advances to Employees 0.15 0.18
From Income Tax Refunds 2.80 18.89
From Coal India 13.69 12.32
Others 5.00 3.78
Apex Charges - -
Profit on Sale of Assets 4.14 1.48
Gain on Foreign exchange Transactions - -
Exchange Rate Variance - -
Lease Rent 0.05 0.02
Liability Write Backs - -
Guarantee Fees from Subsidiaries - -
Other non-operating Income 27.17 45.12
TOTAL 429.12 473.81
(` crores)
For the Year Ended on
For the Year Ended on
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WESTERN COALFIELDS LIMITED
NOTE - 23
NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.)
CHANGE IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK IN TRADE
31-03-15 31-03-14
Opening Stock of Coal 663.48 579.11
Add: Adjustment of opening stock - 5.44
Less: Deterioration of Coal 0.01 0.01
663.47 584.54
Less:
Closing Stock of Coal 661.50 663.48
Less: Deterioration of Coal 0.01 0.01
661.49 663.47
Change in Inventory of Coal 1.98 (78.93)
Opening Stock of Workshop made finished goods and WIP 13.02 7.80
Less: Provision 1.45 1.45
11.57 6.35
Less:
Closing Stock of Workshop made finished goods and WIP 15.63 13.02
Less: Provision 1.45 1.45
14.18 11.57
Change in Inventory of workshop (2.61) (5.22)
Press Opening Job
i)Finished Goods - -
ii)Work in Progress - -
- -
Less:
Press Closing Job
i)Finished Goods - -
ii)Work in Progress - -
- -
Change in Inventory of Closing Stock of Press
Job made finished goods and WIP - -
Change in Inventory of Stock in Trade (0.63) (84.15)
(A+B+C)
{Deccretion / (Accretion)}
(` crores)
For the Year Ended on
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ANNUAL REPORT 2014-15
Salary, Wages, Allowances & Benefits 3,257.63 3,195.35
Exgratia 201.19 173.09
PRP 71.84 62.12
Contribution to P.F. & Other Funds 376.27 367.52
Gratuity 109.90 15.97
Leave Encashment 112.42 91.69
VRS - -
Workman Compensation 1.46 1.12
Employee Welfare Expenses:
Medical Expenses for existing employees 62.63 54.93
Medical Expenses for retired employees (5.65) 21.64
Grants to Schools & Institutions 10.59 9.84
Sports & Recreation 2.53 2.49
Canteen & Creche 0.50 0.46
Power - Township 138.32 142.92
Hire charges of Bus, Ambulance etc. 13.79 13.18
Other Employee Benefits 100.62 88.79
TOTAL 4,454.04 4,241.11
NOTE - 24
EMPLOYEE BENEFIT EXPENSES(Refer additional Note No- 15 ) 31-03-15 31-03-14
Notes:a) As per instructions from CIL, provision has been created for Pension payable to executives at 3% of pay (Basic+DA) and
at 6.84% of pay (Basic+DA) for other Superannuation Benefits amounting to ` 26.22 Crores (` 25.48 crores).
b) As per instructions from CIL, provision for Post Superannuation Medical Benefit at 4% of Basic + DA for all executives(both
Board level & below Board Level) amounting to ̀ 10.66 crores ( ̀ .10.36 crores) has been provided.
c) The provision for Performance Linked Reward Scheme/ Productivity Linked Bonus Scheme for non-executives for the year
2013-14, was made at ̀ 31,500/- per employee. The said amount has increased to Rs. 40,000/-. Provision for the year 2014-
15, @ ̀ 40,000/- per employee has been made amounting to ` 175.62 crores.
As per instructions from CIL, the provision for Performance Related Pay for Executives has been made at ` 72.00 crores
(` 62.12 crores), including ‘ 0.16 crores (` NIL) capitlised for development mines
For the Year Ended on
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WESTERN COALFIELDS LIMITED
NOTE - 25
REPAIRS & MAINTENANCE
31-03-15 31-03-14
Building 25.29 14.54
Plant & Machinery 25.37 24.33
Others 13.68 12.25
TOTAL 64.34 51.12
NOTE - 26
NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.)
WELFARE EXPENSES
31-03-15 31-03-14
CSR Expenses 20.15 23.95
TOTAL 20.15 23.95
Note:
As per Corporate Social Responsibility policy of CIL, the recommanded expenditure on CSR activities is @ 2% of the net profit
of the company for the three immidiate preceding financial year which comes to ̀ 7.97 crores or ` 2/- per tonne of coal production
of the previous year which is ` 7.95 crores, whichever is higher. Against this, CSR expenses for the year is ` 20.15 crores,
including ‘. 1.50 crores towards Swach Vidhyalaya Abhiyaan.
CONTRACTUAL EXPENSES
31-03-15 31-03-14
Transportation Charges :
- Sand 12.46 11.78
- Coal & Coke 212.50 168.71
- Stores & Others etc. 0.29 0.41
Wagon Loading 10.75 10.88
Hiring of P&M 374.14 343.60
Other Contractual Work 98.69 69.59
TOTAL 708.83 604.97
NOTE - 27
CSR Expenses 20.15 23.95
TOTAL 20.15 23.95
(` crores)
(` crores)
(` crores)
For the Year Ended on
For the Year Ended on
For the Year Ended on
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ANNUAL REPORT 2014-15
(A) PROVISION MADE FORDoubtful debts 4.10 -
Doubtful advances & Claims - -
Foreign exchange Transaction - -
Stores & Spares 0.28 0.94
Reclamation of Land/Mine Closure Expenses 207.02 116.08
Surveyed off Fixed Assets/Capital WIP - 0.48
Others - -
TOTAL (A) 211.40 117.50(B) PROVISION WRITTEN BACKDoubtful debts - 0.68
Doubtful advances & Claims 0.61 0.33
Foreign exchange Transaction - -
Stores & Spares - -
Reclamation of Land/Mine Closure Expenses - -
Surveyed off Fixed Assets/Capital WIP 0.10 -
Others - -
TOTAL (B) 0.71 1.01
TOTAL ( A-B ) 210.69 116.49
FINANCE COSTS31-03-15 31-03-14
NOTE - 28
NOTE - 29
PROVISIONS31-03-15 31-03-14
WRITE OFF31-03-15 31-03-13
Doubtful debts - -
Doubtful advances - -
Others - -
TOTAL - -
NOTE - 30
NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.)
INTEREST EXPENSE
Deferred Payments - -
Bank Overdraft / Cash Credit - -
Interest on IBRD & JBIC Loan 0.89
CIL Fund Loan Interest - -
Interest to Subsidiaries - -
Others - -
TOTAL(A) - 0.89
OTHER BORROWING COSTS
Guarantee Fees on (IBRD & JBIC) Loan - 1.37
Other Expenses / Bank Charges - -
TOTAL(A) - 1.37
TOTAL (A+B) - 2.26
(` crores)
(` crores)
(` crores)
For the Year Ended on
For the Year Ended on
For the Year Ended on
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WESTERN COALFIELDS LIMITED
NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.)
NOTE - 31
OTHER EXPENSES
31/3/2015 31/3/2014
(` crores)
Travelling expenses
- Domestic 19.31 19.06
- Foreign 0.05 0.12
Training Expenses 3.13 2.94
Telephone & Postage 2.41 2.41
Advertisement & Publicity 4.16 3.29
Freight Charges 0.17 0.21
Demurrage 2.88 3.56
Donation/Subscription 0.39 0.54
Security Expenses 38.22 30.56
Service Charges of CIL 20.54 19.86
Hire Charges 32.98 28.40
CMPDI Expenses 15.77 26.22
Legal Expenses 3.14 2.56
Bank Charges 0.17 0.16
Guest House Expenses - -
Consultancy Charges 6.31 3.46
Under Loading Charges 7.37 11.17
Loss on Sale/Discard/Surveyed of Assets 1.21 0.36
Auditor’s Remuneration & Expenses
- For Audit Fees 0.15 0.15
- For Taxation Matters - -
- For Company Law Matters - -
- For Management Services - -
- For Other Services 0.34 0.31
- For Reimbursement of Expenses 0.03 0.15
Internal Audit expenses etc 1.31 1.19
Rehabilitation Charges 24.75 23.97
Royalty & Cess 7.27 6.46
Central Excise Duty (5.07) 0.95
Rent 2.49 3.12
Rates & Taxes 20.63 13.78
Insurance 0.62 0.72
Loss on Exchange Rate Variance - 9.00
Lease Rent - -
Rescue/Safety Expenses 1.17 0.93
Dead Rent/Surface Rent 0.19 0.21
Siding Maintenance Charges 2.38 3.14
Land/Crops Compensation 0.06 0.48
Environmental Expenses 15.31 14.56
Tree Plantation 0.86 2.06
R & D Expenses 8.26 -
Misceleneous Expenses 24.83 19.74
TOTAL 263.79 255.80
For the Year Ended on
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ANNUAL REPORT 2014-15
PRIOR PERIOD ADJUSTMENT
31-03-15 31-03-14
NOTE - 32
NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.)
