Contentsnclcil.in/finance/Annual Report and Account 14-15English.pdfCash flow statement for the year ended 31st March, 2015 97 13. Statement of Standalone results for the Year ended

Contents Page Nos.

1. Vision & Mission of NCL 1

2. Board of Directors 2

3. Bankers & Auditors 6

4. Notice 8

5. Important Financial Information and Operational Statistics 15

6. Chairman’s Statement 20

7. Directors’ Report 21

8. Performance against MOU Parameters - Annexure - II 87

9. CertificateofComplianceofCorporateGovernanceGuidelines 94

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

11. StatementofProfit&LossAccountfortheyearended31stMarch,2015 96

12. Cashflowstatementfortheyearended31stMarch,2015 97

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

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

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

16. Notes(20to32)toProfit&LossAccount 126

17. (a) SignificantAccountingPolicy(Notes-33) 136

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

18. Addendum to the Directors’ Report

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

(b) CommentsoftheComptrollerandAuditorGeneralof 164 India under Section 143 (6)(b) of the Companies Act, 2013.

__________________________________________________NORTHERN COALFIELDS LIMITED

1

Vision

To emerge from the position of domestic leader to leading global player in the energy sector by adopting best practices from mine to market with due care to environmental and social sustenance.

Mission

To produce planned quantity of coal efficiently and economically in an eco-friendly manner with due regard to Safety, Conservation and Quality.

ANNUAL REPORT 2014-15 _________________________________________________________

2

Board of Directors

Shri T. K. NagChairman-cum-Managing Director

PART-TIME OFFICIAL DIRECTORS

R. K. Sinha B. K. SaxenaPART-TIME NON OFFICIAL DIRECTOR

A. K. Gupta S. J. SibalPERMANENT INVITEES

Deepak Nath C. P. Rai

FUNCTIONAL DIRECTORS

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


3

NORTHERN COALFIELDS LIMITED(A Subsidiary of Coal India Limited)

CIN – U10102MP1985GOI003160

Board of Directors(As on 26.06.2015)

Chairman-cum-Managing Director Shri Tapas Kumar Nag

Functional Director

Ms. Shantilata Sahu – Director (Personnel)

Shri Gunadhar Pandey – Technical

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

Part-time Official Directors

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

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

Part-time Non Official Directors Shri Surinder Jit Sibal – Director

Shri A.K.Gupta – Director Permanent Invitees

Shri Deepak Nath – Chief Operations Manager, East Central Railways, Hazipur.

Shri C.P.Rai – Addl. Principal Chief Conservator of Forest (LM), Govt. of Madhya Pradesh, Bhopal.

Company Secretary (Actg.) Shri D. K. Sharma

ANNUAL REPORT 2014-15 _________________________________________________________

4

NORTHERN COALFIELDS LIMITED(A Subsidiary of Coal India Limited)

Board of Directors(During the year 2014-15)

Chairman-cum-Managing Director

Shri Tapas Kumar Nag – (w.e.f. 30.09.2014) Ms. Shantilata Sahu (Addl. Charge) – (upto 29.09.2014)

Functional Directors

Ms. Shantilata Sahu – Personnel (Whole Year) Shri N. Das* – Technical (Upto 02.10.2014) Shri A.D. Mathur – Technical (Upto 31.01.2015) Shri A.K.Pandey – Finance (Whole Year) Shri Gunadhar Pandey – Technical (w.e.f. 01.02.2015)

Part-time Official Directors

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

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

Part-time Non-Official Directors

Shri Surinder Jit Sibal – Director (Whole Year) Shri A.K.Gupta – Director (Whole Year)

Permanent Invitees

Shri N.N.Misra – Director (Operations) NTPC, New Delhi (Upto 31.10.2014)

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

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

Company Secretary

Shri D. H. Lalwani – (Upto 12.12.2014)

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

* Shri Niranjan Das ceased to be Director (Technical), NCL w.e.f. 02.10.2013 in terms of MOC’s letter No. 21/3/2007-ASO dated 03.11.2014 and order No. CIL/C-5/A(ii)/N.Das/D(T),NCL/B-380 dated 04.11.2014 issued by GM(P), CIL, Kolkata.


5

ANNUAL REPORT 2014-15 _________________________________________________________

6

Bankers & Auditors

BANKERS

Bank of Maharashtra, Kolkata Andhra Bank, Kolkata

UCO Bank, KolkataUnited Bank of India, Kolkata

Corporation Bank, KolkataAllahabad Bank, Morwa

Union Bank of India, MorwaOriental Bank of Commerce, Kolkata

I D B I Bank, KolkataCanara Bank, KolkataBank of India, Kolkata

Bank of Baroda, KolkataPunjab National Bank, Kolkata

Syndicate Bank, SingrauliICICI Bank, Kolkata

State Bank of India, MorwaAxis Bank, SingrauliICICI Bank, Singrauli


7

AUDITORS

STATUTORy AUDITORS

M/s. Prakash & Santosh,Chartered Accountants,

Kanpur ( U.P. )

BRANCh AUDITORS

M/s. B. C. P. Jain & Co. M/s. S. K. Lulla & Co., Chartered Accountants, Chartered Accountants, Bhopal ( M.P.) Gwalior ( M.P.)

COST AUDITORS

M/s. K. B. Saxena & Associates,208-209 Ansal City Centre

Hajratganj, Lucknow ( U.P. )

BRANCh AUDITORS

M/s. S. G. & Associates, M/s. B. Mondal & Associates, 8A, Shanti Ghosh Street 61/H/15 Rajanaba Krishna Street near Shyam Bazar Metro Station, Kolkata (WB) Kolkata (WB)

SECRETARIAL AUDITOR

Shri Krupesh MankodiPractising Company Secretary,

A-2, Sneh Vihar Flats, 130,Napier Town, Jabalpur (MP)

REGISTERED OFFICE

P. O. Singrauli CollieryDistt. Singrauli ( M.P.) – 486 889

ANNUAL REPORT 2014-15 _________________________________________________________

8

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

To,

1. M/s. Coal India Ltd., Member, NCL, Coal Bhawan, New Town, Rajarhat, Kolkata – 700 156.2. Shri S. Bhattacharya, Chairman, Coal India Ltd., Member, NCL, Coal Bhawan, New Town, Rajarhat,

Kolkata – 700 156.3. Shri B. K. Saxena, Director (Marketing), Coal India Ltd., Member, NCL, Coal Bhawan, New Town, Rajarhat,

Kolkata – 700156.4. Shri T. K. Nag, Chairman-cum-Managing Director, Member, NCL, Singrauli (MP).5. All Directors/Permanent Invitees, NCL Board/Chairman, Audit Committee, NCL.6. M/s Prakash & Santosh, Chartered Accountants, Statutory Auditors, NCL, Ronald Complex, Flat

No. 8, Upper Floor, West Cott Building, 37/17, The Mall, Kanpur – 208 001 (UP)7. M/s. K. B. Saxena & Associates, Central Cost Auditors, NCL, 208-09 Ansal City Centre, Hajratganj,

Lucknow (UP).8. Shri Krupesh Mankodi, Practising Company Secretary, Secretarial Auditor, NCL, A-2, Sneh Vihar

Flats, 130, Napier Town, Jabalpur (MP).

N O T I C E30Th ANNUAL GENERAL MEETING

Notice is hereby given that the Thirtieth Annual General Meeting of the Members of Northern Coalfields Limited will be held at 11.30 A.M. on Saturday, 27th June 2015 at the Registered Office of the Company at Singrauli Colliery, Distt. Singrauli (M.P.) to transact the following business:

ORDINARy BUSINESS :

1. To consider and adopt the Audited Financial Statements of the Company for the financial year ended March 31, 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 payment of two interim dividends paid 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 Ms. Shantilata Sahu, who retires by rotation in terms of Section 152(6) of the Companies Act 2013 and being eligible, offers herself for re-appointment.

4. To appoint a Director in place of Shri B. K. Saxena, who retires by rotation in terms of Section 152(6) of the Companies Act 2013 and being eligible, offers himself for re-appointment.

SPECIAL BUSINESS :

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

To consider and if thought fit to pass, with or without modifications, the following as an ordinary resolution –

“RESOLVED THAT pursuant to the provisions of Section 148(3) of the Companies Act, 2013 read with Rule 14 of the Companies (Audit and Auditors) Rules, 2014 (Including any other statutory modification(s) or reenactment thereof for the time being in force)the remuneration


9

of Cost Auditors for the Financial Year 2015-16 as recommended by the Audit Committee in its 71st meeting and approved by the Board of Directors of Northern Coalfields Ltd vide Item no. 194/C-14 in its 194th Meeting held on 20.4.2015 at Singrauli, as detailed below, be and is ratified:-

Sl.No.

Name of the Cost Audit Firm

Status Cost Audit Fees Recommended

TA & Out of Pocket

Expenses

Reimbursement of Service Tax

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

Central Auditor

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

At Actual

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

Branch Auditor

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

At Actual

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

Branch Auditor

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

At Actual

By Order of the Board of Directors

Sd/-Company Secretary (Actg.)

Registered Office :P.O.Singrauli Colliery,Distt. Singrauli (M.P.) - 486 889Date : 19/06/2015

Note:

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

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

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

4. Pursuant to the provision of Section 171(1)(b) and 189(4) of the companies Act,2013, the registers required to be kept open for inspection at every Annual General Meeting of the company, shall accessible during the continuance of the meeting to any person having the right to attend the meeting.

Copy to:

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

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

3 Chief of Internal Audit, NCL, Singrauli

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

ANNUAL REPORT 2014-15 _________________________________________________________

10

EXPLANATORy STATEMENT PURSUANT TO SECTION 102(1) OF ThE COMPANIES ACT, 2013

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

Section 148(3) of the Companies Act, 2013 read with Rule 14 (a)(ii) of the Companies (Audit and Auditors) Rules, 2014 dealing with remuneration of Cost Auditors, requires that the remuneration recommended by the Audit Committee shall be considered and approved by the Board of Directors and ratified subsequently by the shareholders.

The remuneration of the Cost auditors appointed for the Financial Year 2015-16 has been recommended by the Audit Committee in its 71st meeting and subsequently has been approved by the Board of Directors of the Company vide Item no. 194/C-14 in its 194th Meeting held on 20.4.2015 at Singrauli.

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

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

By Order of the Board of Directors

Place : Singrauli Sd/-Date: 19/06/2015 Company Secretary (Actg.)


11

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

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

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

Profit

(Rs.

in C

rore

s)Th

ousa

nds

05–06 06–07 07–08 08–09 09–10 10–11 11–12 12–13 13-14 14-15Gross Margin (PBDIT & CPRA*)

2512.96 2555.11 3121.64 3612.04 4033.11 4329.97 4665.89 4735.35 3731.85 4096.07

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

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

05–06 06–07 07–08 08–09 09–10 10–11 11–12 12–13 13-14 14-154546.86 4630.84 5455.21 6551.94 7264.84 7516.03 7916.52 8731.71 9303.88 9452.58

(Rs.

in C

rore

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ousa

nds

Turnover

2!

3!

4!

5!

6!

7!

8!

9!

10!

ANNUAL REPORT 2014-15 _________________________________________________________

12

0 10

20

30

40

50

60

70

80

Off-

Take

(In Million Tonne)

Ove

r Bur

den

Rem

oval

(In Million Cu.M.)

Com

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(In Million Cu. M.)

0 10

20

30

40

50

60

70

80

Coa

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(In Million Tonne)

05–0

606

–07

07–0

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–09

09–1

010

–11

11–1

212

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-15

51.51

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663

.6567

.6766

.2566

.470

.0268

.6472

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05–0

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07–0

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–09

09–1

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–11

11–1

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–13

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-15

51.67

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64.23

66.66

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63.61

367

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72.11

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05–0

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–07

07–0

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–09

09–1

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–11

11–1

212

–13

13-14

14-15

133.8

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9.598

177.1

4920

2.749

117.9

718

2.17

201.6

619

5.71

208.7

821

0.61

05–0

606

–07

07–0

808

–09

09–1

010

–11

11–1

212

–13

13-14

14-15

167.0

1917

3.173

224.6

5624

3.755

221.5

222

4.824

6.38

240.7

725

3.71

257.0

1

0 50

100

150

200

250

0 50

100

150

200

250

300


13

Royalty 47%

Central & State Sales Tax

9%

Clean Energy Cess 17%

Excise Duty 10%

Stowing Excise Duty 3%

MPGATSVA 12%

Others 2%

Statutory Levies-‐ M.P.

Royalty 26%

Central & State Sales Tax

20% Clean Energy

Cess 24%

Excise Duty 18%

Stowing Excise Duty 2%

Others 10%

Statutory Levies-‐ U.P.

ANNUAL REPORT 2014-15 _________________________________________________________

14

how Rupee is spent

Statutory Levies (TOTAL)/Contribution to Exchequer

Royalty, 41%

Central & State Sales Tax, 12%

Clean Energy Cess, 19%

Excise Duty, 12%

Stowing Excise Duty, 2%

MPGATSVA, 9% Others, 5%

Cost of Material Consumed, 22%

Employee Benefit Expenses, 26%

Power & Fuel, 4% Repairs, 3%

Contractual Expenses, 17%

Depreciation/Amortization/Impairment,

5%

Provisions, 2% Overburden Removal

Adjustment, 14%

CSR Exp., 1% Other Expenditure, 6%


15

IMPORTANT FINANCIAL INFORMATION(Rs. in Crores)

year 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-2009 2007-2008 2006-2007 2005-2006(A) RELATED TO ASSETS & LIABILITIES:(1) Shareholders’ funds (a) Equity 177.67 177.67 177.67 177.67 177.67 177.67 177.67 177.67 177.67 177.67 (b) Reserves & Suplus 5699.69 9076.42 9568.40 8756.62 7918.21 7179.61 6483.20 5898.79 5382.68 4547.59

(c) Less: Misc. Exp. not W/O 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Net Worth 5877.36 9254.09 9746.07 8934.29 8036.83 7327.81 6660.87 6076.46 5560.36 4725.26(2) Redeemable Pref. Shares 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00(3) Loan 0.00 0.00 612.83 735.30 739.50 789.97 963.80 815.04 887.70 977.98(4) Capital Employed 11002.34 13406.51 13499.54 12038.45 8455.51 7880.77 7366.30 6616.08 6363.82 5684.33(5) (i) Net Fixed Assets 2519.71 2297.33 2135.06 2192.70 2164.14 2204.42 1914.37 1832.27 1897.30 1949.20 (ii) Current Assets 11450.56 13569.69 14211.13 12596.38 12182.38 10473.42 9277.42 7585.25 6459.63 5390.53 (iii) Net Current Assets(W/Capital) 8482.63 11109.18 11364.48 9845.75 6291.37 5676.34 5451.93 4783.80 4466.52 3735.13(6) Current Liabilities 2967.93 2460.51 2846.65 2750.63 5891.00 4797.08 3825.49 2801.45 1993.11 1655.40(7) (a) Sundry Debtors (Net) 621.14 955.94 1738.21 425.70 99.40 123.00 73.73 51.83 50.53 108.91 (b) Cash & Bank Balances 7265.10 7443.79 8432.77 8738.30 8626.36 6949.63 5506.02 3959.23 3095.74 2428.74(8) Closing Stock of: (a) Stores & Spares (Net) 456.25 408.47 369.05 336.84 294.14 320.26 300.47 204.31 182.35 166.70 (b) Coal (Net) 379.54 484.64 629.32 391.10 199.81 75.05 46.30 75.65 39.52 56.60 (c) Other inventories (Net) 0.12 0.08 0.02 0.03 0.00 12.24 12.58 17.78 3.84 1.26(9) Av. Stock of Stores&Spares (Net) 432.36 388.76 352.95 315.49 307.20 310.37 252.39 193.33 174.53 162.33(B) RELATED TO PROFIT/LOSS(1) (a) Gross Margin 4096.07 3731.85 4735.37 4665.89 4329.97 4033.11 3612.05 3121.64 2555.11 2512.95 Less: Depreciation 382.34 360.69 294.53 378.09 349.84 239.23 433.32 314.84 327.94 349.67 (b) Gross Profit 3713.73 3371.16 4440.84 4287.80 3980.13 3793.88 3178.73 2806.80 2227.17 2163.28 Less: Interest & Financial Charges 0.26 15.45 20.26 22.13 23.77 27.59 47.71 43.05 49.56 47.03 (c) Net Profit before Tax 3713.47 3355.71 4420.58 4265.67 3956.36 3766.30 3131.01 2763.75 2177.61 2116.26(2) Provision for Income Tax 1579.30 1347.69 1738.45 1495.58 1510.92 1441.20 1170.09 992.09 811.12 815.28 Profit after Tax 2134.17 2008.02 2682.13 2770.09 2445.45 2325.10 1960.93 1771.66 1366.49 1300.98(3) (a) Gross Sales 13161.25 12419.62 11616.11 10176.94 8972.50 8415.61 7617.93 6388.79 5408.79 5315.09 (b) Net Sales(after levies & Dev. etc) 9452.58 9303.88 8731.71 7916.52 7516.03 7264.84 6551.94 5455.21 4630.84 4546.86 (c) Average Net Sales per month 787.72 775.32 727.64 659.71 626.34 605.40 546.00 454.60 385.90 378.91(4) Cost of Good Sold (Sales - PBT) 5739.11 5948.17 4311.13 3650.85 3559.66 3498.54 3420.93 2691.46 2453.23 2430.61(5) (a) Total expenditure 7054.65 7154.05 5565.82 4866.76 4585.01 4374.20 4225.41 3373.28 2994.07 2785.75 (b) Sal. & Wages(Gross; Rev. only) 1800.47 1711.24 1599.87 1397.23 1050.41 970.11 1105.20 631.05 526.04 455.25 (c) Stores & Spares(Gross;Rev.only) 1578.70 1590.52 1379.16 1270.46 1242.09 1167.28 1208.70 1114.13 1050.98 904.44 (d) Power & Fuel(Gross;Rev.only) 317.77 310.56 295.44 266.75 254.64 229.28 226.47 234.66 234.20 230.08 (e) Interest(Gross;Rev.only) 0.26 15.45 20.26 22.13 23.77 27.59 47.71 43.05 49.56 47.03 (f) Depreciation(Gross;Rev.only) 382.34 360.69 294.53 378.09 349.84 239.23 433.32 314.84 327.94 349.67(6) Av. Cons. of Stores & Spares/month 131.56 132.54 114.93 105.87 103.51 97.27 100.72 92.84 87.58 75.37 Gross Margin (PBDIT) (Rs. Crs.) 4096.07 3731.85 4735.37 4665.89 4329.97 4033.11 3612.05 3121.64 2555.11 2512.95Profit before Tax (Rs. Crs.) 3713.47 3355.71 4420.58 4265.67 3956.36 3766.30 3131.01 2763.75 2177.61 2116.26Profit after Tax (Rs. Crs.) 2134.17 2008.02 2682.13 2770.09 2445.45 2325.10 1960.93 1771.66 1366.49 1300.98

Note: (1) For the year 2011-12 onwards, figures are derived on the basis of Revised Schedule VI of the Companies Act, 1956 (2)Figures for Fy 2013-14 have been changed according to regrouping of accounts comparable with those for the year 2014-15.

ANNUAL REPORT 2014-15 _________________________________________________________

16

IMPORTANT FINANCIAL RATIOS/PERCENTAGESyear 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-2009 2007-2008 2006-2007 2005-2006

(A) PROFITABILITy RATIOS(1) As % Net Sales

(a) Gross Margin 43.33 40.11 54.23 58.94 57.61 55.52 55.13 57.22 55.18 55.27(b) Gross profit 39.29 36.23 50.86 54.16 52.96 52.22 48.52 51.45 48.09 47.58(c) Net Profit (PBT) 39.29 36.07 50.63 53.88 52.64 51.84 47.79 50.66 47.02 46.54

(2) As % Total Expenditure(a) Sal & Wages (Gross; Revenue) 25.52 23.92 28.74 28.71 22.91 22.18 26.16 18.71 17.57 16.34(b) Stores & Spares(Gross; Revenue) 22.38 22.23 24.78 26.10 27.09 26.69 28.61 33.03 35.10 32.47(c) Power & Fuel(Gross;Revenue) 4.50 4.34 5.31 5.48 5.55 5.24 5.36 6.96 7.82 8.26(d) Interest(Gross; Revenue) 0.00 0.22 0.36 0.45 0.52 0.63 1.13 1.28 1.66 1.69(e) Depreciation(Gross; Revenue) 5.42 5.04 5.29 7.77 7.63 5.47 10.26 9.33 10.95 12.55

(3) As % Capital Employed(a) Gross Margin 37.23 27.84 35.08 38.76 51.21 51.18 49.03 47.18 40.15 44.21(b) Gross profit 33.75 25.15 32.90 35.62 47.07 48.14 43.15 42.42 35.00 38.06(c) Net Profit 33.75 25.03 32.75 35.43 46.79 47.79 42.50 41.77 34.22 37.23

(4) Operating Ratio [(Sales-Profit)/Sales] 0.61 0.64 0.49 0.46 0.47 0.48 0.52 0.49 0.53 0.53(B) LIQUIDITy RATIOS(1) Current Ratio

(Current Assets/Current Liabilities)3.86 5.51 4.99 4.58 2.07 2.18 2.43 2.71 3.24 3.26

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

3.58 5.15 4.64 4.31 1.98 2.10 2.33 2.60 3.13 3.12

(3) Working Capital as % of(a) Capital Employed 77.10 82.86 84.18 81.79 74.41 72.03 74.01 72.31 70.19 65.71(b) Net Fixed Assets 336.65 483.57 532.28 449.02 290.71 257.50 284.79 261.09 235.41 191.62

(C) TURNOVER RATIOS(1) Capital Turnover Ratio

(Net Sales/Capital Employed)0.86 0.69 0.65 0.66 0.89 0.92 0.89 0.82 0.73 0.80

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

1.11 0.84 0.77 0.80 1.19 1.28 1.20 1.14 1.04 1.22

(3) Sundry Debtors as no.of months(a) Gross Sales 1.21 1.56 1.80 0.50 0.13 0.18 0.12 0.10 0.11 0.25(b) Net Sales 1.69 2.08 2.39 0.65 0.16 0.20 0.14 0.11 0.13 0.29

(4) As Ratio of Net Sales(a) Sundry Debtors 0.14 0.17 0.20 0.05 0.01 0.02 0.01 0.01 0.01 0.02(b) Coal Stocks 0.04 0.05 0.07 0.05 0.03 0.01 0.01 0.01 0.01 0.01

(5) Stock of Stores & Spares(a) Av. Stock/Annual Consumption 0.32 0.28 0.26 0.25 0.25 0.27 0.21 0.17 0.17 0.18(b) Closing Stock as no. of months con. 3.82 3.41 3.21 3.18 2.84 3.29 2.98 2.20 2.08 2.21

(D) STRUCTURAL RATIOS(1) Debt : Equity 0.00 0.00 3.45 4.14 4.16 4.45 5.42 4.59 5.00 5.50(2) Debt : Networth 0.00 0.00 0.06 0.08 0.09 0.11 0.14 0.13 0.16 0.21(3) Networth : Equity 33.08 52.09 54.85 50.29 45.23 41.24 37.49 34.20 31.30 26.60(4) Net Fixed Assets : Networth 0.43 0.25 0.22 0.25 0.27 0.30 0.29 0.30 0.34 0.41(E) ShAREhOLDER’S INTEREST(1) Earnings Per Share (EPS) (Rs.)

(N.P. after tax & Pref.Div/No. of Equity)12011.80 11301.79 15095.90 15590.96 13763.78 13086.39 11036.72 9971.49 7691.02 7322.35

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

33079.70 52085.03 54854.05 50285.09 45233.90 41243.28 37489.55 34200.28 31295.48 26595.29

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


17

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

A. Operational Statistics:

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

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

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

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

(2) Raw Coal Despatch (Lakh Tes):

Power 696.53 672.07 645.48 613.47 642.31 642.31 612.83 567.25 514.78 508.62

Cement 1.31 1.55 1.70 0.12 0.00 0.00 0.00 0.00 0.00 0.00

Others 38.84 47.49 25.67 18.48 20.29 20.29 25.16 19.11 11.42 8.17

Total 736.68 721.11 672.85 632.07 662.60 662.60 637.99 586.36 526.20 516.79

(3) Manpower:

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

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

Average 16484 16407 16201 16269 16291 16412 16574 16712 16820 17044

(4) Productivity:

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

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

B. Related to Cost Sheet:

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

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

906.65 878.37 802.13 719.21 639.07 593.91 629.45 537.07 550.83 514.09

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

1260.58 1305.63 1253.76 1193.76 1130.18 1059.48 1005.47 904.20 872.59 865.55

ANNUAL REPORT 2014-15 _________________________________________________________

18

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


19

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

7/24/2006 3/9/1957 MEDICAL

49 90088923 I.B.MISHRA E8 CH. MEDICAL SRVC

5/7/2005 2/19/1958 MEDICAL

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

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

52 90040577 A.K.VERMA E8 GM (SALES&QC)

10/1/2012 1/10/1956 SALES/MRKT/QUAL CNTL

53 90137159 K.PATHAK E8 GM (PERS&ADM)

10/15/2007 6/20/1956 PERSONNEL & ADMN

54 90110396 A.JAGADESWAR REDDY E8 GM (PERS&ADM)

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

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

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

57 90073818 BALKRISHNA SHARMA E8 CGM (ENVIRON)

11/9/2012 3/16/1957 ENVIRONMENT

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

ANNUAL REPORT 2014-15 _________________________________________________________

20

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

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

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

Your Company has complied with the conditions of Corporate Governance as stipulated in the Guidelines on Corporate Governance for Centeral Public Sector Enterprises (CPSEs) issued by the Department of Public Enterprises, Government of India. As required under the said guidelines a separate section on Corporate Governance has been added in the Directors’ Report and a Compliance Certificate obtained from the Statutory Auditors has been annexed to the Directors’ Report.

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

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

I am confident that with sustained efforts of all concerned, NCL will grow at desired pace in the Financial Year 2015-16 and years ahead.

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

Sd/-( T. K. NAG )

Chairman-cum-Managing DirectorNorthern Coalfields Limited

Chairman’s Statement

Dear Shareholders,

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

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

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


21

DIRECTORS’ REPORT

To

ThE MEMBERS/ShAREhOLDERS,

Northern Coalfields Limited,

On behalf of the Board of Directors, I have great pleasure in presenting the 30th Annual Report of Northern Coalfields Limited (NCL) together with the Audited Accounts for the Financial Year ended 31st March, 2015.

PERFORMANCE hIGhLIGhTS OF ThE yEAR

The highlights of performance for the year 2014-15 are as under :

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

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

l Record turnover of Rs.9452.58 crores during the year 2014-15 is 1.60 percent higher than last year ’s turnover of Rs.9303.88 crores.

l NCL recorded Profit before Tax (PBT) of Rs.3713.47 crores during the year 2014-15, and has registered a increase of 10.66 percent over previous year’s PBT of Rs.3355.71crores. Profit after Tax (PAT) was Rs.2134.17 crores compared to previous year’s PAT of Rs.2008.02 crores.

l Dividend for the year 2014-15 being 2568.76% of paid up equity share capital, amounts to Rs.4563.99 crores against 1202.68% of paid up equity share capital amounting to Rs.2136.84 crores for the year 2013-14.

l Earning per Share (EPS) during the year 2014-15 has been increased upto

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

l Efforts for greening the environment and pollution control continued during the year. During 2014-15, 5.08 lakh saplings have been planted. The total saplings planted upto 31st March, 2015 reached 226.51 lakhs.

l NCL continued to practice the Worker’s participation in management, as a result industrial relations remained healthy and harmonious.

l Emp loyees ’ we l fa re , commun i t y development and human resource development continued to be focus areas.

1.0 FINANCIAL REVIEW

1.1 The Company has achieved a Gross Turnover of Rs.13,161.25 Crores (Net turnover Rs. 9,452.58 crores) during the year 2014-15 against Gross Turnover of Rs.12,400.42 Crores (Net turnover Rs. 9,303.88 crores) during the year 2014-15 recording a growth of 6.14% (in Gross Turnover) and 1.60% ( in Net Turnover). The financial results for the year 2014-15, as compared to previous year, are given in the following table :

(Rs. in crore)

Description 2014-15 2013-14

Gross Margin 4096.07 3731.85

Less: Depreciation 382.34 360.69

Gross Profit 3713.73 3371.16

Less: Interest & other financial charges 0.26 15.45

Profit before Tax 3713.47 3355.71

Less: Provision for Tax 1579.30 1347.69

Profit after Tax 2134.17 2008.02

Less: Transfer to CSR Reserve — 38.42

Transfer to Sustainable Development Reserve — 3.08

Transfer to General Reserve 213.42 200.80

Dividend on Equity Share Capital 4563.99 2136.84

Provision for Tax on Distributable Profit 912.53 363.16

Surplus carried to Balance Sheet (3555.77) (734.28)

ANNUAL REPORT 2014-15 _________________________________________________________

22

1.2 ShARE CAPITAL

1.2.1 The Authorized Share Capital of the Company as on 31st March, 2015 remained at Rs.1,400.00 crores comprising of 40,00,000, 10% Cumulative Preference Shares of Rs.1000/- each and 1,00,00,000 Equity Shares of Rs.1000/- each. The paid-up share capital as on 31st March, 2015, remained at Rs.177.67 crores comprising of 17, 76,728 equity shares of Rs.1000/- each.

1.3 TRANSFER TO RESERVE

1.3.1 An amount of Rs. 213.42 crores, equivalent to 10% of Profit after Tax, has been transferred to General Reserve.

1.4 DIVIDEND

1.4.1 The interim dividend already paid amounting to Rs. 4563.99 crores, will be treated as final dividend on the equity share capital for the year 2014-15. The dividend paid amounting to Rs. 4563.99 crores (previous year Rs. 2136.84 crores) work out to 2568.76% of the paid-up equity share capital (previous year 1202.68%) i.e. Rs. 25,687.61 per share against Rs. 12026.83 in previous year. The dividend distribution tax paid amounting to Rs. 912.53 Crores (previous year Rs. 363.16 Crores).

1.5 BORROWINGS

1.5.1 The Company has not taken any loan from CIL, Government or any financial institution during the year.

1.6 CAPITAL EXPENDITURE

1.6.1 During the year 2014-15, NCL has made a capital expenditure of Rs. 715.06 crores against the budget of Rs. 800.00 crores. The expenditure has been mainly on acquisition/ addition of HEMM, other plant & machinery and on buildings etc.

1.7 SALES REALISATION

1.7.1 The status of billing and sales realization for the year 2014-15 as compared to previous year is given below :

year Billing Realisation including receipt % Realisation (Rs. in against dues of earlier years against billing crore) (Rs. in crore)

2014-15 14778.48 13646.57 92.34

2013-14 14315.42 12705.80 88.75

Note : Incentive bills for the year 2014-15 has been included in net billing and previous year figures are also regrouped accordingly.

1.8 COAL SALES OUTSTANDING DUES

1.8.1 The position of coal sales dues outstanding as on 31.03.2015 as compared to 31.03.2014 is given hereunder :

(Rs. in crore)

Consumer As on 31.3.2015 As on 31.3.2014

UPRVUNL 361.68 30.66

NTPC 889.73 1532.94

Others 77.56 46.02

Total 1328.97 1609.62

1.8.2 OUTSTANDING DUES ARE MAINLy DUE TO FOLLOWING REASONS :

(a) Bills on accounts of transit fees for the period 21.1.1999 to 31.03.2012 amounting to Rs.246.75 Crores is yet to be realized from UPRUNL. However, UPRVUNL has submitted a Bank Guarantee of Rs.246.75 crores against dues of UP Forest Transit Fees in the month of January, 2015 and NCL has submitted a Bank Guarantee for Rs.337.27 crores to the Principal Secretary, Environment & Forest, Govt. of UP in the month of March, 2015.

(b) Dispute on GCV issue for the period 24.10.2012 to 30.09.2013 has been settled and NCL made the provision of Rs.643.88 crores which is still lying as dues in the books of accounts.


23

1.8.3 With regard to interest on delayed payment of coal sales dues against coal supplied to UPRVUNL, Hon’ble Umpire passed an award directing UPRVUNL to pay Rs.132.67 crores to NCL against which an appeal was made by UPRVUNL before Secretary (Law), Ministry of Law & Justice, Government of India. The said appeal was rejected by Secretary (Law) in the month of June, 2006.

1.8.4 Subsequently, UPRVUNL preferred to file a Petition before Hon’ble High Court of Allahabad, Lucknow Bench against (i) Office Order issued by Ministry of Coal, Government of India regarding appointment of Umpires, (ii) Award passed by Umpire for payment of Rs.322.96 crores by UPRVUNL to subsidiary companies of Coal India Ltd.; towards interest on delayed payment of coal bills which included NCL’s share of Rs.132.67 crores and (iii) Order passed by Secretary (Law), rejecting the appeal filed by UPRVUNL against award of umpire.

1.8.5 A short counter affidavit challenging the maintainability of the Writ Petition has been filed before Hon’ble High Court of Allahabad Bench. The matter is still pending before the Hon’ble High Court.

1.9 SECURITISATION OF COAL SALES DUES

1.9.1 In the report for the year ended 31st March, 2004, it was informed that under the Scheme for One Time Settlement of SEBs’ dues to Central Public Sector Undertakings (CPSUs) introduced by the Central Govt., 8.5% tax free bonds of the State Government for an amount of Rs. 114.56 crores were issued by Reserve Bank of India against the outstanding dues of UPSEB / UPRVUNL as on 30.09.2001. Out of Rs. 114.56 crores, Rs. 103.10 crores

(18 Nos. of Bonds @ Rs. 5.73 crores) have been redeemed upto 31.3.2015.

1.10 PAyMENT TO CENTRAL/STATE EXChEQUER

1.10.1 Information in regard to contribution made by the Company towards the Central and State Exchequer is furnished hereunder :

(Rs. in crore)

Particulars 2014-15 2013-14 —————————— —————————— MP UP Total MP UP Total

Royalty 1025.25 250.61 1275.86 895.50 266.13 1161.63

Central & State Sales Tax 188.89 188.89 377.78 174.27 202.69 376.96

Clean Energy Cess 361.94 232.74 594.68 225.59 168.06 393.65

Excise Duty 212.88 170.07 382.95 218.82 203.75 422.57

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

Entry Tax 6.90 31.17 38.07 5.62 32.69 38.31

Service Tax 9.10 5.05 14.15 7.27 3.16 10.43

Stowing Excise Duty 54.26 18.83 73.09 52.86 19.42 72.28

SSDA Cess – 11.27 11.27 – 13.15 13.15

Property Tax 1.76 – 1.76 1.76 – 1.76

Forest Cess 12.99 40.78 53.77 14.76 39.77 54.53

Professional Tax 2.52 – 2.52 2.22 – 2.22

MPGATSVA 268.90 – 268.90 215.88 – 215.88

Total 2160.91 952.30 3113.21 1819.47 954.82 2774.29

1.10.2 The Company has paid an amount of Rs.1635.98 crores towards corporate advance income tax (including TDS) and Rs. 912.53 crores towards dividend tax during 2014-15, as against Rs. 1700.63 crores and Rs. 462.00 crores respectively, paid during 2013-14.

1.10.3 Earning per share (EPS) during the year 2014-15 has been increased upto Rs.12,011.80 from Rs.11,301.79 of previous year.

2.0 PRODUCTION PERFORMANCE

2.1 Production Performance for the year 2014-15 against target and in comparison with previous year is given below:

ANNUAL REPORT 2014-15 _________________________________________________________

24

2014-15

2013-14 Actual

% Growth

over Previous

year

Target(Revised BE 14-15)

Actual % Achvt

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

Coal Offtake

(Mill. Tes)78.50 73.69 93.87 72.11 2.19

Over Burden

Removal (Mill. Cum)

Dept. 80.00 75.59 94.49 79.47 -4.88

Out- sourc-ing

160.00 135.02 84.39 129.31 4.41

Total 240.00 210.61 87.76 208.78 0.88Composite Production (Mill. Cum)

Total 289.59 257.01 88.75 253.02 1.58

2.1.1 Enchanced EC clearance of three mines namely Bina, Krishnashila and Block-B obtained in the month of August, 2014 but consent to operate was given by the State Govt. of UP/MP in the month of Feb & March, 2015. The delay in clearance of EC & Consent from these three mines lead to coal shortfall of 1.87 MT.

draglines in NCL has affected not only the OB removal programme, but coal production as well.

2.1.3 The main reasons for less achievement of Coal Production and OB Removal by Departmental means are as follows :

As per Board approval of HEMM based on PR/RPR/survey off norms, following equipment are urgently required :

Equip-ment

Required (nos.) as per

PR/RPR/ NCL

Board approval

Total capacity (Cum/Tes)

Existing nos. on 1st April ‘2015

Existing Capacity

(Cum/Tes)

Shortage in

Capacity (Cum/ Tes)

Shortage in nos. Remarks

Dragline 23 511 19 440 71 3 Shortages based on 24 Cum bucket capacity

Shovel 102 990.7 72 712 278.7 28 Shortages based on 10 Cum bucket capacity

Dumper 725 68185 461 45930 22255 223 Shortages based on 100 Tes bucket capacity

2.1.4 The shortage of these equipment are the biggest hurdle in existing production capacity. At present two nos. of draglines are under erection at Amlohri, 05 Nos. of dragline and 24 nos of Shovels are under process of NIT preparation and under process of tendering respectively. Supply order of 36 nos. of 100 Tes capacity Dumpers are placed and are under commissioning/ Operation.

2.1.5 The availability of Shovels had been badly affected due to non supply of spares of Shovels. M/s Vulcan, Gujrat and M/s Rajesh Engg , Raipur were the main Suppliers for Shovel spares - some of which are listed below:

Dipper Handle, Final Drive Gear,

Final Drive Pinion, Lower Roller assembly,

Drive Tumbler, Shaft and Pinion, and various types of Gears etc.

Rail 34.18%

MGR 48.35%

Road 17.47%

Mode-wise Off-take

2.1.2 One dragline scheduled to be commissioned in April, 2012 at Amlohri was delayed and commissioned by May, 2014. Second dragline scheduled to be commissioned in April, 2013 at Krishnashila was delayed and was commissioned by January, 2015. Third and fourth dragline scheduled to be commissioned in May, 2013 and May 2014 respectively at Amlhori itself was also delayed due various issues and yet to be commissioned by M/s. HEC.

Such a period of lag in commissioning schedule of all the upcoming three


25

2.1.6 Since M/s Vulcan, Gujrat had been banned and M/s Rajesh Engg. Raipur were unable to supply the spares as per Supply Order. M/s HEC is also not been able to supply spares in time. So the performance of Shovels had become very poor and it affected the production programme of OB Removal and Coal as well.

2.1.7 The BE-9 Hydraulic Shovel at Amlohri and One BE-1600 Shovel at Khadia was under breakdown due to fire in the machine since Feb’14 and March, 2013 respectively. The shovel was under MARC with M/s. BEML and its work for rehabilitation/maintenance was not yet started by March’15.

2.1.8 Stoppage of work by HOE contractor M/s Sainik Mining and Allied services Ltd. at Jayant and Dudhichua from April, 2014 had greatly affected the OB Removal and subsequent the coal production on account of lack of coal exposure.

2.1.9 Poor performance of outsourcing agency M/s JP-ASD-Dhilu (JV) at Dudhichua and M/s Saumya Mining Ltd. at Nigahi project and complete stoppage of work from April, 2014 to November, 2014 for 78 days badly affected the OB removal and coal production program as well.

2.1.10 The boom of 20/90 Bajrang Dragline at Nigahi project has collapsed on 18.1.2014 due to structural failure causing loss in OB Removal and less coal exposure from turra seam.

2.2 Production Programme for the year 2015-16

2.2.1 The company has finalized a Programme for Coal Production of 79.50 Mill. Tes. and OB Removal of 285 Mill. Cum for the year 2015-16. Out of this OB removal by departmental means has been planned for 80.0 Mill. Cum and 205.00 Mill. Cum by HOE means /Outsourcing.

2.3. Productivity

2.3.1 The productivity in terms of Output per Man Shift (OMS) for the year 2014-15 has been 13.76 tes. in comparison to last year OMS 13.78 tes.

