Final Annual Report 2018 19 PDF
Final Annual Report 2018 19 PDF
Final Annual Report 2018 19 PDF
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
1.1 VISION
To emerge as a National player in the Primary Energy Sector, committed to provide energy security to the Country, by attaining
environmentally and Socially Sustainable Growth , through best practices from Mine to Market.
MISSION
The Mission of Central Coalfields Limited (CCL) is to produce and market the planned quantity of Coal and Coal products efficiently
and economically in Eco-Friendly manner, with due regard to Safety, Conservation and Quality.
1.2 OBJECTIVES
1. To optimize generation of internal resources by improving productivity of resources, prevent wastage and to mobilize
adequate external resources to meet investment need.
2. To maintain high standards of Safety and strive for an accident free mining of Coal.
4. To undertake detailed exploration and plan for new Projects to meet the future Coal demand.
6. To Develop technical know-how and organizational capability of Coal mining as well as Coal beneficiation and undertake,
wherever necessary, applied research and development work related to Scientific exploration for greater extraction of Coal.
7. To improve the quality of life of employees and to discharge the corporate obligations to Society at large and the community
around the Coalfields in particular.
8. To provide adequate number of skilled manpower to run the operations and impart technical and managerial training for up
gradation of skill.
10. To enhance the CSR activities specifically in the field of Health, Sanitation and Drinking Water in the Surrounding villages.
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____________________________________________________CENTRAL COALFIELDS LIMITED
CONTENTS
Sl. No. Particulars Page No.
1. Management 1
3. Notice – AGM 4
4. Operational Statistics 8
5. Financial Position 14
6. Director’s Report 18
8. Profile of Directors 75
16. Standalone Profit & Loss Account for the Year Ended 31st March, 2019 123
19. Additional Notes to the Standalone Financial Statement (Note 38) 185
20. Auditors’ Report & Management Reply (including Appendix 1) on Standalone Financial Statement 214
23. Consolidated Profit & Loss Account for the Year Ended 31st March, 2019 238
26. Additional Notes to the Consolidated Financial Statement (Note 38) 296
28. Auditors’ Report & Management Reply (including Appendix 1) on Consolidated Financial Statement 324
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Board of Directors
____________________________________________________CENTRAL COALFIELDS LIMITED
Directors
Shri Bharat Bhushan Goyal Shri Subhau Kashyap Smt. Jajula Gowri Shri Shiv Arora Shri Harbans Singh
Ex-Additional Chief Adviser (Cost) M. B. B. S. Advocate Chartered Accountant Ex–DG Apex, GSI
Permanent Invitees
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Shri Ravi Prakash
Company Secretary
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
PRESENT MANAGEMENT
As on 05th August, 2019
(i.e. on the date of the Sixty Third Annual General Meeting)
CHAIRMAN-CUM-MANAGING DIRECTOR
Shri Gopal Singh
FUNCTIONAL DIRECTORS
Shri Niranjan Kumar Agarwal : Director (Finance)
Shri V. K. Srivastava : Director (Tech./Oprn.)
Shri R.S. Mahapatro : Director (Personnel)
Shri Bhola Singh : Director (Tech./P&P)
PERMANENT INVITEES
Shri Salil Kumar Jha : Chief Operation Manager, EC Railway
COMPANY SECRETARY
Shri Ravi Prakash
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
CHAIRMAN-CUM-MANAGING DIRECTOR
Shri Gopal Singh : Chairman-cum-Managing Director (w.e.f. 01.03.2012)
FUNCTIONAL DIRECTORS
Shri D. K. Ghosh : Director (Finance) (w.e.f. 06.07.2013 to 30.04.2019)
Shri V.K. Srivastava : Director (Tech.) (w.e.f. 15.05.2018)
Shri Bhola Singh : Director (Tech.) (From 15.01.2019)
Shri R.S. Mahapatro : Director (Personnel) (w.e.f. 08.06.2015)
Shri Awadh Kishor Mishra : Director (Tech.) (w.e.f. 01.10.2016 to 30.11.2018)
PERMANENT INVITEES
Shri S. K. Barnwal : Secretary (Mines & Geology) (w.e.f. 16.11.2016)
Govt. of Jharkhand
Shri Salil Kumar Jha : Chief Operation Manager, EC Railway (w.e.f. 24.05.2016)
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
BANKERS
Allahabad Bank Andhra Bank
Bank of Baroda Bank of India
Bank of Maharashtra Canara Bank
Corporation Bank Dena Bank
Indian Overseas Bank State Bank of India
Oriental Bank of Commerce Punjab National Bank
Syndicate Bank UCO Bank
Union Bank of India United Bank of India
STATUTORY AUDITORS
M/s. K.C. Tak & Co.
New Ananthpur,
Ranchi, Jharkhand
BRANCH AUDITORS
M/s. V. Rohatgi & Co. M/s N.K.D. & Co.
1st Floor, Sarjana Building, Main Road, Ranchi , Jharkhand Ranchi – 834001, Jharkhand
M/s. L. K. Saraf & Co. M/s Sanjay Bajoria & Associates
Ranchi – 834001, Jharkhand Ranchi – 834001, Jharkhand
COST AUDITORS
M/s SC Mohanty & Associates
Plot No. 370/186/2157
Shakti Bhawan, Beside Toyota Showroom
AT – Patia, PO – KIIT, Bhubaneswar – 751024, Odisha
SECRETARIAL AUDITORS
M/s Kant Sanat & Associates
1st Floor, Raghunandan Sahu Bhawan, Beside Durian Furniture, Argora-Kadru Road, Opp. Ashok Nagar, Ranchi-834002
REGISTERED OFFICE
Darbhanga House
Ranchi 834 029
(Jharkhand)
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTICE
Secy. CS/3(4)/AGM–63/2019/622 Dated: — 03.08.2019
Notice is hereby given that the 63rd Annual General Meeting of the members of Central Coalfields Limited will be held on Monday the day of 5th
August, 2019 at 11.30 AM at the registered office of the Company, Darbhanga House, Ranchi-834029, Jharkhand to transact the following business:
A. ORDINARY BUSINESS :
B. SPECIAL BUSINESS :
5. To ratify the re-appointment of Shri Bharat Bhushan Goyal (DIN: 07254856) as an Independent Director, based on the order dtd.
17.11.2018 of MoC, for a second term w.e.f. 17.11.2018 for a period of one year or until further orders whichever is earlier.
To consider, and if thought, fit, to pass the following resolutions as special resolution:
"RESOLVED THAT pursuant to provisions of sections 149, 152 and any other applicable provisions of the Companies Act, 2013
(hereinafter referred to as the 'Act') including the rules made thereunder read with Schedule IV to the Act and the applicable
provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (including any statutory modification(s)
or re-enactment(s) thereof for the time being in force), the re-appointment of Shri Bharat Bhushan Goyal (DIN: 07254856) as
Independent Director, based on the order dtd. 17.11.2018 of MoC, for a second term w.e.f. 17.11.2018 for a period of one year or
until further orders, whichever is earlier, be and is hereby ratified."
"RESOLVED FURTHER THAT pursuant to the provisions of sections 149, 197 and other applicable provisions of the Act and the
rules made thereunder, Shri Bharat Bhushan Goyal be paid such sitting fees for attending the meetings of the Board or Committees
thereof, as may be approved by CIL from time to time and subject to such limits prescribed or as may be prescribed from time to
time.
6. To ratify the re-appointment of Shri Ashok Gupta (DIN: 03266416) as an Independent Director, based on the order dtd. 17.11.2018
of MoC, for a second term w.e.f. 17.11.2018 for a period of one year or until further orders whichever is earlier.
To consider, and if thought, fit, to pass the following resolutions as special resolution:
"RESOLVED THAT pursuant to provisions of sections 149, 152 and any other applicable provisions of the Companies Act, 2013
(hereinafter referred to as the 'Act') including the rules made thereunder read with Schedule IV to the Act and the applicable
provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (including any statutory modification(s)
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
or re-enactment(s) thereof for the time being in force), the re-appointment of Shri Ashok Gupta (DIN: 03266416) as Independent
Director, based on the order dtd. 17.11.2018 of MoC, for a second term w.e.f. 17.11.2018 for a period of one year or until further
orders, whichever is earlier, be and is hereby ratified."
"RESOLVED FURTHER THAT pursuant to the provisions of sections 149, 197 and other applicable provisions of the Act and the
rules made thereunder, Shri Ashok Gupta be paid such sitting fees for attending the meetings of the Board or Committees thereof,
as may be approved by CIL from time to time and subject to such limits prescribed or as may be prescribed from time to time.
Note :
1. The Shareholders are requested to give their consent in writing or by electronic mode for calling the Annual General Meeting at a
shorter notice pursuant to the provisions of the Section 101(1) of the Companies Act, 2013.
2. A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote instead of himself and the
proxy need not be a member of the company.
3. Corporate Member(s) are requested to send to the Registered Office of the Company, a duly certified copy of the Board Resolution,
pursuant to Section 113 of the Companies Act, 2013, authorizing their representative to attend and vote at the Annual General
Meeting.
4. Relevant Statement pursuant to Section 102(1) of the Companies Act, 2013, in respect of Special Business, as set out above is
also annexed hereto.
5. All documents referred to in the notices and annexure thereto along with other mandatory registers/documents are open for
inspection at the registered office of the Company on all working days during business hours, prior to the date of 63rd Annual
General Meeting.
6. Pursuant to the provisions 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.
To,
(a) The Coal India Limited, (Through Chairman, CIL), Kolkata
(b) Shri Anil Kumar Jha, Chairman, CIL, Kolkata
(c) Shri R. P. Srivastava, Director (P&IR), CIL, Kolkata
(d) Shri Gopal Singh, CMD,CCL, Ranchi
(e) Shri Subhau Kashyap, Chairman, Audit Committee, CCL
(f) M/s. K.C. Tak & Co., Ranchi, Statutory Auditors
(g) M/s S.C. Mohanty & Associates, Bhubaneswar, Principal Cost Auditor
(h) M/s. Kant Sanat & Associates, Ranchi, Secretarial Auditor
(i) All Directors
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
ANNEXURE TO THE NOTICE FOR ANNUAL GENERAL MEETING OF CENTRAL COALFIELDS LIMITED
STATEMENT PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013 AND REGULATION 36(3) OF THE SEBI
(LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015
Item nos. 5 and 6 relating to ratification of re-appointment of Independent Directors:
Ministry of Coal, Govt. of India vide letter no.21/33/2018-BA (vi) dated 17.11.2018 conveyed the approval of the President to re-appoint
Shri Bharat Bhushan Goyal (DIN: 07254856) and Shri Ashok Gupta (DIN: 03266416), as Independent Directors/ Non-official part-time
Directors on the Board of CCL for a period of one year w.e.f. 17.11.2018 or until further orders whichever is earlier.
In accordance with section 149(10) and (11) of the Act, an independent director shall be eligible for re-appointment on passing of a
special resolution by the Company and disclosure of such appointment in the Board's report. The aforementioned directors fulfill the
requirements of an independent director as laid down under section 149(6) of the Act and regulation 16 of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015. Therefore, the re-appointment of the Independent Directors on Board of the Company
by the Ministry of Coal is required to be ratified by the shareholders by passing special resolution at a general meeting and disclosure
of the same in the Board's Report.
The said directors have consented to act as director and have confirmed that they are not disqualified from being appointed as director(s)
of the Company and have submitted a declaration of independence thereon.
None of the Directors or Key Managerial Personnel of the Company or their relatives is directly or indirectly concerned or interested,
financially or otherwise, in these resolutions. The Board has noted the aforesaid re-appointments for ratification of the same by shareholders
in general meeting by passing special resolutions.
1. BHARAT BHUSHAN GOYAL (DIN: 07254856)
Brief Resume:
Shri Bharat Bhushan Goyal (64 years) is a former civil servant, who superannuated on June 30, 2015 as Addl. Chief Adviser, Ministry of
Finance, Government of India and Head of the Indian Cost Accounts Service. He graduated in Commerce, and did Masters in Economics.
He is Fellow Member of the Institute of Cost Accountants of India and Life Member of AIMA & DMA. He had specialized training from
Strathclyde University, UK, International Law Institute, USA, and National Law School of India, Bangalore. He has nearly 41 years of
professional experience in the Government of India and in Corporate Sector. In Government of India, he had worked in different capacities
in several Ministries, notable being Finance, Corporate Affairs, Industry, Chemicals & Fertilizers etc.
He had been Chairman/Member of large number of high-level national & international bodies/ committees; and Board member of large
number of companies, institutions and autonomous organizations wherein he made valuable contributions.
He has presented large number of papers / talks at many national & international forums on wide variety of contemporary issues. He
is closely associated as visiting aculty/expert with various leading B-schools, professional bodies, academic institutions, research
organisations, and the corporate world.
Nature of expertise in specific functional areas: He possess professional expertise in wide areas such as public policy, financial
management, corporate valuation, disinvestment, cost benefit analysis, business restructuring, effective regulatory landscape, cost
management, product pricing, risk based audit, corporate social responsibility, etc.
His directorships/committee positions are as under:
Major directorships:
1. Central Coalfields Limited.
2. Ramagudam Fertilizer & Chemicals Limited
Committee chairmanships:
1. CSR Committee of CCL Board
2. HR Committee of CCL Board
Committee memberships:
1. Audit Committee of CCL Board
2. Risk Management Committee of CCL Board.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
2. ASHOK GUPTA (DIN: 07254856)
Brief Resume:
Shri Ashok Gupta (62 years) is a commerce graduate with Honours from Shri Ram College of Commerce in 1977. Shri Gupta cleared
CA Examination in 1980 with 4thRank in all India Merit List, and became a Fellow Member of The Institute of Chartered Accountants of
India. CA Ashok Gupta has about 35 years of experience in the field of Taxation, Audit, Accounting, Finance, Banking, Law Education and
strategic planning and Business Management. Shri Ashok Gupta started his career with Practicing Profession of Chartered Accountancy
as Partner in Ashok Praveen & Co. Chartered Accountants from 1981totill date. He has been Statutory Auditor of different Banks and
Insurance Companies. Shri Gupta was Non- Official Director of Indian Bank & Vijaya Bank as Govt. Nominee. Shri Gupta also served
as Special Director (BIFR Nominee) in CIMMCO Ltd. and HMT Machine Tools Ltd.
His directorship position in CCL is as under:
Shri Ashok Gupta resigned from the post of Non- official part time Director of CCL on 29.01.2019. The resignation letter of Shri Ashok
Gupta, Non-official Part-time Director was placed before CCL Board in its 469th Board meeting held on 1st & 2nd February’2019 wherein
CCL Board accepted the resignation of Shri Ashok Gupta with effect from 29.01.2019. Further, Ministry of Coal, Govt. of India vide letter
no.21/33/2018-BA dated 10.04.2019 conveyed the approval of the competent authority for acceptance of the resignation of Shri Ashok
Gupta from the post of Non-official Part-time Director on the Board of Central Coalfields limited w.e.f. 29.01.2019.
Sd/-
(Ravi Prakash)
Company Secretary
Venue of the AGM : Registered Office.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
OPERATIONAL STATISTICS
Year Ending 31st March 2019 2018 2017 2016 2015 2014 2013 2012
1. (a) Production of Raw Coal :
(Million Tonnes)
Underground 0.315 0.405 0.74 0.85 0.84 0.96 1.02 1.09
Opencast 68.407 63.000 66.31 60.47 54.81 49.06 47.04 46.91
TOTAL 68.722 63.405 67.05 61.32 55.65 50.02 48.06 48.00
(b) Overburden Removal : 100.490 95.622 102.63 106.78 97.38 59.02 63.31 65.68
(Million Cub.Mts.)
3.
Average Manpower 39919 41467 42919 44346 45849 47406 49076 51156
4. Productivity :
(A) Average per Man per 1721.54 1529.05 1562.25 1382.76 1213.81 1055.14 979.30 938.32
Year (Tonnes)
(B) Output per manshift (OMS) :
(i)
Underground (Tonnes) 0.214 0.194 0.29 0.32 0.29 0.33 0.33 0.32
(ii)
Opencast (Tonnes) 9.740 9.372 9.81 8.91 7.56 6.26 6.09 5.79
(iii)
Overall (Tonnes) 8.093 7.195 7.23 6.51 5.46 4.64 4.42 4.19
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
FINANCIAL POSITION
As per Revised Schedule VI for the Year 2012 to 2014 and
As per Schedule III of Companies Act, 2013 for the Year for 2015
(` in Crore)
For the Year Ending 31st March 2015 2014 2013 2012
(A) What is owned
Gross Fixed Assets 5459.57 5116.32 4805.64 4778.18
Less : Depreciation & Impairment 3705.82 3502.93 3407.82 3290.34
(1) Net Fixed Assets 1753.75 1613.39 1397.82 1487.84
(2) Capital Work -in -Progress 583.38 509.71 321.96 259.15
(3) Deferred Tax Assets 620.47 566.31 579.37 502.51
(4) Non Current Investments 0.00 9.43 18.85 28.27
(5) Long Term Loans & Advances 111.58 70.75 208.66 171.16
(6) Other Non- Current Assets 810.05 520.05 0.00 0.00
(7) Current Assets:
(i) (a)Inventory of coal,coke etc. 1178.54 1067.28 1103.23 1379.68
(b)Inventory of stores & Spares etc 166.87 147.18 149.67 146.87
(c)Other Inventories 5.73 4.87 5.74 4.95
(ii) Trade Receivables (Net) 1465.57 1875.72 1533.87 1078.66
(iii) Cash & Cash Equivalents. 3947.62 2816.37 3560.44 3986.20
(iv) Current Investments 403.79 605.10 109.42 9.42
(v) Short Term Loans & Advances 827.17 729.48 577.04 576.65
(vi) Other Current Assets 526.01 434.77 439.54 370.68
Total Current Assets (7) 8521.30 7680.77 7478.95 7553.11
(8) Less : Current Liabilities & Provisions 4181.50 4250.67 4017.45 4351.98
Trade Payables 108.46 91.32 78.99 74.39
Other Current Liabilities. 2662.20 2774.77 2362.29 2468.81
Short Term Provisions 1410.84 1384.58 1576.17 1808.78
Short Term Borrowings 0.00 0.00 0.00 0.00
Net Current Assets (7 – 8) 4339.80 3430.10 3461.50 3201.13
TOTAL (A) 8219.03 6719.74 5988.16 5650.06
(B) What is owed
(1) Long Term Borrowing 0.00 0.00 69.92 87.54
(2) Other Long Term Liabilties 34.34 32.37 17.09 3.26
(3) Long Term Provisions 2372.31 2184.42 1893.07 2121.88
TOTAL (B) 2406.65 2216.79 1980.08 2212.68
Net Worth (A-B) 5812.38 4502.95 4008.08 3437.38
Represented by
1 Equity Capital 940.00 940.00 940.00 940.00
2 Reserves 1863.20 1589.17 1307.04 1012.96
3 Profit/Loss(+)/(-) (Surplus) 3009.18 1973.78 1761.04 1484.42
Net Worth (1 to 3) 5812.38 4502.95 4008.08 3437.38
Capital Employed 6093.55 5043.49 4859.32 4688.97
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
For the Year Ending 31st March 2015 2014 2013 2012
(A) Earned From
Gross Sales 11781.43 10493.37 10580.10 9005.34
Less : Levies (Excise Duty & Other Levies) 2306.44 1937.36 2023.86 1473.22
1 Net Sales 9474.99 8556.01 8556.24 7532.12
2 Other Income (a to d) 597.54 624.94 681.64 565.28
(a) Subsidy for Sand Stowing & Protective Works 0.35 1.74 2.01 2.53
(b) Recovery of Transportation & Loading Cost 252.98 228.56 199.47 203.89
(c) Interest on Bank Deposits 251.47 300.47 359.81 293.31
(c) Other non- operating Income 92.74 94.17 120.35 65.55
TOTAL (A) 10072.53 9180.95 9237.88 8097.40
(B) Paid to \Provided for
1 Employee Benefit Expenses 3897.19 3509.20 3522.47 3492.50
(a) Salary, Wages, Allowances, Bonus etc 2777.98 2669.31 2454.02 2244.21
(b) Contribution to PF & Other Funds. 366.87 340.44 383.30 245.80
(c) Gratuity 101.53 67.46 177.06 481.61
(d) Leave Encashment 168.36 23.97 102.43 167.69
(e) Others 482.45 408.02 405.66 353.19
2 Acretion/Decretion in Stock (112.07 ) 36.74 275.71 (86.50 )
3 Welfare Expenses* 0.00 76.73 63.31 24.56
4 Corporate Social Responsibility Expenses 48.87 0.00 0.00 0.00
5 Cost of Materials Consumed 837.64 733.93 625.73 577.27
6 Power & Fuel 278.19 266.58 358.82 265.45
7 Contractors (Including Repairs) 1166.96 724.06 669.13 638.37
8 Finance Cost 1.08 7.98 7.55 3.58
9 Depreciation/Amortisation/Impairment 312.55 254.10 235.21 220.80
10 Provisions & Write-off 170.98 182.66 279.36 183.37
11 Overburden Removal Adjustment (44.77 ) 241.66 (43.53 ) 188.59
12 Other Expenses 742.46 632.71 584.23 659.66
13 Prior Period Adjustment 33.11 (11.27 ) (23.67 ) (40.49 )
TOTAL (B) 7332.19 6655.08 6554.32 6127.16
Profit/Loss for the Year (A-B) 2740.34 2525.87 2683.56 1970.24
Tax on Profit 969.73 854.11 797.95 650.69
Dividend ( Interim & Proposed) 354.74 1003.05 1131.37 791.74
Tax on Dividend 71.85 173.84 183.54 128.44
Transfer To General Reserve 274.03 252.59 268.36 197.02
Transfer To Reserve for CSR 0.00 27.26 24.00 23.76
Transfer To Reserve for SD 0.00 2.28 1.72 0.00
B/F from Previous Year 1973.78 1761.04 1484.42 1305.83
Adjustment in Retained Earnings** 34.59 - - -
Cumulative Profit/Loss transferred to Balance Sheet. 3009.18 1973.78 1761.04 1484.42
Cumulative P&L (Before transfer to Reserves) 3283.21 2255.91 2055.12 1705.20
* For the compliance of Schedule III of Companies Act 2013, CSR Expenditure is shown seprately under Note 25 in the Financial
statement and other Welfare Expenses, according to their nature is regrouped under Note 24 i.e Employee Benefit Expenses
and Note- 31 i.e Other Expenses.
Prior to Financial Year 2014-15 CSR Expenses were grouped under the head Welfare Expenses.
** Due to enactment of Schedule II of Companies Act, 2013 w.e.f 01.04.2014 in respect of depreciation, retained earning has been
reduced by ` 34.59 crores in F.Y. 2014-15.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
For the Year Ending 31st March 2015 2014 2013 2012
(A) Related To Assets & Liabilities
(1) (i) No. of Equity Shares of ` 1000 each. 9400000 9400000 9400000 9400000
(ii) Shareholders' Fund
(a) Equity 940.00 940.00 940.00 940.00
(b) Reserves 1863.20 1589.17 1307.04 1012.96
(c) Accumulated Profit/Loss (+)/(-)(Surplus) 3009.18 1973.78 1761.04 1484.42
Net Worth 5812.38 4502.95 4008.08 3437.38
(2) (a) Long Term Borrowings incl. current maturities. 0.00 0.00 86.90 104.32
(b) Long Term Borrowings excl. current maturities. 0.00 0.00 69.92 87.54
(3) Capital Employed 6093.55 5043.49 4859.32 4688.97
(4) (i) Net Fixed Assets 1753.75 1613.39 1397.82 1487.84
(ii) Current Assets 8521.30 7680.77 7478.95 7553.11
(iii) Current Liabilities 4181.50 4250.67 4017.45 4351.98
(5) (a) Trade Receivables (Net) 1465.57 1875.72 1533.87 1078.66
(b) Cash & Cash Equivalents. 3947.62 2816.37 3560.44 3986.20
(6) Closing Stock of:
(a) Stores & Spares (Net) 166.87 147.18 149.67 146.87
(b) Coal & Cokes etc. (Net) 1178.54 1067.28 1103.23 1379.68
(c) Other Inventories (Net) 5.73 4.87 5.74 4.95
(7) Average Stock Of Stores & Spares (Net) 157.03 148.43 148.27 145.22
(B) Related To Profit/Loss
(1) (a) Gross Margin 3053.97 2786.55 2924.86 2192.89
(b) Gross Profit 2741.42 2532.45 2689.65 1972.09
(c) Profit Before Tax 2740.34 2525.87 2683.56 1970.24
(d) Net Profit (After Tax) 1770.61 1671.76 1885.61 1319.55
(e) Net Profit (After Tax & Dividend) 1344.02 494.87 570.70 399.37
(2) (a) Gross Sales 11781.43 10493.37 10580.10 9005.34
(b) Net Sales (after levies) 9474.99 8556.01 8556.24 7532.12
(c) Sale Value of Production 9587.06 8519.27 8280.53 7618.62
(3) Cost of Goods Sold (Net Sales-Profit) 6734.65 6030.14 5872.68 5561.88
(4) (a) Total Expenditure 7332.19 6655.08 6554.32 6127.16
(b) Employee Benefit Expenses 3897.19 3509.20 3522.47 3492.50
(c) Cost of Materials Consumed 837.64 733.93 625.73 577.27
(d) Power & Fuel 278.19 266.58 358.82 265.45
(e) Finance Cost & Depreciation 313.63 262.08 242.76 224.38
(5) Avg.consump.of Stores & spares (Gross) per month 69.80 61.16 52.14 48.11
(6) (a) Avg.manpower employed during the year 45849 47406 49076 51156
(7) (a) Value Added 8471.30 7519.02 7296.51 6776.45
(b) Value Added per employee (` '000) 1847.67 1586.09 1486.78 1324.66
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
DIRECTORS’ REPORT
To
PRODUCTIVITY (OMS-TE)
The Shareholders,
Central Coalfields Limited
Members,
I, on behalf of the Board of Directors have great pleasure in
presenting to you the 63rdAnnual Report of your Company along
OMS–TE
with the Audited Financial Statements for the year ended 31st
March, 2019. The Audited Financial Statements, report of the
Statutory Auditors and Management’s reply thereon as well as
comments of the Comptroller & Auditor General of India on the
audited Ac are annexed to this report.
1. PRODUCTION
The Production and Productivity figures achieved by your Company
during the year 2018-19 as compared to the actuals of 2017-18 2. WASHERY PERFORMANCE
is as under :
Your Company is in the business of washing of Coking as well
2018-19 2017-18 % Growth
Particulars over last as Non-Coking Coal. There are four Coking Coal Washeries and
Target Actual Actual year three Washeries for washing / beneficiation of Non-Coking Coal.
PRODUCTION
❖ CCL Washeries have contributed `253.909 Crore towards
From OC (MT) 68.200 68.407 63.000 8.582
overall profit in the year 2018-19.
From UG (MT) 0.500 0.315 0.405 -22.337
TOTAL (MT) 68.700 68.722 63.405 8.385 Achievement for 2018-19
OBR (MM ) 102.000 100.490 95.622 5.090 ❖ Raw coal consumption in non–coking coal washeries has
3
Washed Coal (Coking) (MT) 1.281 0.805 1.115 -27.854 increased to 67. 69 lakh tonne in 2018-19 as against 62. 83
Washed Coal (Non–Coking) (MT) 6.842 6.631 6.076 9.130 lakh tonne in 2017-18.
PRODUCTIVITY (OMS-Te) ❖ Washed coal production in non-coking washeries has
OC 9.050 9.740 9.372 increased to 66.31 lakh tonne in 2018-19 as against 60.76
lakh tonne in 2017-18.
UG 0.320 0.214 0.194
❖ Yield of washed coal in respect of Non coking coal washeries
OVERALL 7.550 8.091 7.195
has increased to 97. 96 % in FY 2018-19 as against 96.71
% last year.
PRODUCTION of coal in MT ❖ Yield % of washed coal power in coking coal washeries
has enhanced to 45.69% in 2018-19 as against 39. 09% in
2017-18.
❖ Coking coal washeries have dispatched 8.073 lakh tonnes
washed coking coal to steel plants against a production of
8.047 lakh tonnes.
❖ Non coking coal washeries have despatched 66. 369 lakh
tonnes washed coal to power plants against the production
of 66. 311 lakh tonne in FY 2018-19.
❖ Coking coal washeries have despatched 11.556 lakh tonne
washed coal to power plants against production of 11.077
lakh tonne in FY 2018-19.
❖ Kargali Washery has been re-started in April2018 as non-
coking washery in 2018-19 which was stopped from 2016-17
to 2017-18.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
COKING COAL WASHERIES 3. OFFTAKE
❖ The Production Figure of Washed Medium Coking Coal The total Offtake of Raw Coal during 2018-19 stand at 68.446
(WMCC) during 2018-19 stands at 8.047 lakh tonne as Million Tones. The Mode-wise details of off-take compared to that
against 11.153 lakh tonne production in 2017-18 . The of last year is as under:
Washed medium coking coal production during April 2018 to (Figs. in Million Tonnes)
July 2018 was less due to no demand by Potential customers. Mode 2018-19 2017-18 Growth over last year
❖ Coking Coal Washeries have contributed a loss of Rail 30.544 32.740 -6.71%
`122.828 Cr during FY 2018-19 due to change in price.
Road 28.709 25.362 13.20%
❖ Washery wise production and yield for 2018-19 vis-à-vis the
Feed to Washery 9.193 9.408 -2.28%
last year is given below:
Colliery Consumption 0.0003 0.0003 -12.00%
Production (lakh tonne) Yield Percentage
Washery Total Offtake 68.446 67.5100 1.39%
2018-19 2017-18 2018-19 2017-18
During the year 2018-19, CCL has recorded a growth of 13.2 % in
Kathara 0.681 0.451 20.411 12.98 coal offtake through Road mode. CCL achieved a growth of 1.39
% in offtake over last year.
Sawang 0.885 0.901 23.464 19.47
The total dispatch during 2018-19 stood at 68.677 Million Tones.
Rajrappa 3.314 5.668 38.897 44.295
Sector-wise dispatches of coal and its different by-products during
Kedla 3.167 4.133 36.755 39.934 the year 2018-19 are given below:
(Fig in million tonnes)
Total 8.047 11.153 33.192 35.693
❖ Washed Non-Coking Coal production during 2018-19 stands Power 45.372 0.000 0.464 6.543 0.000 0.000 52.379
at 66.311 lakh tonne. Steel (Incl.
0.004 0.807 0.691 0.098 0.000 0.000 1.600
❖ Non-Coking Coal Washeries have contributed a profit of Steel CPP)
`376.737 Crore during 2018-19. Fertilizer 0.087 0.000 0.000 0.000 0.000 0.000 0.087
❖ Washery wise production and yield for 2018-19 vis-à-vis the Others* 13.789 0.000 0.000 0.000 0.224 0.597 14.611
last year is given below :
Total 59.252 0.807 1.156 6.641 0.224 0.597 68.677
Washery Production (lakh tonne) Yield percentage
2018-19 2017-18 2018-19 2017-18 * Others include Spot e-auction, Exclusive e-Auction, erstwhile
Piparwar 64.308 59.897 99.413 98.03 non-core consumers, Sponge Iron, CPP and State Agencies.
Gidi 0.881 0.866 50.807 50.0
Kargali 1.122 (stopped) 88.393 (stopped) SECTOR WISE DESPATCH OF COAL
Total 66. 311 60.763 97. 961 96.708 (In MT)
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
During the year 2018-19, the Gross Sales Turnover of the Company
was Rs. 16343.92 Crores and the Sales Realisation was Rs. 8. COAL MARKETING
17870.10 Crores (including advance received from customers).
The Sector wise position of Debtors (Gross) as on 31st Mar’2019 8.1 Demand Satisfaction as per AAP
is given below : (Fig. in Million Tonnes)
(Figs. in `Crore)
2018 – 19 2017 – 18
As on As on % Growth
Sector Demand % Demand %
31.03.2019 31.03.2018 Sector Dispatch Dispatch over last
(AAP) Satisfaction (AAP) Satisfaction
year
Power 1338.09 923.07 2018-19 2018-19 2018-19 2017-18 2017-18 2017-18
Total 2178.62 1966.48 Fertilizer 0.350 0.087 25% 0.250 0.148 59.20 –41.2%
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
New 120 T In-motion Rail Weighbridges have been installed in The following major departmental installations were commissioned
F.Y. 2018-19 at 02 locations –Kuju New Siding & Kathara (W). for the successful operation of the project.
(a) Supply and installation of 08 nos. of 1000mm belt
13 nos. In- motion Rail WBs are under installation process.
conveyor system from face to surface.
Technical specifications of Road WB has been upgraded from 60 T
(b) 33 KV new power supply system including drawing
( platform size 9m x 4.5 m) to 100 T (platform size 16m x 3.5 m) with
of 02 nos. of 33 KV Feeder.
05 year Comprehensive Annual Maintenance Contract (CAMC)
for future procurement purpose in CCL in order to accommodate (c) Installation of PV-200 equivalent ventilation fan (01
bigger vehicles & better post installation services. for operation & 01 standby).
36 nos. of 100T Road WB with above upgraded features are under (d) For facilitating man & material transportation trackless
procurement process. system as per latest state of Art Global Technology
was adopted and the procurement of FSV (Free
14 nos. of 140T RDSO compliant Rail WBs with 06 yrs CAMC are steered vehicle)-02 nos. for man riding purpose &
under procurement process. MUV - 10Te (Multi utility vehicle) - 01 no. for material
transportation purpose is on the pipeline.
A Standard Operating Procedure in respect of Operation &
Maintenance of Road & Rail Weighbridges has been implemented Project supervision, Underground coal transportation, Underground
in CCL for improvement in the working of weighbridges and to pumping, Ventilation, Power supply etc. responsibility lies with
reduce breakdown time. CCL.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
10.3 Reduction in Power Consumption 4. Testing of 165 samples of Engine oil & Transmission oil
collected from different projects were performed by IOC,
There has been a 3.25% reduction in energy consumption in the HPCL and BPCL and their reports forwarded to concerned
year 2018-19 in comparison of 2017-18. During 2017-18 Power Projects for needful .
consumption of CCL stood at 735.27 Million Kwh while in 2018-19
power consumption by CCL has been 711.33 Million Kwh.
5. Three nos Particle counter instruments and TAN,TBN,
Moisture content determining instruments have been
11. CONSUMER SATISFACTION procured for analysis of different types of used oil.
Commissioning of these instruments is in progress at three
Consumer-satisfaction is the prime objective of CCL. Effective
RRShops, namely Tapin North, Kathara and Dakra of CCL
measures have been taken to ensure supply of 100% crushed and
to detect impurities and ascertain the condition of lubricating
good quality coal to all consumers. CCL is supplying (-100mm)
coal to consumers as per the directive of MOC. oils for further needful to prevent premature failure of different
sub assemblies of HEMM.
CCL has a full-fledged Quality Management Department with well
trained officials at head quarter and each area. There are well 6. A book on Annual Energy Audit for the year 2017-18 was
equipped laboratories and adequate infrastructures for sampling compiled and published in the month of Nov’18 and circulated
and analysis at head quarter as well as at all areas. Presently, 11 to all concerned .
nos. of automatic bomb calorimeters are in operation at different
laboratories for determination of GCV. Central laboratory at head
7. Automation of Diesel Dispensing machines (CPs) at Urimari
quarter and area laboratory, Piparwar have been accredited by
& Ashok Project of CCL has been completed and is in 2nd
NABL. As per directive of MOC, CIMFR has been engaged as 3rd
Party agency for sampling & analysis of coal despatches to power stage, automation of diesel dispensing unit, installation of
houses under FSA. Quality Council of India has been engaged ATG at (i) Rajrappa, (ii)Parej East, (iii) Tapin North, (iv),Karma
as 3rd Party agency for Sampling & Analysis of Coal despatches (v) piparwar (vi) KD Heasalong (vii) Purnadih is in progress.
under the scheme of forward auction (Power), Linkage Auction
(Non-Power) and Spot Auction etc. There is an effective consumer 8. As an IT initiative, installation of CCTV at all DDUs has been
grievance redressal system of consumer complaints. All complaints incorporated in the existing Standard Operating Procedures
related to Quality are promptly attended. (SOP) to be followed at Diesel Dispensing Units in respect
of receipt ,issue ,storage and consumption of diesel.The
12. Performance / achievement of CCMC revised SOP has been circulated to all areas of CCL for its
Department in 2018-19 compliance.
1. Benchmarking of specific diesel consumption of 31 Opencast
projects of CCL in collaboration with CMPDIL for FY 13. Electronics and Telecommunication
2018-19 has been done & their recommendations have
been circulated for implementation to all concerned for fuel In the age of Digital India, E&T applications have in essence
conservations. become ENT (Eyes Nose Throat) of any organizational body.
Many revolutionizing projects have been undertaken by the
2. Regular and strict monitoring of diesel consumption at CCL E&T department which facilitate daily communication, bring our
projects has curtailed total diesel consumption and specific widely distributed areas closer and make the coal dispatch and
diesel consumption considerably. Consumption of HSD in transportation transparent. Some of the major tasks undertaken
HEMMs for FY 2018-19 is 51811 KL whereas in FY 2017-18 are as under :
it was 54268 KL. Thus there is reduction of 2457 KL of Diesel
in overall consumption in the year 2018-19 with respect to 13.1 GPS/GPRS based Vehicle Tracking System and
FY 2017-18. Moreover, SDC achieved during FY2018-19 is RFID with CCTV based Weighing Control and
1.03ltr/cum and there is an improvement of 3.73% compared Monitoring System across CCL Command areas
with CMPDIL benchmark of 1.07 ltr/cum .
Safe mines are productive mines and CCL has taken an
initiative to make its mines safe, productive and effective with the
3. Total power consumption for FY 2018-19 is 711.33 Mkwh,
help of GPS/ GPRS based Vehicle Tracking System and RFID with
whereas for FY 2017-18 it was 735.27 Mkwh which shows
CCTV based Weighing Control and Monitoring System. Ministry
a decrease of 23.94 Mkwh - an improvement of 3.25%. of Coal has also directed for setting up a monitoring system for
22
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
movement of coal within the mines and from mines to the railway 2Mbps redundant MPLS connected through OFC or RF link. CCL
siding or washeries through GPS(Global positioning system) in (HQ) has 10 Mbps redundant MPLS & 10 Mbps ILL link. WAN
all mines of CIL. point is provided at 176 locations and all WAN point of Area office
are having minimum 20 points of LAN ports. Also all project office
CIL is continuously emphasizing on production using eco-friendly are provided with 5 Points of LAN ports. All future development of
techniques with due regard to safety of employee, conservation any data based network will be on the communication Network of
of environment and quality of coal produce. To meet all the the WAN/LAN platform.
requirements CCL has installed integrated systems through M/s
Orange Business Services India Technology Pvt. Ltd., Mumbai with The system is already installed and is operational since Sep 2015.
total cost of 36.31 Crore. The work order consists of tracking of This will ensure online data exchange between various location
Departmental Trucks, Dumpers & Pvt. Tippers, RFID with CCTV of all Area Offices, Central and Regional Store, Project Offices,
based weighing control and monitoring system for 112 Road Central Hospital, Mine Rescue Station etc. on real time basis. This
Weighbridges, computerization of 52 Project Office and control backbone connectivity will be used by GPS/GPRS based Vehicle
rooms in 11 Area Office for monitoring on 24x7 basis with one Tracking System and RFID with CCTV based Weighing Control
central control room in CCL (HQ),Ranchi. The project is on rental and Monitoring System across CCL for safety, efficiency and to
basis for 5years. The project has been successfully installed in stop pilferage. The system provides monitoring of vehicles on a
two phases : real time basis from all Project offices, Area office and CCL, HQ.
Total
CCL is the only subsidiary of Coal India Limited to impart training Percentage of
S.No. Manpower in Total No of apprentice engaged
engagement
of Mining Sirdarship and ITI Training in the trades of Electrician, March’2019
Fitter and Welder to 15 nos. of sons of CIL SFVRS- 2015 optees NATS (ITI) : 705
and 39 sons of CIL SFVRS- 2015 optees respectively. These NATS (Diploma) : 402
trainees have successfully completed their training in the trades 1 43,789 2.5%
----------------------
as mentioned above during the year 2018. Total= 1107
CCL has taken an initiative of developing skill development center l HRD Department has spent an amount of Rs. 9,11,30,522/-
at CETI, Barkakana for its Project Affected Persons and others as on training and seminar for conducting above referred
a complementary effort to the Skill Development Mission of the
programme against a budget of Rs. 11,66,00,000/- under
nation. The Company has taken up an initiative to develop skill for
Project Affected Persons of CCL command areas, making them training and seminar head during 2018-19
employable under CSR schemes. At present they are trained in
Electrician and Welder trade. It is of six months duration comprising
16.2 FUTURE INITIATIVES
of theoretical as well as on the job training at Central Repair Shop, v Engagement of Apprentices in different trades ie 5% of total
Barkakana. At the end of training period, their assessment are done
work force including Contractual Workers
by Skill Council for Mining Sector, Delhi and successful candidates
are awarded pass Certificate by M/S. National Skill Development v Up gradation of infrastructures at GVTCs
Corporation. The above training is being provided through Multi v Augmentation of infrastructure of HRD department CCL
Skill Development Center, Barkakana, which is recognized training
provider and is affiliated with SCMS/NSDC New Delhi. Ranchi
v Establishing GVTC at M&A and Rajhara area
During the current financial year, each of the 49 particepants from
v Posting of trainers at HRD HQ and BTTI
Batch-5 which commenced on 01/01/2018 and concluded on
30/06/2018, were declared successful and awarded certificate by v Training of Electrician trade with regard to safety in mines.
NSDC. Another Batch-6 consisting of 39 participants commenced
on 10/12/2018 and will be continue up to 06/06/2019. 17. WELFARE
Various Basic Training Programs for HEMMS operators are also Central Coalfields Limited is a Miniratna Company. CCL has always
conducted for Dumper, Dozer, Shovel, Drill, Pay loader, Motor focused on holistic development which includes both production
Grader Operators. Nominated employees are initially taken and welfare.
through theoretical classes at CETI, Barkakana and thereafter on
the job training followed by examination to assess their suitability Central Coalfields Limited has adopted a multi-disciplinary
to operate HEMMs in future. approach for welfare, incorporating health, family welfare,
education, drinking water and sanitation. The Mission of Central
Apart from the above training for PAPs and Basic Operators course Coalfields Limited (CCL) is to produce and market the planned
various refresher programme are organized for our own employees
quantity of Coal and Coal products efficiently and economically
wherein they are given exposure on various technological
advancement/ safety features by OEM/ OES including in house in Eco-Friendly manner, with due regard to Safety, Conservation
faculties of CETI/ CRS, Barkakana. and Quality.
28
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
17.1 Main Thrust Areas: 3 Education: Specific emphasis is placed by CCL on providing
quality educational facilities to the wards of its employees.
1. Water Supply: The water supply situation has undergone
enormous improvement since the time of Nationalization. A. Grant sanctioned for Schools including Privately
Concerted efforts have been directed towards providing Managed Schools for 2018-19:
filtered, clear & potable water for usage. At present there Company Amount (upto March 2019)
are 10 Water Treatment Plant, 78 Pressure Filter Plants, 182 CCL: Ranchi DAV Public Schools ------ Rs. 20.29 Crores
Deep Bore Holes. In addition, Six (6) no. of Water Treatment
Privately Managed Schools ------ Rs. 01.23 Crores
Plants are also proposed at Argada, B&K, Kathara and
Hazaribagh Area along with one Sewage Treatment Plants Kendriya Vidyalaya School ------ Rs. 02.81 Crores
to be constructed in Govindpur Phase-II, Kathara Area. B. Scholarship: CCL awards scholarships to meritorious
2. Medical Facilities: Healthcare Delivery system in CCL is students under following schemes, the details are as
carried out through 3-tier system. At Primary level this is under:
delivered through dispensaries. For secondary and tertiary
care, it is being delivered through Area/ Regional Hospitals CIL Scholarship:
and Central Hospitals. Sl. Year
Details
There are following 04 nos. of Central Hospitals: No. 2017-18 2018-19
l Central Hospital, Gandhinagar. 1 Expenditure Rs. 13.52 Lakh Rs. 7.65 Lakh
l Central Hospital, Naisarai. 2 No. of Wards 628 343
(B) Value Added Service at Central Hospital : 4. Inter Area Cultural Meet Kathara
5. Inter Kabaddi Kuju
(i) Central Hospital Gandhinagar is conducting Super
6. Inter Area Volleyball Argada
Specialist Clinic in Cardiology on monthly basis. Consultant
from Max Hospital, New Delhi Dr. Rajeev Rathi and from 7. Inter Area Hockey Hazaribagh
Yashoda Hospital, Hyderabad Dr. P.K. Kuchlakanti are 8. Inter Area Athletic Meet NK
consultant cardiologist. 9. Inter Area Cricket Piparwar
(ii) Central Hospital Gandhinagar is having 17 Bedded Critica 10. CIL Inter Company Badminton Ranchi
Care Unit. Details as follows: 11. Summer Badminton Tournament (Boys & Girls) Ranchi
12. Inter School Invitational Football Ranchi
a. ICU : 06 beds
13 CCL Kayakalap Girls Football Ranchi
b. CCU : 05 beds
14. Inter Village Football Argada
c. Dialysis : 03 beds 15. Coaching Camp for CCL Athletic Team B-Sayal
d. Recovery : 03 beds 16. Coaching Camp for CCL Badminton Team. Ranchi
17. Coaching Camp for CCL Table Tennis Team Ranchi
(C) Details of Medical Camps in CCL with beneficiaries 18. Coaching Camp for CCL Football Team Argada
(2018-2019): 19. Coaching Camp for CCL Cricket Ranchi
No. of Medical Camps : 645 20 Coaching Camp for CCL Volleyball Team. Ranchi
No. of Beneficiaries : 101857 21. Coaching Camp for CCL Hockey Team Ranchi
29
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
17.2 Way Forward for the year 2019-20 6. Inter Village Football Tournament.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
31
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
5. Awareness among Chaiwalas, Paanwalas : Distribution
of Steel Containers, Placards declaring their shop
plastic free, T-Shirts & Paper cups to CHAI WALAs of
Darbhanga House Campus for creating an awareness
on saying NO TO PLASTIC and initiating a drive to
make Darbhanga House campus; No Plastic Zone.
Jharkhand State Sports Promotion Society (JSSPS) was (a) CCL Ke LAL & CCL Ki LAADLI
formulated to run the Sports Academy with a joint investment Meritorious 10th pass male and female students from across the
from CCL CSR Fund and State Government of Jharkhand. As state of Jharkhand especially from the command area villages are
on date, around 348 sports cadets in the Age group 8-12 years selected under this scheme and prepared to appear in different
are undergoing sports training at Sports Academy, Hotwar along engineering entrance examination for getting into IITs, NITs and
with formal schooling, boarding and lodging facilities with an other reputed state and national level engineering colleges.
ultimate aim to bring laurels to the country in Olympics 2024. The
sports cadets are being trained in 9 sports discipline i.e. Athletics, Students are given free school education for 11th and 12th in
Wrestling, Archery, Football, Taekwondo, Boxing, Shooting, one of the best schools of Jharkhand along with free residential
Weightlifting and cycling. facility, fooding and lodging at CCL KE LAL & CCL KI LAADLI
Hostel. In the year 2017-18 the classroom teaching at Ranchi
Till date these cadets of Sports Academy have received 154 Gold, was extended to three remote locations of CCL and BCCL through
89 Silver and 77 Bronze medals in competitions held at state Video Conferencing classes.
and national levels.
12 students (8 boys and 4 girls) have successfully qualified in
For the selection of a fresh batch of 100 sports cadets a mega JEE Mains 2019 and more than 70% students scored more
talent hunt : “Khel Mahakumbh” has been organized from January than 80% marks in 12th standard. The highest marks scored is
2019 onwards. It is being done to select the young sports talents 92.4%.
from all 24 districts of Jharkhand.
An amount of Rs. 527.67 lakhs has been spent on running the
Sports Academy under CSR in the FY 2018-19.
Other activities include organizing football Matches, Training
of Sports Person and Distribution of Sports Kits etc with a total
expenditure of Rs.530.01 lakhs for sports promotion.
CCL under its CSR has started a school “Kayakalp Public School”
with 30 students from poor and downtrodden section of the society
whose parents are engaged in menial jobs like begging, ragpicking
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
etc. These students are given full facility of study materials, 18.6 Drinking Water
uniforms, books to healthy breakfast and lunch in the school.