(A) Expenditure
Sale of Coal & Coke - -
Other Income - -
Consumption of Stores & Spares - 1.58
Employees Remuneration & Benefits - -
Power & Fuel 0.66 -
Welfare Expenses - 0.59
Repairs -
Contractual Expenses 0.28 0.35
Other Expenditure - 1.14
Interest and other financial charges - -
Depreciation 0.62 -
TOTAL (A) 1.56 3.66
(B) Income
Sale of Coal & Coke 3.53
Other Income 0.99
Consumption of Stores & Spares - -
Employees Remuneration & Benefits - 1.91
Power & Fuel - -
Welfare Expenses - -
Repairs - -
Contractual Expenses - -
Other Expenditure 1.61 -
Interest and other financial charges - -
Depreciation 0.53
TOTAL (B) 1.61 6.96
TOTAL ( A-B ) (0.05) (3.30)
(` crores)
For the Year Ended on
139
WESTERN COALFIELDS LIMITED
WESTERN COALFIELDS LIMITED
NOTE - 33
SIGNIFICANT ACCOUNTING POLICIES
1.0 Accounting Convention:
Financial statements are prepared under the historical cost convention and on
accrual basis of accounting and going concern concept, in accordance with the generally
accepted accounting principles in India and the relevant provisions of the Companies
Act, 2013 including accounting standards notified there under , except otherwise stated.
1.1 Use of estimate
In preparing the financial statements in conformity with Accounting Principles
generally accepted in India, management is sometimes required to make estimates
and assumptions that affect the reported amounts of assets and liabilities and the
disclosures of contingent liability as at the date of financial statements and the
amount of revenue and expenses during the reported period. Actual results may
differ from those estimates. Any revision to such estimate is recognized in the period
in which the same is determined.
2.0 Subsidies / Grants from Government:
2.1 Subsidies / Grants on capital account are deducted from the cost of respective
assets to which they relate. The unspent amount at the Balance Sheet date, if any,
is shown as current liabilities.
2.2 Subsidies / Grants on revenue account are credited to Statement of Profit & Loss
as income and the relevant expenses are debited to the respective heads. The
unspent amount at the Balance Sheet date, if any, is shown as current liabilities.
2.3 Subsidies / Grants from Government received as an implementing agency
2.3.1 Certain Grant / Funds received under S&T, PRE, EMSC, CCDA etc, as
an implementing agency and used for creation of assets are treated as
Capital Reserve Account. The ownership of the asset created through
grants lies with the authority from whom the grant is received.
2.3.2 Grant / Funds received as Nodal/Implementing Agency are accounted for
on the basis of receipts and disbursement.
3.0 Fixed Assets:
3.1 Land:Value of land includes cost of acquisition, cash rehabilitation expenses, resettlementcost and compensation in lieu of employment incurred for concerned displacedpersons.
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ANNUAL REPORT 2014-15
3.2 Plant & Machinery:
Plant & Machinery includes cost and expenses incurred for erection / installationand other attributable costs of bringing those assets to working conditionsfor their intended use.
3.3 Railway Siding:
Pending commissioning, payments made to the railway authorities for constructionof railway sidings are shown in Note 12 – “Long Term Loans & Advances” underAdvances for Capital.
3.4 Development:
Expenses net of income of the projects / mines under development are booked toDevelopment Account and grouped under Capital Work-in-Progress till the projects/ mines are brought to revenue account. Except otherwise specifically stated in theproject report to determine the commercial readiness of the project to yield productionon a sustainable basis and completion of required development activity during theperiod of constructions, projects and mines under development are brought torevenue considering the following criteria:
(a) From beginning of the financial year immediately after the year in whichthe project achieves physical output of 25% of rated capacity as perapproved project report, or
(b) 2 years of touching of coal, or
(c) From the beginning of the financial year in which the value of productionis more than total expenses,
- Whichever event occurs first.
4.0 Prospecting & Boring and other Development Expenditure:
The cost of exploration and other development expenditure incurred in one “Five year”plan period will be kept in Capital work-in-progress till the end of subsequent two “Fiveyear” plan periods for formulation of projects, before it is written-off, except in the case ofBlocks identified for sale or proposed to be sold to outside agency which will be kept ininventory till finalisation of sale.
5.0 Investments:
Current investments are valued at the lower of cost and fair value as at the BalanceSheet date.Investments in mutual fund are considered as current investments.
Non-Current investments are valued at cost. However, when there is a decline, otherthan temporary, in the value of the long term investment, the carrying amount is reduced
to recognize the decline.
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WESTERN COALFIELDS LIMITED
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 realisable
value or cost whichever is lower.
6.1.1 Coal & coke fines are valued at lower of cost or net realisable value.
6.1.2 Slurry (coking/semi-coking), middling of washeries and by products are
valued at net realisable value.
6.2 Stores & Spares:
6.2.1 The closing stock of stores and spare parts has been considered in the accounts
as per balances appearing in priced stores ledger of the Central Stores and as
per physically verified stores lying at the collieries/units.
6.2.2 Stock of stores & spare parts (which also includes loose tools) at central &
area stores are valued at cost calculated on the basis of weighted average
method. The year-end inventory of stores & spare parts lying at collieries /
sub-stores / drilling camps/ consuming centres, initially charged off, are valued
at issue price of Area Stores, Cost / estimated cost. Workshop jobs including
work-in-progress are valued at cost. Similarly stock of stationary at printing
press and medicines at central hospital are valued at cost.
6.2.3 Stock of stationery (other than lying at printing press), bricks, sand, medicine
(except at Central Hospitals), aircraft spares and scraps are not considered in
inventory.
6.2.4 Provisions are made at the rate of 100% for unserviceable, damaged and
obsolete stores and at the rate of 50% for stores & spares not moved for 5
years.
7.0 Depreciation/ amortisation:
7.1. Depreciation on fixed assets is provided on straight line method on the basis of useful
life specified in Schedule II of Companies Act, 2013 except for assets mentioned below,
for which depreciation is provided on the basis of technically estimated useful life which
are lower than that envisaged as per schedule II of Companies Act, 2013:-
Telecommunication equipment :- 6 years and 9 years
Photocopying machine :- 4 years
Fax machine :- 3 years
Mobile phone :- 3 years
Digitally enhance cordless telephone :- 3 years
Printer & Scanner :- 3 years
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ANNUAL REPORT 2014-15
Earth Science Museum :- 19 yearsHigh volume respiratorydust samplers :- 3 yearsCertain equipment / HEMM :- 8 years, 7 years and 6 years as applicableSDL (equipment) :- 5 yearsLHD (equipment) :- 6 years
7.2 The residual value of all assets for depreciation purpose is considered as 5% of theoriginal cost of the asset except those item of assets covered under para 7.3
7.3 In case of assets namely Coal tub, winding ropes, haulage ropes, stowing pipes &safety lamps the technically estimated useful life has been determined to be oneyear with a nil residual value.
7.4 Depreciation on the assets added / disposed of during the year is provided on pro-rata basis with reference to month of addition / disposal, except on those assetswith one year useful life and nil residual value as mention under para 7.3, whichare fully depreciated in the year of their addition. These Assets are taken out fromthe Assets after expiry of two years following the year in which these are fullydepreciated.
7.5 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 leaseholdland is amortised on the basis of lease period of balance life of the project whicheveris earlier.
7.6 Prospecting, Boring and Development expenditure are amortised from the yearwhen the mine is brought under revenue in 20 years or working life of the projectwhichever is less.
7.7 Cost of Software recognized as intangible asset, is amortised on straight line methodover a period of legal right to use or three years, whichever is less; with a nilresidual value
8.0 Impairment of Asset:
Impairment loss is recognised wherever the carrying amount of an asset is in excess ofits recoverable amount and the same is recognized as an expense in the statement ofprofit and loss and carrying amount of the asset is reduced to its recoverable amount.
Reversal of impairment losses recognised in prior years is recorded when there is anindication that the impairment losses recognised for the asset no longer exist or havedecreased.
9.0 Foreign Currency Transactions:
9.1 Balance of foreign currency transactions is translated at the rates prevailing on theBalance Sheet date and the corresponding effect is given in the respective accounts.