3.0 POPULATION AND PERFORMANCE OF hEAVy EARTh MOVING MAChINES (hEMM)

3.0.1 The population of major HEMM for the last five years is given below :

Sl. No. hEMM

2010-11 (As on

31.03.11)

2011-12 (As on

31.03.12)

2012-13 (As on

31.03.13)

2013-14 (As on

31.03.14)

2014-15 (As on

31.03.15)

1 Dragline 19 19 19 17 18

2 Shovel 105 96 94 85 88

3 Dumper 569 558 515 446 458

4 Dozer 157 136 138 130 163

5 Drill 130 91 122 136 132

6

Decrease of shovels & D/L in numbers

0 9 11 20 & 2 17 & 1

% decrease in digging units 0 8.57 10.48

19.04 &

10.52

16.19% &

5.26%

7Decrease of Dumpers in numbers

0 11 54 123 111

8% decrease in Transportation units

0 1.93 9.49 21.61 19.51

* Taking base as on 31.03.2011

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

Particulars 2010-11 2011-12 2012-13 2013-14 2014-15Dragline system 76.68 67.67 66.14 65.71 59.59*

Mine Capacity Utilization

73.90 67.29 67.71 68.40 69.49*

Shovel Dumper System

72.72 67.13 68.40 69.65 74.59*

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

3.2 Performance of hEMM

Sl.No. Equipment

% Achievement of availability against

standard

% Achievement of Utilization against

standard(+) increase/(–) decrease

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

1 Dragline 92.36 94.28 92.28 96.37 1.92 4.09

2 Shovel 79.30 88.45 62.72 76.4 9.15 13.68

3 Dumper 92.52 106 68.32 81.4 13.48 13.08

4 Dozer 99.47 109.67 49.53 56.91 10.2 7.38

5 Drill 111.64 115.63 33.39 38.39 3.99 5.00

ANNUAL REPORT 2014-15 _________________________________________________________

26

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

3.3 New Dragline Commissioned 33/72 dragline was commissioned in

January, 2015 at Krishnashila Project.3.4 Rehabil i tat ion detai ls of hEMM

(2014-15) The rehabilitation work for 15/90 D/L (Vijay)

of Jayant Project was completed during the year 2014-15.

3.5 Equipment under procurement process (as on 15.05.2015)

Sl. No. Equipment Total

Qty.Project-wise Distribution

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

2. 10 Cum Diesel Driven Face Shovels 09 Nos AML-3,NGH-2,KHD-2,

BINA-1,JNT-1

3. 10 Cum Diesel Driven Backhoe Shovels 02 nos JNT-1 ,DCH-1

4. 10 Cum Electric Rope Shovels 07 Nos JNT-5,DCH-2

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

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

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

8. 10/11.75 Cum F.E Loader 05 No KSL-1, KHD-1 (*PCD), BNA-1, DCH-1, NGH-1

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

JNT-14,DCH-7,AML-7 = 28 Nos (Regular Tender)02 Nos (AML-1 & DCH-1) Trial Tender

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

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

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

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

14. 90 T Crane 1 No AML-1

15. 75 T Crane 1 No JNT-1

16. 40 T Crane 1 No NGH -1

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

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

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

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

21. Dumper 100T 34 Nos Aml-3, BINA-2, DCH-3 JNT-15, KHD-3, NGH-8

22. 410 HP Dozer 08 Nos NGH-03,Jayant-03, Bina-01, Dch-01

3.6 Supply Orders placed for hEMMs during 2014-15

Equipment Capacity Qty. Name of Firm

Dumper 100 T 36 M/s Caterpillar India Private Limited

Dozer 410 HP 40 M/s BEML

Crane 9000 Kgs 17 M/s A C E

11000 Kgs 6 M/s Escort

Water Sprinkler. 70 KL 4 M/s BEML

Hyd. Excavator with Backhoe attachment 3.5 Cum 04 M/s BEML

3.7 Status pf Rate Contract amd Depot Agreement

Sl. No. head

No. of Case Files

Currently Valid

Under Process Fresh

1. Transmission spares 01 – 01 –

2. Drills 02 02 – –

3. Equipments 02 01 01 –

4. Engines 02 02 – –

5. Draglines 08 01 05 02

6. Dumpers 09 06 02 01

7. Shovels 10 02 08 –

8. Bearings 01 – 01 –

3.8 Central Workshop, Jayant

3.8.1 Central workshop, Jayant caters to the need of h ighly sophist icated Heavy Ear th Mov ing Mach iner ies (HEMMs) of diversified origin having wide variety of technologies by way of ready float assemblies of overhaul engines, transmissions, wheel motors, electrical motors, generators, transformers, and magnetorque assmeblies. Also, repair of mechanical assemblies by shafting/de-shafting, reclamation by welding/manufacturing which are also having imports substitution, Heat treatment etc. are under taken by CWS, Jayant.


27

3.8.2 General output from CWS, Jayant in last four years is as follows:

year

Engine Transmission Wheel MotorDipper handle (Nos.)

Over-hauled (Nos.)

Re-paired (Nos.)

Over-hauled (Nos.)

Re-paired (Nos.)

Over-hauled (Nos.)

Re-paired (Nos.)

2011-12 194 30 172 11 74 27 11

2012-13 167 35 135 13 74 45 17

2013-14 146 37 104 34 74 36 19

2014-15 170 39 127 10 81 19 10

year Electrical Machine Press Welding heat Treatment

KVA Manufacturing (Tons)

Repaired (Nos.) Tons Tons Tons

2011-12 229.5 82.9 1227 487 422 26.91

2012-13 264.1 151.28 1300 463 396 52.38

2013-14 230.0 143.95 1302 557 550 56.00

2014-15 196.1 143.23 1304 547 632 55.32

3.9 Magnetorque Assembly of P&h Shovel

year Repaired Quantity (Nos.)

2011-12 46

2012-13 64

2013-14 60

2014-15 42

3.10 Innovative Jobs Carried Out By Project Personnel

l A line boring arrangement was made departmentally at Engine Shop, CWS and Sri Pratik Sinha, CM(Excv), CWS was awarded at CIL level for the same.

l Coil Winding Machine from available sources was made at Electrical Shop, CWS. Sri Sourav Tripathi, AM(Excv) and his team were awarded at NCL level for the same

l Tes t ing a r rangement o f BH-100 Transmission assembly was made at

Transmission Shop, CWS by incorporating modification in the existing test bench.

l A very typical Drag Rope Drum assembly of 10/70 D/L was repaired at Press Section of CWS in the critical production month of March ’15 in spite of non-availability of jigs and fixtures.

l Repairing of broken pinion teeth of intermediate pinion shaft and intermediate gear wheel of 24/96 Dragline was carried out for commissioning of Dragline of Jayant Project.

3.11 Capacity Utilisation

3.11.1 The capacity utilization during the year under report as compared to previous year is given below :

Description 2014-15 2013-14

Capacity in M.cum. 189.86 193.75

Production in M.cum. 131.91 132.43

Capacity Utilization (%) 69.47 68.35

4.0 SALES AND MARKETING

4.0.0 Performance

4.0.1 The off-take vis-à-vis the target and Annual Contracted Quantity (ACQ) for the year 2014-15 in comparison to the previous year is furnished below :

2014-15 (in Mill Tes)

2013-14 (in Mill

Tes) Actual

% Achievement

of Target

% mat. of

linkage/ACQ

% Growth

over previous

yearTarget Linkage/

ACQ Actual

78.00 78.76 73.69 72.11 94.48 93.57 2.2

4.0.2 Power Sector continued to remain the main consumer for NCL, accounting for more than 94% of the total dispatches. Information in respect of coal supplies to major consumers of power sector is given below :

ANNUAL REPORT 2014-15 _________________________________________________________

28

Consumer

2014-15 (in Mill Tes) Mat. of

linkage/ ACQ(%)

2013-14 (in Mill Tes)

Growth over

previous year (%)

Linkage/ACQ Actual

NTPC 45.25 42.90 94.80 41.53 (+)3.30

UPRVUNL 13.62 12.32 90.45 12.81 (-)3.98Total Power Sector (Incl CPP)

74.85 69.65 93.68 67.21 (+)3.63

4.1 Supply of Deshaled coal from Bina Deshaling Plant

4.1.1 Against the target of 3.825 Mill Tes, Bina Deshaling Plant dispatched 3.441 Mill Tes to Rajghat, Hissar, Kota, Suratgarh, SSTPS, VSTPP, RHSTPP, Obra, Anpara, Paricha, Jhajjar and Arawali Thermal Power Stations during 2014-15 as compared to 3.778 Mill Tes during 2013-14.

4.2 Spot e-Auction Scheme

4.2.1 Spot e-Auction scheme was formulated under the provision of New Coal Distribution Policy (NCDP) circulated by the Ministry of Coal during Nov.’07. For procurement of coal under the said scheme, buyers are to bid for the desired quantity at prices above the “Floor Price”. CIL notified that w.e.f. Jan’12, “Floor Price” of coal with GCV upto 5500 Kcal/Kg is to be fixed at 20% above notified price and for coal with GCV above 5500 K.cal/Kg “ Floor Price’ will be same as notified price.

4.2.2 Quantity booked along with financial gain under the above scheme during 2014-15 is as under :

Scheme PeriodQuantity Booked (in lakh

tes.)

Financial gain above notified price (approx.) (Rs. in crore)

e-auction scheme (Spot) (Coal by Road)

April’14 to March’15 21.88 322.83

e-auction scheme (Spot) (Coal by Rail)

April’14 to March’15 5.14 53.36

e-auction scheme (Spot) (Reject by Road)

April’14 to March’15 1.39 3.17

Total 28.41 379.36

4.3 Sector-wise and Mode-wise Offtake.

4.3.1 The sector-wise and Mode-wise offtake of coal during the year 2014-15, in comparison to 2013-14 is given below :

(Fig in Mill Tes)

Sector/Mode 2014-15 2013-14

Sector-wise Offtake

Power (excluding (CPP) 69.65 67.21

Cement 0.13 0.15

Others 3.91 4.75

Total 73.69 72.11

Mode-Wise Offtake

Rail 25.18 25.74

MGR 35.63 35.08

Road (External) 9.26 7.29

Road (Internal)* 3.62 4.00

Total 73.69 72.11

* Raw coal transported by road to Bina Deshaling Plant has been considered as ‘Road (Internal)’.

4.4 Wagon Loading

4.4.1 Information in regard to average wagon loading through I/R rakes against target and as compared to previous year is given below :

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

Actual

% Achievement

of Target

Variance from last year (%)Target Actual

1357 1190 1227 87.70 (-) 3

4.5 Coal Price Revision

4.5.1 Coal prices were revised w.e.f. 28th May, 2013 (Date of revision of coal price mentioned in last year’s report as 27th May, 2014 was due to typographical error).


29

5.0 QUALITy CONTROL

5.0.1 Sampling Arrangement

As per the directives of Ministry of Coal, Govt. of india, NCL has switched over to Independent Third Party Sampling appointed by power consumers at loading end from the month of February, 2015. Consumers l ike NTPC, UPRVUNL, RRVUNL, HPGCL and Lanco have appointed their own Independent Third Party Sampling Agency at loading end for sampling and analysis work.

Prior to introduction of Independent Third Party Sampling Agency by consumers, sampling and analysis work was being carried out at Loading End by third party agency appointed by NCL/CIL during 2014-15.

5.1 Sizing of Coal

5.1.1 The entire dispatch of coal during the year 2014-15 was made after proper sizing as detailed below :

Means of sizingof coal

2014-15(in %age)

2013-14 in %age)

Through CHP/Feeder Breaker 87.77 84.05

Through Dozer 12.23 15.95

Total 100 100

5.2 Weighment of coal

5.2.1 During 2014-15 almost 100% coal supplies have been weighed on electronic weighbridges to the full satisfaction of consumers.

5.3 Quality complaints and action taken thereon

5.3.1 During 2014-15 approx. 21nos. of

complaints were received from power houses. The nature of complaints were primarily on account of oversized/ uncrushed coal supplied to the power houses in rakes loaded from wharfwall sidings at Krishnashila, Dudhichua (Jayant) and Spur Siding (Block ‘B’). Details of complaints received during the last three years are given below :

yearNature of complaints (Fig. in nos.)

Oversized Coal

Poor Quality

Foreign Materials Total

2012-13 40 33 0 73

2013-14 32 14 0 46

2014-15 17 04 0 21

5.3.2 Coal was loaded at Spur Siding (Block B) after passing through an Interim CHP and Dozer crushing. Krishnashila Project is having two Feeder Breakers for sizing the coal. However, in order to ensure maximum sizing and crushing, manual labourers were also deployed. Loading at Dudhichua Wharfwal l (Jayant Project) is made by pay loaders after crushing the coal by means of dozer. Adequate measures were taken at these projects while loading Railway rakes so as to ensure proper sizing and quality of coal, free from stone/ shale and extraneous materials. However, since sizing through Dozer crushing and manual breaking is not fully effective, it was difficult to achieve sizing to the ful l satisfaction of the consumers particularly when loading from the above sidings was done round the clock including nights shifts to maximize coal supplies.

6.0 STOCK OF COAL

6.0.1 The Measured stock of raw coal as on 31.03.2015 was 4.908 Million Tes,

ANNUAL REPORT 2014-15 _________________________________________________________

30

equivalent to 21 days of coal production in terms of average daily target for 2014-15. The stock of raw coal as on 31.03.2014 was 6.106 Mill Tes.

6.1 Stock of stores and spares

6.1.1 Information in regard to inventory of stores and spares as on 31.3.2015 as compared to 31.3.2014 is tabulated as under :

Sl. No.

DescriptionAs on

31.3.2015As on

31.3.2014

(i)Value of Inventory (Rs. in crores).

346.89 Crores 452.13 Crores

(ii)Inventory in terms of months’ consumption.

2.63 Months 3.4 months

6.1.2 The percentage decrease in inventory over last year is 23.27%.

6.2 Disposal of Scrap

6.2.1 In the year 2014-15 the disposal of scrap was of value of Rs.19.72 Crores. In the year 2014-15, NCL have finalized sale of scrap value of Rs. 20.38 Crores.

6.2.2 Compared to realization of cash against scrap value of 2013-14 of Rs.10.77 Crores, the cash realized in 2014-15 was Rs.14.73 Crores which was 36.76% increase over the previous year.

6.2.3 In the year 2014-15 the Burnt oil disposed-off was 1038 KL in comparison to previous year’s Burnt oil of 1851.70 KL.

7.0 SAFETy

7.0.1 The accidents statistics for the year 2014-15 as compared to previous year is furnished below :

Sl. No. Particulars 2014-2015 2013-2014

1. No. of fatal accidents 4 8

2. No. of fatalities 4 8

3. No. of serious accidents 13 14

4. No. of serious injuries 13 14

5. Fatality rate per MT output 0.055 0.117

6. Fatality rate per 3 lakh manshift 0.301 0.569

7. Fatality rate per 1000 persons employed 0.246 0.477

8. Serious injury rate per MT output 0.179 0.204

9. Serious injury rate per 3 lakh manshift 0.977 0.996

10. Serious injury rate per 1000 persons employed 0.800 0.835

11. Fatality rate per MM3 output 0.015 0.032

12. Serious injury rate per MM3 output 0.050 0.055

7.1 Safety Measures & Training

7.1.1 Measures taken for improvement in safety standard in Mines of NCL.

1. Statutory Rules and Regulations are implemented religiously and strenuous efforts have been made for achieving the highest standards of safety.

2. Simulators for the training 100 Te. Dumper operator and 85 Te. Dumper operator were installed on 28.11.2012 in CETI. 397 Nos. & 419 Nos. of Dumper Operators were trained in the year 2013 & 2014 respectively.

3. Company level Tripartite Safety committee meetings attended by DGMS Officials, Trade Unions & Management were held on 17.05.2014 & 17.01.2015.


31

4. Project level Tr ipart i te Safety Committee Meetings were held at Amlohri, Nigahi, Jayant, Dudhichua, & Khadia Projects on 09.12.14, 10.12.14, 11.12.14, 12..12.14 & 13.12.14, respectively.

5. Task force has been constituted consisting of senior officials of Trade union and GM(S&R) every month for surprise inspection of mine.

6. There is Multi-level monitoring of the implementation of the Safety Plans through Internal Safety Organization at company level and Safety officer perform it at Area level.

7. There is regular monitoring of status of implementation of recommendations of Tripartite committee, CIL Safety Board, Standing Committee on Safety, 10th and 11th Safety Conferences etc.

8. Lock-Out & Tag Out (LOTO) system of Electrical shut down procedure has been implemented in all the mines of NCL.

9. Special drive has been conducted for checking of road worthiness of the contractors’ vehicle/HEMM from 24th March to 31st March’ 2015

10. There is a system of continuous education, training and retraining of the employees with the Modern Training Aid/Electronic Media/spot training and lectures at MTK office.

11. Special drive to implement wearing of seat belt by dumper operators has been conducted in all the Projects.

12. Back shift inspection by senior officers in the Projects have been implemented.

13. Safety Management Plan of all the ten Projects have been prepared and are being implemented.

14. Safe Operating Procedures have been enforced in all the Projects to reduce dumpers accident.

15. Monitoring of Dragline Dumps :-

(i) Measurement of corridors of dragline OB dumps(Dragline sitting level and coal roof of Turra seam level) by Area & HQ Team.

(ii) A ”Scheme for Development of guidelines for safe dragline dump profile under varying Geo-Engineering condition in opencast coal mines of NCL for implementation” has been conducted by BIT Mesra, Ranchi under R&D Programme of CIL.

7.2 Annual Mines Safety Week

Annual Mines Safety Week 2014 was celebrated from 1st January 2015 to 07th January 2015. During the Safety Week, a special safety drive has been conducted on different subjects. The Prize distribution ceremony and the final day function was organized on 18th January 2015 at Nigahi Project.

8.0 PROJECT PLANNING AND DEVELOPMENT.

8.1 Completed Projects:

8.1.1 There are fifteen completed coal mining projects in NCL, In addition there are three completed OBR Augmentation Schemes and Seven Non-Mining completed projects costing Rs 5 Crs and above. The details of above projects are given below :

ANNUAL REPORT 2014-15 _________________________________________________________

32

S.N Name of the Project

Capacity (Mtpa)

Sanc-tioned Capital (Crs.)

Sch. dt. of Com-

pletion

Actual date of

Com-ple-tion

MINING1 Bina 4.50 168.64 3/87 3/88

2 Jayant 10.00 375.04 3/91 3/90

3 Amlohri 4.00 527.11 3/93 3/93

4 Kakri 2.50 137.80 3/91 3/93

5 Dudhichua Phase-I (Merged with DCH Expan-sion 10Mtpa)

5.00 289.68 3/93 3/93

6 Jhingurdah 3.00 63.11 3/87 3/87

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

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

9 Gorbi Expn (Merged with Gor-bi) - Closed

1.50 19.26 3/89 3/89

10 Nigahi Phase-I (Merged with Nigahi Phase-II 10Mtpa)

4.20 648.04 3/95 3/95

11 Khadia 4.00 588.75 3/94 3/97

12 Dudhichua Expn OC (RCE)

10.00 1281.39 # 3/04 3/04

13 Nigahi Expansion OC

10.00 1846.49 # 3/04 3/04

14 Kakri Coal Aug. Scheme OC

0.50 48.79 3/04 3/06

15 Bina Extension 6.00 168.97 12/13 12/13

OBR AUGMENTATION SChEMES1 Jayant OBR

Scheme41.26 3/96 3/96

2 Jhingurdah OBR Scheme

42.98 3/96 3/96

3 Bina OBR Scheme

48.28 3/01 3/00

NON-MINING1 Central Workshop 68.72 03/02 3/022 Integrated Water

Supply Scheme18.87 3/89 3/89

3 Nehru Shatabdi Chikitsalaya

19.91 4/97 8/02

4 Communication Scheme

5.04 4/96 3/96

5 Water Supply Scheme Phase-I&II

9.28 4/99 06/98 &

04/996 Bina Deshaling

Plant16.69 8/97 08/97

7 132 KV SS Madhauli(RCE)

5.43 03/01 03/01

# Including the sanctioned capital of Nigahi Phase-I (4.2 Mtpa ) and Dudhichua Phase-I (5.00 mtpa).

8.2. On-going Projects and Schemes.8.2.1 There are five mining projects costing Rs

100 Crs and above under implementation as mentioned below:

S.N. Name of the Project

Capacity (Mtpa)

Sanc-tion

Capital (Crs.)

Sch. dt. of

Completion

Act. dt. of Completion

MINING

1 Krishnashila OCP

4.00 741.62 3/2013 3/2016

2 Amlohri OCP (4 to 10 Mtpa)

6.00 1143.54 3/2016 3/2016

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

4 Nigahi Ex-pansion (10 to 15 Mtpa)

5.00 259.40 3/2012 3/2016

5 Khadia Expansion(4 to 10 Mtpa)

6.00 1131.28 3/2018 3/2018

8.3. Future Programme & New Projects :

8.3.1 Five numbers of new/expansion Open Cast Projects (OCP) have been identified during XII Five Year Plan.

1. Dudhichua Expansion OCP (10.0 to 15.0 Mtpa)

2. Jayant Expansion OCP (10.0 to 20.0 Mtpa)

3. Semaria OCP (2.00 Mtpa)

4. Bina-Kakri Amalgamation OCP (10.0 Mtpa)

5. Block-B Expansion OCP (3.5 to 8.00 Mtpa)

8.3.2 The status of approval of these projects and their Forest Clearance (FC) and Environment Clearance (EC) is given below :


33

1. Dudhichua Expansion OCP (10.0 to 15.0 Mtpa) :

Expansion Project Report has been approved by NCL Board in Jul’08 with outsourcing option with a capital outlay of Rs 326.57 Crs. Project could not be implemented as FC & EC for incremental project are required to be obtained. However, PR is being recasted for 20.0 Mtpa by CMPDIL.

2. Jayant Expansion OCP (10.0 to 20.0 Mtpa) :

Expansion Project Report (EPR) was recommended by NCL Board on 31.01.2015 for final approval of CIL Board with sanctioned incremental capital of Rs 1226.38 Crs for additional OB outsourcing option.

3. Semaria OCP (2.00 Mtpa) :

It’s a green field project which was accorded In-Principle approval by NCL Board in May’11 for capital outlay of Rs 141.49 Crs. Land required for the project has been notified and vested with NCL under CBA (A&D) Act, 1957. FC & EC are to be obtained.

4. Bina-Kakri Amalgamation OCP (10.0 Mtpa) :

Bina-Kakri Amalgamation OCP (10 Mtpa) has been approved in-principle by NCL Board with initial capital outlay of Rs 1291.98 Crs. Notification of 180 Ha additional land under Sec 9(1) of CBA (A&D) Act, 1957 has been issued on 17.12.2014 & published in Gazette of India. Proposal for publication of vesting order under Sec (11) of CBA (A&D) Act, 1957 has been submitted to MoC on 14.02.2015. EC & FC are required to be obtained.

5. Block-B Expansion OCP (3.5 to 8.0 Mtpa) :

Project Report for 8.0 Mtpa is being recasted by CMPDIL.

8.4 EXPLORATION & DRILLING

The drilling for geological exploration is done through CMPDI, RI-VI.

( in Mill Tes)

2013-14 2014-15 2015-16

Actual Target Actual Target (Proposed)

CIL Non-CIL CIL Non-CIL Total

CMPDI 0.00 24123.00 27500.00 10220.00 15117.00 25337.00 27500.00

MECL 21048.00 18714.00 52000.00 26660.00 19843.00 46503.00 50000.00

8.5 Status Report for the Work of Excavation/Removal of Overburden by hiring of Equipment in NCL as on 31.03.2015 is as under :

Sl. No.

Project Estimated Quantity (MBCM)

Period (Years)

Contract awarded to

Date of Com-mencement

Scheduled date of

completion

Remarks

1 Am-lohri -I

97.80 5 M/s BGR Mining & Infra Pvt. Ltd., Nellore (AP).

01.03.2011 29.02.2016 Work completed on 02.04.2015

2 Block-B 64.43 5 M/s National Construc-tion Co., Bhuj-Kutch (Gujarat)

01.06.2010 31.05.2015 -

3 Dudhi-chua

49.00 3.25 M/s JP-ASD-DHOLU (JV), Ah-medabad

03.12.2010 02.03.2014 Work completed on 02.02.2015

4 Kr-ishnash-ila

59.36 5 M/s Monte-carlo Ltd., Ahmedabad

21.01.2013 20.01.2018 -

5 Jhingur-da

19.41 3 M/s AMR-Saisu-dhir (JV), Hyderabad

21.07.2013 20.07.2016 -

6 Khadia 59.2806, 7.26 (RH)

5 M/s Monte-carlo Ltd., Ahmedabad

03.06.2013 02.06.2018 -

7 Amlohri -II

100.00 5 M/s Sadbhav Engineering Ltd., Ah-medabad

14.07.2013 13.07.2018 -

ANNUAL REPORT 2014-15 _________________________________________________________

34

8 Kakri New

12.91 3 M/s Rungta Projects Ltd., Anpara, Sonebhadra (UP)

27.10.2013 26.10.2016 -

9 Khadia New


04.08.2014 03.08.2017 -

10 Bina 105.6 5 M/s GSCO Infrastruc-ture Pvt. Ltd.

16.11.2014 15.11.2019 -

11 Jayant East

26.62 3 M/s Gajraj Mining Pvt. Ltd.

17.11.2014 16.11.2017 -

12 Nigahi 54.00 3 M/s Saumya Mining Ltd.

20.02.2011 19.02.2014 Work com-pleted on

30.09.2014

13 Nigahi New

75.00 3 M/s BGR Mining & Infra Pvt. Ltd.

18.11.2014 17.11.2017 -

14 Dudhi-chua West

27.85 3.3 M/s Gajraj Mining Pvt. Ltd.

08.12.2014 24.01.2018 -

15 Dudhi-chua East


14.02..2015 13.02.2018 -

16 Jayant West

81.97 4.67 M/s VPR Mining Infrastruc-ture Pvt. Ltd.

01.12.2014 12.08.2019 -

17 Am-lohri -III

15.00 3 M/s Dholu Construc-tions & Projects Ltd.

09.03.2015 08.03.2018 -

9.0 ENVIRONMENTAL PROTECTION9.1 Management of NCL’s Economic,

Environmental, Energy and Social Concerns:

9.1.0 NCL has well defined and documented manual, policy, procedures and guidelines for Sustainable Development under its Integrated Management System (IMS) complying with international standards of ISO 9001, ISO 14001, OHSAS 18001.

9.2 NCL’s Corporate Managemet Policy

9.2.1 NCL has voluntarily chosen to implement a comprehensive system for simultaneous m a n a g e m e n t o f o u r e c o n o m i c ,

environmental and social concerns as a part of our business agenda.

9.2.2 NCL is committed to:

1. Assured quality of our coal supplies.

2. Optimum utilization of available resources.

3. Cont inual improvement in the management and performance of our system.

4. Ensuring prevention of pollution, injury and ill health due to our work activities.

5. Comply with all applicable legislations and other subscribed obligations.

6. Respect all ILO and other international charters on social and labour issues.

7. Promoting importance of the concept of sustainable development.

8. Ensure that this policy is effectively implemented, maintained. and communicated.

9. Review this policy regularly to ensure i ts continual improvement and relevance.

10. Make this policy accessible in a comprehensible form to all personnel engaged for NCL in any manner.

11. Make this policy publicly available in an effective form and manner to all interested parties, upon request.

9.2.3 NCL’s Energy Management Policy

We are committed to continually improve the energy performance of all our process and systems. So, we ensure that :

1. Adequate information and resources always remain available to achieve our energy objectives and targets;


35

2. We always comply with all our energy related obligations, whether legal or otherwise subscribed; and

3. We always promote the purchase of energy efficient products, services, and designs.

9.3 Environmental Conservation Measures:

9.3.1 F o r e s t / E c o l o g i c a l M i t i g a t i v e Measures :

Forest clearances (FCs) have been accorded to the NCL projects by the Govt of India, MoEF/ concerned State Governments (of UP and MP). Til l 31.03.2015, total 8,018.006 hectares forest land has been granted forest clearances, out of which, total 7,838.500 hectares Forest Land has been handed over to the NCL Projects by the concerned State Forest Departments. During 2014-15, total 170 ha. forest lands (150 ha. for Bina Extension by the MP Forest Department and 20 ha. for Krishnashila project by the UP Forest Department) have been handed over.

9.3.1.1 These clearances stipulate certain conditions to be complied with by the user agency. These conditions basically relate to payment of Net Present Value (NPV), compensatory afforestation (CA), reclamation of mined out areas, creation of safety zones around mining areas, meeting fuelwood needs of labourers and employees engaged in mining activities etc. The basic objectives of these conditions are to ameliorate/mitigate the impacts on forests and its various ecosystem attributes (wildlife, flora, fauna, bio-diversity etc.) resulting from coal mining activities. Brief details of various forest/ecological mitigative measures undertaken by the NCL projects are given below :

9.3.2 Compensatory Afforestation

The compensatory afforestation is the afforestation done in lieu of the diverted forest lands for coal mining and other purposes.

Earlier, compensatory afforestation was done over equivalent area of non-forest land. There is a special provision for Central Government/Central Government Undertaking projects. According to that compensatory afforestation is to be raised on degraded forest lands twice the area of forest land being diverted. The State Forest Departments are to identify “blank” or “degraded” forest land for compensatory afforestation and the user agency has to deposit the amount for compensatory afforestation with the concerned State Forest Departments.

In lieu of the diverted forest lands, total 4,323.869 hectares non-forest lands have been purchased by the NCL and handed over to the concerned State Forest Departments for compensatory afforestation along with the required costs of compensatory afforestation. Besides this, total 3,951.492 hectares degraded forest lands have been identified by the concerned State Forest Departments for the purpose of compensatory afforestation and the NCL has paid Rs. 4791.967 lakhs for compensatory afforestation over these lands.

9.3.3 Net Present Value (NPV) :

NCL has paid total Rs. 9,802.298 lakhs towards Net Present Value (NPV) as per the stipulated condition of forest clearances.

9.3.4 (Biological) Reclamation of Mined Out Areas :

After Over Burden Dumps, which are made by back filling of mined out areas, after having achieved the planned heights, are technically reclaimed by means of retaining walls, terraces/steps etc. Afterwards, biological reclamation works are carried out through plantations of suitable local species.

During the year 2014-15, 91.41 ha. OB dumps areas have been biologically reclaimed by planting 3.20 lakhs plant

ANNUAL REPORT 2014-15 _________________________________________________________

36

saplings. Till 31.03.2015, total 3261.27 ha. have been biologically reclaimed by planting total 141.76 lakhs plant saplings.

9.3.5 Creation of Safety Zones :

Safety Zones consisting of dense tree covers have been created around mine boundaries. Besides this, NCL has paid the costs of afforestation over degraded forest lands to the extent of one and half times the Safety Zone areas.

9.3.6 Social Afforestation :

NCL has undertaken extensive afforestation in residential colonies, road sides etc. This has resulted into development of extensive green cover all around, which helps in checking air, water and noise pollution. During the year 2014-15, total 1,88,500 plant saplings have been planted under social afforestation programme. Till 31.03.2015, total 84.75 lakh plant saplings have been planted under social afforestation programme.

9.3.7 Till 31.03.2015, total 226.51 lakhs plant saplings have been planted for biological reclamation and social afforestation programme.

9.4 Pollution Control Measures

9.4.1 Air Pollution Control Measures

(i) Automatic sprinklers have been installed at coal receiving pits and are actuated through sensors. Fixed sprinklers have been installed at coal bunkers, transfer points and loading points and are operated through control valves.

(ii) Dust cyclones are provided at the bottom of receiving pit of the crusher house.

(iii) All the Coal Handling Plants (CHPs) are fully enclosed to reduce coal dust emission outside CHP.

(iv) Drills are provided with dust extractors.

(v) Approach roads to mines and service

roads are provided with black topping to reduce dust generation.

(vi) Mobile water sprinklers are deployed for dust suppression on haul roads on continuous basis.

(vii) Thick green belts; tall plants with broader leaves have been provided as curtain at mine boundary to arrest air borne dust. The total numbers of trees planted till 2013-14 is 2.21 crores.

(viii) Non-active Over Burden (OB) dumps are provided with vegetative cover to prevent dust emission under OB Dump reclamation plans.

(ix) Dust proof cabins have been provided for operators in Heavy Earth Moving Machines (HEMM). Dust masks have been provided to employees exposed to dust.

(x) Fire hydrants system has been installed for CHPs and coal dumps.

(xi) Moist coal is loaded to Merry Go Round (MGR) through Rapid Loading System.

(xii) Routine maintenance and periodic overhauling of HEMM are done to reduce gaseous emission.

(xiii) Regular ambient air quality monitoring is being done to monitor the air quality and corrective actions are being taken in case of any adverse report.

9.4.2 Water pollution control measures

Water pollution control has been done through Silt Arrestors, 10 Effluent Treatment Plants (ETPs) for effluent generated from Mine, Workshops, CHPs and 8 Domestic Sewage Treatment Plants (DSTPs) for colony sewage of working mines are in operation.

(a) Effluent Treatment Plants :

Integrated Effluent treatment Plants have been designed for treatment of discharge from mine, workshop


37

and CHP. The plants contain oil and grease recovery system through traps, removal of suspended solids through clarifiers after chemical dosing at flush mixer, sludge drying beds, pipeline and pumping arrangements. Clean treated water is re-used for water sprinkling on haul roads, sprinklers and industrial purposes.

(b) Construction of new ETPs : Two more ETPs are proposed to be

constructed as detailed below :

(i) Scheme of ETP construction for Krishnashila Project, prepared by CMPDIL, Ranchi has been approved by NCL. It is to be constructed shortly.

(ii) Scheme of ETP construction for Block-B Project prepared by CMPDIL, Ranchi has been approved by NCL. Work Order has been issued and it is in the process of construction.

(c) Domestic Sewage Treatment Plants (DSTPs) :

Eight Domestic Sewage Treatment Plants have been constructed in townships with activated sludge process. The plants contain aeration units for oxidation, clarifiers for removal of suspended solids, sludge drying beds, grit removal facilities, sewer lines, manholes, pump houses, control room, etc. Treated water is re-used in horticulture/ agriculture and construction activities. Dried sludge, valuable manure is used in agriculture.

(d) Construction of new STPs :

One more STP is proposed to be constructed as detailed below:

(i) Final scheme for construction of STP for Block-B Project, prepared by CMPDI, Ranchi, has been approved and it is in process of tendering.

(e) Silt Arrestor :

Substantial amount of silt is carried along with the run off water. Catch drains with silt arrestors are provided in mine areas and are cleaned at regular intervals. Check dams and siltation ponds are provided to arrest silt flowing to the water course. Gabions (loose stones packed in wire crates) with filter pad at toe of the active dumps and across water course, protect against escape of silt into the water body.

(f) Oil recovery :

Floating oil, recovered from Oil and Grease traps is collected in drums which are stored in a raised paved area having drains to collect back spillages. Used Oil collected during maintenance of vehicles and HEMM are collected and stored in lid tight leak proof drums. Authorization from State Pollution Control Board is duly taken for each individual Project for storage of used oil which is hazardous waste (Cat. 5.1). This used oil is disposed by e-auction through authorized recyclers.

(g) Disposal of hazardous solid waste containing oil :

This comes under hazardous Waste Category 5.2. Authorization from State Pollution Control Board is duly taken and these wastes are stored in specifically constructed sheds and disposed off through authorized Common Treatment Storage & Disposal Site, available in the State.

9.4.3 Noise Pollution Control Measuresi. Blasting operations are carried out

between 13:00 to 14:00 hours only i.e. during change of shifts.

ii. Ear-muffs and ear-plugs are provided to employees wherever required.

iii. Curtain plantations have been

ANNUAL REPORT 2014-15 _________________________________________________________

38

provided in and around colonies and along mine boundaries.

iv. Routine maintenance of all equipment.9.4.4 Special activity: Eco restoration work

in NCL in 2014-15

Presently, the NCL is carrying out Ecological Restoration of mines out areas in Krishnashila and Nigahi projects on 5 ha. each. Over burden dumps in order to convert degraded mined out area into productive ecosystem as well as to enhance biodiversity with the technical guidance and assistance of the Forest Research Institute, Dehradun.

9.4.5 Technical & Biological Reclamation of External OB Dumps

Vegetative covers over bare OB dumps have been provided in major projects. It ensures stability to dump slopes, minimization of erosion due to wind and rain water. The dumps have been reclaimed by constructing proper benching and providing reinforced grass-mat covers, gabions and drains. The slope surface has been covered with mixture of grass seeds, agricultural soil and manure laid in coir/hay/straw/ geo-textile mat. The plantation of trees, shrubs and grass has been done profusely on crowns of dumps, ring bunds, dykes, recess, slopes etc. to ensure thick biological growth. For maintaining vegetative cover, water sprinklers have also been deployed at specific points. Large scale plantaion carried out in slopes and top of completed OB dumps.

9.4.6 health Study by NIOh

A study of the health of NCL employees and people living in surrounding areas is being doneby NIOH, Ahmedabad. First phase of the study has been completed during 2014-15 and second phase will be taken up during 2015-16.

9.5 Impact Of Above Measures On Pollution :

Air Pollution Control Measures and Water Pollution Control Measures have been adopted to maintain air and water

quality within permissible limit as per guidelines stipulated by State Pollution Control Boards (SPCBs) and Ministry of Environment & Forest (MOEF), statutes and legislation applicable to coal mines. Noise Pollution Control Measures have been adopted to maintain noise level within permissible limit. The results of monitoring have been found within permissible limits.

9.6 Environment Clearances

All the Open cast Projects are operating with Environmental Clearance from Ministry of Environment & Forest, New Delhi. The consent for Air and Water is also taken from the Pollution Control Boards.

10.0 ISO ACCREDITATION

10.0.1 Integrated Management System certificates :

NCL is having an Integrated Management System Certification as follows:

“Your company continues to hold the latest version of ISO 9001 :2008 , ISO 14001:2004 and OHSAS 18001: 2007 certifications for whole company in respect of the following activities;

Mining and Supply of Coal including related field support, Corporate Management services and provision of diagnostic, curative, rehabilitative and preventive health care services.”

These Certifications indicates NCL’s commitment to Quality, Environment, Occupational Health and Safety at par with Global Standards.

11.0 hUMAN RESOURCE DEVELOPMENT & INDUSTRIAL RELATIONS

11.1 Manpower

11.1 Manpower strength of the company (excluding apprent ices under the Apprentices Act, 1961) as on 31st March, 2015 was 16226 against 16741 as on 31st March, 2014. The breakup of manpower strength is given below :


39

(Fig. in Nos.)

Sl.No. Particulars As on 31.3.2015

As on 31.3.2014

1 Executives 1795 1771

2 Supervisors 1518 1667

3 Clerical Staff 1097 1057

4 Highly Skilled/Skilled 8569 8235

5 Semi Skilled/Unskilled 3247 4011

Total 16226 16741

11.2 human Resource Development11.2.1 The training and skill development part of

NCL employees looked after by Central Excavation Training Institute (CETI) is as under:• Providing learning opportunities

to the employees to narrow down performance gaps.

• To develop training/ reference materials and to arrange special programmes on new equipment for all level of employees.

11.2.2 NCL has a Central Excavation Training Institute (CETI) at Singrauli and nine Vocational Training Centers (VTCs) in different projects. Need based training is provided to Workmen, Operators, Supervisors and front line Managers. The major training programmes conducted centrally at CETI are as under :• Basic courses for HEMM (Dumper,

Shovel, Drill, Pay loader and Dozer) Operators, technicians and unskilled workers.

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

• ‘Original Equipment Manufacturers’ P r o g r a m m e s o n t e c h n o l o g y upgradation.

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

• Technical development programmes for executives.

• Basic Computer Learning courses for executives, supervisors and other staff.

• Workers’ Development Programmes including Leadership Development

Programmes.• Structured Training Programme

for Mining, Excavation and E&M Supervisors.

• Training Programmes for Safety Committee Members and Workmen’s Inspectors.

• Dumper simulator 85T/100T at CETI is an upgraded tool of training for Dumper operators (Basic & Refresher both).

• Training Programmes on “Preparatory Programme for Retiring Executives”.

• Training Programmes on “Literacy Drive”.

11.2.3 CETI organized 18 Workshops and Seminars during the year 2014-15 for middle and senior level management groups and staff focusing on contemporary issues. The statutory training requirements are met by VTCs.

11.2.4 Information about the persons who underwent different training programmes during the year 2014-15 as compared to the year 2013-14 is given hereunder :

Sl. No.

Particulars 2014-15 2013-14

i) Number of persons trained through Vocational Training Programmes at VTC.

19205 18198

ii) Number of persons trained at CETI :

(a) Regular training programmes 2845 2576

(b) Workshops & Seminars 766 2169

(c) Technical Training (Out Side)/OEM

132 170

TOTAL 3743 4915

iii) Number of persons trained through outside company Programme in India.

a) General Management Programme

50 125

b) Techno-managerial courses 120 190

TOTAL 170 315iv) Number of persons trained abroad :

a) General Management Programme

06 NIL

b) Techno-managerial courses 00 NIL

TOTAL 06 NIL

ANNUAL REPORT 2014-15 _________________________________________________________

40

11.3 Reservation for Scheduled Castes (SCs)/Scheduled Tribes (STs) and other Backward Classes (OBC) in recruitment and promotion.(i) Recruitment : The Presidential Directives in the

matter of recruitment of Scheduled Castes (SCs), Scheduled Tribes (STs) and Other Backward Classes (OBCs) have been implemented in NCL.

(ii) Promotion : A total of 216 candidates belonging

to SC community and 112 candidates belonging to ST community were promoted during 2014.