During the year 2018-19, following works have been excuted and
The students are taught yoga and etiquettes and are moulded
an expenditure of Rs.342.95 lakhs incurred for provision of drinking
in a manner that they become self dependent and a good and
water to PAPs, inhabitants, villagers etc. of CCL command areas.
responsible citizen.
Expen
Activities Nos.
(in Rs lakhs)
34
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
35
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
(` in Crore) 23. CONTRIBUTION TO EXCHEQUER
Sl. 2017-18
Particulars 2018-19 The contribution to the State/Central Exchequer during the year
No. (Restated)
2018-19 vis-à-vis 2017-18 is detailed below:
i. Revenue from operations 12179.90 11550.71
(` in Crore)
ii. Other Income 313.03 508.96
Sl.
iii. Total Revenue 12492.93 12059.67 Particulars 2018-19 2017-18
No.
iv. Expenses excluding depreciation, interest 9381.20 10149.85 i) Royalty on Coal 1500.05 1500.54
v. Profit before depreciation, interest 3111.73 1909.82 ii) NMET (Central Fund) 27.68 29.92
vi Depreciation/Amortization /Impairment 344.28 351.52 iii) DMF ( State Fund) 338.78 424.66
vii. Interest 75.25 170.81 iv) Sales Tax / VAT 2.16 94.70
viii. Profit before Tax 2692.20 1387.49 v) Stowing Excise Duty - 30.74
ix. Tax Expense 987.73 579.71 vi) Income Tax 1224.77 966.87
x. Net Profit after Tax 1704.47 807.78 vii) Dividend Tax 61.06 108.12
xi. Other comprehensive income (30.27) 155.59 viii) Service Tax 0.52 81.53
xii Tax on Other Comprehensive Income (10.58) 53.85 ix) Clean Energy Cess - 810.87
xiii. Profit attributable to Owners of the Company 1704.47 807.78 x) Central Excise on Coal 2.55 114.27
xi) Goods & Service Tax 3319.52 2389.34
The Board of Directors of your Company has paid an Interim xii) Others 34.93 15.41
Dividend of Rs. 297.04 Crs. (Previous year- Rs. 531.10 Crs.).
TOTAL 6512.02 6566.97
Total dividend in 2018-19 is Rs 297.04 Crs. (dividend per equity
share is Rs. 316, on 94,00,000 equity shares of Rs. 1000.00 each 24. CAPITAL STRUCTURE
– previous year Rs 565).
During the year under report, the Authorized Share Capital and the
Paid-up Share Capital of your Company remained unchanged viz.
22. CAPITAL EXPENDITURE Rs. 1100.00 Cr. and Rs. 940.00 Cr. respectively. The net worth of
the Company as on 31st March 2019 is Rs. 5,142.72Cr. compared
The capital expenditure during the year 2018-19 stands at to Rs. 3816.04 Cr.(Re-stated) as on 31st March 2018.
Rs. 1377.27 Crore as compared to Rs. 898.86 Crore for the
previous year. The head-wise details of capital expenditure during 24.1. BORROWINGS
the year 2018 - 19, are detailed below: During the Financial year 2018-19, the company has discharged
(` in Crore) its liability on account of short term borrowings of Rs. 150.00 Crs.
Sl.
No.
Head of expenditure 2018-19 2017-18 25. STATUS OF PROJECT IMPLEMENTATION
i) Land 26.57 64.39 As on 31.03.2019, there are 20 ongoing and 35 completed mining
projects in CCL with sanctioned capacity of 117.35 MT. The
ii) Building 108.36 99.67 sanctioned capital and capacity of ongoing projects of CCL are Rs
iii) Plant & Machinery 133.69 190.68 5394.19 crores and 61.35 MT respectively. Where in North Urimari
(3 MTY) has been dovetailed in the Expansion PR of North Urimari
iv) Furniture & Fittings 3.34 2.07 OC(7.5 MTY), which got approved by CIL Board on 14.03.19. The
v) Office Equipment 13.68 10.83 sanctioned capital and capacity of completed projects of CCL are
Rs 3097.74 crores and 56.01MT and respectively. There is one
vi) Railway Siding 848.92 467.60 Non –Mining project named Tori Shivpur railway line(double line)
vii) Vehicles 0.12 0.06 with a sanctioned capital of Rs 2399.07 crores and length 44.37
kms.
viii) Other Mining Infrastructure 238.40 63.55
ix) Software 4.19 0.01 25.1. Details of total no. of Projects( Ongoing + Completed)
Total 1377.27 898.86 Sanctioned Sanctioned
Projects Number Capital Capacity
Note : (Rs. crores) (MTY)
1. Railway siding includes capitalisation of Advance (enabling Assets- Tori Above Rs 150 Crores 14 6926.22 79.96
- Shivpur Rail line) amounting to Rs. 714.10 Crore, based on utilisation Between Rs.150 Crores to Rs.50 Crores 11 1069.26 21.66
certificate from EC Railway.
Between Rs.50 Crores to Rs.20 Crores 2 82.32 1.8
Thus your company has achieved an Excellent rating for parameter Between Rs.20 Crores to Rs.2 Crores 28 414.14 13.89
“CAPEX”. Achievement is Rs. 1377.27 Crs. against an Excellent MOU
target of Rs.1100 Crs. TOTAL 55 8491.93 117.35
36
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
A. Details of 20 Ongoing Mining Projects of CCL 25.2. Projects approved during the FY 2018-19
Sanctioned Sanctioned Sanctioned Sanctioned
Projects Number Capital (Rs Capacity Sl. Date of
Projects Type Capacity Capital (Rs
crores) (MTY) No. Approval
(MTY) crores)
Above Rs 150 Crores 9 4801.32 50.71
CCL Board -
Between Rs.150 Crores to Rs.50 Crores 4 459.91 7.21 13/14.06.2018
EPR of North
Between Rs.50 Crores to Rs.20 Crores 1 46.78 0.80 1. OC 7.5/10 1553.06 CIL Board
Urimari OCP
-14.03.19.
Between Rs.20 Crores to Rs.2 Crores 6 86.186 2.63
TOTAL 20 5394.19 61.35
325.88
Out of the 20 ongoing projects Parej East UGP & Hurilong UGP (entire
life)
could not be started due to non grant of FC & EC respectively. 2.
Piparwar Phase-I
UG 0.87/1 323.12 14.45
Kalyani OCP is one of the ongoing projects of CCL and will be UG
(Up to
started after grant of EC and FC. target
year)
Out of the balance 17 projects Amrapali OCP is on schedule and
other 16 projects are delayed due to problems which are broadly
Projects started during the FY 2018-19 : NIL
classified as under :
(a) Authentication of land. Projects completed / commissioned in FY2018-19
Above Rs 150 Crores 5 2124.9 29.25 Environment Clearance granted : Rajhara OCP (0.5 MTPA)
Between Rs.150 Crores to Rs.50 Crores 7 609.35 14.45 Submission of application for EC (violation cases)
Between Rs.50 Crores to Rs.20 Crores 1 35.54 1 S. Name of Project Capacity (MTPA)
No.
Between Rs.20 Crores to Rs.2 Crores 22 327.9584 11.26
1. Karo Expansion OCP and Integrated Washery 11/15
TOTAL 35 3097.7484 56.01 2. Selected Dhori Group of Mines 8.25/11
37
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
ToR issued (violation cases) Submission of Form I Application for Washeries
S. No. Name of Project Capacity (MTPA) S. No. Name of project Capacity (MTPA)
1. Karo Expansion OCP and Integrated Washery 11/15 1. Basantpur-Tapin Coking Coal Washery 4.0
2. Selected Dhori Group of Mines 8.25/11
2. New Kathara Coking Coal Washery 3.0
3. Tarmi OCP 1.0/1.70
Submission of Form I (violation cases) Recommendation of MoEF&CC for EC : Tapin South OCP
( 2/2.50 MTPA)
S. No. Name of Project Capacity (MTPA)
1. KujuOCP 1.50
Approval of Mining Plans & Mine Closure Plans of six projects
2. Kedla OCP 1.35
S. No. Name of project Capacity (MTPA)
3. Kedla UG 0.22
1. Tapin OCP 3.50
4. Gidi A OCP 1.00
5. Bhurkunda Colliery 2.05 2. Topa OCP 1.68
6. Giridih-Kabribad Group of mines 1.30 3. Amrapali OCP 12.00
7. Pundi OCP 3.00 4. North Urimari OCP 3.00
8. Kargali OCP 0.75 5. Rajrappa OCP 3.00
6. North Urimari OCP 4.20
Submission of Form I application (regularization of EIA
Notification,1994 to EIA Notification,2006) Environment Monitoring
S. No. Name of project Capacity (MTPA) All the mines / washeries of CCL are being monitored on regular
1. North Urimari OCP 3.00 basis by CMPDI. This year around 5400 samples of PM10 (RPM),
2. Amrapali OCP 12.00 5400 samples of PM2.5, Heavy Metals analysis : 255 samples
3. Parej East OCP 1.75 ,1800 samples of effluent monitoring , 500 samples of surface
4. Rajrappa OCP & Washery 3.00 water quality, 200 drinking water quality samples, 4190 samples
5. Kedla Washery 2.60 of noise monitoring and 24 samples of DETP were monitored.
6. Kathara CPP 2 x 10 MW
Sprinkler System : Feeder Breakers and Crushers for Control of Air Pollution
38
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Land reclamation status of opencast mines FC Application (online) – 17 Nos. (2220.76 Ha)
Reclamation status of mines is being monitored by CMPDI through S. No. Name of Project Area in Ha
remote sensing on a regular basis. Projects with composite
1. Ara Chamatu Road 1.56
excavation capacity of more than 5 Million Cubic Metre are
monitored every year . Ashok, Piparwar, KD Hesalong, Parej 2 Masilong to Chatra Khelari Road 10.72
East and Rajrappa were monitored during year 2018-19 . Projects 3 Devalgada to Kurlonga Road 3.65
having capacity less than 5 Million Cubic Metre are monitored 4 Ara to Phulbasia Road 9.91
once in three years. Projects having capacity less than 5 Mcu. M
5 Honhe to Saradhu Road 13.70
that were monitored during 2018-19 were Tetariakhar OCP, Dakra
OCP , Magadh OCP, Amrapali OCP , Gidi A OCP , Pundi OCP , 6 Honhe to Koed Road 1.04
Kedla OCP , Jarangdih OCP , Kathara OCP , Konar OCP , Karo 7 Balkudra OCP 131.50
OCP & Karma OCP. 8 North Urimari Railway Siding 11.11
9 Amrapali Railway Siding 107.06
10 Parej East OCP Renewal 43.52
11 Parej East OCP 101.00
12 Selected Dhori OCP 7.45
13 Tarmi OCP 147.35
14 Road from Tapin South OCP weigh bridge to 3.88
Charhi goodshed
15 Kotre Basantpur Pachmo OCP 633.19
16 Kotre Basantpur Pachmo OCP 372.98
17 Bhurkunda Colliery 621.14
39
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
No. Of Proposal Sent to MoEFCC: 6 Nos. (996.17 Ha) Company wide IMS (Integrated Management System) Certification.
S. No. Name of Project Area in Ha ISO 9001 : 2015, ISO 14001:2015 and OHSAS 18001: 2007
1. Karo OCP 226.67 versions awarded to entire Central Coalfields Limited as a whole
2 Rajrappa OCP 277.15 in November 2018.
3 Coal Dispatch Conveyor of Karo OCP 7.50
27. LAND ACQUISITION STATUS:
4 Purnadih OCP 323.49
5 KDH OCP 126.72 27.1. Land Acquisition status
6 Urimari OCP 34.64
Under CBA (A&D) Act’ 1957 – During the year 2018-19 further
progress has been made in the following proposals with respect
to acquisition of land under the above Act.
No. Of FAC meetings at MoEF&CC : 4 nos. (560.32 Ha)
Sl. Name of the Area in Notification for Acquisition
S. No. Name of Project Area in Ha No. Project acres
1. Karo OCP 226.67 1. To p a - P i n d r a 780.67 Section 4(1) completed .Gzt. Notf. dt
2 Rajrappa OCP 277.15 Expansion Project 20/21.07.2018 So No 1066
3 Konar Washery 49.00 2 Jeewandhara Open 93.98 Section 4(1) completed .Gzt. Notf. dt
cast 02/04.08.2018 ;SO No 1136.
4 Coal Dispatch Conveyor of Karo OCP 7.50
3 Amrapali Expansion 305.13 Section 4(1) completed .Gzt. Notf. dt
Project 10.10.2018;SO No 1468
Afforestation:
4 Pichhri OCP-II 78.9 Section 9(1) completed .Gzt. Notf. dt
10.10.2018; SO No 1469
During 2018-19, 1.35 Lakh saplings were planted over an area of
5 Konar OCP 9.09 Section 11(1) completed. Gzt notf dt
54.3 Ha in mines of CCL. The plantation was done through State 04.04.2018; SO No 1484
Forest Department. Till date ( Monsoon 2018) , approximately
6 Chainpur OCP 58.41 Section 11(1) completed. Gzt notf dt
8400000 (Eighty Four Lakh saplings have been planted ) since 10/14.04.2018 ;SO No 566
the year 1992.
Biological Reclamation
40
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
1179.78 acres of land under Section 4(1), 78.9 acres of land 28.1. New Sidings under construction :
acquired under Section – 9(1) and 67.50 acres of land notified
under Section 11(1) resulting in achievement of excellent rating. a. Piparwar Siding M/s RITES Ltd. was entrusted the job of completing
the balance work of Piparwar Railway Siding, at an
awarded cost of 90.61 Crores on deposit term basis.
27.2. Payment of compensation: The project cost has subsequently been revised to
Rs.141.00 Crores (approx.). The formation work has
During the year under reference, an amount of Rs 676.92 lakhs been completed in the entire length of 30.5 Kms and
track linking of Surface line/main line has also been
has been released for land and trees in 19 payment camps completed and coal dispatch started since July 2017.
held in different areas, Rs 1252.90 lakhs disbursed as house Signaling & Telecommunication (S&T) of this rail line
compensation, R&R Benefits and for R&R Site development on has also been completed. Presently, the Overhead
Electrification (OHE), along with rehabilitation work
land acquired earlier under the provision of CBA (A&D) Act, 1957. related with rail track of loop line is being completed
Rs 544.4 lakhs paid under the Directive of the courts for land and by M/s RITES Ltd. RITES has requested for provisional
House compensation. time extension upto June 2019 for completion of
remaining works.
Out of Rs. 3640.01 lakhs sanctioned by competent authority Track linking for 1.683 Kms. at Junction point at
for compensation under land, houses & trees (including R&R Mc-cluskieganj Railway Station has been carried out
Benefits), Rs 1498.91 lakhs has been disbursed for rehabilitation by EC Railway as deposit work. The work related to
main line and ROR bridge in loop line has been done
and resettlement benefits including lump sum payment to project by EC Railway.
affected persons in Magadh, North Urimari, B&K , Piparwar (Bijain)
b. Construction of Tori
& Purnadih Projects. – Shivpur and Shivpur –
Kathotia) new BG Railway
27.3. Employment: line.
Present Status: Stage –I forestry clearance was granted by MoEF in
During the year 2018-19, 100 employments have been provided (i)Tori – Shivpur new April 2011 of the revised alignment. Thereafter, Stage
to land losers or their nominees in different Areas/Units enabling BG Double Rail line – II forestry clearance for the modified alignment of
the company. (including Tori-Biratoli & Tori – Shivpur section only was granted by MoEF on
Biratoli - Mahuamilan rail 19.06.2013.
line connectivity
27.4. Rehabilitation and Resettlement : The single rail line from Tori upto Balumath Station
(Estimated cost – (19.3 Km length) had been inaugurated for coal
During the year 2018-19, a total of 216 families were rehabilitated Rs.2399.07 Crs)
traffic movement in March 2018 and Coal dispatch
under different projects, details given hereunder: started from Balumath. Subsequently, coal traffic
movement has also been started from Bukru and
(i) Bijain (Piparwar): 150 PAFs Phulbasia sidings on this rail line. The civil works
related to single rail line from Tori up to Shivpur has
(ii) North Urimari (Barkasayal) : 25 PAFs been completed and presently doubling work of
rail line from Tori up to Shivpur is in progress along
(iii) Topa ( Kuju) : 28 PAFs
with Over head electrification works and Signaling
(iv) Purnadih (NK) : 12 PAFs & Telecommunication works. A total expenditure of
Rs.1855.87 Crores has been incurred by Railway up
to March’2019 on Tori – Shivpur new rail line.
Special Achievements :
(ii) Shivpur –Kathotia The work of Shivpur – Kathotia new BG Rail Line has
1. Arranged a tripartite meeting of villagers, management (Revised alignment been identified to be taken up by M/s Ircon International
and District Administration at Tandwa (Chatra district) of Shivpur – H’bagh) Limited on behalf of the Joint Venture (JV) Company
and resolved amicable solution for land compensation (Estimated cost – Rs of CCL, IRCON & Govt. of Jharkhand i.e. “Jharkhand
1799.64 Crs) Central Railway Limited” (JCRL). EC Railway has
and employment i.e Agreement price of land between
accorded its approval on the DPR (Revised Project
management and landowners which they found beneficial Cost – Rs 1799.64 Crs) submitted by M/s IRCON.
under Section 108 of RFCTLARR Act 2013. Further, the approval of inflated mileage @60% has also
been accorded by Railway. The concession agreement
2. Liaisoning with District Administration Latehar for construction
between EC Railway and JCRL has also been signed in
of Road from Project to Phulbasia and Bukru Railway Siding. December 2018. The application for obtaining forestry
3. Construction of road along Railway line from Bukru to clearance has been filed and stage-I clearance is
awaited. Action has been taken for acquisition of other
Jehlitand with the help of District Administration.
lands. Financial closure is also under process.
c.Kuju Railway Siding. Kuju Railway Siding with a low level platform has been
28. RAILWAY SIDING commissioned by EC Railway on deposit term basis
at a cost of Rs 8.22 Crores for CCL. The siding has
The brief performance report is appended as below : – been inaugurated and coal dispatch has been started.
41
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
d. Saunda-B Railway Construction of one additional loading line along with services, large diameter boreholes for dewatering & tube wells for
siding low level Wharf wall has been taken up through EC potable water and non-coring boreholes for exploration purposes.
Railway on deposit term basis at a cost of Rs 2.84
Crores. Construction work is likely to be started soon. 29.2. Project Documentations and Related works
e. Construction of Pipradih The work is being carried out by East Central Railway,
(i) On Geology:
Railway Siding. Dhanbad Division on deposit term basis. Cost has been
revised from Rs. 8.88 Crores to Rs. 22 Crores (approx.) During the year 2018-19 the following activities have been
by EC Railway due to change in alignment. CCL has completed. Majority of them related to production support
requested EC Railway for submission of detailed
justifications for increase in cost.
mining services and future mining activities:
f. Construction of North CCL has awarded the work for construction of North 1. Maintaining H/W, application software and data of
Urimari Railway Siding. Urimari siding to M/s RITES in May 2017 at a cost of computer centre of the department.
Rs. 222.32 Crores (approx). The work is under progress
by M/s RITES Ltd. Construction of Major bridge over 2. Interaction with GM (Exploration), RI-III in respect
Damodar river, other minor bridges and formation work of Location Plans of the running blocks where
are in progress.
exploration is being taken up in the CIL blocks of
g. Preparation of FSR, The work has been entrusted to M/s RITES Ltd. DPR CCL Command area through departmental as well
DPR and constn of two has been approved by EC Railway. The cost of this
project is Rs.99.80 Crores (including RITES fee and
as outsourcing means, Geological information in
nos. wharf wall, loading
Service Tax) based on DPR submitted by RITES – the MPR and pendency of coal cores.
platform between Ch.
17.000 Kms. & 18.000 which includes the provision of crossing station at
Koilara in between Chainage 10 Kms. & 11 Kms. Work 3. Monitoring of Geological Exploration to be carried
Kms. in the Piparwar – out in CCL Command area by RI-III,CMPDI,Ranchi
is in progress.
Mc-Cluskieganj rail line
through departmental as well as outsourcing means.
alignment
h. Construction of Magadh Work has been awarded to M/s RITES Ltd. at a cost 4. Compilation of coal reserves in CCL command area as
Railway Siding. of Rs.391.01 Crores (including RITES fee and Service on 1.04.18. A total of 44837.98 M.T. of coal reserves
Tax). Construction work is in progress by M/s RITES Ltd is in CCL command area. Total coal inventory in India
in Railway land and in some other portions.
as on 1.04.17 is 319020.33 M.T.
i.Construction of Amrapali Work has been awarded to M/s RITES Ltd. at a cost
Railway Siding of Rs.413.48 Crores (including RITES fee and Service 5. Processing of CMPDI bills in CIL Blocks of CCL
Tax). Construction work is in progress in Railway land command area carried through departmental as well
portion.
as outsourcing means.
j. Konar Railway Siding Construction of Konar Railway Siding with low level
Wharf wall between Jarangdih Station and Bokaro Outsourcing proposals
thermal power Station has been taken up through EC
Railway on deposit term basis at a cost of Rs 46.8 1. Geological Study of proposal for outsourcing for
Crores. Construction work is in progress. removal of 3.799 M CuM OB (including rehandling of
0.799 M CuM) & extraction of 0.734 MTe of Coal from
28.2. Renovation of Existing Railway Siding Masilong patch of Magadh OCP through Outsourcing
agency in a period of 1 year and dumping 0.799 Million
Renovation of Kargali (W) Siding has been completed by M/s CuM OB in down throw side of 120 m throw fault not
RITES Ltd.
within PR Boundary of Magadh OCP (20.00 MTY)
Renovation of rail tracks and sleepers has been completed in the and balance 3.00 MCuM of OB to be dumped in coal
following sidings by East Central Railway, Dhanbad Division on bearing area which will require re-handling in future.
Deposit term basis : (i) Dhori – I Siding, (ii) Dhori – II Siding, (iii)
Tarmi Siding (iv) Jarangdih – I Siding (v) Jarangdih – II Siding (vi) 2. Geological Study of proposal for outsourcing of
NR & Sarubera (Phase – I) (vii) NR & Sarubera (Phase – II) (viii) dumping 1.062 M CuM OB in Decoaled area awarded
New Selected Dhori Siding (ix) Dakra Siding (x) Bachra Siding to M/s Sainik and Allied services Ltd. Patch at Magadh
(xi) Saunda – B Siding. OCP.
15. Geological Study of proposal for outsourcing the OB Non-coking 16088.94 6658.53 2839.07 25586.54
removal (263.30 L.CuM) and coal extraction(251.53 L
Te) and transportation at Ashok OCP, Piparwar Area Total 24198.69 16107.30 4531.89 44837.98
for a period of 05 years.
43
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
30. Information & Communication preventive steps for curbing the menace of illegal mining through
Technology in CCL: “Khan Parhari” App./pilferage of coal, establishing liaison with State
& Civil authorities etc. Your department has had a superb track
CCL has utilized Information and communication technology for record in the previous financial year i.e. 2018-19. The department
streamlining the business processes to increase transparency has established a tremendous mechanism with round the clock
and optimizing utilization of resources for the satisfaction of its monitoring of various ongoing activities at various mines/projects
stakeholders. The following key initiatives have been undertaken: and units. The updated information is collated and submitted as
Management Information System (MIS).
1. CCL is working actively with other subsidiaries of CIL
for proposed implementation of ERP Project (SAP) Your Department has carried out the maximum number of raids
by CIL. in the year 2018-19 with a total number of 652 raids in the 13
Areas and recovery of over 435.51 Metric Tonnes of Coal at an
2. E-auction of coal, e-procurement of goods and approx. value of Rs. 9,47,106.00 (Rupees Nine lakhs forty seven
services are operational through central service thousand one hundred six only)Successful raids conducted are
provider of CIL as well as GeM portal, e-payment the hallmark to an effective deterrence to nefarious activities. On
to employees and vendors, e-filing of grievances is reporting of illegal coal mining inside the lease hold area of CCL,
in operation to embark upon the business process the department initiates FIR to the local Police and utilizes the
through IT initiatives. forum of the respective District Task Force to book the miscreant.
3. Adhaar based biometric attendance system has been A number of rat holes have been dozed off to stop illegal mining.
made operational at CCL & its command areas for
In addition to strength enforcement of Security Personnel at
efficient attendance monitoring.
various Coal mines undertaken by your department, erection
4. The Coal Net (an ERP type solution) is operational of check-posts at vulnerable points has beefed up the security
in CCL and several modules like Finance, payroll, setup in command areas of CCL. Barbed wire fencing at Coal
material management, Sales & Marketing, PIS and Railway siding, enhanced night patrolling activities have been
production related to business functions of CCL are introduced and close monitoring of weighment and dispatch of
operational. coal through CCTV cameras, RFID tagging and GPS Navigational
system. In pursuit of achieving excellence, the department has
5. E-office application from NIC has been implemented also strengthened the Central Industrial Force (CISF) with various
at CCL HQ. The project intends to enhance the modern gadgets such as QRT vehicles, night vision device, better
business process management of the organization arms and ammunitions and lots of other equipment.
and aims to improve production, productivity, and
increase transparency by replacing the old manual Apart from the above, 129 surplus Cat-I /under 9.4.3.9.4.0/Land
process with an electronic file system. Oustees have already been trained for the year 2018-19 at Security
6. In order to improve productivity and efficiency Training Institute, Gandhi Ranchi to be absorbed in security
across various business processes Central Server department and they have been posted at different areas of
processing through Wide Area Network (WAN) is CCL for watch and ward duty.
being implemented.. In order to provide safety & security to the company’s property &
7. Corporate Mail Messaging System is in place and all assets, this department has installed CCTV cameras both in the
officers of CCL have been provided with corporate field areas as well as in the residential colonies and office premises,
email introduced by CIL. for 24 x 7 real time monitoring and to check the entry of unwanted
elements in office premises. In this regard, the department is
8. Various in-house developed web/mobile application creating a comprehensive monitoring and control room at CCL
like Activity monitoring system, Crowdsourcing for HQ, Darbhanga House, Ranchi for effective monitoring purposes.
inviting innovative ideas from employees, CPRMSE
for retired employees with SMS alert , Bill tracking 32. Report on Implementation of
application for service providers/vendors etc. have
been introduced.
Rajbhasha - 2018-19
9. Performance evaluation, Vigilance Information and Located in Jharkhand’s capital - Ranchi, Central Coalfields Limited
annual Property Return of all executives is recorded – a Coal India’s subsidiary is located in region ‘A’ where about 90
through web enabled systems centrally managed by percent of the personnel working with the company have functional
CIL. knowledge of Hindi. Your company’s official language department
works promptly on the implementation of the official language policy
10. GST has been made successfully operational for of the Government of India. The instructions from the Ministry of
various modules of Coal-Net. Home Affairs or Coal Ministry are fully complied with. During the
year, timed workshops and quarterly meetings were organized
31. SECURITY MANAGEMENT: with everyone’s collaboration.
The Security Department of Central Coalfields Ltd.(CCL) is a 24x7 During the year under review, four meetings of the Official
functional Department which monitors, controls and takes requisite Language Implementation Committee chaired by the Chairman-
44
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
cum-Managing Director / Director (Personnel) were organized Periodical inspection of areas of CCL, central units and
on 08.02.18, 21.07.18, 26.10.2018 and 18.03.2018, respectively. departments of CCL headquarter are conducted and appropriately
These meetings were attended by the Head of Departments / advised to increase the use of the official language. Feedback
Representatives and Official Language Nodal Officers of respective regarding status of Implementation is also provided.
Area’s/Departments of the company.
With the implementation of e-office in CCL, headquarter; progress
A ten-member sub-committee headed by the General Manager in the implementation of the official language is expected. Posts
(P/ R.B.), has been constituted for the implementation of official of eight junior translators were created this year. Their selection
language in the Headquarter. It is mandatory to organize a is in process. The purchase of Hindi books for Dinkar library is in
workshop on a quarterly basis as per the Ministry’s guidelines. This process.
year, a total of five workshops were organized in the headquarter
by the Department of Official Language in collaboration with the Department of Official Language, CCL, endeavors to ensure
Human Resource Development Department, CCL, on 25.06.2019, 100% compliance with the instructions of the Ministries, which has
26.06.2019, 18.09.2019, 27.12.2019, 28.09.2018 respectively resulted in a positive impact on the implementation of the official
within which a workshop was organized exclusively for newly language in the company.
appointed management trainees.
33. VIGILANCE DEPARTMENT
An Official Language Implementation Committee has been
reconstituted in all the areas of CCL and Central Workshop, 33.1. Performance of CCL Vigilance Department
Barkakana. A meeting of the Official Language Implementation
Committee is organized quarterly under the chairmanship of the A. Total No. of complaints received and Action taken
Regional General Manager. Workshop is also organized quarterly thereon
in each area.
Complaints Year 2018-19
On 08.06.2018, an inspection meeting was organized with the
HoD’s/ Rajbhasha Nodal officers of each Area/Headquarter of No. of complaints received during the period 1st April 2018 405
CCL under the chairmanship of Shri D.J.Nayak, General Manager to 31st March 2019
(P & IR / Official Language), Coal India, at CCL headquarter. No of complaints filed being Anonymous/Pseudonymous/Filed 92
During the meeting, implementation of official language by CCL No. of complaints taken up for examination/verification during 175
was reviewed and appreciated for the implementation of official the period 1st April 2018 to 31st March 2019
language policy, various suggestions and directions were given
No. of complaints forwarded to HODs/GMs for taking needful 138
by the General Manager (P&IR / official Language), Coal India,
action.
which are being followed.
‘Rajbhasha Maah’ was celebrated with different competitions from B. Cases under Regular Investigation(RI cases):
04.09.2018 to 07.09.2018. Rajbhasha Diwas cum prize distribution
function was organized on 14th September, 2018 under the Investigation Cases Year 2018-19
chairmanship of Chairman-cum-Managing Director, CCL. A senior Pending Cases on 1st April 2018 14
litterateur of the city was honored. Winning participants were given
a cash prize of the amount fixed as per Ministry’s instructions. Cases taken up for investigation during the period 1st April 06
Shield was awarded to three Departments and three Areas of 2018 to 31st March 2019
the Headquarter for excellent work in official language for the Number of investigations completed during the period 1st April 17
whole year. An Area was awarded with special official shield for 2018 to 31st March 2019
the best work in the Official Language. Consolation prizes were Cases pending on 31st March 2019 03
awarded to 95 personnel to encourage competitors participating
in the competition. C. Number of cases taken up for Disciplinary action
A meeting of the Ministry of Coal, Ministry of Home Affairs, was (RDA Cases)
held in Delhi in the year 2018-19. In this meeting, the Director (P)
No. of cases taken up Year 2018-19
of the company, General Manager (P/ R.B.) and an Executive of
for Disciplinary action Cases No. of persons
Official Languages Department attended the meeting. CCL was
(RDA Cases)
appreciated for its successful efforts for implementation of Official
Language. Major 15 40
Minor 03 08
An initiative of the Department of Official Language, ‘Manak
Praroop Sankalan’ was published in collaboration with CCL Press. D. Departmental Inquiry
It is a compilation of letters / note sheets / comments and was
distributed to all departments and Areas. Also, department wise Year 2018-19
difficult words were compiled and were simplified/translated to a No. of Departmental
Cases No. of persons
book ‘Karyalay Sahayika’ which will facilitate usage of Rajbhasha. Inquiries completed
It has also been made available on the CCL website as well. 20 28
45
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
E. No. of Cases in which Penalty imposed trucks and wagons, over and under reporting of
coal stocks, etc. remained a serious problem
No. of Cases in which Year 2018-19 for the Coal India Management right from its
Penalty imposed Cases No. of persons inception. With the advancement of technology
Major 18 32 in recent past, some of the IT initiatives such
Minor 13 21 as VTS, CCTV monitoring and computerized
Weighment with RFID were introduced to
F. Surprise Checks conducted during the year 2018-19: prevent loss of revenue on such accounts.
These were some of the excellent initiatives
Year Surprise Check Converted aiming to bring transparency, accountability &
Conducted into Regular system improvements.
Investigation
(ii) As the reviews on the impact of these initiatives
Year 2018-19 11 02
(1st April 2018 to 31st March 2019
in preventing coal theft and other allied issues
were done at different levels in Coal India &
its Subsidiaries, it was seen that the desired
G. Cases under Intensive Examination (ITE Cases):
results, as anticipated while introducing these
Converted initiatives, had not come. That was the practical
Year ITE conducted into Regular scenario in all the subsidiaries of Coal India Ltd.
Investigation
(iii) The results of comprehensive audit of these
Year 2018-19 (1st April 2018 to 31st
03 00 IT initiatives in all subsidiaries to assess
March 2019
their impact on improvement in monitoring
& surveillance were not very encouraging
H. Scrutiny of Property Return of executives: and the practical issues in implementation of
these initiatives have come out. It was seen
Year (2018-19) No. of Scrutiny carried out that a uniform SOP had not been developed
(1st April 2018 to 31st March 2019 438 clearly defining role and responsibilities of
various executives, thus there had been a
I. Agreed list/ODI Lists are being prepared every year. serious reluctance on the part of the field level
officials to implement these initiatives. It was
J. On the basis of irregularities observed in the prevailing also observed that the executives responsible
system during the course of investigation and Surprise checks for execution and maintenance had not been
conducted by Vigilance Department of CCL preventive reviewed for its implementation. There were
measures are recommended to the competent authority for other issues of LAN/ WAN connectivity,
system improvement. Internet availability, damage to RFID Boom
Barriers, tampering & theft of GPS devices and
33.2.System improvement recommended to reduce the plethora of other issues which had made the
opportunities for corruption. implementation of these initiatives very poor.
(vi) The overloading charges is borne by the (iii) The stoppage of overloading will prevent
consumers but the successive overloading damage to railway lines thereby reducing
of rakes, apart from causing damage to the maintenance cost for railways.
railway tracks, not only fetch the consumers (iv) With consumers not paying for overloading
excess coal but also allow them to carry the charges, it will enhance goodwill amongst
contracted quantity of coal in less rakes over the consumers and boost the brand of the
the period of time. company.
(C) Implementation: (E) Potential for Replicability :
(i) It was revealed during the study that though The instances of overloading and under-loading
the loading of wagon is carried out by the cannot be ruled out in other subsidiaries of CIL.
contractual means, overloading and under- Further, out of 1.16 billion te of freight transported by
loading charges are borne by the purchaser railways during 2017-18, the contribution of coal is
and Seller/ CCL respectively. Thus it was a nearly 50%.
win–win situation for the contractor in both the
cases though the fault is entirely his. 3. Study on penalty deduction with respect to weight
difference at loading and receiving ends in coal
(ii) There is no provision in the NIT of wagon transportation in one of the projects of Central Coalfields
loading for recovery of charges on account of Limited.
overloading and under-loading of rakes from
the contractor awarded with the job of wagon (A) Brief Description of the Measure/Initiative:
loading. Hence, no recovery is being made from
● The existing system of deduction of penalty
the wagon loading contractors.
from security deposit of the transporting
(iii) The matter has been brought to the notice of contractor(s) led to financial loss to the
the CMD, CCL vide note dated 1.08.18 with company and hence was changed & replaced
a suggestion to incorporate a provision in the with penalty deduction from monthly running
on account bills in all the projects of CCL
NITs for recovery of under-loading charges from
improving operational efficiency
the erring loading contractors.
● Scale of operation – Introduced on large scale
(iv) It was also suggested to enhance monitoring on
for whole company
the subject matter from CCL(HQ) on account
of following points: (B) Background:
(a) Siding-wise information for under-loading (i) The subject study was conducted on
charge is neither maintained by Marketing & irregularities in penalty deduction with respect
Sales Deptt. nor available at HQ, Finance. to weight difference in loading and receiving
end in a coal transportation.
(b) Data for Overloading and under-loading are
not separately maintained and reported by HQ, (ii) The clause no.18.0 of Special Terms and
Finance. Condition of transportation contract clearly
48
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
stipulates that “in case the trucks are being to deduct the whole penalty amount, but in case
weighed both at loading end as well as of monthly deduction of penalty this problem
unloading end, the figures of weighment at was resolved.
both the ends shall be reconciled every month
in respect of each contractor and if there is any (D) Implementation:
shortage of coal received at the unloading end, (i) On the initiative of Vigilance department, a
the value of coal found short will be deducted guideline has been issued by competent
at double the then prevailing rate including authority of Central Coalfields limited for
all royalty , cess from the security deposit of deduction of penalty (as per clause no. 18.0
the transporting contractor(s) concerned or of transportation contract) from the monthly
otherwise specifically mentioned in the work running on a/c bills of the contractors instead
order / agreement”. of security deposit of the contractor in all
(iii) The study further revealed that the deduction the projects of CCL. Now it has been
of penalty (for the shortage quantity received implemented in that area & as well as rest of
at the unloading end) on monthly basis from the company.
security deposit was practically not possible as (ii) All the concerned project officials are being
the security money was deposited in the form trained on the above guidelines.
of Bank Guarantee by the contractor. Hence
the monthly penalty calculation was made by (E) Impact and Benefits:
the project officials but the penalty amount By adopting new guidelines of penalty deduction from
could not be deducted on monthly basis. In monthly on a/c bills of the contractors, the benefits to
case where these contract are for three, five, the company will be as follows:
or eight years also it can be done only at the
end of contract. ● Increase in revenue of the company as the
amount of penalty will come on monthly basis
(iv) In the subject case, there was weight difference in company’s account.
(shortage) of 6512.765 tonnes in loading
and receiving end for the whole period of ● Reduction in theft of coal in between loading
coal transportation contract. Hence penalty end and unloading end.
for weight difference (shortage) of 6512.765
● Increase in quantity of coal in transportation
tonnes in loading and receiving ends was
between loading and unloading point as the
to be imposed on outsourcing contractor.
contractor will try to avoid any shortage of coal.
The total amount of penalty calculated to
Rs.2,66,92,201.00 for its recovery from ● Increase in dispatch of coal to consumers.
this security money of the contractor. This
amount of penalty could not be deducted from
security money till the contractor submitted (F) Potential for Replicability:
his final bill. After submission of final bill of the
contractor, the above amount of penalty i.e. Rs. Hence on the initiative of Vigilance Department , a
2,66,92,201.00 was deducted from Security guideline for system improvement has been issued
deposit of the contractor. from competent authority for deduction of penalty
as per clause of transportation contract from the n
(C) Problems/Vigilance Risk addressed: Monthly running on a/c bills of the contractor in all the
(i) As the penalty was being deducted at the end of project of CCL. This guideline is being implemented
the contract period hence there was a chance in all areas of the company saving significant amount
of manipulation in monthly reconciliation of of company’s revenue and avoiding any subsequent
quantity of coal . legal issues.
(ii) The penalty amount of company was blocked 4. Defining Similar work in Civil dept.’s e-tender in Central
for the whole contract period hence it was a Coalfields Limited
loss to the company. (A) Brief Description of the Measure/Initiative :
(ii) In the previous method, sometime the penalty This adopted measure deals with making the e
amount was more than the security deposit of tendering process more transparent in Central
the contractor hence in that case it was difficult Coalfields Limited by elaborating e- tender condition
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
of “Similar Work” criteria in various civil works. It has (D) Impact and Benefits :
already been under implementation in entire civil dept.
of C.C.L. as a whole. This circular provided sixteen category of works and
clearly defined which work can be taken up under
(B) Back ground : similar work for a particular type of work. It included
WBM/Bituminous/ concrete road work, construction of
Central Coalfields Limited has adopted e tendering
building work including industrial sheds, maintenance
method for various kinds of civil works with an
and renovation of building works, water supply/
estimated value above Rs. 2.00 Lakhs. For it, the
sanitary related works internal & external both
bidder is supposed to submit the work experience
including static dust suppression system, Deep bore
certificate of similar kind of work previously
well /tube well, const./renovation of sewage treatment
successfully done by it anywhere else. Based on the
Plant/water treatment plant, const. of ground water
certificates, the dept. used to analyse that whether it
reservoir, Const. of RCC overhead tanks, Const./
can be treated as similar work or not.
renovation of bridges, culverts/ boundary wall/
There was no clear standard guideline available as drain/retaining wall /pump foundation etc., earthen
which type of work will be treated as similar work in embankment/ Nala diversion/major earthwork, Up
case of a tendered work. Each tendering unit in area/ keeping of buildings, horticulture work and internal
Hq. adopted the similar work definition as per their electrification work.
own requirement which varied from each other. There
was no clarity/similarity regarding defining similar It is helpful in avoiding unnecessary disputes which
work in the company. causes time delay in tender finalization. It is saving
the cost overrun and mandays involved in tender
This caused subjective interpretation at tender finalization too.
committee level about suitability of the experience
certificate submitted by bidder for similar work The existing system of selection of similar work criteria
condition as quoted in the NIT. Many times, it lead to was improper and hence it has been redesigned
dissatisfaction among bidders as their tenders were to make this clause very clear to the bidders. This
rejected citing the reason that their submitted work new provision has contributed very much in bringing
experience certificate can not be treated as similar clarity to the NIT clause and brought transparency in
work for the tendered work. Chances of favourtism finalization of tender process.
was high. Many times it resulted in vigilance
The existing system was contributing several vigilance
complaints too.
complaints as the tender clause was vague. This new
(C) Implementation : clarity in tender provision has reduced the vigilance
complaints related to tenders in civil dept.
Hence, there was a need to incorporate clear clause
regarding “Similar work definition in the N.I.T so that It will have a very long term effect on the overall image
the perspective bidders can decide their suitability for of the company which has a very broad impact in
tendering in advance. today’s competitive world of business. Less dispute
means faster award process and saving in time and
Accordingly, an exhaustive study was done by money both.
vigilance department in house and a system
improvement was suggested vide CCL/Vig./17- (E) Potential for Replicability :
18/2715, Dt. 27.12.2017. to the Director (T), P&P
, CCL for making a clear cut guideline on “ Similar This new process, although implemented in Civil
work definition” for maintaining transparency in dept., but can be very useful in other tender handling
the tendering process. After a series of constant departments like E&M dept., Mining dept. etc. in CCL
persuasion, meeting with various field engineers and with partial modifications as per their suitability. It will
tendering officials, a common standard guideline was have a positive impact on the tender process.
prepared which was issued vide GM©/2018/2477, Dt.
5. Formulation of Standard Operating Procedure (SOP) for
27.3.18. by The General Manager(Civil), CCL Hq. for
Transportation of Coal by Contractual Tippers
implementation in the entire CCL.
Hence by using the existing in house human technical (A) Brief description of the measure/Initiative: -
resource, a new preventive vigilance measure was Adopted Measure :
developed which will make the CCL’s e tendering
method more transparent. SOP for Transportation of Coal by Contractual Tippers
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
When was it undertaken & completed: effective in the long run. Accordingly, a draft
SOP has also been prepared clearly defining
Initiated by CCL in December’18 and completed in the roles & responsibilities of various executives
February’19 & non–executives at different levels so as to
Scale of operation: ensure effectiveness and sustainability.
Introduced on large scale across CCL {Vide Letter (iii) The SOP was prepared by CCL Vigilance and
No. GM(CMC)/SOP/2019/230 dated 4.02.19} deliberated with concerned Deptt. on 26.12.18.
and broad consensus was arrived at.
(B) Background :
(iv) After finalization of SoP, the same was widely
The formulation and implementation of above SOP circulated to all the Areas Vide Letter No.
was necessitated due to following reasons: GM(CMC)/SOP/2019/230 dated 4.02.19.
(i) Involvement of un-authorized trucks/ tippers in (D) Impact and benefits :
coal transportation.
(i) The above SOP helps in removing the
(ii) Unrestricted entry/ exit of trucks/ tippers into/ ambiguities on the role of different officials
from mine premises having multiple entry-exits. of Companies. In the said SOP, breaking of
(iii) Improper supervision of vehicles being loaded activity into sub activities and fixing individual
at Coal Stock/ Bed Stock responsibilities has been clearly done to
remove any ambiguity so as to make this SOP
(iv) Possession of fake/ forged challan & other effective in the long run.
documents by the vehicles engaged in coal
transportation (ii) The SOP is in the nascent stage of
implementation. This will definitely help in
(v) Improper weighment &/or one end weighment elimination of un-authorized vehicles from the
of vehicles engaged in coal transportation transport network, ensure proper supervision
of loading and exit of vehicles from the mines
(vi) Theft/ pilferage during transportation
premises, ensure implementation of clause
(vii) Unveiled concession to contractors in the form 18 of GTC regarding recovery of penalty on
of undue Hindrance observance of difference in coal quantity as a
result of both end weighment, etc. ultimately
The loss of revenue to the Company on account of leading to prevention of coal theft and pilferage.
above reasons remained a serious problem. After
the implementation of the IT initiatives such as VTS, (iii) Its complete impact on various aspects of coal
CCTV monitoring and computerized Weighment production, transport and bringing transparency
with RFID, it was felt to bring more transparency & & accountability is being studied at periodical
accountability by formulation and implementation of interval.
the subject SOP.
(E) Potential for Replicability :
In the subject SOP, role and responsibilities of various
The above SoP has the potential of eliminating theft
executives and non–executives in the entire chain of
& pilferage during transportation of coal.
transport activities from origin (Mines) to destination
(Siding/ Washery) have been defined. 6. Formulation of Standard Operating Procedure (SOP) for
Acceptance / Processing / Passing / Payment of Bills
(C) Implementation :
of Contractors / Suppliers / Service Providers in CCL
(i) The matter was taken up by the CVO, CCL Command Area
with the HoD & GM/ Area GM during a review
A. Brief description of the measure/Initiative :
meeting on 14.12.18 at CCL(HQ). The CVO,
CCL emphasized upon the importance of CVC issued a Circular No. 02/04/18 Dated 03.05.2018
preparing an SoP of the critical processes and instructed to analyze the reason of inordinate
clearly defining the responsibility for a particular delay in Payment of Bills to Contractors / Suppliers/
activity Service Providers for last three years. The reasons
were analyzed and primarily it was found that
(ii) While preparing the subject SOP, it was also
the systemic issues involving multi department
realized that a clear responsibility for each
processing, lack of coordination and a standard
activity/ sub activity is a must to make this SOP
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
guideline describing the procedure and timeline in C. Implementation:
the form of SOP was not existing which made it very
difficult to pin point the responsibilities for delay in (i) The Standard Operating Procedure has
payment. been approved and it willl ensure timely
payments to the contractors / suppliers / service
An inter department committee of nine main providers. This can be monitored with proper
departments was constituted to discuss all the issues accountability at various levels. This will help
threadbare and come out with a solution in the form in controlling delays in payment to contractors/
of SOP and timeline for each process. The individual suppliers/service providers.
accountability was also to be ascertained and shown
in the SOPs in order to fix specific responsibilities in (ii) The committee after detailed deliberation with
case of delays. the respective departments and on the basis
of information furnished by all the departments
B. Background :
has finalized this SOP indicating the time line
(i) It was observed that in all cases of processing and responsibility centre to ensure that bills are
of bills of stores, spares, POL, Explosive/ paid within the time schedule.
contractual/ service provider etc., a robust and
(iii) As there is some difference in process of
transparent Bill Tracking System should be put
payment of bills, the SOP is in two parts – i.e.
in place, right from the originating point of Bill Part A: Where Paying authority is HQ and Part
i.e. Executing department/ where material is B: Where Paying authority is Area. The System
received/work is executed to the point of final of FIFO (First in First Out) is to be ensured in
payment by finance department. This will make new SOP for all bills barring exceptions with
the system fast, transparent and also visible proper justification. That means bills which has
where the bottleneck/delay occurs. been received first will be processed first under
normal circumstances.
(ii) There should be stipulation in all tender
documents/Contracts/POs regarding number (iv) SOP also covers the online Bill Tracking
of days (from the date of submission of clear System with provision for alerting higher level
and admissible bill) within which payment will of management to enable monitoring, review/
be released. Officials should be designated to intervention in cases of delays.
ensure compliance of timelines for release of
such payments. D. Impact and benefits :
(iii) Any clarification from the contractors/suppliers/ (i) The Standard Operating Procedure has
service providers on the bill submitted by been approved by the FDs in its 5th meeting
contractor should be sought within a specified dated 19.01.2019 and the same has been
number of days provided in the contract itself. In communicated in CCL command area.
exceptional circumstances, these clarification (ii) Now timely payments to the contractors /
should be sought in one go. Similarly, the suppliers / service providers can be monitored
contractor should be required to submit the with proper accountability at various levels.
clarification sought within a specified number The responsibility of each and every individual
of days. employee involved in this system can be fixed
through this SOP.