Transactions completed during the period are adjusted on actual basis.
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WESTERN COALFIELDS LIMITED
9.2 Transactions covered by cross currency swap options contracts to be settled on
future dates are recognised at the rates prevailing on the Balance Sheet date, of
the underlying foreign currency. Effects arising out of such contracts are taken into
accounts on the date of settlement.
10.0 Retirement Benefits / Other Employee Benefits:
a) Defined contributions plans:
The company has defined contribution plans for payment of Provident Fund and
Pension Fund benefits to its employees. Such Provident Fund and Pension Fund
are maintained and operated by the Coal Mines Provident Fund (CMPF) Authorities.
As per the rules of these schemes, the company is required to contribute a specified
percentage of pay roll cost to the CMPF Authorities to fund the benefits.
b) Defined benefits plans:
The liability on the Balance Sheet date on account of gratuity and leave encashment
is provided for on actuarial valuation basis by applying projected unit credit method.
Further the company has created a Trust with respect to establishment of Funded
Group Gratuity (cash accumulation) Scheme through Life Insurance Corporation
of India. Contribution is made to the said fund based on the actuarial valuation.
c) Other employee benefits:
Further liability on the Balance Sheet date of certain other employee benefits viz.
benefits on account of LTA/ LTC, Life Cover Scheme, Group Personal Accident
Insurance Scheme, Settlement Allowance, Post-Retirement Medical Benefit Scheme
and compensation to dependants of deceased in mines accidents etc. are also
valued on actuarial basis by applying projected unit credit method.
11.0 Recognition of Income and Expenditure:
Income and Expenditure are generally recognised on accrual basis and provision is
made for all known liabilities.
11.1 Sales:
a) Revenue in respect of sales is recognised when the property in the goods with the
risks and rewards of ownership are transferred to the buyer.
b) Sale of coal are net of statutory dues and accepted deduction made by customer
on account of quality of coal.
c) The revenue recognition is done where there is reasonable certainty of collection.
On the other hand, revenue recognition is postponed in case of uncertainty as
assessed by management.
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ANNUAL REPORT 2014-15
11.2 Dividend:
Dividend income is recognised when right to receive is established.
12.0 Borrowing Costs:
Borrowing Cost directly attributable to the acquisition or construction of qualifying assets
is capitalised. Other borrowing costs are recognised as expenses in the period in which
they are incurred.
13.0 Taxation:
Provision of current income tax is made in accordance with the Income Tax Act., 1961.
Deferred tax liabilities and assets are recognised at substantively enacted tax rates,
subject to the consideration of prudence, on timing difference, being the difference
between taxable income and accounting income that originate in one period and are
capable of reversal in one or more subsequent period.
14.0 Provision:
A provision is recognised when an enterprise has a present obligation as a result of past
event; it is probable that an outflow of resources embodying economic benefit will be
required to settle the obligation, in respect of which a reliable estimate can be made.
Provisions are not discounted to present value and are determined based on best estimate
required to settle the obligation at the balance sheet date.
15.0 Contingent Liability:
Contingent liability is a possible obligation that arises from past events and the existence
of which will be confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the enterprise or a present
obligation that arises from past events but is not recognised because it is not probable
that an outflow of resources embodying economic benefit will be required to settle the
obligations or reliable estimate of the amount of the obligations can not be made.
Contingent liabilities are not provided for in the accounts and are disclosed by way of
Notes.
16.0 Overburden Removal (OBR) Expenses :
In open cast mines with rated capacity of one million tonnes per annum and above, cost
of OBR is charged on technically evaluated average ratio (COAL:OB) at each mine with
due adjustment for advance stripping and ratio-variance account after the mines are
brought to revenue. Net of balances of advance stripping and ratio variance at the Balance
Sheet date is shown as cost of removal of OB under the head Non - Current Assets/
Long Term Provisions as the case may be.
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WESTERN COALFIELDS LIMITED
The reported quantity of overburden as per record is considered in calculating the ratio
for OBR accounting where the variance between reported quantity and measured quantity
is within the lower of the two alternative permissible limits, as detailed hereunder:-
Annual Quantum of Permissible limits of varianceOBR Of the Mine I II
% 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% Nil
However, where the variance is beyond the permissible limits as above, the measured
quantity is considered.
17.0 Prior Period Adjustments and Prepaid Expenses:
Income / expenditures relating to prior period and prepaid expenses, which do not exceed
` 0.10 Crore in each case, are treated as income / expenditure of current year.
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ANNUAL REPORT 2014-15
WESTERN COALFIELDS LIMITED
NOTE-34
ADDITIONAL NOTES ON ACCOUNTS
1. BACKGROUND:
Western Coalfields Limited came into existence after Nationalization of Coal Mines andwas incorporated on 29th October, 1975 upon take-over of assets and liabilities as at1st November, 1975 vested with the Western Division of Coal Mines AuthorityLimited. The Company is 100% subsidiary of Coal India Ltd.
2. LONG TERM BORROWING:(Refer Note No-3)
SECURED LOAN : Nil. However, a charge has been created for ` 165 Crores oncurrent assets for securing working capital facility from CIL’s Consortium Banks as permodified Joint Deed of Hypothecation dated 01.09.2008. Further against approval ofCIL towards fund based facility, an amount for ` 30 Crores ( ̀ 30 Crores) was allocatedto WCL. This loan has, however, not been availed so far.
UNSECURED LOANS: Nil (Nil)
3. FIXED ASSETS : (Refer Note No-10A)
a) Since physical possession of land is obtained only after making payment to theland owners, Land acquired under various Acts including private negotiations,amounting to ` 305.98 Crores ( ` 44.17 Crores) are included in Fixed Assets, onthe basis of payments / compensation made as per approval of CompetentAuthorities pending final settlement .
b) DFD Plant and CBE Plant continue to remain inoperative during the year. LeaseholdLand of DFD Plant is being amortized over the lease period of 30 years. Otherassets of both these plants are carried in the books at a residual value of 5% oftheir cost.
c) Physical verification of Fixed Assets as on 31.03.2003 was done in all the Areas byfirms of Chartered / Cost Accountants and their reports were received. An outsideagency has done the reconciliation for inter-area and intra-area transfers and theirreport has been received during 2006-07. Most of intra-area and inter-areadiscrepancies were accounted in cases where items were physically identified. Forbalance some items the inter-area adjustment is under process.
d) Physical verification of Plant & Machinery valued at ̀ 1 lakh and above and Vehiclesis done by Management every year. However, Physical verification of assets valuingless than `1 lakh is done at Area / Unit level in a manner that all such assets atArea / Unit / Mine is covered once in three years as per policy of the Company.
e) Consequent to adoption of useful life as per Schedule II of the Companies Act,2013,read with significant Accounting policy (Ref Note-33 Point 7) the rate of depreciationare changed whereby useful life as per Companies Act,2013 translated into annual
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WESTERN COALFIELDS LIMITED
rate of depreciation per annum. For assets acquired prior to 01.04.2014 and carriedin the Balance sheet, the depreciation has been considered as per Note-7 (a & b)of Schedule II of the Companies Act,2013 and as per which an amount of ̀ 52.68Crores (net of Deferred Tax credit of ` 27.12 Crores ) have been charged againstopening balance of retained earnings towards shortfall of depreciation consequentupon change in useful life of assets.
f) Ballarpur Area Hospital was constructed in 2.83 Hectres of Mouza Dhoptala ofTribal land at a cost of ` 1.57 Crores in the year 2000. Physical possession of thesaid land was taken after memorandum of settlement entered in January,1998 withland owners (tribal). However,the sale deed for the said land is yet to be executedpending permission from the Government.
g) Cost of Asset as well as provision for depreciation on Surveyed off Assets aretaken out of the Gross Block and provision for depreciation respectively and theresidual value at 5% of Book Value are shown as a separate line item as Surveyedoff assets under Tangible Asset (Note 10A). In case of premature survey off, thedifference between the WDV and residual value of 5% is charged to Statement ofProfit and Loss, as loss on surveyed off assets.
Surveyed off assets amounting to ̀ 26.62 Crores ( ̀ 25.32 Crores) which is valuedat 5% residual value is lying in Stores. Since in the opinion of management, theexpected realisable value is more than the book value, the existing provision of ‘1.16 Crores is maintained and no further provision has been made.
4. CAPITAL WORK IN PROGRESS (CWIP) : (Refer Note No-10B)
CWIP pending since more than 3 years is ` 20.99 Crores ( ` 6.52 Crores).