The representation of SC and ST candidates in total manpower is as under :

As on Total Man-

power

SC Candidates Number in %

ST Candidates Number in %

31.03.2015 16226 3122 19.24% 1229 7.57%

31.03.2014 16741 2669 15.94% 1269 7.58%

11.4 Appointment of Land Oustees.

11.4.1 During the financial year 36 Land Losers were appointed.

11.5 Workers’ Participation in Management

11.5.1 The worker’s participation in management in NCL is encouraged at all levels and is operative to every possible extent. There is system of bipartite dialogue to discuss and address not only the grievances but also the issue pertaining to the entire Management of the Mine.

11.5.2 The meeting of Joint Consultative Committees (JCC) takes place at regular intervals at Project/Unit level as well as Corporate Level. Further meeting of Safety Committee, Welfare Board, Medical Advisory Board, House Allotment Committee, Canteen Committee etc. are also held regularly. In all above forums the Trade Union Representatives do actively participate and contribute.

11.6 Industrial Relations11.6.1 Industrial Relations in our Company

continue to be highly cordial and harmonious. The participative way of functioning of management facilitates settling the disputes/grievances amicably through discussions, which in turn has resulted in maintaining over all healthy ethos of relations in Northern Coalfields Limited. However, few instances of Industrial Relation disturbances during 2014-15 are as under.

Sl. No. Particulars 2014-15 2013-14

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

b) Partial 1 1

2. Law & Order disturbances -a) Relay Hunger strike 1 2

b) Dharna/Demonstration 5 8

c) Assault NIL NIL

d) Rowdism NIL NIL

e) Gherao NIL 2

f) Obstruction NIL 2

g) Non Co-operation activities NIL NIL

3. Man-days Lost 10075 1478

4. Loss of Production -Coal (Tonne) 241000 7000

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

12.0 EMPLOyEES WELFARE AND SOCIAL AMENITIES.

12.0.1 In NCL proper emphasis is given on employee welfare and efforts are made for improvement in welfare and social amenities like Housing, Water supply, Medical, Education, Recreational facilities etc.

12.1 housing & Township

12.1.0 The total number of standard houses as on 31.3.2015 are 15959. However, taking into account the 1501 Non-standard houses also, the total number of houses is 17460. Excluding 1325 houses allotted to different agencies, balance available houses are 14458, which provides 100% housing satisfaction to the employees of NCL.


41

12.2 Water Supply.

12.2.1 The entire population of 79795 has been covered under the water supply arrangements upto 31.03.2015. In regard to availability of water, there is 100% satisfaction to the employees in the company.

12.3 Educational Facilities.

12.3.1 The company has established 7 DAV Public Schools, 2 Kendriya Vidyalaya and 01 Delhi Public School in its command area. Other Schools in this area are also supplementing the education facilities and given infrastructural support from NCL. An amount of Rs.920 lakhs (Prov) was incurred towards financial support to the Schools of NCL for student strength of 13,593. An amount of Rs.63 lakhs was given towards the Higher Technical Fee reimbursement to the wards of Wage Board employees of NCL.

12.4 Medical Services

12.4.1 With the aim of achieving a healthy work force by keeping the executives and staffs, their dependant family members healthy physically, mentally, socially and occupationally and also free from diseases through preventive, curative, qualitative and community health care approach, Medical discipline of NCL is providing Primary, secondary and tertiary care in some of its departments with its Specialists Doctors, General Duty Medical Officers, Paramedical Staff, & Non Medical Staff with its excellent infrastructure. These services are also being offered to local population residing within the catchment area of NCL through regular services and also through CSR activities.

12.4.2 NCL has three hospitals with total strength of 200 beds. There are two regional hospitals namely Central Hospital, Singrauli with bed strength of 35 and Bina Hospital with 15 beds. The main hospital is Nehru Shatabdi Chikitsalaya with 150 beds, located centrally in Jayant.

12.4.3 Besides the above 3 hospitals altogether there are 11 dispensaries, one in each project except Dudhichua Project where 2 dispensaries are existing.

12.4.4. Nehru Shatabdi Chikitsalaya (NSC) NSC is functioning as Referral and

Specialized Hospital for all Project Dispensaries and Regional Hospitals, providing secondary care for most of the cases and tertiary care in few of its discipline round the clock, 24 x 7 & 365 days in a year. Patients are also being referred from nearby PSU, Govt. and Private hospitals, PHC and District Hospitals. Patients requiring services of Medicine, Surgery, Orthopedics, Pediatrics, Obstetrics & Gynecology, Eye, ENT and Dental disciplines are available in regular OPD. Most of the necessary investigations are carried out in the department of Pathology which also has a fully functional Blood Bank. In department of Radiology facilities of Ultrasonography, CT Scan, MRI, Mammography are available. NSC has a Non-invasive Cardiac Lab. with facilities of ECG, Echocardiography with Color Doppler, TMT, Continuous Ambulatory Holters Monitoring & PFT. In the field of Nephrology provision for Haemodialysis and CAPD are in vogue. Specialized facilities e.g. Diagnostic Upper G. I. video Endoscopy, Video Colonoscopy, CCU with Ventilators, Multipara monitor, Nebulizer, Temporary Pacemaker, Defibrillator, External non invasive Pacemaker, NICU, Laparoscopic Surgeries, Diabetic Foot Care Clinic and Hypertension Clinic, Wellness Centre for counseling are available. Department of Emergency Medicine has been made as a separate unit to provide emergency medical service round the clock.

12.4.5 Diabetic Clinic & Wellness Centre Due to increased incidence of Diabetes,

lifestyle and occupational diseases a Diabetic Clinic and Wellness Centre has been established at NSC and Central Hospital, Singrauli. Here patients are

ANNUAL REPORT 2014-15 _________________________________________________________

42

treated and consulted for diabetic foot care, kidney and eye care. Regular counseling for diet, lifestyle and occupational diseases are being done here. Total persons consulted :

Wellness Centre

Diet Counseling

2013 5892 10882014 8969 1590

12.4.6 Key performances – OPD and Indoor activities

hOSPITAL OF NCL FOR F.y. 2013-14 2014-15

NEhRUShATABDI ChIKITSALAyA

OPD CASES

Entitled 1,41,850 1,37,603

Non-entitled 50,892 45,301

TOTAL 1,92,742 1,82,904

INDOORADMISSIONS

Entitled 5,749 6,152

Non-entitled 9,566 9,136

TOTAL 15,315 15,288

CENTRALhOSPITALSINGRAULI

OPD CASES

Entitled NA 39,611

Non-entitled NA 7399

TOTAL 45,834 47,010

INDOOR ADMISSION

Entitled NA 835

Non-entitled NA 557

TOTAL 1,132 1,392

BINA hOSPITAL

OPD CASES

Entitled NA 80,191

Non-entitled NA 113

TOTAL 68,612 80,304

INDOOR ADMISSION

Entitled NA 505

Non-entitled NA 38

TOTAL 632 543

OThERDISPENSARIES OPD CASES

Entitled NA 3,38,261

Non-entitled NA 4,087

TOTAL 3,58,871 3,42,348

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

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

% of Entitled & Non-entitled patients at NSC

OPD IndoorEntitled Non-entitled Entitled Non-entitled

2013-14 73.6 26.4 37.5 62.5

2014-15 75.2 24.8 40.2 59.8

Bed Occupancy rate at NSC (of total bed strength of 150)

12.4.7 Key performances – Routine Surgical Procedures

MAJOR SURGERIES MINOR SURGERIES

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

Gen. Surgery(NSC)

644 568 Gen. Surgery (NSC & CH)

326 315

Orthopedics (NSC)

28 50 Orthopedics (NSC)

15 61

Eye (NSC & CH) & ENT (NSC)

456 383 Eye (NSC) & ENT (NSC)

50 37

Gynae. & Obstetrics(NSC)

1493 1447 Gynae. & Obstetrics (NSC & CH)

53 104

TOTAL 2621 2448 TOTAL 444 517

12.4.8 Key performances - Special Activities

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

DIALySIS UNIT NON INVASIVE CARDIAC LAB

Haemo-dialysis

Enrollment -35

Enrollment -30

• Echocardi-ography with Color Doppler

718 1535

CAPD Enrollment -15

Enrollment -17 • TMT 422 369

RADIOLOGy • HOLTERS 52 43

* CT Scan 1120 1248 Laparoscopic

Surgeries 183 103

* MRI 480 315 CCU & NICU (NSC + CH) 2697 2110+19

USG (NSC +

CH)10231+1179 10470+1661 Endoscopy 280 354

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


43

12.4.9 Periodical Medical Examination(PME), Master Health Check-up (for executives and their spouses) are being done regularly in NSC. IME (Pre employment) for all employees (Execute & Nonexecutives) are being done at NSC. PME of NCL employees are done at project dispensaries and regional hospitals of NCL. Pre employment IME of contractual workers are being done at Project Dispensaries / Regional Hospitals. IME & PMEs are done as per 11th safety committee recommendation. In the year 2014, against the target of 4130, Total PME done is 4173, which is 101% of the target. (in 2013 achievement was 99.69%). Total IME of contractual workers done in 2014 is 1180 (in 2013 it was 2775).

12.4.10 A Pneumoconiosis Workshop was organised at NSC, Jayant on 18.02.2015 for doctors of NCL engaged in doing IME & PME in dispensaries / regional hospitals/ NSC. A total of 18 doctors participated in the workshop and in the X-Ray reading session as per ILO guidelines.

12.4.11 Various conferences of paramedical staffs were organised regularly every year at NSC, Jayant. In 2014-15 a conference of Pharmacists of CIL was organised in November-’14. Pharmacists of nearby hospitals also participated in the program.

12.4.12 Continuing Medical Education (CME) programs are regularly organised at NSC, Jayant.Experts from different disciplines of medicine from reputed hospitals of India are invited to deliver lectures and conduct workshops on various latest topics and techniques of medical science. Doctors of NCL also deliver lectures on various topics of medical interest. In the F.Y. 2014-15 total 27 CME programs of 2 hours duration each were organised compared to previous F.Y. where the figure was 25.

12.4.13 Waiver of treatment cost of poor patients: A sum of Rs. 2,37,688.63/- only incurred for treatment of 67 poor patients have been waived off who were treated under CSR policy of NCL in F.Y. 2014-15. In

F.Y. 2013-14 the total amount waived off was Rs. 9,56,492.20/- only for 138 poor patients. For the current F.Y. (2014-15) number of poor patients as well as waived off amount has reduced from previous F.Y. because of segregation of waived off amount incurred for treatment of poor patients treated in various CSR camps and poor patients admitted routinely in NSC and CH, Singrauli.

12.4.14 A Centralised Referral and CPRMSE Cell started functioning at NSC, Jayant since 1st July 013.This cell is clearing the bills of empanelled hospitals of CIL as per CGHS rates and packages where our patients are referred for tertiary care. Claims of OPD/Indoor treatments of retired executives of CIL and their spouses are looked after by this cell. Since its formation, 362 retired executives of CIL are availing the benefits of CPRMSE. Payments are made directly to the empanelled hospitals and to the retired executives by finance department of NSC through RTGS / NEFT.

12.4.15 Corporate Social Responsibility (all hospital & dispensaries): NCL regularly organises various Health camps, free of cost for the poor and weaker section of the society living in nearby villages around NCL. The camps were organized throughout the year. In some of these camps renowned Physicians and Surgeons, Plast ic surgeons, Oncologists, Nephrologists, Cardiologists, Urologists, ENT Specialist from empanelled hospitals of CIL such as Max hospital, New Delhi, AIMS, Faridabad, Yashoda Hospital, Hyderabad, & Institute like IMS,BHU, Varanasi extended their services to local people of Singrauli. Every Project dispensary is running its own CSR Dispensary where free medical consultation are provided for poor patients in regular OPD. A Dispensary on Wheels (Mobile Medical Van) regularly visits Birkuniya & Ambedkar Nagar village near Singrauli. Overall expenditure in F.Y. 2014-15 was Rs. 2,54,365/- (in F.Y. 2013-14 it was Rs. 3,76,603.13/-).

ANNUAL REPORT 2014-15 _________________________________________________________

44

year

Dispensary on Wheels CSR - No. of Beneficiaries

at regular OPD by project

CSR - No. of Beneficiaries in camps by

projectTotal No. of visits

Total No. of Beneficiaries

2013-14 71 3271 11952 3369

2014-15 49 2235 13927 3268

12.4.16 Activities under CSR for current F.Y. are as under.

Total no. of camps organized under CSR is 47. Total no. of beneficiaries is 6091. Overall expenditure incurred for the camps is Rs. 32,49,735/- .Other than these, various awareness camps were organized throughout the year. Break-up of CSR Camps are given in the following table.

Name of Camp No of Camp

Beneficiar-ies

Expendi-ture

Cardiac 1 190 1,05,480Diabetic 2 320 83,280

Cancer Detection camp 4 358 1,94,191

Hypertension De-tection camp 2 528 96,428

Pediatric Health camp 3 733 1,48,285

Kidney Disease camp 1 58 74,550

Senior citizen Health Check-up 1 50 56,070

Urology 1 123 (operat-ed=19) 1,08,403.20

Lifestyle Disease Modification 1 100 1,51,585

Multidisciplinary Rural Health 3 1214 2,57,451

Deafness Reduc-tion 1 126 (operat-

ed=09) 1,11,613

Laparoscopy 1 27 (operat-ed=12) 1,60,897.53

Eye 6 325(operat-ed=325) 4,16,338

Filariasis & surgical camp 1 72 (operat-

ed=23) 95,000

Plastic Surgery 1 73 (operat-ed=20) 2,10,341.41

Family Planning 12 398 (operat-ed=361) 3,27,607

Thallesemia (Admit-ted Cases) - 53 1,04,836

Village Health camp – by Jayant 4 828 2,49,680

Women Health Check-up – By Bina 1 204 99,399

DM & HTN Check-up-BINA 1 311 1,98,300

Dispensary on Wheels 49 visits 2235 2,54,365

12.4.17 Family Welfare: The following data are all inclusive of entitled and non-entitled cases.

Normal Delivery IUSD TubectomyNSC Others Total NSC Others Total NSC Others Total

2013-14 2214 14 2228 123 12 135 402 100 5022014-15 2100 21 2121 134 19 153 346 5 351

12.4.18 National Health Programs: Govt. sponsored National Health Programs are also running in NCL e.g.

1. Revised National Tuberculosis Control Program (RNTCP)

2. Integrated Counseling and Testing Center for HIV / AIDS (ICTC)

3. Universal Program on Immunisation

4. Blindness control Program

2013-14 2014-15RNTCP (74 cases under Dots

Total Beneficiaries 507 909

Total Positive Cases 38 49

ICTCTotal Beneficiaries 3984 2840

Total Positive Cases 11 7

12.5 SOCIAL ACTIVITIES

12.5.1 Sports & Games.

Adequate infrastructure has been developed in the company for promoting games and sports. There are four stadium one each at Bina, Jayant, Nigahi and Singrauli with necessary gym equipment for physical fitness of employees. NCL has been conducting 19 different inter project sports and cultural competitions. Various sports camps are also organized details given below in which National and International level sportsmen participated:-

1) 16 Inter project level tournament

2) 4 All India National level invitation tournament.

3) 2 Coal India level Inter company tournament.

4) Establishment of Gym at CETI.

5) Two Badminton wooden court, one Billiard Board.


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6) Starting of Aerobic class for women only.

7) One synthetic lawn tennis court with flood light.

8) 4th Inter School level Inter Project level tournament of sports (Atheletic, cricket, football and cultural).

12.5.2 Recreational Facilities

NCL has adequate recreational facilities for its employees and their family members. Each Project has their own Officer’s Club and Worker’s Institute, well-equipped with furniture, utensils, indoor sports material etc. and matching grant is also provided.

12.6 Socio-economic contribution

12.6.1 The company had already developed six rehabilitation sites viz. 3 in UP State (Rehta, Ambedkar Nagar and Jawahar Nagar), 3 in MP State (Chandrapur, Nandgaon and Jaitpur) and one more new site is approved for development for resettlement of Project Affected Persons (PAPs) with necessary civic amenities linked with Block-B Project.

During the year 1 patta were issued and 76 families were paid cash in lieu of plot @ of Rs 1 Lakh to each family. Total 3241 number of families are rehabilitated out of 4065 upto 31st March 2015.

12.6.2. To impart greater responsibility towards social and economic upliftment of the displaced, package concept for offer of employment is evolved and practiced since 2008-09 in NCL. In this system 2 or more land oustees, who are not eligible for offer of employment due to less than 2 acres of land holding may come together and make a package for offer of an employment to one of them or one of their nominee. This has enhanced the chance of getting employment against land and also enhanced the coherence among the land oustees as well as helping in solving the R&R issues.

12.6.3 In 2014-15, total 40 employments have

been given against acquired land, out of which 37 employement is offered under package deal concept in which 133 land oustees added their share of land to make those 37 packages for offer of employment.

12.6.4 Compensation of Land and House Payment.

During the year, compensation of 51.0129 Ha. of tenancy land and houses, total amounting to a total of Rs.13.60 Crores has been disbursed.

12.7 Mahila Mandal12.7.1 Mahila Mandal is a social organization of

ladies of NCL and actively participates in the fields of social work. It has been conducting Adult Education Classes. and providing books as a measure to provide basic education to nearby villagers. It has also shown concern in the area of women health by conducting anemia detection camp and has also distributed fruits and created awareness about the importance of proper diet among the women residing in nearby villages.

12.8 Family Welfare

12.8.1 During the year under review 504 (351 TT & 153 IUCP) operations were conducted successfully under the family Welfare Programme of NCL covering entitled and non-entitled patients of NCL and nearby areas.

13.0 RAJBhASA IMPLEMENTATION (OFFICIAL LANGUAGE POLICy)

13.1 As per the Annual Programme 2014-15 issued by the Government of India, Ministry of Home Affairs, Rajbhasa Deptt., Govt of India, for 100% implementation of Rajbhasa Rules and Regulation of Rajbhasa Policy among the Officers/Workers of NCL, emphasis was given on sustainable and maximum use of Hindi by employees in the official work which resulted in progressive and significant improvement in Rajbhasa Implementation.

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13.2 For carrying out the official work in Hindi smoothly, during the year 2014-15, 03 Rajbhasa Workshops were organized, which resulted in growth in correspondence. In CETI training programme was organized in hindi and the material for training were provided in Hindi amongst all trainees.

13.3 Against the target of 04 sittings, in NCL 04 sittings of Rajbhasa Implementation Committee was held, in which review was done on the quarterly report and its implementation.

13.4 In high level meetings of the Company such as meetings of Joint Consultative Committee, Welfare Board and Trade Unions, the proceedings were held in Hindi and minutes of the meetings were also issued in Hindi.

13.5 Emphasis was laid to ensure 100% implementation of Section 3(3) and Rule-5 and 11 of Rajbhasa Act, 1963. Correspondence with different offices of Central and State Government was done in Hindi.

13.6 All 1053 computers in the company were provided with the facility through UNI Code to do the work in Hindi.

13.7 A training programme was organized by System Department in Head Quarter, Singrauli on 20.5.2014 for working in Hindi in Computer in UNICODE in which 24 Officers/Workers from Projects/Units were participated.

13.8 Keeping with tradition, ‘Rajbhasa Pakhwara’ was organised from 15th to 29 September, 2014, in which various competitions were organized in which winners were awarded in cash and consolation prize were distributed among all the participants. 18 Employees were rewarded with Cash prize for their best contribution in the field of Hindi.

13.9 During the Pakhwara All India Kavi Sammelan was orgainsed on 27.9.2014 in which for advertisement of Rajbhasa Hindi, motivational poems in Hindi were recited.

13.10 Dudhichua Project and Bina Project were given 1st and 2nd Rajbhasa Shield respectively, under the Late Shanker Dayal Sharma Memorial Prize Scheme for the best work done in Hindi for the year 2012-13 alongwith appreciation letters on conclusion of Rajbhasa Pakhwara, September, 2014.

13.11 In the Rajbhasa Sangosti organized by Bhartiya Rajbhasa Vikas Sansthan, Dehradun from 29-31 October, 2014 at Khajuraho (Madhya Pradesh), for best work performance in Hindi in Company Ms. Shantilata Sahu, Director (Personnel) was honoured with “Rajbhasa Shree Samman’, Shri A. J. Reddy, GM(Pers/Wel) and Rajbhasa Incharge was honoured with Rajbhasa Kirti Award, Shri Simson Vansriyar, Sr. Officer (Per/Admn), NSC, Jayant and Shri Babulal Ram, Sr. Officer (Sectt/Rajbhasa), Bina and Shri Sharad Chandra Sharma, Office Suprintendent, Amlohri were honoured with Vishesh Rajbhasa Vishishtata Samman and a Memento.

13.12 Shr i Pradeep Kumar Dubey, Sr. Manager(Personnel), Block’B’ Project and Shri Manoj Kumar Singh, Sr. Manager (IE) participated in the 3 days Third Akhil Bhartiya Rajbhasa Sammelan organied at Puri (Orrisa) by Viswamukt and KIIT Univesity, Bhuwaneshwar from 14 – 16 November, 2014.

In the above programme Ms. Shantilata Sahu, Director(Personnel) was also present as a special invitee. On the conclusion of the seminar Director (Pesonnel), NCL and above executives were honored with Momento.

13.13 The meet ing o f Town Ra jbhasa Implementation Committee, chaired by Shri Tapas Kumar Nag, Chairman-cum-Managing Director, NCL was held on 21.11.2014 and appropriate action on the minutes of meeting circulated in Hindi was taken.


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13.14 Area Implementation Office (Central), Govt. of India, Ministry of Home, Rajbhasa Section, Bhopal organized a Joint Area Rajbhasa Sammelan on 30.1.2015 at Bhopal, in which Shri A. J. Reddy, General Manager (Personnel/Welfare), NCL participated.

13.15 Town Rajbhasa Implementation Samiti, Bhilai-Durg organized Central Area Rajbhasa Sammelan from 27-28 February at Bhilai (Chattisgarh) in which Shri Dinesh Tenbhurne, Sr. Officer (Rajbhasa) participated and was declared winner Rajbhasa question Manch.

13.16 During the year under “Aaj ke Shabd” synonym words of English in Hindi and “thoughts of the day” were also written daily on the Board to develop awareness amongst the executives and workers to work in Hindi.

14.0 ACTIVITIES OF VIGILANCE DEPARTMENT14.1 Vigilance Set-up :14.1.1 The Vigilance set –up at Northern

Coalfields Limited is headed by a Chief Vigilance Officer, a director level officer appointed by the Government of India. Ten executives belonging to different disciplines assist the CVO in carrying out the activities of the Vigilance Department. Three Senior Personnel Assistants and two clerks are also posted in the Vigilance department.

14.1.2 Corruption prone areas have been the focus of attention. Any preventive or punitive action in these areas is bound to have a demonstrative as well as multiplier effect on the entire organization.

14.2 Observance of Vigilance Awareness Week 2014 :

14.2.1 As per the directives of Central vigilance Commission vide circular no. 06/09/14 dated 30/09/2014, Vigilance Awareness week was observed in Northern Coalfields Limited from 27.10.2014 to 01.11.2014. Displayed the banners, posters at Prime locations. Shri K.P. Venkateshwar Rao,

IPS, IG/CVO, NCL has flagged off for a vigilance run at 9.30 AM on 27.10.2014 by school children.

Shri T.K. Nag, CMD, NCL has administered pledge to the executives and staff at Singrauli on 27.10.14 at 11.00 AM. Shri A.D.Mathur, Director (Tech/Oprn) NCL had read out the message of His excellency President of India Shri Pranav Mukharji on the occasion. The message of Hon’ble Vice President of India Shri Hamid Ansari was read out by Shri A.K.Pandey, Director(F), NCL. The message of Shri Narendra Modi, Prime Minister of India had conveyed to the assembled employees by Shri A.K. Mukherjee, General Manager (E&M)/Vigilance, NCL. Shri K.P. Venkateshwar Rao, IPS, IG/CVO, NCL had conveyed the message of the Central Vigilance Commission to the executives and employees. In a similar fashion, the observance of Vigilance Awareness week-2014 was commenced with the administration of pledge and reading out of messages at different projects of NCL. This year the theme of observing Vigilance Awareness Week was “Combating Corruption – Technology as an enabler”.

The Inaugural day function of the Vigilance Awareness Week-2014 was held at Officers’ Club Auditorium on 27.10.2014 at 3.00 PM.. Shri T.K. Nag, CMD, NCL, was the Chief Guest of the function. Shri A.D.Mathur, Director (T/O) NCL and Shri A.K..Pandey, Director (F) were present on the occasion. The proceedings of the function was started with a welcome song presented by the school children.. Shri K.P.Venkateshwar Rao, IPS, IG/CVO, NCL had welcomed to the guests and expressed his views on transparency in public procurement and emphasized to introduce e-tendering, e-procurement etc by leveraging technology in NCL. GPS (Global Positioning System)/RFID (Radio Frequency Identification) system and on line file tracking s y s t e m w e r e i n a u g u r a t e d b y

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Shri T.K. Nag, CMD, NCL on the occasion. Shri A.D.Mathur, Director (T/O) NCL and Shri A.K.Pandey, Director (F) had expressed their views on awareness regarding rules regulations, manuals etc of the company. The Chief guest Shri T.K. Nag, CMD, NCL had expressed his views on a sound procurement system essential for any organization & had emphasized transparency, accountability and probity in public procurement.

NCL Vigilance has given “Vigilance Excellence Award” & “Appreciation Certificate” to the Executives & employees for exemplary work who had done excellent work in the field of innovative technique to save the company’s fund. The details are given below :

(a) Vigilance Excellence Award-2014

1. General Manager(Sales & marketing) with his team for exemplary work done by them in liquidating Coal stock at Jayant Project.

2. Chief General Manager, Jayant with his team for exemplary work done by them in liquidating Coal stock at Jayant Project.

3. S h r i G . P . S i n g h , Sr,Manager(Legal), for Dealing the matter relating to lease rent in systematic manner with legal proficiency leading to substantial reduction in payment of lease rent to the authorities.

4. Shri S.K.Meshram, Chief Manager(E&T)/HOD with his team for Implementation of GPS based vehicle tracking & RFID weighbridge integration system in NCL.

(b) Appreciation Certificate

1 Sri M A Siddiqui, Chief Manager (MM), NCL Headquarters

has been appreciated for his individual innovation while finalizing procurement in cases of proprietary purchase resulting into substantial savings to NCL.

2 Sri Jaibir Singh,

Sr.EP Electrician Amlori Project

has been appreciated for his exemplary work done in Departmental repairing of Electrical Shovels at Amlohri Project resulting in substantial savings in terms of money as well as time for NCL.

3 Sri S N S Yadav, Senior Manager (Excavation) Jhingurda project

has been appreciated for exemplary work done in repairing of Transmission of a Wheel Dozer by using parts from old and failed Transmission at Jhingurda project resulting in substantial savings for NCL.

4 Sri A N Tripati, Senior Mechanic Jhingurda project

has been appreciated for exemplary work done in repairing of Transmission of a Wheel Dozer by using parts from old and failed Transmission at Jhingurda Project resulting in substantial savings for NCL.

5 Sri Brajesh Sardar, Fitter, Jhingurda project

has been appreciated for exemplary work done in repairing of Transmission of a Wheel Dozer by using parts from old and failed Transmission at Jhingurda Project resulting in substantial savings for NCL.

6 Sri Umesh Yadav, Fitter, Jhingurda project

has been appreciated for exemplary work done in repairing of Transmission of a Wheel Dozer by using parts from old and failed Transmission at Jhingurda project resulting in substantial savings for NCL.

7 Sri S K Mallick, Chief Manager (Excavation) Jhingurda project

has been appreciated for exemplary work done in converting the surveyed off 85 T Dumpers into Water Sprinkler with water pressure unit to utilize the same as a Fire tender also using departmental resources at Jhingurdha Project resulting in substantial savings for NCL.

8 Sri Dadulal Singh, Foreman in-charge Jhingurda project

has been appreciated for done in converting the surveyed off 85 T Dumpers into Water Sprinkler with water pressure unit to utilize the same as a Fire tender also using departmental resources at Jhingurdha Project resulting in substantial savings for NCL.

9 Sri Surendra Singh, Sr. Mechanic Jhingurda project

has been appreciated for exemplary work done in converting the surveyed off 85 T Dumpers into Water Sprinkler with waterpressure unit to utilize the same as a Fire tender also using departmental resources at Jhingurdha Project resulting in substantial savings for NCL.

10 Sri S K Singh, Sr. Electrican Jhingurda project

has been appreciated for exemplary work done in converting the surveyed off 85 T Dumpers into Water Sprinkler with water


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11 Sri Dinesh Baiswar, Fitter Jhingurda project


12 Sri Suresh Ekka, Fitter Jhingurda project


13 Sri R P Patel, Welder Jhingurda project

has been appreciated for exemplary work done in converting the surveyed off 85 T Dumpers into Water Sprinkler with water pressure unit to utilize the same as a Fire tender also using departmentalresources at Jhingurdha Project resulting in substantial savings for NCL.

14 Sri A K Mishra, EPH Jhingurda project

has been appreciated for exemplary work done in converting the surveyed off 85 T Dumpers into Water Sprinkler with water pressure unit to utilize the same as a Fire tender also using departmentalresources at Jhingurdha Project. resulting in substantial savings for NCL.

15 Sri R K Singh, Sr. Manager(Civil), NCL Headquarters.

has been appreciated for exemplary work done by him in using Information Technology and innovative ideas to increase number of tender finalization and award of work at Civil Department, NCL Headquarters.

16 Ms. Shewata Bansal, Assistant Manager (Civil), NCL Headquarters.

has been appreciated for exemplary work done by her in using Information Technology and innovative ideas to increase number of tender finalization and award of work at Civil Department, NCL Headquarters.

(c) Special Achievement Award

1. Shri Inderjeet Singh, S/o. Late Gurudayal Singh Saini, Dragline Op-erator, Jayant Project

has been awarded for winning Bronze Medal in Shot Put at Asian Games-2014 at Incheon, South Korea.

2. Smt. Indu Bala, Office Super-intendent, NCL Headquarters

has been awarded for winning Gold Medal in Hammer Throw & Discus Throw at 18th Masters Asia Athletics Championship, Japan 2014.

An exhibition of the drawing and paintings made by the school children on the issues related to honesty, corruption etc. was held at the same venue. The topic is “A vision of Corruption free India” The

creative outpouring of the children on canvas struck an instantaneous chord with the Chief Guest, executives, staff and others. An essay competition on the topic “Moral and Ethics in one’s life – for eradication of corruption,” for the students of Class 8 to 12 were organized. A dance/drama/skit competition of maximum 15 minutes duration were also organized for the student of Class VII to XII on the topic of “Delete Corruption- Build Nation”

On the occasion, a lecture on the topic of “Criminal misconduct and abuse of official capacity” was delivered by Shri A.K.Banarjee, Rtd.S.P., CBI, Kolkata. In this program, 286 officers and staff were participated.

Vote of thanks was given by Shri A.K.Mukharji, GM(E&M)/Vig. to all guests.

On 28/10/2014 at CMD’s Conference Hall, Singrauli a Vendors’ Meeting was organized in which Shri K.P.Venkateshwar Rao, IPS, IG/CVO, NCL, Shri T.K. Nag, CMD, NCL, Shri A.D.Mathur, Director (T/O) NCL, Shri A.K. Pandey, Director (Finance), NCL had delivered their lectures on e-procurement and e-tendering in which more than 25 vendors had attended and expressed their practical problems which were assured to sort out shortly.

In the same line vendors’ meet was organized at Jayant Project for vendors of Jayant, Kakri, Bina, Krishnasila, Khadia, CWS & IWSS,Khadia at 10 AM to 12 AM on 28.20.14.

Vendors’ meet was also organized at Nigahi Project on 29.10.14 for the vendors of Nigahi, Amlohri, Dudhichua, Block B, Jhingurda & NSC, Jayant.

On 28.10.2014, training programs were organized at CETI, in first half two lectures on the topic of E-procurement of Services by Shri R.K.Singh, Sr. Manager (Civil) & on another topic of Legal issues involved in Environmental and Forestry by Shri G.P.Singh were organized. On same

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day in the second half two lectures were also organized, the Dir(D/O) had delivered a lecture on System improvements done in repair and maintenance contracts and its synchronization with IBS and the Dir(F), had delivered a lecture on Taxation issues in NCL and recent developments w.r.t. Tax department in these programs 70 executives were participated.

On 29.10.2014, training programs were organized at CETI, in first half two lectures on the topic of Standing Orders/Disciplinary Proceedings by Shri S.Kadamber, Sr. Manager(Pers) & on another topic of GPS/RFID were organized. On same day in the second half one lecture on the topic of New changes in procurement policy of CIL by Shri I.B.Karna, Chief Manager(MM) were also organized.

In the forenoon of 30.10.2014 Skit/Drama competition by school children (Approx. 150 children) reflecting the combating corruption was organized at officers’ club, Singrauli, in which 1st,2nd& 3rd were selected.

In the forenoon of 30.10.2014, the Chief Vigilance Officer, NCL, K.P.Venkateshwar Rao, IPS had delivered a lecture on the topic of Common irregularities in contracts/public procurement and guidelines for improvement, he had told regarding IT initiatives taken by Vigilance Department, a lecture on Integrity Pact by Independent External Monitor was delivered by Shri J.K. Khanna, IPS (Rtd) and Shri Sewa Ram IAS, (Rtd) and in the afternoon of 30.10.14 a lecture was organized at CETI, Singrauli in which Shri M.V. Surti, S.P., CBI/ACI, Jabalpur had delivered a lecture on “Prevention of Corruption Act” and Shri D. Kalyan Chakravarti had also delivered a lecture on “Security Scenario/Unauthorized occupation in Singrauli Area”.

On 31.10.2014, an interactive session with professors of Administrative Staff College

of India, Hyderabad was organized on the topic of “New Company’s Act”, in which 50 officers were participated.

Training programs were also organized in all 10 Projects of NCL on the topic “Common irregularities & compliance of Departmental Enquiries” in which about 80 to 90 executives and nonexecutives were participated.

On 01.11.14 Concluding Day ceremony was organized at Officers’ Club, Singrauli in which Shri K.P.Venkateshwar Rao, IPS, IG/CVO, NCL,Shri N.Das, Director (T/P&P) NCL, Shri A.D.Mathur, Director (T/O) NCL and Shri A.K.Pandey, Director (F) were present. Shri Raghuvansi, District Judge graced the occasion as Chief Guest of the concluding day ceremony. The proceedings of the function was started with a welcome song presented by the school children. In their address on the occasion, Chief Vigilance Officer, CMD, Dir. (T/P&P), Dir (T/O) Dir. (Fin) and, NCL and Chief Guest were expressed their views. The Vigilance magazine 2014 “BAAZ” was released by the Chief Guest, Directors and CVO of NCL. The prize winners from the School Children were felicitated. At the end, colourful Cultural programs were also organized by School children and artists of NCL employees. The General Manager (E&M) Vig. Shri A.K.Mukhrjee had delivered vote of thanks.

In the same line all projects of NCL such as, Block B, Jhingurda, Kakri, Bina, Khadia, Krishnashila Iwss Khadia, Dudhichua, Jayant, CWS Jayant, Amlohri, Nigahi & NSC Jayant.

The various activities carried out by NCL during the Vigilance Awareness Week were widely covered by the Press.

14.3 Preventive Vigilance :

14.3.1 Systems Improvement undertaken :

1. ANNUAL PROPERTy RETURN, ONLINE VIGILANCE COMPLAINT AND ONLINE RECRUITMENT has


51

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

2. On recommendation of Vigilance Department System Improvement Orders by CMD/NCL has been issued vide Office Order No. NCL/CMD/ Vig/2014/2172 dt. 25/26.02.14 regarding procurement of fire safety items.

3. Again on recommendat ion of Vig i lance Department System improvement Orders by CMD/NCL have been issued vide Office Order No. NCL/CMD/ Vig/2014/2173dt. 25/26/02.14regarding procurement of fire safety items.

4. System improvement order issued vide no. NCL/VIG/14/494 dt. 01.07.2014 regarding internal coal transportation at Khadia Project for monitoring the reporting system of contractual tippers engaged in coal transportation.

5. System improvement circular has been issued vide No.NCL/Vig/Systemic improvement/15/2014/1460 dated 23.12.14 regarding submission of bills related to official tour.

6. GPS/RFID based vehicle tracking system for coal transportation.

Electronic surveillance by CCTV, GPS based Vehicle Tracking system, RFID based boom barriers, an integrated system for collecting the data in real time basis - 1005 numbers of tippers/trucks has to be installed RFID tag.

All the projects of NCL are having electronic weigh bridges.

Tender for GPS based vehicle tracking system for coal transportation along with RFID system, boom barrier, camera for snapshot and integration with existing weighbridge system on turnkey basis. The work order issued on 16th January 2014.

GPS devices installed in 75 vehicles as provided by the Block B project for testing and optimization of the system.

A Central Server has been installed at NCL headquarters with 2MBPS line. A work station at Weigh Bridge at project with RFID Reader, boom barrier and camera for snapshot with internet connection. Area control room has been established at Block B project with broadband internet connection for linking the weigh bridge data and the central server at Headquarters. Commissioning of the trial started from 01.10.2014. Trial run has been completed successfully in Block-B Project and completion certificate was issued on 13/02/2015.

Expected date of full implementation is, after the trial run of 03 months i.e, end of June 2015.

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

7. CoalNet Implementation status :

In 1st phase payroll, Finance and PIS will be implemented and award of work is expected by April 2015, as this requires customization for NCL and its implementation at NCL headquarters is expected by end of December 2015.

In 2nd phase extension of facilities for data entry and report generation, etc for Finance, Payroll and PIS Module to all the projects. Implementation of MM, maintenance, Sales and production modules of CoalNet at Main data Centre (at NCL Hq) and provide all facilities at project/units and Near Data Centre at Nigahi project is expected by end of December 2015.

NIT for selection of Service Provider for Implementation, customization, maintenance and support after successful implementation of CoalNet project for 5 years was floated in August 2014. Single offer of M/s CMC has been received against the open tender, which was opened on 1st November 2014. Part II has been opened on 14.01.2015 and price

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justification is in process. Award of work of both the phases is expected soon.

8. Implementation of OITDS at Amlohri, Nigahi, Khadia and Dudhichua including AMC of 5 years. On the initiative taken up by Vigilance department, OITDS implementation in 04 projects of NCL was speeded up and is expected to be operational from March 2015.

9. E-tendering All the projects of NCL have started tendering through e-procurement of goods valuing more than Rs.2 lakhs, from June 2014. Tendering for works/services for contracts worth Rs 2 lakhs or more (Civil/E&M/Mining/CMC) have been started through E-procurement portal from 1st Feb 2015. A total of 1267 tenders have been published on E-procurement portal amounting to Rs.4697 crs of estimated value. Total of 337 contracts have been awarded amounting to Rs.280 crs on the portal till date.

10. Coal Stock Liquidation through E-auction :

The coal stock posit ion as on 01.04.2014 was 6.102 million tonnes. The problems faced by NCL due to coal stock lying in coal yards of various projects was of degradation of coal quality due to long storage period, damage due to frequent fires due to spontaneous combustion, pilferation/thefts and weathering. By the initiative taken by Vigilance department and the Sales and Marketing department after constant liasioning with consumers, railway authorities and project officials brought the coal stock from a level of 6.1 million tons to 1.3 million tons, thereby liquidating the stock to the tune of 4.8 million tons.

11. Online File Tracking system Online file tracking package has been

developed in house by NCL and works in the LAN of NCL. The online file

tracking system is in use since 2013 in NCL headquarter. Projects have started to use the online file tracking system from November 2014.

12. Online Bill Tracking system

Online bill tracking package has been developed in house by NCL and works in the LAN of NCL. The online bill tracking system has been implemented in NCL headquarter from 10.01.2015.

14.3.2 Extent of IT usage and e-governance :

1. V i d e n o t i c e n o . N C L / S G R /sales/08/2334 dt.06.03.09 the extant procedure regarding refunds through RTGS/CBS to linked consumers/e-auction buyers was circulated. Despite being located in remote area, NCL has introduced e-payment in a big way.

2. NCL website has been linked to CVC website for ensuring easy access to CVC instructions relating to different matters.

3. A link called CVO’s corner has been introduced in NCL website.

4. E-publication of “BAAZ”, a compendium on Vigilance matter has been done, wherein guidelines issued in the year was in addition to CVC guidelines and case study based on major Vigilance cases.

14.3.3. Vigilance Department of NCL scrutinized 350 Annual Property Return up to March 2015.

14.3.4. Agreed List & ODI List : Agreed list and ODI list have been prepared.

14.3.5. Rotation of executives from sensitive posts : Officers working on the sensitive posts are being transferred regularly. Details for the period from 01.04.14 to 31.03.15 are us under:


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No. of executives transferred from sensitive posts: 84

14.3.6. Training Courses conducted in vigilance awareness :

(a) Training Courses conducted in vigilance awareness:

1. D e t a i l s o f t h e t r a i n i n g programme held on Vigilance Awareness & other Vigilance related subjects.

SI. No Name of Programme Date No of

participants

01. Management Development programme

21.04.14 24


26.04.14 24

03. Vigilance Awareness programme

28.04.14 28


28.04.14 26

05. An interactive session related to EMD/SD and other maters by top management of NCL with Executives of NCL.

03.05.15 100


31.05.14 26


30.06.14 25


30.07.14 49

09. Lecture on Criminal misconduct and abuse of official capacity

27.10.14 250

10. Vigilance awareness programme: Topicsa) E- procurement of services, b) Legal issued involved in Environment & Forestry,c) System improvements done in repair and maintenance contracts and its synchronization with IBS.