(iv) In case of any disagreement between the
Organization and the contractor on any part of 7. Formulation of Standard Operating Procedure (SOP) for
the bill, such part may be severed from the rest. Civil Engg. department for implementation in Central
Payment against agreed and admissible part Coal Fields Limited
can be processed as per laid down procedure,
while the disputed part can be dealt as per A. Brief Description of the Measure/Initiative :
contract provisions viz. conciliation, dispute This adopted measure deals with Standard Operating
resolution, arbitration, etc. Procedure in chronological order to be implemented
(v) FIFO (First in First out) system is not prevailing in day to day working of Civil engg. dept. of CCL.
and online Bill Tracking System did not exist for This initiative was initiated in mid Dec. 2018 and
alerting higher level of management to enable completed in mid Feb 2019. (Total –2 months). It
monitoring, review/intervention in cases of has been already under implementation in entire civil
delay. dept. of C.C.L. in various areas and Hq. as a whole.
52
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
B. Back ground : closure, specific responsibility was fixed for better
administration.
In Central Coalfields Limited, various civil engg.
related works are done contractually. This SOP was issued vide GM(C) /2019/1958, Dt. 7the
Feb. 19. by The General Manager(Civil)- 1, CCL Hq.
Proposals/ estimates are prepared for the required
for implementation in the entire CCL.
work based on the actual requirement , work site
survey, drawings etc. . After checking, it is processed Hence by using the existing in house human technical
by the concerned engineer for approval. This proposal resource, a new preventive vigilance measure was
gets scrutinized at various level and finally it gets developed which will make the CCL’s civil contractual
approved by the competent authority as per approved working method more effective and responsible.
Delegation of power and financial concurrence is
given for it. A sanction order is issued thereafter. D. Impact and Benefits :
After that, tenders are being floated, offers are The SOP is helping in bringing better clarity among
received, scrutinized and Tender committee field engineers as well as other concerned officials
recommendations are processed for approval. After about the process to be maintained for a contractual
proper scrutiny, it is again approved as per DOP with work in civil dept.. The activity wise responsibility
F.C. Work order is issued and formal agreement is distribution is developing a more responsible
made. Then the work is executed as per standard approach towards the work among all concerned. It
terms and condition of the contract , bills are paid has been made by redefining the existing procedures
and then the contract is closed after releasing the systematically.
security deposits etc.
The existing system was bringing several vigilance
It was observed that many times the work is executed complaints regarding advance work execution,
without any proper work order as an ‘advance work’. splitting of work, irregularity in tender process and
Also large value works are splitted into smaller value execution of work etc. Clarity in responsibility
works in order to either bring it within the DOP of distribution in new SOP is likely to reduce vigilance
the lower officer or to avoid e- tendering. This can complaints.
be termed as ‘splitting of work’. The estimate/
TCR are not processed in official Dak and also It will have a long term effect on the overall image
sometimes not properly checked/scrutinized. Few of the company. Transparent system, fair dealing,
other execution related irregularities like delay in systematic functioning and responsible approach
agreement execution, time extension, bills payment, brings good name to the company.
Deviation Estimates/Revised Estimates etc. were also
observed. Complaints were received in vigilance dept. E. Potential for Replicability :
on these issues. This new process, although implemented in Civil dept.,
For all the above irregularities, there was no clear cut but can be very useful in other departments too.
responsibility defined any where in writing as who will
be directly responsible for which irregularity. 8. Formulation of Standard Operating Procedures (SOP)
for Diesel Dispensing Units (DDUs) of CCL in respect of
C. Implementation : receipt, issue, storage and consumption of diesel.
Hence , there was a need to incorporate a clear
(A) Brief description of the measure/Initiative :
step wise procedure to be followed with very clearly
defined responsibility against each step/activity. It Adopted Measure:
will be helpful for all concerned to understand the
importance of rules and regulations clearly. SOP for Diesel Dispensing Units of CCL in respect of
receipt, issue, storage and consumption of diesel.
The matter was discussed with Civil dept. officials
regarding proper improvement measures. After When was it undertaken & completed :
a series of constant persuasion and meeting with
various Hq./ field engineers a standard operating Initiated in December 18 and completed in January’19.
process (SOP) was framed in which proper emphasis Scale of operation :
was given on the steps to control various irregularities
as mentioned above. Further, for each activity Introduced in all Diesel Dispensing Units of CCL
from estimating to tendering and execution to
53
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
(B) Background : (D) Impact and benefits :
54
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
past, some of the IT initiatives concerned with ambiguities on the role of different wings of
weigh bridges such as VTS, CCTV monitoring Companies. In the said SOP, breaking of
and computerized weighment with RFID were activity into sub activities and fixing individual
introduced to prevent the loss of revenue on responsibilities has been clearly done to
such accounts. remove any ambiguity so as to make this SOP
effective in the long run.
(ii) Thus, the SOP is helping in realizing the desired
(ii) It was also seen that an uniform SOP for results as envisaged when these initiatives
Weigh Bridges under CCL command Area were conceptualized and introduced.
had not been developed clearly defining role
and responsibilities of various executives and (iii) Its complete impact on various aspects of
non-executives. irregularities in weigh bridges and bringing
transparency & accountability is being studied
(C) Implementation: at periodical interval.
(i) There was no SOP in CCL regarding Planning, (E) Potential for Replicability :
Operation and Operation of Rail and Road
Weigh Bridges which became a serious The above SOP ,already introduced in CCL command
bottleneck in bringing uniformity in all the weigh area wef 13/02/2019 .
bridges under CCL command area.
12. Observance of Vigilance Awareness week :
(ii) The matter was taken up by the CVO, CCL
with E&M dept.CCL for developing a uniform In compliance to the directives of Central Vigilance
SOP for Weigh Bridges in respect of planning, Commission, New Delhi, Vigilance Awareness Week-2018
operation and maintenance of Weigh Bridges was observed with much fervor and enthusiasm in all the
across CCL. Accordingly, preparation of SOP units, Areas and Headquarters of CCL from 29.10.2018
was started in October’2018. to 03.11.2018. In fact, this year’s awareness campaign
started by CCL Vigilance with Mass Pledge at various
(iii) While preparing the SOP, it was also realized
Puja Pandals during Durga Puja (from 15th Oct.18 to 19th
that a clear responsibility for each activity/
Oct.’18), Awareness drive through sports activities at Sports
sub activity is a must to make this SOP
Academy(JSSPS), Khelgaon Ranchi, Outreach activities
effective in the long run. Accordingly, a draft
at various schools, etc. culminated with various events
Responsibility Matrix within the broad ambit of
organized during the Vigilance Awareness Week-2018.
SOP was prepared clearly defining the roles
& responsibilities of various executives/non The observance of Vigilance Awareness Week 2018
A executives at different levels for planning, commenced with taking of Integrity Pledge by all the
operation and maintenance of weigh bridges employees at CCL (HQ), Ranchi as well as in all the Areas
so as to ensure effectiveness and sustainability. and Projects/ units of CCL. At CCL (HQ), the pledge was
administered by the CVO, CCL, Director (Finance), CCL,
(iv) The SOP was initiated by E&M dept.CCL
Director (personnel), CCL, and Director (Technical/PP),
and prepared by a committee formed with
CCL on 29.10.2018 . The message of the Hon’ble President
competent approval consisting of:
of India, Hon’ble Vice President of India and Hon’ble CVC
(v) HOD (WB), HOD (VTS/RFID), GM (E&M), GM regarding observance of Vigilance Awareness Week were
(M&S), GM (System), GM (E&T), CCL. The also read out by the CVO and Functional Directors of CCL.
SOP was approved by the competent authority
In fact, to encourage all the employees and other stakeholders
on 04/02/2019 for uniform implementations
to collectively participate in the prevention of and fight against
across all weigh bridges under CCL command
corruption, the measure of administering, Integrity Pledge
area.
was started well before the Vigilance Awareness Week 2018.
(vi) After finalization of SOP, the same was widely This activity was not limited to HQ and field units but also
circulated on 13/02/2019 to all the Areas of organized at various other places like temple, puja pandals,
CCL. The matter was subsequently briefed panchayats, schools, college, etc.
during various co-ordination meetings.
All out efforts were made to motivate and influence the
(D) Impact and benefits : employees as well as customers, contractors, citizens, etc.
to take e-pledge. For the purpose, a hyper link to www.cvc.
(i) The above SOP helps in removing the nic.in for “Integrity- Pledge" was activated on CCL website
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
and 5 no. of “e-pledge booths” were also set up at CCL For creation of awareness on the ill effects of corruption
(HQ) to facilitate the officers, staff,workers, citizens (vendors, amongst school and college students, efforts were made to
contractors, contractual workers, etc.) for taking e-pledge. reach out to the students of school & colleges and ensure
Most of the employees had already taken e-pledge during their active participation. The main aim was to promote
VAW 2017, however, this year also over Four Thousand and ingrain ethical values in the tender mind as they are
people including executives, non-executives, suppliers, the future human capital of the country. Debate/ Elocution/
contractors, citizens, etc were administered e-pledge. Speech, Painting/Poster making, Rangoli, Skit, Essay Writing
Competition, Slogan Writing etc were organized in 4 schools
On 29.10.18, CVO, CCL and Functional Directors of CCL and 3 colleges at Ranchi during the Vigilance Awareness
flagged off the “Vigilance Awareness Rath” from CCL Week.
(HQ). The Rath (vehicle) covered all around with display
banners with anti-corruption and awareness slogans, Essay-writing and painting competition was organized on
pictures, messages, etc. imprinted on it traversed through 03.11.18 amongst the Laal & Laadli of CCL (wards of
the residential areas of Ranchi. It was also replicated in 12 ‘Project Affected Person’ adopted by CCL under CSR
Areas of CCL located in 8 Districts (Ranchi, Ramgarh, initiatives and given free food, accommodation and
Hazaribagh, Bokaro, Giridih, Chatra, Latehar, Palamu) coaching for their preparation for IIT & other National
spanning over 2600 Sq. KM. level Engineering entrance exams).
a. Nukkad Natak at HQ and Areas : The observance of Vigilance Awareness Week in the
different Areas of CCL also commenced with the pledge
While celebrating the 2nd day of the Vigilance Awareness ceremony on 29th October 2018 at 11.00 AM.The pledge
Week 2018 on 30.10.2018, a street play was organized was administered by the Area GM/ the senior-most officer
by CCL employees from production units on the theme of the Unit/Area. Banners and posters containing thought-
“(Eradicate Corruption - Build a New India ºHkz"Vkpkj provoking slogans were displayed at conspicuous places in
feVkvks & u;k Hkjr cukvksΩ” with a message that ethical all the units/offices/areas. The Vigilance awareness rally was
values like integrity, transparency, honesty are prerequisite also organized in all the Areas of CCL.
for building a New India. The same team performed in 09
different Areas of CCL located in 6 Districts (Ranchi, In order to inculcate good values and ethics in the minds of
Ramgarh, Hazaribagh, Bokaro, Giridih, Chatra) on school children, Debate/ Elocution/Speech, Painting/Poster
different days during the Vigilance Awareness Week-18. making, Skit, Essay writing competition, etc were organized
in 52 schools at Area level. Integrity Clubs were also formed
b. Vigilance Awareness March : in 8 schools.
After flagging off the Rath, a Vigilance Awareness Rally was d. Open Air Painting Workshop by Professional Artists :
organized at CCL (HQ), Ranchi to raise public awareness on
To propagate the ill effects of corruption, some innovative
the existence, cause and threat posed by corruption. There means were also adopted. One of them was an open air
were around 500 participants in the rally holding placards painting workshop, organized on the theme of VAW-18 on
with thought provoking slogans. The march was flagged 02.11.2018 at CCL HQ, Ranchi. The same was concluded
off by the CVO, CCL, Shri A.K.Srivastava. The Functional on 03.11.2018. In the above workshop 18 no. of professional
Directors of CCL alongwith CVO, CCL participated in this artists participated and exhibited their creativity by depicting
march. The above campaign was also replicated in all the New India in different colors.
the 12 Areas of CCL. In addition several March, Morning
‘Prabhat Pheri’, etc. involving students from various schools e. Workshops/ Seminars at CCL(HQ) and different Areas :
were also organized in different Areas of CCL. CCL Vigilance organized the following workshops & seminars
c. Events organized at CCL(HQ), Ranchi and various during Vigilance Awareness Week :
Schools/Institutes at Ranchi : Seminar/ Workshops-cum-Vendor Meet at CCL (HQ),
Ranchi in association with Material Management Deptt.,
On 29.10.18, in the afternoon, an Essay competition on
Contract Monitoring Cell, Civil department and Civil
“Eradicate Corruption - Build a New India ºHkz " Vkpkj
Deptt.,CCL (HQ), Ranchi which were attended by 60
feVkvks & u;k Hkjr cukvksΩ” and a Quiz competition on suppliers, vendors, contractors, etc. apart from 190
vigilance related issues were organized amongst the officials employees.
of CCL(HQ). Slogan & Poster making competition were also
organized among the employees on 30.10.18. The main The vendors, contractors, suppliers were encouraged to
purpose of organizing the events was to reinvigorate the highlight the problems being faced by them as well as to give
spirit in the employees against corruption and solicit their suggestions so that the process could be further streamlined
support in the fight against this menace. and overall efficiency of the company be improved.
56
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
3 Workshops by the executives of CCL Vigilance covering (i) In this direction, inspirational messages were sent to
all the Areas of CCL on the following subject: the CUG Mobile of officials on each day during the
Vigilance Awareness Week.
(i) Concept of discipline, CDA Rules 1978 & CERTIFIED
STANDING Order and their implementation. (ii) Photographs of Major events alongwith themes were
also uploaded on the official Twitter, Instagram, &
(ii) Domestic Enquiry procedures and imposition of Facebook account of CCL. Many of the tweets were
penalties and appeals. re-tweeted by the Commission.
(iii) Filing of Annual Property return through online mode. (iii) Inspirational messages were also aired on Akashwani,
Doordarshan and local FM Channels during VAW
(iv) Common irregularities observed in Civil E&M,
2018.
Contractual and other matters.
The above workshops ended as a very vibrant interactive 34. RIGHT TO INFORMATION STATUS
session wherein queries raised by the participants/ vendors/
Under the RTI Act’2005, the details of application dealt during the
contractors were adequately replied. year 2018-19 are given below:
Apart from the above, 4 workshop/ conference/ sensitization 1. No. of Applications received : 451
programme was conducted by the different Areas themselves
under the guidance of CCL Vigilance. 2. No. of Applications disposed : 441
3. No. of Applications under process : NIL
f. Publication of “Jagriti”- a Vigilance Magazine :
4. No. of Applications transferred under Para 6(3) of
On the occasion of Vigilance Awareness Week-2018, CCL RTI Act-2005 : 148
Vigilance has published “Jagriti” -An awareness magazine.
It was an unique effort in compiling Messages, some CVC 5. No. of Applications rejected : NIL
Circulars, Case Studies, articles by the employees of CCL, 6. Whether any penalty awarded by CIC to any executive
Quotes, etc. in this magazine by mobilizing the internal of CCL under RTI Act-2005 : NO
resources of CCL Vigilance. The publication of Jagriti
was done with a view to spread awareness amongst the 35. INFORMATION UNDER THE SEXUAL
employees of CCL on commonly observed lapses and HARASSMENT TO WOMEN AT
discrepancies so as to prevent its recurrence. WORKPLACE.
g. Mini Marathon & 100 mtr/ 200 mtr/ 400 mtr. Race at The Internal Complaints Committee is functioning in CCL in terms
KhelGaon, Ranchi : of Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013. The order of the Constitution
On 27th October 2018, under the outreach activities, an of the Committee has been uploaded in the Women Empowerment
awareness mini-marathon & 100 mtr/ 200 mtr/ 400 mtr. race Portal of CCL website. With reference to Section 22 of the Sexual
were organized at the Sports Academy, Khelgaon in which Harassment of Women at Workplace Act, 2013 the information
around 300 cadets of Jharkhand State Sports Promotion pertaining to FY 2018-19 are as follows:
Society (JSSPS) participated.
No of Complaints No. of cases
h. Awareness Gram Sabha : Action Taken
received Adjudicated
26 Awareness Sabhas were organized in 11 Areas and 1 Nil Nil —
Independent unit of CCL. The sabhas were attended by
the Mukhiya, Sarpanch, villagers, students, etc. During the
Awareness Sabhas, Mass-pledge was administered to the 36. CORPORATE GOVERNANCE
villagers and awareness was created on the ill effects of Your Company, as a Subsidiary of Coal India Ltd., believes that
corruption great Companies are built upon a rich legacy of fair, ethical and
transparent governance practices, many of which were in place
i. Awareness through Message in CUG mobile & Social even before they were mandated by adopting highest standards
Media( Twitter) : of professionalism, honesty, integrity and ethical behaviour and
other good governance practices. As a Subsidiary of a Maharatna
CCL Vigilance left no stone unturned in creating awareness
Company (Coal India Ltd.), the Corporate Governance practices
during the week and adopted some innovative ways in further followed by the Company are compatible with standards and
sensitizing the officials of CCL. best practices. The Corporate Governance is all about effective
57
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
management of relationships among constituents of various 1. Shri Gopal Singh, CMD,
stakeholders – shareholders, management, employees,
2. Shri Ashish Upadhyaya, IAS Jt. Secretary, MoC, Govt. of
customers, vendors, regulatory authorities and the community at
India, New Delhi,
large. Your Company strongly believes that this relationship can
be strengthened through corporate fairness, transparency and 3. Shri R.P. Srivastava, Director, (P&IR), CIL,
accountability. Your Company places prime importance on reliable
4. Shri D. K. Ghosh, Director (Fin.),CCL,
financial information, integrity, transparency, empowerment and
compliance with the laws in letter and spirit. 5. Shri R.S. Mahapatro, Director (P),CCL,
A report on Corporate Governance is placed at Annexure-I and a 6. Shri A.K. Mishra, Director (T/O),CCL,
Certification from Auditors regarding compliance of conditions of 7. Shri V. K. Srivastava, Director (T/P&P), CCL
Corporate Governance by your Company for the year ended 31st
March 2019 is placed at Annexure-II to this report. Non-Official Part Time Directors:
Further to superannuation of Shri A.K. Mishra, Director (Tech./ 5. Shri D. K. Ghosh, — Member
Director (Fin.), CCL
Oprn) on 30.11.2018, appointment of Shri Subhau Kashyap as
Non Official Part Time Director on 13.12.2018 and upon the 6. Shri A.K. Mishra, — Member
resignation of Shri Ashok Gupta, Non-Official Part Time Director Director (T/P&P), CCL
on 29.01.2019, the CCL Board at its 470th Meeting held on
28.02.2019, re-constituted Audit Committee of Directors with Further to appointment of Shri V.K. Srivastava as Director (Tech.),
the following Directors — CCL on 15.05.2018 and superannuation of Shri A.K. Mishra,
Director (Tech./Oprn) on 30.11.2018, the CCL Board at its 467th
1. Shri Subhau Kashyap, — Chairman
Meeting held on 13.12.2018, re-constituted Empowered Sub-
Non Official Part time Director
Committee of Directors with the following Directors-
2. Shri Ashish Upadhyay, — Member
Jt. Secretary, MoC 1. Shri Gopal Singh, — Chairman
CMD, CCL
3. Shri B. B. Goyal, — Member
Non-Official Part time Director 2. Shri Ashish Upadhyay, — Member
Jt. Secretary, MoC --
4. Shri R.P. Srivastava, — Permanent Invitee
D(P&IR), CIL, 3. Shri B.B. Goyal, — Member
5. Shri D.K. Ghosh, D(F), CCL, — Permanent Invitee Non-official Part time Director
60
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Further to appointment of Shri Subhau Kashyap as Non-Official and superannuation of Shri Subir Chandra, Director(Tech./Oprn.)
Part-Time Director on 13.12.2018, appointment of Shri Bhola Singh on 31.03.2018, the CCL Board at its 458th Meeting held on
as Director (Tech.), CCL on 15.01.2019 and upon the resignation of 23.04.2018, re-constituted Sustainable Development/Corporate
Shri Ashok Gupta, Non-Official Part Time Director on 29.01.2019, Social Responsibility Committee with the following Directors-
the CCL Board at its 470th Meeting held on 28.02.2019, re-
constituted Empowered Sub-Committee of Directors with the 1. Shri B.B. Goyal, — Chairman
Non-Official Part time Director
following Directors-
2. Shri Ashok Gupta, — Member
1. Shri Gopal Singh, — Chairman Non-Official Part time Director
CMD, CCL
3. Shri R.P. Srivastava, — Member
2. Shri Ashish Upadhyay, — Member D(P&IR), CIL
Jt. Secretary, MoC
4. Shri D. K. Ghosh, D(F), CCL — Member
3. Shri B.B. Goyal, — Member
Non-official Part time Director
5. Shri R.S. Mahapatro, D(P), CCL — Member
4. Shri Subhau Kashyap, — Member
Non-official Part time Director Further to appointment of Shri Subhau Kashyap as Non-Official
5. Shri D. K. Ghosh, — Member Part-Time Director on 13.12.2018, appointment of Shri Bhola
Director (Fin.), CCL Singh as Director (Tech.), CCL on 15.01.2019 and upon the
resignation of Shri Ashok Gupta, Non-Official Part Time Director
6. Shri V.K. Srivastava, — Member on 29.01.2019, the CCL Board at its 470th Meeting held on
Director (Tech.), CCL
28.02.2019, re-constituted Sustainable Development/Corporate
7. Shri Bhola Singh, — Member Social Responsibility Committee with the following Directors-
D(T/P&P), CCL
1. Shri B.B. Goyal, — Chairman
Non-Official Part time Director
During the year ended 31st March 2019, 08 (Eight) nos. of meetings
of ESCD were held on 26.05.2018, 13.07.2018, 17.09.2018, 2. Shri Subhau Kashyap, — Member
09.10.2018, 02.11.2018, 16.11.2018 and 13.12.2018 & 01.02.2019. Non-Official Part time Director
The details of attendance of Members at the Empowered Sub- 3. Shri R.P. Srivastava, D(P&IR), CIL — Member
committee of Directors of the Company held during the year
4. Shri D.K. Ghosh, D(F), CCL — Member
2018-19 is given in Annexure-I.
5. Shri R.S. Mahapatro, D(P), CCL — Member
C. Sustainable Development /Corporate Social
Responsibility Committee- During the year ended 31st March, 2019, 12 (twelve) nos.
of meeting of SD/CSR committee was held on 03.04.2018,
The Department of Public Enterprises, Ministry of Heavy
25.05.2018, 13.07.2018, 01.08.2018, 17.09.2018, 09.10.2018,
Industries & Public Enterprises, Government of India vide its 02.11.2018, 15.11.2018, 12.12.2018, 01.02.2019, 27.02.2019 &
Office Memorandum no: DPE’s O.M. no. 3(9)/ 2010 – DPE(MOU) 27.03.2019.
dated 23rd September, 2011 has issued guidelines on Sustainable
Development for Central Public Sector Enterprises (CPSEs). The details of attendance of Members at the Sustainable
Development /Corporate Social Responsibility Committee of
According to the Guideline, for effective implementation- Directors of the Company held during the year 2018-19 is given
in Annexure-I.
● Preparation of Sustainable Development (SD) Plan is needed.
● An Independent External Agency/Expert/ Consultant for D. Risk Management Committee :
evaluation of SD Projects to be made. Consequent upon superannuation of Shri Subir Chandra,
Director(Tech./Oprn.) on 31.03.2018, the CCL Board at its 458th
● A Board Level Designated Committee has to be constituted
Meeting held on 23.04.2018, re-constituted the Risk Management
to approve the SD Plan and oversee the SD performance.
Committee with the following Directors-
As per Section 135 of Companies Act 2013, CSR & Sustainable
1. Shri Bharat Bhushan Goyal, — Chairman
Development Committee should have at least 3 Directors –out Non-Official Part Time Director, CCL
of which at least One Director shall be an independent Director.
2. Shri Ashok Gupta, — Member
Consequent upon appointment of Shri Ashish Upadhyay, JS Non-Official Part Time Director, CCL
MoC on 05.02.2018 and Shri Ram Prakash Srivastav, Director
3. Shri R.S. Mahapatro, — Member
(P&IR), CIL on 19.02.2018 as official Part-Time Directors of CCL Director (P), CCL
61
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
4. Shri A.K. Mishra, — Member 1. Shri Bharat Bhushan Goyal, — Chairman
Director (T/P&P), CCL Non-Official Part Time Director,
Further on appointment of Shri V.K. Srivastava as Director (Tech.), 3. Shri R.P. Srivastava, — Member
Director (P&IR), CIL
CCL on 15.05.2018 and superannuation of Shri A.K. Mishra,
Director (Tech./Oprn),CCL on 30.11.2018, , the CCL Board 4. Shri R.S. Mahapatro, — Member
at its 467th Meeting held on 13.12.2018, re-constituted Risk Director (Personnel), CCL
Management Committee with the following Directors-
5. Shri A.K. Mishra, — Member
1. Shri Bharat Bhushan Goyal, — Chairman Director (Tech./P&P), CCL
Non-Official Part Time Director,
Further, Consequent upon appointment of Shri V.K. Srivastava as
2. Shri Ashok Gupta, — Member Director (Tech.),CCL on 15.05.2018 and superannuation of Shri
Non-Official Part Time Director,
A.K. Mishra, Director (Tech./Oprn),CCL on 30.11.2018, , the CCL
3. Shri R.S. Mahapatro, — Member Board at its 467th Meeting held on 13.12.2018, re-constituted the
Director (P), CCL Human Resource Committee with the following Directors-
1. Shri Bharat Bhushan Goyal, — Chairman
4. Shri V.K. Srivastava, — Member Non-Official Part Time Director,
Director(Tech.), CCL
2. Shri Ashok Gupta, — Member
5. Shri Jitendra Tiwari, GM(QM), CCL — Member Non-Official Part Time Director,
Further, Consequent upon appointment of Shri Subhau Kashyap 3. Shri R.P. Srivastava, — Member
as part–time Non-official Director on 13.12.2019, appointment Director (P&IR), CIL
of Shri Bhola Singh as Director(P&P), CCL on 15.01.2019 and 4. Shri R.S. Mahapatro, — Member
upon resignation of Shri Ashok Gupta, Non-official Part Time Director (Personnel), CCL
Director on 29.01.2019, the CCL Board at its 470th Meeting held
on 28.02.2019, re-constituted the Risk Management Committee 5. Shri V.K. Srivastava, — Member
Director (Tech.), CCL
with the following Directors-
Further, Consequent upon the appointment of Shri Subhau
1. Shri Subhau Kashyap, — Chairman Kashyap as Part–Time Non-Official Director on 13.12.2018
Non-Official Part Time Director,
and appointment of Shri Bhola Singh as Director(P&P), CCL on
2. Shri Bharat Bhushan Goyal, — Member 15.01.2019 and upon resignation of Shri Ashok Gupta, Non-Official
Non-Official Part Time Director, Part Time Director on 29.01.2019, the CCL Board at its 470th
Meeting held on 28.02.2019, re-constituted Human Resource
3. Shri R.S. Mahapatro, — Member Committee with the following Directors-
Director (P), CCL
1. Shri Bharat Bhushan Goyal, — Chairman
4. Shri V,K, Srivastava, — Member Non-Official Part Time Director,
Director(Tech./Oprn.), CCL
2. Shri Subhau Kashyap, — Member
5. Shri Bhola Singh, — Member Non-Official Part Time Director,
Director(T/P&P), CCL
3. Shri R.P. Srivastava, — Member
6. Shri Jitendra Tiwari, GM(QM), CCL — Member Director (P&IR), CIL
During the year ended 31st March, 2019, 04 (Four) nos. of 4. Shri R.S. Mahapatro, — Member
Director (Personnel), CCL
meetings of Risk Management Committee were held on
23.04.2018, 13.07.2018, 27.02.2019 & 06.03.2019. 5. Shri Bhola Singh, — Member
Director (Tech./P&P), CCL
The details of attendance of Members at the Risk Management
Committee of Directors of the Company held during the year 2018- During the year ended 31st March, 2019, 05 (Five) Nos. of
19 is given in Annexure-I. meeting of Human Resource Committee was held on 13.07.2018,
17.09.2018, 15.11.2018, 12.12.2018 & 27.12.2018.
E. Human Resource Committee:
The details of attendance of Members at the Human Resource
Further, the CCL Board at its 458th Meeting held on 23.04.2018, Committee of Directors of the Company held during the year
re-constituted the Human Resource Committee as under: 2018-19 is given in Annexure-I.
62
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
The following papers are annexed hereto for your consideration: (5) Extract of Annual Return as on financial year ended
31.03.2019, pursuant to section 92(3) of the Companies
(1) Addendum to the Directors’ Report pursuant to Section 134 Act, 2013 and rule 12(1) of the Companies (Management
of the Companies Act, 2013 giving: and Administration) Rules, 2014.
(a) Particulars of employees who were in receipt of (6) Addendum to the Director’s Report under section 134(2) and
remuneration `1,02,00,000/- per annum/ `8,50,000/- 134(3) of the Company’s Act, 2013 stating Statutory Auditor’s
per month or more, if employed for the year or part Report and Management’s reply thereon.
thereof.
(b) Information on Conservation of energy
For & on behalf of the Board of Directors
(c) details about research and development activities of
the Company. Sd/-
(d) details of foreign exchange earning & outgo. (Gopal Singh)
Chairman-cum-Managing Director
(e) Additional Disclosures of CSR activities. Central Coalfields Limited
63
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
ANNEXURE – I
1. Philosophy :
CCL management continues to strive for excellence in good governance and responsible management practices.
1. Constitution of a Board of Directors of appropriate composition, size, varied expertise and commitment to discharge its
responsibilities and duties,
2. Ensuring timely flow of information to the Board and its Committees to enable them to discharge their functions effectively,
5. Timely and balanced disclosure of all material information concerning the Company to all shareholders,
8. Fair and equitable treatment of all its stakeholders including employees, customers, shareholders and investors.
Your Company as a Corporate Citizen believes in adhering to the highest standards of Corporate Governance. CCL provides
appropriate access to information to the citizens of India under the provision of the Right to Information Act, 2005.
It is not merely compliance and simply a matter of creating checks and balances; it is an ongoing measure of superior delivery of
Company’s objectives with a view to translate opportunities into reality. It involves leveraging its resources and aligning its activities
to national need, shareholders benefit and employee growth, thereby delighting all its stakeholders, while minimizing the risks. The
primary objective is to create and adhere to a corporate culture of conscience and consciousness, transparency and openness,
fairness, accountability, propriety, equity, sustainable value creation, ethical practices and to develop capabilities and identify
opportunities that best serve the goal of value creation, thereby creating an outperforming organization.
2. BOARD OF DIRECTORS
The Board of Directors of your Company as on 31st March, 2019 comprised of Nine (9) Directors, viz. five (5) Functional Directors
(including CMD), two (2) Part-Time Official Director, two (2) Non-Official Part Time Directors and two (2) Permanent Invitees to the
Board.
During the financial year ended March 31st, 2019, 15 (Fifteen) nos. of Board meetings were held on 03.04.2018, 23.04.2018,
26.05.2018, 13/14.07.2018, 02.08.2018, 16.08.2018, 18.09.2018, 09.10.2018, 02.11.2018, 16.11.2018, 13.12.2018, 27.12.2018,
02.02.2019, 27/28.02.2019 and 27/28.03.2019. Thus, the maximum time gap between consecutive Board meetings was not more
than two calendar months.
The details of the composition of Board of Directors, Directors attendance at the Board meeting, number of Directorship in other
Companies and membership in other committees, etc. during the year are as follows:
64
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
5. Shri Ashish Upadhyay, Jt. Secy, MoC , Govt. of India Part-Time Official Director 15 13 SECL
6. Shri Ashok Gupta, Non-Official Part-time Director** Non-Official Part-time Director 12 08 Nil
7. Shri Bharat Bhushan Goyal Non-Official Part-time Director Non-Official Part-time Director 15 15 Ramagundam
Fertilizers and
Chemicals
Limited
8. Shri. R.P. Srivastava, Director (P&IR), CIL ## Part-time Official Director 15 13 (i) CIL, (ii) WCL
10. Shri. Subhau Kashyap Non-Official Part-time Director ## Non-Official Part-time Director 04 03 Nil
$ Shri Gopal Singh, CMD, CCL assumed the additional charge of CMD, BCCL from 19.10.2018. He was also entrusted the additional charge of CMD, CIL w.e.f.
01.09.2017.
* A.K. Mishra, Director (Tech/Oprn.) Superannuated from Service w.e.f. 30.11.2018.
** Ashok Gupta, Non-official Part-Time Director resigned from the post of Director of CCL w.e.f. 29.01.2019.
# V.K Srivastava, was appointed as Director (Technical) on the Board of CCL w.e.f. 15.05.2018.
## Subhau Kashyap was appointed as Non-official Part-Time Director on the Board of CCL w.e.f 13.12.2018.
@ Bhola Singh, was appointed as Director (Technical) on the Board of CCL w.e.f. 15.01.2019
65
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Shri R.S. Mahapatro Nil Director (Personnel) 4284235.90 518400.00 400134.00 0.00 175512.00 394326.00 1350.00 1041484.00 0.00 0.00 6815441.90
Service Contract
All the Directors of the Company are appointed by the President of India. The terms & conditions of all the whole time Functional Directors
are decided by the President of India in terms of Articles of Association of the Company.
B. Part-time Directors
No remuneration is paid to the Part-time Directors by the Company.
3. Board Committee
Empowered
Sub-Committee meeting
Name Remarks
Held during
Attended
the tenure
Shri Gopal Singh, CMD, CCL 08 08 Chairman
Shri Ashish Upadhyaya, Jt. Secy., MOC 08 08 Member
Shri Ashok Gupta, Non-Official Part Time Director 07 03 Member
Shri Bharat Bhushan Goyal, Non-Official Part Time Director 08 08 Member
Shri D.K. Ghosh, D(F), CCL 08 08 Member
Shri A.K. Mishra, D(T/P&P), CCL. 06 05 Member
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
● Preparation of Sustainable Development (SD) Plan is needed.
● An Independent External Agency/Expert/ Consultant for evaluation of SD Projects to be made.
● A Board Level Designated Committee has to be constituted to approve the SD Plan and oversee the SD performance.
As per Section 135 of Companies Act 2013, CSR & Sustainable Development Committee should have atleast 3 Directors –out of which
at least One Director shall be an independent Director.
Consequent upon appointment of Shri Ashish Upadhyay, JS MoC on 05.02.2018 and Shri Ram Prakash Srivastav, Director (P&IR), CIL
on 19.02.2018 as official Part-Time Directors of CCL and superannuation of Shri Subir Chandra, Director(Tech./Oprn.) on 31.03.2018,
the CCL Board at its 458th Meeting held on 23.04.2018, re-constituted Sustainable Development/Corporate Social Responsibility
Committee with the following Directors —
Consequent upon superannuation of Shri Subir Chandra, Director(Tech./Oprn.) on 31.03.2018, the CCL Board at its 458th Meeting
held on 23.04.2018, re-constituted the Risk Management Committee with the following Directors-
1. Shri Bharat Bhushan Goyal, Non-Official Part Time Director, CCL -- Chairman
2. Shri Ashok Gupta, Non-Official Part Time Director, CCL -- Member
3. Shri R.S. Mahapatro, Director (P), CCL -- Member
4. Shri A.K. Mishra, Director (T/P&P), CCL -- Member
5. Shri Jitendra Tiwari, GM(Coordination), Chief Risk Officer -- Member
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Further on appointment of Shri V.K. Srivastava as Director (Tech.), CCL on 15.05.2018 and superannuation of Shri A.K. Mishra, Director
(Tech./Oprn),CCL on 30.11.2018, , the CCL Board at its 467th Meeting held on 13.12.2018, re-constituted Risk Management Committee
with the following Directors-
1. Shri Bharat Bhushan Goyal, Non-Official Part Time Director, -- Chairman
2. Shri Ashok Gupta, Non-Official Part Time Director, -- Member
3. Shri R.S. Mahapatro, Director (P), CCL -- Member
4. Shri V.K. Srivastava, Director(Tech.), CCL -- Member
5. Shri Jitendra Tiwari, GM(QM), CCL -- Member
Further, Consequent upon appointment of Shri Subhau Kashyap as part–time Non-official Director on 13.12.2018, appointment of Shri Bhola
Singh as Director(P&P), CCL on 15.01.2019 and upon resignation of Shri Ashok Gupta, Non-official Part Time Director on 29.01.2019,
the CCL Board at its 470th Meeting held on 28.02.2019, re-constituted the Risk Management Committee with the following Directors-
3. Shri Subhau Kashyap, Non-Official Part Time Director, -- Chairman
4. Shri Bharat Bhushan Goyal, Non-Official Part Time Director, -- Member
3. Shri R.S. Mahapatro, Director (P), CCL -- Member
4. Shri V,K, Srivastava, Director(Tech./Oprn.), CCL -- Member
5. Shri Bhola Singh, Director(T/P&P), CCL -- Member
6. Shri Jitendra Tiwari, GM(QM), CCL -- Member
During the year ended 31st March, 2019, 04 (Four) nos. of meetings of Risk Management Committee were held on 23.04.2018,
13.07.2018, 27.02.2019 & 06.03.2019.
The details of attendance of Members at the Risk Management Committee Meetings of the Company held during the year 2018-19 are
as under:
Risk Management Committee
meeting
Name Remarks
Held during
Attended
the tenure
Shri Bharat Bhushan Goyal, Non-Official Part Time Director 03 03 Chairman
Shri Ashok Gupta, Non-Official Part Time Director, 02 02 Member
Shri R.S. Mahapatro, Director (Personnel) 02 02 Member
Shri A.K. Mishra, Director(Tech./P&P), CCL 02 02 Member
Shri V.K. Srivastava, Director(T/O) 01 01 Member
During the year ended 31st March, 2019, 05 (Five) Nos. of meeting of Human Resource Committee was held on 13.07.2018, 17.09.2018,
15.11.2018, 12.12.2018 & 27.12.2018
The details of attendance of Members at the Human Resource Committee Meetings of the Company held during the year 2018-19 are
as under:
Human Resource
Remarks
Committee meeting
Name Held
during the Attended
tenure
Shri Bharat Bhushan Goyal, Non-Official Part Time Director 05 05 Chairman
Shri Ashok Gupta, Non-Official Part Time Director, 05 02 Member
Shri R.P. Srivastava, D(P&IR), CIL 05 05 Member
Shri R.S. Mahapatro, D(P) 05 05 Member
Shri A.K. Mishra, Director (Tech./P&P), CCL 03 03 Member
Statutory Auditors
Under Section 139 of the Companies Act, 2013 the following Chartered Accountants Firms were appointed by the Comptroller and
Auditor General of India for auditing the Financial Statements of your Company for the year 2018-19:
A. Statutory Auditors:
M/s K.C. Tak & Co.
New Ananthpur,
Ranchi, Jharkhand
Branch Auditors:
1. M/s V. Rohatgi & Co.
1st Floor, Sarjana Building, Main Road,
Ranchi, Jharkhand
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
D. Cost Auditors:
As per Companies Act, 2013 the following Cost Auditors was appointed by the Board of Directors in its 430th Board Meeting vide item
No. 4(6) dated 28.09.2016 for conducting Cost Audit as required under the Act for the year 2016-17, 2017-18, 2018-19 & 2018-19:
E. Secretarial Auditors:
Under Section 204 of the Companies Act, 2013 the following Company Secretary Firm was appointed by the Board of Directors in its
474th Board Meeting vide item No. 3(5) dated 29.06.2019 for conducting Secretarial Audit as required under the Act for the year 2018-
19, 2019-20 and 2020-21.
Secretarial Auditors:
M/s. Kant Sanat & Associates
1st Floor, Raghunandan Sahu Bhawan,
Beside Durian Furniture, Argora- Kadru Road,
Opp. Ashok Nagar, Ranchi-834002
Annual General Meeting:
Particulars of the Annual General Meetings of the shareholders held during last 3 years :
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
4. Disclosures
Related Party Transactions
As per the disclosures given by the Directors of the Company, there was no material related party transactions that has potential conflicts
with the interests of the Company at large.
Code of Conduct for Directors and Senior Executives
A Code of Conduct for Directors and Senior Executives was placed before the Board of Directors of CCL at their 348th meeting held
on 2.07.08 and has been uploaded on the website of CCL www.centralcoalfields.in. An Acknowledgement of receipt of code of conduct
and Affirmation regarding compliance with the same for the year ended March’2018 has been done.
Code of Conduct for Prevention of Insider Trading pursuant to Reg. 12(1) of the SEBI(Prohibition of Insider Trading) Regulations 1992
and as amended in 2008:
Pursuant to office order no. CIL:IX(D):04007:2010:1856 dtd.30.11/01.12.2010 of CGM(F)/Company Secretary, CIL , the Code of Conduct
for prevention of Insider Trading as per Reg 12(1) of the SEBI (Prohibition of Insider Trading) Regulations 1992 and as amended in 2008,
has been circulated among the designated employees of the Company, which includes Directors, Chief Vigilance Officer, all Executive
Directors, all CGM’s & GM’s and all executives working in the designated departments of the Company.
Delegation of Power:
Delegation of power of CMD & Board of Directors was revised on 367th meeting of Board of Directors held on 11.05.10.As per direction
of CVC and CVO, CCL, Delegation of Powers have been uploaded on the websites of CCL : www.centralcoalfields.in. DoP of Functional
Directors as well as Area CGM/GM have been revised and placed in 384th Board Meeting held on 24/01/2012 for information. The DoP
of Divisional Directors in respect of change in specification/Quantity in awarded contracts was changed & placed in 418th Board Meeting
held on 31.10.2015 for information. Modification of DoP of ED (Vig.)/CVO, CCL was placed in 421st Board meeting held on 04.02.2016
for information. The same has been up- loaded in the CCL website. Further DoP of CGMs/GMs of Piparwar Area & Magadh Amarpali
Area in respect of ‘Contact for Capital/Revenue Works” was enhanced & placed in 422nd Board Meeting held on 15/16.03.2016 for
information. The modification of existing DoP of CGMs/GMs of Area and CWS Barkakana was placed in 429th Board meeting held on
24/25.08.2016 for information.
Accounting Treatment:
The Financial Statements are prepared in accordance with applicable Indian Accounting Standards (IND-AS) and relevant presentational
requirements of the Companies Act, 2013.
Risk Management:
As a part of strategic business policy, due importance is given to the process of risk identification, assessment and mitigation control
in different functional areas of the organization. Inherent risk due to external and internal factors is assessed and necessary mitigation
control measures are taken through policies and systems to manage the risk effectively.
5. Means of communication:
Operational & Financial Performance of the Company are published in Leading English Newspapers and also in local dailies. In addition
to above, the financial results are also displayed in the Company’s Website.
6. Audit qualifications:
Management Reply to the Statutory Auditors’ observation on the Accounts of the Company and Secretarial auditors report for the year
ended 31st March,2018 are furnished as an Annexure to Directors’ Report. Comments of the Comptroller and Auditor General of India
Under Section 143(6)(b) of the Companies Act, 2013 on the Financial Statements of Central Coalfields Limited for the year ended 31st
March, 2018 is also enclosed.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Directors are fully aware of the Company’s business model. The risk profile of the Company’s business has been well defined by the
Board and the Board Members are appraised periodically on the same.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Annexure – IA
Profile of Directors
Board of Directors of CCL as on 31.03.2019 consists of CMD, D(T-O), D(F), D(P), D(T/P&P), two Govt./CIL Nominee Directors, two Non-
official Part Time Directors and two permanent Invitees, one from Chief Operations Manager, EC Rly, Hajipur and one from Secretary,
Mines & Geology, Govt. of Jharkhand, Ranchi.
Brief resume of all Directors, their qualification, domain, experience & expertise, their membership in professional bodies, Chairman/
Directorship in other companies etc are given below:
FUNCTIONAL DIRECTORS:
SHRI GOPAL SINGH: CHAIRMAN CUM MANAGING DIRECTOR
Sri Gopal Singh is heading Central Coalfields Ltd. (CCL) since March, 2012 as Chairman-cum-Managing
Director (CMD). Mr. Singh graduated from Indian School of Mines, Dhanbad in 1982. He is M.Tech in Opencast
Mining and MBA with specialization in Finance. He is presently a research scholar in BIT Mesra.
His meticulous planning, coordination and monitoring has resulted in turnaround of CCL’s fortune. He has
redefined the priorities of the company in view of the prevailing socio economic milieu of Jharkhand. It is
now centered on Inclusive Growth through a series of initiatives collectively known as KAYAKALP MODEL
of GOVERNANCE. Kayakalp Model is based on, inter alia, transparent, fair and philanthropic approach for
team building and motivation of stakeholders, development of subordinates through intensive training and
democratic planning and autocratic control.
He is a philanthropist and takes keen interest in social work for betterment of underprivileged sections of society. Under his leadership
CCL has launched several pioneering CSR initiatives like World Class Sports Academy at Hotwar, CCL Ke Lal & CCL Ki Ladli, Kayakalp
Public School, BPL Hospital, ITI, Bhurkunda, Multi Skill Development Centre, Divyang Centres for differently abled etc.
Sri. Singh is striving to make CCL a “Zero Grievance Company”. To achieve this Samadhan Kendras (Single Window Grievance
Redressal Cell) have been established and are running successfully in CCL headquarter as well as in all Areas.
These initiatives have resulted in complete transformation of the CCL: 6 greenfield coal mining projects and 2 long delayed railway
infrastructure projects have been commissioned, which has no parallel in the coal industry. This includes the mega projects of Magadh
OC (51 / 70 MTY- proposed largest coal mine of Asia) and Amrapali OC (25/35 MTY).
Sri Singh is a recipient of several awards for his exceptional contribution to the coal industry. He is associated with various professional
bodies viz. MGMI, IEI, IMEJ. He underwent training in Japan under Colombo Plan in 1998 and led senior manager's team to China, USA
& UK. Under his able guidance and vision, the company is poised to meet the coal demand of the nation.
Shri Dipak Kumar Ghosh took over as Director (Finance), Central Coalfields Limited (CCL) on 6th July, 2013.
He has rendered about 37 years of service in Coal Industries in the field of finance in various capacities
especially in CCL & ECL.
He is born in 1959 at Kolkata and had his graduation in Commerce from Calcutta University. He acquired
his professional qualification from the Institute of Cost Accountants of India and also from the Institute of
Company Secretaries of India.
Besides being a pioneer in the field of Corporate Finance, Costing, Budget and Controls, he has been entrusted
with the responsibilities of Systems Department w.e.f. 27th January, 2014. Again he has also given the charge
of Director Incharge (Sales & Marketing), CCL w.e.f. 1st July, 2014.
Under his leadership company has seen excellent financial results and sales volume have grown up radically. New IT initiatives have
been undertaken by the System deptt. under his capable guidance & leadership.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
SHRI BHOLA SINGH: DIRECTOR (TECHNICAL-PROJECT AND PLANNING)
Shri Bhola Singh has joined as Director (Technical), CCL on 15th Jan 2019. Born in January 1964, Shri Singh
completed B.Tech. (Hons.) in Mining Engineering from IIT, Kharagpur. Shri Singh is a professional mining
engineer with 32 years of experience in reputed public and private sector organizations.
Shri Bhola Singh started his career with Northern Coalfields Limited (NCL) in 1987 as Graduate Engineer
Trainee. Working at NCL at early stage of career, benefited him professionally in achieving excellence in
production, productivity, safety, environment and overall mine management. Sri Singh introduced Cast Blasting
& Eco-friendly Electronic detonation in NCL mines too. He has published many technical papers on blasting
and rock fragmentation in journals of national and international repute.
In 2008, Shri Bhola Singh joined AES ( USA based MNC ) as the Head of a Greenfield mining project in Chhattisgarh. Later on, he
worked for Manoharpur Coal Blocks allotted to Odisha Power Generation Corporation (OPGC).
Before joining at CCL, Shri Singh has to his credit of working as Project Director at Sasan Power Limited having the distinction of being
the country's first Ultra Mega Power Project (6X660MW) catered through a highly mechanized Moher & Moher Amlori Extension coal
mining Project at Singrauli, Madhya Pradesh. Being at the helm of the affairs, Sri Singh was responsible for delivering coal targets
both qualitatively and quantitatively to maintain sustainable power generation which culminated in adoring the rare feat of supplying
electricity to over 40 million customers across 7 states at the cheapest tariff in the world. During his stint, the coal mine touched new
benchmarks and got prestigious National Safety Award from the Hon’ble President of India in 2017.
Central Coal fields Limited is going to be immensely benefitted from the professional acumen and technical expertise of Shri Bhola
Singh. He is poised to take the organization in the most profitable direction and position of excellence through his leadership skills, open
communication, teamwork and positive approach.