5. LOANS AND ADVANCES (Ref. Note no.12&18)
The advances unadjusted since long to suppliers / contractors are ̀ 1.98 Crores (` 1.97crore) ref. Note No.18 and for capital works/ mobilisation advances are ̀ 0.92 crores(` 1.53 Crores), ref. Note no. 12. Full Provisions are appearing in the books of accounts
for the same.
6. OTHERS
a) Against the levy of 5% tax under “Madhya Pradesh Gramin Avsanrachana TathaSadak Vikas Adhiniyam, 2005 (MPGATSVA 2005), some consumers as well asWCL has moved to the Hon’ble High Court of Madhya Pradesh, Jabalpur andobtained interim relief. As per the interim order dated 15/02/2006 the Hon’ble HighCourt, Jabalpur had directed the Company not to deposit this tax to the StateGovernment but to keep in a fixed deposit. The matter was later dismissed by theJabalpur High Court in favour of MP Government. WCL has filed an SLP before theHon’ble Supreme Court and the matter is still sub judice. The Hon’ble SupremeCourt of India vide its order dated 02-08-2010 directed the Company to file itsreturns for all the years under protest as per MPGATSVA (2005). The Hon’ble
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ANNUAL REPORT 2014-15
Supreme Court directed the assessing officer under the Act to complete theassessments of returns filed by the Company. In compliance with the Supreme
Court directions, upto 31/03/2015 the assessing officers raised total demand of
` 433.71 Crores against the Company ( `370.58 Crores). As per legal advice full
amount of demand amounting to ` 433.71 crores has been paid up to 31.03.2015
and has preferred Appeals against the assessment orders / demand notes with
Competent Appellate Authority, Jabalpur and Bhopal.
An amount of ̀ 463.45 Crores ( ̀ 408.10 Crores) has been received from customers
on account of MPGATSVA tax and VAT/CST thereon upto 31/03/2015. After adjusting
` 433.71 Crores paid under protest, the balance amount is kept in term deposit of
which ̀ 25.74 Crores has been deposited upto 31st March 2015 and balance ̀ 4.27
Crores has been deposited in April’2015. The matter is pending before the Hon’ble
Supreme Court and Appellate Authority Jabalpur .The cumulative interest accrued
on fixed deposits made on this account is added to liability.
b) Pending decision of Hon’ble Supreme Court of India ` 4.52 Crores (` 4.52 Crores)
being interest on delayed payments on account of enhancement of rate of royalty
on coal, collected from customers in the earlier years, continued to appear in account
‘Advance & Deposits from Customers’ under the head “Current Liabilities”.
c) By virtue of enactment of Cess and Other Taxes under Mineral Validation Act, 1992,
the Company raised supplementary bills on customers’ upto 4.4.1991. An amount
of ` 2.96 Crores
(` 2.96 Crores) has been shown as liability for Cess on Royalty under the head
Current Liabilities & Provisions. Against the judgment of Hon’ble High Court,Patna,
Ranchi Bench in favour of the Company, a Special Leave Petition is pending in
Supreme Court .
d) The Company had approached MSRDC to construct a bridge over Wardha Rivernear Nakoda in Wani Area to reduce the lead for coal transportation between the
mines of Wani Area and Railway Siding at Wani. An agreement was entered intowith MSRDC on 23.12.1997 for construction of the bridge and a loan of ` 2.35Crores was agreed to be given by WCL to MSRDC. Against this a loan of `1.13Crores, carrying a simple interest @ 9% p.a. was given to MSRDC in 1997-98. Thebridge is currently being used to transport coal across Wardha River. The loan is tobe repaid by MSRDC after repayment of its other loans. However, till date no amount
is repaid by MSRDC. The remaining amount of loan of ` 1.22 Crores has not beenreleased as WCL wants to establish a time bound schedule for repayment of theloan and interest thereon. Negotiations have been initiated with MSRDC for thispurpose.
Since the principal amount of advance is doubtful, necessary provision for ` 2.14
Crores (including interest accounted for as income up to 31.3.2010 of ̀ 1.01 Crores)exists as on 31.03.2015. In view of this, since the year 2010-11, the interestamounting to ` 0.10 Crores per year on this advance has not been recognised asincome.
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WESTERN COALFIELDS LIMITED
e) Report of the Tripartite Committee, comprising of Subsidiary/Mine Management,CMPDIL and Explosive Manufacturers, set up to finalise the benchmark powderfactor of each mine for the period from April’05 to July’06, is still awaited. It hasbeen decided by CIL that Subsidiary Management shall review the impact ofconsidering the powder factor of 2003-04 and 2004-05, whichever is higher vis-à-vis actual achieved during 2005-06 and submit the Company’s view through CMDto CIL. This review is yet to be finalized. As such no recovery has been made frombills for supply of explosives during that period. Pending finalization of the issue,the Bank Guarantees submitted by the suppliers is not released by CIL. Subsequentsupplies are covered by new rate contracts which specify that recovery on accountof powder factor is to be adjusted after final powder factor reports are received fromthe Areas on quarterly basis. Pending receipt of final reports for quarter endingMarch 2015 the deduction of ` 2.98 Crores (`2.74 Crores) during current year isappearing as a liability. Accordingly, the expenditure on account of explosiveconsumption has not been adjusted since the amount is not ascertainable.
f) During the year 1993-94 a suspected fraud case was detected at Nandgaon Inclineof Chandrapur Area, quantified by the Internal Audit Department to the tuneof ` 0.12 Crores and the same is under CBI investigation. An amount of ` 0.02Crores has been 3 recovered from the party and the balance recoverable figure ismatched with a similar provision.
g) During the year 1995-96, a theft case at CWS Stores was suspected and policecomplaint was lodged. During the course of departmental enquiry many kardexwere seized / taken out for investigation. Pending final outcome of the enquiry, theworkshop continues to maintain a provision of ` 0.14 Crores.
h) During the year 2013-14, a suspected fraud case was detected at Wani North Areain which M/s BNS-KBS Infra JV (a Contractor) committed fraud on the Company bysubmitting a fake Bank Guarantees for `1.46 Crores on dt 16.01.2013 from KarurVyasya Bank, Nagpur towards performance securities against Tender Notice No.16/2012-13 dt 26.07.2012 for HOE contract at Ghonsa OC of Wani North Area. Onverification, the Bank Guarantee was found to be fake and the contract wasterminated on dt 25.11.2013 after lodging FIR on dt 26.09.2013 and civil suit is filedfor ̀ 6.14 Crores against the said Contractor.
i) In case of land in Chandrapur / Ballarpur / Wani / Nagpur Areas , a commonjudgement was pronounced on 05.01.2009 by Hon’ble Bombay High Court in Non-Agricultural assessment cases. Accordingly, there is a contingent demand of landrevenue, ZP/GP Taxes and additional taxes for the period from 1980 to 2009 to thetune of ` 62.04 Crores. However, the Company has filed a Special Leave Petitionbefore the Divisional Bench of Bombay High Court, on behalf of the Areas on theground that such taxes are not payable on lands acquired under Coal Bearing AreaAct.
j) The Company had preferred appeals in cases of Income Tax and Sales Tax / VAT /
MPVAT assessments completed. Pending decision, no provision has been
considered necessary and the amount paid / recoverable is being continued to be
kept under Loans and Advances / Claims Receivables.
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ANNUAL REPORT 2014-15
k) The Rate Contracts (RC) for supply of explosives by different suppliers expired on
28th February, 2006 and pending renewal of the RCs the suppliers were asked to
continue the supplies at the same rates as prevalent in the expired RC, subject to
the condition that such extended period supplies would be governed by the rates
as fixed in the new RC. This continued upto 28th July, 2006.
The new RC was finalised and came into effect from 29th July, 2006 with a reduced
price of the explosives. As a result, the supplies during the extended period of the
earlier RC was found to be supplied at a higher price than actually applicable.
Hence recovery of excess amount paid was made from the suppliers.Against the
above recoveries, some of the suppliers filed a Civil Suit before Hon’ble Calcutta
High Court. The Hon’ble High Court of Calcutta granted stay in December 2006 for
recovery and directed CIL to stop such recovery of excess payments. Accordingly
CIL directed WCL to refund the amount deducted from the six suppliers. The Hon’ble
High Court of Calcutta asked these suppliers to deposit the disputed amount in
question in an account with the Joint Receiver appointed by the Hon’ble High Court.
As the suppliers having failed to do so, the Hon’ble Calcutta High Court in July
2008 vacated the stay of recovery of excess payment made to such suppliers.