28.10.15 67

11. Vigilance Awareness programme: Topicsa) Standing orders & Disciplinary proceedings,b) GPS & RFID

29.10.15 65

12. Vigilance Awareness Programme: Topics,a) Common irregularities in contracts/public procurement and guidelines for improvementb) Integrity Pact.c) Prevention of Corruption Act

30.10.15 74

13. Vigilance Awareness programme: Topicsa) New Company Act by ASCI, Hyderabad

31.10.15 50

14. Vigilance Awareness programme: TopicsCommon irregularities & Compliance of departmental Enquiries- its pros & cons, Block B,

27.10.15 45

15. Vigilance Awareness programme: TopicsCommon irregularities & Compliance of departmental Enquiries- its pros & cons, Jhingurda

27.10.15 55

16. Vigilance Awareness programme: TopicsCommon irregularities & Compliance of departmental Enquiries- its pros & cons, Amlohri

28.10.15 65

17. Vigilance Awareness programme: TopicsCommon irregularities & Compliance of departmental Enquiries- its pros & cons, Nigahi

28.10.15 76

18. Vigilance Awareness programme: TopicsCommon irregularities & Compliance of departmental Enquiries- its pros & cons, Jayant

29.10.15 95

19. Vigilance Awareness programme: TopicsCommon irregularities & Compliance of departmental Enquiries- its pros & cons, Dudhichua

29.10.15 83

20. Vigilance Awareness programme: TopicsCommon irregularities & Compliance of departmental Enquiries- its pros & cons, Kakri

30.10.15 66

21. Vigilance Awareness programme: TopicsCommon irregularities & Compliance of departmental Enquiries- its pros & cons, Bina

30.10.15 71

22. Vigilance Awareness programme: TopicsCommon irregularities & Compliance of departmental Enquiries- its pros & cons, Krishnashila

31.10.15 48

23. Vigilance Awareness programme: TopicsCommon irregularities & Compliance of departmental Enquiries- its pros & cons, Khadia

31.10.15 74

Total -- 1486

ANNUAL REPORT 2014-15 _________________________________________________________

54

Besides regular and normal Vigilance activities, NCL vigilance is actively working in areas like training for development and creating awareness amongst all Executives of NCL, which has been adopted by Coal India for all its Executives. CIL has approved General Management Programme for E-6 and E-7 at ASCI, Hyderabad and for below E-5 level executives at IIM, Lucknow after the initiative taken by NCL Vigilance.

For creating vigilance awareness in executives of NCL a training programme has been initiated comprising of two modules (engineers & non-engineers) to impart training to 450 nos of executives.

Under this programme in the month of February 2015, three days Sensitization Refresher Course to enhance Vigilance Awareness for Engineers in Finance and Non engineers in Mining Operation was organized at Jayant Project from 16.02.2015 to 18.02.2015, in which 30 executives from engineering discipline 19 executives from non-engineering discipline were participated.

In the month of March 2015, the training programme was conducted in three batches, on 11.03.15 to 13.03.15 course for Non-engineers was organized, on 16.03.15 to 18. 03.15 course for Non-engineers & Engineers was organized in which 78 engineers & non-engineers executives participated and on 19.03.15 to 21.03.15 course for engineers was organized in which 20 executives participated.

14.4 Surveillance and Detection :

14.4.1. No. of cases registered for investigation during the period of report

Opening balance of cases : 09

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

Disposed during the period : 14

14.4.2. No. of cases under departmental inquiry during the period of report

No. of case under Departmental Inquiry : 09

Disposed during the period : 04

14.4.3. Inspections: A total no. of 53 surprise inspection/regular inspections were made during the period in question.

14.5. Punitive Vigilance :

Chargesheet’s issued Penalty imposed

Minor Penalty Procee-dings (under

Rule 31)

Major Penalty Procee-dings (under

Rule 29)

Dismissal/Removal

Reduction to lower

rank

Reduction to lower

stage in pay

Postponement/withholding of

increment

Withholding of

promotion

Censure Others(caution, Warning

etc.)

No Action

(exoneration)

27 11 Nil Nil 02 Nil Nil 09 12 Nil

14.5.1 No. of officials suspended : One

15.0 COMPUTERIZATION

15.1 Existing Applications / Systems:

Ø Oracle based Centralized Payroll System for entire NCL

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

Ø Foxpro based Data entry and cash accounting package at all other projects

Ø Consolidation of Cash accounting at HQ

Ø COBOL based Personnel Information System for Executives and Non-Executives for entire NCL

Ø Surpac Software for Mine Planning and Surveying.

Ø Integrated Business Solution (IBS), an ERP package, consisting of Materials Management, Maintenance Management, Production Sales and MIS Modules

Ø Operator Independent Truck Despatch System (OITDS) is functional at Jayant Project.


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Ø Opera to r Independen t Truck Despatch System (OITDS) is functional at Amlohri and Khadia Projects. Implementation of OITDS at Dudhichua and Nihgahi Projects are in final stage of completion.

Ø B iomet r i c Based A t tendance Recording System at NCL HQ

Ø Online Vigilance Complaint System, Online Recruitment System through CMPDIL

Ø e_Procurement for Goods, Works and Services through NIC

Ø Oracle based Computer Consumables Information System

Ø File Tracking and Bill Tracking System

15.2 Infrastructure:

Ø RISC Server (1 no) for Payroll & Personnel Information System

Ø Xeon Servers (14 nos) for Integrated Business Solution (IBS)

Ø Sun Storage VTL for Backup System

Ø PCs: In total 1053 PCs are distributed to different users across NCL. Out of these 465 no. PCs are to be replaced very shortly.

Ø F.O. based Local Area Network (LAN) is functional at NCL Hq and all projects. All the LANs of project are connected with LAN at HQ through F.O. cable.

15.3 Maintain 10 Mbps lease line Internet through NIC, Bhopal

15.4 NCL Website updation including re-structuring of NCL Website

15.5 Future Program

15.5.1 Implementation of Coalnet covering Finance Module, Materials Module, Maintenance Module, Sales Module, Production Module, Personnel Information

System & Payroll.

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

15.5.3 Setting up of Main Data Centre at HQ and Near Data Centre at Nigahi

15.5.4 Upgradation of HQ LAN with Mail Messaging, Proxy and Web Servers

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

15.5.6 Implementation of Hospital Management Information System.

15.5.7 Implementation of Document Digitization & Document Management System.

15.5.8 Replacement of Operator Independent Truck Dispatch System (OITDS) at Jayant Project.

15.5.9 Computerization of Asset register.

16.0 COMMUNICATION FACILITIES:

16.1 Efficient telecommunication network has been developed in the projects and NCL HQ to provide the communication facilities right from the corporate office to the Pit office.

16.2 Wide Area Network (WAN) through OFC has been established from NCL HQ to projects and within the projects to provide voice and high speed data communication facility for IBS.

16.3 10 Mbps high speed internet connectivity has been established at NCL HQ for Internet and e-mail facility.

16.4 New IP based telephone exchanges have been installed in all projects/units of NCL. Facility for close user group numbering scheme has been established for voice communication between subscribers of HQ/projects/units. This has improved telecommunication between HQ and projects/units.

16.5 Mobile communication facility of BSNL under Closed User Group (CUG) scheme has been provided to all the executive and emergency / essential staff of NCL.

ANNUAL REPORT 2014-15 _________________________________________________________

56

16.6 New System during 2014-15:

16.6.1. GPS based vehicle tracking system has been installed in 75 Nos. of trucks and integration of one weighbridge for RFID tag, Boom Barrier and Camera for snap shot of vehicle number plate. This system has been implemented in Block’B’ project of NCL.

16.6.2 The proposal for instal l ing CCTV Surveillance system at vital locations of mines of different projects/ units of NCL. The supply order has been placed on M/s Honeywell automation Ltd., Kolkata.

16.7 Improvements during 2015-16:

16.7.1 Implementation of GPS based vehicle tracking system and integration of weighbridge for RFID tag, Boom barrier and Camera for snap shot of vehicle number plate in remaining 9 (nine) projects of NCL.

16.7.2 CCTV Surveillance system is to be installed at all road weighbridges and different vital locations (Ministry, Store, Workshop, Sub-Station, CHP, Time office, Dumper/Dozer parking yard, Diesel filling station etc.) in the mines of NCL with 550 nos. of cameras.

16.7.3 Radio network connecting HQ Singrauli to Projects/ Units for voice and data communication shall be established.

16.7.4 380 Nos. of wireless equipment have been added to improve wireless communication network in mines.

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

17.0 CORPORATE SOCIAL RESPONSIBILITy 17.1 Annual Report on CSR Activities required

under Section 134(3) of the Companies Act 2013 read with Rule 8(1) of Companies (CSR Policy) Rules 2014 is enclosed as Annexure-I.

18.0 SUSTAINABLE DEVELOPMENT / MOU ACTIVITy OF NCL DURING 2014-15

18.1 Sustainable development and CSR Committee of NCL has been re-constituted by NCL Board comprising of two part time

non-official Directors and two Functional Directors.

18.2 A three year project for Eco-Restoration work and Bio Diversity Development in 10 hectares of degraded land ( 5 hectares each at Krishnashila and Nigahi Projects of NCL) has been awarded to Forest Research Institute, Dehradun. The total project cost is Rs.40 lakhs and Rs.20 Lakhs has already been paid as first instalment. Work is in progress.

18.3 (a) Under Rain Water harvesting, deepening and cleaning of 2 nos of water harvesting pound at Dheki & Pauri Nagai villages have been done by Jayant Project and deepening of existing pond at village Gharsari by Bina Project.

(b) 2 Rainwater harvesting facility have been developed by Nigahi OCP near DPS School and Dispensary.

18.4 The proposal for Carbon Foot Print assessment in NCL is under process and the work is expected to be carried during the year 2015-16.

18.5 (a) The procurement of mist spray dust control system is in the procurement process. The mist spray system with dust suppression through mounting on a mobile vehicle is a new technology to be used for the first time in CIL.

(b) Air pollution emission from heavy vehicles is monitored. The work at Amlohri and Bina Project has been completed. In other projects it is under process.

19.0 STATUTORy INFORMATION

19.1 Information in regard to Energy Conservation, Technology Absorption and Foreign Exchange Earning & Outgo

19.1.1 Information in accordance with the provisions of Section 134 (3) of the Companies Act. 2013 read with Rule (8) of the Companies (Accounts)Rules, 2014 regarding Conservation of Energy, Technology Absorption and Foreign Exchange Earnings & Outgo is given in Annexure-II to this report.


57

19.2 PARTICULARS OF EMPLOyEES

19.2.1 There was no employee of the Company who received remuneration in excess of the limit prescribed under Section 134 of the Companies Act, 2013 read with Rule 5(2) and (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

20.0 AUDITORS’ REPORT

20.1 Replies of the Management on the observations made in the report of the Statutory Auditors and comments of the Comptroller and Auditor General of India (CAG), as required under section 134 of the Companies Act, 2013 are given in the Addendum forming part of this Report.

20.2 The Secretarial Auditor did not make any comments/observation in his Report. The Secretarial Audit Report in the prescribed Form No.MR-3 is enclosed as Annexure-III.

20.3 The Cost Auditor Report for the year 2013-14 has been filed under XBRL mode within due date of filing. The Cost Audit Report for the year 2014-15 is in process of finalization and will be filed as per schedule date of filing.

21.0 AUDITORS

21.1 The Statutory and Branch Auditors appointed by the Comptroller and Auditor General (CAG) of India for the year 2014-15 vide letter No.CA.V/COY/CENTRAL GOVT. NCFL (3)/328 dated 1.8.2014 under section 139 of the Companies Act, 2013 along with remuneration as fixed by the Board in exercise of powers conferred by the Company in 17th Annual General Meeting held on 23rd September, 2002, pursuant to provisions of section 224(8) of the Companies Act, 1956 (same provision retained in Section 142 of the New Companies Act, 2013) is given hereunder:

Name of the Audit Firm

Sta-tus

Audit Fee Recom-mended

TA & Out of pocket expenses

Reim-burse-ment of Service

TaxM/s.Prakash & Santosh,Chartered Account-ants,Kanpur (U.P.).

Main Auditor

Rs.4,92,188.00 At actual subject to the limit of Rs.1,57,500.00

At actual.

M/s. B.C.P. Jain & Co., Char-tered Ac-countants, Bhopal (M.P.).

Branch Auditor

Rs.1,80,469.00 At actual subject to the limit of Rs.57,750.00

-do-

M/s. S.K.Lulla & Co., Chartered Account-ants, Gwalior (M.P.).

Branch Auditor

Rs.1,80,469.00 At actual subject to the limit of Rs.57,750.00

-do-

21.2 Shri Krupesh Mankodi, Practising Company Secretary, Jabalpur was appointed as Secretarial Auditor by NCL Board in its 192nd Meeting held on 14.2.2015 vide Item No.192/C-8 in terms of Section 204 of the Companies Act, 2013 to conduct Secretarial Audit of NCL for the Financial Year 2014-15 at a total remuneration of Rs. 50,000.00 only plus to and fro Second AC train fare plus local conveyance and actual lodging and boarding expenses.

21.3 Pursuant to the direction of the Central Government for audit of Cost Accounts, the proposal for appointment of 3 Firms of Cost Accountants as Cost Auditors for auditing the cost accounts of your company for the year ended 31st March, 2015 was approved by the Central Government and they have accordingly been appointed.

The particulars of Cost Auditors as required under Section 233(B) of the Companies Act 1956 read with General Circular No.15/2011 dated 11.4.2011 issued by the Ministry of Corporate Affairs are given below for the year 2014-15 :

ANNUAL REPORT 2014-15 _________________________________________________________

58

SL.No.

Name of the Cost Audit Firm

1 M/s K.B. Saxena & Associates, (RN 000313) 208-209 Ansal City Center, Hazratganj, Lucknow, UP-226 001

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

3 M/s B.Mondal & Associates, (RN 11681) 61/H/15 Raja Naba Krishna Street, Kolkata- 700 005

22.0 CORPORATE GOVERNANCE

22.1 Board of Directors

(i) Shri T.K.Nag, assumed the charge of Chairman-cum-Managing Director, NCL from 30.09.2014.

(ii) Ms. Shant i lata Sahu, Director (Personnel), NCL held additional Charge of Chairman-cum-Managing Director, NCL from 20.09.2013 to 29.09.2014.

(iii) Ms. Shantilata Sahu continued to be Director (Personnel) during the year.

(iv) Shri Niranjan Das ceased to be Director (Technical), NCL w.e.f. 2.10.2013 in terms of MOC’s letter No.21/3/2007-ASO dated 3.11.2014 and order No.CIL/C-5/A(ii)/N.Das/DTNCL/B-380 dated 4.11.2014 issued by GM(P), CIL, Kolkata.

(v) Shri A.D. Mathur, Director (Technical/Operations) retired on attaining the age of superannuation on 31.1.2015.

(vi) Shri Gunadhar Pandey assumed charge as Director (Technical), NCL w.e.f. 1.2.2015.

(vii) Shri B.K.Saxena, Director (Marketing), CIL continued to be Part Time Official Director, NCL Board during the year.

(viii) Shri Surinder Jit Sibal and Shri A.K.Gupta, continued to be Part-time Non Official Directors , NCL Board during the year.

(ix) Shri Deepak Nath, continued to be Permanent Invitees, NCL Board,

during the year.(x) Shri N.N. Misra, Director (Operations),

NTPC ceased to be Permanent Invitee, NCL Board on 31.10.2014.

(xi) Shri C.P. Rai, Additional Principal Chief Conservator of Forest (LM), Govt. of MP, continued to be Permanent Invitees, NCL Board, during the year.

(xii) Shri A.K. Pandey continued to be Director (Finance) during the year 2014-15. He ceased to be Director on 31.03.2015.

(xiii) Shri P.S.R.K. Sastry assumed charge as Director (Finance), NCL w.e.f. 1.4.2015.

(xiv) Shri Vivek Bharadwaj, Joint Secretary, Ministry of Coal, New Delhi continued to be Part-Time Official Director, NCL Board during the year 2014-15. He ceased to be Part Time Official Director on 20.04.2015.

(xv) Shri Rajesh Kumar Sinha, Joint Secretary, Ministry of Coal, New Delhi was appointed as Part-time Official Director, NCL Board w.e.f. 20.4.2015 vice Shri Vivek Bharadwaj.

22.1.1 Appointment of Chief Financial Officer(i) Shri A.K. Pandey, Director (Finance),

NCL was appointed as Chief Financial Officer (CFO) vide item no. 191/C-10 in 191st Board Meeting held on 31/01/2015 at New Delhi. He ceased to be CFO on 31/03/2015 on attaining the age of superannuation.

(ii) Shri P.S.R.K. Sastry, Director (Fin.), NCL has been appointed as CFO w.e.f. 01/04/2015 vide item no. 194/E-4 in 194th Board Meeting held on 20/04/2015 at Singrauli.

22.2 Board Meetings22.2.1 During the year 9 (Nine) Meetings of the

Board of Directors of NCL were held.22.2.2 Attendance of Directors and Permanent

Invitees in Board Meetings:


59

22.2.3 Attendance of Directors in Annual General Meeting.

In the 29th Annual General Meeting of Members of NCL held on 17th June, 2014, Chairman-cum-Managing Director/Director (Personnel), Director (Technical/Operations) and Director (Finance), were present.

22.3 Audit Committee

22.3.1 In pursuance of the guidelines of Corporate Governance for Central Public Sector Enterprises received from Department of Public Enterprises issued vide office

Memorandum No. 18(8)/2005-GM dated 14th May’2010, Board of Directors of NCL in its 191st Meeting held on 31st January, 2015 vide item No. 191/C-5 reconstituted the Audit Committee as under : (1) Shri A.K.Gupta, Part Time Non-Official Director, NCL - Chairman

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

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

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

22.3.2 Besides, Director (Personnel), Director (Technical) and Director (Finance), NCL attend and participate in the meetings of the Audit Committee as invitees.

BOARD MEETING NO. AND DATE

Name of Directors 18524.5.14

18622.7.14

1877.8.14

18812..9.14

18930.10.14

19019.12.14

19131.01.15

19214.2.15

19325.2.15

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

Ms. Shantilata Sahu, D(P), (Addl. Charge of CMD, NCL upto 29.9.2014) P P P P P P P P P

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

Shri A.D. Mathur, D(T/O) P P P P P P P Ceased to be Director on 31/01/2015

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

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

PART TIME OFFICIAL DIRECTORS

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

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

PART TIME NON OFFICIAL DIRECTORS / INDEPENDENT DIRECTORS

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

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

PERMANENT INVITEES

Shri N.N.Misra NP P NP P NP NP Ceased to be permanent invitee on 31.10.14

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

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

P = Present, NP = Not Present

ANNUAL REPORT 2014-15 _________________________________________________________

60

22.4 Role of Audit Committee :

The role of the Audit Committee shall include the following:

(a) Oversight of the Company’s financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible.

(b) Recommending to the Board the fixation of Audit fees.

(c) Approval of payment to statutory auditors for any other services rendered by the statutory auditors.

(d) Reviewing the management, the annual financial statements before submission to the Board for approval, with particular reference to:

(i) Matters required to be included in the Directors’ Responsibility statement to be included in the Board’s report in terms of clause (2AA) of section 217 of the Companies Act’1956 or Section 134(3)(c) of the C o m p a n i e s A c t m 2 0 1 3 (whichever applicable).

(ii) Changes, if any, in accounting policies and practices and reasons for the same;

(iii) Major accounting, entries involving estimates based on the exercise of judgment by management;

(iv) Significant adjustments made in the financial statements arising out of audit findings;

(v) C o m p l i a n c e w i t h l e g a l requi rements re la t ing to financial statements;

(vi) Disclosure of any related party transactions; and

(vii) Qualifications in the draft audit report.

(e) Reviewing with the management, the quarterly financial statements before submission to the Board for approval.

(f) Reviewing with the management, performance of internal auditors and adequacy of the internal control systems.

(g) Reviewing the adequacy of the Internal Audit functions, if any including the structure of Internal Audit Department, staffing and seniority of the official heading the Department reporting structure, coverage and frequency of Internal Audit.

(h) Discussion with internal auditors and /or auditors any significant finding and follow up there on.

(i) Reviewing the findings of any internal investigation by the internal Auditors/Auditors/Agencies into matter where there in suspected fraud or irregularity or a failure of Internal Control Systems of a material nature and reporting the matters to the Board.

(j) Discussion with Statutory Auditors before the audit committee, about the nature and scope of audit as well as post audit discussion to ascertain any area of concern.

(k) To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, share holders ( in case of Non- payment or declared dividends) and creditors.

(l) To review the functioning of the Whistle Blower Mechanism.

(m) To review the follow up action on the audit observations of the C&AG Audit.

(n) To review the follow up action taken on the recommendations of Committee


61

on Public Undertakings (COPU) of the Parliament.

(o) p rov i de an open avenue o f commun ica t i on be tween t he independent Auditor, Internal Auditor and the Board of Directors.

(p) Review all related party transactions in the company. For this purpose the Audit Committee may designate a member who shall be responsible for reviewing related party transactions.

(q) Review with the independent Auditor, the co-ordination of audit efforts to assure completeness of coverage, reduction of redundant efforts, and the effective use of all audit resources.

(r) Consider and review the following with the independent Auditor and the Management :

(i) The adequacy of Internal controls including computerized information system controls and security, and

(ii) R e l a t e d f i n d i n g s a n d recommendat ions of the independent Audi tor and Internal Auditor, together with the management responses.

(s) Consider and review the following with the management, internal Auditors and independent Auditor:

(i) Signif icant f inding during t he yea r, i nc l ud ing t he s ta tus o f prev ious audi t recommendations.

(ii) Any difficulties encountered during audit work including any restriction on the scope of activities or access to required information.

(t) Carrying out any other function as is mentioned in the terms of reference of the Audit Committee.

22.5 During the Financial Year 2014-15, 9(Nine) meetings of Audit Committee were held and attendance of the Chairperson and Members were as under:

Name of Directors Designation62 63 64 65 66 67 68 69 70

24.05.14 22.07.14 07.08.14 12.09.14 30.10.14 19.12.14 31.01.15 14.02.15 25.02.15

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

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

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

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

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

PART TIME OFFICIAL DIRECTORS

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

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

PART TIME NON OFFICIAL DIRECTORS/INDEPENDENT DIRECTORS

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

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

ANNUAL REPORT 2014-15 _________________________________________________________

62

22.6 Training of Board Members

22.6.1 No training programme was conducted during the year for the Board Members.

23.0 Other Statutory Disclosures

23.1 Director responsibility statement

Pursuant to section 134(5) of the Companies Act, 2013, 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 had been followed along with proper explanation relating to material departures;

b) that the Directors had selected such Accounting Policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the Financial Year and of the profit or loss of the Company for that period;

c) that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) that the Directors had prepared the Annual Accounts for the Financial Year ended 31st March, 2015, on a going concern basis.

e) that the Directors had devised proper system to ensure compliance with the provision of all applicable laws and that such systems were adequate and operating effectively.

23.2 Extracts of the Annual Return as required under Section 134(3)(a) of the Companies Act, 2013 read with Rule 12(1) of the Companies (Management and Administration) Rules, 2014 in Form No. MGT-9 is enclosed as Annexure-IV.

23.3 Declaration given by Independent Director under Section 149(6) of the Companies Act, 2013 that they fulfills the criteria of Independence was taken on record by the Board.

23.4 In pursuance of Articles of Association of the Company and as per its constitution, Directors are appointed by the Government and their remuneration is also determined by the Govt. of India.

23.5 There are no such loans, guarantees or investments under Section 186 of the Companies Act, 2013

23.6 The Related Party Disclosure has been given in Note 34 “Additional Notes on Accounts” as point 2.III.

23.7 There are no such material changes and commitments affecting the Financial position of the company which have occurred between the end of the Financial Year of the Company to which the financial statements relate and the date of the report.

23.8 Actual performance vis-à-vis MOU standards are compared and audited. These are also put before the Board of NCL as well as Coal India Limited.

23.9 There are no deposits under Chapter-V of the Companies Act, 2013.

23.10 There is no such order passed by any Courts/Tribunals impacting the Going concern status and company’s operation in future.

23.11 The Company has in place adequate internal financial controls with reference to financial statements. During the year, such controls to make sure that assets are protected and that company activities are conducted in accordance with the organisation’s policies and procedures, were tested and no reportable material weakness in the design or operation were observed in the CAG Audit, Statutory Audit and Internal Audit.


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23.12 Management assessment of the Company’s Outlook for the Future and to Identify Important Risk that the company may face in future.

For laying down procedures of Risk Assessment and Mitigation procedures, CIL has engaged a consultant M/s Ernst & Young LLP Kolkata, West Bengal, vide ref. no. CIL/CP/Risk Assessment/14/132 dt. 19.2.2014 and given contract for preparation of Risk Assessment and its Mitigation procedure in Coal India Ltd and all of its subsidiary companies separately. The same is under final stage and is to be approved by CIL Board. After getting the approved Risk Management Plan from CIL, the same will be put up before the Board. FDs have approved the Risk Register for Enterprise Risk Management Programme of NCL vide Item No.477:8 in its 477th meeting held on 7.4.2015.

23.13 Whistle Blower Mechanism

No person i.e. whistle blower has been prevented from direct access to Chairperson of the Audit Committee.

23.14 Disclosure and information under the Sexual harassment to women at work place (Prevention, Prohibition and Redressal) Act 2013.

A committee has been formed as per provisions of the Act and no case has been reported during the year.

24.0 PERFORMANCE AGAINST MOU PARAMETERS

24.1 The Memorandum of Understanding (MOU) between CMD, NCL and Chairman, CIL for the year 2014-15 was signed on 25.3.2014 as per guidelines of Department of Public Enterprises (DPE), Ministry of Heavy Industries and Public Enterprises, Government of India.

24.2 The performance of NCL during 2014-15 against MOU 2014-15 parameters has been audited by Statutory Auditors of NCL. Parameter-wise details of performance

are enclosed as Annexure-V. The overall MOU grading of NCL for 2014-15 is Very Good with a composite score of 2.4182.

25.0 AWARDS

25.1. Vigilance Excellence Award :

25.1.1 CVO,NCL has received Vigi lance Excellence Award from Shri Pradeep Kumar, Central Vigilance Commissioner, CVC, New Delhi on the occasion of Eleventh Anniversary celebration of Vigilance Study Circle, Hyderabad on 07.07.2014.

The award was given for the case study on the “Preventive Vigilance” done by Vigilance,NCL.

25.1.2 NCL has received Vigilance Excellence Award for the year 2015 from Institute of Public Enterprises. The institute had organized a “Conclave of Vigilance Officers (Sharing of experience & Best practices) on 12th & 13th March 2015 at IPE auditorium, Osmania University, Hyderabad. NCL Vigilance has bagged this Award on its excellent track record of Vigilance activities, helped in securing significant savings on its actions/suggestions during last three years in E-initiatives/Leveraging Technology, moreover for its efforts in spreading the vigilance awareness and sensitizing the employees and others stake holders.

25.1.3 Award has also been given to CVO, NCL for implementing various e-initiatives.

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25.2 National Safety Awards

25.2.1 Jhingurda Project of NCL has been awarded the 1st prize (Winner) for the Longest Accident Free Period (LAAP) in the open cast mines type for the year 2011 and the 1st prize (Winner) for the “LOWEST INJURY FREQUENCY RATE” (LIFR) in the open cast Mines type for the year 2012 in the Presentation Ceremony of National Safety Awards(mines) 2011-12 held at New Delhi on 20th March 2015.

25.3 NCL has been bagged with Gold award for outstanding achievement in Corporate Social Responsibility (CSR) in Metal Sector by Greentech Foundation, New Delhi and has been awarded as “50 most caring companies of India” by World CSR Congress, Mumbai in the year 2014-15.

26.0 AVAILABILITy OF ANNUAL ACCOUNTS OF NCL AT hEADQUARTERS OF ThE COMPANy.

26.1 The Annual Accounts of Northern Coalfields Limited for the year 2014-15 will be available at the Headquarters of NCL at Singrauli (MP) for providing information to the Shareholders of Coal India Limited on demand.

27.0 ACKNOWLEDGEMENT

27.1 The Board of Directors place on record their deep gratitude for the continued support and valuable guidance received from Ministry of Coal and Coal India Ltd. The Directors also acknowledge with thanks the co-operation and help extended by different wings of Govt. of India particularly Ministry of Environment & Forest and Ministry of Finance, as well as from Planning Commission, Director General of Mines Safety, Comptroller & Auditor General of India, Chairman and Members of Audit Board, Statutory Auditors, Registrar of Companies, State Governments of MP and UP and Local Administrative Authorities.

27.2 The Directors are also thankful to the valued customers particularly NTPC and UPRVUNL and Bakers, Contractors and Suppliers for the valuable assistance and help received from them.

27.3 The Directors wish to place on record their appreciation for the commitment, devotion and hard work put in by the employees at all levels.

For and on behalf of the Board of Directors

Sd/- ( Tapas Kumar Nag ) Chairman-cum-Managing Director

Date : 26th June, 2015

Place: Singrauli


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ANNEXURE-I TO DIRECTORS’ REPORT

Annual Report on CSR Activities for the Financial Year 2014-15 as per Clause (O) of Sub-section (3) of section 134 of the

Companies Act 2013

1.0 BRIEF OUTLINE OF ThE NCL’S CSR POLICy:

1.1 Northern coalfields Limited (NCL) follows the CIL’s Policy for Corporate Social Responsibility (CSR) approved by CIL Board in its 307th meeting held on 29th May, 2014. This policy has been framed after incorporating the features of the Companies Act 2013 and as per notification issued by Ministry of Corporate Affairs, Govt. of India on 27.02.2014 as well as DPEs guidelines.

1.2 The main objective of CSR policy is to lay down guidelines for the company to make CSR a key business process for sustainable development for the Society. It aims at supplementing the role of the Govt. in enhancing welfare measures of the society based on the immediate and long term social and environmental consequences of their activities.

1.3 NCL has adopted Corporate Social responsibility as a strategic tool for sustainable growth. The geographical area where NCL is situated i.e. parts of Singrauli district (Madhya Pradesh) and parts of Sonebhadra district (Uttar Pradesh) is an under-developed area of India with poor infrastructure, healthcare facilities, literacy & employment rate. NCL endeavors towards the upliftment of the poor and underprivileged people of this area through various schemes/activities and also by sharing its in-house facilities with them.

The primary beneficiaries of CSR are land oustees, PAP and those staying within the radius of 25Kms of the Project. Poor and needy section of the society living in other parts of Uttar Pradesh and Madhya

Pradesh are the secondary beneficiaries.

1.4 The scope of CSR activities undertaken by NCL is as per Schedule VII of New Companies Act 2013.

1.5 The fund for the CSR is allocated based on 2% of the average net profit of the Company for the three immediate preceding financial years or Rs. 2.00 per tonne of Coal Production of previous year whichever is higher.

1.6 NCL has a Board Level Committee on CSR and Sustainable Development which reviews the implementation of CSR activities in every six months and recommends the amount of expenditure to be incurred on CSR activities.

2.0 OVERVIEW OF CSR ACTIVITIES/PROJECTS UNDERTAKEN By NCL DURING ThE yEAR 2014-15

2.1 In the financial year 2014-15, NCL have done CSR activities in areas of building infrastructure, water supply, skill development, healthcare, education etc. with a total expenditure of Rs. 61.77 crores as against the total expenditure of Rs. 39.72 crores for the year 2013-14.Also, NCL released an amount of Rs. 40.14 crores to Hindustan Prefab Limited (HPL) in the year 2014-15 as first installment for construction of 5000 schools toilets under Swacch Vidyalay Abhiyan.

2.2 The broad CSR heads and corresponding expenditure are as follows:-

i. Roads (GAON JODO ABhIyAN) : NCL’s Gaon Jodo Abhiyaan is a step taken by NCL to connect the different villages in Singrauli and adjoining areas with town areas with roads. With the

ANNUAL REPORT 2014-15 _________________________________________________________

66

road connectivity, the villagers have started bringing their products to market which otherwise was being arranged through middleman. This has immediately increased their earning capacity. Further many unemployed youths are getting jobs in the town with the start of public transport. In case of any health care emergency they are able to reach our company hospital or private doctors in time. The travel time has reduced significantly. NCL has constructed/carpeted/widened 30 kms of roads approximately in the year 2014-15 with a total expenditure of Rs. 36.71 Crores.

ii. Infrastructure (AADhAR): Infrastructure works undertaken by NCL in the year 2014-15 includes Construction of community halls in villages, electrification of villages, distribution of solar lanterns to poor & needy people, Construction of toilets etc. with a total expenditure of Rs. 4.35 crores.

iii. Water Supply (SWAChh JAL) : NCL has installed 9 RO plants, 150 hand pumps in nearby villages to provide safe drinking

water. NCL has also constructed 3 ponds and 2 check dams in different villages around NCL. The total expenditure under this head is of Rs. 3.49 Crores.

iv. Skill Development & Employment Generation (KAUShAL)- NCL has imparted different types training viz. Security guard training, LMV driving training, bag making training, beautician training, embroidery and tailoring training for employment generation through qualified trainers to the unemployed youths (both male & female) of the nearby villages with an expenditure of Rs. 1.29 Crores.

v. health (SAB SWASTh)- Besides healthcare facilities provided to poor villagers in different project dispensaries, NCL has organized health camps like family planning camp, cancer detection camp, urology camp, diabetic camp, eye camp etc. in different projects, Central Hospital and NSC. The expenditure i ncu r red by NCL Hosp i ta l s and dispensaries in these camps is Rs. 0.48 Crores.


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vi. Sports/Art & Culture (KhEL TARANG) - NCL has contributed for the promotion of Sports/Art & culture with an expenditure of Rs. 0.15 Crores.

vii. Education (SAB SAKShAR)- NCL has contributed in various educational activities like deficit grant, construction of school buildings, supply of furniture & dari/carpets to Govt. schools etc with an expenditure of Rs. 15.29 Crores.

2.3 Swachh Vidyalaya Abhiyan

NCL is actively involved in Swacch Vidyalaya Abhiyan, a national campaign by the Government of India. Under this program NCL will construct/repair 5695 toilets in government schools of 10 districts of Madhya Pradesh. NCL has signed

a MoU on 13.01.2015 with Hindustan Prefab Limited (A Govt. of India Unit) for construction of 5000 new toilets and repair of 695 existing toilets under Swacch Vidyalaya Abhiyan. NCL has released an amount of Rs. 40.14 crores to HPL in the year 2014-15 as first installment for the work.

2.4 Web link for the CSR policy and programs

The CSR Policy and Programs/projects can be viewed at: http://www.ncl.nic.in/csr/csr.php

3.0. COMPOSITION OF ThE SUSTAINABLE DEVELOPMENT AND CSR COMMITTEE

The Sustainable development and CSR Board level committee constituted in the 180th Board meeting on 10.09.2013 comprise of following members:

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

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

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

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

4.0 AVERAGE NET PROFIT OF ThE C O M PA N y F O R L A S T T h R E E FINANCIAL yEARS

Financial year Net Profit (in Crores)

2011-12 4265.67

2012-13 4420.58

2013-14 3355.71

Average net profit for last three years

4013.99

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5.0. PRESCRIBED CSR EXPENDITURE (TWO PER CENT OF ThE AMOUNT AS IN ITEM 3 ABOVE)

The prescribed CSR expenditure is Rs. 80.28 Crores (Eighty Crores Twenty Eight Lakhs only) which is equal to 2% of the average net profit of last three years.

6.0. DETAILS OF CSR AMOUNT SPENT DURING ThE FINANCIAL yEAR

6.1 Total amount to be spent by NCL under CSR for the financial year 2014-15 was Rs. 80.28 Crores (Eighty Crores and Twenty Eight Lakhs only)

6.2 NCL has released an amount of Rs. 101.91 Crores under CSR for the financial year 2014-15, out of which an amount of Rs. 40.14 Crores was released as first installment for construction of 5000 toilets to Hindustan Prefab Limited (HPL) under Swachh Vidyalaya Abhiyan . But, since

HPL had not submitted the utilization certificate to NCL before the end of financial year 2014-15, the same was not accounted for and treated as advance.

6.3 Therefore, NCL’s CSR expenditure for the year 2014-15 is Rs. 61.77(Sixty one crore and seventy seven lakhs) Crores and amount unspent in 2014-15 is Rs. 18.51 Crores (Eighteen crores and fifty-one lakhs only)

6.4 Manner in which the CSR amount spent during the financial year

The details of the amount spent during the financial year 2014-15 is annexed herewith.

7.0 IMPLEMENTATION AND MONITORING OF CSR POLICy

7.0.1 The implementation and monitoring of CSR Policy, is in Compliance with CSR objectives and Policy of the Company.

T.K.Nag S.J.Sibal Shantilata Sahu CMD, NCL Chairman, SD&CSR committee Director(P),NCL

Dated:26/06/2015

Place. Singrauli.


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ANNEXURE TO ANNUAL REPORT OF CSR ACTIVITIES IN NCLDETAILS OF AMOUNT SPEND DURING FINANCIAL yEAR 2014-15 UNDER CSR

Sl.No. CSR Activity Sector in which project is covered

Project Amount Outlay in Rs. (in Rs lakhs)

Expend-iture in

Rs. (in Rs

lakhs)

Cumu-lative

expend-iture (in Rs

lakhs)

Implementing Agency

1 Electrification of Bharuha village Infrastructure Amlori 68.9 68.9 68.9 Madhya Pradesh Electricity board

2 Installation of RO plant and providing water through tankers

Water Supply Amlori 72 24.29 24.29 Madhya Pradesh Govt.

3 WBM and carpeting from Kachni main road to Aml. Main road near Arjun Kushwaha house

Roads Amlori 45 22.59 22.59 M/s Shivshankar Electricals and Civil Engg.

4 Construction of CC road from Samudaik Bhawan to Biar Adivasi Basti

Roads Amlori 40 30.04 30.04 M/s Parihar Supplier and Co.

5 Running and maintinance of 04 nos. embroidery & tailoring training centre.

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

6 Providing toilets, boundary wall and misc. works at Dr. Ambedkar Bal Vidya Mandir at Jawahar nagar, toilets at primary school of Gharsari village.

Infrastructure Bina 20 21.55 21.55 M/s Virendra Singh

7 Providing marriage hall / community center for villagers of Jamshila Nagar, Gharsari, Chandwar at Gharshari village

Infrastructure Bina 75 76.55 76.55 M/s Kumar and Kumar

8 Providing CC approach road to Saati tola of Bansi village

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

9 Village sports(Kabaddi tourbnament on 07-08 Feb 2015 )

Sports and Culture Bina 1.5 1.48 1.48 Bina Project

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

11 Diabetes and Hypertension check up and treatment camp

Healthcare Bina 2 1.98 1.98 Bina Project Hospital

12 Deepening of existing pond at village Gharsari

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

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

14 Construction of ponds in Gorbi village at Chitahi tola

Water Supply Block B 32 26.3 26.30 M/s Rural & Urban Pest Control(Open Tender)

15 Construction of 4 rooms at Saraswati Shishu Mandir, Gorbi

Education Block B 12.5 17.99 17.99 M/s Rural & Urban Pest Control(Open Tender)

16 Organizing village sports Competition Sports and Culture Block B 1.5 1.5 1.50 Block-B

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

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

19 Periodical cleaning of allied works of pond near Singrauli Railway station

Water Supply Block B 2 1.73 1.73 M/s VSTSS, Singahi (Purwa Tola)

20 Construction of CC Road from Panchayat ghar to house of Anis Khan via house of shiv prasad at solang

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

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21 Supply of fish seeds in Mudwani village Skill Dev/Emp. Gen. Dudhichua 1.1 1.1 1.10 Supply by Asstt. Director Fisheris, Pondi (Maihar) M.P & dropped by CSR Team Dudhichua

22 Construction of road from Jayant STP at Dudhichua Project top Harrai through Abhed Ashram

Roads Dudhichua 300 157.68 260.65 M/s Samay Enterprises

23 Construction of community centre at Mudwani village

Infrastructure Dudhichua 10 0.72 12.19 M/s Shivshankar Electricals and Civil Engg.

24 Installation of RO plant and water supply through tanker

Water Supply Dudhichua 74.35 22.16 22.16 Nagar Palika Nigam; Singrauli (M.P) through: M/s C.S Marketing Anpara, Sonbhadra (U.P)

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

26 Repair and widening of road from main road to primary school Mudwani

Roads Dudhichua 60 28 28 M/s Shivshankar Electricals and Civil Engg.