Mr. Radhashyam Mahapatro took over as Director (Personnel), Central Coalfields Ltd. (a Subsidiaries of Coal
India Ltd.), on and from 8th June, 2015. Before taking over as Director (Pers.), CCL, he has more than 29
years of experience in Power, Oil and Coal Sectors in different capacities. Shri R. S. Mahapatro successfully
shouldered varied and higher responsibilities such as General Manager (Personnel – Industrial Relation &
Recruitment) of CCL, Asstt. GM (HR), EIL & Sr. Manager (HR), NHPC. He is a physics graduate from Khallikote
College, Behrampur, Odisha and did his Post Graduation in Personnel Management and Industrial Relation
and Labour Welfare. Shri Mahapatro has handled many areas of HR functions, liaison and coordination. During
his tenure in NHPC, EIL and CCL, Ranchi, he had worked for introduction of Productive work culture. Many
awards for HR, Rajbhasha, Environment have been bestowed upon him during his working in various PSUs.
Shri Mahapatro, as Director (Personnel) from June, 2015 has brought a paradigm shift in HR functioning due to his initiatives in the
areas of IR, Welfare and CSR. The company has earned good image which has brought laurels to the Company. He has undergone
training in advance management programmee in Germany, Sweden on ‘Advanced Technology and organizational culture’, sponsored
by Coal India Ltd.
Due to his able guidance and contribution in the field of Human Resource and CSR, CCL has been awarded with “Greentech HR Gold
Award- for innovation in recruitment” by Greentech Foundation, “Excellence in CSR” awards and “HR and Leadership awards” 2016.
Mr. Mahapatro’s areas of interest includes improving productivity, rural development, poverty alleviation, environment and ecology. He
has been passionately working for reform in administration to make it responsive to the need and aspirations of the communities. His
forte is transparency & leadership with teamwork.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
He has served at the State level as Secretary and Principal Secretary of various departments including Home,
Higher Education and Finance for many years.
He has academic bent of mind and while being in the service he continued his pursuit of education and completed post-graduation in
Economics and L.L.B. He also did his Master’s degree in Public Administration from Maxwell School of Citizenship, Syracuse University
in U.S.A.
He has been working as Joint Secretary, Ministry of Coal since 1st February, 2018 and has been nominated on the Board of CCL from
5th February, 2018. As Joint Secretary, Coal, he has been instrumental in developing systems by application of space technology for
curbing the menace of illegal mining.
SHRI R.P. SRIVASTAVA: DIRECTOR (PERSONNEL & IR), CIL NOMINEE DIRECTOR
Shri R.P. Srivastava took over the charges of Director (Personnel & Industrial Relations), Coal India Limited
on 31.01.2018. Prior to this he was Executive Director (Corporate Services) in Personnel Directorate in
Rashtriya Ispat Nigam Ltd., Visakhapatnam. He pursued Post Graduate Diploma in Management from MDI,
Gurgaon, one of the Premier institutes of India.
After getting selected through an all-India competitive examination conducted by Steel Authority of India Ltd
(SAIL), Shri R.P. Srivastava began his professional career in the field of Human Resources, over 35 years
ago as a Management Trainee (Administration) in Visakhapatnam Steel Plant, Rashtriya Ispat Nigam Ltd.
During his stint at RINL in different capacities, he has been credited for implementation of various HR initiatives. He has been instrumental
in framing various policies, guidelines and procedures keeping in view the organisational requirement and expectations of the employees
for systematic administration in Human Resources Management function of the organisation. Shri Srivastava, has continually strived
for giving a comfortable environment to the employees of RINL for their growth as well as creating opportunities for their development
by means of updating and formulating Personnel policies, and simultaneously upholding the interest of organisation.
He holds expertise in Learning & Development and has pioneered the concept of Knowledge Management & TQM in RINL/VSP. He
played a pivotal role in HR Planning, Recruitment & Selection, Training and Development of employees, implementation of Official
Language, Industrial Relations, Wage & Salary Administration. He was also instrumental in carrying out various activities for the dramatic
turnaround of the company mainly through several tailor made Communication exercises and Confidence Building Measures/sessions
to bring in requisite mind set among employees
His dedicated role in Corporate Social Responsibility, Swatcch Bharat activities, Strategic Management Issues, Township Management,
Land & Estate Matters, welfare of Displaced Persons (Project Affected Persons), implementation of Presidential Directives and other
Statutory requirements and several other areas of importance are of immense significance. Shri R.P. Srivastava, Director (Personnel
& IR), CIL was also appointed as part-time Director on the Board of CCL vice Shri C.K. Dey, Director (Finance), CIL w.e.f. 19.2.2018
and on the Board of WCL vice Shri Shri S.N. Prasad, Director (Marketing), CIL w.e.f. 19.2.2018. He is also a member of the Board
of Trustees of Coal Mines Provident Fund Organisation and member of Central Advisory Contract Labour Board, Ministry of Labour &
Employment, Govt. of India.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
PERMANENT INVITEES
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Annexure –II
Kant Sanat & Associates
Company Secretary
To,
The Members,
Central Coalfields Limited,
Ranchi
1. We have examined the compliance of conditions of Corporate Governance by the Company for the year ended 31st March, 2019,
although Clause 49 of the Listing Agreement is not applicable to the Company. The Company is a subsidiary of Coal India Limited
which is listed.
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 conditions of Corporate
Governance. It is neither an audit, nor an expression of opinion on the financial statements of the Company.
3. In our opinion and to the best of our information and according to the explanations given to us and representations made by the
management, we certify that the Company has complied with the conditions of Corporate Governance, except the appointment
of Woman Director and the appointment of required number of Non-Official Part-time Directors, as per the Department of Public
Enterprises Guidelines on Corporate Governance for Central Public Sector Enterprises, the number of Non-Official Part-time
Directors on a Board should be 50% of the Board, at the end of the reporting period the number of Non-Official Part-time Director
of the company is two.
4. We further state that such compliance is neither an assurance as to future viability of the Company nor the efficiency or effectiveness
with which the Management has conducted the affairs of the Company
Sd/-
(CS Sanat Kumar Mishra)
Partner
Co P. No. 8705
Place : Ranchi Membership No. 17836
Date : 16th July, 2019
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Annexure – III
FORM NO. MR – 3
SECRETARIAL AUDIT REPORT
(FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2019)
[Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies Appointment and
Remuneration Personnel Rules, 2014]
To,
The Members,
Central Coalfields Limited
Darbhanga House, Ranchi
Jharkhand.
We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate
practices by the CENTRAL COALFIELDS LIMITED (hereinafter called the Company). Secretarial Audit was conducted in a manner that
provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing my opinion thereon. Based
on our verification of the Company books, papers, minute books, forms and returns filed and other records maintained by the Company
and also the information provided by the Company and its officers during the conduct of secretarial audit, we hereby report that in our
opinion, the Company has, during the audit period ended on 31st March,2019 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:
We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the
financial year ended on 31st March, 2019 according to the provisions of:
1. The Companies Act, 2013 and the rules made there under;
2. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made there under;
3. Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’);
4. Policy on determination of Materiality, prescribed by the holding Company;
5. The Secretarial Slandered 1 and 2 issued by the Institute of Company Secretaries of India;
6. Guidelines on Corporate Governance for Central Public Sector Enterprises issued by the Department of Public Enterprises,
Government of India;
7. Notification of Ministry of Coal, Govt. of India for Constitution of Board.
As per the information provided by the Company it has devised proper system and ensured compliance of the provisions of the specific
laws applicable to it. (List of applicable laws attached herewith as Annexure I);
Company is a Private Limited Company under Cl.4 of Articles of Association and is a Wholly Owned Subsidiary of Coal India Limited with
04 (four) shareholders viz. Coal India Ltd., Chairman, ClL, Director Personnel, CIL and Chairman/ Managing Director, CCL. However, the
Company is a Public Company as per section 2(71) of the Companies act, 2013, hence all provisions of a Public Company are applicable.
There is one Subsidiary Company, Jharkhand Central Railway Limited, with 64% equity participation of the Company, having total paid-
up Capital Rs.50 Crore,
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.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Annual General Meeting for the year 2017-18 was called at a shorter notice, that specified in section 101 sub section 1 of the companies
Act 2013 with due consent taken from the members.
As per section 134 (3) (f) (ii) Directors report for the financial year 2017-18 contains the Management reply on observations made by
the Secretarial Auditor.
During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards,
etc. mentioned above with the following observations:
a) With the approval of the President of India, Ministry of Coal, Government of India, vide letter no. 21/35/2005-ASO (iv) dated 06
June, 2008 has reconstituted the Board of the Company consisting Five Functional Directors, Five Non –official Directors and two
part time Directors representing Government, thus making the total number of Directors twelve and two permanent invitees one
from Eastern Central Railways and another the Secretary Mines & Geology, Govt. of Jharkhand. Further, as per the Department
of Public Enterprises Guidelines on Corporate Governance for Central Public Sector Enterprises, the number of Non-Official Part-
time Directors on a Board should be 50% of the Board.; however:
(i) At the end of financial year 2018-19, Nine Directors constitute the Board, with Five Functional Directors, two Government
nominee Directors as Part time Directors and two Non-official Part-time Directors.
(ii) As per the record, the attendance of permanent invitees is very less;
b) As per provisions of the Act, Company require to appoint Women Director;
c) The Company was required to spend Rs. 45.78 Crore for CSR activities during the year; however, the actual CSR expenditure
booked in the financial year is Rs.41.14 Crore. The total amount of Rs.4.64 Crore remained unspent towards the CSR activities
during the year.
We further report that company is in process of strengthening the systems and processes of record keeping and compliance of the laws,
rules, regulations and guidelines prescribed and there are adequate systems and processes in the Company, commensurate with the
size and operations to monitor and ensure compliance.
For Kant Sanat & Associates
Sd/-
(CS Sanat Kumar Mishra)
Partner
C. P. No. 8705
Place : Ranchi Membership No. 17836
Date : 16.07.2019
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Annexure - I
1. The Mines Act, 1952;
2. Mines Concession Rules, 1960;
3. The Mines Rules, 1955;
4. Coal Mines Regulations, 1957;
5. Coal Mines Conservation & Development Act, 1974;
6. The Mines Rescue Rules, 1985;
7. The Mines Vocational Training Rules, 1966;
8. The Indian Electricity Rules, 1956;
9. The Explosive Act, 1884;
10. The Explosive Rules, 2008;
11. Coal Mines Pension Scheme, 1998;
12. The Payment of Wages (Mines) Rules, 1956;
13. Coal Mines Provident (Miscellaneous Provisions) Act, 1948;
14. Mines and Minerals (Regulation and Development) Act, 1957;
15. Mines (Posting of Abstracts) Rules, 1954;
16. Payment of Undisbursed Wages (Mines) Rules, 1989;
17. Indian Bureau of. Mines, Sr. Technical Assistant (Survey), Jr. Technical Assistant (Survey) an Junior Survey Recruitment Rules, 1990’;
18. The Coal Mines Pit Head Bath Rules, 1959;
19. Mines Crèches Rules, 1966;
20. Indian Bureau of Mines (Electrical Supervisor and Electrician) Recruitment Rules, 1990;
21. The Maternity Benefit (Mines) Rules, 1963;
22. Coking Coal Mines (Nationalisation) Act, 1972;
23. Coal Mines (Nationalisation) Act, 1973;
24. The Coal Mines (Nationalisation) Amendment Act, 1993;
25. The Coal Mines (Taking Over Management) Act, 1973;
26. The Coal Mines (Special Provisions) 2nd ordinance, 2014;
27. The Coal Mines Special Provisions Rules, 2014
28. The Coal Bearing Areas, (Acquisition and Development) Act, 1957;
29. The Coal Mines Nationalisation (Provident Fund, Gratuity, Pension, Welfare fund) Rules, 1978;
30. Metalliferous Mines Regulations, 1961;
31. Mining Leases (Modification of Terms) Rules, 1956;
32. Auction by Competitive bidding of coal mines rules, 2012;
33. Coal Mines Advisory Board Rules, 1973;
34. The Environment (Protection)Act, 1986;
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
35. Industrial Dispute Act, 1947
36. Payment of Wages Act, 1936;
37. Trade Union Act, 1926;
38. Workmen Compensation Act, 1923;
39. Hazardous Wastes (Management Handling and Trans- Boundary Movement) Rules, 2008;
40. The Water (Prevention and Control of Pollution) Act, 1974;
41. The Air (Prevention and Control of Pollution) Act, 1981;
42. The Factories Act, 1948;
43. The Minimum Wages Act, 1948;
44. The Employees State Insurance Act, 1948;
45. The Employees Provident Fund and Miscellaneous Provisions Act, 1952;
46. Payment of Bonus Act, 1965;
47. The Payment of Gratuity Act, 1972;
48. The Contract Labour (Prohibition and Regulation) Act, 1986;
49. The Industrial Employment (Standing Orders) Act, 1946;
50. The Employees Compensation Act, 1923;
51. The Apprentices Act, 1961;
52. The Equal Remuneration Act, 1976;
53. Colliery Control Order, 2000;
54. Colliery Control Rules, 2004;
55. The Sexual Harassment of Women at work place (Prevention, Prohibition and Redressed) Act, 2013.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Annexure - II
To,
The Members
CENTRAL COALFIELDS LIMITED
1. Maintenance of Secretarial record is the responsibility of the management of the company. Our responsibility is to express an
opinion on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness
of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in
secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and books of accounts of the company.
4. Where ever required, we have obtained the Management Representation about the compliance of laws, rules, and regulations,
and happening of events etc.
5. The compliance of pro visions of Corporate and other applicable laws, rules, regulations, standards is responsibility of management.
Our examination was limited to the verification of procedure on test basis.
6. The Secretarial Audit report is neither an assurance as to future viability of the company nor of the efficacy or effectiveness with
which the management has conducted the affairs of the company.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
As per section 204 of the Companies Act’ 2013, M/s. Kant Sanat & Associates has been appointed to conduct Secretarial Audit of M/s.
Central Coalfields Ltd. Ranchi. The management reply in respect of the observation of Secretarial Audit Repot as submitted by the
Secretarial Auditor is as under:
Sl.
SECRETARIAL AUDITOR’S OBSERVATION MANAGEMENT’S REPLY
No.
(a) With the approval of the President of India, Ministry of All the Directors in Govt. Company are being appointed by Ministry of
Coal, Government of India, vide letter no. 21/35/2005- Coal.
ASO (iv) dated 06 June, 2008 has reconstituted the
Board of the Company consisting Five Functional However, A letter from MOC, GOI has been received vide no 21/33/2018-
Directors, Five Non–official Directors and two part BA (part II) (ii) dated 10th July communicating the approval of the
time Directors representing Government, thus President for appointment of 3 Non-official Part-time Director on the
making the total number of Directors twelve and
two permanent invitees one from Eastern Central Board of CCL for a period of 3 years w.e.f. the date of notification of
Railways and another the Secretary Mines & their appointment.
Geology, Govt. of Jharkhand. Further, as per the
Department of Public Enterprises Guidelines on Further, notice and agenda paper were sent to all Board Members
Corporate Governance for Central Public Sector including permanent invitee
Enterprises, the number of Non-Official Part-time
Directors on a Board should be 50% of the Board.;
however:
(i) At the end of financial year 2018-19, Nine
Directors constitute the Board, with Five
Functional Directors, two Government nominee
Directors as Part time Directors and two Non-
official Part-time Directors.
(ii) As per the record, the attendance of permanent
invitees is very less;
(c) The Company was required to spend Rs. 45.78 The reasons for the unspent CSR fund are as follows :
Crore for CSR activities during the year; however,
the actual CSR expenditure booked in the financial 1. Utilization Certificates are not being received from Govt. agencies
year is Rs.41.14 Crore. The total amount of Rs.4.64 in spite of regular persuasions. This is reflecting as advance in the
Crore remained unspent towards the CSR activities books of accounts.
during the year
2. CSR projects sanctioned earlier but which, for one or other reason
could not be implemented. Hence, fund is reflected as an unspent
amount. Major reasons being land problems, non-availability of
NOC and hindrance by stakeholders etc.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Annexure – IV
The preparation of Financial Statements of Central Coalfields Limited for the year ended 31 March 2019 in accordance with the financial
reporting framework prescribed under the Companies Act, 2013 (Act) is the responsibility of the management of the Company. The
statutory auditors appointed by the Comptroller and Auditor General of India under section 139(5) of the Act is responsible for expressing
opinion on the financial statements under section 143 of the Act based on independent audit 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 Revised Audit Report dated 11.06.2019.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under section 143(6)(a) of the Act of
the financial statements of Central Coalfields Limited for the year ended 31 March 2019. This supplementary audit has been carried out
independently without access to the working papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors
and company personnel and a selective examination of some of the accounting records. On the basis of my audit nothing significant
has come to my knowledge which would give rise to any comment upon or supplement to statutory auditors' report.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Annexure – IV
The preparation of Consolidated Financial Statements of Central Coalfields Limited for the year ended 31 March 2019 in accordance
with the financial reporting framework prescribed under the Companies Act, 2013 (Act) is the responsibility of the management of the
company. The statutory auditors appointed by the Comptroller and Auditor General of India under section 139 (5) read with section
129(4) of the Act is responsible for expressing opinion on the financial statements under section 143 read with section 129(4) of the Act
based on independent audit 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 Revised Audit Report dated 11.06.2019.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under section 143(6)(a) read with
section 129(4) of the Act of the Consolidated Financial Statements of Central Coalfields Limited for the year ended 31 March 2019
which includes the standalone financial statements of the Jharkhand Central Railway Limited for the year ended on that date. This
supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited
primarily to inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records.
On the basis of my audit nothing significant has come to my knowledge which would give rise to any comment upon or supplement to
statutory auditors' report.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Annexure – V
List of employees drawing ` 1.02 crore* (One crore and two lakh rupees) or more
during the year 2018-19
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Annexure – VI
CONSERVATION OF ENERGY
(i) the steps taken or impact on conservation of energy in the year 2018-19;
A. Steps taken for conservation of electrical energy power as below
a. Installation of capacitor bank at load points for reduction in Maximum Demand.
b. By replacing multi level pumping into single stage pumping for direct discharge to surface.
c. Replacement of conventional lights by LED light.
d. Replacement of old and surveyed –off electrical machines by energy efficient electrical machines/ appliances (Five star
rating)
B. Its Impact
By adopting the above measures :
a. We are continuously maintaining the trend of reduction of Specific energy consumption.
b. Power factor at receiveing points of DVC supply have improved. This has enhanced the life and smooth running of electrical
machines working in the field.
(ii) The steps taken by the company for utilizing alternate sources or energy;
Action has also been taken for installation of Solar plants on roof tops as green energy to reduce day time demand. M/S BHEL has
successfully commissioned 400 kWp solar power plant at Darbhanga house CCL HQ. Work order has been given for roof top grid connected
solar power plant of total capacity 220 KWp, 125 KWp and 50 KWp at Gandhi Nagar Hospital, CRS Barkakana and Executive Hostel,
Kathara respectively, which are under installation. Apart from Rooftop Solar Projects, CCL has also given Work Order for PMC services to
M/s NTPC for 20MWp solar Power Plant Within the bulb area of RLS of CHP/CPP, Piparwar, which is expected to be installed in 2019-20.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Annexure – VII
1. Specific area in which R&D carried out by the Company The Company does not have its own Research & Development
(R&D) set up. CMPDIL, a subsidiary of Coal India Ltd. (CIL)
does the R&D work centrally for all the subsidiaries of CIL.
2. Benefits derived as a result of the above R&D NA
(a) Capital
(b) Recurring
(c) Total
1. Efforts, in brief, made towards technology absorption, adaptation and innovation Nil
2. Benefits derived as a result of the above efforts, e.g. product improvement, cost reduction, product development, Nil
import substitution, etc.
3. In case of imported technology (imported during the last 5 years reckoned from the beginning of the financial
year), following information may be furnished:
(i) Technology imported Nil
If not fully absorbed, areas where this has not taken place, reasons therefore and future plans of action. Nil
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Annexure – VIII
(i) Activities relating to exports, initiatives taken to increase Company is not engaged in export activities
exports, development of new export markets for products,
services and export plans.
(ii) Total Foreign Exchange used and earned
(` in Cr.)
91
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Annexure – IX
With rapidly changing corporate environment & more operational freedom, Coal India has adopted CSR as a strategic tool for
sustainable development. Corporate Social Responsibility (CSR) is a business approach that contributes to sustainable development
by delivering economic, social and environmental benefits for all stakeholders. CCL is a Mini Ratna PSU, a Subsidiary of Coal India
Limited (CIL). The company has made a spectacular turn-around by establishing milestones in terms of Production, Productivity,
Profit and People’s Care i.e. 4 Ps. It is the largest mining company in Jharkhand with presence in eight of its districts. For CCL,
CSR not only means investment of funds for social activities, but also integration of business processes with social upliftment. A
stable social environment is a pre-requisite for business investment and industrial operations which exactly fits into the vision of
CCL.
Central Coalfields Limited (CCL) has been able to break conventional thresholds and perform way beyond expectations, during the
period 2012-19. Large scale and long lasting organizational transformations have been effected , long pending complex problems
have been solved , highest ever production has been achieved, environmental and forestry clearances have been obtained, physical
possession of land has been taken, greenfield projects opened, railway projects have been planned , expedited and completed
and many pioneering CSR projects have been launched. These all could be achieved because of adoption of KayaKalp Model of
Governance (Exhibit 1) which lays emphasis on the following:
➢ Discipline Enforcement
CCL becoming a Mini Ratna Company is 'the dream comes true' of its employees, their family members, its stake holders and the
people of Jharkhand - CCL being the largest mining industry in the State. Coal mining has a direct impact on the socio economic
& the environmental conditionsof the operational areas. As such, it becomes the responsibility of CCL to contribute towards the
socio-economic development of the people living in its command zone. With this view, the focus of Corporate Social Responsibility
is to ensure inclusive growth of the community in the command area of CCL through different CSR measures making mining socially
sustainable.
In this backdrop, the responsibility of CCL as a corporate entity addressing socio-economic and environmental concerns of the
community becomes quite focused and is reflected in its Vision.
“To maximize the well being of every individual and enterprise by integrating business with societal as well as environmental
concerns, thereby promoting community participation, improving skills through capacity building, maintaining transparency, setting
an example through best practices, encouraging accountability for organizational decisions/actions and maintaining ethical work
standards”
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Core Value Statement: (4Cs)
l Customer Care
l Cost consciousness
https://www.centralcoalfields.in/pdfs/updts/2019-2020/17_05_2019_cil_csr_policy.pdf
2. THE COMPOSITION OF BOARD LEVEL SD & CSR COMMITTEE AS ON 31ST MARCH, 2019
3. Average net profit of the company for last three financial years
2015-16 3118.74
2016-17 2373.60
2017-18 1343.60
(2% of avg. net profit for last three financial years) = Rs. 45.57 Crores (as per calculation)
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
(b) Amount Unspent
Amount in Rs. Crore
Amount in
Particulars
Rs. Crore
l Utilization Certificates are not being received from Govt. agencies in spite of regular persuasions. This is reflecting as
advance in the books of accounts.
l CSR projects sanctioned earlier but which, for one or other reason could not be implemented. Hence, fund is reflected as
an unspent amount. Major reasons being land problems, non-availability of NOC and hindrance by stakeholders etc.
l Projects are of ongoing nature which may continue to next FY and expenditure is likely to be booked in subsequent years.
The allocated fund is reflected as unspent in absence of final payment / utilization Certificate.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Table – I
Manner in which Amount Spent during the Year 2018-19
(Annexure – B)
1 2 3 4 5 6 7 8
Amount spent
on projects
or programs
Projects or programs Sub-heads:
Amount outlay Cumulative
Sector in (1)
1. Local Area or Other (budget) expenditure up
Sl. which the Direct Amount spent: Direct or through
CSR Project or Activity identified project or to the reporting
No. Project is 2. State/District where expenditure implementing agency
program wise period
covered Projects or Programs was on projects
( in `lakhs*) (in ` Crores*)
undertaken or programs.
(2)
Overheads
(in ` Lakhs)
Sanitation
Sanitation
In the villages coming within 25 KM
(Item No. (i) radius of operational units (Dhori,
Swachhta Pakhwada &
3. of Schedule HQ, M&A, Piparwar Area) in the 15.26 Direct
Swachhta Hi Sewa Campaign
VII of the districts of Giridih, Ranchi, Chatra of
Companies Jharkhand
Act, 2013)
Health Care
Mega Medical Camp at Dumma, Deoghar, Jharkhand by
4. (Item No. (i) 22.08 Direct
Dumma, Deoghar Giridih Area
of Schedule
– VII)
Health Care
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
1 2 3 4 5 6 7 8
Health Care
In the villages coming within 25 KM
Distribution of Wheelchairs/ radius of operational unit of B&K
7. (Item No. (i) 3.22 Direct
Crutches and Dhori Area in Bokaro and Giridih
of Schedule
District of Jharkhand
– VII)
Drinking
In the villages coming within 25 KM
Water
radius of operational units (B&K,
Supply
HQ, Kathara, M&A, NK, Piparwar,
9. Digging of Deep bore hole 183.62 Direct
Rajrappa & Rajhara )in the districts
(Item No. (i)
of Bokaro, Ranchi, Giridih, Chatra,
of Schedule
Latehar & Ramgarh of Jharkhand
– VII)
Drinking
In the villages coming within 25
Water
KM radius of operational units
Supply
(B&K, Dhori, Kathara, Kuju,
10. Construction of Well 36.12 Direct
NK) in the districts of Bokaro)
(Item No. (i)
in the district in Bokaro, Giridih,
of Schedule
Ramgarh, Ranchi of Jharkhand
– VII)
Drinking
Water
In the villages coming within 25
Supply
Provision of drinking water KM radius of operational units of
11. 86.32 Direct
through tankers M&A Area in the district Chatra of
(Item No. (i)
Jharkhand
of Schedule
– VII)
Drinking
Water In the villages coming within 25
Supply KM radius of operational units
12. Laying of pipeline of Kathara & Kuju Area in the 11.68 Direct
(Item No. (i) district Giridih and Ramgarh of
of Schedule Jharkhand
– VII)
Drinking
Water
Supply
13. Installation of RO Water Purifier Doranda, Ranchi, Jharkhand 4.77 Direct
(Item No. (i)
of Schedule
– VII)
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
1 2 3 4 5 6 7 8
Skill
Development In the villages coming within 25
KM radius of operational units
17. Automobile Repairing Training 0.83 Direct
(Item No. (ii) (Dhori Area) in the district Bokaro
of Schedule of Jharkhand
– VII)
Skill
Development In the villages coming within 25 KM
radius of operational unit of CRS
19. Computer Training 1.88 Direct
(Item No. (ii) Barkakana & Dhori Area in the district
of Schedule Ramgarh & Bokaro of Jharkhand
– VII)
Skill
Development In the villages coming within 25
KM radius of operational units
20. Food Processing 2.38 Direct
(Item No. (ii) (Dhori Area) in the district Bokaro
of Schedule of Jharkhand
– VII)
Skill
In the villages coming within 25
Development
KM radius of operational units
21. Mobile Repairing Training (Dhori & Hazaribagh Area) in the 3.78 Direct
(Item No. (ii)
district Bokaro & Hazaribagh of
of Schedule
Jharkhand
– VII)
Skill
Development In the villages coming within 25
Other Skill development KM radius of operational units
22. 3.02 Direct
Training (Item No. (ii) (B&K Area) in the district Bokaro
of Schedule of Jharkhand
– VII)
Skill
Development In the villages coming within 25
KM radius of operational units
23. Tailoring Training 12.30 Direct
(Item No. (ii) (Dhori Area) in the district Bokaro
of Schedule of Jharkhand
– VII)
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
1 2 3 4 5 6 7 8
Skill
Development
BTTI – Bhurkunda, Barkasayal
24. Mining Sirdar Training to SC/ST 23.50 Direct
(Item No. (ii) Area, Ramgarh District
of Schedule
– VII)
Skill
Development
MSDC – Barkakana, CRS –
Welder / Electrician Training
25. Barkakana Area, Ramgarh 4.67 Direct
to PAPs (Item No. (ii)
District
of Schedule
– VII)
Social
Welfare
Distribution of Blankets for Kuju Area, Ramgarh District of
26. 1.96 Direct
Birhor Tribe (Item No. (iii) Jharkhand
of Schedule
– VII)
Social
In the villages coming within 25
Welfare
KM radius of operational unit of
Distribution of Sports Items to
27. Hazaribagh, Kuju & Piparwar 3.74 Direct
rural youth (Item No. (iii)
Area in the districts Hazaribagh &
of Schedule
Chatra of Jharkhand
– VII)
Forest &
Environment,
animal In the villages coming within 25
Construction/Renovation of welfare etc. KM radius of operational units
28. 21.98 Direct
Pond (M&A Area) in the district Chatra
(Item No. (iv) of Jharkhand
of Schedule
– VII)
Forest &
Environment,
animal In the villages coming within 25
welfare etc. KM radius of operational units
29. Construction of Check dam 8.94 Direct
(M&A Area) in the district Chatra
(Item No. (iv) of Jharkhand
of Schedule
– VII)
Forest &
Environment,
animal In the villages coming within 25
welfare etc. KM radius of operational units
30. Beautification of Riverside 4.09 Direct
(B&K Area) in the district Bokaro
(Item No. (iv) of Jharkhand
of Schedule
– VII)
Forest &
Environment,
animal In the villages coming within 25
welfare etc. KM radius of operational unit of
31. Rain Water Harvesting 1.78 Direct
Piparwar Area in Chatra District
(Item No. (iv) of Jharkhand
of Schedule
– VII)
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
1 2 3 4 5 6 7 8
Sports
Promotion
Running of Sports Academy, Jharkhand State Sports
32. All 24 Districts of Jharkhand 527.67
Hotwar (Item No. (vii) Promotion Society (JSSPS)
of Schedule
– VII)
Sports
Promotion In the villages coming within 25
KM radius of operational unit of
33. Rural Sports Tournaments 0.22 Direct
(Item No. (vii) Piparwar Area in Chatra District
of Schedule of Jharkhand
– VII)
Sports
In the villages coming within 25
Promotion
KM radius of operational unit of
34. Khel Mahakumbh M&A, Dhori & Piparwar Area 2.12 Direct
(Item No. (vii)
in Chatra & Bokaro District of
of Schedule
Jharkhand
– VII)
Rural
Development In the villages coming within 25
Construction of Road (PCC/ KM radius of operational unit of
35. 24.04 Direct
WBM) (Item No. (x) M&A & Rajrappa Area in Chatra
of Schedule & Ramgarh District of Jharkhand
– VII)
Rural
Development In the villages coming within 25
Installation of Solar Powered KM radius of operational unit of
36. 3.97 Direct
Lights (Item No. (x) B&K Area in Bokaro District of
of Schedule Jharkhand
– VII)
Rural
Development In the villages coming within 25
KM radius of operational unit of
37. Construction of Boundary wall 17.53 Direct
(Item No. (x) Rajhara Area in Latehar District
of Schedule of Jharkhand
– VII)
Rural
In the villages coming within 25
Development
KM radius of operational unit of
38. Construction of Community hall B&K, Barkasayal, HQ, Rajhara 24.85 Direct
(Item No. (x)
Area in Bokaro, Ramgarh, Ranchi
of Schedule
and Latehar District of Jharkhand
– VII)
Rural
Development In the villages coming within 25
Miscellaneous rural develop- KM radius of operational unit
39. 13.91 Direct
ment works (Item No. (x) of Barkasayal & HQ, Area in
of Schedule Ramgarh and Ranchi
– VII)
Participation in ET 2 Good
Miscellaneous Overheads / 4 Good CSR Ratings
40. 200.60
Administrative Expenses and Salary paid to CSR
employees
TOTAL 4113.54
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Note :
The Total Budget Outlay for the FY 2018-19 is Rs. 88.16 Crore including unspent amount available from previous
* Column No. 5 years.
For SVA, a separate budget of Rs. 324.50 Cr. was allocated in addition to the CSR Budget as per 2% PBT.
* Column No. 7 Cumulative CSR Expenditure including all sectors from 2013-14 onwards till 2018-19 is Rs. 397.93 Crore
Every CSR proposal was reviewed and vetted by an internal CSR Review Committee. After getting vetted from CSR Review Committee, the
proposals were placed before the Below Board Level SD & CSR Committee comprising the following :
After recommendation from above committee members, the same proposals are being placed for Competent Approval as per
following DoP :
(a) Director (Personnel), CCL, Ranchi (for proposals of value upto `10 lakhs)
(b) CMD, CCL, Ranchi (for proposals of value above Rs. 10 lakhs to upto ` 25 lakhs)
(c) Board Level SD & CSR Committee (for proposals of value above ` 25 lakhs)
Sd/-
GM (SD & CSR)
Sd/- Sd/-
(Chief Executive Officer or (Chairman CSR Committee) [Person specified under
Managing Director or Director) clause(d) of sub section (1)
of section 380 of the Act]
(whichever applicable)
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Annexure – X
Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred
to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third
proviso thereto.
All the transactions entered by CCL during the financial year 2018-19 with related parties were on arm’s length basis as per debit
advice received from CIL and other Subsidiaries.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Annexure – XI
Report on the Performance and Financial position of each of the Subsidiaries, Associates &
Joint Venture Companies for FY 2018-19
[Pursuant to Section 134(3)(q) of the Companies Act, 2013 read with Rule 8(1) of the Companies (Accounts) Rules, 2014]
Jharkhand Central Railway Limited is a Joint Venture Company between Central Coalfields Limited, Ircon International Limited and Govt.
of Jharkhand. The company was formed under companies Act 2013.
2. Financial Position :
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Assets
Tangible Assets (less Depreciation) 0.00 0.00
Capital WIP 1,63,84,89,659.00 184,28,95,260.00
Long Term Loans & Advances 1,18,63,712.00 4,05,69,300.00
Cash and Bank Balance 26,89,37,019.50 39,86,83,720.00
Short term loans and advances 0.00 0.00
Current Tax Assets (Net) — 21,00,293.00
Other Current Assets 21,00,293.00 —
Total 1,92,13,90,683.50 2,28,42,48,573.00
3. During the year ended 31.03.2019, the Capital Structure stands as under :
4. During the year ended 31.03.2019, JCRL has incurred Net profit amounting to Rs. 1,17,42,466.50/- against Net Loss of Rs.
2,67,355.00/- incurred in the year ended 31.03.2018.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Annexure – XII
Form No.MGT – 9
EXTRACT OF ANNUAL RETURN
As on financial year ended on 31.03.2019
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1)
of the Companies (Management and Administration) Rules, 2014]
i. CIN U10200JH1956GOI000581
vi. Address of the Registered office and contact details Darbhanga House, Kutchery Road Ranchi 834029 (Jharkhand)
Sr. Name And Address Of The Company CIN/GLN Holding/ Subsidiary/ %of shares Applicable Section
No. Associate held
1. Coal India Limited, Coal Bhawan L23109WB1973GOI028844 Holding 100 Section 2(46) of
Premise No-04 MAR, Companies Act' 2013
Plot No-AF-III, Action Area-1A,
Newtown,Rajarhat,Kolkata-700156
Email Id.:- mviswanathan2@coalindia.in
2. Jharkhand Central Railway Limited, U45201JH2015GOI003139 Subsidiary 64.00 Section 2(87) of
Darbhanga House, Ranchi. Jharkhand Companies Act' 2013
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i. Category-wise Share Holding
No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
Category of
% of Total % of Total during
Shareholders Demat Physical Total Demat Physical Total
Shares Shares The year
A. Promoter
1. Indian
(a) Individual/ HUF — 3 3 0.0001% — 3 3 0.0001% NIL
(b) CentralGovt — — — — — — — — —
(c) State Govt(s) — — — — — — — — —
(d) Bodies Corp — 93,99,997 93,99,997 99.9999% — 93,99,997 93,99,997 99.9999% NIL
(e) Banks / FI — — — — — — — — —
(f) Any Other — — — — — — — — —
Sub-total(A)(1) — 94,00,000 94,00,000 100% — 94,00,000 94,00,000 100% NIL
2. Foreign
(g) NRIs-Individuals – – – – – – – – –
(h) Other-Individuals – – – – – – – – –
(i) Bodies Corp. – – – – – – – – –
(j) Banks / FI – – – – – – – – –
(k) Any Other…. – – – – – – – – –
Sub-total(A)(2) – – – – – – – – –
B. Public Shareholding
1. Institutions
(a) Mutual Funds – – – – – – – – –
(b) Banks / FI – – – – – – – – –
(c) Central Govt – – – – – – – – –
(d) State Govt(s) – – – – – – – – –
(e) Venture Capital Funds – – – – – – – – –
(f) Insurance Companies – – – – – – – – –
(g) FIIs – – – – – – – – –
(h) Foreign Venture Capital Funds – – – – – – – – –
(i) Others (specify) – – – – – – – – –
Sub-total(B)(1) – – – – – – – – –
2. Non Institutions – – – – – – – – –
(a) Bodies Corp. – – – – – – – – –
(i) Indian
(ii) Overseas
(b) Individuals – – – – – – – – –
(i) Individual share holders holding
nominal share capital upto Rs. 1 lakh
(ii) Individual share holders holding
nominal share capital in excess of Rs.
1 lakh
(c) Others (Specify) – – – – – – – – –
Sub-total(B)(2) – – – – – – – – –
Total Public Shareholding (B)=(B)(1)+ (B)(2) – – – – – – – – –
C. Shares held by Custodian for – – – – – – – – –
GDRs & ADRs
Grand Total (A+B+C) — 94,00,000 94,00,000 100% — 94,00,000 94,00,000 100% NIL
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
1. Coal India Limited 93,99,997 99.9999% NIL 93,99,997 99.9999% NIL NIL
iv. Shareholding Pattern of top ten Shareholders: (Other than Directors, Promoters and Holders of GDRs and
ADRs)
Shareholding at the beginning Shareholding at the end of the
of the year [as on 01-04-2018] Year [as on 31-03-2019]
S. For Each of the Top 10 Shareholders
No. % of totalshares
No. of % of total shares No. of of the company
shares of the company shares
106
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
107
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
VI. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
Secured
Unsecured Total
Particulars Loans excluding Deposits
Loans Indebtedness
deposits
Indebtedness at the beginning of the financial year
(i) Principal Amount 150.00 — NIL 150.00
(ii) Interest due but not paid 0.02 — — 0.02
(iii) Interest accrued but not — — —
Total (i+ii+iii) 150.02 — NIL 150.02
Change in Indebtedness during the financial year
– Addition 5.16 — NIL 5.16
– Reduction 155.18 — NIL 155.18
Net Change (150.02) — NIL (150.02)
Indebtedness at the end of the financial year
(i) Principal Amount — — NIL —
(ii) Interest due but not paid — — NIL —
(iii) Interest accrued but not due — — — —
Total (i+ii+iii) NIL — NIL NIL
Shri V. K. Total
S. Shri A. K. Mishra Shri Bhola Singh
Particulars of Remuneration Shri Subir Chandra Shri Shri Srivastava Amount
N. Shri Gopal Singh Director (Tech.) Director (Tech.)
(T/O) Superannuated R.S. Mahapatro D.K. Ghosh Director (Tech.) (`)
CMD Superannuated Joined on
on 31.03.2018 Director (P) Director (F) Joined on
on 30.11.2018 15.01.2019
15.05.2018
1. Gross salary 10006751.68 2841542.29 6815441.90 8224954.21 7773979.07 6396187.62 635790.00 42694646.77
2. Stock Option 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3. Sweat Equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Commission
4. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
– as % of profit
5. Others, please specify (Gratuity) 0.00 0.00 0.00 0.00 2000000.00 0.00 0.00 2000000.00
Total (A) 10006751.68 2841542.29 6815441.90 8224954.21 7773979.07 6396187.62 635790.00 42694646.77
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
B. Remuneration to Other Directors :
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Annexure – XIII
To,
The Board of Directors
Central Coalfields Limited
Darbhanga House
Ranchi.
Director
DIN: 08399014
Date: 30.04.2019
Place: Ranchi
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Annexure – XIII
I, Bharat Bhushan Goyal, hereby certify that I am a Non-Official Part Time Director of Central Coalfields Limited and comply with all the
criteria of independent director envisaged in Clause 49 of the Listing Agreement and applicable provisions of Companies Act, 2013 as
& when it may be notified. I hereby certify that:
a) I am not a promoter of the company or its holding, subsidiary or associate company;
b) I am not related to promoters or directors in the company, its holding, subsidiary or associate company
c) I have/had no pecuniary relationship with the company, its holding, subsidiary or associate company, or their promoters, or directors,
during the two immediately preceding financial years or during the current financial year;
d) none of my relatives has or had pecuniary relationship or transaction with the company, its holding, subsidiary or associate company,
or their promoters, or directors, amounting to 2% or more of its gross turnover or total income or Rs. 50 Lacs or such higher amount
as may be prescribed, whichever is lower, during the two immediately preceding financial years or during the current financial year;
e) Neither Me nor any of my relatives—
I. holds or has held the position of a key managerial personnel or is or has been employee of the company or its holding,
subsidiary or associate company in any of the three financial years immediately preceding the financial year
II. is or has been an employee or proprietor or a partner, in any of the three financial years immediately preceding the financial
year of-
A. a firm of auditors or company secretaries in practice or cost auditors of the company or its holding, subsidiary or
associate company; or
B. any legal or a consulting firm that has or had any transaction with the company, its holding, subsidiary or associate
company amounting to 10% or more of the gross turnover of such firm;
III. holds together with his relatives 2% or more of the total voting power of the company; or
IV. is a Chief Executive or director, by whatever name called, of any nonprofit organisation that receives 25% or more of its
receipts from the company, any of its promoters, directors or its holding, subsidiary or associate company or that holds 2%
or more of the total voting power of the company; or
f) Possesses such other qualifications as may be prescribed under Rule 5 of the Companies (Appointment and Qualification of
Directors), 2014.
Thanking you,
Yours faithfully,
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Annexure – XIV
Coal being the most abundant fossil fuel in India till date, it continues as one of the most important sources for meeting the domestic
energy needs and will continues to be the mainstay of its future energy supply. It provides most vital input for accelerating the growth of
Indian economy. 55% of India’s total Energy needs is met by Coal.
Out of 308.80 Billion Tonnes of geological resources of coal estimated in India, CCL Command Area has 44.837 BT as on 01.04.2018,
which is 14.52% of total Reserve in India.
Coal Demand:
Coal Demand of CCL in 2019-20 is indicated below. It includes the expected commissioning of power houses during 2019-20 covered
under presidential Directives.
Sector wise break-up are as under:
(Million Tonne)
Sector 2019-20
Steel (Coking) 3.74448
Power (U) 80.27
Power (Captive) 5.6
Cement 0.132
Steel DRI 1.811
Others 3.829
Total Non Coking 91.462
Total 95.3868
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Coal despatch
Sector-Wise coal dispatch of CCL during 2018-19 is 68.677 MT:
(Fig in MT)
Steel (Incl. Steel CPP) 2.755 3.478 2.793 2.639 0.148 0.350 1.448
* Others include e-auction, erstwhile Non Core Consumers, Sponge Iron and State Agencies.
Coal Availability
The actual coal production for 2018-19, Budgeted production for 2019-20 as per Draft AAP from existing mines, completed projects,
on-going projects and Future Projects in CCL is given below :
(Fig in MT)
2019-20
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Group Draft
Actual Actual Actual Actual Actual Actual
(AAP)
Future Projects - - - - - - -
Note : Group wise production may change whenever any project shift from ongoing to completed & from future
to ongoing.
Productivity:
The OMS position of CCL is as below :
(Fig in MT)
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Strength
1. High production and huge production potential: CCL produced 68.72 MT of coal in 2018-19, which is over 11.3 % of Coal India’s
Production. The coal reserves in CCL command area is of 44.732 billion tonnes. CCL has about 14.49 % of the coal reserves of
India. The coal reserves include non coking coal (used in power plants) as well as coking coal (used in steel plants). These reserves
are good enough for the next 200 years.
2. Infrastructure available in almost all Coal Blocks: For development and operation of coal mines we need a good rail and road
network. All coalfields of CCL have a reasonably Good Rail and Road Network. This Network enables swift movement of Coal to
the Consumers.
3. Skilled Manpower available in sufficient numbers: CCL has been in the business of Coal Mining for over 40 years. Its manpower
strength as on 31.03.2019 is 39222 and which is well conversant in their jobs.
4. Very low employee attrition rate: The salary and wages offered to the employees in CCL are the best in the Coal Mining Industry.
This has resulted in a very low attrition of employees. The performance related pay introduced recently for executives has further
boosted the morale of employees.
5. CCL is a Mini-Ratna Category I Company, with a High Financial Autonomy: On the basis of performance of CCL, the Department
of Public Enterprises has granted Mini-Ratna Category I status to the Company. This means that the company can approve projects
up to 500 Crores without going to the Government and it can also form joint ventures / subsidiaries / overseas offices.
Weaknesses:
1. Old mines with Obsolete Technology: Most of the minesin CCL are old with antiquated equipment. The company has opened
a few mines in recent past. State of the art technology is being used in only few mines.
2. Trade Unionism: Trade Unionism is rampant in the mines. Every mine has over six Recognized Trade Unions.
3. Application of information technology is very low: The application of IT in the mines is very low. This makes the system prone
to corruption and inefficiency.
4. Poor work culture: On an average employees work for only 4 hours in a eight hour shift.
Opportunities:
1. There is huge and almost insatiable demand for coal: The demand –supply gap of coal is 20 MT today which is likely to increase
in future.
2. Outsourcing of production processes: CCL can go for outsourcing in case of projects, beyond the available capacity of the
projects. We also go for outsourcing in case of Marginal Deposits (there are many such Coal Deposits) where deployment of
Departmental Equipment is uneconomical. Outsourcing now has the support of Trade Unions.
3. Opportunities for value addition for it’s products through sizing, washing or conversion to Liquid and Gas: The price
of washed coking coal is double the price of mined Coking Coal. Washeries may be established to take advantage of the price
differential.
Threats:
1. Captive mining in coal is now permitted in India, ending the complete monopoly of the company: CCL has now to compete
with private players, who have been allotted coal blocks.
2. There is demand for allowing private coal mining companies to sell all their produce in the open market. Private players
produce coal at 60 % of the CCL’s cost. If they are allowed to sell coal in the open market then we will be losing valuable Customers.
3. Upcoming private players may poach on the highly skilled employees of the company through better Pay, Perks and
Other Facilities: Since the company is a PSU, it can’t easily increase the pay and perks etc of the employees as per demand of
the market and competition as it has to follow lengthy procedures for the same.
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4. Law and order problems in coal mining areas: The law and order situation in mining areas is bad. There are frequent bandhs
and extremist groups prevent / interfere with mine development activities. On an average the mines are closed for about 30 days
due to poor law and order condition prevailing in Mining areas.
5. Inordinate delay in release of Forest land: There is inordinate delay in the processing of Forest land proposals. The State Govt.
takes considerable time in recommending forest land proposals to the MOEF for stage I clearance. There is delay in site inspection
by MoEF Regional Office, Bhubneswar. It takes about 4-6 years for release of forest land.
6. Physical possession of acquired land: Great difficulty is being encountered in the physical possession of acquired land. Forest
land which is released by the Govt. often has encroachments, which is not easy to get rid off.
7. Rehabilitation of project affected persons: The rehabilitation of project affected persons has become a big bottle neck in the
development of new projects, as the demand of PAFs are often, beyond the norms of R&R policy of CIL.
C. PERFORMANCE
The Production and Productivity figures achieved by your Company during the year 2018-19 as compared to the actual of 2017-18 is
as under :
Production
Productivity (OMS-Te)
The total Off take of Raw Coal during 2018-19 was 68.446 Million Tones. The Mode-wise details of off-take compared to that of last
year is as under :
(Figs. in Million Tonnes)
During the year 2018-19, CCL has recorded 13.2 % growth in coal offtake through Road mode. CCL achieved a growth of 1.39 % in
offtake over last year.
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Reasons of less raw coal feed/ consumption in different washeries (Coking+ Non coking)
All the figures in lakh tonnes
D. OUTLOOK
Coal India is striving to achieve 660 MT of coal production in 2019-20, in which Central Coalfields Limited will contribute 77 MT of coal.
Major projects of your company such as Magadh EPR OCP (51 MTY), Amrapali EPR OCP (25 MTY), Karo EPR OCP (11 MTY), Konar
EPR OCP (8MTY), Ashok EPR OCP (22 MTY), Kotre Basantpur Pachmo OCP (5 MTY), Sanghamitra OCP (20 MTY) and Chandragupta
OCP (15 MTY) are also expected to contribute significantly in near future.