Hence, CIL directed WCL to restart the recovery of such amount from the running
bills of the suppliers as per directives of Court, an amount of ` 2.58 Crores is
recovered and kept in the books under a separate liability account since 2008-09,
pending final disposal of the case by the Court.
l) Prospecting Boring and Development expenses amounting to ̀ 23.56 Crores (`13.35
Crore) along with provision for depreciation have been taken out from accounts
during the year after expiry of two years, following the year in which these are fully
amortized.
m) Impact of e-auction for the year 2014-15 is as follows:
` in crores
n) In respect of termination of contract awarded to M/s S.T.Construction Pvt Ltd. JV
Sivaswathi Construction Pvt Ltd. with consequent levy of penalty and confiscating
of equipment’s deployed by the contractor in previous year the party has obtained
interim relief from the Court. Further during the year in similar case of termination
of the contract of M/s B.Himmatlal Agrawal, WCL Board has imposed
maximum penalty of 10% amounting ` 3.00 Crores on total contract value of `
30.03 Crores .
o) In the absence of notification of rules by the Central / State Governments the
effects of the provisions of the Mines and Minerals (Development and Regulation)
Amendment Act,2015 has not been considered in the Accounts.
Impact of E-auction
Net Sales 400.23Taxes / levies 107.07
Gross Sales 507.30
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WESTERN COALFIELDS LIMITED
p) The position of major provisions as on 31st March 2015 are given below:
(`in Crores)
7. COMPLIANCE WITH MANDATORY ACCOUNTING STANDARDS:
i. Employee Benefits under AS-15 :
Terminal benefits : VRS benefits are recognized in the books in the year of occurrence.
Table showing movement in Actuarial valuation of Gratuity, Leave En-cashment and other
Employee benefits.
(` Crores)
Actuarial Valuation as on 31.03.2015Actuarial Valuation as on 31.03.2014
Net Incremental Liability for C.Y.Add : Reduction in Fund due to
disbursement during C.Y.Less : Addition to Fund by Interest
earned in C.Y.Less Addl Payment in C.Y.
Total Charge to Statement of Profitand Loss
Total Premium for Life Cover for C.Y.
2 2 4 7 . 2 62 2 1 8 . 9 4
2 8 . 3 22 7 6 . 1 0
1 9 8 . 4 2
‘11 0.05
1 0 5 .9 5
7 .43
G R AG R AG R AG R AG R AT U I T YT U I T YT U I T YT U I T YT U I T Y
(FUNDED(FUNDED(FUNDED(FUNDED(FUNDED
L E AL E AL E AL E AL E AV EV EV EV EV E
E N C A S H M E N TE N C A S H M E N TE N C A S H M E N TE N C A S H M E N TE N C A S H M E N T
(UNFUNDED)(UNFUNDED)(UNFUNDED)(UNFUNDED)(UNFUNDED)
LLTC/LTA/ LIFE COVER/
SETTLE- MENT ALL./MEDICAL/FATAL ACCI-
DENT COMP. &ACCIDENTAL
INS.(UNFUNDED)
‘245.59254.61
-9.02
464.43427.53
36.90
The total charge on account of gratuity to statement of Profit & loss during the isRs. 105.95 crores (Rs. 26.13 crores)
SL.SL.SL.SL.SL. PRPRPRPRPROOOOOVISIONSVISIONSVISIONSVISIONSVISIONS OpeningOpeningOpeningOpeningOpening AdditionalAdditionalAdditionalAdditionalAdditional Payment/WritePayment/WritePayment/WritePayment/WritePayment/Write ClosingClosingClosingClosingClosing
No.No.No.No.No. Balance as onBalance as onBalance as onBalance as onBalance as on DuringDuringDuringDuringDuring back/adj.back/adj.back/adj.back/adj.back/adj. BalanceBalanceBalanceBalanceBalance
01.04.201401.04.201401.04.201401.04.201401.04.2014 2014-152014-152014-152014-152014-15 During 2014-15During 2014-15During 2014-15During 2014-15During 2014-15 as onas onas onas onas on
31.03.201531.03.201531.03.201531.03.201531.03.2015
i For proposed Dividend 134.29 188.06 134.29 188.06
ii For Corporate dividend tax 22.82 37.60 22.82 37.60
ii For Gratuity (as per actuarial value) 10.72 105.95 10.72 105.95
iv For Leave encashment (Actuarial) 427.53 36.90 - 464.43
v For post - retirement medical ‘121.78 (2.58) 1.58 117.62
benefits (Actuarial)
vi For other Employee benefits 262.53 21.39 - 283.92
vii For Income Tax 883.21 242.33 12.71 1112.83
viii OBR Adjustment Account 2313.94 15.97 - 2329.91
ix Provision for Mine closure 695.86 271.84 - 967.70
x Bad & Doubtful Debts 79.71 4.10 - 83.81
xi Provision for doubtful 12.16 - 0.63 11.53
advances and claims
xii CWIP 9.36 0.14 0.24 9.26
xiii Other Provisions- Impairment 103.16 0.86 0.76 103.26
of Fixed Assets
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ANNUAL REPORT 2014-15
The incremental liability based on actuarial valuation as certified by the Actuary for
retired employees Post-Retirement Medical Benefit amounting to (-) `̀̀̀̀ 6.84 Crores has
been provided in the accounts.
From the financial year 2012-13 in addition of actuarial valuation of Post-Retirement
Medical Benefits of retired employees, the actuarial valuation of medical benefits for
existing employees has also been taken into consideration. The total actuarial valuation
for medical benefits as on 31.03.2015 has been assessed by Actuary at ̀̀̀̀̀ 54.86 Crores.
Necessary provisions has been made in accounts after adjustment of provisions made
at Areas & Hq.@4% of basic plus DA of executives to maintain the actuarial value at `
54.86 Crores as on 31.03.2015..
The following disclosures are made in accordance with AS-15 (Revised) pertaining to
the Gratuity (Funded Plan) :
Changes in Present Value of Obligations (`in Crores)
As at 31.03.2014 As at 31.03.2015Present Value of Obligation at beginning of the year 2270.78 2218.94
Interest Cost 181.33 166.46
Current Service Cost 99.52 105.46
Benefits paid 275.05 276.41
Actuarial gain/loss on obligations -57.64 32.81
Present value of Obligation at end of the year 2218.94 2247.26
Changes in Fair Value of Plan Assets ( ` in Crores)
As at 31.03.2014 As at 31.03.2015Fair Value of Plan Asset at beginning of the year 2062.09 2208.22
Expected Return on Plan Asset 175.28 176.66
Contributions‘ 224.10 ‘111.07
Benefits paid 275.05 276.40
Actuarial gain/loss on Plan Asset ‘21.80 ‘21.76
Fair Value of Plan Asset at end of year 2208.22 2141.31
Funded Status (` in Crores)
As at 31.03.2014 As at 31.03.2015Present value of obligation at end of the year 2218.94 2247.26
Fair Value of Plan Asset at end of the year 2208.22 2141.31
Funded Status -10.72 -105.95
Unrecognised actuarial gain/loss at end of the year 0 0
Net Asset (Lia.) recognized in Balance Sheet -10.72 -105.95
Expense recognized in Statement of Profit & Loss ( ` in Crores)
As at 31.03.2014 As at 31.03.2015
Current Service Cost 99.52 105.46
Interest Cost 181.33 166.46
Expected Return on Plan Asset 175.28 176.66
Actuarial gain/loss recognized in the year -79.44 11.05
Expense recognized in Statement of Profit/Loss 26.13 106.31
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WESTERN COALFIELDS LIMITED
Movements in Liability recognised in Balance Sheet ( ` in Crores)
As at 31.03.2014 As at 31.03.2015
Opening Net Liability 208.69 10.72
Expenses as above 26.13 106.31
Contributions ‘224.10 ‘11.08
Closing Net Liability 10.72 105.95
Closing Fund/Provision at end of year 2218.94 2247.26
Summary of Actuarial Assumptions
In 2013-14 In 2014-15
Discount rate 8.50% 8.00%
Inflation rate 6.25% 6.25%
Mortality rate IALM/ 2006 -08/ IALM/ 2006 -08/
Ultimate Ultimate
Attrition rate 10 per thousand p. a. 10 per thousand p. a.