27 Organizing sports Competition at Mirchagarh village

Sports and Culture Dudhichua 1 1 1 Dudhichua Project

28 Running and maintinance of embroidery & tailoring training centre.

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

29 Supply of furniture to Govt. middle school , Dudhichua

Education Dudhichua 3.18 3.13 3.13 Through open tender by Dudhichua project

30 Distribution of 1650 nos. solar lanterns to poor and needy villagers

Infrastructure Headquarter 32 30.01 30.01 M/s Palak Industries Nagpur, M.P(Open Tender)

31 LMV driving training to 100 nos. unemployed youths under CSR.

Skill Dev/Emp. Gen. Headquarter 5 4.98 4.98 M/s Taggar Motor Driving Training School, Nawanagar, Singrauli (open tender)

32 Distribution of 1000 nos. Mosquito nets to poor and needy villagers under CSR.

Healthcare Headquarter 35 2.35 2.35 Singrauli Cloth House(Committee Purchase)

33 Construction of CC road from Chatri to Churki under CSR

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

34 Construction of WBM Road from Amlihwa to Khairwari Tola at Ajgurah under CSR

Roads Headquarter 110 75.32 85.71 M/s K K Bhawasinka- VK Enterprises (JV) (open tender)

35 Widening of road from Singrauli railway station junction to parshohar

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

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

37 Development of pond near Singrauli Railway station and at Madhauli nallah

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

38 Extension of Ambedkar smriti high school at Singrauli

Education Headquarter 40 28.46 53.45 M/s IP Associates (open tender)

39 Development of muktidham at Chatka Infrastructure Headquarter 90 84.55 104.46 M/s Binay Kumar Singh (open tender)

40 Construction of Four number rooms at Saraswati Shishu Mandir Higher Secondary School Singrauli

Education Headquarter 35 36.74 36.74 M/s Abhay Kumar Tiwari (open tender)

41 Construction of CC road from Hardi to Dhaturaverwa

Roads Headquarter 350 284.57 284.57 M/s National Prestige Construction

42 Carpeting of road at Ward No. 9 in Singrauli

Roads Headquarter 185 210.63 210.63 M/s K.K Bhawasinka-V.K enterprises (JV)


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43 Training for security guard to local enemployed youths

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

44 Installation of handpumps Water Supply Headquarter 150 100.64 161.39 M/s Binay Kumar Singh (open tender)

45 Construction of stage with shed at Ghorawal

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

46 Organizing village sports in Karela village Sports and Culture Headquarter 2.5 2.45 2.45 NCL HQ

47 Heart treatment of Ms. Kusum Kali at SGPGI Lucknow

Healthcare Headquarter 2.1 2.1 2.10 SGPGI Lucknow Treatment/operation to be done last weak of Dec’14

48 Financial Assistance to Inderjit Singh (shot-Put Player) for training

Sports and Culture Headquarter 3 3 3.00 NCL HQ

49 Distribution of woolen blankets to BPL Card Holder of nearby villages

Healthcare Headquarter 15.92 14.52 14.52 M/s UPICA Handloom and Handicrafts Ltd.

50 Setting up of 100 units of Co-operative based poultry farms

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

51 Providing sports materials to Birkunia and Karela village

Sports and Culture Headquarter 2 1.92 1.92 M/s Gajendra Enterprises

52 Distribution of dari/carpets for students and tables and chairs for teachers of Govt. schools of nearby villages

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

53 Deficit grant pertaining to non- NCL wards in NCL funded schools

Education Headquarter 1393.72 1393.72 1393.72 NCL HQ

54 Talent search program for rural sports persons including provision for sports kits

Sports and Culture Headquarter 15 0.85 0.85 NCL HQ

55 Districbution of 70 nos. solar lanterns in Mudwani village

Infrastructure Headquarter 6 1.27 1.27 M/s Palak Industries Nagpur, M.P(Open Tender)

56 Oraganizing free medical camps in villages for BPL persons

Healthcare Jayant 3.5 2.29 2.29 Jayant project hospital

57 Construction of cremation ghat/shed beside Ballia Nala

Infrastructure Jayant 6 4.69 9.66 M/s Ram Ugrah Shah

58 Construction of 500m road towards creamtion Ghat

Roads Jayant 6 2.84 4.92 M/s Ram Ugrah Shah

59 Installation of 80 nos. solar lights in Dheki village by jayant project

Infrastructure Jayant 10 10 10 Through open tender by Jayant project

60 Construction of 200m PCC Road Roads Jayant 20 6.48 17.28 M/s Chhotelal Shah61 Deepening of pond in Dheki and Pauri

NagaiWater Supply Jayant 40 14.34 14.34 M/s Vikash Associates

62 Adult Education of villagers Education Jayant 1 1.5 1.5 Jayant project63 Installation of RO plant Water Supply Jayant 76.4 18.4 18.4 District Administration

Singrauli64 Community Hall in Dheki village Infrastructure Jayant 40 23.66 23.66 M/s C.P. Mishra65 Training centre for self-employment

for Project Affected and Unemployed villagers

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

66 Honorarium to instructor for stitching classes conducting by Mahila Mandal

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

67 Construction of CC road including 8 nos. culverts from existing road to existing bridge at Chakariya village.

Roads Jhingurda 158.66 177.01 177.01 M/s Sinha Infotech

68 Construction of CC road from Pradhanmnatri Grameen sadak to Isri tola at Churki village.

Roads Jhingurda 81.11 87.51 87.51 M/s Shivshankar Electrical work

69 Installation of RO plant and water supply thorugh tanker

Water Supply Jhingurda 38 18.78 18.78 Nagar Nigam, singrauli (M.P)

ANNUAL REPORT 2014-15 _________________________________________________________

72

70 Village sports in and around Jhingurda Project

Sports and Culture Jhingurda 2 1.03 1.03 Jhingurda Project

71 Construction of boundary wall of High school at Chakariya village

Infrastructure Jhingurda 10 5.28 5.28 M/s IP Associates

72 Construction of bus stand near Rehta more

Infrastructure Kakri 3.5 2.5 2.5 M/s Vimal Electrical works

73 Renovation of playground, construction of public platform at Garbadha village

Sports and Culture Kakri 2 2.05 2.05 M/s Laxminarayan bhumihin visthapith berojgar shramsamvida samiti

74 Construction of bitumen road from primary school to MP border

Roads Kakri 56 17.1 49.90 M/s D D Singh

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


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

77 Construction of check dam for irrigation purposes at Ranhore village

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

78 Construction of sulabh sauchalaya complex at Auri more including water supply arrangement to the complex

Infrastructure Kakri 25 20.49 20.49 M/s Ram Lakhan singh & Co

79 Construction of toilet and approach road for middle school at Garbandha village

Infrastructure Kakri 6.5 7.65 8.4 M/s Rajendra Panday

80 Repair and maintenance of 1.1 kms long PWD road from Ambedkarnagar to Ballia nallah

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

81 Construction of 1.9 kms long CC road in Ambedkarnagar

Roads Khadia 60 50.28 50.28 M/s Ranapratap

82 Installation of RO plant and water supply through tanker

Water Supply Khadia 32 26.88 26.88 M/s Dishan and brothers

83 Installation of RO plant Water Supply Krishnashila 138.16 32.52 32.52 M/s Deioners Speciality Chemical (P) Ltd.

84 Widening of road from Nigahi more to Dudhichua ROB

Roads Nigahi 450 696.58 696.58 M/s Suman Engg


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

86 Renovation/repair of old buiding and construction of 4 nos. Rooms, toilets and verandah at Saraswati Shishu Mandir , Nandgaon

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

87 Construction of RCC drain along approach road and internal road for cluster no.1 in Nandgaon

Infrastructure Nigahi 45 34.16 34.16 M/s Om Construction

88 Construction of PCC road of cluster no.1 and 500m new WBM road at different locations in Nandgaon

Roads Nigahi 30 21.6 21.6 M/s Dhirendra Construction

89 Installation of RO plant Water Supply Nigahi 14 7.9 7.9 Nagar Palika Nigam; Singrauli (M.P)

90 Approach road in Nandgaon village Roads Nigahi 40 15.86 31.86 M/s Randheer Enterprises

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

92 Electrical works in Yoga hall of NSC Infrastructure NSC 2 1.86 1.86 M/s Dev Enterprises93 Health Camps Healthcare NSC 46.5 23.43 23.43 Nehru Shatabdi

Chikitsalaya, NCL Singrauli

TOTAL 6804.01 6176.6 6845.19*** Construction of toilets in schools under

Swacch Vidyalaya AbhiyanInfrastructure Headquarter 4014 4014 4014 M/s Hindustan Prefab

Ltd.Note :NCL has released Rs. 40.14 crores to Hindustan Prefab Limited (HPL) (after signing of MoU on 13.01.2015) as first installment for construction of 5000 toilets under Swachh Vidyalaya Abhiyan


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ANNEXURE- II TO DIRECTOR’S REPORT Information in accordance with the provisions of Section 134 (3) of the Companies Act. 2013 read with Rule (8) of the Companies Accounts Rules, 2014 regarding Conservation of Energy, Technology Absorption and Foreign Exchange Earnings & Outgo.

A) CONSERVATION OF ENERGy

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

a) Electrical Energy.

i) NCL has earned a bonus of Rs.3.24 crore both from MPSEB and UPPCL points of supply put together towards power factor and load factor rebate during the year 2014-15. NCL has also earned TOD rebate of Rs.3.78 Crore.

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

1. Compact Fluorescent lamps and other energy efficient lamps have been installed at Hqrs., Block’B’, Jhingurda, Kakri, Bina, Khadia, CWS, Nigahi and Amlohri Projects of NCL.

2. Time switches have been installed for streetlights in CHP, Mines and residential Areas at Block –B, Jhingurda, Bina, CWS, Dudhichua, Nigahi and Amlohri projects

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

4. Solar water heater and solar panel for solar light system have been installed at Officer’s club/VIP Guest house of Jayant project and Solar Light System has sbeen installed at Khadia and Bina Project.

b) Fuel & Lubricants

i) Strict compliance of approved comprehensive guidelines for monitoring of diesel consumption in all projects of NCL.

ii) The actual diesel consumption of mines is being compared with the benchmark data of CMPDI on monthly basis for monitoring purpose.

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

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

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

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

Rs. 2.22 lakhs

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

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

Total Rs. 146.31 lakhs

ANNUAL REPORT 2014-15 _________________________________________________________

74

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

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

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

SL No.

Description 2014-15 2013-14 % increase/ decrease

A. Electrical Energy :

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

(ii) Consumption of energy per cu.m. of composite production i.e. coal plus OB & R.H.(KWH/Cu.m.composite)

2.77 2.70 (+) 2.59

B. Fuel & Lubricant :

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

1.10 1.14 (-) 3.51

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

0.038 0.039 (-)2.56

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

(C) FOREIGN EXChANGE EARNING & OUT

(i) Activities relating to exports, initiatives taken to increase exports, development of new export markets for products and services and export plans.

Company is not engaged in export activities.

(ii) Total Foreign Exchange used and earned.(Rs. in Crores)

Current year Previous year

(A) Foreign Exchange earned NIL NIL

(B) Foreign Exchange used

i) C.I.F. Value of Imports

(a) Raw materials NIL NIL

(b) Components, Stores & Spare Parts 92.26 126.80

(c) Capital Goods NIL 1.83

ii) Repayment of JBIC Loan NIL 322.72

iii) Repayment of IBRD Loan NIL 355.19

iv) Travelling Expenses 0.01 0.08

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

Total 92.27 814.95


75

F O R M ‘ B’Disclosure of Particulars with respect to Technology Absorption

RESEARCh & DEVELOPMENT (R&D)

RESEARCh & DEVELOPMENT (R&D)1 Specific areas in which R&D carried

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

& dragline dump with consideration of safety & economical design of both shovel-dumper dump & dragline dump in all 6 dragline mines of NCL by BIT, Mesra, Ranchi.

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

c. Software development to analyse & view equipment wise daily production & maintenance data of major HEMMs.

d. Award of work for benchmarking of diesel/power consumption by an independent agency such as Bureau of Energy Efficiency (BEE), Tata Energy Research Institute (TERI), CMPDI etc.

2 Benefits derived as a result of the above R&D

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

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

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

d. Benchmarking of power consumption in two mines of NCL has been completed by CMPDI & report submitted in Mar’15.

3 Further Plan of Action: Nil

4 Expenditure on R&D:(a) Capital(b) Recurring(c) Total(d) Total R&D expenditure as

percentage of total turnover

Total Expenditure Rs.14.15 Crores

TEChNOLOGy ABSORPTION, ADAPTATION AND INNOVATION:1 Efforts in brief, made towards

technology absorption, adaptation and innovation :

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

2 Benefits derived as a result of the above efforts

• Improvement in utilisation of dumpers & shovels

3 In case of imported technology (imported during the last 5 years reckoned from the beginning of the financial year) the requisite information given below: (a) Technology imported:(b) Year of Import:(c) Has technology been fully

absorbed:(d) If not fully absorbed, areas

where this has not taken place, reasons therefore and future plan and actions:

NIL

ANNUAL REPORT 2014-15 _________________________________________________________

76

ANNEXURE-III to DIRECTORS REPORTFORM NO. MR-3

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

[Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014]

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

To,

The Members,Northern Coalfields Limited,

I have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Northern Coalfields Limited(hereinafter called the company). Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing my opinion thereon.

Based on my verification of the Northern Coalfields Limited, books, papers, minute books, forms and returns filed and other records maintained by the company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of Secretarial Audit, I hereby report that in my opinion, the company has, during the audit period covering the financial year ended on 31st March, 2015 complied with the statutory provisions listed hereunder and also that the Company has proper Board processes and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

I have examined the books, papers, minute books, forms and returns filed and other records maintained by Northern Coalfields Limited for the financial year ended on 31/3/2015 according to the provisions of:

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

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

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

(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings; NOT APPLICABLE.

(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):-

(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011; NOT APPLICABLE.

(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992;


77

(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009; NOT APPLICABLE.

(d) The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999; NOT APPLICABLE.

(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations,2008; NOT APPLICABLE.

(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client; NOT APPLICABLE.

(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; and

(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998; NOT APPLICABLE

(vi) As informed by the Management other applicable Laws have been complied (Mention the other laws as may be applicable specifically to the company).

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

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

(ii) The Listing Agreements entered into by the Company with Stock Exchange(s), if applicable; NOT APPLICABLE.

During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above subject to the following observations:

One of the Director of the Company Shri Niranjan Das, Director(Technical) was ceased to be the Director of the Company with effect from 2nd October 2013 vide Ministry of Coal , Government of India Letter No. 21/3/2009-ASO dated 3rd November, 2014 and Coal India Limited order No. CIL/C5A(ii)/N.Das/D(T),NCL/B-380 dated 4th November 2014.

I further report that

The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act.

Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.

Majority decision is carried through while the dissenting members’ views are captured and recorded as part of the minutes.

I further report that there are adequate systems and processes in the company commensurate with the size and operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

ANNUAL REPORT 2014-15 _________________________________________________________

78

I further report that during the audit period the company has following events:-

For example:

(i) Public/Right/Preferential issue of shares / debentures/sweat equity, etc.- NIL

(ii) Redemption / buy-back of securities - NIL

(iii) Major decisions taken by the members in pursuance to section 180 of the Companies Act, 2013 - NIL

(iv) Merger / amalgamation / reconstruction, etc. - NIL

(v) Foreign technical collaborations - NIL

Place : SINGRAULI Signature:Date : 29th April, 2015 Name of Company Secretary in practice KRUPESh MANKODI FCS No.5773, C P No.: 4870


79

ANNEXURE-IV to DIRECTORS REPORTFORM NO. MGT 9

EXTRACT OF ANNUAL RETURNAs on financial year ended on 31-03-2015

Pursuant to section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Company (Management & Administration) Rules, 2014

I. REGISTRATION & OThER DETAILS:

1. CIN U10102MP1985GOI003160

2. Registration Date Registration No.3160 dated 20.11.1985.

3. Name of the company NORTHERN COALFIELDS LIMITED

4. Category/ Sub-category of the Company Private Company (A subsidiary Company of Coal India Limited) Compa-ny within the meaning of Section 2(87) of the Companies Act, 2013.

5. Address of the Registration office & contact details

Northern Coalfields Limited, Singrauli Colliery, PO. Singrauli, Dist. Sin-grauli (MP) 486 889

6. Whether listed company NO

7. Name, Address & contact details of the Registrar & Transfer Agent, if any

-

II. PRINCIPAL BUSINESS ACTIVITIES OF ThE COMPANy:

[All the business activities contributing 10 % or more of the total turnover of the company shall be stated]

S. No.

Name and Description of main products/ services NIC Code of the Product/service % to total turnover of the company

1. Coal Mining 051-05101 and 051-05102 100.0

III. PARTICULAR OF hOLDING, SUBSIDIARy AND ASSOCITATE COMPANIES:

S. No. Name and Address of the Company CIN/GLN Holding/Subsidiary/

Associate % of Share Held Application Section

1. Coal India Limited, 10, N S Road, Coal Bhawan, Kolkata, West Bengal-700001.

L23109WB-1973GOI028844

Holding 100.00 Sanction 2(46) of Companies Act’ 2013

ANNUAL REPORT 2014-15 _________________________________________________________

80

IV. ShARE hOLDING PATTERN (EQUITy ShARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL EQUITy):

i) Category-wise Share holding:

Category of Shareholders

No. of Shares held at the beginning of the year [as on 01-04-2014]

No. of Shares held at the end of the year [as on 31-03-2015] % change

during the yearDemat Physical Total % of Total

SharesDemat Physical Total % of Total

Shares

A. Promoter’s

(1) Indian:

a) Individual/HUF 0 3 3 0.00 0 3 3 0.00 0.00

b) Central Govt. 0 0 0 0.00 0 0 0 0.00 0.00

c) State Govt.(s) 0 0 0 0.00 0 0 0 0.00 0.00

d) Bodies Corp. 0 1776725 1776725 100.00 0 1776725 1776725 100.00 0.00

e) Banks/ FI 0 0 0 0.00 0 0 0 0.00 0.00

f) Any other 0 0 0 0.00 0 0 0 0.00 0.00

Sub-Total(A)(1): 0 1776728 1776728 100.00 0 1776728 1776728 100.00 0.00

(2) Foreign:

a)NRIs-Individuals 0 0 0 0.00 0 0 0 0.00 0.00

B) Other- Individuals 0 0 0 0.00 0 0 0 0.00 0.00

c)Bodies Corp. 0 0 0 0.00 0 0 0 0.00 0.00

d) Banks/FI. 0 0 0 0.00 0 0 0 0.00 0.00

e) Any other 0 0 0 0.00 0 0 0 0.00 0.00

Sub Total(A)(2): 0 0 0 0.00 0 0 0 0.00 0.00

Total shareholding of Promoter (A)=(A)(1)+(A)(2)

0 1776728 1776728 100.00 0 1776728 1776728 100.00 0.00

Total shareholding of Promoter(A) 0 1776728 1776728 100.00 0 1776728 1776728 100.00 0.00

B. Public Shareholding

(1) Institutions

a) Mutual Funds 0 0 0 0.00 0 0 0 0.00 0.00

b) Banks/ FI 0 0 0 0.00 0 0 0 0.00 0.00

c) Central Govt. 0 0 0 0.00 0 0 0 0.00 0.00

d) State Govt. (s) 0 0 0 0.00 0 0 0 0.00 0.00

e) Venture Capital Funds 0 0 0 0.00 0 0 0 0.00 0.00

f) Insurance Companies 0 0 0 0.00 0 0 0 0.00 0.00

g) FIIs 0 0 0 0.00 0 0 0 0.00 0.00

h) Foreign Venture Capital Funds 0 0 0 0.00 0 0 0 0.00 0.00

i) Others 0 0 0 0.00 0 0 0 0.00 0.00

Sub-total(B)(1):- 0 0 0 0.00 0 0 0 0.00 0.00

(2) Non-Institutions

a) Bodies Corporate:

i) Indian 0 0 0 0.00 0 0 0 0.00 0.00

ii) Overseas 0 0 0 0.00 0 0 0 0.00 0.00

b) Individuals:


81

i) Individual shareholders holding nomi-nal share capital in excess of Rs 1 Lakh

0 0 0 0.00 0 0 0 0.00 0.00

ii) Individual shareholders holding nomi-nal share capital in excess of Rs 1 lakh

0 0 0 0.00 0 0 0 0.00 0.00

c) Others (specify):

Non Resident Indians 0 0 0 0.00 0 0 0 0.00 0.00

Overseas Corporate Bodies 0 0 0 0.00 0 0 0 0.00 0.00

Foreign Nationals 0 0 0 0.00 0 0 0 0.00 0.00

Clearing Members 0 0 0 0.00 0 0 0 0.00 0.00

Trusts 0 0 0 0.00 0 0 0 0.00 0.00

Foreign Bodies- D R 0 0 0 0.00 0 0 0 0.00 0.00

Sub-total(B)(2):- 0 0 0 0.00 0 0 0 0.00 0.00

Total Public Shareholding (B)=(B)(1)+(B)(2)

0 0 0 0.00 0 0 0 0.00 0.00

C. Shares held by Custodian for GDRs & ADRs

0 0 0 0.00 0 0 0 0.00 0.00

Grand Total (A+B+C) 0 1776728 1776728 100.00 0 1776728 1776728 100.00 0.00

ii) Shareholding of Promoter:

S. No.

Shareholder’s Name

Shareholding at the beginning of the year[as on 01-04-2014]

Shareholding at the end of the year [as on 31-03-2015]

% change in shareholding

during the yearNo. of Shares

% of total Shares of the company

% of Shares Pledged/ encumbered to total shares

No. of Shares

% of total Shares of the com-pany

% of Shares Pledged/encum-bered to total shares

% change in shareholding during the year

1. Coal India Limited

1776728 100 1776728 100 nil

iii) Change in Promoters’ Shareholding (please specify, if there is no change):

S. No. Particular Shareholding at the beginning of the year [as on 01-04-2014]

Cumulative Shareholding during the year [2014-2015]

No. of shares % of total shares of the company

No. of shares % of total shares of the company

1. At the beginning of the year 1776728 100 1776728 1002. Datewise Increase/Decrease in Promot-

ers Shareholding during the year specify-ing the reason for increase/decrease (e.g. allotment/transfer/bonus/sweat equity etc);

No Change

3. At the end of the year 1776728 100 1776728 100

iv.) Shareholding pattern of top ten Shareholders: (Other than Directors, Promoters and holders of GDRs and ADRs):

S. No. For Each of the Top 10 Shareholders Shareholding at the beginning of the year [as on 01-04-2014]

Shareholding at the end of the Year[as on 31-03-2015]

1. - - - - -

ANNUAL REPORT 2014-15 _________________________________________________________

82

v) Shareholding of Directors and Key Managerial Personnel:

S. No. Shareholding of each Direc-

tors and each key Managerial Personnel

Shareholding at the beginning of the year [as on 01-04-2014]

Cumulative Shareholding during the year [2014-2015]

No. of Shares % of total Shares of the company

No. of Shares % of total Shares of the company

1. Shri T. K. Nag, CMD(Appointed w.e.f. 30.09.14)

At the beginning of the year 0.00 0.00 0.00 0.00

Datewise Increase/Decrease in Promoters Shareholding during the year specifying the reasons for increase/decrease (e.g. allot-ment / transfer / bonus / sweat equity etc.):

Transfer01/01/2015

At the end of the year 1 0.00 1 0.00

2. Ms. Shantilata Sahu, CMD (Addl. Charge) till 29.9.2014 Director (Perosonnel)



- - - -

At the end of the year 0.00 0.00 0.00 0.00

3. Shri A. D. Mathur, Direc-tor (Technical)(ceased on 31.01.2015)




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





83

5. Shri Gunadhar Pandey, Director (Technical)(Appointed w.e.f 01.02.15)




6. Shri Vivek Bharadwaj, Director




7. Shri B. K. Saxena, Director




8. Shri S. J. Sibal, Director




9. Shri A. K. Gupta, Director




ANNUAL REPORT 2014-15 _________________________________________________________

84

10. Shri D.h. Lalwani, Compa-ny Secretary (ceased w.e.f. 12.12.14)




11. Shri D.K. Sharma, Company Secretary (Acting) (Appointed w.e.f. 12.12.14)



At the end of the year 0.00 0.00 0.00 0.00 vi) Indebtedness

Indebtdedness of the Company including interest outstanding/accrued but not due for payment

Indebtedness at the beginning of the financial year

Secured loans excluding deposits

Unsecured Loans Deposits Total In-

debtedness

i) Principal Amount Nil Nil Nil Nil

ii) Interest due but not paid Nil Nil Nil Nil

iii) Interest accrued but not due Nil Nil Nil Nil

Total (i+ii+iii) Nil Nil Nil Nil

Change in Indebtedness during the financial year

Addition Nil Nil Nil Nil

Reduction Nil Nil Nil Nil

Net Change Nil Nil Nil Nil

Indebtedness at the end of the financial year

i) Principal Amount Nil Nil Nil Nil

ii) Interest due but not paid Nil Nil Nil Nil

iii) Interest accrued but not due. Nil Nil Nil Nil

Total (i+ii+iii) Nil Nil Nil Nil


85

vii) Remuneration Of Directors And Key Managerial Personnel:

A. Remuneration to Managing Director, Whole-Time Directors and/or Manager (in Rupees)

S.N Particular of Remuner-ation

Name of MD/WTD/Manager Total Amount

Shri. Tapas Kumar Nag, CMD, NCL (Assumed change w.e.f. 30/09/2014.)

Ms. Shantilata Sahu, Director (Personnel) Whole Year. (Held Addition-al Charge of CMD, NCL till 29/09/2014.)

Shri. Niranjan Das (Director/Technical) till 02/10/2014. Ceased to be Director (Tech.)w.e.f. 02/10/2013 vide letter no. 21/03/2007-ASO dated 3rd November 2014 issued by Shri Sanjib Bhattacharya, Under Secretary to the Govt. of India, Ministry of Coal.

Shri Akhileshwar Dayal Ma-thur, Director/Techni-cal(Oper-ations) till 31/01/2015

Shri Gunadhar Pandey, Direc-tor(Technical) (Assumed Charge w.e.f. 01/02/2015). (Remuneration paid at ECL)

Shri Arun Kumar Pandey, Director (Finance). Ceased to be Dir.(Fin.) on 31/03/2015.

1. Gross salary

(a) Salary as per provi-sion contained in section 17(1) of the Income-Tax Act, 1961

1107043 2548203 1518675 1960439 372750 2400209 9907319

(b) Value of perquisites u/s 17(2) Income-tax Act, 1961

83028 99140 59729 99867 25896 147765 515425

(c) Profit 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 - - - - - - -

Total(A) 1190071 2647343 1578404 2060306 398646 2547974 10422744

B. Remuneration to Other Directors:

S.N Particulars of Remuneration Name of Directors Total Amount (Rs.)

1. Independent Directors Shri Surinder Jit Sibal Shri Akshay Kumar Gupta

Fee for attending board committee meetings 135000 150000 285000

Commission - - -

Others, please specify 315000 240000 555000

Total (1) 450000 390000 840000

2 Other Non-Executive Directors: Shri Vivek Bharadwaj Shri Bipin Kumar Saxena

Fee for attending board committee meetings - - -

Commission - - -

Others, please specify - - -

Total (2) - - -

Total (B)= (1+2) 450000 390000 840000

ANNUAL REPORT 2014-15 _________________________________________________________

86

C. Remuneration to key Managerial Personnel Other than MD/Manager/WTD:

S.No Particular of Remuneration Key Managerial Personnel Total Amount

Shri Arun Kumar Pandey, CFO * (superannuated from service on

31/03/2015)

Shri Dayar-am Harpaldas

Lalwani (Ceased to be Company Secretary w.e.f.

afternoon of 12/12/2014)

Shri Devendra Kumar Sharma

(Assumed Charge as Company

Secretary (Actg) w.e.f. afternoon of

12/12/2014)

1. Gross salary

(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 - 1962395 173833 2136228

(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 - 127179 11537 138716

(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 - - - -

2. Stock Option - - - -

3. Sweat Option - - -

4. Commission- as % of profit others, specify… - - - -

5. Others, please specify

Total - 2089574 185370 2274944

* No additional remuneration has been paid to act at the capacity of CFO, NCL.

viii. Penalities/ Punishment/ Compounding Of Offences:Type Section of the Companies

ActBrief Description Details of penalty/

punishment/ compounding fees imposed

Authority (RD/NCLT/ COURT)

Appeal made if any (give details)

A. COMPANy

Penalty

NonePunishment

Compounding

B. DIRECTORS:

Penalty

NonePunishment

Compounding

C. OThER OFFICERS IN DEFAULT:

Penalty

NonePunishment

Compounding


87

ANNEXURE V to DIRECTORS REPORTAUDITED PERFORMANCE OF NCL AGAINST MOU 2014-15

Sl. No. Evaluation Criteria Unit Weight (in %)

MoU Target Actual 2014-15

Raw Score

Compos-ite Score

Documentary evidence &

Source/origin of documents

Excellent Very Good

Good Fair Poor

1 2 3 4 5

1 Static / Financial Pa-rameters Annual Report

& Accounts

(i) Growth/Size/Activity 20

(a) Sales Turnover (Net Sales) Rs. Crs. 10 10041.59 9882.57 9388.44 8919.02 8473.07 9452.58 2.87 0.29 Audited Annual

Accounts

(b) Gross Operating Margin Rate %age 10 35.62 34.40 34.40 31.05 29.49 31.97 3.43 0.34 Audited Annual

Accounts

(ii) Profitability 12

(a) PAT/Net Worth %age 5 24.93 23.87 22.68 21.54 20.47 36.31 1.00 0.05 Audited Annual Accounts

(b) EBITDA/Net Block %age 7 186.67 178.79 169.85 161.36 153.29 161.59 3.97 0.28 Audited Annual Accounts

(iii) Costs & Output Effi-ciency 10

(a) Sales Turnover/Net Block %age 10 427.82 421.05 400.00 380.00 361.00 375.15 4.26 0.43 Audited Annual Accounts

(iv) Liquidity/Leverage 8

(a) Average Collection Period for Trade Receivables

No. of Days

8 44.87 45.45 47.72 50.11 52.61 21.87 1.00 0.08 Audited Annual Accounts

Sub Total 50 1.464

1. Impact of Penalty imposed by Competition Commission of India for Rs. 1773.05 crores has not been considered in the Targets of 2014-15 BE since the same has been appealed against by the company in the Competition Appellate Tribunal. Impact of the above penalty, if paid in 2014-15 will be excluded and accordingly the financial parameters (P&L a/c and Balance Sheet) will be recasted at the time of evaluation of MoU 2014-15.

2. For the purpose of calculation of Average Collection Period of Trade Receivables, Gross Sales as appearing in P&L A/c in Audited Accounts (inclusive of Excise duty and all other levies & taxes) and Average Trade Receivables as appearing in the Audited Accounts (net off provision for bad & doubtful debts) have been considered.

3. Accounting head considered for Computation of Gross Operating Margin has been given in Annexure-A and the same methodology will be considered at the time of evaluation.4. Impact of MMDR bill if becomes an act and implemented, its impact will be excluded.

2 Dynamic Parameters

(i) Corporate Social Responsibility & Sustainability

3

(a) Infrastructure Devel-opment in Villages of Backward Districts.

No. of works

1 5 4 3 2 1 5 1 0.0100 CSR Re-cords

(b) Skill Development Programme for Villagers/PAPs/ Economically Weaker Section of Society/Women through External Agencies

Nos. of per-sons

1 300 250 200 150 100 471 1 0.0100 -do-

(c) Construction of Rain Water Harvesting Facilities

No. of works

1 5 4 3 2 1 5 1 0.0100 -do-

Annexure - II

ANNUAL REPORT 2014-15 _________________________________________________________

88

(ii) Research & Development 2

(a) A site specific study on distance between toe of Shovel-Dumper Dump & Dragline Dump with consideration of Safety & Economical Design of both Shovel-Dumper Dump & Dragline Dump in all 6 Dragline Mines of NCL by BIT, Mesra, Ranchi. (3-year Project). Activity during 2014-15 : Completion of Study & Submission of Draft Report.

Date

1 15 Feb’15 15 Mar’15

31 Mar’15

- - 12 Feb ‘15

1 0.0100 Study Report

(b) Development of in-line cylinder block boring machine for Engines at CWS, Jayant

0.25 Feb’15 Mar’15 - - - 15 Feb ‘15


(c) Software Development to analyse & view equipmentwise daily pro-duction & maintenance data of Major HEMMs

0.25 Jan’15 Feb’15 Mar’15 - - 8 July ‘14


(d) Award of Work for Benchmarking of Diesel/Power Consumption by an Independent Agency such as Bureau of Energy Efficiency (BEE), Tata Energy Research Institute (TERI), CMPDI etc.

Date

0.5 Dec’14 Jan’15 Feb’15 15 Mar’15

31 Mar’15

10 Sept ‘14


(iii) Initiatives for Growth 5.5

(a) Approval of EPR for JAYANT OCP (10 to 20 MTPA)

Date

1 14 Feb’15 28 Feb’15

15 Mar’15

31 Mar’15 - 20 Jan ‘15

1 0.0100 CMPDIL Report

(b) Preparation of Master Plan for Singrauli Coalfields

1 14 Feb’15 28 Feb’15

15 Mar’15

31 Mar’15 - 20 Jan ‘15

1 0.0100 CMPDIL Report

(c) Preparation of EPR for Block-B OCP (3.5 to 6.0 MTPA)

0.5 Dec’14 Jan’15 Feb’15 Mar’15 - Dec ‘14 1 0.0050 CMPDIL Report

(d) Notification u/s 9 of CBA Act 1957 for Acquisi-tion of 180 Ha land for Bina-Kakri Amalgamation Project (10 MTPA)

1 14 Feb’15 28 Feb’15

15 Mar’15

31 Mar’15 - 17 Dec ‘14

1 0.0100 Gazette Notification

(e) Possession of Tenancy Land for Block-B OCP Ha. 1 15 10 5 - - 17.926

Ha1 0.0100 Self Decla-

ration

(f) Risk Management 1

1 Operationalization of Risk Management through an Independent Head [GM(Safety)] Reporting to CMD & Board of Directors through D(F)

Date

0.5 14 Feb’15 28 Feb’15

15 Mar’15

31 Mar’15 - 20 Jan ‘15


2 Development of Risk Indicators under Risk Management

0.5 14 Feb’15 28 Feb’15

15 Mar’15

31 Mar’15 - 12 Feb ‘15



89

(iv) Project Management & Implementation 4.5

(a) Milestones 2.5

1 40% Construction of 4 MTPA CHP at Krishnash-ila (LOA issued on 28.09.2011 & Site handed over for Construction on 24.12.2011)

0.25 15 Jan’15 31 Jan’15

15 Feb’15

28 Feb’15 31 Mar’15

Dec ‘14 1 0.0025 E&M Report

2 Tendering for Construc-tion of 5 MTPA Incremen-tal CHP at Nigahi (First Tendering was done in Sept’13 but Tender was cancelled due to Techni-cal Reasons)

Date

0.25 15 Jan’15 31 Jan’15

15 Feb’15

28 Feb’15 31 Mar’15

Nov ‘14 1 0.0025 E&M Report

3 Tendering for Construc-tion of 6 MTPA Incremen-tal CHP at Khadia (First Tendering was done in Sept’13 but Tender was cancelled due to Techni-cal Reasons)

0.25 15 Jan’15 31 Jan’15

15 Feb’15

28 Feb’15 31 Mar’15


4 50% Construction of 3.5 MTPA CHP at Block-B (LOA issued on 21.08.2013 & Site handed over for Construction on 03.10.2013)

0.25 15 Dec’14 31 Dec’14

15 Jan’15

31 Jan’15 28 Feb’15


5 Supply & Commissioning of 10 no. 100T Dumpers in NCL (Tendering was done in Jan’13 & Supply Order placed in Aug’13)

0.25 Sep’14 Oct’14 Nov’14 Dec’14 Jan’15 Aug ‘14 1 0.0025 Excavation Deptt. Report

6 Award of Work for Supply & Commissioning of 05 nos. 410 HP Dozers in NCL (Tender Floated, date of opening of Part-I of Tender is 28.03.2014)

0.25 15 Mar’15 31 Mar’15

- - - Dec ‘14 1 0.0025 Excavation Deptt. Report

7 Tendering & Award of Work for Supply & Commissioning of 02 nos. 2.8 cum Hydraulic Backhoe Shovels in NCL (Part-I of Tender opened on 10.12.2012, TCR under Cancellation, Fresh Tendering to be done)

0.25 15 Mar’15 31 Mar’15

- - - 05 Mar ‘15

1 0.0025 Excavation Deptt. Report

ANNUAL REPORT 2014-15 _________________________________________________________

90

8 NIT, Tendering & Award of Work for Supply & Commissioning of 02 nos. 280 HP Graders in NCL (Pre-NIT Meeting Sched-uled on 28.03.2014)

0.25 15 Mar’15 31 Mar’15

- - - NIT & Ten-

dering done. Award due.


9 Supply & Commissioning of 02 nos. 60 KL Water Tanker in NCL (Tender Floated, Date of Opening of Part-I of Tender is 24.03.2014)

0.25 Feb’15 Mar’15 - - - 26 Feb ‘15


10 Tendering & Award of Work for Supply & Commissioning of 02 nos. 8 T/10 T Cranes in NCL (Part-I of Tender opened on 10.09.2013, Case under delibration by TC for Price Bid Opening)

0.25 15 Mar’15 31 Mar’15

- - - 10 Feb ‘15


(b) CAPEX Rs.Crs. 1 600 575 375 175 100 715 1 0.0100 Audited Annu-al Accounts

(c) Incremental Production from On-going Projects MT 1 1.0 0.8 0.6 0.4 0.2 2.7 1.0 0.0100 CP Deptt.

Report

(v) Productivity & Internal Processes 4

(a) System Capacity Utilisation %age 1 70 68 66 64 62 69.58 1.21 0.0121 IED Report

(b) Customer Satisfaction 3

1 Joint Agreed 3rd. Party Sampling at Despatch end for Supply of ACQ to Power Utilities under FSA complying Govt. Directives

%age

0.5 99 98 97 96 95 100 1 0.0050 S&M Deptt. Report

2 Sized Coal Despatch to Power Sector by Rail

1 99 98 97 96 95 100 1 0.0100 S&M Deptt. Report

3 Weighment on Electronic Weighbridge before Des-patch to Power Sector by Rail

1 99 98 97 96 95 100 1 0.0100 E&M Deptt. Report

4 Commitment to Supply Annual Contract Quan-tity (ACQ) under FSA to Power Utilities complying directives of Govt.

MT

0.5 64 63 62 61 60 65 1 0.0050 S&M Deptt. Report


91

(vi) Technology, Quality, Innovative Practices 5

(a) NEW TECHNOLOGY : Preparation of NIT, Ten-dering & Award of Work for Introduction of Coal Net Phase-I (Finance, Payroll & PIS Modules at HQ)

Date

1 15 Mar’15 31 Mar’15

- - - Award of work not

done

5 0.0500 System Deptt. Report

(b) ISO : Training Pro-grammes on IMS (ISO 9001, ISO 14001, ISO 18001 & SA 8000)

Nos.

1 2 1 - - - 2 1 0.0100 IMS Deptt. Report

(c) Installation of CCTV in all Road Weighbridges & Other important Locations in Mines

Date

1 Dec’14 Jan’15 Feb’15 Mar’15 - Dec ‘14 1 0.0100 E&T Deptt. Report

(d) Introduction of GPS based Truck Monitoring System in NCL

Date1 Dec’14 Jan’15 Feb’15 Mar’15 - July ‘14 1 0.0100 E&T Deptt.

Report

(e) SAFETY : Training of Dumper Operators on Simulator

Nos.1 200 150 100 50 - 356 1 0.0100 CETI Report

(vii) human Resource Man-agement (hRM) 6

(a) Certified Training in Project Management

Nos. of

Execu-tives

0.25 60 50 40 30 20 60 1 0.0025 HRD Report

(b) Training on Civil/Pur-chase/Services Contract Management

0.25 60 50 40 30 20 67 1 0.0025 HRD Report

(c) Training in Environment Management/Forest Management/ Land Acquisition

0.25 20 15 10 5 - 31 1 0.0025 HRD Report

(d) Risk Management Training

0.25 30 25 20 15 10 32 1 0.0025 HRD Report

(e) human Resource Man-agement (hRM) 5 As per Enclosure 01

1.315 0.0657

3 Sector Specific /Enter-prise Specific Parameters 20

(i) Coal Production MT 9 77.50 77.00 73.15 69.49 66.02 72.48 3.18 0.2864 Audited Annu-al Accounts

(ii) Offtake MT 9 78.50 78.00 74.10 70.40 66.88 73.69 3.11 0.2799 Audited Annu-al Accounts

(iii) AFFORESTATION : Tree Plantation

Lakh Trees

1 2.00 1.80 1.60 1.40 1.20 5.09 1.00 0.0100 Forest Deptt. Report

(iv) Output per Manshift (O.M.S.)# Tes. 1 13.75 13.50 13.25 13.00 12.75 13.76 1.00 0.0100 Audited Annu-

al Accounts Sub Total 50 0.9541 Grand Total 100 2.4182

# Note1- Calculation of Output per Manshift (OMS) is based on Specific Gravity of Coal and Average Stripping Ratio of mines as per Project Reports (PRs) dt. 6th Oct. 2010 both for Target and Actual purpose. The ASR taken for OMS calculations are in variation with ASR taken for calculation of OBR Adjustment in respect of some mines.Note-2: Non compliance of Corporate Governance will be penalized by way by negative marking and as specified in DPE’s OM No.3/19/2013-DPE(MoU) dt.11th Nov.2013Note-3 Certificate regarding implementation of guidelines issued by DPE as per OM No.DPE/14(38)/1-=Fin dated 28th June 2011 is required from Auditors.Non compliance of DPE’s guidelines determined on the basis of certificate will be panlised upto 1 mark (score may increased by 0.04) which is at the discretion of task force at the time of evaluation.Note-4: for achieving offtake target, average 26.3 rakes/ day availability is to be ensured from Indian Railways.