K. CAUTIONARY STATEMENT
Statements in the Management Discussion & Analysis and Directors' Report prescribing the Company's objectives; projections and
estimates, expectations & predictions etc., may be "forward looking statement and progressive within the meaning of applicable laws &
regulations. Forward looking statements contained herein are subject to certain risks and uncertainties that would cause actual results
to defer materially from those reflected in the forward looking statements. Actual results will vary from those expressed or implied
depending upon economic conditions.”
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(a) Net Sales/ Income from operations (Net of levies excluding excise
3,579.45 2,689.40 3,246.02 11,273.99 11,013.30
duty)
Total income from operations (Net) (a+b) 3,850.10 2,927.17 3,482.66 12,179.90 11,550.71
2 Expenses
(f) Power & fuel Expenses 61.60 57.00 74.28 231.02 277.35
(g) Corporate Social Responsibility Expenses 11.37 4.98 28.68 41.14 37.90
Profit/ (Loss) from operations before other income, finance costs and
3 1,189.33 627.83 223.25 2,454.42 1,049.34
exceptional items (1-2)
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Profit / (Loss) from ordinary activities after finance costs but before
7 1,300.81 652.12 490.18 2,692.20 1,387.49
exceptional items (5-6)
8 Exceptional items — — — — —
9 Profit / ( Loss ) from ordinary activities before tax (7-8) 1,300.81 652.12 490.18 2,692.20 1,387.49
11 Net Profit / ( Loss ) for the period (9-10) [A] 1,042.63 176.75 318.07 1,704.47 807.78
12 Other Comprehensive Income/(loss)(net of tax) [B] (12.16) (45.34) 55.48 (19.69) 101.74
14 Paid-up Equity share capital (Face Value of share ` 1000/- each) 940.00 940.00 940.00 940.00 940.00
Earnings per share (EPS) ( Face Value of share ` 1000 /-each) (not
15
annualised)
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Notes As at As at
31.03.2019 31.03.2018
————— —————— ——————
ASSETS
Non-Current Assets
Current Assets
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
(XVI) Total Comprehensive Income for the year (XIV+XV) 1,684.78 909.52
(Comprising Profit /(Loss) and Other Comprehensive Income for the year)
Profit attributable to :
Owners of the Company 1,704.47 807.78
Non-Controlling Interest — —
—————— ——————
1,704.47 807.78
—————— ——————
Other Comprehensive Income attributable to :
Owners of the Company (19.69) 101.74
Non-Controlling Interest — —
—————— ——————
(19.69) 101.74
—————— ——————
Total Comprehensive Income attributable to :
Owners of the Company 1,684.78 909.52
Non-Controlling Interest — —
(XVII) Earnings per Equity Share (for continuing operation) :
(1) Basic 1,813.27 859.34
(2) Diluted 1,813.27 859.34
(XVIII) Earnings per Equity Share (for discontinued operation) :
(1) Basic — —
(2) Diluted — —
(XIX) Earnings per Equity Share (for discontinued & continuing operation) :
(1) Basic 1,813.27 859.34
(2) Diluted 1,813.27 859.34
Significant Accounting Policy 2
Additional Notes to the Financial Statements 38
The Accompanying Notes form an integral part of the Financial Statements.
Sd/-
Place : New Delhi (Anil Jain)
Partner
Dated : 28th May 2019 (Membership No. 079005)
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Cash & cash equivalents as at the beginning of the year 161.98 325.07
Cash & cash equivalents as at the end of the year 244.55 161.98
(All figures in bracket represent outflow.)
Sd/- Sd/- Sd/- Sd/-
(Ravi Prakash) (A. K. Goswami) (N. N. Thakur) (Gopal Singh)
Company Secretary General Manager (Finance) Director (Finance) Chairman-cum-Managing Director
DIN- 08176571 DIN- 02698059
Sd/-
Place : New Delhi (Anil Jain)
Partner
Dated : 28th May 2019 (Membership No. 079005)
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Changes In Changes In
Balance as at Equity Share Balance as at Balance as at Equity Share Balance as at
Particulars
01.04.2017 Capital during 31.03.2018 01.04.2018 Capital during 31.03.2019
the year the year
9400000 Equity Shares of `1000/- each
940.00 — 940.00 940.00 — 940.00
(9400000 Equity Shares of `1000/- each)
B. OTHER EQUITY
General Retained
Particulars OCI Total
Reserve Earnings
Balance as at 01.04.2017 2,029.00 215.71 52.39 2297.10
Changes in Accounting Policy — — — —
Prior Period Errors — 308.64 — 308.64
Restated balance as at 01.04.2017 2,029.00 524.35 52.39 2,605.74
Additions during the year — — — —
Adjustments during the year — — — —
Profit for the Year — 807.78 101.74 909.52
Appropriations
Transfer to / from General reserve 39.48 (39.48) — —
Transfer to / from Other reserves — — — —
Interim Dividend — (531.10) — (531.10)
Final Dividend — — — —
Corporate Dividend tax — (108.12) — (108.12)
Buyback of Equity Shares — — — —
Tax on Buyback — — — —
Pre-operative expenses — — — —
Reimbursement of Defined Benefit Plan (Net of Tax) — — — —
Balance as at 31.03.2018 2,068.48 653.43 154.13 2,876.04
Balance as at 01.04.2018 2,068.48 653.43 154.13 2,876.04
Additions during the year — — — —
Adjustments during the year — — — —
Changes in accounting policy or prior period errors — — — —
Profit for the Year — 1,704.47 (19.69) 1,684.78
Adjustments during the year — — — —
Appropriations
Transfer to / from General reserve 85.22 (85.22) — —
Transfer to / from Other reserves — — — —
Interim Dividend — (297.04) — (297.04)
Final Dividend — — — —
Corporate Dividend tax — (61.06) — (61.06)
Buyback of Equity Shares — — —
Tax on Buyback — — —
Adjustment of Pre-operative expenses — — — —
Reimbursement of Defined Benefit Plan (Net of Tax) — — — —
Balance as at 31.03.2019 2,153.70 1,914.58 134.44 4,202.72
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The Company is mainly engaged in mining and production of Coal and also operates Coal washeries. The major consumers of
the company are power and steel sectors. Consumers from other sectors include cement, fertilisers, brick kilns etc.
CCL has a joint venture agreement with IRCON International Limited & Government of Jharkhand named Jharkhand Central
Railway Limited (JCRL). The basic objective of JCRL is to build, construct, operate and maintain identified Rail Corridor Projects that
are critical for evacuation of coal from mines in the State of Jharkhand which shall be used for both freight and passenger services and
to develop required rail infrastructure including construction of railway lines together with all related facilities etc.
The Standalone financial statements of the company have been prepared on historical cost basis of measurement, except for
➣ certain financial assets and liabilities measured at fair value (refer accounting policy on financial instruments in para
2.15);
➣ Defined benefit plans- plan assets measured at fair value;
➣ Inventories at Cost or NRV whichever is lower (refer accounting policy in para no. 2.21).
Amounts in these financial statements have, unless otherwise indicated, have been rounded off to ‘rupees in Crore’ upto two
decimal points.
2.2.1 Subsidiaries
Subsidiaries are all entities over which the Company has control. The Company controls an entity when the Company is exposed
to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to
direct the relevant activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company.
They are deconsolidated from the date when control ceases.
The acquisition method of accounting is used to account for business combinations by the Company.
The Company combines the financial statements of the parent and its subsidiaries line by line adding together like items of
assets, liabilities, equity, cash flows, income and expenses. Inter-company transactions, balances and unrealised gains on transactions
between group companies are eliminated. Unrealised losses between group companies are also eliminated unless the transaction
provides evidence of an impairment of the transferred asset. All the companies within CCL Consolidated normally uses accounting
policies as adopted by the CIL Consolidated for like transactions and events in similar circumstances. In case of significant deviations
of a particular constituent company within CCL Consolidated, appropriate adjustments are made to the financial statement of such
constituent company to ensure conformity with the CIL Consolidated accounting policies.
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Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit
and loss, consolidated statement of changes in equity and balance sheet respectively.
2.2.2 Associates
Associates are all entities over which the Company has significant influence but no control or joint control. This is generally the
case where the Company holds between 20% and 50% of the voting rights.
Investments in associates are accounted for using the equity method of accounting, after initially being recognised at cost,
except when the investment, or a portion thereof, classified as held for sale, in which case it is accounted in accordance with Ind AS 105.
The Company impairs its net investment in the associates on the basis of objective evidence.
Joint control is the contractually agreed sharing of control of the arrangement which exist only when decisions about the relevant
activities require the unanimous consent of the parties sharing control.
Joint Arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights
and obligations of each investor, rather than the legal structure of the joint arrangement.
Company recognises its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any
jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the financial statements under the
appropriate headings.
Interests in joint ventures are accounted for using the equity method, after initially being recognised at cost in the consolidated
balance sheet.
Investments in Joint venture are accounted for using the equity method of accounting, after initially being recognized at cost,
except when the investment, or a portion thereof, classified as held for sale, in which case it is accounted in accordance with Ind AS 105.
The Company impairs its net investment in the joint venture on the basis of objective evidence.
When the Company’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including
any other unsecured long-term receivables, the Company does not recognise further losses, unless it has incurred obligations or made
payments on behalf of the other entity.
Unrealised gains on transactions between the Company and its associates and joint ventures are eliminated to the extent of the
Company’s interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment
of the asset transferred. Accounting policies of equity accounted investees have been changed where necessary to ensure consistency
with the policies adopted by the Company.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
When the Company ceases to consolidate or equity account for an investment because of a loss of control, joint control or
significant influence, any retained interest in the entity is re-measured to its fair value with the change in carrying amount recognised in
profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as
an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect
of that entity are accounted for as if the Company had directly disposed of the related assets or liabilities. This may mean that amounts
previously recognised in other comprehensive income are reclassified to profit or loss.
If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence is retained, only a
proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss where appropriate.
Ind AS 115 requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when
applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs
of obtaining a contract and the costs directly related to fulfilling a contract.
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transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for
those goods or services. The Company has generally concluded that it is the principal in its revenue arrangements because it typically
controls the goods or services before transferring them to the customer.
The principles in Ind AS 115 are applied using the following five steps:
Combination of contracts
The Company combines two or more contracts entered into at or near the same time with the same customer (or related parties
of the customer) and account for the contracts as a single contract if one or more of the following criteria are met:
a) the contracts are negotiated as a package with a single commercial objective;
b) the amount of consideration to be paid in one contract depends on the price or performance of the other contract; or
c) the goods or services promised in the contracts (or some goods or services promised in each of the contracts) are a
single performance obligation.
Contract modification
The Company account for a contract modification as a separate contract if both of the following conditions are present:
a) the scope of the contract increases because of the addition of promised goods or services that are distinct and
b) the price of the contract increases by an amount of consideration that reflects the company’s stand-alone selling prices
of the additional promised goods or services and any appropriate adjustments to that price to reflect the circumstances
of the particular contract.
b) a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the
customer.
An amount of consideration can vary because of discounts, rebates, refunds, credits, price concessions, incentives, performance
bonuses, or other similar items. The promised consideration can also vary if the company’s entitlement to the consideration is contingent
on the occurrence or non-occurrence of a future event.
In some contracts, penalties are specified. In such cases, penalties are accounted for as per the substance of the contract.
Where the penalty is inherent in determination of transaction price, it form part of variable consideration.
The Company includes in the transaction price some or all of an amount of estimated variable consideration only to the extent
that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty
associated with the variable consideration is subsequently resolved.
The Company does not adjust the promised amount of consideration for the effects of a significant financing component if
it expects, at contract inception, that the period between when it transfers a promised goods or service to a customer and when the
customer pays for that good or service will be one year or less.
The Company recognizes a refund liability if the Company receives consideration from a customer and expects to refund some or
all of that consideration to the customer. A refund liability is measured at the amount of consideration received (or receivable) for which the
company does not expect to be entitled (i.e. amounts not included in the transaction price). The refund liability (and corresponding change
in the transaction price and, therefore, the contract liability) is updated at the end of each reporting period for changes in circumstances.
After contract inception, the transaction price can change for various reasons, including the resolution of uncertain events or
other changes in circumstances that change the amount of consideration to which the Company expects to be entitled in exchange for
the promised goods or services.
To allocate the transaction price to each performance obligation on a relative stand-alone selling price basis, the Company
determines the stand-alone selling price at contract inception of the distinct good or service underlying each performance obligation in
the contract and allocate the transaction price in proportion to those stand-alone selling prices.
The Company transfers control of a good or service over time and, therefore, satisfies a performance obligation and recognizes
revenue over time, if one of the following criteria is met:
a) the customer simultaneously receives and consumes the benefits provided by the company’s performance as the
Company performs;
b) the Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced;
c) the Company’s performance does not create an asset with an alternative use to the Company and the Company has an
enforceable right to payment for performance completed to date.
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For each performance obligation satisfied over time, the Company recognizes revenue over time by measuring the progress
towards complete satisfaction of that performance obligation.
The Company applies a single method of measuring progress for each performance obligation satisfied over time and the
Company applies that method consistently to similar performance obligations and in similar circumstances. At the end of each reporting
period, the Company re-measure its progress towards complete satisfaction of a performance obligation satisfied over time.
Company apply output methods to recognize revenue on the basis of direct measurements of the value to the customer of the
goods or services transferred to date relative to the remaining goods or services promised under the contract. Output methods include
methods such as surveys of performance completed to date, appraisals of results achieved, milestones reached, time elapsed and
units produced or units delivered.
As circumstances change over time, the Company update its measure of progress to reflect any changes in the outcome of the
performance obligation. Such changes to the Company’s measure of progress is accounted for as a change in accounting estimate in
accordance with Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors.
The Company recognizes revenue for a performance obligation satisfied over time only if the Company can reasonably measure
its progress towards complete satisfaction of the performance obligation. When (or as) a performance obligation is satisfied, the company
recognize as revenue the amount of the transaction price (which excludes estimates of variable consideration that are constrained that
is allocated to that performance obligation.
If a performance obligation is not satisfied over time, the Company satisfies the performance obligation at a point in time. To
determine the point in time at which a customer obtains control of a promised good or service and the Company satisfies a performance
obligation, the Company consider indicators of the transfer of control, which include, but are not limited to, the following:
a) the Company has a present right to payment for the good or service;
b) the customer has legal title to the good or service;
c) the Company has transferred physical possession of the good or service;
d) the customer has the significant risks and rewards of ownership of the good or service;
e) the customer has accepted the good or service.
When either party to a contract has performed, the Company present the contract in the balance sheet as a contract asset or a
contract liability, depending on the relationship between the company’s performance and the customer’s payment. The Company present
any unconditional rights to consideration separately as a receivable.
Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company
performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract
asset is recognized for the earned consideration that is conditional.
Trade receivables
A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the passage of time
is required before payment of the consideration is due).
Contract liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration
(or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or
services to the customer, a contract liability is recognized when the payment made or due (whichever is earlier). Contract liabilities are
recognized as revenue when the Company performs under the contract.
2.4.2 Interest
Interest income is recognised using the Effective Interest Method.
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2.4.3 Dividend
Dividend income from investments is recognised when the rights to receive payment is established.
(b) it is probable that the economic benefits associated with the transaction will flow to the Company;
(c) the stage of completion of the transaction at the end of the reporting period can be measured reliably; and
(d) the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
Government grants are recognised in Statement of Profit & Loss on a systematic basis over the periods in which the company
recognises as expenses the related costs for which the grants are intended to compensate.
Government Grants related to assets are presented in the balance sheet by setting up the grant as deferred income and are
recognised in Statement of Profit and Loss on systematic basis over the useful life of asset.
Grants related to income (i.e. grant related to other than assets) are presented as part of statement of profit and loss under the
head ‘Other Income’.
A government grant/assistance that becomes receivable as compensation for expenses or losses already incurred or for the
purpose of giving immediate financial support to the Company with no future related costs, is recognised in profit or loss of the period
in which it becomes receivable.
The Government grants or grants in the nature of promoter’s contribution should be recognised directly in “Capital Reserve”
which forms part of the “Shareholders fund”.
2.6 Leases
A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or
may not eventually be transferred.
2.6.1.1 Finance leases are capitalised at the commencement of the lease at the inception date fair value of the leased property or, if
lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and
reduction of the lease liability so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
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Finance charges are recognised in finance costs in the statement of profit and loss, unless they are directly attributable to
qualifying assets, in which case they are capitalized in accordance with the Company’s general policy on the borrowing costs.
A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company
will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and
the lease term.
2.6.1.2 Operating lease- Lease payments under an operating lease is recognised as an expense on a straight-line basis over the lease
term unless either:
(a) another systematic basis is more representative of the time pattern of the user’s benefit even if the payments to the
lessors are not on that basis; or
(b) the payments to the lessor are structured to increase in line with expected general inflation to compensate for the lessor’s
expected inflationary cost increases. If payments to the lessor vary because of factors other than general inflation, then
this condition is not met.
(a) another systematic basis is more representative of the time pattern in which use benefit derived from the leased asset
is diminished, even if the payments to the lessors are not on that basis; or
(b) the payments to the lessor are structured to increase in line with expected general inflation to compensate for the lessor’s
expected inflationary cost increases. If payments to the lessor vary according to factors other than inflation, then this
condition is not met.
Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset
and recognised as an expense over the initial lease term on the same basis as lease income.
Finance leases - Amounts due from lessees under finance leases are recorded as receivables at the Company’s net investment
in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net
investment outstanding in respect of the lease.
For these purposes, sale transactions include exchanges of non-current assets for other non-current assets when the exchange
has commercial substance. The criteria for held for sale classification is regarded met only when the assets or disposal group is available
for immediate sale in its present condition, subject only to terms that are usual and customary for sales of such assets (or disposal
groups), its sale is highly probable; and it will genuinely be sold, not abandoned. The Company treats sale of the asset or disposal group
to be highly probable when:
Ø The appropriate level of management is committed to a plan to sell the asset (or disposal group),
Ø An active programme to locate a buyer and complete the plan has been initiated
Ø The asset (or disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair
value,
Ø The sale is expected to qualify for recognition as a completed sale within one year from the date of classification, and
Ø Actions required to complete the plan indicate that it is unlikely those significant changes to the plan will be made or that
the plan will be withdrawn.
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After recognition, an item of all other Property, plant and equipment are carried at its cost less any accumulated depreciation and
any accumulated impairment losses under Cost Model. The cost of an item of property, plant and equipment comprises:
(a) its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and
rebates.
(b) any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating
in the manner intended by management.
(c) the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the
obligation for which the Company incurs either when the item is acquired or as a consequence of having used the item
during a particular period for purposes other than to produce inventories during that period.
Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item
depreciated separately. However, significant part(s) of an item of PPE having same useful life and depreciation method are grouped
together in determining the depreciation charge.
Costs of the day to-day servicing described as for the ‘repairs and maintenance’ are recognised in the statement of profit and
loss in the period in which the same are incurred.
Subsequent cost of replacing parts significant in relation to the total cost of an item of property, plant and equipment are recognised
in the carrying amount of the item, if it is probable that future economic benefits associated with the item will flow to the Company; and
the cost of the item can be measured reliably. The carrying amount of those parts that are replaced is derecognised in accordance with
the de-recognition policy mentioned below.
When major inspection is performed, its cost is recognised in the carrying amount of the item of property, plant and equipment
as a replacement if it is probable that future economic benefits associated with the item will flow to the Company; and the cost of the
item can be measured reliably. Any remaining carrying amount of the cost of the previous inspection (as distinct from physical parts) is
derecognised.
An item of Property, plant or equipment is derecognised upon disposal or when no future economic benefits are expected from
the continued use of assets. Any gain or loss arising on such de-recognition of an item of property plant and equipment is recognised
in profit and Loss.
Depreciation on property, plant and equipment, except freehold land, is provided as per cost model on straight line basis over
the estimated useful lives of the asset as follows:
Other Land (incl. Leasehold Land) : Life of the project or lease term whichever is lower
The estimated useful life of the assets is reviewed at the end of each financial year.
The residual value of Property, Plant and Equipment is considered as 5% of the original cost of the asset except some items of
assets such as, Coal tub, winding ropes, haulage ropes, stowing pipes & safety lamps etc. for which the technically estimated useful life
has been determined to be one year with nil residual value.
Depreciation on the assets added / disposed of during the year is provided on pro-rata basis with reference to the month of
addition / disposal.
Value of “Other Land” includes land acquired under Coal Bearing Area (Acquisition & Development) (CBA) Act, 1957, Land
Acquisition Act, 1894, Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (RFCTLAAR)
Act, 2013, Long term transfer of government land etc., which is amortised on the basis of the balance life of the project; and in case of
Leasehold land such amortisation is based on lease period or balance life of the project whichever is lower.
Fully depreciated assets, retired from active use are disclosed separately as surveyed off assets at its residual value under
Property, Plant and Equipment and are tested for impairment.
Capital Expenses incurred by the company on construction/development of certain assets which are essential for production,
supply of goods or for the access to any existing Assets of the company are recognised as Enabling Assets under Property, Plant and
Equipment.
Transition to Ind AS
The company elected to continue with the carrying value as per cost model (for all of its property, plant and equipment as
recognised in the financial statements as at the date of transition to Ind ASs, measured as per the previous GAAP.
The value of the provision is progressively increased over time as the effect of discounting unwinds; creating an expense
recognised as financial expenses.
Further, a specific escrow fund account is maintained for this purpose as per the approved mine closure plan.
The progressive mine closure expenses incurred on year to year basis forming part of the total mine closure obligation is initially
recognised as receivable from escrow account and thereafter adjusted with the obligation in the year in which the amount is withdrawn
after the concurrence of the certifying agency.
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● acquisition of rights to explore
● researching and analysing historical exploration data;
● gathering exploration data through topographical, geo chemical and geo physical studies;
● exploratory drilling, trenching and sampling;
● determining and examining the volume and grade of the resource;
● surveying transportation and infrastructure requirements;
● Conducting market and finance studies.
The above includes employee remuneration, cost of materials and fuel used, payments to contractors etc.
As the intangible component represents an insignificant/indistinguishable portion of the overall expected tangible costs to be
incurred and recouped from future exploitation, these costs along with other capitalised exploration costs are recorded as exploration
and evaluation asset.
Exploration and evaluation costs are capitalised on a project by project basis pending determination of technical feasibility and
commercial viability of the project and disclosed as a separate line item under non-current assets. They are subsequently measured at
cost less accumulated impairment/provision.
Once proved reserves are determined and development of mines/project is sanctioned, exploration and evaluation assets
are transferred to “Development” under capital work in progress. However, if proved reserves are not determined, the exploration and
evaluation asset is derecognised.
Commercial Operation
The project/mines are brought to revenue; when commercial readiness of a project/mine to yield production on a sustainable
basis is established either on the basis of conditions specifically stated in the project report or on the basis of the following criteria:
(a) From beginning of the financial year immediately after the year in which the project achieves physical output of 25% of
rated capacity as per approved project report, or
(b) 2 years of touching of coal, or
(c) From the beginning of the financial year in which the value of production is more than total, expenses.
Whichever event occurs first;
On being brought to revenue, the assets under capital work in progress are reclassified as a component of property, plant and
equipment under the nomenclature “Other Mining Infrastructure”. Other Mining Infrastructure are amortised from the year when the mine
is brought under revenue in 20 years or working life of the project whichever is less.
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Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss.
Exploration and Evaluation assets attributable to blocks identified for sale or proposed to be sold to outside agencies (i.e. for
blocks not earmarked for CIL) are however, classified as Intangible Assets and tested for impairment.
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.
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After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate
(EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from impairment are
recognised in the profit or loss.
a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets,
and
b) The asset’s contractual cash flows represent SPPI.
Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value.
Fair value movements are recognized in the other comprehensive income (OCI). However, the Company recognizes interest income,
impairment losses & reversals and foreign exchange gain or loss in the P&L. On de-recognition of the asset, cumulative gain or loss
previously recognised in OCI is reclassified from the equity to P&L. Interest earned whilst holding FVTOCI debt instrument is reported
as interest income using the EIR method.
In addition, the Company may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria,
as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency
(referred to as ‘accounting mismatch’). The Company has not designated any debt instrument as at FVTPL.
Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the P&L.
In case of consolidated financial statement, Equity investments in associates and joint ventures are accounted as per equity
method as prescribed in para 10 of Ind AS 28.
For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive income
subsequent changes in the fair value. The Company makes such election on an instrument by instrument basis. The classification is
made on initial recognition and is irrevocable.
If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding
dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L even on sale of investment. However, the
Company may transfer the cumulative gain or loss within equity.
Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the P&L.
2.15.2.6 De-recognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognised (i.e. removed from the balance sheet) when:
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● The rights to receive cash flows from the asset have expired, or
● The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the
Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred
nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement,
it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained
substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the
transferred asset to the extent of the Company’s continuing involvement. In that case, the Company also recognises an associated liability.
The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has
retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original
carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.
a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits,
trade receivables and bank balance
b) Financial assets that are debt instruments and are measured as at FVTOCI
d) Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that
are within the scope of Ind AS 11 and Ind AS 18
The Company follows ‘simplified approach’ for recognition of impairment loss allowance on:
● All lease receivables resulting from transactions within the scope of Ind AS 17
The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date
of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable
to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to P&L. However, the Company
may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of
profit and loss. The Company has not designated any financial liability as at fair value through profit and loss.
2.15.3.5 De-recognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a
new liability. The difference between the carrying amount of a financial liability (or part of a financial liability) extinguished or transferred
to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, shall be recognised in
profit or loss.
The following table shows various re-classifications and how they are accounted for
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2.17 Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax is the amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for a period. Taxable
profit differs from “profit before income tax” as reported in the statement of profit and loss and other comprehensive income because it
excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable
or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by
the end of the reporting period.
Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised
for all deductible temporary difference to the extent that it is probable that taxable profits will be available against which those deductible
temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or
from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the
taxable profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates,
except where the company is able to control the reversal of the temporary difference and it is probable that the temporary difference will
not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments
and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the
benefits of the temporary differences.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is
no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Unrecognised deferred
tax assets are reassessed at the end of each reporting year and are recognised to the extent that it has become probable that sufficient
taxable profit will be available to allow all or part of the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability
is settled or the asset is realised, based on tax rate (and tax laws) that have been enacted or substantively enacted by the end of the
reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which
the company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive
income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination,
the tax effect is included in the accounting for the business combination.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
The application of actuarial valuation involves making assumptions about discount rate, expected rates of return on assets,
future salary increases, mortality rates etc. Due to the long term nature of these plans, such estimates are subject to uncertainties.
The calculation is performed at each balance sheet by an actuary using the projected unit credit method. When the calculation results
in to the benefit to the company, the recognised asset is limited to the present value of the economic benefits available in the form of
any future refunds from the plan or reduction in future contributions to the plan. An economic benefit is available to the company if it is
realisable during the life of the plan, or on settlement of plan liabilities.
Re-measurement of the net defined benefit liability, which comprise actuarial gain and losses considering the return on plan assets
(excluding interest) and the effects of the assets ceiling (if any, excluding interest) are recognised immediately in the other comprehensive
income. The company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying
the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then net defined benefit
liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions
and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in profit and loss.
When the benefits of the plan are improved, the portion of the increased benefit relating to past service by employees is recognised
as expense immediately in the statement of profit and loss.
Transactions in foreign currencies are converted into the reported currency of the company using the exchange rate prevailing
at the transaction date. Monetary assets and liabilities denominated in foreign currencies outstanding at the end of the reporting period
are translated at the exchange rates prevailing as at the end of reporting period. Exchange differences arising on the settlement of
monetary assets and liabilities or on translating monetary assets and liabilities at rates different from those at which they were translated
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
on initial recognition during the period or in previous financial statements are recognised in statement of profit and loss in the period in
which they arise.
Non-monetary items denominated in foreign currency are valued at the exchange rates prevailing on the date of transactions.
Therefore, as a policy, in the mines with rated capacity of one million tonnes per annum and above, cost of Stripping is charged
on technically evaluated average stripping ratio (OB: COAL) at each mine with due adjustment for stripping activity asset and ratio-
variance account after the mines are brought to revenue.
Net of balances of stripping activity asset and ratio variance at the Balance Sheet date is shown as Stripping Activity Adjustment
under the head Non - Current Provisions / Other Non-Current Assets 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 permissible limits, as detailed hereunder:-
However, where the variance is beyond the permissible limits as above, the measured quantity is considered.
In case of mines with rated capacity of less than one million tonne, the above policy is not applied and actual cost of stripping
activity incurred during the year is recognised in Statement of Profit and Loss.
2.21 Inventories
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
2.24.1 Judgements
In the process of applying the Company’s accounting policies, management has made the following judgements, which have
the most significant effect on the amounts recognised in the financial statements:
2.24.1.2 Materiality
Ind AS applies to items which are material. Management uses judgement in deciding whether individual items or groups of
item are material in the financial statements. Materiality is judged by reference to the size and nature of the item. The deciding factor is
whether omission or misstatement could individually or collectively influence the economic decisions that users make on the basis of
the financial statements. Management also uses judgement of materiality for determining the compliance requirement of the Ind AS. In
particular circumstances either the nature or the amount of an item or aggregate of items could be the determining factor. Further the
Company may also be required to present separately immaterial items when required by law.
Errors/omissions discovered in the current year relating to prior periods are treated as immaterial and adjusted during the current
year, if all such errors and omissions in aggregate does not exceed 0.50% of total revenue from Operations (net of statutory levies) as
per last audited financial statement of CIL Consolidated.
2.24.2.2 Taxes
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets
that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.
2.24.2.6 Provision for Mine Closure, Site Restoration and Decommissioning Obligation
In determining the fair value of the provision for Mine Closure, Site Restoration and Decommissioning Obligation, assumptions
and estimates are made in relation to discount rates, the expected cost of site restoration and dismantling and the expected timing of
those costs. The Company estimates provision using the DCF method considering life of the project/mine based on
Ø Estimated cost per hectare as specified in guidelines issued by Ministry of Coal, Government of India
Ø The discount rate (pre tax rate) that reflect current market assessments of the time value of money and the risks specific
to the liability.
c. FVTOCI Fair value through Other i. PPE Property, Plant and Equipment
Comprehensive Income
d. FVTPL Fair value through Profit & Loss j. SPPI Solely Payment of Principal and Interest
148
NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE 3 : PROPERTY , PLANT AND EQUIPMENTS
(` in Crores)
Land Reclamation/ Building (including Plant and Telecommu- Railway Furniture and Office Other Mining Surveyed
Particulars Freehold Land Other Land Site Restoration water supply, roads Vehicles Aircraft Others Total
Equipments nication Sidings Fixtures Equipments Infrastructures off Assets
Costs and culverts)
Carrying Amount:
As at 1st April, 2017 17.49 670.49 475.60 189.15 1,461.51 1.79 34.73 9.67 32.45 12.24 — 198.26 82.57 — 3,185.95
Additions — 64.39 — 61.23 206.64 0.07 — 2.07 10.83 0.06 — 13.05 3.72 — 362.06
Deletions/Adjustments — — — — (10.17) — — — (0.06) (0.01) — (0.29) (5.78) — (16.31)
As at 31st March, 2018 17.49 734.88 475.60 250.38 1,657.98 1.86 34.73 11.74 43.22 12.29 — 211.02 80.51 — 3,531.70
As at 1st April, 2018 17.49 734.88 475.60 250.38 1,657.98 1.86 34.73 11.74 43.22 12.29 — 211.02 80.51 — 3,531.70
Additions — 26.57 — 46.24 144.78 1.75 234.05 3.34 13.68 0.12 — 55.86 6.70 — 533.09
Deletions/Adjustments — — (2.97) (0.87) (24.37) — (43.54) — (7.26) (0.01) — (3.43) (21.99) — (104.44)
CENTRAL COALFIELDS LIMITED
As at 31st March, 2019 17.49 761.45 472.63 295.75 1,778.39 3.61 225.24 15.08 49.64 12.40 — 263.45 65.22 — 3,960.35
Accumulated Depreciation and Impairment
As at 1st April, 2017 — 69.63 95.07 17.38 466.24 0.37 6.86 4.24 12.16 2.49 — 42.32 46.39 — 763.15
Charge for the year — 54.98 36.13 10.68 213.76 0.14 3.94 1.44 7.83 1.53 — 17.94 — — 348.37
Impairment — — — — — — — — — — — 5.83 (1.65) — 4.18
Deletions/Adjustments — 0.78 — (0.07) (6.30) — — (0.01) 0.06 — — 0.48 (0.03) — (5.09)
As at 31st March, 2018 — 125.39 131.20 27.99 673.70 0.51 10.80 5.67 20.05 4.02 — 66.57 44.71 — 1,110.61
As at 1st April, 2018 — 125.39 131.20 27.99 673.70 0.51 10.80 5.67 20.05 4.02 — 66.57 44.71 — 1,110.61
149
Charge for the year — 56.73 34.76 13.93 202.02 0.36 9.55 1.76 8.10 1.38 — 29.08 — — 357.67
Impairment — — — — — — — — — — — 5.75 (19.75) — (14.00)
Deletions/Adjustments — 0.78 2.47 0.82 (8.68) 0.11 11.56 (1.09) (4.21) — — 8.53 (0.31) — 9.98
As at 31st March, 2019 — 182.90 168.43 42.74 867.04 0.98 31.91 6.34 23.94 5.40 — 109.93 24.65 — 1,464.26
Net Carrying Amount
As at 31st March, 2019 17.49 578.55 304.20 253.01 911.35 2.63 193.33 8.74 25.70 7.00 — 153.52 40.57 — 2,496.09
As at 31st March, 2018 17.49 609.49 344.40 222.39 984.28 1.35 23.93 6.07 23.17 8.27 — 144.45 35.80 — 2,421.09
1. In pursuance of compliance of IND AS, Gross value less accumulated depreciation as on 01.04.2015 was considered as carrying value on transition date.
Building
(including Other Mining
Freehold Land Reclamation/ Plant and Telecommuni- Railway Furniture and Office Surveyed off
Particulars Other Land water supply, Vehicles Aircraft Infrastruc- Others Total
Land Site Restoration Costs Equipments cation Sidings Fixtures Equipments Assets
roads and tures
culverts)
Gross Carrying Amount:
As at 1st April, 2015 16.87 630.42 656.05 437.66 3,335.00 16.90 88.08 20.77 50.16 32.79 — 759.19 71.73 — 6,115.62
Accumulated Depreciation and Impairment
As at 1st April, 2015 — 372.29 176.30 270.57 2,239.44 15.24 73.22 15.18 36.96 26.36 — 652.32 — — 3,877.88
Net carrying Amount 16.87 258.13 479.75 167.09 1,095.56 1.66 14.86 5.59 13.20 6.43 — 106.87 71.73 — 2,237.74
2. Other Land includes Land acquired under Coal Bearing Areas (Acquisition and Development) Act, 1957, Land Acquisition Act, 1984 and other Acts.
3. Depreciation is provided based on estimated useful life, reviewed at the end of each year by the empowerd committee as referred in Significant Accounting Policy para no. 2.8. There is no significant component having different useful life of value, hence component accounting has not been considered.
4. During the current period, impairment has been withdrawn in respect of Surveyed off Assets amounting to ` 19.75 Crs. (P.Y. ` 1.65 Crs.).
5. In terms of lease agreements, the company has granted to its customers, a right to occupy and use of certain assets of the company having gross value of ` 88.09 Crs. and wdv of Rs. ` 2.50 Crs.
6. Total Depreciation amounting to ` 357.67 Crs. includes amortisation of ` 29.08 Crs. related to other Mining Infrastructures.
ANNUAL REPORT 2018-19
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Carrying Amount:
As at 1st April, 2017 103.60 64.08 847.84 139.24 — 1,154.76
Additions 96.41 13.56 467.60 38.99 — 616.56
Capitalisation/ Deletions (57.97) (29.59) — (12.00) — (99.56)
As at 31st March, 2018 142.04 48.05 1,315.44 166.23 — 1,671.76
As at 1st April, 2018 142.04 48.05 1,315.44 166.23 — 1,671.76
Additions 127.99 16.22 779.95 144.64 — 1,068.80
Capitalisation/ Deletions (65.87) (29.06) (165.08) (106.86) — (366.87)
As at 31st March, 2019 204.16 35.21 1,930.31 204.01 — 2,373.69
Accumulated Provision and Impairment
As at 1st April, 2017 1.60 3.11 7.70 9.82 — 22.23
Charge for the year 0.35 2.16 3.85 1.82 — 8.18
Impairment — — — 1.45 — 1.45
Deletions/Adjustments (0.01) (0.20) — (0.51) — (0.72)
As at 31st March, 2018 1.94 5.07 11.55 12.58 — 31.14
As at 1st April, 2018 1.94 5.07 11.55 12.58 — 31.14
Charge for the year 0.03 0.65 0.12 3.52 — 4.32
Impairment — — — 6.99 — 6.99
Deletions/Adjustments (0.72) (3.78) (11.55) (7.89) — (23.94)
As at 31st March, 2019 1.25 1.94 0.12 15.20 — 18.51
Net Carrying Amount
As at 31st March, 2019 202.91 33.27 1,930.19 188.81 — 2,355.18
As at 31st March, 2018 140.10 42.98 1,303.89 153.65 — 1,640.62
1. In pursuance of compliance of IND AS, Gross value less accumulated depreciation as on 01.04.2015 was considered as carrying value on transition date.
Building Plant Railway Development Others Total
(including water supply, and Sidings
roads and culverts) Equipments
2. In case of machinery/assets, which could not be put to use for more than three years from the date of purchase/ acquisition, provision equivalent to depreciation
w.e.f. the fourth year has been made during the year amounting to ` 4.32 Crs. (previous year ` 8.18 Crs.) shown under note 33 of the financial statements.
3. CIL Board in its 350th Board meeting approved the revised project cost of ` 2399.07 Crs. in respect of Tori Shivpur Rail line project for facilitating evacuation of
coal against which ` 2431.13 Crs. has been deposited with East Central Railway. EC Railway has spent ` 1855.64 Crs. which has been recoginised as enabling
Asset under the head “ Railway Siding “ in CWIP and the balance amount of ` 575.49 Crs. has been shown as Capital Advance in Note 10. The Company has
received a grant of ` 536.55 Crs. till date from CCDAC against the said project.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Carrying Amount:
As at 1st April, 2017 237.83
Additions 23.51
Deletions/Adjustments —
As at 31st March, 2018 261.34
As at 1st April, 2018 261.34
Additions 75.35
Deletions/Adjustments 69.41
As at 31st March, 2019 406.10
Accumulated Provision and Impairment
As at 1st April, 2017 0.67
Charge for the year —
Impairment —
Deletions/Adjustments —
As at 31st March, 2018 0.67
As at 1st April, 2018 0.67
Charge for the year —
Impairment —
Deletions/Adjustments —
As at 31st March, 2019 0.67
Net Carrying Amount
As at 31st March, 2019 405.43
As at 31st March, 2018 260.67
In pursuance of compliance of IND AS, Gross value less accumulated depreciation as on 01.04.2015 was considered as carrying value on
transition date.
Gross Carrying Amount:
As at 1st April, 2015 176.04
Accumulated Provision and Impairment
As at 1st April, 2015 2.21
Net Carrrying Amount 173.83
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Carrying Amount
As at 1st April, 2017 5.21 1.71 — 6.92
Additions 0.01 — — 0.01
Deletions/Adjustments — — — —
As at 31st March, 2018 5.22 1.71 — 6.93
1. Coal blocks meant for sale represents expenses incurred towards initial development on mines to be recovered on disposal of such blocks by
the authority.
2. In pursuance of compliance of IND AS, Gross value less accumulated depreciation as on 01.04.2015 was considered as carrying value
on transition date.
Gross Carrying Amount :
As at 1st April, 2015 4.74 1.71 — 6.45
Accumulated Provision and Impairment
As at 1st April, 2015 — — — —
Net Carrrying Amount 4.74 1.71 — 6.45
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE 7 : INVESTMENTS
(` in Crores)
No. Shares As at As at
Held 31.03.2019 31.03.2018
—————— —————— ——————
Non Current
Investment in Shares
Other Investments
In Secured Bonds — —
In Co-operative Shares — —
—————— ——————
Total 32.00 32.00
—————— ——————
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
The company invests in liquid scheme (daily dividend) of the above mutual funds. In the daily dividend scheme, dividends are received on daily basis
in the form of units of mutual fund and the value of the NAV of the scheme remain constant.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE standalone FINANCIAL STATEMENTS
AS AT 31ST MARCH, 2019
NOTE 8 : LOANS
(` in Crores)
As at As at
31.03.2019 31.03.2018
—————— ——————
Non-Current
Loans to Employees
— Secured, considered good 0.66 0.47
— Unsecured, considered good — —
— Have significant increase in credit risk — —
— Credit impaired — —
—————— ——————
0.66 0.47
Less:
Allowance for doubtful loans — —
—————— ——————
0.66 0.47
—————— ——————
CLASSIFICATION
Secured, considered good 0.66 0.47
Unsecured, Considered good — —
Have significant increase in Credit risk — —
Credit impaired — —
Current
Loans to Employees
CLASSIFICATION
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
1. Since coal became excisable w.e.f. 01.03.2011, Royalty and SED were considered as “Other Taxes” and excluded from the
Transaction Value. Consequent upon the summon issued by the Directorate General of Central Excise Intelligence (DGCEI),
New Delhi and discussion held thereon, CIL, Holding Company, who represented the issue, has advised to include Royalty and
SED in the Transaction Value and pay Central Excise Duty under protest till the case pending in the Nine Member Bench of
Hon’ble Supreme Court is disposed off. Accordingly `85.14 Crs.has been paid under protest against coal dispatched and on
consumption of raw coal in washeries during the period from March’2011 to February’2013 and consequently supplementary
bills have been raised for the said period to the tune of `79.95 Crs. Out of `79.95 Crs., balance realizable amount of `4.56 Crs.
from cash sales customers has been shown under the head “Other Receivable”. Out of `4.56 Crs., customers have obtained
stay order for `2.66 Crs. from Hon’ble High Courts of Kolkata and Jharkhand and against balance of `1.90 Crs., provision of
`1.90 Crs. has been made.
2. Deposit with banks under mine closure plan is `1182.01 Crs. (Previous Year `1019.85 Crs.) including interest on Escrow Account
of `253.91 Crs. (Previous Year `198.81 Crs.) refer note no. 21.
3 *It includes fraudulent payment of `0.80 Crs. (refer para no. 7.10 of Note- 38)
4 Interest accrued on Bank Deposits includes accrued interest on deposits under mine closure plan of `5.38 Crs.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
As at As at
31.03.2019 31.03.2018
—————— ——————
(i) Capital Advances 986.23 1,503.94
Less : Provision for doubtful advances 0.09 986.14 1.29 1,502.65
———— ————
(ii) Advances other than Capital Advances
(a) Security Deposit for utilities 1.21 1.16
Less : Provision for doubtful deposits — 1.21 — 1.16
———— ————
(b) Other Deposits and advances — —
Less : Provision for doubtful deposits — — — —
———— ————
(c) Advances to related parties 136.59 175.58
———— ————
TOTAL 1,123.94 1,679.39
———— ————
2 Capital Advance of ` 986.23 Crs. Includes ` 575.49 Crs. given to EC Railway for construction of Tori — Shivpur Rail Line. (Refer
Note-4)
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
As at As at
31.03.2019 31.03.2018
—————— ——————
(a) Advance for Revenue (for goods & services) 68.56 128.56
Less : Provision for doubtful advances 0.44 68.12 0.44 128.12
———— ————
(b) Advance payment of statutory dues 440.49 485.07
Less : Provision for doubtful advances 0.31 440.18 0.31 484.76
———— ————
(c) Advance to Related Parties — —
(d) Other Advances and Deposits 1,239.75 1,017.32
Less : Provision for doubtful advances 18.17 1,221.58 18.26 999.06
———— ————
(e) Input Tax Credit Receivable 845.13 481.62
Less: Provision — 845.13 — 481.62
———— ————
(f) MAT Credit Entitlement — —
Less: Provision — — — —
———— ————
———— ————
TOTAL 2,575.01 2,093.56
———— ————
1 Advance for Revenue includes ` 8.74 Crs. (P.Y. ` 11.73 Crs.) paid to various Govt. Agencies/ Departments against CSR
activities.
2 By virtue of enactment of Cess and Other Taxes on Minerals (Validation) Act, 1992, the Company, in 1992-93, raised supplementary
bills on customers up to 4th April, 1991 for ` 100.33 Crs. on account of Cess and Sales Tax thereon. The said amount is
recoverable from customers and shown under the head Claim Receivable others and the corresponding amount has also been
included in statutory dues payable for Royalty and Cess under the head “ Other Current Liabilities” (Note-23).
3 Goods and Service Tax has been implemented w.e.f. 01.07.2017 by subsuming all other taxes. Input Tax Credit receivables for
` 845.13 Crs. as on 31.03.2019 includes credit transit through GST TRAN-1 of ` 143.25 Crs. (Related to pre-GST era), which
could not be utilized during the period due to inverted tax structure and pending scrutiny of GSTR TRAN-1 at Commercial Tax
Department. The same shall be utilized/claimed in the subsequent periods on completion of the scruitiny.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE 12 : INVENTORIES
(` in Crores)
As at As at
31.03.2019 31.03.2018
—————— ——————
(a) Stock of Coal 1,229.85 1,206.37
Coal under Development — —
—————— ——————
1,229.85 1,206.37
—————— ——————
(b) Stock of Stores & Spares (at cost) 110.39 133.50
Add: Stores-in-transit 8.76 4.42
—————— ——————
Net Stock of Stores & Spares (at cost) 119.15 137.92
—————— ——————
(c) Stock of Medicine at Central Hospital 0.58 0.82
(d) Workshop Jobs and Press jobs 4.08 4.12
—————— ——————
Total 1,353.66 1,349.23
—————— ——————
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
ANNEXURE TO NOTE – 12
(Qty in Lakh tonnes) (Value in ` Crores)
Table – A
NON-VENDABLE STOCK/
OVERALL STOCK VENDABLE STOCK
MIXED STOCK
Particulars
Qty. Value Qty. Value Qty. Value
8. Break-up of Difference:
(C ) Excess beyond 5% — — — — —
(D ) Shortage beyond 5% — — — — — —
9. Closing stock adopted in A/c.( 6-8A+8B) 138.66 924.78 1.21 — 137.45 924.78
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Washed/Deshaled Coal
Raw Coal Other Products* Total
Particulars Coking Non-Coking
Qty Value Qty Value Qty Value Qty Value Qty Value
Opening Stock (Audited) 135.90 952.31 0.72 36.49 0.34 3.73 14.34 213.84 151.30 1,206.37
Less: Non-vendable Coal/Mixed Stock 1.21 — — — — — — — 1.21 —
Adjusted Opening Stock ( Vendable) 134.69 952.31 0.72 36.49 0.34 3.73 14.34 213.84 150.09 1,206.37
Production 687.22 14,693.02 8.05 564.66 66.31 1,881.59 14.07 914.56 775.65 18,053.83
Offtake
(A) Outside Despatch 592.52 13,190.23 8.07 571.56 66.37 1,882.94 13.28 855.30 680.24 16,500.03
(B) Coal feed to Washeries 91.94 1,530.28 — — — — — 91.94 1,530.28
(C) Own Consumption — 0.04 — — — — — — — 0.04
Closing Stock 137.45 924.78 0.70 29.59 0.28 2.38 15.13 273.10 153.56 1,229.85
Less: Shortage — — — — — —
Closing Stock (Adopted) 137.45 924.78 0.70 29.59 0.28 2.38 15.13 273.10 153.56 1,229.85
1 Value of Despatch of Other Products includes value of Non Coking Slurry and Rejects, but quantity of Despatch does not include despatch of Non Coking Slurry
50963 MT (P.Y. 15886 MT) and Rejects (Both Coking & Non Coking) 597364 MT (P.Y. 1071303 MT).
2 Closing Stock of Non Coking Slurry and Coking and Non Coking Rejects as on 31.03.2019 is 258670 MT (P.Y. 275035 MT) and 7232847 MT (P.Y. 1516069 MT)
repectively, valued at NIL in absence of availability of ready market. Sales are recognised on realisable basis.
3 Closing stock of coal is measured volumetrically and converted to weight (tonne) by applying the identified conversion factor. To take care of the inherent
approximation error of volumetric measurement and subsequent conversion thereof to weight by applying a mathematically determined conversion factor, the
variance of (+/-)5% between book stock and physical stock is ignored as per Accounting Policy of the Company being followed consistently over the years and
the net shortage of Book Stock (Vendable) of 3.37 Lakh tonne valuing ` 20.92 Crs. remains unadjusted in the Books of Account.