Formula used Projected Unit Projected Unit
Credit Method Credit Method
The provision made during the year for pension and superannuation benefit of Executives
has not been done on the basis of actuarial valuation.
ii Segment Reporting under AS-17 :
The Company has two business segments, viz. Collieries and Washery. Since the
revenue/ profit/assets of the Washery is less than 10% of the total revenue/profit/
assets of the Company, the Washery is not a reportable segment under AS-17. The
operations of the Company are confined to Central India, hence no geographical
segments are identified.
iii Related Party Disclosure as required under AS-18 :
1. KEY MANAGEMENT PERSONNELS:
SHRI R.R.MISHRA CHAIRMAN CUM MANAGING DIRECTOR(w.e.f. 11.10.2014)
SHRI D.C. GARG CHAIRMAN CUM MANAGING DIRECTOR(upto 17.06.2014)
SHRI OM PRAKASH DIRECTOR (TECH)-OPERATION(Acting CMD upto 08.10.14)
SHRI RUPAK DAYAL DIRECTOR (PERSONNEL)
(Acting CMD from 09.10.14 to 10.10.14)
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ANNUAL REPORT 2014-15
`
SHRI S.S.MALHI DIRECTOR (TECH)-PROJECT & PLANNING
SHRI RAMEHER COMPANY SECRETARY
2. Related Party Transaction: ( `̀̀̀̀ in Crores)
2014-15 2013-14
1 Remuneration:
Gross Salary 0.67 1.02
Employer’s contribution to PF 0.10 0.12
Gratuity ‘0.10 0.10
Leave Encashment on retirement 0.28 0.19
2 Medical Reimbursement 0.05 0.05
3 Sitting fees paid to Independent Directors 0.00 0.06
4 Year-end balance of Advances* 0.60 0.70
*Lump sum recoverable advance Rs.0.60 crore paid in the year 2011-12, calculated at
75% of Performance Related Pay (PRP) payable to CMD and other whole time individual
Directors for the years 2007-08 to 2010-11.
The gross salary (remuneration as stated above) does not include the value of perquisites
like medical facility provided for in the Company hospital, the provisions for contribution
to Gratuity, Leave encashment and other employee benefits, which are made on the
basis of actuarial valuation.
House rent, electricity etc. are charged from C.M.D and full time Directors’ as per
Companies Rule applicable to the executives.
The Chairman-cum-Managing Director and full time Directors have the option to use the
staff car for purposes other than official duty upto a ceiling of 750 km per month, on
payment of concessional rate, in accordance with the provisions of Governmentof India,
Ministry of Finance, Bureau of Public Enterprises O.M. No. 2(18)/PC-64 dated 20th
November,1964 as amended from time to time.
Sitting fees of `̀̀̀̀ 15000/-per meeting of the Board and `̀̀̀̀ 15000/- per meeting of the
committee of the Board is payable to the non–official Part Time Directors/Independent
Directors.
3. In view of the exemption granted to State controlled enterprises as regards related partyrelationship with other State controlled enterprises and there being no transaction withother related enterprises & parties, no disclosure under the Accounting Standard (AS-18) on Related Party Disclosures is made, being not applicable for the Company.
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WESTERN COALFIELDS LIMITED
iv. Disclosure of Earning per Share as required under AS-20 :
Particulars Current Year Previous Year
i) Profit After Tax (`̀̀̀̀ Crores) 313.14 ‘22223.58
Less : Preference Dividend 0.00 0
ii) Profit attributable to Ordinary 313.14 ‘222223.58
Shareholders (`̀̀̀̀ Crores)
iii) Ordinary Shares (in Nos.) for basic and 29,71,000 29,71,000
diluted EPS
iv) Nominal value of Ordinary Shares (`̀̀̀̀) ‘ 1000.00 ‘ 1000.00
v) Basic & Diluted Earnings per Ordinary Share (`)`)`)`)`) 1053.99 752.54
v. Accounting for Taxes on Income under AS-22
The deferred tax asset as required under AS-22 comprises of the following:
( `̀̀̀̀ in Crores)
DEFERRED TAX ASSETS/LIABILITY
Deferred Tax Deferred TaxAsset Liability as Asset / Liability as
on 31.5.2015 on 31.03.2014
A Deferred Tax Liabilities- Depreciation 23.27 65.53
B Deferred Tax Assets
VRS 0.02 0.21
Statutory Dues 6.22 5.54
Provision for Doubtful Debts 28.49 27.09
Provision for Doubtful Advances 1.87 2.08
Provision for Leave Encashment 157.86 145.32
Provision for Obsolescence/ workshop WIP 8.47 8.28
Provision for Claims 2.05 2.05
Provision for Shortage of Stores 0.39 0.52
Land Reclamation Provision 0.00 ‘0.00
Disallowance u/s 40(a) of I.Tax Act 3.90 10.17
PLRS / PLBS & PRP 135.06 162.67
MP Gramin Tax 6.60 10.02
Actuarial provision for other employee benefits 136.47 130.62
TOTAL 487.40 504.57
Deferred Tax Assets (net) (B-A) 464.13 439.04
vi Consequent to mandatory provisions of AS-24 relating to Discontinuing
Operations w.e.f. 01.04.2004, the following disclosures are made:
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ANNUAL REPORT 2014-15
a) Commercial Blast Explosive (CBE) Plant, Bhandara : The Plant used to
manufacture Nitro-Glycerine based Permitted Explosives used in the underground
mines of the Company till its closure on 28.04.2003. Consequent upon decision of
the Government of India to discontinue / ban production of NG-based explosives in
the country and its adoption by the Board of Ordnance Factories of India, the Jt.
Venture partner of the Plant, the Plant was closed.
CIL had given its approval for disposal of the Plant and the Company in its 197th
Board Meeting held on 19.04.2006 had approved the disposal of P&M by
tendering / e-auction and accordingly the P&M along with related stores & spares
have been disposed of during 2006-07 by auction through MSTC. The Net
Block of assets pending disposal is `̀̀̀̀0.08 Crores.The liability towards Overheads
after closure of the Plant till 31.03.2015 for maintenance and upkeep of the Plant is
`̀̀̀̀ 0.37 Crores.
Since there are no operation at plant, there is no revenue or expenses and as such
no Profit or Loss and cash outflow for the year ( `̀̀̀̀ NIL)
b) Domestic Fuel Development Plant(D.F.D.P), Hinganghat :The Plant used to
manufacture Coal Briquettes from raw coal for domestic fuel purposes. Consequent
upon non-viability of the Plant as per the decision of the Board of the Company, the
Plant was closed in 1994.
The disposal of the Plant is under process. The Net Block of assets pending disposal
is `̀̀̀̀0.03 Crores and the liability towards Municipal Taxes is `̀̀̀̀ 0.05 Crores The
Company has applied to the Hinganghat Nagar Palika for waiver of the Municipal
Taxes for the past years on the ground that the Plant is no more in operation. The
revenue expenses incurred during the current year is ̀̀̀̀̀ 0.01 Crores ( ̀̀̀̀̀ 0.01 Crores).
Since the Plant is in-operative, there is no cash outflow attributable to operating,
investing and financing of discontinuance.
Vii. Impairment of Assets : AS-28 :
The Company regularly assesses, at each balance sheet date the impairment of
assets if there is existence of any of the six external and internal indications
prescribed, on each Balance Sheet date.
In case of Land and Building, there is universally upward trend in
Valuation.Unless,there is damage to building, the company does not make any
provision for land and building. Similarly, in case of Plant and Machinery and HEMM
there is no downward trend, hence no impairment is recognised unless Asset is
obsolete or damaged.
In respect of prospecting & Boring and Development Expenses in continuous loss
making mines, have been considered for impairment, provided there is no clear
indication for its revival in near future.
During the Current Year an amount of ̀̀̀̀̀ 0.96 Crores has been charged to Statement
of Profit and Loss as impairment loss against P & B, Development Expenditure
(DE) and Plant & Machinery (`̀̀̀̀4.43 Crores)
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WESTERN COALFIELDS LIMITED
viii. Provisions, Contingent Liabilities and Contingent Assets AS-29
As per directives of Coal India Ltd. provision for Mine Closure is made on the basis
of guidelines of Ministry of Coal circulated vide letter no. 55011 / 1 / 2009 - CPAM
dated 27.08.2009 based on which the Mine closure plan(MCP) for 76 Mines was
submitted by CMPDIL and approved by WCL Board
Against this a provision of `̀̀̀̀ 271.84 Crores ( `̀̀̀̀131.41 Crores) inclusive of `̀̀̀̀ 64.82
Crores towards accrued interest on MCP Escrow Accounts has been done during
the current year ending on 31st March,2015. Cumulative provision as on 31st March,
2015 is ̀̀̀̀̀ 967.70 Crores inclusive of accumulated accrued interest of ̀̀̀̀̀ 80.15 Crores
( `̀̀̀̀695.86 Crores including accumulated accrued interest of ̀̀̀̀̀ 15.33 Crores).