Overall Grade Very Good

ANNUAL REPORT 2014-15 _________________________________________________________

92

ENCLOSURE -1

HRM PERFORMANCE EVALUATION UNDER MOU : 2014-15

Sl. No. HRM-PERFORMANCE INDICATORS Unit Weight

(in %)

MoU TargetActual Perfor-mance

Self Evalua-tion Raw

Score

Compsite Score

Excel-lent

Very Good

Good Fair Poor

1 2 3 4 5

A. Competency & Leadership Development

1(a) %age actualisation of Training Plan %age fullfilment

10 90 80 70 60 50 100.30 1 0.1000

1(b) Training Days per employee per year days/employee

10 2.5 2.0 1.5 1.0 0.5 2.72 1 0.1000

2. Training Expenses as %age of employee cost %age of employee

cost

10 0.25 0.20 0.15 0.10 0.050 0.25 1 0.1000

3. %age fulfillment of Training Plan for Multi-Skilling / Skill upgradation of Non-Executives

%age fulfillment

10 90 80 70 60 50 79.30 2.07 0.2070

B. Performance Management

5. Presence of Balance Score Card based Performance Management System for Executives

Yes / No 10 Yes — — — No Yes 1 0.1000

C. Recruitment, Retention & Talent Management

6. Manpower Rationalisation through Redeployment (Redeployment %age)

%age of manpower

5 0.20 0.15 0.10 0.05 — 0.576 1 0.0500

7. Attrition as ^age of total employees %age 5 1.00 0.99 0.98 0.97 0.96 0.103 1 0.0500

8. Presence of Mentorship Programme Yes / No 5 Yes — — — No Yes 1 0.0500

9. Formulation/Implementation of systems for management of Talents, growth opportunities etc.

(a) Training on Managerial Effectiveness Nos. of Executives

5 20 15 10 5 — 42 1 0.0500

(b) Training on Leadership Competencies Nos. of Executives

5 20 15 10 5 — 40 1 0.0500

D. Enabling Creativity & Innovation

10. Nos. of Nominations/entries submitted for National Awards for Individuals

No. of Persons

5 1 — — — — 0 5 0.2500

E. Employee Relations & Welfare

11. Effectiveness of Grievance Redressal System - %age of grievances settled vis-a-vis received during the year

%age Settlement

5 70 60 50 40 30 68.42 1.158 0.0579

12. Organising Sports Events/Cultural Programmes for Employees, Schools & nearby Villagers

Nos. of Events

5 20 15 10 5 — 26 1 0.0500

13. Presence of Group Gratuity Scheme Yes / No 5 Yes — — — No Yes 1 0.0500

14. Number of structured meetings with employees’ representatives

No. ofMeetings

5 6 5 4 3 2 6 1 0.0500

Grand Total 100 1.3149

NB : Total score out of 100 awarded on hRM to CPSE will be converted into score out of 5 in MoU on pro-rata basis.


93

PRAKASh & SANTOShCHARTERED ACCOUNTANTS

To,

The Board of Directors,Northern Coalfields Limited,Singrauli.

Dear Sir,

Sub: Audit of performance against MOU 2014-2015

With reference to your letter regarding our appointment for audit of performance against MOU 2014-2015, we report that:-

1. The achievement stated in attached Performance Evaluation Sheet with respect to Static/ Financial, Dynamic/Non Financial, Sector Specific/Enterprise Specific Parameters are calculated in terms of guidelines for MOU for the year 2014-15 issued by Department of Public Enterprises, Ministry of Heavy Industries and Public Enterprises vide office memorandum No.3/19/2013-DPE( MOU) dated 11-11-2013.

2. The achievement stated against Static/ Financial, Dynamic/Non financial, Sector Specific/ Enterprise Specific Parameters are rectified from means of verification stated in respective parameters and found correct to the best of our knowledge.

3. Guidelines issued by DPE on Corporate Governance are complied with by the Company.

4. As informed to us that guidelines issued by DPE are implemented by the Company.

For Prakash & Santosh Chartered Accountants (Firm Reg. No. 000454C) Sd/- (CA Vikas Deep) Partner M. No.: 077343Dated.30 May, 2015Place: Singrauli

Head Office : ‘Rolland Complex’ Flat No. 8, Upper Floor, Westcott Building, 37/17, The Mall, Kanpur – 208 001 Phones: 3012035, 3912995 Email: pra [email protected]; [email protected] : MORADABAD, ORAI, SAMBHAL, DELHI

ANNUAL REPORT 2014-15 _________________________________________________________

94

PRAKASh & SANTOShCHARTERED ACCOUNTANTS

To,

The Members,M/s Northern Coalfields LimitedSingrauli

CERTIFICATE

1. We have reviewed the compliance of conditions of Corporate Governance by Northern Coalfields Limited for the year ended 31st March, 2015 although Clause 49 of the Listing Agreement is not applicable to the Company.

2. The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statement of the Company.

3. We have conducted our review on the basis of the relevant records and documents maintained and produced to us for review and the information and explanation given to us by the Company.

4. In our opinion and to best of our information and according to the explanations given to us and the representations made by the Directors and the Management, we certify that the Company has complied with the conditions of Corporate Governance except the following condition:-

The Company has not complied with the condition of 50% independent Directors in the Board during the period under consideration.

5. We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiently or effectiveness with which the Management has conducted the affairs of the Company.

For PRAKASH & SANTOSHChartered Accountants

Sd/-(CA SANTOSh GUPTA)

PartnerMembership No. 016304

ICAI Firm Reg. No. 00454C

Place : SingrauliDate : 29th April, 2015

Head Office : ‘Rolland Complex’ Flat No. 8, Upper Floor, Westcott Building, 37/17, The Mall, Kanpur – 208 001 Phones: 2303565, 3912995, Fax: 0512-3012035, Email: [email protected] : MORADABAD, ORAI, SAMBHAL, DELHI


95

BALANCE SHEET AS AT 31ST MARCH, 2015(Rs. in crore)

As at As at Note 31-03-2015 31-03-2014 ————— ——————— ———————I EQUITY AND LIABILITIES (1) Shareholders’ Fund (a) Share Capital 1 177.67 177.67 (b) Reserves & Surplus 2 5,699.69 9,076.42 ————— 5,877.36 ————— 9,254.09 (2) Non-Current Liabilities (a) Long Term Borrowing 3 — — (b) Deferred Tax Liabilities (Net) — — (c) Other Long Term Liabilities 4 141.71 132.00 (d) Long Term Provisions 5 6,233.49 5,086.04 ————— 6,375.20 ————— 5,218.04 (3) Current Liabilities (a) Short Term Borrowing 6 — — (b) Trade Payables 7 117.06 90.23 (c) Other Current Liabilities 8 2,532.26 2,088.96 (d) Short Term Provisions 9 318.61 281.32 ————— 2,967.93 ————— 2,460.51 ————— ————— Total 15,220.49 16,932.64 ————— —————II ASSETS (1) Non-Current Assets (a) Fixed Assets (i) Tangible Assets - Gross Block 10A 7,090.76 6,634.70 Less : Depreciation, Impairment & Provisi ns 4,643.09 4,418.30 Net carrying Value ————— 2,447.67 ————— 2,216.40

(ii) Intangible Assets - Gross Block 10A 142.80 143.88 Less : Depreciation, Impairment & Provisions 70.76 62.95 Net carrying Value ————— 72.04 ————— 80.93 (iii) Capital Work-in-Progress 10B 610.96 544.33 (iv) Intangible Assets under Development 10C 113.22 89.86 (b) Non-Current Investment 11 — 11.45 (c) Deferred Tax Assets (Net)* 413.47 342.01 (d ) Long Term Loans & Advances 12 106.35 74.82 (e) Other Non-Current Assets 13 6.22 3.15

(2) Current Assets (a) Current Investments 14 61.62 11.46 (b) Inventories 15 835.91 893.19 (c ) Trade Receivables 16 621.14 955.94 (d) Cash & Bank balance 17 7,265.10 7,443.79 (e) Short Term Loans & Advances 18 138.65 113.90 (f) Other Current Assets 19 2,528.14 4,151.41 ————— 11,450.56 ————— 13,569.69 ————— ————— Total 15,220.49 16,932.64 ————— ————— SignificantAccountingPolicies 33 Additional Notes on Accounts 34 The Notes reffered to above form an integral part of Balance Sheet *Refer Note - 34 (2) (iv). Sd/- Sd/- Sd/- Sd/- (D.K.Sharma) (P.J. Mohan Rao) (P.S.R.K.Sastry) (T.K.Nag) Company Secratary General Manager (Finance) Director (Finance) & C.F.O. Chairman-Cum Managing Director DIN- 07163164 DIN - 02219348 In terms of our separate report of even date For Prakash & Santosh Chartered Accountants Firm Regn. No. 000454C Sd/- (CA. Santosh Gupta) Dated : 25.05.2015 Partner Place : Varanasi M. No.- 016304

ANNUAL REPORT 2014-15 _________________________________________________________

96

STATEMENT OF PROFIT & LOSSFor the Year ended 31st March, 2015

(Rs. Crores)INCOME For the Year For the Year Note ended 31.03.2015 ended 31.03.2014 ———— ————————— —————————

A. Sale of Coal, coke etc. 20 13,161.25 12,400.42 Less: Excise Duty (657.22) (649.45) Other Levies (3,051.45) (2,447.09) ————— —————Net Sales 9,452.58 9,303.88 B. Other Operating Revenue 20 203.01 194.46 ————— —————Revenue from Operations (A+B) 9,655.59 9,498.34 Other Income 21 1,112.53 1,011.42 ————— —————Total Revenue 10,768.12 10,509.76 ————— —————EXPENSES Cost of Material Consumed 22 1,578.70 1,590.52 ChangeininventoriesoffinishedgoodsworkinprogressandStockintrade 23 105.10 144.68Employeebenefitexpenses 24 1,800.47 1,711.24Power & Fuel 249.61 241.28Corporate Social Responsibility Expenses 25 61.77 39.72Repairs 26 217.51 192.69 Contractual Expenses 27 1,211.31 1,040.33 Finance Costs 28 0.26 15.45 Depreciation/amortization/Impairment 10A 382.34 360.69 Provisions 29 168.16 774.34 Write off 30 - - Overburden Removal Adjustment 977.03 761.16 Other Expenditure 31 326.86 270.11 ————— —————Total Expenses 7,079.12 7,142.21 ————— —————Profit before prior period, exceptional and extraordinary items and tax 3,689.00 3,367.55 ————— —————Prior Period Adjustment { charges/ (Incomes) } 32 (24.47) 11.84Exceptional Items - - ————— —————Profit before extraordinary items and tax 3,713.47 3,355.71 ————— —————Extraordinary Items { charges/ (Incomes) } - - ————— —————Profit before Tax 3,713.47 3,355.71 ————— —————Less : Tax Expenses - Current year 1,646.00 1,649.70 - Deffered Tax (71.46) (304.44) - Earlier years 4.76 2.43 ————— —————Profit after Tax 2,134.17 2,008.02 ————— ————— Earnings per Equity share (in Rs. ) (Face Value of Rs. 1000/- per share) - Basic 12,011.80 11,301.79 - Diluted 12,011.80 11,301.79 SignificantAccountingPolicies 33 Additional Notes on Accounts 34 TheNotesreferredtoabove,formanintegralpartofTheStatementofProfit&LossAccount. Sd/- Sd/- Sd/- Sd/- (D.K.Sharma) (P.J. Mohan Rao) (P.S.R.K.Sastry) (T.K.Nag) Company Secratary General Manager (Finance) Director (Finance) & C.F.O. Chairman-Cum Managing Director DIN- 07163164 DIN - 02219348 In terms of our separate report of even date For Prakash & Santosh Chartered Accountants Firm Regn. No. 000454C Sd/- (CA. Santosh Gupta) Dated : 25.05.2015 Partner Place : Varanasi M. No.- 016304


97

Cash Flow Statement (Indirect Method)(Rs. in Crores)

For the year ended March 31, —————————————————— 2015 2014 ———— ————I. CASH FLOW FROM OPERATING ACTIVITIES Net Profit before taxation and extraordinary item 3,713.47 3,355.71 Adjustments for : Depreciation on Fixed Assets 372.05 360.69 Interest /Dividend Income (1,038.41) (952.03) Loss/ProfitonsaleofF/Assets (0.80) 2.12 Provisions and Write-off 194.12 774.34 Overburden Removal Expenditure Adjustment 977.03 761.16 AdjustmentforForeignExchangeflactuation - 9.27 Interest & Financial Expenses 0.26 15.45 ————— ————— Operating Profit before Working Capital Changes 4,217.72 4,326.71 ————— ————— Adjustment for : Receivables 280.67 131.66 Inventories 54.30 104.95 Current and Non Current Assets (Other than Fixed Assets) 1,682.00 (1,203.96) Current & Non-Current Liabilities 546.48 583.77 ————— ————— Cash Generated from Operations 6,781.17 3,943.13 ————— ————— Income taxes Paid : Income tax Paid (1,635.98) (1,700.63) Refund / Paid/ Adj. of Corporate tax of Earlier Years (190.00) 0.10 ————— ————— Net Cash Flow from Operating Activities (A) 4,955.19 2,242.60 ————— ————— II. CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets (715.06) (301.76) Proceeds From Sale of Equipments 7.72 4.85 Redeemption of Power Bonds 11.45 11.46 Interest pertaining to Investing Activities 1,088.95 955.35 Bank Deposit/Investment in Mutual Funds 218.34 448.93 ————— ————— Net Cash used in Investing Activities (B) 611.40 1,118.83 ————— —————III. CASH FLOW FROM FINANCING ACTIVITIES Repayment/ Increase of Unsecured Loans - (677.91) Interest pertaining to Financing Activities (0.26) (15.45) Dividend Paid (Including tax on Dividend ) (5,476.52) (3,208.12) ————— ————— Net Cash used in Financing Activities (C ) (5,476.78) (3,901.48) ————— ————— Net Increase in Cash and Cash Equivalents (A)+(B)+(C) 89.81 (540.05) Cash and Cash Equivalents (Opening Balance) 20.40 560.45 Cash and Cash Equivalents (Closing balance) 110.21 20.40 Component of Cash and Cash Equivalent: Cash and Cheque in hand 0.02 0.02 Balance with Scheduled Banks: Current Account 110.19 20.38 Term Deposits - - ————— ————— Cash and Cash Equivalents (Closing balance) 110.21 20.40 ————— ————— Sd/- Sd/- Sd/- Sd/- (D.K.Sharma) (P.J. Mohan Rao) (P.S.R.K.Sastry) (T.K.Nag) Company Secratary General Manager (Finance) Director (Finance) & C.F.O. Chairman-Cum Managing Director DIN- 07163164 DIN - 02219348 As per our report annexed For Prakash & Santosh Chartered Accountants Firm Regn. No. 000454C Sd/- (CA. Santosh Gupta) Dated : 25.05.2015 Partner Place : Varanasi M. No.- 016304

ANNUAL REPORT 2014-15 _________________________________________________________

98

Statement of Standalone Audited/Unaudited Results For The Period Ended 31st March, 2015

Part-I (Rs. in Crores)

Particulars

3 months ended

(31/03/2015)

Preceding 3 months

ended (31/12/2014)

Corresponding 3 months end-ed (31/03/2014)

Year to date for the

period ended (31/03/2015)

Year to date for the pe-riod ended

(31/03/2014) Audited Unaudited Audited Audited Audited

1. Income from Operations (a) Net Sales / Income fron Operations

(Net of Excise Duty) 2,731.74 2,380.72 2,635.41 9,452.58 9,303.88

(b) Other operating income 59.03 48.07 62.96 203.01 194.46Total Income from Operations (Net) 2,790.77 2,428.79 2,698.37 9,655.59 9,498.34

2. Expenses (a) Cost of material consumed 452.70 381.84 512.42 1,578.70 1,590.52(b) Purchase of Stock-in-trade – – – – –(c ) Change in inventories of Finished goods,

work-in-progress & stock-in-trade (260.90) (14.52) (37.66) 105.10 144.68

(d) EmployeesBenefitsExpenses 490.57 471.34 466.13 1,800.47 1,711.24(e) Depriciation & amortisation expenses 102.89 109.69 85.92 382.34 360.69(f) Power & Fuel 67.18 63.18 62.31 249.61 241.28(g) C S R Expenses 34.49 6.42 18.43 61.77 39.72(h) Repairs 66.64 54.18 52.57 217.51 192.69(i) Contractual Expenses 464.40 308.10 287.95 1,211.31 1,040.33(j) Overburden removal adjustment 327.24 271.68 433.71 977.03 761.16(f) Other Expenses 196.08 123.28 779.04 495.02 1,044.45

Total Expenses 1,941.29 1,775.19 2,660.82 7,078.86 7,126.763. Profit/ (Loss) from operations before other

income, Finance Costs and Exceptional items (1-2)

849.48 653.60 37.55 2,576.73 2,371.58

4. Other income 250.73 289.21 229.93 1,112.53 1,011.425. Profit/ (Loss) from Ordinary activities before

Finance cost & Exceptional items (3+4) 1,100.21 942.81 267.48 3,689.26 3,383.00

6. Finance Cost 0.08 0.05 0.88 0.26 15.457. Profit/ (Loss) from Ordinary activities after

Finance cost but before Exceptional items (5-6)

1,100.13 942.76 266.60 3,689.00 3,367.55

8. Exceptional Items (Prior period Adjustment) 20.55 (1.18) (8.51) 24.47 (11.84)9. Profit/ Loss from Ordinary Activities

before tax (7+8)1,120.68 941.58 258.09 3,713.47 3,355.71

10. Tax Expense 503.79 407.29 233.06 1,579.30 1,347.6911. Net Profit/ Loss from Ordinary Activities

after tax (9-10)616.89 534.29 25.03 2,134.17 2,008.02

12. Extraordinary Items (net of tax expenses) - - - - - 13. Net Profit/ (Loss) for the Period (11-12) 616.89 534.29 25.03 2,134.17 2,008.0214. Paid-up Equity Share capital

(Face Value of Rs. 1000)177.67 177.67 177.67 177.67 177.67

15. Reserve excluding revaluation reserves as per balance sheet of previous accounting year

- - - - -

16. i Earnings per Share (before extraordinary items)

a) Basic 3,472.06 3,007.16 140.88 12,011.80 11,301.79b) Diluted 3,472.06 3,007.16 140.88 12,011.80 11,301.79

16. ii Earnings per Share (after extraordinary items)

a) Basic 3,472.06 3,007.16 140.88 12,011.80 11,301.79b) Diluted 3,472.06 3,007.16 140.88 12,011.80 11,301.79


99

Select Information For The Period Ended 31.03.2015

Part-II (Rs. in Crores)

Particulars

3 months ended

(31/03/2015)

Preceding 3 months

ended (31/12/2014)

Corresponding 3 months end-ed (31/03/2014)

Year to date for the

period ended (31/03/2015)

Year to date for the pe-riod ended

(31/03/2014) Audited Unaudited Audited Audited Audited

A. Particulars of Shareholding1. Public Shareholding

– Number of Shares NIL NIL NIL NIL NIL– Percentage of shareholding

2. Promoters and promoter group Shareholding**

a) Pledged/Enucumbered– No. of Shares NIL NIL NIL NIL NIL– Percentage of Shareholding (as a % of the total shareholding of promoter and promoter group)– Percentage of shares (as a % of the total share capital of the company)

b) Non-Encumbered- No. of Shares 1776728 1776728 1776728 1776728 1776728- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group)

100% 100% 100% 100% 100%

- Percentage of shares (as a % of the total share capital of the company)

100% 100% 100% 100% 100%

Sd/- Sd/- Sd/- Sd/- (D.K.Sharma) (P.J. Mohan Rao) (P.S.R.K.Sastry) (T.K.Nag) Company Secratary General Manager (Finance) Director (Finance) & C.F.O. Chairman-Cum Managing Director DIN- 07163164 DIN - 02219348 In terms of our separate report of even date For Prakash & Santosh Chartered Accountants Firm Regn. No. 000454C Sd/- (CA. Santosh Gupta) Dated : 25.05.2015 Partner Place : Varanasi M. No.- 016304

ANNUAL REPORT 2014-15 _________________________________________________________

100

Annexure-IX of Clause 41 of the Listing AgreementStandalone/ Consolidates Statement of Assets & Liabilities

(Rs. in Crores) Particulars As at 31/03/2015 As at 31/03/2014 A EQUITY AND LIABILITIES (1) Shareholders’ Fund (a) Share Capital 177.67 177.67 (b) Reserves & Surplus 5,699.69 9,076.42 ————— ————— Sub-total Shareholder’s Fund 5,877.36 9,254.09 ————— ————— (2) Non-Current Liabilities (a) Long Term Borrowing - - (b) Deferred Tax Liabilities (Net) - - (c) Other Long Term Liabilities 141.71 132.00 (d) Long Term Provisions 6,233.49 5,086.04 ————— ————— Sub-total Non-current Liabilities 6,375.20 5,218.04 ————— ————— (3) Current Liabilities (a) Short Term Borrowing - - (b) Trade Payables 117.06 90.23 (c) Other Current Liabilities 2,532.26 2,088.96 (d) Short Term Provisions 318.61 281.32 ————— ————— Sub-total Current Liabilities 2,967.93 2,460.51 ————— ————— Total Equity & Liabilities 15,220.49 16,932.64 ————— ————— B ASSETS (1) Non-Current Assets (a) Fixed Assets 3,243.89 2,931.52 (b) Non-Current Investment - 11.45 (c) Deferred Tax Assets (Net) 413.47 342.01 (d ) Long Term Loans & Advances 106.35 74.82 (e) Other Non-Current Assets 6.22 3.15 ————— ————— Sub-Total Non-Current Assets 3,769.94 3,362.95 ————— ————— (2) Current Assets (a) Current Investments 61.62 11.46 (b) Inventories 835.91 893.19 (c ) Trade Receivables 621.14 955.94 (d) Cash & Bank balance 7,265.10 7,443.79 (e) Short Term Loans & Advances 138.65 113.90 (f) Other Current Assets 2,528.14 4,151.41 ————— ————— Sub-total Current Assets 11,450.56 13,569.69 ————— ————— Total Asets 15,220.49 16,932.64 ————— —————


101

NOTES TO BALANCE SHEET Note - 1

SHARE CAPITAL

(Rs. in Crores) As at As at 31-03-2015 31-03-2014 —————— —————— AUTHORISED (i) 40,00,000 Cumulative 10% Redeemable Preference shares of Rs. 1000/- each 400.00 400.00 (ii) 100,00,000 Equity Shares of Rs.1000/- each 1,000.00 1,000.00 ————— ————— 1,400.00 1,400.00 ————— —————

ISSUED, SUBSCRIBED AND PAID-UP 17,76,728 Equity shares of Rs. 1000/- each fully paid-up 177.67 177.67 ————— ————— 177.67 177.67 ————— —————

Note 1: Shares in the company held by each shareholder holding more than 5% Shares

Name of Shareholder No. of Shares Held ( Face value of Rs. 1000 each)

% of Total Shares

COAL INDIA LIMITED, The Holding Company and its Nominees 1776728 100%

Note 2 : During the year there is no change in the number of shares.

ANNUAL REPORT 2014-15 _________________________________________________________

102


RESERVES & SURPLUS(Rs. in Crores)

As at As at 31-03-2015 31-03-2014 ——————— ———————RESERVES : Capital Reserve As per last Balance Sheet - - Add: Addition during the year - - Less: Adjustment During the year - - ————— ————— - - ————— ————— Capital Redemption Reserve As per last Balance Sheet 400.00 400.00 Add: Addition during the year - - Less: Adjustment During the year - - ————— ————— 400.00 400.00 ————— ————— Corporate Social Responsibility Reserve As per last Balance Sheet 106.27 107.57 Add: Addition during the year - 38.42 Less: Transfer to General Reserve 106.27 39.72 ————— ————— - 106.27 ————— ————— Sustainable Development Reserve As per last Balance Sheet 5.90 3.17 Add: Addition during the year - 3.08 Less: Transfer to General Reserve 5.90 0.35 ————— ————— - 5.90 ————— ————— General Reserve As per last Balance Sheet 2,698.36 2,457.49 Add:TransferfromProfit&LossAccount 213.42 200.80Add: Adjustment during the year 112.17 40.07 ————— ————— 3,023.95 2,698.36 ————— ————— Surplus in Profit & Loss Account As per last Balance Sheet 5,865.89 6,600.17Less : Depreciation Adjustment as per Companies Act, 2013 34.38 - ————— ————— 5,831.51 6,600.17Add:ProfitafterTaxduringtheperiod/year 2,134.17 2,008.02 ————— ————— Profit&LossAvailableforappropriation 7,965.68 8,608.19Appropriations:- Transfer to General Reserve (213.42) (200.80)Transfer to CSR Reserve - (38.42)Transfer to Sustainable Development Reserve - (3.08) Interim Dividend (4,563.99) (2,136.84)Proposed Dividend on Equity Shares - -Corporate Dividend Tax (912.53) (363.16) ————— ————— 2,275.74 5,865.89 ————— ————— Miscellaneous Expenditure (To the extent not written off) Preliminary expenses - - Pre-Operational Expenses - - ————— ————— - - ————— ————— Total 5,699.69 9,076.42 ————— —————

Company has adopted the CSR Policy for the Financial Year 2014-15, as per the provisions of the Companies Act 2013. Sustainable Development Activities have been merged with CSR Activities, Balance amount of CSR Reserve and Sustainable Development Reserve as on 01.04.2014 have been transfereed to General Reserve, as these are no longer required to be maintained.


103


LONG TERM BORROWING(Rs. Crores)

As at As at 31-03-2015 31-03-2014 ——————— ———————Term Loan - - Loan From Coal India Limited - - ————— —————TOTAL - - ————— —————

CLASSIFICATION 1

Secured - -

Unsecured - -

CLASSIFICATION 2

Loan Guaranteed by Directors & others

Particulars of Loan Nature of Guarantee As At 31.03.2015

As At 31.03.2014

- - - -

ANNUAL REPORT 2014-15 _________________________________________________________

104


OTHER LONG TERM LIABILITIES(Rs. in Crores)

As at As at 31-03-2015 31-03-2014 ——————— ——————— Trade Payable - Deferred Credits - - Earnest Money/ Security Deposit 141.71 132.00 Others - - ————— —————Total 141.71 132.00 ————— —————CLASSIFICATION Secured - - Unsecured 141.71 132.00

Note - 5

LONG TERM PROVISIONS(Rs. in Crores)

As at As at 31-03-2015 31-03-2014 ——————— ———————ForEmployeeBenefits - Gratuity* - - - Leave Encashment 213.18 195.54 -OtherEmployeeBenefits# 142.62 134.71OBR Adjustment Account** 5.405.14 4,428.11 Mine Closure Expense*** 472.43 327.56 For Others**** 0.12 0.12 ————— ————— TOTAL 6,233.49 5,086.04 ————— —————

• ReferFootofNote-19“OTHERCURRENTASSETS”.

** Survey Measurement of overburden removed during the period has been conducted at all the projects. The measured quantity of overburden has been considered for Overburden Removal Adjustment after considering the variance between reported quantity and the measured quantity in respect of all the projects. (Refer Note 33- Accounting Policy 16.0).

AnamountofRs.977.03CroreshasbeendebitedtoProfit&LossAccount(PreviousyearRs.761.16Crores)onaccountofvariancein Current Ratio (O.B. : Coal) with standard ratio (O.B. : Coal), by giving corresponding effect to this extent in Long term provisions.

*** In accordance with guidelines issued by Ministry of Coal on 27th August, 2009 & subsequent guidelines, Mine Closure Plan has been prepared by CMPDIL and approved by NCL Board for the Projects Jhingurda, Block B, Bina, Krishanshilla, Jayant, Khadia, Amlohri, Dudhichua, Kakri and Nigahi Project, on account of water quality management, air quality management, waste management, top soil management of coal rejects from washeries, infrastructure, disposal of mining machinery and safety & security. Based on the approved Mine Closure Plan, provision has been made in the accounts for Rs. 449.43 crores upto 31.03.2015 (Previous year Rs. 304.56 Crores) & an amount of Rs. 449.43 crores including Interest received Rs. 34.06 crores (Previous year Rs. 8.10 Crores)has been deposited in an escrow account set up for this purpose.

In respect of Gorbi Project (Closed mine), an amount of Rs. 23.00 Crores as on 31.03.2015 (Rs. 23.00 Crores as on 31.03.2014) has been provided as per the technical estimate received from CMPDIL towards mine closure expenses.

Based on the above, provision of Rs. 144.87 Crores (Previous year Rs. 115.73 Crores) including interest received Rs. 25.96 crores (Previous year Rs. 8.10 Crores)from Escrow Account has been made during the year ended 31.03.2015. (Refer Note-29).

**** A provision of Rs. 0.12 Crores (Previous year Rs. 0.12 Crores) had been made against loss on theft/damage of Fixed Assets.

# itincludesprovisionofRs.27.12Crores(PreviousyearRs.24.87Crores)hasbeenmadeagainstCMPFandPensionFundonLongTerm Acturial Liability of Leave Encashment.


105

NOTES TO BALANCE SHEET

Note - 6

SHORT TERM BORROWING(Rs. in Crores)

As at As at 31-03-2015 31-03-2014 —————— —————— LOAN FROM BANKS 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 : - - ————— ————— CLASSIFICATION 1 Secured - - Unsecured - - CLASSIFICATION 2 Loan Guaranteed by Directors & others

Particulars of Loan Amount in Rs. crores Nature of Guarantee

Note - 7

TRADE PAYABLES(Rs. in Crores)

As at As at 31-03-2015 31-03-2014 ——————— —————— Sundry Creditors For Supplies For Revenue Stores 117.06 90.23 ————— ————— 117.06 90.23 ————— —————

ANNUAL REPORT 2014-15 _________________________________________________________

106

NOTES TO BALANCE SHEETNote - 8

OTHER CURRENT LIABILITIES

(Rs. in Crores) As at As at 31-03-2015 31-03-2014 ——————— ——————— Current Maturities of Long Term Borrowings Loan From Coal India Limited - -Surplus Funds from Coal India Limited Current Account with Subsidiaries - - ———— ———— - - ———— ———— For Capital (including stores) 49.45 39.78 FOR EXPENSES : Salary Wages & Allowances 263.98 235.02Power & Fuel 23.07 32.89Others 384.51 323.73 ———— ———— 671.56 591.64 ———— ————STATUTORY DUES : Sales Tax/ VAT 14.21 10.26Provident Fund & Pension Fund 20.28 19.95Central Excise Duty 18.80 23.97Royalty & Cess on Coal 14.01 88.25Stowing Excise Duty 20.75 20.15Clean Energy Cess 153.88 33.19Income Tax Deducted at Source 46.16 30.73Other Statutory Levies 689.28 291.87 ———— ———— 977.37 518.37 ———— ————

OTHERS : Security Deposit 100.04 75.41Earnest Money 18.49 19.80Advance & Deposit from customers / others 713.63 840.51Interest Accrued and due on Borrowings - -Interest Accrued but not due on Borrowings - - Other Liabilities - -Expenses for Coal India Sports Promotion Association 1.72 1.75 -Unutilised Govt. Grant - 1.70 -Income received in advance - - ————— ————— 833.88 939.17 ————— ————— TOTAL 2,532.26 2,088.96 ————— —————


107

NOTES TO BALANCE SHEET Note- 9

SHORT TERM PROVISIONS

(Rs. in Crores) As at As at 31-03-2015 31-03-2014 —————————— —————————— ForEmployeeBenefits

- Gratuity

- Leave encashment 21.58 18.50

- Ex-gratia/ PPLB 61.47 48.60

- PRP* 194.54 162.28

-OtherEmployeebenefits(Actuary) - -

For Proposed Dividend - -

For Corporate Dividend Tax - -

For Excise duty on Closing Stock of Coal 39.77 51.44

For Income Tax** 1,646.00 1,649.70

Less: Advance Income Tax/Tax deducted at source 1,646.00 1,649.70

————— - —————— - Others -Wealth Tax *** 1.25 0.50 ————— ————— TOTAL 318.61 281.32 ————— —————

* The total liability of Rs. 255.84 crores since 2007-08 upto 31.03.2015 has been netted-off with Rs. 61.30 crores (i.e.75% amount of PRP for the year 2007-08 to 2010-11) paid to the Employees (Executives) as Recoverable Advance. Provision of Rs. 27.93 Crores (Previ-ous year Rs. 39.69 Crores) has been made for the year ended 31.03.2015 in respect of PRP to the Employees (Executives) as per advice of Coal India Limited. (refer Note-24).

** In the opinion of the management, provision made for Income Tax during the year Rs. 1,646.00 Crore (Prev. year Rs. 1,649.70 Crores) is considered adequate.

*** In the opinion of the management, provision made for Wealth Tax during the year Rs. 1.25 Crore (Prev. year Rs. 0.50 Crores) is con-sidered adequate.

ANNUAL REPORT 2014-15 _________________________________________________________

108

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ANNUAL REPORT 2014-15 _________________________________________________________

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111


NON - CURRENT INVESTMENTS Unquoted at Cost

(Rs. in Crores)

Number of shares/bonds/

securities as on 31.03.2015 / (31.03.2014)

Face value per shares/bonds/

security (in Rs.)

As at 31-03-2015

Ast at 31-03-2014

TRADE8.5% Tax Free Special Bonds (Fully Paid up) (Unquoted) :(on securitisation of Sundry Debtors)Major State-wise Break-up

UP NIL/(02) 57,280,000.00 - 11.45

Haryana - - - -

Maharashtra - - - -

Madhya Pradesh - - - -

Gujarat - - - -

West Bengal - - - -

Others - - - -

Equity Shares in Joint Venture Companies - - - -

Equity Shares in Subsidiaries Companies - - - -

Others (in Co-operative Shares) - - - -

Total : - 11.45

Aggregate amount of Quoted Investment - -

Aggregate amount of Unquoted Investment - 11.45

Market Value of Quoted Investment - -

Provision made for diminution in the value of Investment - -

ANNUAL REPORT 2014-15 _________________________________________________________

112


LONG TERM LOANS & ADVANCES(Rs. in Crores)

As at As at 31-03-2015 31-03-2014 ———————— —————————LOANS - -

ADVANCES For Capital - Secured considered good - - - Unsecured considered good 32.98 4.38 - Doubtful 0.26 0.24 ———————— ————————— 33.24 4.62Less : Provision for Doubtful Loans and Advances** 0.26 0.24 ———————— ————————— Sub Total 32.98 4.38 ———————— —————————For Revenue - Secured considered good - - - Unsecured considered good - - - Doubtful - - ———————— ————————— - - ———————— —————————

Less : Provision for Doubtful Loans and Advances** - - ———————— ————————— Sub Total - - ———————— —————————Security Deposits (For Electricity) - Secured considered good - - - Unsecured considered good 34.29 35.26 - Doubtful - - ———————— ————————— 34.29 35.26

Less : Provision for Doubtful Loans and Advances** - - ———————— ————————— Sub Total 34.29 35.26 ———————— —————————Deposit with Courts, etc. - Secured considered good - - - Unsecured considered good* 23.71 17.47 - Doubtful 0.52 0.52 ———————— ————————— 24.23 17.99Less : Provision for Doubtful Loans and Advances** 0.52 0.52 ———————— ————————— Sub Total 23.71 17.47 ———————— —————————LOAN TO EMPLOYEES For House Building - Secured considered good 15.34 17.64 - Unsecured considered good - - - Doubtful - - ———————— ————————— Sub Total 15.34 17.64 ———————— —————————For Motor Car and Other Conveyance - Secured considered good 0.03 0.07 - Unsecured considered good - - - Doubtful - - ———————— ————————— Sub Total 0.03 0.07 ———————— —————————


113

NOTES TO BALANCE SHEETNote - 12 (Contd..)

LONG TERM LOANS & ADVANCES(Rs. in Crores)

As at As at 31-03-2015 31-03-2014 ———————— —————————For Others - Secured considered good - - - Unsecured considered good - - - Doubtful - - ———————— ————————— - - ———————— —————————

Less : Provision for Doubtful Loans and Advances** - - ———————— ————————— Sub Total - - ———————— —————————Loan To Subsidiaries - Secured considered good - - - Unsecured considered good - - - Doubtful - - ———————— ————————— Sub Total - -

TOTAL 106.35 74.82 ———————— —————————Classification: Secured 15.37 17.71 Unsecured - Considered Good 90.98 57.11 - Considered Doubtful 0.78 0.76

Note

CLOSING BALANCE MAXIMUM AMOUNT DUE AT ANY TIME DURING

CURRENT YEAR PREVIOUS YEAR CURRENT YEAR PREVIOUS YEAR

Due by the Companies in which direc-tors of the company is also a director/ member

- - - -

Due by the parties in which the Direc-tor(s) of company is /are interested

- - - -

* Singrauli Municipal Authority has claimed Terminal tax of Rs. 152.08 crores (Rs. 152.08 crores as on 31.03.2014) against which

an amount of Rs. 16.36 Crores (Prev. year Rs. 16.36 crores) has been deposited under protest. The matter is pending before Hon’ble Supreme Court. However, the claim of Rs. 152.08 Crores has been shown as Contingent Liability.

** Total Provision of Rs. 0.78 crores (as on 31.03.2014 Rs. 0.76 crores), as on 31.03.2015 on account of Doubtful Loans & Advanc-es is considered adequate.

ANNUAL REPORT 2014-15 _________________________________________________________

114


OTHER NON-CURRENT ASSETS(Rs. in Crores)

As at As at 31-03-2015 31-03-2014 ———————— ———————— Long Term Trade Receivable - Secured considered good - - - Unsecured considered good - - - Doubtful - - ———————— ———————— - - Less: Provision for bad and doubtful trade receivables - - ———————— ———————— - - Exploratory Drilling Work - - Less: Provision for bad & doubtful receivables - - ———————— ———————— - -Receivable for Mine Closure Expenses 6.22 3.15

Other Receivables - Secured considered good - Unsecured considered good - Doubtful ———————— ———————— - - ———————— ————————

Less: Provision for bad & doubtful receivables - - ———————— ———————— TOTAL 6.22 3.15 ———————— ————————

Note

CLOSING BALANCE MAXIMUM AMOUNT DUE AT ANY TIME

CURRENT YEAR PREVIOUS YEAR CURRENT YEAR PREVIOUS YEAR

Due by the Companies in which directors of the company is also a director/ member

- - - -

Due by the parties in which the Direc-tor(s) of company is /are interested

- - - -


115

NOTE TO BALANCE SHEET AS AT 31ST MARCH, 2015Note – 14

CURRENT INVESTMENTS — UNQUOTED AT COST

(Rs. in Crores)

Number of Face Value Market Value/ units/bonds/ per unit/ NAV per unit/ securities as bonds/ bonds/security/ on 31.03.2015/ security as on 31.03.2015/ (31.03.2014) (in Rs.) (31.03.2014) As at As at (in Rs.) 31.03.2015 31.03.2014 ———————— —————————— —————————— ————— ——————

TRADE (Quoted at Cost)

Mutual Fund Investment

UTI Liquid Cash Plan 176,525.04 1,019.45 18.00

SBI Premium Liquid Fund 262,584.76 1,003.25 26.34

Canara Robeco Liquid Fund 24,942.57 1,005.50 2.51

Union KBC Liquid Fund 19,851.50 1,000.65 1.99

BOI AXA Liquid Fund 13,208.99 1,002.65 1.32

8.5% Tax Free Special Bonds (Fully Paid up)(Unquoted at Cost) :(on securitisation of Sundry Debtors)

Major State-wise Break-up

UP 02 (02) 57,280,000 57,280,000 11.46 11.46 ————— ————— Total 61.62 11.46 ————— —————

Aggregate amount of Quoted Investment 50.16 —

Aggregate amount of Unquoted Investment 11.46 11.46

Market Value of Quoted Investment — —

Provision made for diminution in the value of Investment — —

ANNUAL REPORT 2014-15 _________________________________________________________

116


INVENTORIES(Valuation as per Accounting Policy No. 6 ) (Rs. in Crores) As at As at 31-03-2015 31-03-2014 ——————— ———————Finished Goods- Stock of Coal* 379.54 484.64 Coal under development - - ————— ————— 379.54 484.64

Less : Provision - - ————— —————A Stock of Coal (Net) 379.54 484.64 ————— ————— Stock of Stores & Spare Parts 470.03 413.10 Stores -in -transit 32.86 39.03 ————— ————— 502.89 452.13 Less : Provision** 46.64 43.66 ————— —————B Net Stock of Stores & Spare Parts 456.25 408.47 ————— ————— C Workshop Jobs : Work-in-progress and Finished Goods Less : Provision ————— ————— Net Stock of Workshop Jobs - - ————— ————— D Press : Work-in-Progress and Finished Goods - - E Stock of Medicine at Central Hospital 0.12 0.08 F Prospecting & Boring/ Development Exp./ Coal blocks meant for sale - - ————— ————— Total ( A to F ) 835.91 893.19 ————— —————

* Stocks of coal are valued separately for each mine at cost or average net realizable value whichever is lower. Net realisable value

of stock of coal at the year end has been arrived at on the basis of average net realisable value for the quarter ended 31.03.2015.