4 Contaminated Clean Coal of 83795 MT lying since 1995-96 at Kathara washery is not included in the closing stock and valued at NIL.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
PARTICULARS AMOUNT
Against Trade Receivable, a Provision of ` 860.45 Crs. (` 704.34 Crs.) has been recognised as Coal Quality Variance for sampling
results awaiited from referee samples.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
As at As at
31.03.2019 31.03.2018
—————— ——————
(a) Balances with Banks
in Deposit Accounts 0.90 4.10
in Current Accounts
- Interest Bearing 27.35 99.76
- Non-interest Bearing 216.29 52.55
in Cash Credit Accounts — —
(b) Bank Balances outside India — —
(c) Cheques, Drafts and Stamps in hand 0.01 5.55
(d) Cash on hand — 0.02
(e) Cash on hand outside India — —
(f) Others (Remittance in transit) — —
—————— ——————
Sub-total Cash and Cash Equivalents 244.55 161.98
(g) Bank Overdraft — —
—————— ——————
Total Cash and Cash Equivalents (net of Bank Overdraft) 244.55 161.98
—————— ——————
Note:
1. Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments
is ` NIL.
2. Balance of Cash on Hand is as per Cash Verification Report certified by the management.
3. The bank guarantees issued by CCL on account of two court cases i.e. Ghisha Lal Goyal Vs CCL in case 08/01 and M/s Nav Shakti Fuels Vs
CCL &Ors in FA No. 101/2007 against lien secured by Deposits in Account no. 0404002100045433 for an amount of ` 0.90 Crs.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
As at As at
31.03.2019 31.03.2018
—————— ——————
Deposits includes —
(i) ` 5.97 Crs. deposited against the order of the Hon’ble High Court, Kolkata against a claim from customer which includes interest of Rs.
1.84 Crs. with corresponding liability in Other Current Liability (Note-23).
(ii) ` 27.81 Crs. deposited as per order of Hon’ble High Court, Kolkata against 20% extra price charged form parties during the period Nov.
2006 to April 2008.
(iii) ` 15.96 Crs. Deposited against the order of the Hon’ble High Court, Jharkhand, case no. WP(C ) 4179 of 2016 against encashment of
Bank Guarantee of M/s. Adhunik Alloys & Power Limited.
(iv) Short Term loan amounting to ` 150 Crs. was raised in 2017-18 against Fixed deposit of ` 162 Crs.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
As at As at
31.03.2019 31.03.2018
—————— ——————
AUTHORISED
1,10,00,000 Equity Shares of ` 1000/- each 1,100.00 1,100.00
(1,10,00,000 Equity Shares of ` 1000/- each)
ISSUED, SUBSCRIBED AND PAID UP
94,00,000 Equity Shares of ` 1000/- each 940.00 940.00
(94,00,000 Equity Shares of ` 1000/- each)
————— —————
940.00 940.00
————— —————
1. Out of the above 9399997 Shares are held by the holding company, Coal India Limited (CIL) and balance 3 shares are held by its nominees.
2. Shares in the company held by each shareholder holding more than 5% Shares
As at 31.03.2019 As at 31.03.2018
3. The Company has only one class of equity shares having a face value ` 1000/- per share. The holders of the equity shares are entitled to receive
dividends as declared from time to time and are entitled to voting rights proportionate to their share holding at the meeting of shareholders.
No larger dividend shall be declared than is recommended by the Board of Directors.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE 18 : BORROWINGS
(` in Crores)
As at As at
31.03.2019 31.03.2018
—————— ——————
Non-Current
Term Loans — —
Other Loans — —
————— —————
Total — —
————— —————
CLASSIFICATION
Secured — —
Unsecured — —
Current
Loans repayable on demand
– From Banks — 150.00
– From Other Parties — —
————— —————
Total — 150.00
————— —————
CLASSIFICATION
Secured — 150.00
Unsecured — —
Loan Guaranteed by Directors & Others
Particulars of Loan Amount in ` crores Nature of Guarantee
N.A. NIL NA
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
As at As at
31.03.2019 31.03.2018
—————— ——————
Current
Trade Payables for Micro, Small and Medium Enterprises — —
Other Trade Payables for
Stores and Spares 122.12 129.24
Power and Fuel 33.63 34.21
Salary Wages and Allowances 328.40 323.56
Others — —
————— —————
TOTAL 484.15 487.01
————— —————
CLASSIFICATION
Secured — —
Unsecured 484.15 487.01
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
As at As at
31.03.2019 31.03.2018
—————— ——————
Non Current
Current
Unpaid dividends — —
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE 21 : provisions
(` in Crores)
As at As at
31.03.2019 31.03.2018
—————— ——————
Non Current
Employee Benefits
Employee Benefits
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Note :
1. Liability on account of NCWA-X amounting ` 14.63 Crs. has been netted off with advance of ` 1.06 Crs.
2. Reconciliation of Relamation of Land/ Site restoraion /Mine Closure :
3. Provision for Ex-Gratia for Non-Executive has been made based on ` 60500/- (P.Y. ` 57000/-) per employee per annum as per the
revised rate.
4. Leave Encashment Liabilities is netted off of ` 265.92 Crs., deposited with LIC against the Actuarial Liabilities.
5. Pursuant to the guidelines received from Ministry of Coal, Government of India, in connection to Mine Closure Plan, provision
for Mine Closure Expenses is made in the accounts based on the technical assessment of CMPDIL, a subsidiary of Coal India
Limited. The liability for such expenses as estimated by CMPDIL of each mine has been discounted @ 8% (i.e. G-Sec rate) and
the same is capitalised to arrive at the Mine Closure Liability as on first year of making such provision. Thereafter, the provision is
re-estimated in subsequent years by unwinding the discount to arrive at the provision as on 31.03.2019. Deposit in Escrow A/c is
` 1182.01 Crs. (P.Y. ` 1019.85 Crs.) including interest of ` 253.91 Crs. (P.Y. ` 198.81 Crs.) against the Mine Closure Provision of
` 1069.26 Crs. (P.Y. ` 1007.59 Crs.).
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
As at As at
31.03.2019 31.03.2018
—————— ——————
* It includes Grant received from CCDAC for Tori-Shivpur project amounting to ` 536.55 Crs. (P.Y. ` 434.17 Crs.) and strengthening
of road of NK Area of ` 4.29 Crs. (P.Y. ` 4.29 Crs.).
As at As at
31.03.2019 31.03.2018
—————— ——————
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Apex charges — —
Miscellaneous Income
* Interest on Deposit with Banks includes interest on Escrow Account of ` 60.48 Crs. (P.Y. ` 43.19 Crs.) including accrued interest of ` 5.38
Crs. (P.Y. ` 3.08 Crs.) ( Refer Note -21)
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
(` in Crores)
Opening Stock of Workshop made finished goods, WIP and Press Jobs 4.12 5.73
Closing Stock of Workshop made finished goods and WIP and Press Jobs 4.08 4.12
B Change in Inventory of Workshop made finished goods ,WIP and Press Jobs 0.04 1.61
————— —————
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Salary and Wages (incl. Allowances and Bonus etc.) 3,755.20 3,754.14
CSR Policy framed by Coal India Ltd. Incorporated the features of the Companies Act, 2013 and other relevant notifications. The fund for
CSR, 2% of the average net profit for the three immediate preceding financial years or ` 2.00 per tonne of coal production of previous
year, whichever is higher, comes to ` 45.78 Crs. (P. Y. ` 54.80 Crs.).
Yet to be paid
Particulars In Cash Total
in Cash
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE 30 : repairs
(` in Crores)
* Netted off with workshop Debit of ` 149.90 Crs. (P.Y. ` 140.07 Crs.).
(` in Crores)
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Others — —
—————— ——————
Total (B) 75.87 97.02
—————— ——————
Total (A-B) 93.95 1.01
—————— ——————
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Doubtful advances — —
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
1. Rehabilitation Charges as per the directives of Ministry of Coal, ` 41.03 Crs. (P.Y. ` 40.54 Crs.) is debited on the basis of debit memo received
from CIL.
2. Service Charges amounting to ` 68.72 Crs. ( P.Y. ` 63.43 Crs.) levied by CIL, the Holding Company @ ` 10 per tonne of coal produced towards
rendering various services like procurement, marketing, Corporate Service etc. based on debit memo received from CIL.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Earlier Years — —
————— —————
Total 987.73 579.71
————— —————
Reconciliation of Tax Expenses and Accounting profit multiplied by Indian’s domestic Tax rate
Tax using the Company's domestic tax rate of 34.944% (P.Y. 34.608%) 940.76 480.33
Income Tax Expenses reported in Statement of Profit & Loss 979.24 855.41
Others — —
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
(ii) Income tax relating to items that will not be reclassified to profit or loss
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE – 38
ADDITIONAL NOTES TO
THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31st MARCH, 2019 (STANDALONE)
1. Fair Value Measurement
* Investment in Equity Shares in Subsidiary are measured at cost which stands at ` 32.00 Crore as on 31.03.2019
(` 32.00 Crore as on 31.03.2018) are not included above.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments
into the three levels prescribed under the accounting standard.
Investments :
Financial Liabilities
If any item — — — —
Financial assets and liabilities measured at amortised cost for 31st March 2019 31st March 2018
which fair values are disclosed at 31st March, 2019 Level 1 Level 3 Level 1 Level 3
Financial Assets
Investments:
Preference Shares — — — —
Other Investments — — — —
Financial Liabilities
Borrowings — — — 150.00
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices. This includes Mutual fund which is
valued using closing Net Asset Value (NAV) as at the reporting date.
Level 2 : The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs
required to fair value an instrument are observable, the instrument is included in level 2.
Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
This is the case for unlisted equity securities, preference shares borrowings, security deposits and other liabilities taken included in
level 3.
Valuation techniques used to value financial instruments include the use of quoted market prices (NAV) of instruments in respect
of investment in Mutual Funds.
At present there are no fair value measurements using significant unobservable inputs.
(e) Fair values of financial assets and liabilities measured at amortised cost
➢ The carrying amounts of trade receivables, short term deposits, cash and cash equivalents, trade payables are considered to
be the same as their fair values, due to their short-term nature.
➢ The Company considers that the Security Deposits does not include a significant financing component. The security deposits
coincide with the company’s performance and the contract requires amounts to be retained for reasons other than the provision of
finance. The withholding of a specified percentage of each milestone payment is intended to protect the interest of the company,
from the contractor failing to adequately complete its obligations under the contract. Accordingly, transaction cost of Security
deposit is considered as fair value at initial recognition and subsequently measured at amortised cost.
Significant estimates : The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques. The Company uses its judgment to select a method and makes suitable assumptions at the end of each reporting
period.
The Company’s principal financial liabilities comprise trade and other payables. The main purpose of these financial liabilities
is to finance the Company’s operations and to provide guarantees to support its operations. The Company’s principal financial assets
include loans, trade and other receivables, and cash and cash equivalents that is derived directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the
management of these risks. The Company’s senior management is supported by a risk committee that advises, inter alia, on financial
risks and the appropriate financial risk governance framework for the Company. The risk committee provides assurance to the Board
of Directors that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are
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identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and
agrees policies for managing each of these risks, which are summarized below.
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of
hedge accounting in the financial statements.
The Company risk management is carried out by the Board of Directors as per DPE guidelines issued by Government of India. The
Board provides written principles for overall risk management as well as policies covering investment of excess liquidity.
A. Credit Risk
Receivables arise mainly out of sale of Coal. Sale of Coal is broadly categorized as sale through fuel supply agreements (FSAs) and
e-auction.
Macro - economic information (such as regulatory changes) is incorporated as part of the fuel supply agreements (FSAs) and e-auction
terms.
As contemplated in and in accordance with the terms of the New Coal Distribution Policy (NCDP), the company enters into legally
enforceable FSAs with customers or with State Nominated Agencies that in turn enters into appropriate distribution arrangements with
end customers. Our FSAs can be broadly categorized into:
l FSAs with customers in the power utilities sector, including State power utilities, private power utilities (“PPUs”) and
independent power producers (“IPPs”);
l FSAs with customers in non-power industries (including captive power plants (“CPPs”)); and
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E-Auction Scheme
The E-Auction scheme of coal has been introduced to provide access to coal for customers who were not able to source their
coal requirement through the available institutional mechanisms under the NCDP for various reasons, for example, due to a less than
full allocation of their normative requirement under NCDP, seasonality of their coal requirement and limited requirement of coal that does
not warrant a long-term linkage. The quantity of coal to be offered under E-Auction is reviewed from time to time by the Ministry of Coal.
Credit risk arises when counterparty defaults on contractual obligations resulting in financial loss to the company.
Expected Credit Loss : The Company provides for expected credit risk loss for doubtful/ credit impaired assets, by lifetime
expected credit losses (Simplified approach).
Expected Credit losses for trade receivables under simplified approach
Due for 2 Due for 6 Due for 1 Due for 2 Due for 3 Due for more
Ageing Total
months months year years years than 3 years
Gross Carrying Amount 390.66 742.93 380.74 237.15 269.60 157.54 2178.62
Expected Loss rate 23.85 32.21 44.94 79.41 87.54 98.74 49.73
Expected Credit Loss allowance – Doubtful debts — — — 56.53 18.63 147.88 223.04
As on 31.03.2018
(` in Crs.)
Due for 2 Due for 6 Due for 1 Due for 2 Due for 3 Due for more
Ageing Total
months months year years years than 3 years
Gross Carrying Amount 480.06 425.67 591.35 170.13 132.18 167.08 1966.47
Expected Loss rate 26.12 30.50 34.01 73.39 82.18 93.17 42.99
Expected Credit Loss allowance – Doubtful debts 18.54 21.56 20.09 30.08 26.55 24.31 141.13
(` in Crore)
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The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected
loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on
the Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
A. Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding
through an adequate amount of committed credit facilities to meet obligations when due. Due to the dynamic nature of the underlying
businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines.
Management monitors forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities) and cash and
cash equivalents on the basis of expected cash flows. This is generally carried out at local level in accordance with practice and limits set
by the Company. The bank borrowings of Central Coalfields Limited has been secured by creating charge against stock of coal, stores and
spare parts and book debts within consortium of banks. The total working capital credit limit available to CCL is ` 55.00 Crore, of which
fund based limit is ` 83.00 Crore. Further, ` 2000.00 Crore was set up as non-fund based limit outside consortium in order to facilitate
import of HEMM. Coal India Limited is contingently liable to the extent such facility is actually utilized by the Subsidiary Companies.
The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.
As at 31.03.2019 As at 31.03.2018
less than between one more than less than between one more than
one year to five years 5 years one year to five years 5 years
Non- derivative financial liabilities
B. Market Risk
Foreign currency risk arises from future commercial transactions and recognized assets or liabilities denominated in a currency
that is not the Company’s functional currency (INR) .The Company is exposed to foreign exchange risk arising from foreign currency
transactions. Foreign exchange risk in respect of foreign operation is considered to be insignificant. The Company also imports and risk
is managed by regular follow up. Company has a policy which is implemented when foreign currency risk becomes significant.
The Company’s main interest rate risk arises from bank deposits with change in interest rate exposes the Company to cash flow
interest rate risk. Company policy is to maintain most of its deposits at fixed rate.
Company manages the risk using guidelines from Department of public enterprises (DPE), diversification of bank deposits credit
limits and other securities.
C. Capital Management
The company being a government entity manages its capital as per the guidelines of Department of investment and public asset
management under Ministry of Finance.
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(d) The Company operates some defined benefit plans as follows which are valued on actuarial basis :
(a) Funded
o Gratuity
o Leave Encashment
o Medical Benefits
(b) Unfunded
o Settlement Allowance
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Total liability as on 31.03.2019 based on valuation made by the Actuary, details of which are mentioned below is ` 3225.32 Crore.
(` in Crs.)
Opening Actuarial Liability Incremental Liability /Adjustment Closing Actuarial Liability
Particulars as on 01.04.2018 during the Year as on 31.03.2018
Gratuity 2388.71 70.33 2459.04
Actuarial (Gain) / Loss on obligations due to change in financial assumption 28.56 (113.16)
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(` in Crs.)
(` in Crs.)
Superannuation at Age 60 60
Early Retirement and Disablement 0.30% p.a. 0.30% p.a.
(` in Crs.)
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(` in Crs.)
Actuarial (Gain) / Loss on obligations due to change in financial assumption 28.56 (113.16)
Net (Income) / Expense for the period recognized in Other Comprehensive Income 30.27 (155.59)
Mortality Table
25 0.000984
30 0.001056
35 0.001282
40 0.001803
45 0.002874
50 0.004946
55 0.007888
60 0.011534
65 0.0170085
70 0.0258545
(` in Crs.)
Statement Showing expected return on Plan Asset at end Measurement As at 31.03.2019 As at 31.03.2018
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Year (` in Crore)
1 301.78
2 267.32
3 240.49
4 220.90
5 212.60
6 to 10 1320.32
31.03.2019
Increase Decrease
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(` in Crs.)
(` in Crs.)
Superannuation at Age 60 60
Early Retirement and Disablement 0.30% p.a. 0.30% p.a.
Voluntary Retirement — —
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(` in Crs.)
Mortality Table
25 0.000984
30 0.001056
35 0.001282
40 0.001803
45 0.002874
50 0.004946
55 0.007888
60 0.011534
65 0.0170085
70 0.0258545
Statement Showing expected return on Plan Asset at end Measurement As at 31.03.2019 As at 31.03.2018
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31.03.2019
Increase Decrease
Year (` in Crore)
1 49.14
2 39.66
3 41.98
4 40.10
5 39.40
6 to 10 242.89
The Company provides Post-Retirement Medical Facility to the retired employees and their spouse. The facilityis covered by separate
Post-Retirement Medical scheme for executive and non-executive. Scheme for the medical benefit for executive retired prior to 01.01.2007
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is administered through separate “Contributory Post-Retirement Medical Scheme for Executive Trust”. Liability for the medical benefits
are recognized based on actuarial valuation. For executive retired prior to 01.01.2007 - funded status as on 31.03.2019 ` 98.79 Crore
(Nil) and liability for the same as on 31.03.2019 is ` 177.66 Crore (` 174.14 Crore).
Pension
The company has a defined contribution pension scheme for its employees, which is administered through CIL Executive Defined
Contribution Pension Scheme-2007 trust. Funded status as on 31.03.2019 ` 129.89 Crore (Nil) and liability for the same as on 31.03.2019
is ` 123.66 Crore (` 252.13 Crore).
4. Unrecognized items
(a) Contingent Liabilities
I. Claims against the company not acknowledged as debt
(` in Crores.)
c. Total claims settled during the year (a+b) 167.26 169.46 — 90.10 426.82
Following the judgment of the Hon’ble Supreme Court of India in the case of Common Cause vs. UOI and Others (W.P. (C)
No. 114 of 2014), certain District Mining Officers of Jharkhand, issued demand notices in 41 projects, alleging the production in these
projects exceeding the available Environmental Clearances limits.
The Company has duly filed revision petition against the above demands, before the Hon’ble Coal Tribunal, Ministry of Coal,
Govt. of India, the adjudicating authority under the MMDR, Act. The Revisional Authority Ministry of Coal Govt. of India in their interim
order dated 16.01.2018 has admitted the revision application and stayed the execution of the demand order (of ` 13389.38 Crores) till
further order.
The demand notice was issued in favour of CCL on behalf of 41 projects and the issue is dealt by Environmental Department
of CCL, hence, the same is kept at HQ. and shown under contingent liability of CCL.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Central Government :
Others — —
Others:
2
Entry Tax 25.00 25.00
II. Guarantee
(b) Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for as on 31.03.2019 : ` 1143.72
Crores (P.Y. ` 1432.87 Crores).
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
5. Group Information
% Equity Interest
Country of
Name Principal activities
Incorporation 31st March, 31st March,
2019 2018
6. Other Information
(a) Earnings per share
(i) Net profit after tax attributable to Equity Share Holders 1704.47 807.78
(iii) Basic and Diluted Earnings per Share in Rupees (Face value `1000/- per share) 1813.27 859.34
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Mr. Ashish Upadhyay, Jt. Secretary, Ministry of Coal Government Director 05.02.2018
The Company is a Central Public Sector Undertaking (CPSU) controlled by Central Government by holding majority of shares (Note 16).
Pursuant to Paragraph 25 and 26 of Ind AS 24, entities over which the same government has control or joint control of, or significant
influence, then the reporting entity and other entities shall be regarded as related parties. Transactions with these parties are carried out
at market terms at arm length basis. The Company has applied the exemption available for government related entities and has made
limited disclosures in the financial statements.
(` in Crores.)
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Note :
(i) Besides above, whole time Directors have been allowed to use of cars for private journey upto a ceiling of 1000 KMs on
payment of ` 2000 per month as per service conditions.
Sl. No. Payment to Independent Directors For the year ended For the year ended
31.03.2019 31.03.2018
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Ministry Of Corporate Affairs vide notification dated 30th March 2019 has notified Indian Accounting Standard (Ind AS) 116,
Leases which shall come into force on the 1st day of April 2019.
This Standard sets out the principles for the recognition, measurement, presentation, and disclosure of leases. The objective is
to ensure that lessees and lessor provide relevant information in a manner that faithfully represents those transactions.
Retrospectively to each prior reporting period presented applying IND AS 8 i.e. 1 April 2018.
Retrospectively with the cumulative effect of initially applying the standard on application date i.e. 1 April 2019.
Management is in the process of selecting the appropriate method of transition and estimating the impact in the Financial
Statement.
Ministry of Corporate Affairs vide notification dated 30th March 2019 has notified amendments to Ind AS
19, ‘Employee Benefits’, in connection with accounting for plan amendments, curtailments and settlements.
The amendments require an entity:
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
l to use updated assumptions to determine current service cost and net interest for the remainder of the period after a
plan amendment, curtailment or settlement; and
l to recognise in profit or loss as part of past service cost, or a gain or loss on settlement, any reduction in a surplus, even
if that surplus was not previously recognised because of the impact of the asset ceiling.
Effective date for application of this amendment is annual period beginning on or after 1 April 2019. Management is in the process
of estimating the impact of the above in the Financial Statement.
As per existing practice, goods purchased by Coal India Ltd. on behalf of subsidiary companies are accounted for in the books
of respective subsidiaries directly.
Insurance and escalation claims are accounted for on the basis of admission/final settlement.
Provisions made in the accounts against slow moving/non-moving/obsolete stores, claims receivable, advances, doubtful debts
etc. are considered adequate to cover possible losses.
In the opinion of the Management, assets other than fixed assets and non-current investments have a value on realisation in
the ordinary course of business at least equal to the amount at which they are stated.
Estimated liability has been provided where actual liability could not be measured.
Balance confirmation/reconciliation is carried out for cash &bank balances, certain loans & advances, long term liabilities and
current liabilities. Provision is taken against all doubtful unconfirmed balances.
Significant accounting policy (Note-2) has been drafted to elucidate the accounting policies adopted by the Company in
accordance with Indian Accounting Standards (Ind ASs) notified by Ministry of Corporate Affairs (MCA) under the Companies
(Indian Accounting Standards) Rules, 2015.
(k) Leases
(i) M/s. Imperial Fastners Pvt. Limited, In terms of lease agreement, has been granted a right to occupy and use the
assets of the Company. The cost of gross carrying amount of the asset is ` 80.19 Crores and progressive depreciation
there on is ` 77.69 Crores and WDV is ` 2.50 Crores (reserve value). The future minimum lease payment receivable
in the aggregate during the period of lease is ` 28.32 Crores. The details of future lease payment receivables are as
under :
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
(` in Crores.)
(ii) Later than one year and not later than five years 15.36 15.36
(iii) Later than five years and till the period of lease 9.12 12.96
(ii) Punjab State Electricity Board, In terms of lease agreement, has been granted a right to use 15.50 acres of land of
the company. The cost of gross carrying amount of the asset is ` 7.90 Crores and progressive depreciation there on is
` 7.90 Crores and WDV is Nil. The future minimum lease payment receivable in aggregate during the period of lease is
` 3.36 Crores. The details of future lease payments receivable are as under :
(` in Crores.)
(ii) Later than one year and not later than five years 0.77 0.77
(iii) Later than five years and till the period of lease 2.40 2.59
(iii) EIPL, In terms of lease agreement, has been granted a right to occupy and use the assets of the company. The cost of
gross carrying amount of the asset is ` 4968 and progressive depreciation there on is ` 4968 and WDV is Nil. The future
minimum lease payment receivable in aggregate during the period of lease is ` 1.32 Lakhs. The details of future lease
payments receivable are as under :
(` in Lakhs)
(ii) Later than one year and not later than five years 0.48 0.48
(iii) Later than five years and till the period of lease 0.72 0.84
The Board consider a business from a prospect of significant product offering and have decided that presently there is one
single reportable segment being sale of Coal. Information of financial performance and assets is presented in the consolidated
information to statement of profit and loss and balance sheet.
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Revenue by destination is as follows :
(` In Crores)
Name of each parties having more than 10% of Revenue (Net) Amount Country
Customer - 1 2784.18
Customer - 2 2031.45
India
Others 6458.36
Total Revenue (Net) 11273.99
Particulars For the year ended 31.03.2019 For the year ended 31.03.2018
Types of Goods or Service
— Coal 11273.99 11013.30
— Others — —
Total Revenue from Contract with Customers 11273.99 11013.30
Types of Customers
— Power Sector 7539.22 7165.67
— Non-Power Sector 3734.77 3847.63
— Others or Services (CMPDIL) — —
Total Revenue from Contract with Customers 11273.99 11013.30
Types of Contracts
— FSA 8174.29 7639.29
— E-Auction 3099.70 3374.10
— Others — —
Total Revenue from Contract with Customers 11273.99 11013.30
Timing of Goods or Services
— Goods transferred at a point of time 11273.99 11013.30
— Goods transferred over time — —
— Services transferred at a point of time — —
— Services transferred over time — —
Total Revenue from Contract with Customers 11273.99 11013.30
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
(n) Provisions
The position and movement of various provisions as per Ind AS-37 except those relating to employee benefits which are valued
actuarially, as on 31.03.2019 are given below :
Opening Balance Addition during the Write back/Adj./ Paid Unwinding of Closing Balance as
Provisions
as on 01.04.2018 year during the year Discount on 31/03/2019
Note 3:- Property, Plant and Equipments :
Impairment of Assets : 20.36 5.75 4.86 — 30.97
Note 4:- Capital Work in Progress :
Against CWIP : 6.16 6.99 -4.86 — 8.29
Note 5:- Exploration And Evaluation Assets :
Provision and Impairment : 0.66 — — — 0.66
Note 8:- Loans :
Other Loans : — — — — —
Note 9:- Other Financial Assets:
Other Deposits and Receivables — — — — —
Security Deposit for utilities — — — — —
Current Account with Subsidiaries — — — — —
Claims & other receivables 3.85 1.60 0.69 — 4.76
Note 10 :-Other Non-Current Assets
Capital Advance 1.29 — 1.20 — 0.09
Note 11:- Other Current Assets
Advances for Revenue 0.44 — — — 0.44
Advance payment of statutory dues 0.31 — — — 0.31
Other Advances and Deposits 18.26 — 0.09 — 18.17
Note13:-Trade Receivables :
Provision for bad & doubtful debts: 141.13 155.80 73.89 — 223.04
Note 21 :- Non-Current & Current Provision :
Ex- Gratia 223.67 225.25 223.67 — 225.25
Performance Related Pay 57.26 123.18 26.52 — 153.92
Provision for National Coal Wage Agreement X
474.73 — 461.16 — 13.57
Provision for Executive Pay Revision
Others 136.26 — 118.06 — 18.20
Site Restoration/Mine Closure 1024.26 — 6.53 69.53 1087.26
7. GENERAL
7.1 Refund/Adjustment of tax from Tax Authorities are accounted for on cash basis. Additional demand for Income Tax, Royalty, Cess,
Sales Tax, Entry Tax etc. are accounted for after receipt of final order except as otherwise not recognized under IND AS-37.
7.2 The Government of Jharkhand has demanded Royalty for ` 2.55 Crores in respect of 9 LT non-vendable coal at Rajrappa Area
written-off in the year 1989. The company (CCL) preferred to appeal before Commissioner of Mines, Jharkhand but the same
was rejected. On rejection, the company filed writ petition WP 1754(c) of 2014 before Hon’ble High Court of Jharkhand and the
same was pending at the court. Last hearing date was 09.05.2016. Hon’ble High Court has directed Government of Jharkhand
to produce documentary evidence in support of their claim which has not been filed till date.
7.3 (a) There is a long pending dispute over capitalization cost of Rajrappa and Giddi Captive Power Plant, commissioned by
EIPL on Built Own and Operate ( BOO) basis and the dispute is pending in Civil Appeal No. 7403 of 2009, filed by the
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Company before the Hon’ble Supreme Court against the Order dated 31.07.2009 of the Jharkhand State Electricity
Regulatory Commission duly confirmed by the Appellate Tribunal.
(b) Pursuant to Interim Orders of the Hon’ble Supreme Court dated 14.09.12 and 23.11.12 passed in the said Appeal, the
Company had accounted for a liability of ` 94.33 Crores in 2012-13 upto the period March, 2008. Out of which ` 83.03
Crores had been paid to EIPL (erstwhile DLF Ltd ) as 25% deemed energy charges during the said period. Further, an
ad-hoc payment of ` 75 Crores and ` 25 Crores had been made on 20.11.13 and 10.01.14 respectively as per directives
of the Hon’ble Supreme Court. As directed by the Hon’ble Supreme Court revised amount payable from April’08 to
March’14 had been calculated based on the methodology adopted by JSERC in determining the revised tariff up to
the period March’ 08. Accordingly an amount of ` 23.25 Crores had been provided during the financial year 2013-14 in
addition to ` 94.33 Crores, which was already provided in the Financial Statements of 2012-13. For the financial year
2014-15, additional liability of ` 3.26 Crores has been provided. For the financial year 2015-16 additional liability of
` 0.26 Crores has also been provided. The details of balance receivable amount from EIPL are as under :
(i) Differential Tariff for the period upto March’08-in respect of ` 94.33 Crores
which liability has been provided in the Financial Statements
of 2012-13.
(ii) Differential Tariff for the period April’08- to March’14 in ` 23.25 Crore.
in respect of which liability has been provided in the year
2013-14.
(iii) Old keep back amount in respect of deemed energy charges ` 31.36 Crores
However, EIPL has submitted their demand for ` 302.63 Crores on 17.09.2012 including ` 134.20 Crores on account of
interest on delayed payment which is beyond the purview of PPA and the matter is pending before the Hon’ble Supreme
Court.
(c ) As per clause 1.18.3 of the Power Purchase Agreement with M/s. EIPL, from the date of expiry of one year from
commissioning of the respective power plant, increase/decrease of fuel components of tariff due to variation in fuel cost
shall be determined. The initial price of rejects as per clause 1.14 of PPA was ` 90 per tonne.
Accordingly calculation had been made as per clause 1.18.3 of PPA and additional revenue receivable on account of revision in
price of rejects net off with additional tariff payable on account of revised tariff due to increase in fuel cost had been considered
in the Financial Statements for the year 2013-14 and supplementary bill to EIPL had also been raised.
Subsequently, during the financial year 2014-15 the price of rejects was again revised based on the recommendations of the
CCL standing committee of Sales and Marketing department and the same was communicated to Director(Operation) of DLF
Ltd. vide letter Ref. No. GM(E&M)/DLF/14/ 3530-36 dated. 17.11.2014. As per letter, G grade slake coal which was the lowest
grade under UHV system of pricing applicable prior to 01.01.2012 will be charged for the period from July, 2000 to December,
2011 from EIPL. Consequent upon the issue of above letter, Sales bill and power tariff has been revised.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
As on 31.03.2016, the amount receivable from EIPL on account of supply of rejects after adjusting enhanced tariff was ` 38.69
Crores. Due to non-payment of the same, the following action has been taken:
As per clause 2.6 of the Power Purchase Agreement dated. 8th February, 1993, in the event of any dispute arising out of or in
relation to the agreement, the same shall be referred to the sole arbitration of an arbitrator mutually acceptable to CIL & EIPL
as per provisions of Arbitration Act. The emerging situation is that as the parties to the agreement have failed to mutually agree
to the appointment of an arbitrator, the petitioner (CCL) is left with no other alternative but to move to the Hon’ble High Court
for appointment of an arbitrator in exercising powers under section 11(6) of the Arbitration and Conciliation Act, 1996. The
Arbitration Application has been filed on 7th April, 2016. However, provision for ` 38.69 Crores has been made in the financial year
2015-16. The present status of this case is the Hon’ble Supreme Court has appointed Ld. Arbitrator as per Agreement claim
during 2017-18 and the same is pending before Ld. Arbitrator.
7.4 Theft of goods during the year is ` 0.46 Crores (Previous year ` 0.44 Crores), which has been duly accounted for.
7.5 Compensation Receivable in terms of “Fuel Supply Agreement” (FSA) is accounted for on receipt basis.
7.6 M/s. Garden reach Ship Builders & Engineering Company had been awarded contracts for supply and repairs of equipment in
the year 1990. Since, the work was not to the satisfaction, the company withheld the payment. Subsequently against the demand
of ` 49.68 Crores, the company agreed to pay ` 12.58 Crores, and the same has been provided in the accounts.
7.7 The Company has signed a MOU with the President of India acting through Sri R. Subrahmanyam, Additional Secretary, and
Ministry of Human Resource Development on 12th December, 2015 as third industry partner for setting of Indian Institute of
Information Technology, Ranchi (IIIT) under Public Private Partnership (PPP) mode in the state of Jharkhand. An amount of
` 3.20 Crores was remitted through RTGS to IIIT, Ranchi by the company
7.8 Lease agreement with M/s. IFPL was entered in the year 2005 for a period of 20 years, and is valid up to 2025. As per Agreement,
the company will supply washery rejects and IFPL will generate power and supply to Kathara Area. As per the provisions of
Lease agreement, IFPL will pay ` 32 Lakhs per month as Lease rent. IFPL has suspended operation from July 2018 and also
not making payment of Lease rent. As a result, a provision to the tune of ` 1.60 Crores has been made during the year 2018-19
towards the differential amount of lease rental receivables amounting to ` 4.02 Crores and Power expenses payable to IFPL for
` 2.42 Crores.
7.9 In terms of Memorandum of Understanding signed on 07.05.2015 between Central Coalfields Limited (CCL), IRCON International
Limited (IRCON) and the Govt. of Jharkhand (GoJ) for development, financing and implementation of Railway Infrastructure works
in the State of Jharkhand, a Subsidiary Company named as “Jharkhand Central Railway Limited”(JCRL) was incorporated on
31.08.2015 under the Companies Act, 2013 with an authorized capital of ` 5 Crores, which has subsequently been increased
to ` 500 Crores. The committed equity share holding pattern, as per MOA, of CCL, IRCON International Limited and Govt. of
Jharkhand are 64%, 26% and 10% respectively. As on Balance sheet date, JCRL has allotted shares to the value of ` 32.00
Crores to the company, ` 13.00 Crores to IRCON International Limited and ` 5.00 Crores to Government of Jharkhand. The
paid-up capital of JCRL as on 31.03.2019 is ` 50.00 Crores.
CCL has prepared Consolidated Financial Statements in addition to its Standalone Financial Statements for compliance of the
Section 129(3) of the Companies Act, 2013.
JCRL has earned a Profit before tax ` 1.77 Crores [P.Y. (Loss) ` 0.03 Crores] for the year ended 31st March 2019.
7.10 Alleged fraudulent payment to the tune of ` 0.80 Crores has been detected against 104 fake bills at Barkasayal area in 2015-16.
The matter is still under investigation and pending before CBI.
7.11 For the purpose of valuation of inventories, power cost has been distributed on the basis of internal departmental certificate to
the units of the area instead of actual consumption basis.
7.12 Consequent upon the agreement made with Coal India Limited and President of India for allocation of coal block Kotre Basantpur
and Panchmo Coal Blocks under Coal Mines (Special Provisions) Act, 2015, and subsequent allocation to CCL for operation
and commercial use of mines, the company (CCL) has deposited 50% of Upfront fees amounting to ` 20.65 Crores and fixed
amount for ` 9.91 Crores as security deposit and furnished a Performance Bank Guarantee (Performance Security) amounting
to ` 286.14 Crores, in designated bank account of Nominated Authority for allotment. ` 30.56 Crores (upfront fees ` 20.65 Crores
and Security deposit ` 9.91 Crores) is appearing under Exploration Evaluation Assets in Note-5. As the conditions of prescribed
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guidelines for making payment of 2nd and 3rd instalment is not yet fulfilled, the balance amount of ` 20.65 Crores is shown
under Capital Commitment.
7.13 The Hon’ble Supreme Court of India, in Transferred Case (CIVIL) No. 43 of 2016 vide order dated 13.10.2017 has held that DMF
will be applicable in the State of Jharkhand on and from the date of establishment of DMF Trust i.e. 07.12.2015. Accordingly, the
amount of ` 286.31 Crore deposited with the State Govt. relating to the period prior to 07.12.2015 shall be refunded/ adjusted from
the DMF payable by the company. Out of the said amount a sum of ` 169.37 Crore has been adjusted and balance amount of
` 116.94 Crore is yet to be refunded/ adjusted from the State Government. As per directive of State Govt., Areas have submitted
their claim to the respective DMO for getting Refund / adjustment.
7.14 Against the demand of Income Tax Department under section 206 C of the Income Tax Act, 1961, for an amount of ` 106.56
Crores, the department has collected ` 71.79 Crores by attaching the bank account of the company and the balance amount
of ` 34.77 Crores has been deposited by the company. The company has recovered ` 75.62 Crores from the customers as on
balance sheet date and the balance ` 30.94 Crores is under process of recovery.
Out of the above ` 30.94 Crores, ` 26.85 Crores relates to the period of 01.04.2012 to 30.06.2012 when there was no TCS on
Coal. As TCS was implemented on coal on and from 01.07.2012 a rectification petition u/s 154 of Income Tax Act, 1961 has
already been filed on 02.02.2018to rectify the error, the hearing of which has not yet started.
7.15 As per the guidelines issued by Ministry of Coal on Mine Closure Plan dated 07/01/2013, the company has submitted claims in
respect of 64 mines to CMPDIL for audit and certification. Out of this, claims of 59 nos. mines have been audited and certified
by CMPDIL whose first phase of five years has been completed and remaining five nos. claims are not audited / certified due to
non-completion of 5 year period. As on Balance sheet date, claims of 59 mines amounting to Rs. 413.17 Crores duly certified
by CMPDIL is shown in Receivable from Escrow Account for Mine Closure Expenses under Note-9.
Further, based on technical assessment by the areas, claim receivables against progressive mine closure expenditure for FY
16-17, FY 17-18 & FY 18-19, amounting to ` 145.09 Cr, has also been ascertained and shown under Note 9 (Non Current)
under the head other deposits. Therefore, the total Mine closure receivables as on 31.03.2019, comes ` 558.26 Cr. Out of this,
receivables up to FY 17-18, amounting to ` 514.15 Cr. has been accounted for through Retained Earnings in compliance with
the clause no. 2.24.1.2 of Significant Accounting Policies.
7.16 In pursuance of Para 4 of Mine Closure Guide lines issued by Ministry of Coal, Government of India, “The money to be levied
per hectare of total project Area is to be deposited every year after commencement of any activity on the land for the mine after
opening Escrow account prior to obtaining mine operating permission from Coal Controller.”
Production of two mines namely Argada OCP, Pindra UGP has not yet been started, though, the mine closure plan was approved
by the board. Hence, the Site restoration Asset, Progressive Depreciation and Mine Closure Provision in respect of the above
two mines created earlier has been withdrawn. Mine wise details are given below :
(` In Crores)
7.17 CCL used to supply Washed Medium Coking Coal (WMCC) to M/S SAIL & RINL at the price mutually agreed in MOU entered
between CCL & SAIL / RINL, duly signed by the representatives of CCL & SAIL/RINL with validity upto 31.03.2017. As per CIL’s
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guidelines, CCL had notified the price of WMCC at ` 11,500 per tonne with effect from 14/01/2017 in compliance with doctrine
of Import Parity as envisaged by New Coal Distribution Policy (NCDP) of Government with bonus/penalty clause variable in line
with ash content.
As the MOU was valid up to 31/03/2017, but the Price Notification was issued on 14/01/2017, a provision for the period from
14/01/2017 to 31/03/2017 for the difference of MOU price and Notified price on the quantity despatched, amounting to ` 155.80
Crores (` 126.16 Crore in respect of SAIL and ` 29.64 Crore in respect of RINL ) has been made in the accounts during the
year 2018-19.
After repetitive requests of M/S SAIL, CCL Board dated 28/07/2018 agreed to supply WMCC at an ad hoc price of Rs. 6,500 per
tonne with a condition that the report of the external agency to be appointed/engaged for establishment of fair and transparent
Price Determination Mechanism shall be applicable and accordingly SAIL/RINL has agreed with the decision of CCL Board.
The proposal for engagement of external agency i.e M/s. PWC being the L1 bidder, has been forwarded to CIL for obtaining the
approval of Coal India Board as the value of the proposal is beyond the financial power of CCL Board. After issuing the work
order and acceptance of the report of the agency by the competent authority of CCL, provision if necessary, will be considered
in the Financial Year 2019-20.
8. Reconciliation of Profit for the Quarter/Year due to restatement of Prior Period Adjustments
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Note : ` 474.42 Cr. Prior period adjustment relates to the period prior to 2017-18. Hence it has been adjusted with retained earnings
in Note -17
Others
i. Previous year’s figures have been restated, regrouped and rearranged wherever considered necessary.
iii. Note – 1 and 2 represents Corporate information and Significant Accounting Policies respectively, Note 3 to 23 form part
of the Balance Sheet as at 31st March, 2019 and 24 to 37 form part of Statement of Profit & Loss for the year ended on
that date. Note – 38 represents Additional Notes to the Financial Statements.
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ADDENDUM TO DIRECTORS’ REPORT
To
The Members
Central Coalfields Limited,
Darbhanga House,
Ranchi.
This audit report supersedes the earlier audit report dated 28th
May, 2019( The original Report), at New Delhi, on the Standalone
IND AS Financial Statements as approved by the Board of
Directors of the Company on even date and is being revised at
the instance of Comptroller & Auditor General (C&AG) of India.
The revised report is being issued in view of amendment made
in para 3(h)(ii) under “Report on other Legal and Regulatory
Requirements’ to the Independent Auditor’s Report , as per
the directions of Comptroller and Auditor General of India vide
Audit Memo No. 03/3rd Phase Accounts Audit 2018-19 dated
07.06.2019. We confirm that the said amendment does not effect
true and fair view and our opinion as expressed earlier.
Opinion
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AUDITORS’ REPORT MANAGEMENT’S REPLY
Emphasis of Matters
a) Contingent liability of Rs.13389.38 crores (Previous It is adequately disclosed under Contingent Liability in the
year- Rs.13389.38 crores), towards penalty for mining Additional Note to the Financial Statements( Refer 4(a) of
of coal in excess of the environmental clearances limit Note-38)
in respect of 41 mines. (Note No 38 refer para 4(a)(1) to
the Standalone Ind AS financial statements)
(b) Certain Balances of Loans, other financial assets, other Balance confirmation letters have been issued to the parties in
current & non-current assets, trade payables, other respect of trade receivables, trade payables and advances. The
financial liabilities and other current liabilities are subject balances with major Sundry Debtors are reconciled at regular
to confirmation, however, letters seeking confirmation intervals and Joint Reconciliation Statement are also signed by
have been issued. Consequent impact on confirmation/ both the parties.
reconciliation/ adjustment of such balances, if any is not
ascertainable.
(c) Washed medium coking Coal (WMCC) was being It is adequately disclosed under Additional Notes to the Financial
supplied by CCL at mutually agreed price under an Statements ( Refer Point No. 7.17 of Note-38)
MOU to M/s SAIL & M/s RINL. However, no MOU has
been signed between CCL & SAIL/RINL for the Financial
Year 2017-18 and onwards. From 1/4/2017, the price
of WMCC has been revised quarterly, using an import
parity-based Pricing Mechanism adopted by CCL as
envisaged under New Coal Distribution Policy (NCDP)
under which the CCL has been raising invoices to SAIL/
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AUDITORS’ REPORT MANAGEMENT’S REPLY
(d) In reference Note No. 38.7.15 read with Significant It is adequately disclosed under Additional Notes to the Financial
Accounting Policy No. 2.24.1.2 of the company, the Statements( Refer 7.15 of Note-38)
Company has accounted for a sum of Rs. 514.15 Cr.
towards Mine closure receivables under Progressive
Mines closure Plan Expenditure up to F.Y. 2017-18
through retained earnings Note No 17 by corresponding
debit to Receivables from Escrow account, shown under
Note 9, Other Financial Assets under the head receivable
from Escrow Account and Other Deposits, as approved
by CMPDIL & technical assessment by the areas.
(e) Pending analysis of grade of Contaminated clean coal of It is adequately disclosed under foot note no. 4 of Annexure to
83795 MT is lying at Kathara Washeries since 1995-96 Note-12.
presently valued at NIL (Annexure to Note No. 12)
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Annexure “A” referred to in paragraph 1 of “Report on Other Legal and Regulatory Requirements” of
Independent Auditor’s Report to the members of the Company
on the Standalone Ind AS financial statements for the year ended March 31, 2019, we report that;
Report on directions under section 143(5) of the companies act, 2013 in respect of
M/s Central Coalfields Limited for the year 2018-19.
The company has a system in place to process All the accounting transactions are processed through Coal Net
accounting transactions through CoalNet system System
that has been customized to integrate the various
functional modules. The areas mostly covered in
the applications are: Finance, Sales & Marketing,
Payroll, Material Management, Personnel and
others. However, full integration is not yet achieved
and as informed the company is in the process of
implementing ERP to ensure seamless movement
of data across different modules with minimum
intervention.
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Report on additional directions under Section 143(5) of the Companies Act, 2013 in respect of
M/s. Central Coalfields Limited for the year 2018-19.
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Annexure –“B”referred to in paragraph 2 of “Report on Other Legal and Regulatory Requirements”
of Independent Auditor’s Report to the members of the Company on the standalone Ind AS financial
statements for the for the year ended March 31, 2019, we report that;
(i) (a) During the course of our audit, it was observed Noted
that the Company has generally maintained proper
records of fixed assets showing full particulars
except in some cases of furniture and fixtures and
office equipment location and identification mark
has not been mentioned. It was also observed that
in respect of furniture and fixtures, light and fittings
have not been linked up with the fixed assets
register.
(b) According to the information as given to us, the Physical verification of fixed assets is done for all the assets for
management has conducted the Physical verification last three years and assets valuing more than 1 lakh beyond
of Fixed Assets, each valuing Rs. 1.00 lakh and three years through Committee constituted at area level as well
above, and of each asset irrespective of the value as HQ level.
in case of additions during the last three years, has
been conducted at reasonable intervals. As informed
to us, no material discrepancies have been noticed
on such verification
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AUDITORS’ REPORT MANAGEMENT’S REPLY
(v) The Company has not accepted any deposits during No Comments
the year as per the provisions of Section 73 to 76 of the
Act. However, balances in respect of amount received in
the course of, or for the purpose of the business of the
Company as Earnest Money Deposits, Security Deposits
and Advance Deposits from Customers / Others, the
Company is of the view that these deposits do not come
under the purview of the Companies (Acceptance of
Deposits) Rules 2014.
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Annexure – “C” referred to in paragraph 3(f) of “Report on Other Legal and Regulatory Requirements”
of Independent Auditor’s Report to the members of the Company on the Standalone Ind AS financial
statements for the year ended March 31, 2019, we report that;
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Subsection 3 of
Section 143 of the Companies Act, 2013 (“the Act”)
Auditors’ Responsibility
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AUDITORS’ REPORT MANAGEMENT’S REPLY
Opinion
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AUDITORS’ REPORT MANAGEMENT’S REPLY
Place:Ranchi.