During the current year new MCP Escrow Accounts for 4 mines were opened against
mine closure plan as submitted by CMPDIL and duly approved by WCL Board. As
per such approval no provision is required during the current year and only to keep
those account operative an amount of `̀̀̀̀0.02 Crores deposited within 31st
March’2015. Thus balance in MCP Escrow Account as on 31.03.2015 is `̀̀̀̀ 967.72
Crores including accrued interest of `̀̀̀̀ 80.15 Crores.
8. CONSISTENT METHOD OF ACCOUNTING :
As per consistent policy of the Company, the following methods of accounting continue :
a) Accrual basis of accounting has been followed except in the following cases:
i. Liquidated damages,interest on delayed payment and escalation claims
from Customers on the basis of final settlement.
ii. Insurance / Railway claims on admission/final settlement.
iii. Scraps are accounted for on realisation.
iv. Refund / adjustment consequent to assessment of tax from Tax authorities
excepting Input Tax Credit claim of VAT are accounted for on cash basis.
Additional demand of Income Tax, Royalty, Cess, Sales Tax, Entry Tax, etc.
are accounted for after final order in appeals, pending such appeal payment
made against additional demand are treated as Advance / Claims.
b) Revenue Recognition: Sales
Bonus claims on customers, as a result of Joint Sampling are accounted for
in sales in the year of settlement irrespective of period of dispatch. Credit
Sales are recognised based on date of D-Note (Forwarding Note to Railways)
and Cash Sales are recognised upto dispatches as of 24:00 hrs. on each
reporting date.
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ANNUAL REPORT 2014-15
c) Foreign Currency Transactions:
Foreign Exchange differences arising on accrual/repayment of liabilities incurred for the
purpose of acquisition of fixed assets are adjusted in the reported currencies by applying
the closing rate.
Foreign exchange fluctuations are accounted in the reported currencies by applying the
closing rates. The effects of changes in foreign exchange rate are charged to the Statement
of Profit and Loss as per AS-11(Revised) effective from 1.4.2004.
d) Captive consumption of coal is valued at basic price of declared grade of coal of the
related mines.
e) Production of Coal is derived from records of dispatches billed, internal
consumption,opening and closing stock .
f) 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.
g) Apex Office Charges and Interest to Holding Company.
i. Apex office charges as charged by Holding Company are allocated to revenue
mines on the basis of coal production.
ii. Interest on loans from CIL is accounted for as per terms of loan agreement. Interest
is allocated to the units on the basis of Gross Fixed Assets(excluding the Assets
procured against specific loan) at the beginning of the year
iii. CIL has been levying additional Apex Charges @ `̀̀̀̀ 6.00 per ton of coal dispatch
to meet the rehabilitation & firefighting expenses of Jharia and Raniganj areas of
BCCL / ECL. An amount of `̀̀̀̀ 24.75 Crores ( `̀̀̀̀ 23.97 Crores) has been charged to
P&L A/c on this account.
9. CHANGE IN ACCOUNTING POLICY
During the year the Company has changed its Accounting Policy relating to accounting
of payment of one time compensation in lieu of employment on acquisition of land
whereby, the amount so paid is now capitalised instead of treating as expenditure.Due
to this change the profit for the year is higher by `̀̀̀̀16.94 Crores (net of increase in
Depreciation of `̀̀̀̀ 0.50 Crores) with corresponding increase in value of fixed asset by
`̀̀̀̀ 17.44 Crores.
159
WESTERN COALFIELDS LIMITED
10 MISCELLANEOUS:
a) Letter for balance confirmation as on 31st March,2015 is sent to the sundry creditors,
the confirmation of which is not yet received. In respect of balance confirmation as
on 31.03.2014 the reconciliation is in process, whereever necessary.
b) Joint reconciliation with major Sundry Debtors is done periodically. Joint reconciliation
with power house like MSPGCL,MPPGCL,KPCL AND SAIL has been completed
up to interim period of 2014-15 .
c) Figures of previous year have been regrouped / rearranged wherever necessary.
Figures in bracket relates to previous year.
d) Notes 1 to 32, Significant Accounting Policies and Additional Notes on Accounts in
Notes 33 & 34 form integral part of these accounts.
CA A.M.MARATHE
General Manager
(Finance)
RAMEHER
Company Secretary RUPAK DAYAL
Director (Personnel)
(DIN 05105263)
R.R.MISHRA
Chairman-cum-Managing
Director
(DIN 05103300)
As per our report of even date
FOR V.K. SURANA AND CO.Chartered Accountants
(FRN. 110634 W)
CA. SUDHIR SURANAPARTNER
(M.No. 43414 )
PLACE : Nagpur
DATE : 23rd May 2015
160
ANNUAL REPORT 2014-15
WESTERN COALFIELDS LIMITED
NOTE 34 (A)NOTES PROVIDING STATUTORY INFORMATION
1. CONTINGENT LIABILITIES
Claims against the Company not acknowledged as debts as on 31st March, 2015 amounting
to ̀ 4750.29 Crores (`4123.11 Crores), includes:
a) Claims under Income Tax, Sales Tax, Service Tax and other Acts:
i. Demand notices from Income Tax authorities for ` 985.25 Crores towards
Corporate Tax and ̀ 2.22 Crores towards Tax on perquisites to employees.
ii. Demand notices from Income Tax authorities for ` 6.45 Crores under section 194J
of the Income Tax Act. 1961.
iii. Demand raised by District Revenue Authorities on account of Surface Rent
` 83.70 Crores and Non-Agricultural Assessment Tax of ` 64.02 Crores, Cess on
Royalty ` 0.58 crores, Central Excise Duty Demand A/C Royalty/SED ` 2448.19
Crores, Gram Panchayat Tax ̀ NIL crores.
iv. Demands raised by Sales Tax Authorities on account of Sales Tax amounting to
` 285.69 Crores.
v. Demands raised by Sales Tax Authorities on account of Entry Tax amounting to ̀ 117.05
Crores on HEMM and ̀ 2.54 Crores on coal.
vi. Demands raised by Service Tax Authorities on account of Service Tax amounting to
` 230.94 Crores.
b) Claims other than those under Income Tax, Sales Tax, Service Tax and other Acts:
i. Claims for enhanced compensation by land owners amounting to ̀ 105.95 Crores.
ii. Claims by employees towards remuneration related cases amounting to ̀ 11.04 Crores.
iii. Claims by Contractors and others pending decision by Arbitration/ Courts ̀ 171.70 Crores.
iv. Claims by customers ` 234.88 Crores.
v. Claims by Railways for Siding Maintenance Charges ̀ 0.09 Crores
vi. There are claims by employees and others where the amounts are not specified. In
some cases interest has been claimed. However as the amounts are not specified, the
contingent liability is not ascertainable.
c) The Competition Commission of India (CCI), on the basis of complaints by few coal customers
(called as ‘informant’ in the case) against certain conducts of M/S, Coal India Limited, M/S,
Western Coalfields Limited, M/S South Eastern Coalfields Limited, M/S, Mahanadi Coalfields
Limited (called as ‘opposite party’ in the case) heard the case and vide its order dated
09.12.2013, has inter-alia imposed a penalty of ̀ 1773.05 crore.
The appeal against the above order is filed with Competition Appellate Tribunal and as per
their directives dated 26/02/2014 a token penalty of ̀ 50 crore is deposited by CIL and kept
as deposit (under protest) in the books of CIL. The penalty of ` 1773.05 crores, under
appeal, is shown as contingent liability in the books of CIL. No separate Contingent liability
is shown by WCL.
d) Letters of Credit and Bank Guarantees:
i. Letters of Credit outstanding as on 31st March, 2015 amounting to ̀ 0.56 Crores.
( ` 1.51 crores)
161
WESTERN COALFIELDS LIMITED
ii. The Company has issued Bank Guarantees amounting to ̀ 4.73 Crores (` 4.70 Crores)
in favour of Maharashtra Pollution Control Board and others.
2. CAPITAL AND REVENUE COMMITMENT:
The estimated amount of contracts remaining to be executed on Capital Account and
Revenue Account and not provided for in the Accounts `978.44 Crores (` 345.49 Crores)
and ̀ 1253.02 crores (`925.12 crores) respectively.