** A total provision of Rs. 46.64 Crores (As at 31.03.2014 Rs. 43.66 Crores) made for stores and spares which includes for unmoved stores & spares Rs. 25.02 Crores (As at 31.03.2014 Rs. 22.48 Crores) for more than 5 years and Rs. 20.08 Crores (As at 31.03.2014 Rs. 20.03 Crores) for obsolete/ damaged/unserviceable items of stores and Rs. 1.54 crores (As at 31.03.2014 Rs. 1.15 Crores) on account of shortage of stores including theft upto 31.03.2015, made in accordance with Accounting Policy of the company, is con-sidered adequate.


117


ANNEXURE TO NOTE - 15(Qty in lakh tonnes) ( Value in crore Rs.)

Table-AReconciliation of closing stock adopted in

Account with Book stock as at the end of the period :

OVERALL STOCK NON-VENDABLE STOCK VENDABLE STOCKQty. Value Qty. Value Qty. Value

1. (A) Opening stock as on 01.04.14 61.07 484.64 - - 61.07 484.64

( B) Adjustment in Opening Stock

2. Production for the period 724.84 8,901.82 - - 724.84 8,901.82

3. Sub-Total ( 1+2) 785.91 9,386.46 - - 785.91 9,386.464. Off- Take for the period :

(A) Outside Despatch 700.77 8,918.25 - - 700.77 8,918.25

(B) Coal feed to Washeries 36.16 88.67 - - 36.16 88.67

(C) Own Consumption - - - - - -

TOTAL(A) 736.93 9,006.92 - - 736.93 9,006.92

5. Derived Stock 48.98 379.54 - - 48.98 379.54

6. Measured Stock 48.41 375.12 - - 48.41 375.12

7. Difference (5-6) 0.57 4.42 - - 0.57 4.42

8. Break-up of Difference:

(A) Excess within 5% - - - - - -

(B) Shortage within 5% 0.57 4.42 - - 0.57 4.42

(C ) Excess beyond 5% - - - - - -

(D ) Shortage beyond 5% - - - - - -

9. Closing stock adopted in A/c 48.98 379.54 - - 48.98 379.54

Table-BSummary of Closing Stock of Coal

Raw Coal Washed / Deshaled Coal Other TotalCoking Non-Coking Coking Non-Coking Rejects

Qty Value Qty Value Qty Value Qty Value Qty Value Qty ValueOpening Stock (Audited) - - 61.07 484.64 - - - - 61.07 484.64Less: Non-vendable Coal - - - - - - - - - - - -Adjusted Opening Stock ( Vendable) - - 61.07 484.64 - - - - 61.07 484.64Production - - 724.84 8,901.82 - - - - - - 724.84 8,901.82

Offtake* (A) Outside Despatch - - (700.77) (8,918.25) - - (34.41) (523.09) (1.50) (11.24) (736.68) (9,452.58)

(B) Coal feed to Washeries - - (36.16) (88.67) - - 36.16 88.67 - - - -(C) Own Consumption - - - - - - - - - - - -Closing Stock ** - - 48.98 379.54 - - 1.75 - - - 50.73 379.54Less: Shortage - - - - - - 1.75 - - - 1.75 -

Closing Stock ** - - 48.98 379.54 - - - - - - 48.98 379.54 * Offtake includes outside despatch, Coal feed to washeries & own consumption.** Excluding non-vendable Stock

ANNUAL REPORT 2014-15 _________________________________________________________

118


Note - 16

TRADE RECEIVABLE(Rs. in Crores)

As at As at 31-03-2015 31-03-2014 —————— —————— Debts outstanding for a period exceeding six months from the due date - Secured considered good - -

- Unsecured considered good** 292.16 781.99

- Doubtful 707.81 653.68 ————— ————— 999.97 1,435.67

Less : Provision for bad & doubtful trade receivable* 707.81 653.68 ————— ————— 292.16 781.99 Other Debts - Secured considered good - -

- Unsecured considered good 328.98 173.95

- Doubtful - - ————— ————— 328.98 173.95

Less : Provision for bad & doubtful trade receivable* - - ————— ————— 328.98 173.95 ————— ————— Total 621.14 955.94 ————— —————Classification: Secured - -

Unsecured - Considered Good 621.14 955.94

- Considered Doubtful 707.81 653.68

Note :

CLOSING BALANCE

MAXIMUM AMOUNT DUE AT ANY TIME DURING

CURRENT PERIOD

PREVIOUS PERIOD

CURRENT PERIOD

PREVIOUS PERIOD


- Coal India Limited, the holding company - - - 0.08

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

- - - -


119


Note - 16

TRADE RECEIVABLE (Contd.)

*PROVISION TOWARDS DEEMED LOWERING OF GRADE

WiththeintroductionofGrossCalorificvalue(GCV)systemofgradingofcoalw.e.f.1stJanuary2012,supply of coal to NTPC was billed at declared grade of coal corresponding to the GCV range of the coal supplied. With effect from October 2012 NTPC released payment based on GCV determined unilaterally at the receiving end, contrary to the provision of Fuel Supply Agreement which stipulates that the GCV is to be determined at the loading end by joint collection, preparation, testing and analysis of the coal being supplied.

As a result an amount of Rs. 669.89 Crore (Basic bill value Rs.643.88 crore and incentive for 2012-13 Rs.26.01 crore) was unilaterally withheld by NTPC for the period October, 2012 to September, 2013 as on 31.03.2015 from the bills of the Company in respect of supply of coal, which was against the provision of FSA. The issue was taken up with the Ministry of Power through the Ministry of Coal for resolution which resulted in incorporation of a provision for third party sample collection, preparation, testing and analysis at the point of loading in the FSA. Such third party sampling/analysis was implemented from October 2013.

For an appropriate resolution of the issue, the Govt. of India advised for extrapolation of the result of the third party sampling/analysis during October – December 2013 to the supplies during the past period from October 2012 to September 2013. On the basis of this settlement formula an amount of Rs. 669.89 crore (Basic bill value Rs. 643.88 crore and incentive for 2012-13 Rs. 26.01 crore) has been provided in the Accounts upto 31.03.2015.

**It includes a sum of Rs. 3.34 crores recoverable from e-auction & road sale customers on account of the supplementary bills raised for recovering the excise element on royalty and stowing excise duty paid under protest by the Company for the period 1.03.2011 to 28.2.2013. The recoveries from the customers to the extent of Rs. 1.74 crores , have been stayed by the courts. Further, the issue as to the royalty to be a part of the transaction value is pending before the larger bench of the Supreme Court. The Company has challenged the chargeability of the excise duty on royalty and stowing excise duty before the CESTAT, New Delhi and the case is pending for hearing/ decision. In view of above, no provision has been made against the same.

Total provision of Rs. 707.81 Crores for Bad & Doubtful Debts is considered adequate as at 31.03.2015 (As at 31.03.2014 Rs. 653.68 Crores).

ANNUAL REPORT 2014-15 _________________________________________________________

120


CASH & BANK BALANCE

(Rs. in Crores) As at As at 31-03-2015 31-03-2014 —————— ——————Cash & Cash Equivalents Balances with Scheduled Banks - In Deposit Accounts with maturity upto 3 months - - - In Current Accounts* 110.19 20.38 - In Cash Credit Accounts - - Balances with Non - Scheduled Banks - - Remittance - in transit - - Cheques, Drafts and Stamps on hand - - Cash in hand 0.02 0.02 Other Bank Balances Balances with Scheduled Banks - In Deposit Accounts with maturity between 3-12 months** 6,705.45 7,169.47 - In Deposit maturing in more than 12 months - - Term Deposit with Scheduled Banks under Escrow Account with maturity more than 12 months 449.44 253.92 ————— ————— Total 7,265.10 7,443.79 ————— ————— Maximum amount outstanding with Banks other than Scheduled Banks at any time during the year - -

Note:

* Includes an amount of Rs. 19.08 crores (Rs. 13.69 crores as on 31.03.2014) in sweep account with Banks and lien of Rs. 5.33 crores & Rs. 7.39 crores for Jayant & Amlohri Projects respectively, has been created on the notice of DCIT (TDS), Jabalpur.

** DepositwithBanksincludesfixeddepositofRs.1.62cr(Rs.1.65croresason31.03.2014)pledgedwithBankasmarginmoneyforB. G. Interest accrued thereon is Rs. 0.19 crores (Rs. 0.18 crores as on 31.03.2014).

DepositwithBanksincludesfixeddepositofRs.339CrlienmarkedwithBankagainstBankGuaranteeofRs.337Cr.toUPForestDepartment against Transit Fees.

** Deposits with Bank includes Rs. 4.83 Crores (Rs. 4.47 crores as on 31.03.2014) as per the order of Hon’ble High Court, Kolkata, has been kept in separate interest bearing account. Interest accrued on these deposit are Rs. 0.11 Crores (Previous Year Rs. 0.10 Crores).


121


SHORT TERM LOANS & ADVANCES(Rs. in Crores)

As at As at 31-03-2015 31-03-2014 ——————— ——————LOANS - - ADVANCE (Recoverable in cash or in kind or for value to be received) ADVANCE TO SUPPLIERS For Revenue - Secured considered good - - - Unsecured considered good 50.85 5.03 - Doubtful 0.73 1.24 ————— ————— 51.58 6.27Less : Provision for Bad & Doubtful Advances* 0.73 1.24 ————— ————— Sub total 50.85 5.03 ————— —————ADVANCE PAYMENT OF STATUTORY DUES Excise Duty - Secured considered good - - - Unsecured considered good 21.48 20.68 - Doubtful - - ————— ————— 21.48 20.68Less : Provision for Bad & Doubtful Advances* - - ————— ————— Sub total 21.48 20.68 ————— —————Advance Income Tax / Tax Deducted at Source 1,695.72 1,728.84Less : Provision for Income Tax 1,646.00 1,649.70 ————— ————— Sub total 49.72 79.14 ————— —————Others - Secured considered good - Unsecured considered good - 0.02 - Doubtful - - ————— ————— - 0.02Less : Provision for Bad & Doubtful Advances* - - ————— ————— Sub total - 0.02 ————— ————— ADVANCE TO EMPLOYEES - Secured considered good - - - Unsecured considered good 3.31 1.91 - Doubtful 0.00 - ————— ————— 3.31 1.91Less : Provision for Bad & Doubtful Advances* 0.00 - ————— ————— Sub total 3.31 1.91 ————— ————— Current Account with Coal India Limited (Holding Co.) & other Subsidiaries of Coal India Limited - 1.59 ————— ————— Sub total - 1.59 ————— —————

Continued…

ANNUAL REPORT 2014-15 _________________________________________________________

122

NOTES TO BALANCE SHEETNote - 18 (Continued..)

SHORT TERM LOANS & ADVANCES(Rs. in Crores)

As at As at 31-03-2015 31-03-2014 ——————— ——————

Claims Receivables - Secured considered good - - - Unsecured considered good 13.29 5.42 - Doubtful 4.16 3.10 ————— ————— 17.45 8.52

Less : Provision for Bad & Doubtful Advances* 4.16 3.10 ————— ————— Sub total 13.29 5.42 ————— ————— Prepaid Expenses - 0.11 ————— ————— TOTAL 138.65 113.90 ————— —————Classification: Secured - - Unsecured - Considered Good 138.65 113.90 - Considered Doubtful 4.90 4.34

Note:

CLOSING BALANCE MAXIMUM AMOUNT DUE AT ANY TIME DURING

CURRENT PERIOD PREVIOUS YEAR CURRENT PERIOD PREVIOUS YEAR


Coal India Limited (Holding Co.)& other Subsidiaries of Coal India Limited

- 1.59 - 1.59

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

- - - -

* Total Provision of Rs. 4.90 crores as on 31.03.2015 (as on 31.03.2014 Rs. 4.34 crores) on account of Doubtful Loans & Advances

is considered adequate.


123

NOTES TO BALANCE SHEETNote -19

OTHER CURRENT ASSETS(Rs. in Crores)

As at As at 31-03-2015 31-03-2014 —————— ——————Interest Accrued - Investment 0.49 0.97 - Deposit with Banks 354.36 404.42 - Others - - ————— ————— Sub Total 354.85 405.39 ————— —————Ex Owner’s Account - -Other Advances - Secured considered good - - - Unsecured considered good* 40.00 31.99 - Doubtful 6.85 7.48 ————— ————— 46.85 39.47Less: Provision for Bad & Doubtful Advances$ 6.85 7.48 ————— ————— Sub Total 40.00 31.99 ————— —————DEPOSITS Deposit for Customs Duty, Port Charges etc. - - Deposit with Coal India Limited 588.01 2,495.47 Deposit for Royalty, Cess & Sales Tax - - Less: Provision - - ————— ————— Sub Total 588.01 2,495.47 ————— ————— Others (Deposit under Protest)** 1,469.16 1,133.94 Less: Provision for Doubtful Deposits$ 0.09 0.09 ————— ————— Sub Total 1,469.07 1,133.85 ————— ————— Other Receivables VAT & CENVAT Receivable 120.49 121.67 Rent & Electricity Receivable 2.28 2.94 ————— ————— 122.77 124.61 Less: Provision for Doubtful Recievable$ 46.56 39.90 ————— ————— Sub Total 76.21 84.71 ————— ————— ————— ————— TOTAL 2,528.14 4,151.41 ————— ————— Classification: Secured - - Unsecured - Considered Good 2,528.14 4,154.56 - Considered Doubtful 53.50 47.47

…continued

ANNUAL REPORT 2014-15 _________________________________________________________

124


OTHER CURRENT ASSETS…continued

* Of the total actuarial liability of Rs. 646.90 crores and outstanding gratuity liability of Rs. 3.08 crores has been net-off with Rs. 688.40 crores deposited with LIC (Rs. 645.94 crores as on 31.03.2014) which includes interest amounting to Rs. 58.66 crores, Net of Insurance Premium Rs. 1.9 Crore (Prev. year Rs. 56.69 crore, Net of Insurance Premium Rs. 1.61 Crore) @ 9.40% pa. has been accounted for on accrual basis for the period ended on 31.03.2015.

** Commercial Tax Department of M.P. and UP has raised a demand of Rs. 1040.06 Crores (As at 31.03.2014 Rs. 737.92 Crores) till 31.03.2015 for Sales Tax & Entry Tax, against which appeal hasbeenfiledandRs.248.56Crores(Asat31.03.2014Rs.120.23Crores)hasbeendepositedunder protest. However, the claim of Rs. 1040.06 Crores has been shown as Contingent Liability.

** Singrauli Municipal Authority has claimed licence and composite fees for construction of building of Rs. 9.87 Crores during 1999-2000 against which an amount of Rs. 6.00 Crores has been deposited under protest in 2002-03. The matter is pending before Hon’ble Supreme Court. However, the claim of Rs. 9.87 Crores has been shown as Contingent Liability.

** Govt. of Madhya Pradesh has claimed Land Revenue Premium for an amount of Rs. 117.05 Crores against which an amount of Rs. 3.00 Crores has been deposited under protest to Hon’ble High Court Jabalpur during the year 2004-05. However, the claim of Rs. 117.05 Crores has been shown as Contingent Liability. The matter is pending before the Hon’ble High Court, Jabalpur.

** Commissioner of Income tax, Jabalpur has demanded Rs. 13.12 crores against adhoc provion of NCWA VII during A/Y 2002-03 & 2003-04 & on account of interest income on parking of surplus fund with CIL for A/Y 2002-03 against which an amount of Rs. 13.12 crore has been deposited with Income tax department under protest as the matter is pending before Hon’ble High Court, Jabalpur.

Furthermore, Assistant Commissioner of Income Tax, Jabalpur raised a demand for Assessment Year 2010-11 Rs. 1004.00 crores at the time of assessment under section 143(3) by disallowing various allowable expenses and demand is reduced to Rs. 990.76 crores under section 250 after giving appeal effect of CIT(A) against which an amount of Rs. 990.76 crores has been deposited with Income Tax department under protest. Hon’ble ITAT, Jabalpur is pleased to pronounce the decision in favour of NCL vide order dated 05.05.2015. Thus, after the appeal effect of ITAT Order NCL is eligible for the refund Rs. 990.76 crores alongwith interest.And for Assessment year 2011-12 Assistant Commissioner of Income Tax, Jabalpur raised a demand of Rs. 1018.65 crores at the time of assessment under section 143(3) by disallowing various allowable expenses, subsequently demand was reduced to Rs. 910.99 crores under


125


OTHER CURRENT ASSETS…continued

section154and250afterrectificationandappealeffectofCIT(A)againstwhichanamountof Rs. 164.14 crores (including Rs. 14.14 Crore as adjustment of Refund of earlier year) has been deposited with Income Tax deptt. under protest as the matter is subjudice and pending before Income Tax Appellate Tribunal, Jabalpur and for A/Y 2012-13 Assistant Commissioner of Income Tax, Jabalpur raised a demand of Rs. 860.96 crores at the time of assessment under section 143(3) by disallowing various allowable expenses, against which an amount of Rs. 40.00 crores has been deposited with Income Tax department under protest as the matter is subjudice and pending before commissioner of Income Tax (Appeal), Jabalpur

** MPPKVVCL has raised a claim of Rs. 7.44 Crores (As at 31.03.2014 Rs. 7.44 Crores) till 31.12.2014. The matter was challenged before Electricity Ombudsman, Bhopal under case no. L0024112 and Rs. 2.50 Crores (As at 31.03.2014 Rs. 2.50 Crores) has been deposited under protest. However, the decision of the Ombudsman is awaited and the amount of Rs. 7.44 Crores has been shown as Contingent Liability.

$ Total Provision of Rs. 53.50 crores as on 31.03.2015 (as on 31.03.2014 Rs. 47.47 crores) on account of Doubtful Loans & Advances is considered adequate.

ANNUAL REPORT 2014-15 _________________________________________________________

126

NOTES TO STATEMENT OF PROFIT & LOSS

Note- 20

REVENUE FROM OPERATIONS

( Rs. in Crores) For the Year For the Year ended 31.03.2015 ended 31.03.2014 ————————— —————————

A Sales of Coal* 13,161.25 12,400.42

Less: Excise Duty 657.22 649.45

Less : Other Levies

Royalty 1,208.42 1,184.37

Cess on Coal 10.82 13.25

Stowing Excise Duty 73.70 72.11

Central Sales Tax 131.56 104.69

Clean Energy Cess 716.91 361.97

State Sales Tax/ VAT 285.13 298.01

Others Levies** 624.91 412.69 —————— ——————TOTAL LEVIES 3,708.67 3,096.54 —————— ——————NET SALES* (A) 9,452.58 9,303.88 B Loading and Additional Transportation Charges 222.99 213.66

Less- Excise Duty 12.50 11.86

Less:- Other Levies

Central Sales Tax 2.44 1.79

State Sales Tax/ VAT 4.61 4.98

Others Levies 0.43 0.57

Total Levies 19.98 19.20

—————— ——————Other Operating Revenue (B) 203.01 194.46 —————— ——————C Revenue From Operations (A+B) 9,655.59 9,498.34 —————— ——————

* includes incentive from customers Rs. 98.46 Crores for the year ended 31.03.2015 (Previous Year Rs. 134.76 Crores).

** includes UP Transit Fees (including VAT & CST) for the period Jan. 1999 to March 2012 amounting to Rs. 384.29 Crores for which bills are raised during current period and Rs.36.46 Crores against MPGATSVA by realising Bank Guarantee form M/s HINDALCO Industries Limited.


127

NOTES TO STATEMENT OF PROFIT & LOSSNote - 21

OTHER INCOME( Rs. in crores)

For the Year For the Year ended 31.03.2015 ended 31.03.2014 ————————— ————————— Income From Long Term Investments

Dividend from Joint Ventures - -

Interest from:

Government Securities ( 8.5% Tax Free Special Bonds)* 0.73 1.71

Income From Current Investments

Dividend from Mutual Fund Investments 0.98 _

Interest from:

Government Securities ( 8.5% Tax Free Special Bonds)* 0.97 0.97

Income From Others

Interest (Gross)

(TDS Rs. 100.98 Crores, Previous year Rs. 95.63 Crores)

From Deposit with Banks 836.89 832.49

From Loans and Advances to Employees 0.77 0.55

From Income Tax Refunds - 0.18

From Parking of Surplus Fund with Coal India Ltd 169.39 113.78

Others 2.72 2.35

ProfitonSaleofAssets 0.80 -

Gain on Foreign exchange Transactions - -

Exchange Rate Variance - -

Lease Rent 2.88 3.09

Liability write back 13.55 2.71

Other Non Operating Income 82.85 53.59

—————— ——————

TOTAL 1,112.53 1,011.42

—————— ——————

* In terms of the Scheme of Securitisation, one-time settlement against past dues of UPSEB as on 30.09.2001 has been made by

executing an agreement. Accordingly 8.5% Tax Free Govt. of U.P. Special Bond amounting to Rs. 114.56 Crores have been issued which are to be redeemed over a period of 15 years in 20 equal six monthly installments commencing from 01.10.2006. Interest received from these bonds is Rs.1.70 Crores (Previous Year Rs.2.68 Crores.

ANNUAL REPORT 2014-15 _________________________________________________________

128


COST OF MATERIAL CONSUMED

( Rs. in crores)

For the Year For the Year ended 31.03.2015 ended 31.03.2014 ————————— —————————

Explosives 408.73 353.21

Timber - -

P O L 637.85 717.37

HEMM Spares 406.27 386.53

Other Consumable Stores & Spares 125.85 133.41

————— ————— TOTAL 1,578.70 1,590.52 ————— —————


129


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

( Rs. in crores)


FINISHED GOODS Opening Stock of Coal 484.64 629.32 Add: Adjustment of opening stock Less: Deterioration of Coal - - ————— ————— 484.64 629.32 Less: Closing Stock of Coal 379.54 484.64 Less: Deterioration of Coal/Coke - - ————— ————— 379.54 484.64 ————— —————A) Change in Inventory of Coal 105.10 144.68 ————— —————OpeningStockofWorkshopmadefinishedgoodsandWIP - -Less: Provision - - ————— ————— - - ————— ————— Less: ClosingStockofWorkshopmadefinishedgoodsandWIP - -Less: Provision ————— ————— - - ————— ————— B) Change in Inventory of workshop - - ————— —————Change in Inventory of Stock in trade (A+B) 105.10 144.68 {Decretion / [Accretion]} ————— —————

ANNUAL REPORT 2014-15 _________________________________________________________

130


EMPLOYEE BENEFIT EXPENSES( Rs. in crores)

For the Year For the Year ended 31.03.2015 ended 31.03.2014 ————————— ————————— Salary,Wages,Allowances&Benefits 1,301.70 1,247.28

Ex-gratia* 68.49 53.22

PRP** 27.93 39.69

Contribution to P.F. & Other Funds 166.25 159.86

Gratuity*** 31.05 -

Leave Encashment 61.94 53.65

VRS – –

Workmen Compensation 0.10 0.29

Medical Expenses 24.80 21.70

Medical Expenses for Retired Employees 0.37 9.73

Grants to Schools & Institutions 9.20 21.92

Sports & Recreation# 4.29 3.53

Canteen & Creche 0.89 0.84

Power - Township 68.16 69.30

Hire Charges of Bus, Ambulance etc. 5.28 4.99

OtherEmployeeBenefits 30.02 25.24

————— —————

TOTAL 1,800.47 1,711.24 ————— ————— * Rs. 68.49 Crores (Previous year Rs. 53.22 Crores) provision has been made during the year ended 31.03.2015 in respect of

Ex-gratia to the Employees (Non-Executives) on the basis of Ex-gratia declared for the year 2013-14.** Refer Note no. 09*** Interest Received from LIC on Gratuity Fund - Rs. 58.66 crores, is net of Insurance Premium Rs. 1.90 crores (Prev. year - Rs. 56.69

Crores, Net of Insurance Premium Rs. 1.61 Crore) & Gratuity Expenses - Rs. 89.71 Crores (Prev. Year - Rs. 53.98 Crores).# includesanamountofRs.1.72crorestowardscontributiontoCoalIndiaSportsPromotionAssociation(CISPA)@Rs.0.25/-per

tonne of coal produced in the previous year, as decided in 296th CIL Board Meeting.

Note – 25

CORPORATE SOCIAL RESPONSIBILITY EXPENSES

( Rs. in crores)

For the Year For the Year ended 31.03.2015 ended 31.03.2014 ————————— ————————— CSR Expenses 61.77 39.72 ————— ————— TOTAL 61.77 39.72 ————— —————


131


REPAIRS( Rs. in crores)

For the Year For the Year ended 31.03.2015 ended 31.03.2014 ————————— ————————— Building 83.38 60.80

Plant & Machinery 128.34 126.45

Others 5.79 5.44

————— —————

TOTAL 217.51 192.69

————— —————

Note - 27

CONTRACTUAL EXPENSES( Rs. in crores)


Transportation Charges :

- Sand - -

- Coal & Coke 99.93 96.15

- Stores & Others etc. - -

Wagon Loading - -

Hiring of P&M 1,036.54 875.04

Other Contractual Work 74.84 69.14

————— ————— TOTAL 1,211.31 1,040.33 ————— —————

ANNUAL REPORT 2014-15 _________________________________________________________

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FINANCE COSTS( Rs. in crores)

For the Year For the Year ended 31.03.2015 ended 31.03.2014 ————————— ————————— INTEREST EXPENSES Deferred Payments - - Bank Overdraft / Cash Credit - - Interest on IBRD & JBIC Loan * - 4.97 CIL Fund Loan Interest - -Others 0.26 0.25 ————— ————— TOTAL(A) 0.26 5.22 ————— ————— OTHER BORROWING COST Guarantee Fees on (IBRD & JBIC) Loan - 8.74 Other Expenses / Bank Charges - 1.49 ————— ————— TOTAL(B) - 10.23 ————— ————— ————— ————— TOTAL (A+B) 0.26 15.45 ————— —————


133


PROVISIONS( Rs. in crores)

For the Year For the Year ended 31.03.2015 ended 31.03.2014 ————————— —————————(A) PROVISION MADE FOR Doubtful debts 60.11 650.69 Doubtful advances & Claims 12.00 15.53 Foreign exchange Transaction - - Stores & Spares 3.33 1.33 Reclamation of Land/ Mine Closure Expenses* 118.91 110.02 Surveyed of Fixed Assets/Capital WIP 2.22 3.78 Others - - ————— ————— TOTAL (A) 196.57 781.35 ————— ————— (B) PROVISION WRITTEN BACK Doubtful debts 5.98 0.08 Doubtful advances & Claims 5.39 2.08 Foreign exchange Transaction - - Stores & Spares 0.35 1.08 Reclamation of Land/ Mine Closure Expenses - 2.39 Surveyed of Fixed Assets/Capital WIP 16.69 1.38 Others - - ————— ————— TOTAL (B) 28.41 7.01 ————— ————— TOTAL ( A-B ) 168.16 774.34 ————— —————

* Provision of Rs. 118.91 Crores( Prev. Year Rs. 107.63 Crores) net of interest received Rs. 25.96 crores from Escrow Account ( Prev. Year Rs. 8.10 Crores) has been made during the year ended 31.03.2015 (Refer Note-5).

Note - 30

WRITE OFF( Rs. in crores)

For the Year For the Year ended 31.03.2015 ended 31.03.2014 ————————— ————————— Doubtful debts - -

Doubtful advances - -

Others - -

————— ————— TOTAL - - ————— —————

ANNUAL REPORT 2014-15 _________________________________________________________

134


OTHER EXPENDITURE( Rs. in crores)


Travelling expenses - Domestic 10.50 10.22 - Foreign 0.01 0.08 Training Expenses* 4.48 4.73 Telephone & Postage 4.50 4.77 Advertisement & Publicity 5.02 4.79 Freight Charges 0.69 0.28 Demurrage - 0.06 Donation/ Subscription - - Security Expenses 23.55 19.99 Service Charges of CIL** 36.24 34.32 Hire Charges 15.26 14.14 CMPDI Expenses 37.16 28.69 Legal Expenses 1.05 0.46 Bank Charges**** 0.55 0.05 Guest House Expenses 0.67 0.69 Consultancy Charges 0.07 0.81 Under Loading Charges 10.10 10.35 Loss on Sale/Discard/Surveyed of Assets - 2.12 Auditor’s Remuneration & Expenses - For Audit Fees 0.08 0.08 - For Taxation Matters 0.01 0.01 - For Company Law Matters - - - For Management Services - - - For Other Services 0.15 0.09 - For Reimbursement of Expenses 0.12 0.08 - For Cost Audit 0.05 0.05 Internal Audit & Other Management Expenses 1.67 0.79 Rehabilitation Charges*** 44.21 43.27 Royalty & Cess on Coal 80.87 71.31 Central Excise Duty (12.73) (22.24) Rent - - Rates & Taxes 11.01 7.48Wealth Tax 1.25 (0.05) Insurance 0.52 0.47 Loss on Exchange Rate Variance - -R & D Expenses 14.15 0.24 Lease Rent 0.02 0.19 Rescue/Safety Expenses 10.65 8.04 Dead Rent/Surface Rent - - Siding Maintenance charges 2.09 1.06 Land/Crops Compensation - - Environmental Expenses 6.42 6.75 Tree Plantation 4.81 3.97Misc. Expenses 11.66 11.97 ————— —————TOTAL 326.86 270.11 ————— ————— * As per advice received from Coal India Limited, Holding Company, training expenses @ Rs. 0.50 per tonne of production during the

period ended on 31.03.2015 amounting to Rs. 3.62 Crores (Previous year Rs. 3.43 Crores), towards contribution to Indian Institute of Coal Management (IICM) has been included in Training Expenses.

** As per advice received from Coal India Limited, Holding Company, the service charges @ Rs. 5/- per tonne of production of Coal has been charged.

*** As per advice received from Coal India Limited, Holding Company, the rehabilitation charges @ Rs. 6/- per tonne of dispatch has been charged.

**** Bank Charges includes Rs. 3934/- incurred on account of 8.5% Tax Free U P Special Bond .


135


PRIOR PERIOD ADJUSTMENTS( Rs. in crores)

For the Year For the Year ended 31.03.2015 ended 31.03.2014 ————————— —————————(A) Charges

Consumption of Stores & Spares 2.43 1.91

EmployeesRemuneration&Benefits - 3.74

Power & Fuel - 8.27

Welfare Expenses - (0.65)

Repairs - -

Contractual Expenses - -

Other Expenditure 0.84 (1.89)

Interestandotherfinancialcharges 3.82 0.89

Depreciation (10.29) -

————— —————

TOTAL (A) (3.20) 12.27

————— —————

(B) Income

Sale of Coal & Coke 21.59 0.43

Stock of Coal & Coke - -

Other Income (0.32) -

————— —————

TOTAL (B) 21.27 0.43

————— —————

TOTAL ( A-B ) (24.47) 11.84

————— —————

ANNUAL REPORT 2014-15 _________________________________________________________

136

1.0 Accounting Convention :

Financial statements are prepared under the historical cost convention and on accrual basis of accounting and going concern concept, in accordance with the generally accepted accounting principles in India and the relevant provisions of the Companies Act, 2013 including accounting standards notified there under, except otherwise stated.

1.1 Use of estimate

In preparing the financial statements inconformity 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 thedateoffinancialstatementsand theamount of revenue and expenses during the reported period. Actual results may differ from those estimates. Any revision to such estimate is recognized in the period in which the same is determined.

2.0 Subsidies/ Grants from Govt. :

2.1 Subsidies / Grants on capital account are deducted from the cost of 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 arecreditedtoStatementofProfit&Lossas income and the relevant expenses are debited to the respective heads of expenses. The unspent amount at the Balance Sheet date, if any, is shown as current liabilities.

2.3 Subsidies / Grants from Government received as an implementing agency

2.3.1 Certain Grant / Funds received under S&T, PRE, EMSC, CCDA etc. as an implementing agency and used for creation of assets are treated as Capital Reserve and depreciation thereon is debited to Capital Reserve Account. The ownership of the asset created through grants lies with the authority from whom the grant is received.

2.3.2 Grant / Funds received as Nodal/Implementing Agency are accounted for on the basis of receipts and disbursement.

3.0 Fixed Assets:

3.1 Land:

Value of land includes cost of acquisition, cash rehabilitation expenses, resettlement cost and compensation in l ieu of employment incurred for concerned displaced persons.

3.2 Plant & Machinery:

Plant & Machinery includes cost and expenses incurred for erection / installation and other attributable costs of bringing those assets to working conditions for their intended use.

3.3 Railway Siding:

Pending commissioning, payments made to the railway authorities for construction of railway sidings are shown in Note 12–“LongTermLoans&Advances”underAdvances for Capital.

NOTE– 33

SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2015 AND STATEMENT OF

PROFIT & LOSS FOR THE PERIOD ENDED ON THAT DATE


137

3.4 Development:

Expenses net of income of the projects / mines under development are booked to Development Account and grouped under Capital Work-in-Progress till the projects / mines are brought to revenue account. Exceptotherwisespecificallystatedintheproject report to determine the commercial readiness of the project to yield production on a sustainable basis and completion of required development activity during the period of constructions, projects and mines under development are brought to revenue considering the following criteria:

(a)Frombeginningofthefinancialyearimmediately after the year in which the project achieves physical output of 25% of rated capacity as per approved project report, or

(b) 2 years of touching of coal, or

(c) From thebeginningof the financialyear in which the value of production is more than total expenses,

- Whichevereventoccursfirst.

4.0 Prospecting & Boring and other Development Expenditure:

The cost of exploration and other development expenditure incurred in one “Five year” planperiodwill be keptin Capital work-in-progress till the end of subsequenttwo“Fiveyear”planperiodsfor formulation of projects, before it is written-off, except in the case of Blocks identifiedforsaleorproposedtobesoldto outside agency which will be kept in inventorytillfinalisationofsale.

5.0 Investments:

Current investments are valued at the lower of cost and fair value as at the Balance Sheet date.

Investments in mutual fund are considered as current investments.

Non-Current investments are valued at cost. However, when there is a decline, other than temporary, in the value of the long term investment, the carrying amount is reduced to recognize the decline

6.0 Inventories:

6.1 Book stock of coal / coke is considered in the accounts where the variance between book stock and measured stock is upto +/- 5% and in cases where the variance is beyond +/- 5% the measured stock is considered. Such stock are valued at net realisable value or cost whichever is lower.

6.1.1Coal&cokefinesarevaluedatlowerofcost or net realisable value.

6.1.2 Slurry (coking & semi-coking), middling of washeries and by products are valued at net realisable value.

6.2 Stores & Spares:

6.2.1 The closing stock of stores and spare parts has been considered in the accounts as per balances appearing in priced stores ledger of the Central Stores and as per physically verified stores lying at the collieries/units.

6.2.2 Stock of stores & spare parts at central & area stores are valued at cost calculated on the basis of weighted average method. The year-end inventory of stores & spare parts lying at collieries / sub-stores / drilling camps/ consuming centres, initially charged off, are valued at issue price of Area Stores, Cost / estimated cost. Workshop jobs including work-in-progress are valued at cost. Similarly stock of stationary at printing press and medicines at central hospital are valued at cost.

6.2.3 Stock of stationery (other than lying at printing press), bricks, sand, medicine (except at Central Hospitals), aircraft

ANNUAL REPORT 2014-15 _________________________________________________________

138

spares and scraps are not considered in inventory.

6.2.4 Provisions are made at the rate of 100% for unserviceable, damaged and obsolete stores and at the rate of 50% for stores & spares not moved for 5 years.

7.0 Depreciation:

7.1 Depreciationonfixedassetsisprovidedonstraight line method on the basis of useful lifespecifiedinScheduleIIofCompaniesAct, 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 to reflect/depictamoretrueandfairusefullife of these assets :

Telecommunication Equipment : 6 & 9 years

Photocopying Machine : 4 years

Fax Machine : 3 years

Mobile Phone : 3 years

Digitally Enhance Cordless Telephone: 3 years

Printer & Scanner : 3 years

Earth Science Museum : 19 years

High volume respiratory dust samplers: 3 yrs.

Certain equipment/ HEMM : 7 years and 6 years as applicable

SDL (equipment) : 5 years

LHD (equipment) : 6 years

7.2 The residual value of all assets for depreciation purpose is considered as 5% of the original cost of the asset except those item of assets covered under para 7.3

7.3 In case of assets namely Coal tub, winding ropes, haulage ropes, stowing pipes & safety lamps the technically estimated useful life has been determined to be one

year with a nil residual value.

7.4 Depreciation on the assets added/ disposed of during the year is provided on pro—rata basis with reference to the month of addition/ disposal, except on those assets with one year useful life and nil residual value as mentioned under para 7.3, which are fully depreciated in the year of their addition. These assets are taken out from the assets after expiry of two years following the year in which these are fully depreciated.

7.5 Value of Land acquired under Coal Bearing Area (Acquisition & Development) Act, 1957 is amortized on the basis of the balance life of the project. Value of leasehold land is amortized on the basis of lease period or balance life of the project whichever is earlier.

7.6 Prospecting, Boring and Development expenditure are amortized from the year when the mine is brought under revenue in 20 years or working life of the project, whichever is less.

7.7 Cost of Software recognized as intangible asset, is amortised on straight line method over a period of legal right to use or three years, whichever is less; with a nil residual value.

8.0 Impairment of Asset:

Impairment loss is recognised wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statementofprofitandlossandcarryingamount of the asset is reduced to its recoverable amount.

Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the asset no longer exist or have decreased.


139

9.0 Foreign Currency Transactions:

9.1 Balance of foreign currency transactions is translated at the rates prevailing on the Balance Sheet date and the corresponding effect is given in the respective accounts. Transactions completed during the period are adjusted on actual basis.

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

10.0 Retirement benefits/ other employee benefits :

a) Definedcontributionsplans:

Thecompanyhasdefinedcontributionplans 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 contributea specifiedpercentage of pay roll cost to the CMPFAuthoritiestofundthebenefits.

b) Definedbenefitsplans:

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) Otheremployeebenefits:

Further liability on the Balance Sheet date of certain other employee benefits viz. benefits on account ofLTA/ LTC; Life Cover Scheme, Group Personal Accident Insurance Scheme, Sett lement Al lowance, Retired ExecutiveMedical Benefit Schemeand 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.

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.

ANNUAL REPORT 2014-15 _________________________________________________________

140

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 outflowofresourcesembodyingeconomicbenefit 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 existenceofwhichwillbeconfirmedonlyby 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 benefitwill 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.

The reported quantity of overburden as per record is considered in calculating the ratio for OBR accounting where the variance between reported quantity and measured quantity is within the lower of the two alternative permissible limits, as detailed hereunder :

Annual Quantum of OBR Ofthe Mine

Permissible limits of variance

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 Rs. 0.10 crore in each case, are treated as income /expenditure of current year.


141

NOTE – 34

ADDITIONAL NOTES ON ACCOUNTS FORMING PART OF THE BALANCE SHEET AS AT 31st MARCH, 2015 & STATEMENT OF

PROFIT & LOSS FOR THE YEAR ENDED ON THAT DATEsuch accumulated leaves using the ProjectedAccruedBenefitsMethodwith actuarial valuations being carried out at each Balance Sheet date.

(4) Terminal benefits:VRSbenefitsarerecognized in the books in the year of occurrence.

DETAILS OF GRATUITY, LEAVE ENCASHMENT AND OTHER EMPLOYEE BENEFITS:

(Rs. In Crores)

PARTICULARS GRATUITY (FUNDED)

LEAVE ENCASHMENT (UNFUNDED)

OTHER EMPLOYEE

BENEFIT (UNFUNDED)

Actuarial Valuation as on 31.03.2015

646.90 234.76 115.49

Actuarial Valuation as on 31.03.2014

618.37 214.04 109.84

Net Incremental Liability for Current period

28.53 20.72 5.65

• OtherEmployeeBenefit includesLLTC/LTA, Life Cover, Settlement Allowance & Accidental Insurance, Fatal Mine Accidental Benefit andPost-RetirementMedicalBenefit.