Dated :11.06.2019
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APPENDIX – 1
DETAILS OF DISPUTED STATUTORY LIABILITIES AS ON 31.03.2019
(` in Crores)
TAX TYPE NO. OF NAME OF COURT PERIOD DISPUTED PAYMENT AMOUNT NOT
CASES AMOUNT UNDER DEPOSITED
PROTEST
ROYALTY CASES 50 Certificate Office - Dhanbad, Ranchi, Bokaro, Hazaribagh 1984-85 to 2016-17 817.77 3.47 814.29
ROYALTY CASES 5 Dy. Commissioner - Hazaribagh, Ramgarh 1995-96 to 2016-17 2.51 1.10 1.40
ROYALTY CASES 32 High Court, Jharkhand 1987-88 to 2017-18 533.89 16.32 517.57
SALES TAX CASES 226 Commercial Tax Officer - Ranchi, Ramgarh, Haz, Tenughat 1989-90 to 2016-17 665.52 109.75 555.78
SALES TAX CASES 169 JCCT(A), Hazaribagh 1989-90 to 2017-18 239.22 45.49 193.73
SALES TAX CASES 18 JCCT(A), Ranchi 1985-86 to 2015-16 2.68 0.21 2.47
SALES TAX CASES 78 Commissioner Commercial Tax, Ranchi 1996-97 to 2015-16 222.79 44.30 178.49
SALES TAX CASES 136 TRIBUNAL, Ranchi 1990-91 to 2014-15 356.95 85.74 271.21
ELECTRICITY DUTY CASES 205 JCCT(A), Hazaribagh 1992-93 to 2017-18 60.35 15.95 44.41
ELECTRICITY DUTY CASES 7 CCT, Ranchi 2006-07 to 2011-12 3.07 0.50 2.57
ELECTRICITY DUTY CASES 25 TRIBUNAL, Ranchi 1993-94 to 2017-18 4.17 0.71 3.46
ELECTRICITY DUTY CASES 11 High Court, Jharkhand 1997-98 to 2015-16 13.22 3.92 9.30
SERVICE TAX & EXCISE CASES 16 Commissioner, Ranchi 2008-09 to 2017-18 33.99 0.99 33.00
SERVICE TAX & EXCISE CASES 8 CESTAT, Kolkata 2005 to 2017-18 71.81 2.48 69.33
SERVICE TAX & EXCISE CASES 4 Others 2012-13 to 2017-18 1.33 - 1.33
INCOME TAX CASES 2 CIT(A), Ranchi 2004-05 & 2017-18 107.21 23 84.21
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4 Non-Current Liabilities
(a) Financial Liabilities 70.61 60.09
(b) Deferred Tax Liabilities (Net) — —
(c) Other Non-current Liabilities 540.84 438.46
(d) Provisions 3,411.37 3,324.05
Sub - total - Non-current Liabilities 4,022.82 3,822.60
5 Current Liabilities
(a) Financial Liabilities 986.90 1,008.08
(b) Current Tax Liabilities (net) 56.18 125.41
(c) Other Current Liabilities 4,500.31 4,777.48
(d) Provisions 1,007.77 1,529.27
B ASSETS
1 Non- current Assets
(a) Fixed Assets 5,426.29 4,508.83
(b) Goodwill on Consolidation — —
(c) Deferred Tax Assets (Net) 1,039.09 1,047.58
(d) Financial Assets 1,468.39 1,534.47
(e) Other Non-current Assets 988.53 1,507.86
Sub-total - Non-current Assets 8,922.30 8,598.74
2 Current Assets
(a) Financial Assets 2,889.02 3,054.68
(b) Inventories 1,353.66 1,349.23
(c) Other Current Assets 2,575.22 2,093.56
(d) Current Tax Assets (net) — —
Sub - Total - Current Assets 6,817.90 6,497.47
7 Profit / (Loss) from ordinary activities after finance 1,301.22 653.47 490.68 2,693.96 1,387.46
costs but before exceptional items (5-6)
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9 Profit / ( Loss ) from ordinary activities before tax (7-8) 1,301.22 653.47 490.68 2,693.96 1,387.46
11 Net Profit / ( Loss ) for the period (9-10) [A] 1,042.90 177.65 318.57 1,705.64 807.75
12 Other Comprehensive Income/(loss)(net of tax) [B] (12.16) (45.34) 55.48 (19.69) 101.74
14 Paid-up equity share capital (Face Value of share ` 940.00 940.00 940.00 940.00 940.00
1000/- each)
15 Earnings per share (EPS) ( Face Value of share ` 1000 /-each) (not annualised)
(a) Basic 1,109.47 188.99 338.90 1,814.06 859.32
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Current Assets
(a) Inventories 12 1,353.66 1,349.23
(v) Loans 8 — —
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Equity
(a) Equity Share Capital 16 940.00 940.00
(b) Other Equity 17 4,203.04 2,875.61
Equity attributable to Equityholders of the Company 5,143.04 3,815.61
Non-Controlling Interests 23.18 17.76
Total Equity (A) 5166.22 3833.37
Liabilities
Non-Current Liabilities
(a) Financial Liabilities
(i) Borrowings 18 — —
(ii) Trade Payables 19 — —
(iii) Other Financial Liabilities 20 70.61 60.09
(b) Provisions 21 3,411.37 3,324.05
(c) Other Non-Current Liabilities 22 540.84 438.46
Total Non-Current Liabilities (B) 4,022.82 3,822.60
Current Liabilities
(a) Financial Liabilities
(i) Borrowings 18 — 150.00
(ii) Trade payables 19
Total outstanding dues of micro and small enterprises — —
Total outstanding dues of Creditors other than micro 484.15 487.01
and small enterprises
(iii) Other Financial Liabilities 20 502.75 371.07
(b) Other Current Liabilities 23 4500.31 4777.48
(c) Provisions 21 1007.77 1529.27
(d) Current Tax Liabilities (net) 56.18 125.41
Total Current Liabilities (C) 6,551.16 7,440.24
Total Equity and Liabilities (A+B+C) 15,740.20 15,096.21
Significant Accounting Policies 2
Additional Notes to the Financial Statements 38
A. Sales (Net of other levies but including Excise Duty) 11,273.99 11,013.30
B. Other Operating Revenue (Net of other levies but including Excise Duty) 905.91 537.41
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Operating Profit before Current/Non Current Assets and Liabilities 3,338.26 2,183.96
Adjustment for :
Trade Receivables (Net of Provision) 25.87 (71.52)
Inventories (4.43) 747.03
Loans and advances and other financial assets 21.46 (1,473.57)
Financial and other Liabilities (836.06) 2,837.51
Cash Generated from Operation 2,545.10 4,223.41
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Net Increase / (Decrease) in Cash & Bank Balances (A+B+C) 82.45 (162.73)
Cash & Cash equivalents as at the beginning of the year 162.34 325.07
Cash & Cash equivalents as at the end of the year 244.79 162.34
(All figures in bracket represent outflow.)
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B. OTHER EQUITY
Equity
Non-
General Retained Attributable
Particulars OCI Controlling Total
Reserve Earnings to Equity
Interest
Shareholders
Balance as at 01.04.2017 2,029.00 215.26 52.39 2,296.65 1.12 2,297.77
Changes in Accounting Policy - - - - - -
Prior Period Errors - 308.64 - 308.64 - 308.64
Restated balance as at 01.04.2017 2,029.00 523.90 52.39 2,605.29 1.12 2,606.41
Additions during the year - - - - - -
Investment during the year - - - - 16.69 16.69
Adjustments during the year - 0.04 - 0.04 (0.04) -
Profit for the Year - 807.76 101.74 909.50 (0.01) 909.49
Appropriations -
Transfer to / from General reserve 39.48 (39.48) - - - -
Transfer to / from Other reserves - - - - -
Interim Dividend - (531.10) - (531.10) - (531.10)
Final Dividend - - - - - -
Corporate Dividend tax - (108.12) - (108.12) - (108.12)
Buyback of Equity Shares - - - - - -
Tax on Buyback - - - - - -
Pre-operative expenses - - - - - -
Reimbursement of Defined Benefit Plan (Net of Tax) - - - - - -
Balance as at 31.03.2018 2,068.48 653.00 154.13 2,875.61 17.76 2,893.37
Balance as at 01.04.2018 2,068.48 653.00 154.13 2,875.61 17.76 2,893.37
Additions during the year - - - - - -
Share application money pending allotment - - - - 5.00 5.00
Adjustments during the year - - - - - -
Changes in accounting policy or prior period errors - - - - - -
Profit for the Year - 1,705.22 (19.69) 1,685.53 0.42 1,685.95
Adjustments during the year - - - - - -
Appropriations -
Transfer to / from General reserve 85.22 (85.22) - - - -
Transfer to / from Other reserves - - - - -
Interim Dividend - (297.04) - (297.04) - (297.04)
Final Dividend - - - - - -
Corporate Dividend tax - (61.06) - (61.06) - (61.06)
Buyback of Equity Shares - - - - - -
Tax on Buyback - - - - - -
Adjustment of Pre-operative expenses - - - - - -
Reimbursement of Defined Benefit Plan (Net of Tax) - - - - - -
Balance as at 31.03.2019 2,153.70 1,914.90 134.44 4,203.04 23.18 4,226.22
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SIGNIFICANT ACCOUNTING POLICIES
Central Coalfields Limited (CCL), a Miniratna company, is a 100% subsidiary of Coal India Limited (A Government of India
Undertaking) having its registered office at Darbhanga House, Ranchi, Jharkhand – 834029.
The Company is mainly engaged in mining and production of Coal and also operates Coal washeries. The major consumers of
the company are power and steel sectors. Consumers from other sectors include cement, fertilisers, brick kilns etc.
CCL has a joint venture agreement with IRCON International Limited & Government of Jharkhand named Jharkhand Central
Railway Limited (JCRL). The basic objective of JCRL is to build, construct, operate and maintain identified Rail Corridor Projects that
are critical for evacuation of coal from mines in the State of Jharkhand which shall be used for both freight and passenger services and
to develop required rail infrastructure including construction of railway lines together with all related facilities etc.
The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified
under the Companies (Indian Accounting Standards) Rules, 2015.
The Consolidated financial statements of the company have been prepared on historical cost basis of measurement, except for
Ø certain financial assets and liabilities measured at fair value (refer accounting policy on financial instruments in para
2.15);
Ø Inventories at Cost or NRV whichever is lower (refer accounting policy in para no. 2.21).
Amounts in these financial statements have, unless otherwise indicated, have been rounded off to ‘rupees in Crore’ upto two
decimal points.
2.2.1 Subsidiaries
Subsidiaries are all entities over which the Company has control. The Company controls an entity when the Company is exposed
to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to
direct the relevant activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company.
They are deconsolidated from the date when control ceases.
The acquisition method of accounting is used to account for business combinations by the Company.
The Company combines the financial statements of the parent and its subsidiaries line by line adding together like items of
assets, liabilities, equity, cash flows, income and expenses. Inter-company transactions, balances and unrealised gains on transactions
between group companies are eliminated. Unrealised losses between group companies are also eliminated unless the transaction
provides evidence of an impairment of the transferred asset. All the companies within CCL Consolidated normally uses accounting
policies as adopted by the CIL Consolidated for like transactions and events in similar circumstances. In case of significant deviations
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of a particular constituent company within CCL Consolidated, appropriate adjustments are made to the financial statement of such
constituent company to ensure conformity with the CIL Consolidated accounting policies.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit
and loss, consolidated statement of changes in equity and balance sheet respectively.
2.2.2 Associates
Associates are all entities over which the Company has significant influence but no control or joint control. This is generally the
case where the Company holds between 20% and 50% of the voting rights.
Investments in associates are accounted for using the equity method of accounting, after initially being recognised at cost,
except when the investment, or a portion thereof, classified as held for sale, in which case it is accounted in accordance with Ind AS 105.
The Company impairs its net investment in the associates on the basis of objective evidence.
Joint arrangements are those arrangements where the Company is having joint control with one or more other parties.
Joint control is the contractually agreed sharing of control of the arrangement which exist only when decisions about the relevant
activities require the unanimous consent of the parties sharing control.
Joint Arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights
and obligations of each investor, rather than the legal structure of the joint arrangement.
Joint operations are those joint arrangements whereby the Company is having rights to the assets and obligations for the liabilities
relating to the arrangements.
Company recognises its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any
jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the financial statements under the
appropriate headings.
Joint ventures are those joint arrangements whereby the Company is having rights to the net assets of the arrangements.
Interests in joint ventures are accounted for using the equity method, after initially being recognised at cost in the consolidated
balance sheet.
Investments in Joint venture are accounted for using the equity method of accounting, after initially being recognized at cost,
except when the investment, or a portion thereof, classified as held for sale, in which case it is accounted in accordance with Ind AS 105.
The Company impairs its net investment in the joint venture on the basis of objective evidence.
Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise
the Company’s share of the post-acquisition profits or losses of the investee in profit and loss, and the Company’s share of other
comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint
ventures are recognised as a reduction in the carrying amount of the investment.
When the Company’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including
any other unsecured long-term receivables, the Company does not recognise further losses, unless it has incurred obligations or made
payments on behalf of the other entity.
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Unrealised gains on transactions between the Company and its associates and joint ventures are eliminated to the extent of the
Company’s interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment
of the asset transferred. Accounting policies of equity accounted investees have been changed where necessary to ensure consistency
with the policies adopted by the Company
The Company treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity
owners of the Company. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and
non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-
controlling interests and any fair value of consideration paid or received is recognised within equity
When the Company ceases to consolidate or equity account for an investment because of a loss of control, joint control or
significant influence, any retained interest in the entity is re-measured to its fair value with the change in carrying amount recognised in
profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as
an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect
of that entity are accounted for as if the Company had directly disposed of the related assets or liabilities. This may mean that amounts
previously recognised in other comprehensive income are reclassified to profit or loss.
If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence is retained, only a
proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss where appropriate.
The Company presents assets and liabilities in the Balance Sheet based on current/ non-current classification. An asset is
treated as current by the Company when :
(a) it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle;
(b) it holds the asset primarily for the purpose of trading;
(c) it expects to realise the asset within twelve months after the reporting period; or
(d) the asset is cash or a cash equivalent (as defined in Ind AS 7) unless the asset is restricted from being exchanged or
used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current.
A liability is treated as current by the Company when:
(a) it expects to settle the liability in its normal operating cycle;
(b) it holds the liability primarily for the purpose of trading;
(c) the liability is due to be settled within twelve months after the reporting period; or
(d) it does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting
period. 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.
All other liabilities are classified as non-current.
Ind AS 115, Revenue from Contracts with Customers supersedes Ind AS 11 Construction Contracts and Ind AS 18 Revenue
recognition, and it applies to all revenue arising from contracts with its customers. Ind AS 115 establishes a five-step model to account
for revenue arising from contracts with customers and requires that revenue be recognized at an amount that reflects the consideration
to which a Company expects to be entitled in exchange for transferring goods or services to a customer. Coal India Limited (‘CIL’ or ‘the
company’) has adopted Ind AS 115 using the retrospective method of adoption.
Ind AS 115 requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when
applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs
of obtaining a contract and the costs directly related to fulfilling a contract.
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2.4.1 Revenue from contracts with customers
Coal India Limited is an Indian state controlled enterprise headquartered in Kolkata, West Bengal, India and the largest coal
producing company in the world. Revenue from contracts with customers is recognized when control of the goods or services are
transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for
those goods or services. The Company has generally concluded that it is the principal in its revenue arrangements because it typically
controls the goods or services before transferring them to the customer.
The principles in Ind AS 115 are applied using the following five steps:
The Company account for a contract with a customer only when all of the following criteria are met:
a) the parties to the contract have approved the contract and are committed to perform their respective obligations;
b) the Company can identify each party’s rights regarding the goods or services to be transferred;
c) the Company can identify the payment terms for the goods or services to be transferred;
d) the contract has commercial substance (i.e. the risk, timing or amount of the Company’s future cash flows is expected
to change as a result of the contract); and
e) it is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods or
services that will be transferred to the customer. The amount of consideration to which the Company will be entitled
may be less than the price stated in the contract if the consideration is variable because the Company may offer the
customer a price concession, discount, rebates, refunds, credits or be entitled to incentives, performance bonuses, or
similar items.
Combination of contracts
The Company combines two or more contracts entered into at or near the same time with the same customer (or related parties
of the customer) and account for the contracts as a single contract if one or more of the following criteria are met:
b) the amount of consideration to be paid in one contract depends on the price or performance of the other contract; or
c) the goods or services promised in the contracts (or some goods or services promised in each of the contracts) are a
single performance obligation.
Contract modification
The Company account for a contract modification as a separate contract if both of the following conditions are present:
a) the scope of the contract increases because of the addition of promised goods or services that are distinct and
b) the price of the contract increases by an amount of consideration that reflects the company’s stand-alone selling prices
of the additional promised goods or services and any appropriate adjustments to that price to reflect the circumstances
of the particular contract.
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Step 3 : Determining the transaction price
The Company consider the terms of the contract and its customary business practices to determine the transaction price. The
transaction price is the amount of consideration to which the company expects to be entitled in exchange for transferring promised
goods or services to a customer, excluding amounts collected on behalf of third parties. The consideration promised in a contract with
a customer may include fixed amounts, variable amounts, or both.
When determining the transaction price, a Company consider the effects of all of the following:
- Variable consideration;
- Constraining estimates of variable consideration;
- The existence of significant financing component;
- Non – cash consideration;
- Consideration payable to a customer.
An amount of consideration can vary because of discounts, rebates, refunds, credits, price concessions, incentives, performance
bonuses, or other similar items. The promised consideration can also vary if the company’s entitlement to the consideration is contingent
on the occurrence or non-occurrence of a future event.
In some contracts, penalties are specified. In such cases, penalties are accounted for as per the substance of the contract.
Where the penalty is inherent in determination of transaction price, it form part of variable consideration.
The Company includes in the transaction price some or all of an amount of estimated variable consideration only to the extent
that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty
associated with the variable consideration is subsequently resolved.
The Company does not adjust the promised amount of consideration for the effects of a significant financing component if
it expects, at contract inception, that the period between when it transfers a promised goods or service to a customer and when the
customer pays for that good or service will be one year or less.
The Company recognizes a refund liability if the Company receives consideration from a customer and expects to refund some or
all of that consideration to the customer. A refund liability is measured at the amount of consideration received (or receivable) for which the
company does not expect to be entitled (i.e. amounts not included in the transaction price). The refund liability (and corresponding change
in the transaction price and, therefore, the contract liability) is updated at the end of each reporting period for changes in circumstances.
After contract inception, the transaction price can change for various reasons, including the resolution of uncertain events or
other changes in circumstances that change the amount of consideration to which the Company expects to be entitled in exchange for
the promised goods or services.
The objective when allocating the transaction price is for the Company to allocate the transaction price to each performance
obligation (or distinct good or service) in an amount that depicts the amount of consideration to which the Company expects to be entitled
in exchange for transferring the promised goods or services to the customer.
To allocate the transaction price to each performance obligation on a relative stand-alone selling price basis, the Company
determines the stand-alone selling price at contract inception of the distinct good or service underlying each performance obligation in
the contract and allocate the transaction price in proportion to those stand-alone selling prices.
The Company recognizes revenue when (or as) the Company satisfies a performance obligation by transferring a promised good
or service to a customer. A good or service is transferred when (or as) the customer obtains control of that good or service.
The Company transfers control of a good or service over time and, therefore, satisfies a performance obligation and recognizes
revenue over time, if one of the following criteria is met:
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a) the customer simultaneously receives and consumes the benefits provided by the company’s performance as the
Company performs;
b) the Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced;
c) the Company’s performance does not create an asset with an alternative use to the Company and the Company has an
enforceable right to payment for performance completed to date.
For each performance obligation satisfied over time, the Company recognizes revenue over time by measuring the progress
towards complete satisfaction of that performance obligation.
The Company applies a single method of measuring progress for each performance obligation satisfied over time and the
Company applies that method consistently to similar performance obligations and in similar circumstances. At the end of each reporting
period, the Company re-measure its progress towards complete satisfaction of a performance obligation satisfied over time.
Company apply output methods to recognize revenue on the basis of direct measurements of the value to the customer of the
goods or services transferred to date relative to the remaining goods or services promised under the contract. Output methods include
methods such as surveys of performance completed to date, appraisals of results achieved, milestones reached, time elapsed and
units produced or units delivered.
As circumstances change over time, the Company update its measure of progress to reflect any changes in the outcome of the
performance obligation. Such changes to the Company’s measure of progress is accounted for as a change in accounting estimate in
accordance with Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors.
The Company recognizes revenue for a performance obligation satisfied over time only if the Company can reasonably measure
its progress towards complete satisfaction of the performance obligation. When (or as) a performance obligation is satisfied, the company
recognize as revenue the amount of the transaction price (which excludes estimates of variable consideration that are constrained) that
is allocated to that performance obligation.
If a performance obligation is not satisfied over time, the Company satisfies the performance obligation at a point in time. To
determine the point in time at which a customer obtains control of a promised good or service and the Company satisfies a performance
obligation, the Company consider indicators of the transfer of control, which include, but are not limited to, the following:
a) the Company has a present right to payment for the good or service;
d) the customer has the significant risks and rewards of ownership of the good or service;
When either party to a contract has performed, the Company present the contract in the balance sheet as a contract asset or a
contract liability, depending on the relationship between the company’s performance and the customer’s payment. The Company present
any unconditional rights to consideration separately as a receivable.
Contract assets:
A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company
performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract
asset is recognized for the earned consideration that is conditional.
Trade receivables:
A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the passage of time
is required before payment of the consideration is due).
Contract liabilities:
A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration
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(or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or
services to the customer, a contract liability is recognized when the payment made or due (whichever is earlier). Contract liabilities are
recognized as revenue when the Company performs under the contract.
2.4.2 Interest
2.4.3 Dividend
Dividend income from investments is recognised when the rights to receive payment is established.
Other claims (including interest on delayed realization from customers) are accounted for, when there is certainty of realisation
and can be measured reliably.
When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the
transaction is recognised with reference to the stage of completion of the transaction at the end of the reporting period. The outcome of
a transaction can be estimated reliably when all the following conditions are satisfied:
Government Grants are not recognised until there is reasonable assurance that the company will comply with the conditions
attached to them and that there is reasonable certainty that grants will be received.
Government grants are recognised in Statement of Profit & Loss on a systematic basis over the periods in which the company
recognises as expenses the related costs for which the grants are intended to compensate.
Government Grants related to assets are presented in the balance sheet by setting up the grant as deferred income and are
recognised in Statement of Profit and Loss on systematic basis over the useful life of asset.
Grants related to income (i.e. grant related to other than assets) are presented as part of statement of profit and loss under the
head ‘Other Income’.
A government grant/assistance that becomes receivable as compensation for expenses or losses already incurred or for the
purpose of giving immediate financial support to the Company with no future related costs, is recognised in profit or loss of the period
in which it becomes receivable.
The Government grants or grants in the nature of promoter’s contribution should be recognised directly in “Capital Reserve”
which forms part of the “Shareholders fund”.
2.6 LEASES
A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or
may not eventually be transferred.
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2.6.1 Company as a lessee
A lease is classified at the inception date as a finance lease or an operating lease.
2.6.1.1 Finance leases are capitalised at the commencement of the lease at the inception date fair value of the leased property or, if
lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and
reduction of the lease liability so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Finance charges are recognised in finance costs in the statement of profit and loss, unless they are directly attributable to
qualifying assets, in which case they are capitalized in accordance with the Company’s general policy on the borrowing costs.
A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company
will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and
the lease term.
2.6.1.2 Operating lease- Lease payments under an operating lease is recognised as an expense on a straight-line basis over the lease
term unless either:
(a) another systematic basis is more representative of the time pattern of the user’s benefit even if the payments to the
lessors are not on that basis; or
(b) the payments to the lessor are structured to increase in line with expected general inflation to compensate for the lessor’s
expected inflationary cost increases. If payments to the lessor vary because of factors other than general inflation, then
this condition is not met.
2.6.2 Company as a lessor
Operating leases- Lease income from operating leases (excluding amounts for services such as insurance and maintenance)
is recognised in income on a straight-line basis over the lease term, unless either:
(a) another systematic basis is more representative of the time pattern in which use benefit derived from the leased asset
is diminished, even if the payments to the lessors are not on that basis; or
(b) the payments to the lessor are structured to increase in line with expected general inflation to compensate for the lessor’s
expected inflationary cost increases. If payments to the lessor vary according to factors other than inflation, then this
condition is not met.
Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset
and recognised as an expense over the initial lease term on the same basis as lease income.
Finance leases - Amounts due from lessees under finance leases are recorded as receivables at the Company’s net investment
in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net
investment outstanding in respect of the lease.
2.7 Non-current assets held for sale
The Company classifies non-current assets and (or disposal groups) as held for sale if their carrying amounts will be recovered
principally through a sale rather than through continuing use. Actions required to complete the sale should indicate that it is unlikely that
significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the sale
expected within one year from the date of classification.
For these purposes, sale transactions include exchanges of non-current assets for other non-current assets when the exchange
has commercial substance. The criteria for held for sale classification is regarded met only when the assets or disposal group is available
for immediate sale in its present condition, subject only to terms that are usual and customary for sales of such assets (or disposal
groups), its sale is highly probable; and it will genuinely be sold, not abandoned. The Company treats sale of the asset or disposal group
to be highly probable when:
Ø The appropriate level of management is committed to a plan to sell the asset (or disposal group),
Ø An active programme to locate a buyer and complete the plan has been initiated
Ø The asset (or disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair
value,
Ø The sale is expected to qualify for recognition as a completed sale within one year from the date of classification, and
Ø Actions required to complete the plan indicate that it is unlikely those significant changes to the plan will be made or that
the plan will be withdrawn.
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2.8 Property, Plant and Equipment (PPE)
Land is carried at historical cost. Historical cost includes expenditure which are directly attributable to the acquisition of the land
like, rehabilitation expenses, resettlement cost and compensation in lieu of employment incurred for concerned displaced persons etc.
After recognition, an item of all other Property, plant and equipment are carried at its cost less any accumulated depreciation and
any accumulated impairment losses under Cost Model. The cost of an item of property, plant and equipment comprises:
(a) its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and
rebates.
(b) any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating
in the manner intended by management.
(c) the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the
obligation for which the Company incurs either when the item is acquired or as a consequence of having used the item
during a particular period for purposes other than to produce inventories during that period.
Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item
depreciated separately. However, significant part(s) of an item of PPE having same useful life and depreciation method are grouped
together in determining the depreciation charge.
Costs of the day to-day servicing described as for the ‘repairs and maintenance’ are recognised in the statement of profit and
loss in the period in which the same are incurred.
Subsequent cost of replacing parts significant in relation to the total cost of an item of property, plant and equipment are recognised
in the carrying amount of the item, if it is probable that future economic benefits associated with the item will flow to the Company; and
the cost of the item can be measured reliably. The carrying amount of those parts that are replaced is derecognised in accordance with
the de-recognition policy mentioned below.
When major inspection is performed, its cost is recognised in the carrying amount of the item of property, plant and equipment
as a replacement if it is probable that future economic benefits associated with the item will flow to the Company; and the cost of the
item can be measured reliably. Any remaining carrying amount of the cost of the previous inspection (as distinct from physical parts) is
derecognised.
An item of Property, plant or equipment is derecognised upon disposal or when no future economic benefits are expected from
the continued use of assets. Any gain or loss arising on such de-recognition of an item of property plant and equipment is recognised
in profit and Loss.
Depreciation on property, plant and equipment, except freehold land, is provided as per cost model on straight line basis over
the estimated useful lives of the asset as follows:
Other Land (incl. Leasehold Land) : Life of the project or lease term whichever is lower
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Based on technical evaluation, the management believes that the useful lives given above best represents the period over which
the management expects to use the asset. Hence the useful lives of the assets may be different from useful lives as prescribed under
Part C of schedule II of companies act, 2013.
The estimated useful life of the assets is reviewed at the end of each financial year.
The residual value of Property, Plant and Equipment is considered as 5% of the original cost of the asset except some items of
assets such as, Coal tub, winding ropes, haulage ropes, stowing pipes & safety lamps etc. for which the technically estimated useful life
has been determined to be one year with nil residual value.
Depreciation on the assets added / disposed of during the year is provided on pro-rata basis with reference to the month of
addition / disposal.
Value of “Other Land” includes land acquired under Coal Bearing Area (Acquisition & Development) (CBA) Act, 1957, Land
Acquisition Act, 1894, Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (RFCTLAAR)
Act, 2013, Long term transfer of government land etc., which is amortised on the basis of the balance life of the project; and in case of
Leasehold land such amortisation is based on lease period or balance life of the project whichever is lower.
Fully depreciated assets, retired from active use are disclosed separately as surveyed off assets at its residual value under
Property, Plant and Equipment and are tested for impairment.
Capital Expenses incurred by the company on construction/development of certain assets which are essential for production,
supply of goods or for the access to any existing Assets of the company are recognised as Enabling Assets under Property, Plant and
Equipment.
Transition to Ind AS
The company elected to continue with the carrying value as per cost model (for all of its property, plant and equipment as
recognised in the financial statements as at the date of transition to Ind ASs, measured as per the previous GAAP.
The company’s obligation for land reclamation and decommissioning of structures consists of spending at both surface and
underground mines in accordance with the guidelines from Ministry of Coal, Government of India. The company estimates its obligation
for Mine Closure, Site Restoration and Decommissioning based upon detailed calculation and technical assessment of the amount and
timing of the future cash spending to perform the required work. Mine Closure expenditure is provided as per approved Mine Closure Plan.
The estimates of expenses are escalated for inflation, and then discounted at a discount rate that reflects current market assessment of
the time value of money and the risks, such that the amount of provision reflects the present value of the expenditures expected to be
required to settle the obligation. The company records a corresponding asset associated with the liability for final reclamation and mine
closure. The obligation and corresponding assets are recognised in the period in which the liability is incurred. The asset representing
the total site restoration cost (as estimated by Central Mine Planning and Design Institute Limited) as per mine closure plan is recognised
as a separate item in PPE and amortised over the balance project/mine life.
The value of the provision is progressively increased over time as the effect of discounting unwinds; creating an expense
recognised as financial expenses.
Further, a specific escrow fund account is maintained for this purpose as per the approved mine closure plan.
The progressive mine closure expenses incurred on year to year basis forming part of the total mine closure obligation is initially
recognised as receivable from escrow account and thereafter adjusted with the obligation in the year in which the amount is withdrawn
after the concurrence of the certifying agency.
Exploration and evaluation assets comprise capitalised costs which are attributable to the search for coal and related resources, pending the determination
of technical feasibility and the assessment of commercial viability of an identified resource which comprises inter alia the following:
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Ø acquisition of rights to explore
Ø gathering exploration data through topographical, geo chemical and geo physical studies;
The above includes employee remuneration, cost of materials and fuel used, payments to contractors etc.
As the intangible component represents an insignificant/indistinguishable portion of the overall expected tangible costs to be
incurred and recouped from future exploitation, these costs along with other capitalised exploration costs are recorded as exploration
and evaluation asset.
Exploration and evaluation costs are capitalised on a project by project basis pending determination of technical feasibility and
commercial viability of the project and disclosed as a separate line item under non-current assets. They are subsequently measured at
cost less accumulated impairment/provision.
Once proved reserves are determined and development of mines/project is sanctioned, exploration and evaluation assets
are transferred to “Development” under capital work in progress. However, if proved reserves are not determined, the exploration and
evaluation asset is derecognised.
When proved reserves are determined and development of mines/project is sanctioned, capitalised exploration and evaluation
cost is recognised as assets under construction and disclosed as a component of capital work in progress under the head “Development”.
All subsequent development expenditure is also capitalised. The development expenditure capitalised is net of proceeds from the sale
of coal extracted during the development phase.
Commercial Operation
The project/mines are brought to revenue; when commercial readiness of a project/mine to yield production on a sustainable
basis is established either on the basis of conditions specifically stated in the project report or on the basis of the following criteria:
(a) From beginning of the financial year immediately after the year in which the project achieves physical output of 25% of
rated capacity as per approved project report, or
(c) From the beginning of the financial year in which the value of production is more than total, expenses.
On being brought to revenue, the assets under capital work in progress are reclassified as a component of property, plant and
equipment under the nomenclature “Other Mining Infrastructure”. Other Mining Infrastructure are amortised from the year when the mine
is brought under revenue in 20 years or working life of the project whichever is less.
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a
business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less
any accumulated amortisation (calculated on a straight-line basis over their useful lives) and accumulated impairment losses, if any.
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Internally generated intangibles, excluding capitalised development costs, are not capitalised. Instead, the related expenditure
is recognised in the statement of profit and loss and other comprehensive income in the period in which the expenditure is incurred.
The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortised over their
useful economic lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The
amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each
reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the
asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates.
The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss.
An intangible asset with an indefinite useful life is not amortised but is tested for impairment at each reporting date.
Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss.
Exploration and Evaluation assets attributable to blocks identified for sale or proposed to be sold to outside agencies (i.e. for
blocks not earmarked for CIL) are however, classified as Intangible Assets and tested for impairment.
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.
The Company assesses at the end of each reporting period whether there is any indication that an asset may be impaired. If
any such indication exists, the Company estimates the recoverable amount of the asset. An asset’s recoverable amount is the higher
of the asset’s or cash-generating unit’s value in use and its fair value less costs of disposal, and is determined for an individual asset,
unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which
case the recoverable amount is determined for the cash-generating unit to which the asset belongs.Company considers individual mines
as separate cash generating units for the purpose of test of impairment.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced
to its recoverable amount and the impairment loss is recognised in the Statement of Profit and Loss.
Property (land or a building or part of a building or both) held to earn rentals or for capital appreciation or both, rather than for,
use in the production or supply of goods or services or for administrative purposes; or sale in the ordinary course of businesses are
classified as investment property.
Investment property is measured initially at its cost, including related transaction costs and where applicable borrowing costs.
Investment properties are depreciated using the straight-line method over their estimated useful lives.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument
of another entity.
All financial assets are recognised initially at fair value, in the case of financial assets not recorded at fair value through profit or
loss, plus transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require
delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised
on the trade date, i.e., the date that the Company commits to purchase or sell the asset.
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2.15.2 Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
l Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)
l Equity instruments measured at fair value through other comprehensive income (FVTOCI)
A ‘debt instrument’ is measured at the amortised cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest
(SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate
(EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from impairment are
recognised in the profit or loss.
A ‘debt instrument’ is classified as at the FVTOCI if both of the following criteria are met:
a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets,
and
Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value.
Fair value movements are recognized in the other comprehensive income (OCI). However, the Company recognizes interest income,
impairment losses & reversals and foreign exchange gain or loss in the P&L. On de-recognition of the asset, cumulative gain or loss
previously recognised in OCI is reclassified from the equity to P&L. Interest earned whilst holding FVTOCI debt instrument is reported
as interest income using the EIR method.
FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as
at amortized cost or as FVTOCI, is classified as at FVTPL.
In addition, the Company may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria,
as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency
(referred to as ‘accounting mismatch’). The Company has not designated any debt instrument as at FVTPL.
Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the P&L.
In accordance of Ind AS 101 (First time adoption of Ind AS), the carrying amount of these investments as per previous GAAP as
on the date of transition is considered to be the deemed cost. Subsequently Investment in subsidiaries, associates and joint ventures
are measured at cost.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
In case of consolidated financial statement, Equity investments in associates and joint ventures are accounted as per equity
method as prescribed in para 10 of Ind AS 28.
For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive income
subsequent changes in the fair value. The Company makes such election on an instrument by instrument basis. The classification is
made on initial recognition and is irrevocable.
If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding
dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L even on sale of investment. However, the
Company may transfer the cumulative gain or loss within equity.
Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the P&L.
2.15.2.6 De-recognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognised (i.e. removed from the balance sheet) when:
● The rights to receive cash flows from the asset have expired, or
● The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the
Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred
nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement,
it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained
substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the
transferred asset to the extent of the Company’s continuing involvement. In that case, the Company also recognises an associated liability.
The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has
retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original
carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.
a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits,
trade receivables and bank balance
b) Financial assets that are debt instruments and are measured as at FVTOCI
d) Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that
are within the scope of Ind AS 11 and Ind AS 18
The Company follows ‘simplified approach’ for recognition of impairment loss allowance on:
● All lease receivables resulting from transactions within the scope of Ind AS 17
The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
2.15.3 Financial liabilities
The Company’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs.
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated
upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for
the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company
that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109. Separated embedded derivatives are
also classified as held for trading unless they are designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognised in the profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date
of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable
to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to P&L. However, the Company
may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of
profit and loss. The Company has not designated any financial liability as at fair value through profit and loss.
After initial recognition, these are subsequently measured at amortised cost using the effective interest rate method. Gains and
losses are recognised in profit or loss when the liabilities are derecognised as well as through the effective interest rate amortisation
process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the effective interest rate. The effective interest rate amortisation is included as finance costs in the statement of profit and loss.
This category generally applies to borrowings.
2.15.3.5 De-recognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a
new liability. The difference between the carrying amount of a financial liability (or part of a financial liability) extinguished or transferred
to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, shall be recognised in
profit or loss.
The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no
reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt
instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business
model are expected to be infrequent. The Company’s senior management determines change in the business model as a result of
external or internal changes which are significant to the Company’s operations. Such changes are evident to external parties. A change
in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If
Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of
the immediately next reporting period following the change in business model. The Company does not restate any previously recognised
gains, losses (including impairment gains or losses) or interest.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
The following table shows various re-classifications and how they are accounted for
Financial assets and financial liabilities are offset and the net amount is reported in the consolidated balance sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets
and settle the liabilities simultaneously.
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original
maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the consolidated
statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part of the company’s cash management.
Borrowing costs are expensed as and when incurred except where they are directly attributable to the acquisition, construction or production of qualifying
assets i.e. the assets that necessarily takes substantial period of time to get ready for its intended use, in which case they are capitalised as part of the
cost of those asset up to the date when the qualifying asset is ready for its intended use.
2.17 Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax is the amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for a period. Taxable
profit differs from “profit before income tax” as reported in the statement of profit and loss and other comprehensive income because it
excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable
or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by
the end of the reporting period.
Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised
for all deductible temporary difference to the extent that it is probable that taxable profits will be available against which those deductible
temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or
from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the
taxable profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates,
except where the company is able to control the reversal of the temporary difference and it is probable that the temporary difference will
not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments
and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the
benefits of the temporary differences.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is
no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Unrecognised deferred
tax assets are reassessed at the end of each reporting year and are recognised to the extent that it has become probable that sufficient
taxable profit will be available to allow all or part of the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability
is settled or the asset is realised, based on tax rate (and tax laws) that have been enacted or substantively enacted by the end of the
reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which
the company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive
income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination,
the tax effect is included in the accounting for the business combination.
All short term employee benefits are recognized in the period in which they are incurred.
A defined contribution plan is a post-employment benefit plan for Provident fund and Pension under which the company pays
fixed contribution into fund maintained by a separate statutory body (Coal Mines Provident Fund) constituted under an enactment
of law and the company will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined
contribution plans are recognised as an employee benefit expense in the statement of profit and loss in the periods during which services
are rendered by employees.
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. Gratuity, leave encashment
are defined benefit plans (with ceilings on benefits). The company’s net obligation in respect of defined benefit plans is calculated
by estimating the amount of future benefit that employees have earned in return of their service in the current and prior periods. The
benefit is discounted to determine its present value and reduced by the fair value of plan assets, if any. The discount rate is based on
the prevailing market yields of Indian Government securities as at the reporting date that have maturity dates approximating the terms
of the company’s obligations and that are denominated in the same currency in which the benefits are expected to be paid.
The application of actuarial valuation involves making assumptions about discount rate, expected rates of return on assets,
future salary increases, mortality rates etc. Due to the long term nature of these plans, such estimates are subject to uncertainties.
The calculation is performed at each balance sheet by an actuary using the projected unit credit method. When the calculation results
in to the benefit to the company, the recognised asset is limited to the present value of the economic benefits available in the form of
any future refunds from the plan or reduction in future contributions to the plan. An economic benefit is available to the company if it is
realisable during the life of the plan, or on settlement of plan liabilities.
Re-measurement of the net defined benefit liability, which comprise actuarial gain and losses considering the return on plan assets
(excluding interest) and the effects of the assets ceiling (if any, excluding interest) are recognised immediately in the other comprehensive
income. The company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying
the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then net defined benefit
liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions
and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in profit and loss.
When the benefits of the plan are improved, the portion of the increased benefit relating to past service by employees is recognised
as expense immediately in the statement of profit and loss.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
2.18.3 Other Employee Benefits
Certain other employee benefits namely benefit on account of LTA, LTC, Life Cover scheme, Group personal Accident insurance
scheme, settlement allowance, post-retirement medical benefit scheme and compensation to dependents of deceased in mine accidents
etc., are also recognised on the same basis as described above for defined benefits plan. These benefits do not have specific funding.
%
Less than 1 Mill. CUM +/- 5%
Between 1 and 5 Mill. CUM +/- 3%
More than 5 Mill. CUM +/- 2%
However, where the variance is beyond the permissible limits as above, the measured quantity is considered.
In case of mines with rated capacity of less than one million tonne, the above policy is not applied and actual cost of stripping
activity incurred during the year is recognised in Statement of Profit and Loss.
2.21 Inventories
Inventories of coal/coke are stated at lower of cost and net realisable value. Cost of inventories are calculated using the First
in First out method.Net realisable value represents the estimated selling price of inventories less all estimated costs of completion and
costs necessary to make the sale.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Book stock of coal 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. Coke is considered as a part of stock of coal.
Coal & coke-fines are valued at lower of cost or net realisable value and considered as a part of stock of coal.
Slurry (coking/semi-coking), middling of washeries and by products are valued at net realisable value and considered as a part
of stock of coal.
The Stock of stores & spare parts (which also includes loose tools) at central & area stores are considered as per balances
appearing in priced stores ledger and are valued at cost calculated on the basis of weighted average method. The inventory of stores
& spare parts lying at collieries / sub-stores / drilling camps/ consuming centres are considered at the yearend only as per physically
verified stores and are valued at cost.
Provisions are made at the rate of 100% for unserviceable, damaged and obsolete stores and spares and at the rate of 50%
for stores & spares not moved for 5 years.
Workshop jobs including work-in-progress are valued at cost. Stock of press jobs (including work in progress) and stationary at
printing press and medicines at central hospital are valued at cost.
However, Stock of stationery (other than lying at printing press), bricks, sand, medicine (except at Central Hospitals), aircraft
spares and scraps are not considered in inventory considering their value not being significant.
Provisions are recognized when the company has a present obligation (legal or constructive) as a result of a past event, and
it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate of the amount of the
obligation can be made. Where the time value of money is material, provisions are stated at the present value of the expenditure
expected to settle the obligation.
All provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.
Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the
obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations,
whose existence will only be confirmed by the occurrence or non-occurrence of one or more future uncertain events not wholly within
the control of the company, are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote.
Contingent Assets are not recognised in the financial statements. However, when the realisation of income is virtually certain,
then the related asset is not a contingent asset and its recognition is appropriate.
Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares
outstanding during the period. Diluted earnings per shares is computed by dividing the profit after tax by the weighted average number
of equity shares considered for deriving basic earnings per shares and also the weighted average number of equity shares that could
have been issued upon conversion of all dilutive potential equity shares.
The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgements
and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of
contingent assets and liabilities at the date of financial statements and the amount of revenue and expenses during the reported period.
Application of accounting policies involving complex and subjective judgements and the use of assumptions in these financial statements
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
has been disclosed. Accounting estimates could change from period to period. Actual results could differ from those estimates. Estimates
and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimate are recognised in the period in which
the estimates are revised and, if material, their effects are disclosed in the notes to the financial statements.
2.24.1 Judgements
In the process of applying the Company’s accounting policies, management has made the following judgements, which have
the most significant effect on the amounts recognised in the financial statements:
Accounting policies are formulated in a manner that result in financial statements containing relevant and reliable information
about the transactions, other events and conditions to which they apply. Those policies need not be applied when the effect of applying
them is immaterial.
In the absence of an Ind AS that specifically applies to a transaction, other event or condition, management has used its judgement
in developing and applying an accounting policy that results in information that is:
The financial statements are prepared on going concern basis using accrual basis of accounting.
2.24.1.2 Materiality
Ind AS applies to items which are material. Management uses judgement in deciding whether individual items or groups of
item are material in the financial statements. Materiality is judged by reference to the size and nature of the item. The deciding factor is
whether omission or misstatement could individually or collectively influence the economic decisions that users make on the basis of
the financial statements. Management also uses judgement of materiality for determining the compliance requirement of the Ind AS. In
particular circumstances either the nature or the amount of an item or aggregate of items could be the determining factor. Further the
Company may also be required to present separately immaterial items when required by law.
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Errors/omissions discovered in the current year relating to prior periods are treated as immaterial and adjusted during the current
year, if all such errors and omissions in aggregate does not exceed 0.50% of total revenue from Operations (net of statutory levies) as
per last audited financial statement of CIL Consolidated.
Company has entered into lease agreements. The Company has determined, based on an evaluation of the terms and conditions
of the arrangements, such as the lease term not constituting a major part of the economic life of the commercial property and the fair
value of the asset, that it retains all the significant risks and rewards of ownership of these properties and accounts for the contracts as
operating leases.
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are
described below. The Company based its assumptions and estimates on parameters available when the consolidated financial statements
were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or
circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
There is an indication of impairment if, the carrying value of an asset or cash generating unit exceeds its recoverable amount,
which is the higher of its fair value less costs of disposal and its value in use. Company considers individual mines as separate cash
generating units for the purpose of test of impairment. The value in use calculation is based on a DCF model. The cash flows are
derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or
significant future investments that will enhance the asset’s performance of the CGU being tested. The recoverable amount is sensitive
to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation
purposes. These estimates are most relevant to other mining infrastructures. The key assumptions used to determine the recoverable
amount for the different CGUs, are disclosed and further explained in respective notes.
2.24.2.2 Taxes
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available
against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets
that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.
The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity
obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from
actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates.
Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are reviewed at each reporting date. The parameter most subject to change is the discount rate.
In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government
bonds in currencies consistent with the currencies of the post-employment benefit obligation.
The mortality rate is based on publicly available mortality tables of the country. Those mortality tables tend to change only at
interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rate.
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted
prices in active markets, their fair value is measured using generally accepted valuation techniques including the DCF model. The inputs
to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in
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CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk, volatility and other relevant input
/considerations. Changes in assumptions and estimates about these factors could affect the reported fair value of financial instruments.
The Company capitalises intangible asset under development for a project in accordance with the accounting policy. Initial
capitalisation of costs is based on management’s judgement that technological and economic feasibility is confirmed, usually when a
project report is formulated and approved.
2.24.2.6 Provision for Mine Closure, Site Restoration and Decommissioning Obligation
In determining the fair value of the provision for Mine Closure, Site Restoration and Decommissioning Obligation, assumptions
and estimates are made in relation to discount rates, the expected cost of site restoration and dismantling and the expected timing of
those costs. The Company estimates provision using the DCF method considering life of the project/mine based on
Ø Estimated cost per hectare as specified in guidelines issued by Ministry of Coal, Government of India
Ø The discount rate (pre tax rate) that reflect current market assessments of the time value of money and the risks specific
to the liability.
c. FVTOCI Fair value through Other Comprehensive Income i. PPE Property, Plant and Equipment
d. FVTPL Fair value through Profit & Loss j. SPPI Solely Payment of Principal and Interest
264
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE 3 : PROPERTY, PLANT AND EQUIPMENTS
(` in Crores)
Building
Land Recla- (including Other
Tele- Furniture Office
Freehold mation/ Site water Plant and Railway Mining Surveyed
Particulars Other Land commu- and Equip- Vehicles Aircraft Others Total
Land Restoration supply, Equipments Sidings Infrastruc- off Assets
nication Fixtures ments
Costs roads and tures
culverts)
Carrying Amount:
As at 1st April, 2017 17.49 670.49 475.60 189.15 1,461.51 1.79 34.73 9.67 32.45 12.24 - 198.26 82.57 - 3,185.95
Additions - 64.39 - 61.23 206.64 0.07 - 2.07 10.83 0.06 - 13.05 3.72 - 362.06
Deletions/Adjustments - - - - (10.17) - - - (0.06) (0.01) - (0.29) (5.78) - (16.31)
CENTRAL COALFIELDS LIMITED
As at 31st March, 2018 17.49 734.88 475.60 250.38 1,657.98 1.86 34.73 11.74 43.22 12.29 - 211.02 80.51 - 3,531.70
As at 1st April, 2018 17.49 734.88 475.60 250.38 1,657.98 1.86 34.73 11.74 43.22 12.29 - 211.02 80.51 - 3,531.70
Additions - 26.57 - 46.24 144.78 1.75 234.05 3.34 13.68 0.12 - 55.86 6.70 - 533.09
Deletions/Adjustments - - (2.97) (0.87) (24.37) - (43.54) - (7.26) (0.01) - (3.43) (21.99) - (104.44)
265
As at 31st March, 2019 17.49 761.45 472.63 295.75 1,778.39 3.61 225.24 15.08 49.64 12.40 - 263.45 65.22 - 3,960.35
Accumulated Depreciation and Impairment
As at 1st April, 2017 - 69.63 95.07 17.38 466.24 0.37 6.86 4.24 12.16 2.49 - 42.32 46.39 - 763.15
Charge for the year - 54.98 36.13 10.68 213.76 0.14 3.94 1.44 7.83 1.53 - 17.94 - - 348.37
Impairment - - - - - - - - - - - 5.83 (1.65) - 4.18
Deletions/Adjustments - 0.78 - (0.07) (6.30) - - (0.01) 0.06 - - 0.48 (0.03) - (5.09)
As at 31st March, 2018 - 125.39 131.20 27.99 673.70 0.51 10.80 5.67 20.05 4.02 - 66.57 44.71 - 1,110.61
As at 1st April, 2018 - 125.39 131.20 27.99 673.70 0.51 10.80 5.67 20.05 4.02 - 66.57 44.71 - 1,110.61
Charge for the year - 56.73 34.76 13.93 202.02 0.36 9.55 1.76 8.10 1.38 - 29.08 - - 357.67
Impairment - - - - - - - - - - - 5.75 (19.75) - (14.00)
Deletions/Adjustments - 0.78 2.47 0.82 (8.68) 0.11 11.56 (1.09) (4.21) - - 8.53 (0.31) - 9.98
As at 31st March, 2019 - 182.90 168.43 42.74 867.04 0.98 31.91 6.34 23.94 5.40 - 109.93 24.65 - 1,464.26
Net Carrying Amount
As at 31st March, 2019 17.49 578.55 304.20 253.01 911.35 2.63 193.33 8.74 25.70 7.00 - 153.52 40.57 - 2,496.09
As at 31st March, 2018 17.49 609.49 344.40 222.39 984.28 1.35 23.93 6.07 23.17 8.27 - 144.45 35.80 - 2,421.09
ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE 3 : PROPERTY, PLANT AND EQUIPMENTS (Contd.)