3. DETAILS OF OPENING STOCK, PRODUCTION, TURNOVER AND CLOSING STOCK:
(A) COAL :
OPENING STOCK:For the Year Ended
on 31.03.2015
Qty ‘000 MT Value ` Crores Qty ‘000 MT Value ` Crores
Raw Coal 5600.31 651.10 5816.47 570.97
Washed Coal 2.46 0.87 0.43 0.20
Middling 0.68 0.11 1.01 0.15
Slurry 95.90 11.40 111.28 13.23
Development Mine 0.00 0.00 0.00 0.00
TOTAL 5699.35 663.48 5929.19 584.55
PRODUCTION:
Raw Coal 41077.74 39729.32
Washed Coal 72.68 120.05
Middling 71.36 88.87
Slurry *105.18 21.11
Development Mine 69.00 0.00
TOTAL 41395.96 39959.35
DESPATCH
Raw Coal 41090.52 7251.12 39710.00 6545.34
Washed Coal 74.71 37.31 118.01 47.70
Middlings 72.03 11.26 89.20 14.16
Slurry Coal 112.18 25.71 36.49 6.63
Development Mine 0.00 0.00 0.00 0.00
TOTAL OUTSIDE DESPATCH 41349.44 7325.40 39953.70 6613.83
Internal Consumption 6.25 1.74 6.69 1.36
Issued for Process in Washery 149.45 29.20 228.80 34.41
TOTAL DESPACTH 41505.14 7356.34 40189.19 6649.60
CLOSING STOCK :
Raw Coal 5431.83 643.00 5600.31 651.10
Raw coal Excess- Wani siding 0.87 0.13 0.00 0.00
Net Raw coal 5432.70 643.13 5600.31 651.10
Washed Coal 0.43 0.24 2.46 0.87
Middling 0.01 0.00 0.68 0.11
Slurry 88.90 18.13 95.90 11.40
Development Mine 69.00 6.99 0.00 0.00
TOTAL 5591.04 668.49 5699.35 663.48
*Slurry coal to the tune of 93939 tonnes recovered from Nandan washery sewage, the same is
included in production figure
Previous Year(2013-14)
162
ANNUAL REPORT 2014-15
Notes:1) Production figures are derived from records of dispatches, internal consumption etc.,
and adjustments for opening and closing stock of Coal.
2) Opening and Closing stock of Raw Coal includes coal of 216.210 Metric tonne of DFDP,
Hinganghat
(B) BRIQUETTE AT DOMESTIC FUEL PLANT, HINGANGHAT :For the Year Previous Year
Ended on 31.03.2015 (2013-14)
Qty MT Value ` Crores Qty MT Value `Crores
Opening Stock 58.00 0.0032 58.00 0.0032
Production 0.00 0.0000 0.00 0.0000
Turnover 0.00 0.0000 0.00 0.0000
Internal Consumption 0.00 0.0000 0.00 0.0000
Closing Stock 58.00 0.0032 58.00 0.0032
4. C.I.F. VALUE OF IMPORTS:
Components, Stores & Spare Parts 3.28 9.11
Expnenditure incurred through Holding Company,
Coal India Limited 1.22 4.29
TOTAL 4.50 13.40
5. VALUE OF THE IMPORTED & INDIGENOUS STORES AND SPARE PARTS CONSUMED:
( `̀̀̀̀ in Crores) % (`̀̀̀̀ in Crores) %
Imported 3.51 0.31 12.71 1.11
Indigenous 1142.01 99.69 1131.11 98.89
TOTAL 1145.52 100.00 1143.82 100.00
6. EXPENDITURE IN FOREIGN CURRENCY:
( ` in Crores) ( ` in Crores)
i) Travelling 0.05 0.12
ii) Others 4.37 0.89
TOTAL 4.42 1.01
Previous Year(2013-14)
For the YearEnded on 31.03.2015
Previous Year(2013-14)
For the YearEnded on 31.03.2015
Previous Year(2013-14)
For the YearEnded on 31.03.2015
WESTERN COAL FIELDS LIMITED( A MINI RATNA COMPANY)
(A SUBSIDIARY OF COAL INDIA LIMITED)
31.03.2015 31.12.2014 31.03.2014 31.03.2015 31.03.2014
Unaudited Unaudited Unaudited Audited Audited
1 Income from operations
(a) Net Sales/Income from Operations (Net of excise duty) 1,994.34 1,804.33 2,023.08 7,325.39 6,613.83
(b) Other Operating Income (Net of excise duty) 57.71 55.44 61.09 223.13 160.08
Total income from operations (net) 2,052.05 1,859.77 2,084.17 7,548.52 6,773.91
(a) Cost of materials consumed 340.93 291.01 378.39 1,149.93 1,143.82
(b) Change in inventories of finished goods, WIP and stock in trade (139.59) (30.75) (150.90) (0.63) (84.15)
(c) Employees Benefit expense 1,225.15 1,125.39 1,096.38 4,454.04 4,241.11
(d) Power & Fuel 76.22 85.42 74.51 309.72 329.95
(e) Coporate Social Responsibility 7.44 4.95 12.90 20.15 23.95
(f) Repairs & Maintenance 26.12 15.28 24.01 64.34 51.12
(g) Contractual Expenses 206.45 214.18 227.92 708.83 604.97
(h) Financial Charges /Commitment Charges - - 0.26 - 2.26
(i) Depreciation/Amortization/Impairment 74.79 54.23 52.48 236.07 192.23
(j) Provisions 55.01 51.05 (37.14) 210.69 116.49
(m) Write off - - - - -
(n) Overburden Removal Adjustment 171.30 (77.11) 110.19 15.97 47.61
(l) Other Expenditures 84.62 74.85 95.64 263.80 255.81
Total expenses 2,128.44 1,808.50 1,884.64 7,432.91 6,925.17
3 Profit/ (Loss) from Operations before Other Income, finance costsExceptional Items (1-2)
(76.39) 51.27 199.53 115.61 (151.26)
4 Other Income105.62 105.56 124.99 429.12 473.81
5 Profit / (Loss) from ordinary activities before finance costs andExceptional Items (3+4)
29.23 156.83 324.52 544.73 322.55
6 Finance costs - - - - -
7 Profit / (Loss) from ordinary activities after finance costs but beforeExceptional Items (5-6)
29.23 156.83 324.52 544.73 322.55
8 Prior Period Adjustment { charges/ (Incomes) }(0.00) 1.01 3.41 (0.05) (3.30)
9 Exceptional items- - - - -
10 Profit (+)/Loss (-) from Ordinary Activities before tax (7+8-9) 29.23 155.82 321.11 544.78 325.85
11 Tax expense 13.58 93.18 149.88 231.64 102.27
12 Net Profit (+) / Loss (-) from Ordinary Activities after tax (10-11) 15.65 62.64 171.23 313.14 223.58
13 Extraordinary Item (net of tax expense ` Nil crores) charge / (credit) - - - - -
14 Net Profit(+) / Loss(-) for the period (12-13) 15.65 62.64 171.23 313.14 223.58
15 Paid-up equity share capital (Face Value ` 1000/- each) 297.10 297.10 297.10 297.10 297.10
16 Reserve excluding Revaluation Reserves as per balance sheet ofprevious accounting year
3,229.39 3,162.92
17 Earnings Per Share (before extraordinary items) (of ` 1000/- each)(a) Basic 1,053.99 752.54
(b) Diluted 1,053.99 752.54
PART I
Particulars
FOR THE YEAR ENDED ONFOR THE QUARTER ENDED ON
( in crores)`
2
STATEMENT OF UNAUDITED RESULTS FOR THE QUARTER AND THE YEAR ENDED ON 31.3.2015
WESTERN COALFIELDS LIMITED
163
18 Earnings Per Share (after extraordinary items) (of ` 1000/- each)
(a) Basic 1,053.99 752.54
(b) Diluted 1,053.99 752.54
PART II SELECT INFORMATION FOR THE QUARTER AND THE YEAR ENDED ON 31/03/2015
1
PARTICULARS OF SHAREHOLDING
Public Shareholding
- No. of shares
- Percentage of shareholdingNIL NIL NIL NIL NIL
2
Promoters and promoter group Shareholding
a) Pledged/Encumbered
- Number of shares
- Percentage of shares
(as a % of the total shareholding of promoter and promoter group)
- Percentage of shares (as a % of the total share capital of the company)
NIL NIL NIL NIL NIL
b) Non-encumbered
- Number of Shares
2,971,000 2,971,000 2,971,000 2,971,000 2,971,000- Percentage of shares (as a% of the total shareholding of promoter and
promoter group) 100% 100% 100% 100% 100%
- Percentage of shares (as a % of the total share capital of the company) 100% 100% 100% 100% 100%
General Manager (Finance) Company Secretary Director (Personnel) Chairman-cum-Managing Director(DIN-05105263) (DIN-05103300)
CA. A M MARATHE RAMEHER RUPAK DAYAL R. R. MISHRA
As per our report of even date
Chartered Accountants (FRN 110634 W)FOR V.K. SURANA & CO
Place : Nagpur
Date : 23rd May 2015
CA. SUDHIR SURANA
PARTNER(M.No.43414 )
ANNUAL REPORT 2014-15
164