The following disclosures are made in accordance with AS-15 (Revised) pertaining to the Gratuity (Funded Plan):

1. BACKGROUND

Assets & Liabilities of Singrauli Division ofCentral Coalfields Ltd. (CCL) as on01.04.1986 have been transferred to NorthernCoalfieldsLtd.,pursuanttothedirectives issued by Govt. of India, Ministry of Energy, Deptt. of Coal vide letter no. 38011-1/83_CA dated 01.11.1985 by way of bifurcation from CCL.

2. C O M P L I A N C E W I T H O T H E R ACCOUNTING STANDARDS

I. AS-15 – “Accounting for Retirement Benefits”: The Company has adopted AS15(Revised)–Employeebenefitswitheffect from 1st April, 2007, as under.

(1) Short-term employee benefits: The Company recognizes the undiscounted amount of short-term employeebenefitsexpectedtobepaidin exchange for services rendered as a liability (accrued expense) after deducting any amount already paid.

(2) Post -employment benef i ts : The Company operates defined contribution plans pertaining to Coal Mines Provident Fund schemes for all employees.

(3) Other long-term employee benefits: Entitlements to annual leave and sick leave are recognized when they accrue to employees. Sick Leave can only be availed during service period while annual leave can either be availed or encashed subject to leave rules of the Company. The Company determines the liability for

ANNUAL REPORT 2014-15 _________________________________________________________

142

Table 1: Disclosure Item 120 (c)

Table Showing Changes in Present Value of Obligations :

(Rs. In Crores)

Particulars As at 31/03/2015 As at 31/03/2014P r e s e n t Va l u e o f Obligation at Beginning of year

618.37 617.95

Interest Cost 47.02 50.25Current Service Cost 34.30 31.48BenefitsPaid 61.19 53.55Actuarial gain/loss on Obligations 8.40 (27.76)

P r e s e n t Va l u e o f Obligation at end of Year 646.90 618.37

Table 2: Disclosure Item 120 (e) Table Showing Changes in Fair Value

of Plan Assets :(Rs. In Crores)

Particulars As at 31/03/2015 As at 31/03/2014Fair Value of Plan Asset at Beginning of year 645.94 635.15

Acquisition Adjustment NIL NIL

Expected Return on Plan Asset 51.68 53.99

Contributions 45.00 7.66

BenefitsPaid 61.19 53.55

Actuarial gain/ loss on Plan Asset 6.97 2.70

Fair Value of Plan Asset at End of year 688.40 645.94

Table 3: Disclosure Item 120 (f)

Table showing Funded Status (Rs. In Crores)

Particulars As at 31/03/2015 As at 31/03/2014

Present Value of Obligation at end year

646.90 618.37

Fair Value of Plan Asset at end year 688.40 645.94

Funded Status 41.51 27.57

U n r e c o g n i z e d actuarial gain/ loss at end of the year

NIL NIL

Net Asset (Liability) R e c o g n i z e d i n Balance Sheet

41.51 27.57

Table 4: Disclosure Item 120 (g)

Table showing Expense Recognized in Statement of Profit and Loss :

(Rs. In Crores)

Particulars As at 31/03/2015

As at 31/03/2014

Current Service Cost 34.30 31.48

Past Service Cost NIL NIL

Interest Cost 47.02 50.25

Expected Return on Plan Asset 51.68 53.99

Curtailment Cost NIL NIL

Settlement Cost NIL NIL

Actuarial gain/loss recognized in the year 1.41 (30.45)

Expense Recognized in Statement ofProfit/Loss 31.05 (2.71)

Table 5: Disclosure Item 120 (l) Table showing Actuarial Assumptions :

Particulars As at 31/03/2015 As at 31/03/2014Mortality Table IALM (2006-08) ULT IALM (2006-08) ULT

Superannua t ion Age 60 60

Early Retirement & Disablement

10 PER THOUSAND P.A.

10 PER THOUSAND P.A.

6 above age 45 6 above age 45

3 between 29 and 45 3 between 29 and 45

1 below age 29 1 below age 29

Discount Rate 8.50 8.50

InflationRate 6.25 6.25

Return on Asset 8.50 8.50

Remaining Working Life 12 12

FORMULA USED PROJECTED UNIT CREDIT METHOD

PROJECTED UNIT CREDIT METHOD

Table 6: Disclosure Item 120 (o) Movements in the Liability Recognized

in Balance Sheet(Rs. In Crores)


O p e n i n g N e t Liability (27.57) (17.20)

Expenses as above 31.06 (2.71)

Contributions 44.5 7.66

Closing Net Liability (41.51) (27.57)

C l o s i n g F u n d /Provision at end of Year

646.90 618.37


143

The following disclosures are made in accordance with AS-15 (Revised) pertaining to the Leave Encashment Benefit(EL/HPL)(UnfundedPlan):

Table 1: Disclosure Item 120 (c): Table Showing Changes in Present

Value of Obligations(Rs. In Crores)

Particulars As at 31/03/2015 As at 31/03/2014P r e s e n t Va l u e of Obl igat ion at Beginning of year

214.04 194.80

Interest Cost 15.47 15.10Current Serv ice Cost 22.75 30.05

BenefitsPaid 41.22 34.42Actuarial gain/loss on Obligations 23.72 8.51

Present Value of Obligation at end of Year

234.76 214.04

Table 2: Disclosure Item 120 (g): Table showing Expense Recognized in

Statement of Profit/Loss:(Rs. In Crores)

Particulars As at 31/03/2015

As at 31/03/2014

Current Service Cost 22.75 30.05Interest Cost 15.47 15.10Actuarial gain/loss recognized in the year 23.72 8.51

Expense Recogn ized in StatementofProfit/Loss 61.94 53.66

Table 3: Disclosure Item 120 (l): Table showing Actuarial Assumptions


Mortality Table IALM (2006-08) ULT.

IALM (2006-08) ULT.

Superannuation Age 60 60

Early Retirement & Disablement

10 PER THOUSAND P.A

10 PER THOUSAND P.A

6 above age 45 6 above age 45

3 between 29 and 45

3 between 29 and 45

1 below age 29 1 below age 29

Discount Rate 8.50 8.50

InflationRate 6.25 6.25

Return on Asset - -

Remaining Working Life

12 12

FORMULA USED PROJECTED UNIT CREDIT METHOD

PROJECTED UNIT CREDIT METHOD

Table 4: Disclosure Item 120 (o): Movements in the Liability Recognized

in Balance Sheet(Rs. In Crores)


Expenses as above 61.94 53.66

Closing Net Liability 61.94 53.66

C l o s i n g F u n d /Provision at end of Year

234.76 214.04

II. AS-17 – “Segment Reporting”: The Company is primarily engaged in a single segment business of production and sale of Coal. There is no other reportable primary segment identifiable in accordancewithAS-17.

III. AS-18 – “Related Party Disclosure”: In view of the exemption granted to state controlled enterprises as regards related party relationship with other state controlled enterprises and transactions with such enterprises; no disclosure under the AS-18 is required.

Directors’ Remuneration:(Rs. In Crores)

Particulars Chairman-cum-Managing Director Functional Directors Part time Non Official

Directors

31.03.2015 31.03.2014 31.03.2015 31.03.2014 31.03.2015 31.03.2014

S a l a r y & Allowance 0.10 0.07 0.61 0.86 - -

PRP - - - - - -

Prov ident Fund 0.01 0.01 0.07 0.09 - -

Perquisites - - 0.06 0.07 - -

Retirement Benefits - - 0.20 - - -

Sitting fees - - - - 0.07 0.10

ANNUAL REPORT 2014-15 _________________________________________________________

144

IV. AS-22–“AccountingforTaxesonIncome”:The details of deferred tax asset and liabilities are as under -

(Rs. In Crores)

Deferred Tax Liability As on 31.03.2015

As on 31.03.2014

Related to Fixed Assets 114.13 108.46

Related to Development Expenses 64.00 61.51

Total 178.13 169.97Deferred Tax AssetsRelated to Disallowances under I.T Act 1961

325.58 186.83

Related to Provision for current assets/loans&advances/fixedassets/others

266.02 325.15

Total 591.60 511.98Deferred tax Assets/ Liabilities (Net) 413.47 342.01

V. AS-28 – “Impairment of Assets”: In the opinion of the management, there are no external circumstances indicating impairment loss of cash generating units.

VI. AS-29 – “Provisions, Contingent Liabilities and Contingent Assets” :

The position of the various Provisions as on 31.03.2015 is given below :

(Rs. In Crores)

Provision Opening Balance

as on 01.04.2014

Addition during

the period

Write back/Adj./Pymt. During the

period

Closing Balance

as on 31.03.2015

For Proposed/Interim Dividend - 4,563.99 4,563.99 -For Corporate Dividend Tax - 912.53 912.53 -For Gratuity 618.37 89.71 61.18 646.90For Leave Encashment 214.04 61.94 41.22 234.76ForOtherEmployeeBenefits 109.84 30.39 24.74 115.49For Income Tax - 1,646.00 1,646.00 -

Wealth Tax 0.50 1.25 0.50 1.25PPLB (Ex gratia) 48.60 68.49 55.62 61.47Performance Related Pay 162.28 27.93 (4.33) 194.54Excise Duty on Closing Stock of Coal 51.44 - 11.67 39.77OBR Adjustment Account 4,428.11 977.03 - 5,405.14Mine Closure Expense 327.56 118.91 (25.96) 472.43Bad & Doubtful debts 653.68 60.11 5.98 707.81Provision for Doubtful Advances & Other current/non current assets

52.57 12.00 5.39 59.18

CWIP 1.41 2.22 0.04 3.59Surveyed off F/Assets 17.00 - 16.65 0.35Other Provisions-Fixed Assets 0.12 - - 0.12Other Provisions-CMPF & PF on LE 24.87 2.25 - 27.12Stock of Stores & Spares 43.66 3.33 0.35 46.64

Contingent Liabilities and Commitments (to the extent not provided for)

1. Estimated amount of contract remaining to be executed on Capital account and not provided for amounting to Rs. 524.49 Crores (Rs. 622.22 Crores as on 31.03.2014) and on Revenue account and not provided for amounting to Rs. 4176.86 Crores (Rs. 2153.56 Crores as on 31.03.2014)

2. Claims against the Company not acknowledged as debts as under.

(Rs. In Crores)

Particulars As on 31.03.2015

As on 31.03.2014

Sales Tax & Entry Tax 1040.06 737.92

Local Body Tax 165.27 164.81

Land Revenue 117.05 117.05

Contractual Works 64.67 72.69

Income Tax 3267.21 2022.54

Claim of UPCCL (UPSEB) 2.07 2.07

Claim of UPRVUNL for Incentives 24.05 24.05

MPGATSVA & Sales Tax thereon* 0 40.34

Excise and Service Tax, Interest and Penalty. 325.54 2.78

Others* 6.46 9.43

Total 5012.38 3193.68

* Includes SSADA Cess on sale of Coal has not been collected from a few parties after the stay obtained by the respective parties from Hon’ble High court, Allahabad. The amount not collected on this account amounts to Rs. 0.34 Crores upto 31.03.2015 (As at 31.03.2014 Rs. 2.99 Crores) has been shown as Contingent Liability.

Pending litigations as stated above would havenoimpactonthefinancialpositioninthefinancialstatementfortheyearended31.03.2015.

3. GENERAL

(A) The Company has executed collateral security by creating hypothecation charge over its present and future current assets comprising of Book Debts, Stock of Raw Materials, Semi Finished and Finished


145

Goods, Stores & Spares not relating to Plant & Machinery (Consumable Store & Spares) for a sum of Rs. 165.00 Crores (Previous year Rs. 165.00 Crores) for working capital facility drawn and to be drawn by Coal India Ltd., from the State Bank of India Consortium Banks.

(B) A sum of Rs. 9.06 crores (as on 31.03.2014 Rs. 5.11 crores) are kept in the Company’s custody as Securities by way of deposits in the form of Fixed Deposit Receipt and NationalSavingsCertificatereceivedfromthe suppliers, contractors etc.

Further, Bank Guarantees worth Rs. 402.39 crores (as on 31.03.2014 Rs. 295.52 crores) have also taken from suppliers & contractors on account of execution of works/ supply etc. which have not been accounted for.

(C) Micro and small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 have been determined based on the information available with the Company and the required disclosures are given below:

(Rs. in Crores)

As on 31.03.15

As on 31.03.14

(a) Principal amount remaining unpaid 0.40 0.49

(b) Interest due thereon - -

(c) Interest paid by the Company in terms of Section 16 of Micro, Small and Medium Enterprises Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed day during the year

- -

(d) Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specifiedunderMicro,SmallandMedium Enterprises Development Act, 2006

- -

(e) Interest accrued and remaining unpaid

- -

(f) Further Interest remaining due and payable even in the succeeding year, until such date when the interest dues as above are actually paid to the small enterprise

- -

(D) All current assets including loans and advances have realizable value in the ordinary course of business at least equal to the amount at which they are stated. Further adequate provision has also been made in respect of all known liabilities.

(E) LettersofconfirmationofAccountBalancehave been sent to all the creditors/ suppliers/ Sundry Debtors/ Advances/ Deposits on balances appeared in our books as on 31.03.2015.

(F) Basic Criteria for identifying the Current/Non Current Assets/Liabilities:

1. An asset has been classified as currentwhen it satisfies any of thefollowing criteria:

(a) It is expected to be realized in, or is intended for sale or consumption in, the company’s normal operating cycle;

(b) It is held primarily for the purpose of being traded;

(c) It is expected to be realized within twelve months after the reporting date; or

(d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle liability for at least twelve months after the reporting date.

Allotherassetshavebeenclassifiedasnon-current.

2. An operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. Where the normal operating cycle cannot be identified, it is assumed to haveduration of 12 months.

3. A liability has been classified as currentwhen it satisfies any of thefollowing criteria:

ANNUAL REPORT 2014-15 _________________________________________________________

146

a) It is expected to be settled in the company’s normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is due to be settled within twelve months a f ter the reporting date; or

d) The company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Allotherliabilitieshavebeenclassifiedasnon-current.

(G) Interest received on Income Tax Refunds are accounted for as & when refund orders are received from Income Tax Department.

(H) Roads and Culverts situated in the residential / official areas are classifiedunder“Buildings”andthoseinminingareasareclassifiedunder“MinesDevelopment”.

(I) Buildingsincludecostofelectricalfittings,water supply arrangements and sanitary fittings.

(J) Departmental expenses are not capitalized on Fixed Assets except in cases of dragline and high capacity shovel on consideration of its materiality.

(K) Gross block as well as depreciation on surveyed off assets are taken out of natural heads of fixed assets and provision fordepreciation respectively and residual value at 5% of Book Value are transferred to “Surveyed offAssets”. The residualvalue and the estimated net realizable value, whichever is lower, is separately shownin“SurveyedoffAssetunderFixedAssets (Note 10A).

(L) The difference in exchange rates on account of principle amount of loan is capitalized except where the assets surveyed–offduetodamage/firewhichare charged to revenue .The difference in exchange rates on account of payment of interest is charged to revenue.

(M) The company has no amount, which is required to be transferred to the Investors Education and Protection Fund.

(N) IntheabsenceofnotificationofrulesbytheCentral/ State Governments, the effects of the provisions of the The Mines and Minerals (Development and Regulations) Amendment Act, 2015 has not been consideredintheAccounts.”

(O) Capacity & Production:

(i) Licensed Capacity Not applicable

(ii) Installed Capacity Could not be assessed due to diversity.

(iii) Production of Coal. 724.84Lakh tonnes during year ended 31.03.2015 (Previous year 686.39 Lakh tonnes).

(iv) Production of deshaled Coal.(Included in (iii) above)

34.41 Lakh tonnes during year ended 31.03.2015 (Previous year 37.78 Lakh tonnes).

(P) Earning in Foreign Exchange:

(Rs. In Crores)

Current year Previous year

NIL NIL

(Q) Expenditure in Foreign Currency:(Rs. In Crores)

S. No.

Particulars For the year ended 31.03.2015

For the year ended 31.03.2014

i) C.I.F. Value of Imports:Raw materialsComponents, Stores & Spare Parts

92.26 126.80

Capital Goods - 1.83ii) Repayment of JBIC Loan - 322.72iii) Repayment of IBRD Loan - 355.19iv) Travelling Expenses 0.01 0.08v) Interest/Commitment/

Agency charges etc. of IBRD/JBIC

- 8.33


147

(R) Impact on Profit due to treatment of Depreciation as per Companies Act, 2013

Effective from April 1, 2014, the Company has charged depreciation based on the revised remaining useful life of the assets as per the requirement of Schedule II of Companies Act, 2013. Due to above changes,profitfortheperiodended31stMarch,2015andfixedassetsdecreasedby Rs. 51.92 Crores.

Further, based on transitional provision provided in Note 7(b) of Part C of Schedule II of Companies Act, 2013, an amount of Rs. 34.38 Crores has been adjusted

(reduced)with retained earnings/ fixedassets.

(S) Impact on Profit, Assets and liabilities due to change in Accounting Policies Point No. 2.2, 3.1, 6.2.2, 7.7 of Note 33 (Accounting Policies)

There is no impact due to change in Accounting Policies in Profit in the StatementofProfitandLossandinassetsand liabilities in the Balance Sheet.

(T) PREVIOUS PERIOD/ YEAR’S FIGURES

Previous period/ year’s figures have been re-arranged/ re-grouped wherever considered necessary to make them comparable with those of current year.

(D.K.Sharma) (P.J.Mohan Rao) (P.S.R.K.Sastry) Company Secetary General Manager(Fin) Director (Fin) & CFO DIN-07163164

(T.K.Nag) Chairman-cum-Managing Director DIN 02219348

In terms of our separate report of even date

For Prakash & Santosh Chartered Accountants Firm Regn. No. 000454C

(CA. Santosh Gupta) Partner, M. No.- 016304

Dated : 25.05.2015

Place : Varanasi.

ANNUAL REPORT 2014-15 _________________________________________________________

148

ADDENDUM TO DIRECTORS’ REPORT (UNDER SECTION 134(3) OF THE COMPANIES ACT) – INDEPENDENT AUDITORS’ REPORT

To

The Members ofNorthernCoalfieldsLimited,Singrauli –M.P.

This audit report supersedes the earlier report dated 25.05.2015 and is being revised in the new format as per the directions of the Controller & Auditor General of India vide their letter no 72/Accts/CIL and its Subsidiary/Third Phase/2014-15 dated 03.06.2015.

REPORT ON THE FINANCIAL STATEMENTS

Wehave audited the accompanying financialstatementsofNorthernCoalfieldsLimited (‘theCompany”),whichcomprisetheBalanceSheetasatMarch31,2015,andtheStatementofProfitandLoss and Cash Flow Statement for the year then endedandasummaryofsignificantaccountingpolicies and other explanatory information in which are incorporated the accounts of 6 Projects/Units Viz Kakri ,Bina & Krishnashila, Khadia, Nigahi,Jayant, Cental Workshop Jayant, audited by Branch Auditors.

MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company’s Board of Directors is responsible for the matters in section 134(5) of the Companies Act,2013(“theAct”)withrespecttothepreparationof these financial statements that give a trueand fair viewof the financial position, financialperformance and cash flows of theCompanyin accordance with the accounting principles generally accepted in India, including the AccountingStandards specified underSection133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable

and prudent; and design, implementation and maintenanceofinternalfinancialcontrol,thatwereoperating effectively for ensuring the accuracy and completeness of the accounting records, relevant tothepreparationandpresentationofthefinancialstatements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITOR’S RESPONSIBILITY

Our responsibility is to express an opinion on thesefinancialstatementsbasedonouraudit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards onAuditing specified under section143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhetherthefinancialstatementsarefreefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks ofmaterialmisstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditor considersinternalfinancialcontrolrelevanttotheCompany’spreparationofthefinancialstatementsthat give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company’s Directors, as well as evaluating the overall presentation of the financialstatements.


149

We believe that the audit evidence we have obtainedissufficientandappropriatetoprovidea basis for our audit opinion on the financialstatements.

OPINION

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2015;

(b) inthecaseoftheStatementofProfitand Loss, of the profit for the yearended on that date; and

(c) in the case of the Cash Flow Statement,of thecashflowsfor theyear ended on that date.

EMPHASIS OF MATTERS

We draw attention to the following matters in the Notestothefinancialstatements:

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150

AUDITOR’S REPORT MANAGEMENT’S REPLYI. NON CURRENT ASSETS (FIXED ASSETS)

During the year a provision equivalent to depreciation of Rs. 2.18 Crores has been made in respect of assets (Capital WIP) which could not be put to use for more than 3 years from the date of purchase/acquisition/construction. We are unable to comment on the adequacy or otherwise of such provision (Refer foot note to Note No.10 B).

Assets (Capital WIP), which could not be put to use for more than 3 years from the date of purchase /acquisition /construction, a provision, equivalent to depreciation from the fourth year and onwards has been made (Refer footnote of Note - 10B of Balance Sheet).

II. CURRENT AND NON CURRENT ASSETS (OTHER THAN FIXED ASSETS)

A) Loans & Advances and Other Current and Non Current Assets: Provision of Rs. 59.18 crores have been made for Loans & Advances and Other Current Assets as on 31st March, 2015. We are unable to comment upon the adequacy or otherwise of such provision. (Refer Note No. 2 (vi) of Additional Notes on Accounts - Note 34).

100% provision have been made against doubtful loans and advances, receivables and other current assets as on 31st March, 2015.

(Refer Foot Note of Note No. 12, 18, 19 of Balance Sheet)

B). Inventories:

a) Provision of Rs. 25.02Crores has been made in respect of stores and spare parts, unmoved for 5 years upto 31.03.2015. We are unable to comment on the adequacy or otherwise of such provision (Refer foot note to Note No. 15).

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 (as per Accounting Policy Note- 33 Para no. 6.2.4).

b) Provision of Rs.20.08 Crores has been made in respect of obsolete/damaged/unserviceable stores and spare parts upto 31.03.2015. We are unable to comment on the adequacy or otherwise of such provision (Refer foot note to Note No.15).

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 (As per Accounting Policy Note- 33 Para no. 6.2.4).

C). Trade Receivables:

a). Provision of Rs. 54.13 Crores has beens made during the year under consideration against disputed debts with NTPC of Rs. 84.58 Crores , due for a period exceeding six months on account of GCV analysis/ grade slippage (Refer foot note to Note No.16).

This is a statement of fact, calls for no comments separtely


151

III. LIABILITIES & PROVISIONS:

Provision of Rs. 449.43 Crores has been made for Mine Closure Expenses pursuant to Guidelines issued by Ministry of Coal up to 31.03.2015. We are unable to comment on adequacy or otherwise of such provision.(Refer foot note to Note No. 5).

In accordance with guidelines issued by Ministry of Coal on 27th August, 2009 & subsequent guidelines, Mine Closure Plan has been prepared by CMPDIL and approved by NCL Board for the Projects Jhingurda, Block B, Bina, Krishanshilla, Jayant, Khadia, Amlohri, Dudhichua, Kakri and Nigahi Project . Based on the approved Mine Closure Plan, provision has been made in the accounts for Rs. 449.43 crores upto 31.03.2015. (Refer foot note of Note - 5 of Balance Sheet)

IV.PROFIT & LOSS STATEMENT :

We have relied upon technical data submitted by the management in respect of Advance Stripping, Coal Exposed, Over Burden Removal (OBR), Current and Average Ratio etc. in the matter of OBR accounting including adjustments for substantial variation between Standard Ratio and Current Ratio of OBR. Since OBR calculation is a technical assessment, we are unable to express our opinion on adequacy or correctness of the same (Refer Note. No. 5).

Overburden Removal (OBR)Adjustment are accounted for as per the accounnting policy as disclosed under Note 33- Accounting Policy 16.0

V-Change in Accounting Policies

During the year under consideration certain Accounting Policies of the Company as mentioned in S.No. 3(S) of Additional note No. 34 have been changed, however due to change in those policies there would be no impact in profit in theStatement of Profit & Loss andassets and liabilities in the Balance Sheet.

This is a statement of fact, calls for no comments separtely

VI. GENERAL

Balances in Trade Receivables/creditors/suppliers/advances/deposits are subject to confirmation/reconciliation and subsequent adjustments, if any. However management has sent letters to sundry creditors/debtors but in few cases confirmationshavebeen receivedfrom them.

Ouropinionisnotmodifiedinrespectofthesematters.

LettersofconfirmationofBalancehavebeensent to creditors/ suppliers/ Sundry Debtors on balances appeared in our books.

ANNUAL REPORT 2014-15 _________________________________________________________

152

Other Matters

We did not audit the financial statements/information of 6 projects/units included in the financial statements of the Company. The financial statements/information of these branches have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in

respect of these branches, is based solely on the report of such branch auditors.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report ) Order, 2015 issued by the Central Government of India in terms of sub-section (11) of Sec 143 of the act, we give in the Annexure-Statementonthemattersspecifiedin the paragraphs 3 and 4 of the order

2. As required by section 143(3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from the projects/units not visited by us.

c) The reports on the accounts of the projects/units of the Company audited under Section 143(8) of the Act by branch auditors have been sent to us and have been properly dealt by us in preparing this report.


153

d) the Balance Sheet and the Statement of Profit and Loss, andCash FlowStatement dealt with by this Report are in agreement with the books of account and the returns received from the projects/units not visited by us.

e) In our opinion, the aforesaid financialstatements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

f) On the basis of written representations received from the directors as on 31st March 2015, taken on record by the Board of Directors, none of the directors isdisqualifiedason31stMarch,2015,from being appointed as a director in terms of Section 164(2) of the Act.

g) With respect to the other matters included in the Auditor’s Report and to our best of our information and according to the explanations given to us :

i) The Company has disclosed in S.No.2 VI of note no.34 that pending litigations as mentioned therein, would not have any material impact onitsfinancialposition.

ii) The company did not have any long-term contracts including derivative contracts.

iii. As per information given to us by the Company, there were no amounts which were required to be transferred to the Investors Education and Protection Fund by the Company.

Thanking you

Yours FaithfullyFOR PRAKASH & SANTOSH

Chartered Accountants

Sd/-(CA Santosh Gupta)


ICAI Firm Reg. No.000454CPlace: Kanpur

Date: 3rd June, 2015

(T. K. Nag)Chairman-cum-Managing Director

DIN- 02219348

ANNUAL REPORT 2014-15 _________________________________________________________

154

ANNEXURE ‘A’ TO AUDITORS’ REPORTREFERRED TO IN PARAGRAPH ‘REPORT ON LEGAL AND

REGULATORY REqUIREMENTS’ OF OUR REPORT OF EVEN DATE IN RESPECT OF NORTHERN COALFIELDS LIMITED AS AT 31ST MARCH, 2015

AUDITOR’S REPORT MANAGEMENT’S REPLY(i)(a) The company has maintained proper

records showing full particulars including quantitative details and situation of Fixed Assets in general. However, in the cases offurnitureandfixtures,lightfittingsandofficeequipments, the samehavenotbeenspecificallylinkedupwiththeFixedAssets Register.

This is a statement of fact, calls for no comments separately.

(b) As explained to us, the physical verificationof all itemsof fixedassetsexcept overhead lines and underground cables have been carried out by the firmsofCharteredAccountantsduringthe year. In our opinion, the frequency of verifications of these assets is reasonable in relation to the size and operations of the company. No material discrepancies have been noticed by the managementonsuchverification.


(ii) (a). The management has, at regular interval, conducted the physical verification ofstockofcoal.Thephysicalverificationofstock of coal has also been conducted at the end of the year by a team appointed byCoalIndiaLtd..Physicalverificationofstores and spares has been conducted duringtheyearbythefirmsofCharteredAccountants appointed for the purpose. In our opinion, the frequency of such physicalverificationsisreasonable.


(b). Theproceduresofphysicalverificationofinventory followed by the management are in general reasonable and adequate in relation to the size of the company and nature of its business.



155

(c). The Company is maintaining proper records of Inventory including stores and spare items. No material discrepancy was noticed on physical verification of closing stock of coal except theft of stores items worth Rs.56.44 lacs for which FIR lodged on 27.11.2014. The discrepancies noticed on physical verificationof stores and spares havebeen adjusted and provided for in the accounts pending further scrutiny/enquiry.


(iii)(a). As informed to us, the Company has not granted any secured or unsecured loans to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act 2013.


(b). As the Company has not granted any loan and as such clause (b) is not applicable to the Company.


(iv). In our opinion the Internal Control System with regard to purchase of inventoryandfixedassetsandforsaleof coal needs to be strengthened to make it commensurate with the size of the Company and nature of its business in view of the following:


a). Time lag in adjustment of advances after receipt of material, non-linking of advances with corresponding liability, thereby resulting in accumulation of unadjusted advances and liabilities.

As a policy and practice, on receipt of materials DRR are prepared and advances are adjusted/ liabilities are created wherever necessary.

b). Nonobtainingofperiodicconfirmation/reconciliation of outstanding balances appearing under Current and Non Current Assets and Current and Non-Current Liabilities.

LettersofconfirmationofOutstandingBalancehave been sent to the creditors/ suppliers/ Sundry Debtors appeared in our books.

c). Internal Control on purchases made from/through the Holding Company on behalf of the Company could not be commented upon by us in the absence of any detailed information of the same.

The Purchases are made by the Holding Company on behalf of the company as per the purchases manual after observing the laid down policies/ guidelines/circulars etc. issued by the CIL and government.

ANNUAL REPORT 2014-15 _________________________________________________________

156

d). Non follow up of advances to suppliers.As per our test checks and as reported by the Branch Auditors, we have not observed any continuing failure to correct major weaknesses in internal control system during the course of our audit.

No Comments.

(v). The company has not accepted deposit from Public and directives issued by Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed there under are not applicable.


(vi). The company has maintained cost records as specified by theCentralGovernment under sub-section (l) of section 148 of the Companies Act, 2013. On review of books of account, we noticed that these have been made and maintained, however, we have not made a detailed examination of such records with a view to determine whether they are accurate or complete.


(vii). (a). According to the information and explanation given to us, the Company is generally regular in depositing undisputed statutory dues including Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom duty, Excise Duty, VAT and Cess and other statutory dues as applicable to the Company with the appropriate authorities. As informed to us, the provision of Employees State Insurance Act is not applicable to the Company. Further as per information and explanations given to us, no undisputed amount payable in respect of the aforesaid dues were outstanding as at 31st March, 2015 for a period of more than six months from the date they became payable.


b) According to information and explanations given to us, the following dues in respect of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom duty, Excise duty, VAT and Cess have not been deposited on account of dispute:-



157

(Rs. in Crores)

Name of the Statute

Nature of the Dues

Amount Period to which the amount Relates

Forum where dispute is pending

Finance Act, 1994

Interest and Pen-alty on Service Tax

60.41 01.01.2005 to 29.02.2008

CESTAT, New Delhi & Com-missioner (Appeal)

Central Excise Act, 1994

Excise Duty and Penalty

265.13 2011-12 to 2014-15

CESTAT, New Delhi & Com-missioner (Appeal)

Central Sales Tax Act/MP VAT Act/UP VAT Act/UP

MP Entry Tax Act

Income Tax Act 1961

Total

Cental Sales Tax/State VAT

846.60

193.46

2337.05

910.99

19.17

4632.81

For Various Years

For Various YearsFor

A.Y. 2009-10 & 20012-13A.Y. 2011-12A.Y. 2002-03 to 2004-05, 1988, 89, 1990-91

At various forums.

At Various Forums

CIT (Appeals) jabalpurITAT, JabalpurHon’ble High Court

c). As per information and explanations given to us, no amount is required to be transferred to Investor’s Education and Protection Fund in accordance with the provisions of Companies Act, 2013 and rules framed thereunder.


(viii). The Company has no accumulated losses as at 31st March, 2015 and has not incurred any cashlossesduringthefinancialyearcoveredby our audit and in the immediately preceding financialyear.


(ix). As per the information and explanations given to us, the Company has not defaulted in repayment of debt dues to the financial institutions or banks or debenture holders.


ANNUAL REPORT 2014-15 _________________________________________________________

158

(x). The Company has not given any guarantee forloanstakenbyothersfrombanksorfinancialinstitutions


(xi). The company has not taken any term loan during the year.


(xii). Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year.


Thanking you

Yours FaithfullyFOR PRAKASH & SANTOSH

Chartered Accountants

Sd/-(CA Santosh Gupta)


ICAI Firm Reg. No.000454CPlace: Kanpur

Date: 3rd June, 2015


DIN- 02219348


159

ANNEXURE TO AUDITORS’ REPORT ANNEXURE B

DIRECTIONS UNDER SECTION 143(5) OF THE COMPANIES ACT, 2013IN RESPECT OF NORTHERN COALFIELDS LIMITED,

SINGRAULI FOR THE YEAR ENDED 31ST MARCH 2015

Directions Issued Statutory Auditor’s Commernts Management’s Reply1. If the Company has been selected for disinvestment, a complete status report in terms of valuation of Assets (including intangible assets and land) and liabilities (included Committed & General Reserves) may be examined including the mode and present stage of disinvestment process.

This clause not applicable to the Company as it has not been selected for disinvestment.


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 amounts involved.

There has been no case of waiver, write-off of debts, loans etc.


3. Whether proper records are maintained for inventories lying with third parties and assets received as gift from Government or other authorities.

There is no inventory lying with third parties and no assets have been received as gift from Government 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 the all legal cases (foreign and local) may be given.

The details of pending legal cases in various courts and also arbitration proceeding before the arbitrator are annexed as Annexure-I , based as per information and explaination given by the management and have been test examined by us. In most of the cases pleadings have been exchanged betweenpartiesandpendingforfinalhearing.

The expenditure in defending the cases is monitored by the Legal Department of the Company and system prevailing seems to be effective.


FOR PRAKASH & SANTOSHChartered Accountants

Sd/-

(CA Santosh Gupta)Partner

Membership No. 016304ICAI Firm Reg. No.000454C

Place: KanpurDate: 3rd June, 2015


DIN- 02219348

ANNUAL REPORT 2014-15 _________________________________________________________

160

ANNEXURE TO AUDITORS’ REPORT ANNEXURE B

SUB-DIRECTION FOR AUDIT OF COMPANIES ENGAGED IN COAL MININGIN RESPECT OF NORTHERN COALFIELDS LIMITED

FOR THE YEAR ENDED 31ST MARCH 2015

Directions Issued Statutory Auditor's Commernts Management's Reply1. 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.

WiththeintroductionofGrossCalorificvalue(GCV)system of grading of coal w.e.f. 1st January 2012, supply of coal to NTPC was billed at declared grade of coal corresponding to the GCV range of the coal supplied. With effect from October 2012 NTPC released payment based on GCV determined unilaterally at the receiving end, contrary to the provision of Fuel Supply Agreement which stipulates that the GCV is to be determined at the loading end by joint collection, preparation, testing and analysis of the coal being supplied.As a result an amount of Rs. 669.89 Crore (Basic bill value Rs.643.88 crore and incentive for 2012-13 Rs.26.01 crore) was unilaterally withheld by NTPC for the period October, 2012 to September, 2013 as on 31.03.2015 from the bills of the Company in respect of supply of coal, which was against the provision of FSA. The issue was taken up with the Ministry of Power through the Ministry of Coal for resolution which resulted in incorporation of a provision for third party sample collection, preparation, testing and analysis at the point of loading in the FSA. Such third party sampling/analysis was implemented from October 2013.For an appropriate resolution of the issue, the Govt. of India advised for extrapolation of the result of the third party sampling/analysis during October – December 2013 to the supplies during the past period from October 2012 to September 2013. On the basis of this settlement formula an amount of Rs. 669.89 crore (Basic bill value Rs. 643.88 crore and incentive for 2012-13 Rs. 26.01 crore) has been provided in the Accounts upto 31.03.2015.


It may also be confirmedwhether the annual accounts have been prepared/maintained as per the New Companies Act 2013.

Weconfirmthatannualaccountshavebeenpreparedas per the New Companies Act, 2013.

2. Valuation of inventories with compliance to Accounting Standard-2 in entirety.

Inventories have been valued as per AS-2. This is a statement of fact, calls for no comments separately.


161

a) Whether stock measurement was done keeping in view the contour 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?

Stock measurement has been done keeping in view the contour map and PV of stock measurement reports are accompanied by contour map. We have been explained that new heap wherever created has got the approval of competent authority.


b) Whether there is age wise analysis of non-vendable stock of coal? Is there any substantial variance (beyond +/- 5%) found on measurement of non-vendable stock of coal? If yes, has it been properly recorded with reasons? Whether valuation of such stock was as per the laid down accounting practice by the competent authority.

Not applicable because non-vendable stock is NIL This is a statement of fact, calls for no comments separately.

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.

For new contracts having provision for procurement of HSD at bulk rate, escalation/ descalation is provided/ recovered on bulk rate. However, other older contracts are being governed as per NIT provisions of retail rate.


d) Whether provisions in Consolidated Financial Statement (CFS) under the New Companies Act 2013 are made with a view to representing true and fair view of financial conditionand operating result of the business entity.

Not applicable. This is a statement of fact, calls for no comments separately.

e) Special emphasis should be given to satisfy that the CFS has been prepared in accordance with the AS 21. 23 and 27.

Not applicable. This is a statement of fact, calls for no comments separately.

3. It may be verified that thecapital expenditure incurred on assets not belonging to the company has been properly identified and accounted foras per established accounting principles.

Yes, no capital expenditure incurred during the year 2014-15 on assets not belonging to the company.


ANNUAL REPORT 2014-15 _________________________________________________________

162

4.Special emphasis on compliance with respect to observations / comments raised by Statutory Auditors/Govt. Auditors in 2013-14 and also in the Review Report on Half Yearly Accounts for the year 2014-15.

Necessary compliance has been done. This is a statement of fact, calls for no comments separately.

5 It may be verified that thethird party confirmation ondebtors, creditors, bank balances, account receivable, account payable and loans and advances have been done in full? If not, party-wise including percentage of such unconfirmedamountmayalsobe reported. Similarly, whether separate Escrow Fund Accounts have been opened/maintained or earmarked in the Bank in CIL and its subsidiaries, for the specificpurpose.

Letter of confirmation in respect of S/debtors, S/Creditors have been sent half yearly and in few cases confirmation from them were received.Wherever there is any difference, the matter taken up forreconciliation.Partywisequantumofuncofimed/unrecon-ciled balances are not made available by the company.Escrow A/c with UBI, Morwa branch for mine closure plan has been opened for all the projects.


FOR PRAKASH & SANTOSHChartered Accountants

Sd/-

(CA Santosh Gupta)Partner

Membership No. 016304ICAI Firm Reg. No.000454C

Place: KanpurDate: 3rd June, 2015


DIN- 02219348


163

ANNEXURE – IAs on 31.03.2015

SI. No.

Court’s Name Number of Cases

01. Supreme Court 30

02. High Court of MP at Jabalpur (Including IR & R&R) 306

03. High Court of UP at Allahabad (Including IR & R&R) 101

04. High Court Delhi 07

05. High Court Calcutta 45

06. Other’s High Court (Rajasthan, Lucknow bench, Ernakulam, Indore bench, Jharkhand, C.G., Bombay & Gujarat.

20

07. (i) Dist. Court of Singrauli (MP)(ii) Dist. Court of Sonebhadra (UP)

(iii) Other’s Dist. Court/ADJ Court, Chandauli, Varanasi, Jamshedpur, Rewa, Am-bikapur, Ahmadabad, Allahabad, Deosar, State Forum Lucknow & ALC (c) Satna.

(iv) Other Court (Dist. Court Sidhi & Collector of Stamp Duty.)

(v) NGT, Bhopal

8839

13

06

01

08. Tribunal Under (A&D) Act. 1957 & Various Court relating to R & R Cases 378

09. CGIT 31

10. Arbitration Proceeding before Arbitrators 21

Total 1086

ANNUAL REPORT 2014-15 _________________________________________________________

164

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF THE COMPANIES ACT, 2013

ON THE FINANCIAL STATEMENTS OF NORTHERN COALFIELDS LTD. FOR THE YEAR ENDED 31 MARCH 2015

ThepreparationoffinancialstatementsofNorthernCoalfieldsLimitedfortheyearended31stMarch2015inaccordancewiththefinancialreportingframeworkprescribedundertheCompaniesAct,2013is the responsibility of the management of the company. The statutory auditor/auditors appointed by the Comptroller and Auditor General of India under Section 139(5) of the Act is/are responsible for expressingopiniononthefinancialstatementsundersection143oftheActbasedonindependentaudit in accordance with the standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 03.06.2015.

I, on behalf of the Comptroller and Auditor General of India have conducted a supplementary audit undersection143(6)(a)oftheActofthefinancialstatementsofNorthernCoalfieldsLimitedfortheyear ended 31st March 2015. This supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records.

Onthebasisofmyauditnothingsignificanthascometomyknowledgewhichwouldgiverisetoanycomment upon or supplement to Statutory Auditors report.

For and on behalf of the Comptroller & Auditor General of India

Sd/-

Place : Kolkata ( Yashodhara Ray Chaudhuri )Dated: 09/06/2015 Pr. Director of Commercial Audit & Ex-officioMember,Auditboard-II Kolkata

Documents

Contentsnclcil.in/finance/Annual Report and Account 14-15English.pdfCash flow statement for the year ended 31st March, 2015 97 13. Statement of Standalone results for the Year ended