1. In pursuance of compliance of IND AS, Gross value less accumulated depreciation as on 01.04.2015 was considered as carrying value on transition date.
(` in Crores
Building
Land
(including Other
Reclama- Plant and Furniture Office
Freehold water Telecom- Railway Mining Surveyed
Particulars Other Land tion/ Site Equip- and Equip- Vehicles Aircraft Others Total
Land supply, munication Sidings Infrastruc- off Assets
Restora- ments Fixtures ments
roads and tures
tion Costs
culverts)
As at 1st April, 2015 16.87 630.42 656.05 437.66 3,335.00 16.90 88.08 20.77 50.16 32.79 - 759.19 71.73 - 6,115.62
As at 1st April, 2015 - 372.29 176.30 270.57 2,239.44 15.24 73.22 15.18 36.96 26.36 - 652.32 - - 3,877.88
266
Net carrying Amount 16.87 258.13 479.75 167.09 1,095.56 1.66 14.86 5.59 13.20 6.43 - 106.87 71.73 - 2,237.74
Note :
2. Other Land includes Land acquired under Coal Bearing Areas (Acquisition and Development) Act, 1957 , Land Acquisition Act, 1984 and other Acts.
3. Depreciation is provided based on estimated useful life, reviewed at the end of each year by the empowerd committee as referred in Significant Accounting Policy para no. 2.8. There is no significant component having
different useful life of value, hence component accounting has not been considered.
4. During the current year, impairment has been withdrawn in respect of Surveyed off Assets amounting to ` 19.75 Crs. (P.Y. ` 1.65 Crs.).
5. In terms of lease agreements, the company has granted to its customers, a right to occupy and use of certain assets of the company having gross value of ` 88.09 Crs. and wdv of ` 2.50 Crs.
6. Total Depreciation amounting to ` 357.67 Crs. includes amortisation of ` 29.08 Crs. related to other Mining Infrastructures.
ANNUAL REPORT 2018-19
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE 4 : CAPITAL WIP
(` in Crores)
Building (including Plant and Railway Sidings Development Others Total
Particulars water supply, roads Equipments
and culverts)
Carrying Amount:
As at 1st April, 2017 103.60 64.08 1,023.42 139.24 - 1,330.34
Additions 96.41 13.56 476.31 38.99 - 625.27
Capitalisation/ Deletions (57.97) (29.59) - (12.00) - (99.56)
As at 31st March, 2018 142.04 48.05 1,499.73 166.23 - 1,856.05
1. In pursuance of compliance of IND AS, Gross value less accumulated depreciation as on 01.04.2015 was considered as carrying value on transition date.
Note :
2. In case of machinery/assets, which could not be put to use for more than three years from the date of purchase/ acquisition, provision equivalent to depreciation w.e.f.
the fourth year has been made during the year amounting to `4.32 Crs. (previous year `8.18 Crs.) shown under note 33 of the financial statements.
3. CIL Board in its 350th Board meeting approved the revised project cost of `2399.07 Crs. in respect of Tori Shivpur Rail line project for facilitating evacuation of
coal against which `2431.13 Crs. has been deposited with East Central Railway. EC Railway has spent `1855.64 Crs. which has been recoginised as enabling
Asset under the head “ Railway Siding “ in CWIP and the balance amount of `575.49 Crs. has been shown as Capital Advance in Note 10. The Company has
received a grant of `536.55 Crs. till date from CCDAC against the said project.
267
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE 5 : EXPLORATION AND EVALUATION ASSETS
(` in Crores)
In pursuance of compliance of IND AS, Gross value less accumulated depreciation as on 01.04.2015 was considered as carrying
value on transition date.
268
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE 6 : OTHER INTANGIBLE ASSETS
(` in Crores)
1. Coal blocks meant for sale represents expenses incurred towards initial development on mines to be recovered on disposal of such blocks by the
authority.
2. In pursuance of compliance of IND AS, Gross value less accumulated depreciation as on 01.04.2015 was considered as carrying value
on transition date.
Gross Carrying Amount:
As at 1st April, 2015 4.74 1.71 - 6.45
Accumulated Provision and Impairment
As at 1st April, 2015 - -
Net Carrrying Amount 4.74 1.71 - 6.45
269
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE - 7 : INVESTMENTS
(` in Crores)
No. of Shares As at As at
Held 31.03.2019 31.03.2018
———————— ——————— ————————
Non Current
Investment in Shares
Equity Shares in Subsidiary Company — — —
Other Investments
Share Application Money — — —
In Secured Bonds — — —
In Co-operative Shares — — —
—————— —————— ——————
Total — — —
—————— —————— ——————
Aggregate amount of quoted investments: — — —
Market value of quoted investments: — — —
Aggregate amount of unquoted investments: — — —
Aggregate amount of impairment in value of investments: — — —
(` in Crores)
Number of units NAV/ Face Value
Current current year/ per unit As at As at
(previous year) (In `) 31.03.2019 31.03.2018
Details of Mutual Fund purchased and redeemed during the year : (` in Crores)
PARTICULARS TOTAL PURCHASED TOTAL REDEEMED DIVIDEND RECEIVED
DURING THE YEAR DURING THE YEAR
NO. OF UNITS AMOUNT NO. OF UNITS AMOUNT NO. OF UNITS AMOUNT
UTI MUTUAL FUND 1,471,387.830 150.00 975,726.320 99.47 19653.730 2.00
SBI MUTUAL FUND 2,242,711.190 225.00 2,271,517.570 227.89 29078.260 2.92
TOTAL 3,714,099.020 375.00 3,247,243.890 327.36 48731.990 4.92
Note :
The company invests in liquid scheme (daily dividend) of the above mutual funds. In the daily dividend scheme, dividends are received on daily basis in the form of
units of mutual fund and the value of the NAV of the scheme remain constant.
270
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE - 8 : LOANS
(` in Crores)
As at As at
31.03.2019 31.03.2018
—————— ——————
Non-Current
Loans to Employees
— Secured, considered good 0.66 0.47
— Unsecured, considered good — —
— Have significant increase in credit risk — —
— Credit Impaired — —
—————— ——————
0.66 0.47
Less : Allowance for doubtful loans — —
—————— ——————
0.66 0.47
—————— ——————
CLASSIFICATION
— Secured, considered good 0.66 0.47
— Unsecured, considered good — —
— Have significant increase in credit risk — —
— Credit Impaired — —
Current
Loans to Employees
— Secured, considered good — —
— Unsecured, considered good — —
— Credit Impaired — —
—————— ——————
— —
Less : Allowance for doubtful loans — —
—————— ——————
— —
—————— ——————
CLASSIFICATION
— Secured, considered good — —
— Unsecured, considered good — —
— Have significant increase in credit risk — —
— Credit Impaired — —
271
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE - 9 : OTHER FINANCIAL ASSETS
(` in Crores)
As at As at
31.03.2019 31.03.2018
—————————— ——————————
Non Current
Bank Deposits — —
Deposits with bank under
– Mine Closure Plan 1,182.01 1,019.85
– Shifting & Rehabilitation Fund scheme — —
Other Deposit 145.09 100.99
Receivable from Escrow Account for Mine Closure Expenses 140.63 413.16
Other Deposit and Receivables — —
———— ————
TOTAL 1,467.73 1,534.00
———— ————
Current
Receivable from Escrow Account for Mine Closure Expenses 272.54 —
Current Account with Holding Company — 72.74
Current maturities of long term loan — —
Interest accrued 14.57 59.04
Claims & other receivables* 346.03 409.67
Less : Allowance for doubtful claims 4.76 3.85
———— 341.27 ———— 405.82
———— ————
TOTAL 628.38 537.60
———— ————
Note :
1. Since coal became excisable w.e.f. 01.03.2011, Royalty and SED were considered as “Other Taxes” and excluded from the Transaction Value. Consequent
upon the summon issued by the Directorate General of Central Excise Intelligence (DGCEI), New Delhi and discussion held thereon, CIL, Holding Company,
who represented the issue, has advised to include Royalty and SED in the Transaction Value and pay Central Excise Duty under protest till the case pending
in the Nine Member Bench of Hon’ble Supreme Court is disposed off. Accordingly `85.14 Crs.has been paid under protest against coal dispatched and on
consumption of raw coal in washeries during the period from March’2011 to February’2013 and consequently supplementary bills have been raised for the
said period to the tune of `79.95 Crs. Out of `79.95 Crs., balance realizable amount of `4.56 Crs. from cash sales customers has been shown under the
head “Other Receivable “. Out of `4.56 Crs., customers have obtained stay order for `2.66 Crs. from Hon’ble High Courts of Kolkata and Jharkhand and
against balance of `1.90 Crs., provision of `1.90 Crs. has been made.
2. Deposit with banks under mine closure plan is `1182.01 Crs. (Previous Year `1019.85 Crs.) including interest on Escrow Account of `253.91 Crs. (Previous
Year `198.81 Crs.) refer note no. 21.
3 *It includes fraudulent payment of `0.80 Crs. (refer para no. 7.10 of Note- 38)
4. Interest accrued on Bank Deposits includes accrued interest on deposits under mine closure plan of `5.38 Crs.
272
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE – 10 : OTHER NON-CURRENT ASSETS
(` in Crores)
As at As at
31.03.2019 31.03.2018
—————————— ——————————
(i) Capital Advances 987.41 1,507.99
Less : Provision for doubtful advances 0.09 1.29
————— 987.32 ————— 1,506.70
(ii) Advances other than capital advances
(a) Security Deposit for utilities 1.21 1.16
Less : Provision for doubtful deposits — —
————— 1.21 ————— 1.16
(b) Other Deposits and advances — —
Less : Provision for doubtful deposits — —
————— — ————— —
(c) Advances to related parties — —
————— —————
988.53 TOTAL 1,507.86
————— —————
Maximum Amount Due At Any
Closing Balance
Time During
Particulars
Current Year Previous Year Current Year Previous Year
Note :
1. Capital Advance of `987.41 Crs. Includes `575.49 Crs. given to EC Railway for construction of Tori-Shivpur Rail Line. (Refer Note-4)
273
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE – 11 : OTHER CURRENT ASSETS
(` in Crores)
As at As at
31.03.2019 31.03.2018
–––––––––––––—— –––––––––––––——
(a) Advance for Revenue (for goods & services) 68.56 128.56
Less : Provision for doubtful advances 0.44 0.44
Less: Provision — —
———— — ———— —
TOTAL ———— ————
2,575.22 2,093.56
———— ————
Note :
1. Advance for Revenue includes `11.88 Crs. (P.Y. `11.73 Crs.) paid to various Govt. Agencies/ Departments against CSR activities.
2. By virtue of enactment of Cess and Other Taxes on Minerals (Validation) Act, 1992, the Company, in 1992-93, raised supplementary bills on
customers up to 4th April, 1991 for `100.33 Crs. on account of Cess and Sales Tax thereon. The said amount is recoverable from customers
and shown under the head Claim Receivable others and the corresponding amount has also been included in statutory dues payable for Royalty
and Cess under the head “ Other Current Liabilities” (Note-23).
3. Goods and Service Tax has been implemented w.e.f. 01.07.2017 by subsuming all other taxes. Input Tax Credit receivables for `845.13 Crs.
as on 31.03.2019 includes credit transit through GST TRAN-1 of `143.25 Crs. (Related to pre-GST era), which could not be utilized during
the period due to inverted tax structure and pending scrutiny of GSTR TRAN-1 at Commercial Tax Department. The same shall be utilized/
claimed in the subsequent periods on completion of the scruitiny.
274
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE -12 : INVENTORIES
(` in Crores)
As at As at
31.03.2019 31.03.2018
—————— ——————
(a) Stock of Coal 1,229.85 1,206.37
—————— ——————
1,229.85 1,206.37
—————— ——————
275
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
ANNEXURE TO NOTE - 12
(Qty in lakh tonnes) (` in Crores)
Table:A
Reconciliation of Closing Stock of Raw Coal adopted in the Financial Statements with Book Stock as at the end of the year :
8. Break-up of Difference :
276
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2018
ANNEXURE TO NOTE - 12
(Qty in lakh tonnes) (` in Crores)
Table : B
Summary of Closing Stock of Coal/Coke etc
Raw Coal Washed / Deshaled Coal
Other Products Total
PARTICULARS Coking Non-Coking
Qty Value
Qty Value Qty Value Qty Value Qty Value
Opening Stock (Audited) 135.90 952.31 0.72 36.49 0.34 3.73 14.34 213.84 151.30 1,206.37
Less: Non-vendable Coal/Mixed Stock 1.21 — — — — — — — 1.21 —
Adjusted Opening Stock ( Vendable) 134.69 952.31 0.72 36.49 0.34 3.73 14.34 213.84 150.09 1,206.37
Production 687.22 14,693.02 8.05 564.66 66.31 1,881.59 14.07 914.56 775.65 18,053.83
Offtake
(A) Outside Despatch 592.52 13,190.23 8.07 571.56 66.37 1,882.94 13.28 855.30 680.24 16,500.03
(B) Coal feed to Washeries 91.94 1,530.28 - - - - - 91.94 1,530.28
(C) Own Consumption - 0.04 - - - - - - - 0.04
Closing Stock 137.45 924.78 0.70 29.59 0.28 2.38 15.13 273.10 153.56 1,229.85
Less: Shortage - - - - - -
Closing Stock (Adopted) 137.45 924.78 0.70 29.59 0.28 2.38 15.13 273.10 153.56 1,229.85
Note :
1. Value of Despatch of Other Products includes value of Non Coking Slurry and Rejects, but quantity of Despatch does not include despatch of Non Coking
Slurry 50963 MT ( P.Y. 15886 MT) and Rejects (Both Coking & Non Coking) 597364 MT ( P.Y. 1071303 MT).
2. Closing Stock of Non Coking Slurry and Coking and Non Coking Rejects as on 31.03.2019 is 258670 MT (P.Y. 275035 MT) and 7232847 MT
(P.Y. 1516069 MT ) repectively, valued at NIL in absence of availability of ready market. Sales are recognised on realisable basis.
3. Closing stock of coal is measured volumetrically and converted to weight (tonne) by applying the identified conversion factor. To take care of the inherent
approximation error of volumetric measurement and subsequent conversion thereof to weight by applying a mathematically determined conversion factor,
the variance of (+/-)5% between book stock and physical stock is ignored as per Accounting Policy of the Company being followed consistently over the years
and the net shortage of Book Stock (Vendable) of 3.37 Lakh tonne valuing `20.92 Crs. remains unadjusted in the Books of Account.
4. Contaminated Clean Coal of 83795 MT lying since 1995-96 at Kathara washery is not included in the closing stock and valued at NIL.
277
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
As at As at
31.03.2019 31.03.2018
—————————— ——————————
Current
Outstanding for a period exceeding six months from the due date
Secured considered good — —
Unsecured considered good 100.34 595.01
Have significant increase in credit risk — —
Credit impaired 223.04 76.04
———— ————
323.38 671.05
Less : Allowance for bad & doubtful debts 223.04 76.04
———— 100.34 ———— 595.01
Other Debts
Secured considered good — —
Unsecured considered good 994.79 525.99
Have significant increase in credit risk — —
Credit impaired — 65.09
———— ————
994.79 591.08
Less : Allowance for bad & doubtful debts — 65.09
———— 994.79 ———— 525.99
———— ————
Total 1,095.13 1,121.00
———— ————
278
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
As at As at
31.03.2019 31.03.2018
—————— ——————
(a) Balances with Banks
in Current Accounts
1. Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments is ` NIL.
2. Balance of Cash on Hand is as per Cash Verification Report certified by the management.
3. The bank guarantees issued by CCL on account of two court cases i.e. Ghisha Lal Goyal Vs CCL in case 08/01 and M/s Nav Shakti Fuels Vs
CCL &Ors in FA No. 101/2007 against lien secured by Deposits in Account no. 0404002100045433 for an amount of ` 0.90 Crs.
279
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
As at As at
31.03.2019 31.03.2018
—————— ——————
Balances with Banks
Deposit Accounts 868.16 1,233.74
Mine Closure Plan — —
Shifting and Rehabilitation Fund scheme — —
Escrow Account for Buyback of Shares — —
Unpaid Dividend Accounts — —
Dividend Accounts — —
————— —————
Total 868.16 1,233.74
————— —————
Deposits includes :
(i) ` 5.97 Crs. deposited against the order of the Hon’ble High Court, Kolkata against a claim from customer which includes interest of ` 1.84 Crs. with
corresponding liability in Other Current Liability (Note-23).
(ii) ` 27.81 Crs. deposited as per order of Hon’ble High Court, Kolkata against 20% extra price charged form parties during the period Nov. 2006 to April
2008.
(iii) ` 15.96 Crs. Deposited against the order of the Hon’ble High Court, Jharkhand, case no. WP (C) 4179 of 2016 against encashment of Bank Guarantee
of M/s. Adhunik Alloys & Power Limited.
(iv) Short Term loan amounting to ` 150 Crs. was raised in 2017-18 against Fixed deposit of ` 162 Crs.
NOTE - 16 - EQUITY SHARE CAPITAL
(` in Crores)
As at As at
31.03.2019 31.03.2018
—————— ——————
AUTHORISED
1,10,00,000 Equity Shares of ` 1000/- each 1,100.00 1,100.00
(1,10,00,000 Equity Shares of ` 1000/- each)
ISSUED, SUBSCRIBED AND PAID UP
94,00,000 Equity Shares of ` 1000/- each 940.00 940.00
(94,00,000 Equity Shares of ` 1000/- each)
————— —————
940.00 940.00
————— —————
Note :
1. Out of the above 9399997 Shares are held by the holding company, Coal India Limited (CIL) and balance 3 shares are held by its nominees.
2. Shares in the company held by each shareholder holding more than 5% Shares
As at 31.03.2019 As at 31.03.2018
Name of Shareholder No.of Shares Held % of Total No.of Shares Held % of Total
(Face value of ` 1000 each) Shares (Face value of ` 1000 each) Shares
Coal India Limited 9399997 100 9399997 100
3. The Company has only one class of equity shares having a face value ` 1000/- per share. The holders of the equity shares are entitled to receive dividends
as declared from time to time and are entitled to voting rights proportionate to their share holding at the meeting of shareholders. No larger dividend shall
be declared than is recommended by the Board of Directors.
280
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE - 17 - OTHER EQUITY
(` in Crores)
Particulars General Reserve Retained Earnings OCI Total
Appropriations
Final Dividend — — — —
Tax on Buyback — — — —
Pre-operative expenses — — — —
Appropriations — —
Final Dividend — — — —
Tax on Buyback — — — —
281
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE - 18 - BORROWINGS
(` in Crores)
As at As at
31.03.2019 31.03.2018
—————— ——————
Non-Current
Term Loans — —
Other Loans — —
————— —————
Total — —
————— —————
CLASSIFICATION
Secured — —
Unsecured — —
Current
Secured — 150.00
Unsecured — —
Loan Guaranteed by Directors & Others
Particulars of Loan ` in crores Nature of Guarantee
N.A. NIL NA
Note :
1 CASH CREDIT FACILITY:
The Company is having Cash Credit facility of ` 55 Crs. from Consortium of bankers (having State Bank of India as the lead Bank) through its
holding Company CIL. The said facilities is collaterally secured by creating hypothecation charge over the current assets comprising of Book
Debts and Stock of Raw materials, Semi-finished and finished goods, Stores and Spares not relating to Plant & Equipment (Consumable
Stores & Spares) to the extent of ` 83.00 Crs.
2 Short Term Loan amounting to ` 150 Crs. was raised in 2017-18 against Fixed Deposit of ` 162 Crs.
282
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE - 19 - TRADE PAYABLES
(` in Crores)
As at As at
31.03.2019 31.03.2018
—————— ——————
Current
Trade Payables for Micro, Small and Medium Enterprises — —
Other Trade Payables for
Stores and Spares 122.12 129.24
Power and Fuel 33.63 34.21
Salary Wages and Allowances 328.40 323.56
Others — —
————— —————
TOTAL 484.15 487.01
————— —————
CLASSIFICATION
Secured — —
Unsecured 484.15 487.01
283
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE - 21 - PROVISIONS
(` in Crores)
As at As at
31.03.2019 31.03.2018
—————— ——————
Non Current
Employee Benefits
Gratuity 308.29 605.87
Leave Encashment 166.30 107.11
Other Employee Benefits 133.61 218.50
———— ————
608.20 931.48
Site Restoration/Mine Closure 1,087.26 1,024.26
Stripping Activity Adjustment 1,715.91 1,368.31
Others — —
———— ————
TOTAL 3,411.37 3,324.05
———— ————
Current
Employee Benefits
Gratuity 381.72 315.79
Leave Encashment 47.38 34.67
Ex- Gratia 225.25 223.67
Performance Related Pay 153.92 57.26
Other Employee Benefits 167.73 286.89
NCWA-X 13.57 474.73
Executive Pay Revision 18.20 136.26
———— ————
1,007.77 1,529.27
Site Restoration/Mine Closure — —
Others — —
———— ————
TOTAL 1,007.77 1,529.27
———— ————
Note :
1. Liability on account of NCWA-X amounting ` 14.63 Crs. has been netted off with advance of ` 1.06 Crs.
2 Reconciliation of Relamation of Land/ Site restoraion /Mine Closure :
Gross value of site restoration Asset as on 01.04.2015 664.75 664.75
Add: Unwinding of Provision charged (incl. Capitalised) Upto 31.03.2018/31.03.2017 359.50 307.28
Add: Unwinding of Provision charged (incl. Capitalised) For Current Year 69.53 68.42
Less: Mine Closure Provision withdrawn during the Year 6.52 16.19
Mine Closure Provision as on 31.03.2019 1,087.26 1,024.26
3 Provision for Ex-Gratia for Non-Executive has been made based on ` 60500/- (P.Y. ` 57000/-) per employee per annum as per the revised rate.
4 Leave Encashment Liabilities is netted off of ` 265.92 Crs., deposited with LIC against the Actuarial Liabilities.
5 Pursuant to the guidelines received from Ministry of Coal, Government of India, in connection to Mine Closure Plan, provision for Mine Closure Expenses is made in the accounts based on the technical
assessment of CMPDIL, a subsidiary of Coal India Limited. The liability for such expenses as estimated by CMPDIL of each mine has been discounted @ 8% ( i.e. G-Sec rate) and the same is capitalised to
arrive at the Mine Closure Liability as on first year of making such provision. Thereafter, the provision is re-estimated in subsequent years by unwinding the discount to arrive at the provision as on 31.03.2019.
Deposit in Escrow A/c is `1182.01 Crs. ( P.Y. `1019.85 Crs.) including interest of ` 253.91 Crs.( P.Y. ` 198.81 Crs.) against the Mine Closure Provision of ` 1069.26 Crs. ( P.Y. `1007.59 Crs.).
284
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE - 22 - OTHER NON CURRENT LIABILITIES
(` in Crores)
As at As at
31.03.2019 31.03.2018
—————— ——————
* It includes Grant received from CCDAC for Tori-Shivpur project amounting to ` 536.55 Crs. (P.Y. ` 434.17 Crs.) and strengthening of road of NK Area of ` 4.29 Crs.
(P.Y. ` 4.29 Crs.).
285
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE - 24 - REVENUE FROM OPERATIONS
(` in Crores)
286
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
Miscellaneous Income
Penalty/LD Recovery 41.49 46.13
Recovery Siding Charges 8.63 5.77
Recovery from Employees 25.63 12.86
Others 41.22 28.53
————— —————
Total 116.97 93.29
————— —————
Note :
* Interest on Deposit with Banks includes interest on Escrow Account of `60.48 Crs. (P.Y. ` 43.19 Crs.) including accrued interest of ` 5.38 Crs. (P.Y. 3.08 Crs.) ( Refer
Note -21)
287
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE 27 : CHANGES IN INVENTORIES OF FINISHED GOODS,
WORK IN PROGRESS AND STOCK IN TRADE
(` in Crores)
B. Change in Inventory of workshop made finished goods, WIP and Press Jobs 0.04 1.61
————— —————
Change in Inventory of Stock in trade (A+B+C) { Decretion / ( Accretion) } (23.44) 512.66
————— —————
Salary and Wages (incl. Allowances and Bonus etc.) 3,755.20 3,754.14
288
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE - 29 - CORPORATE SOCIAL RESPONSIBILITY EXPENSES
(` in Crores)
CSR Policy framed by Coal India Ltd. Incorporated the features of the Companies Act, 2013 and othe relevant notifications. The fund for CSR, 2% of the average net profit
for the three immediate preceding financial years of `2.00 per tonne of coal production of previous year, whichever is higher, comes to ` 45.78 Crs. (P.Y. ` 54.80 Crs.)
NOTE - 30 - REPAIRS
(` in Crores)
* Netted off with workshop Debit of ` 149.90 Crores (P.Y. ` 140.07 Crores).
289
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE - 31- CONTRACTUAL EXPENSES
(` in Crores)
—————— ——————
Total 75.26 170.81
—————— ——————
290
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
—————— ——————
Total (A) 169.82 98.03
—————— ——————
Others — —
—————— ——————
291
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE - 34 - WRITE OFF (NET OF PAST PROVISIONS)
(` in Crores)
Doubtful advances — —
292
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
293
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE - 36 - TAX EXPENSES
(` in Crores)
For the Year ended For the Year ended
31.03.2019 31.03.2018
—————————— ——————————
earlier Years — —
————— —————
Total 988.32 579.71
————— —————
Reconciliation of Tax Expenses and Accounting profit multiplied by Indian domestic Tax rate :
Tax using the Company’s domestic tax rate of 34.944% (P.Y. 34.608%) 941.38 480.32
Income Tax Expenses reported in Statement of Profit & Loss 979.83 855.41
Others — —
294
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31ST MARCH, 2019
NOTE - 37 - OTHER COMPREHENSIVE INCOME
(` in Crores)
295
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
(` in Crores)
Financial Assets
Investments : — — — —
Preference Shares
-Equity Component — — — —
-Debt Component — — — —
Other Investments — — — —
Financial Liabilities
Borrowings — — — 150.00
296
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
(b) Fair Value Hierarchy
Table below shows judgments and estimates made in determining the fair values of the financial instruments that are (a) recognized
and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements.
To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial
instruments into the three levels prescribed under the accounting standard.
(` in Crores)
Financial assets and liabilities measured at fair 31st March 2019 31st March 2018
value Level 1 Level 3 Level 1 Level 3
Financial Assets at FVTPL
Investments :
Mutual Fund/ICD 52.56 — — —
Financial Liabilities
If any item — — — —
(` in Crores)
Financial assets and liabilities measured at amortised 31st March, 2019 31st March, 2018
cost for which fair values are disclosed at 31st March,
2019 Level 1 Level 3 Level 1 Level 3
Financial Assets
Investments :
Preference Shares
-Equity Component — — — —
-Debt Component — — — —
Other Investments — — — —
Financial Liabilities
Borrowings — - — 150.00
297
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
A brief of each level is given below.
Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices. This includes Mutual fund which is valued
using closing Net Asset Value (NAV) as at the reporting date.
Level 2 : The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which
maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to
fair value an instrument are observable, the instrument is included in level 2.
Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is
the case for unlisted equity securities, preference shares borrowings, security deposits and other liabilities taken included in level 3.
(e) Fair values of financial assets and liabilities measured at amortised cost
Ø The carrying amounts of trade receivables, short term deposits, cash and cash equivalents, trade payables are considered to
be the same as their fair values, due to their short-term nature.
Ø The Company considers that the Security Deposits does not include a significant financing component. The security deposits
coincide with the company’s performance and the contract requires amounts to be retained for reasons other than the provision of
finance. The withholding of a specified percentage of each milestone payment is intended to protect the interest of the company,
from the contractor failing to adequately complete its obligations under the contract. Accordingly, transaction cost of Security
deposit is considered as fair value at initial recognition and subsequently measured at amortised cost.
Significant estimates: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques. The Company uses its judgment to select a method and makes suitable assumptions at the end of each reporting period.
The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management
of these risks. The Company’s senior management is supported by a risk committee that advises, inter alia, on financial risks and
the appropriate financial risk governance framework for the Company. The risk committee provides assurance to the Board of
Directors that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks
are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors
reviews and agrees policies for managing each of these risks, which are summarized below.
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge
accounting in the financial statements
298
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
The Company risk management is carried out by the Board of Directors as per DPE guidelines issued by Government of India.
The Board provides written principles for overall risk management as well as policies covering investment of excess liquidity.
A. CREDIT RISK:
Credit risk management:
Receivables arise mainly out of sale of Coal. Sale of Coal is broadly categorized as sale through fuel supply agreements (FSAs)
and e-auction.
Macro - economic information (such as regulatory changes) is incorporated as part of the fuel supply agreements (FSAs) and
e-auction terms.
E-Auction Scheme
The E-Auction scheme of coal has been introduced to provide access to coal for customers who were not able to source their
coal requirement through the available institutional mechanisms under the NCDP for various reasons, for example, due to a less than
full allocation of their normative requirement under NCDP, seasonality of their coal requirement and limited requirement of coal that does
not warrant a long-term linkage. The quantity of coal to be offered under E-Auction is reviewed from time to time by the Ministry of Coal.
Credit risk arises when counterparty defaults on contractual obligations resulting in financial loss to the company.
299
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
As on 31.03.2018
(` in Crores)
Ageing Due for 2 Due for 6 Due for 1 year Due for 2 Due for 3 Due for more Total
months months years years than 3 years
Gross Carrying Amount 480.06 425.67 591.35 170.13 132.18 167.08 1966.47
Expected Loss rate % 26.12 30.50 34.01 73.39 82.18 93.17 42.99
Expected Credit Loss allowance – 18.54 21.56 20.09 30.08 26.55 24.31 141.13
Doubtful debts
–Grade Variance 106.86 108.27 181.01 94.78 82.07 131.36 704.34
(` in Crores)
B. LIQUIDITY RISK
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding
through an adequate amount of committed credit facilities to meet obligations when due. Due to the dynamic nature of the underlying
businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines.
Management monitors forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities) and cash and
cash equivalents on the basis of expected cash flows. This is generally carried out at local level in accordance with practice and limits set
by the Company. The bank borrowings of Central Coalfields Limited has been secured by creating charge against stock of coal, stores and
spare parts and book debts within consortium of banks. The total working capital credit limit available to CCL is `55.00 Crore, of which
fund based limit is `83.00 Crore. Further, `2000.00 Crore was set up as non-fund based limit outside consortium in order to facilitate
import of HEMM. Coal India Limited is contingently liable to the extent such facility is actually utilized by the Subsidiary Companies.
300
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.
(` in Crores)
As at 31.03.2019 As at 31.03.2018
less than between more than 5 less than between more than 5
one year one to five years one year one to five years
years years
Non- derivative financial liabilities
Borrowings including interest - - - 150.00 - -
obligations
Trade payables 482.50 1.15 0.50 485.31 1.26 0.44
Other financial liabilities 503.57 64.41 5.38 371.20 54.65 5.31
C. MARKET RISK
Foreign currency risk arises from future commercial transactions and recognized assets or liabilities denominated in a currency
that is not the Company’s functional currency (INR) .The Company is exposed to foreign exchange risk arising from foreign currency
transactions. Foreign exchange risk in respect of foreign operation is considered to be insignificant. The Company also imports and risk
is managed by regular follow up. Company has a policy which is implemented when foreign currency risk becomes significant.
The Company’s main interest rate risk arises from bank deposits with change in interest rate exposes the Company to cash flow
interest rate risk. Company policy is to maintain most of its deposits at fixed rate.
Company manages the risk using guidelines from Department of public enterprises (DPE), diversification of bank deposits credit
limits and other securities.
Capital management
The company being a government entity manages its capital as per the guidelines of Department of investment and public asset
management under Ministry of Finance.
(a) Gratuity :
Gratuity is maintained as a defined benefit retirement plan and contribution is made to the Life Insurance Corporation of India.
The liability or asset recognized in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit
obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by
actuaries using the projected unit credit method. Re-measurement gains and losses arising from experience adjustments and changes
in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income.
301
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
l Leave Encashment
l Medical Benefits
(ii) Unfunded
l Life Cover Scheme
l Settlement Allowance
l Group Personal Accident Insurance
l Leave Travel Concession
l Compensation to dependent on Mine Accident Benefits
Total liability as on 31.03.2019 based on valuation made by the Actuary, details of which are mentioned below is ` 3225.32 Crore.
(` In Crores)
302
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
(e) Disclosure as per Actuary’s Certificate
The disclosures as per actuary’s certificate for employee benefits for Gratuity (funded) and Leave Encashment (funded) are given below: -
(` In Crores)
(` In Crores)
303
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
(` In Crores)
Expense Recognized in Statement of Profit / Loss For the year ended For the year ended
31.03.2019 31.03.2018
Current Service Cost 106.69 99.50
Past Service cost (vested) - 900.33
Net Interest Cost 56.51 (0.75)
Benefit Cost (Expense recognised in Statement of Profit/Loss) 163.21 999.08
(` In Crores)
Other Comprehensive Income For the year ended For the year ended
31.03.2019 31.03.2018
Actuarial (Gain) / Loss on obligations due to change in financial assumption 28.56 (113.16)
Actuarial (Gain) / Loss on obligations due to unexpected experience 11.48 (42.10)
Total Actuarial (Gain) / Loss 40.04 (155.27)
Return on Plan Asset, excluding Interest Income 9.77 0.32
Net (Income) / Expense for the period recognized in Other Comprehensive Income 30.27 (155.59)
Mortality Table
25 0.000984
30 0.001056
35 0.001282
40 0.001803
45 0.002874
50 0.004946
55 0.007888
60 0.011534
65 0.0170085
70 0.0258545
Statement Showing expected return on Plan Asset at end Measurement As at 31.03.2019 As at 31.03.2018
304
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
(` In Crores)
305
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
(` In Crores)
(` In Crores)
(` In Crores)
Superannuation at Age 60 60
Voluntary Retirement - -
(` In Crores)
Expense Recognized in Statement of Profit / Loss For the year For the year
ended 31.03.2019 ended 31.03.2018
Current Service Cost 45.47 43.33
Net Interest Cost 6.06 8.82
Net Actuarial Gain / Loss 142.07 23.57
Benefit Cost (Expense recognized in Statement of Profit/Loss) 193.60 75.72
306
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
Mortality Table
Age Mortality (Per Annum)
25 0.000984
30 0.001056
35 0.001282
40 0.001803
45 0.002874
50 0.004946
55 0.007888
60 0.011534
65 0.0170085
70 0.0258545
(` In Crores)
Statement Showing expected return on Plan Asset at end Measurement As at 31.03.2019 As at 31.03.2018
Current liability 47.38 34.67
Non-Current Liability 432.22 374.34
Net Liability 479.60 409.01
(` In Crores)
Sensitivity Analysis of Leave Encashment Liability 31.03.2019
Increase Decrease
Discount Rate (-/+ 0.5%) 458.92 501.98
%Change Compared to base due to sensitivity -4.312% 4.668%
Salary Growth (-/+ 0.5%) 501.85 458.85
%Change Compared to base due to sensitivity 4.639% -4.325%
Attrition Rate (-/+ 0.5%) 479.67 479.53
%Change Compared to base due to sensitivity 0.015% -0.015%
Mortality Rate (-/+ 10%) 479.61 479.58
%Change Compared to base due to sensitivity 0.003% -0.003%
1 49.14
2 39.66
3 41.98
4 40.10
5 39.40
6 to 10 242.89
More than 10 years 734.37
Total Undiscounted Payments Past and Future Service -
Total Undiscounted Payments related to Past Service 1187.54
Less Discount for Interest 707.94
Projected Benefit Obligation 479.60
307
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
The Company provides Post-Retirement Medical Facility to the retired employees and their spouse. The facility is covered by
separate Post-Retirement Medical scheme for executive and non-executive. Scheme for the medical benefit for executive retired prior
to 01.01.2007 is administered through separate “Contributory Post-Retirement Medical Scheme for Executive Trust”. Liability for the
medical benefits are recognized based on actuarial valuation. For executive retired prior to 01.01.2007 - funded status as on 31.03.2019
` 98.79 Crore (Nil) and liability for the same as on 31.03.2019 is ` 177.66 Crore (` 174.14 Crore).
Pension
The company has a defined contribution pension scheme for its employees, which is administered through CIL Executive
Defined Contribution Pension Scheme-2007 trust. Funded status as on 31.03.2019 ` 129.89 Crore (Nil) and liability for the same as on
31.03.2019 is ` 123.66 Crore (` 252.13 Crore).
4. UNRECOGNIZED ITEMS
Following the judgment of the Hon’ble Supreme Court of India in the case of Common Cause vs. UOI and Others (W.P. (C)
No. 114 of 2014), certain District Mining Officers of Jharkhand, issued demand notices in 41 projects, alleging the production in these
projects exceeding the available Environmental Clearances limits.
The Company has duly filed revision petition against the above demands, before the Hon’ble Coal Tribunal, Ministry of Coal,
Govt. of India, the adjudicating authority under the MMDR, Act. The Revisional Authority Ministry of Coal Govt. of India in their interim
order dated 16.01.2018 has admitted the revision application and stayed the execution of the demand order (of `13389.38 Crores) till
further order.
The demand notice was issued in favour of CCL on behalf of 41 projects and the issue is dealt by Environmental Department
of CCL, hence, the same is kept at HQ. and shown under contingent liability of CCL.
308
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
(` In Crores)
Sl.No. Particulars 31.03.2019 31.03.2018
1 Central Government :
Central Excise 85.04 9.06
Income Tax 600.11 559.96
Clean Energy Cess 13.12 6.12
Service Tax 8.97 94.76
Others - -
2 State Government and Local Authorities:
Sales Tax, RE Cess, PE Cess , other matters 1491.04 1581.23
Royalty 1412.94 558.31
Others :
Entry Tax 25.00 25.00
Electricity Duty 85.92 68.59
MADA 343.86 304.41
Environmental Department 13389.38 13389.38
3 Central Public sector Enterprises - -
Suit against the company under litigation - -
4 Others 559.26 643.56
TOTAL 18014.64 17240.38
II. Guarantee
(b) Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for as on 31.03.2019 : ` 1149.84
Crores (P.Y `1432.87 Crores).
5. GROUP INFORMATION
309
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
Additional Information, as required under Schedule III to the Companies Act, 2013, of enterprises consolidated as
Subsidiary / Associates / Joint Ventures.
(` In Crores)
Name of Enterprises Net Assets i.e. Total Assets Share in profit or loss Share in OCI
minus Total Liabilities
As % of Amount As % of Amount As % of Other Amount
consolidated ( ` in Crs.) consolidated ( ` in Crs.) Comprehensive ( ` in Crs.)
net assets n Cr Profit or Loss Income
6. OTHER INFORMATION
(a) Earnings per share
(` In Crores)
Sl. Particulars For the Year For the Year
No. ended 31.03.2019 ended 31.03.2018
i) Net profit after tax attributable to Equity Share Holders 1705.22 807.76
ii) Weighted Average no. of Equity Shares Outstanding 94 Lakhs 94 Lakhs
iii) Basic and Diluted Earnings per Share in Rupees (Face value `1000/- per share) 1814.06 859.32
310
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
Sl. Payment to CMD, Whole Time Directors and For the year ended For the year ended
No. Company Secretary 31.03.2019 31.03.2018
(i) Short Term Employee Benefits
Gross Salary 3.17 2.40
Medical Benefits 0.01 0.01
Perquisites and other benefits - -
(ii) Post-Employment Benefits
Contribution to P.F. & other fund 0.20 0.15
Actuarial valuation of Gratuity and 0.66 0.60
Leave encashment 0.76 0.83
Contribution to NPS 0.58
(iii) Termination / Retirement Benefits 0.52 0.20
TOTAL 5.90 4.19
Note:
(i) Besides above, whole time Directors have been allowed to use of cars for private journey upto a ceiling of 1000 KMs on
payment of ` 2000 per month as per service conditions.
311
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
S l . Payment to Independent Directors For the year ended For the year ended
No. 31.03.2019 31.03.2018
i) Sitting Fees 0.21 0.22
Name of Related Loan to Loan from Apex Rehabilitation Lease Rent Interest IICM Current
Parties Related Related Charges Charges Income on Funds charges Account
Parties Parties parked transactions
Coal India Limited
(CIL) - - 68.72 41.03 - - - 257.08
Eastern Coalfields
Limited (ECL) - - - - - - - 1.15
Bharat Coking Coal
Limited (BCCL) - - - - - - - 1.55
Western Coalfields
Limited (WCL) - - - - - - - 0.08
South Eastern
Coalfields Limited
(SECL) - - - - - - - 0.59
Northern Coalfields
Limited (NCL) - - - - - - - 0.21
Mahanadi Coalfields
Limited (MCL) - - - - - - - 0.94
Central Mine
Planning and
Design Institute
Limited (CMPDIL) - - - - - - - 128.48
Jharkhand Central
Railway Limited
(JCRL) - - - - - - - -
312
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
Ministry Of Corporate Affairs vide notification dated 30th March 2019 has notified Indian Accounting Standard (Ind AS)
116, Leases which shall come into force on the 1st day of April 2019.
This Standard sets out the principles for the recognition, measurement, presentation, and disclosure of leases. The
objective is to ensure that lessees and lessor provide relevant information in a manner that faithfully represents those
transactions.
Retrospectively to each prior reporting period presented applying IND AS 8 i.e. 1 April 2018.
Retrospectively with the cumulative effect of initially applying the standard on application date i.e. 1 April 2019.
Management is in the process of selecting the appropriate method of transition and estimating the impact in the Financial
Statement.
Ministry of Corporate Affairs vide notification dated 30th March 2019 has notified amendments to Ind AS 19, ‘Employee
Benefits’, in connection with accounting for plan amendments, curtailments and settlements. The amendments require
an entity:
● to use updated assumptions to determine current service cost and net interest for the remainder of the period
after a plan amendment, curtailment or settlement; and
● to recognise in profit or loss as part of past service cost, or a gain or loss on settlement, any reduction in a surplus,
even if that surplus was not previously recognised because of the impact of the asset ceiling.
Effective date for application of this amendment is annual period beginning on or after 1 April 2019. Management is in
the process of estimating the impact of the above in the Financial Statement.
As per existing practice, goods purchased by Coal India Ltd. on behalf of subsidiary companies are accounted for in the books
of respective subsidiaries directly.
Insurance and escalation claims are accounted for on the basis of admission/final settlement.
Provisions made in the accounts against slow moving/non-moving/obsolete stores, claims receivable, advances, doubtful debts
etc. are considered adequate to cover possible losses.
313
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
In the opinion of the Management, assets other than fixed assets and non-current investments have a value on realisation in
the ordinary course of business at least equal to the amount at which they are stated.
h) Current Liabilities
Estimated liability has been provided where actual liability could not be measured.
i) Balance Confirmations
Balance confirmation/reconciliation is carried out for cash &bank balances, certain loans & advances, long term liabilities
and current liabilities. Provision is taken against all doubtful unconfirmed balances.
Significant accounting policy (Note-2) has been drafted to elucidate the accounting policies adopted by the Company
in accordance with Indian Accounting Standards (Ind ASs) notified by Ministry of Corporate Affairs (MCA) under the
Companies (Indian Accounting Standards) Rules, 2015.
k) Leases
i) M/s. Imperial Fastners Pvt. Limited, In terms of lease agreement, has been granted a right to occupy and use the assets
of the Company. The cost of gross carrying amount of the asset is ` 80.19 Crores and progressive depreciation there
on is ` 77.69 Crores and WDV is ` 2.50 Crores (reserve value). The future minimum lease payment receivable in the
aggregate during the period of lease is ` 28.32 Crores. The details of future lease payment receivables are as under :
(` In Crores)
Particulars As at 31.03.2019 As at 31.03.2018
(i) Not later than one year 3.84 3.84
(ii) Later than one year and not later than five years 15.36 15.36
(iii) Later than five years and till the period of lease 9.12 12.96
Total 28.32 32.16
ii) Punjab State Electricity Board, In terms of lease agreement, has been granted a right to use 15.50 acres of land of the
company. The cost of gross carrying amount of the asset is ` 7.90 Crores and progressive depreciation there on is
` 7.90 Crores and WDV is Nil. The future minimum lease payment receivable in aggregate during the period of lease is
` 3.36 Crores. The details of future lease payments receivable are as under :
(` In Crores)
As at 31.03.2019 As at 31.03.2018
(i) Not later than one year 0.19 0.19
(ii) Later than one year and not later than five years 0.77 0.77
(iii) Later than five years and till the period of lease 2.40 2.59
Total 3.36 3.55
314
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
iii) EIPL, In terms of lease agreement, has been granted a right to occupy and use the assets of the company. The cost
of gross carrying amount of the asset is ` 4968 and progressive depreciation there on is ` 4968 and WDV is Nil. The
future minimum lease payment receivable in aggregate during the period of lease is ` 1.32 Lakhs. The details of future
lease payments receivable are as under :
(` In Lakhs)
As at 31.03.2019 As at 31.03.2018
(i) Not later than one year 0.12 0.12
(ii) Later than one year and not later than five years 0.48 0.48
(iii) Later than five years and till the period of lease 0.72 0.84
Total 1.32 1.44
l) Segment Reporting
In accordance with the provisions of Ind AS 108 ‘operating segment’, the operating segment used for presenting segment
information are identified based on internal report used by Board to allocate resources to the segment and assess their performance.
The Board is the group of Chief operating decision maker within the meaning of Ind AS 108.
The Board consider a business from a prospect of significant product offering and have decided that presently there is one
single reportable segment being sale of Coal. Information of financial performance and assets is presented in the consolidated
information to statement of profit and loss and balance sheet.
(` In Crores)
Name of each parties having more than 10% of Revenue (Net) Amount Country
Customer - 1 2784.18
Customer - 2 2031.45
India
Others 6458.36
315
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
Types of Customers
- Power Sector 7539.22 7165.67
- Non-Power Sector 3734.77 3847.63
- Others or Services (CMPDIL) - -
Types of Contracts
- FSA 8174.29 7639.29
- E-Auction 3099.70 3374.10
- Others - -
n) Provisions
The Position and movement of various provisions as per Ind AS-37 except those relating to employee benefits which are valued
actuarially as on 31.03.2019 are given below :
316
CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19
NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
(` In Crores)
Provisions Opening Addition during Write back/ Unwinding of Closing
Balance as on the year Adj./ Paid Discount Balance as on
01.04.2018 during the year 31/03/2019
Note 3:- Property, Plant and Equipments :
Other Loans : - - - - -
Note 9:- Other Financial Assets:
Provision for bad & doubtful debts: 141.13 155.80 73.89 - 223.04
Note 21 :- Non-Current & Current Provision :
Others
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NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
7. GENERAL
7.1 Refund/Adjustment of tax from Tax Authorities are accounted for on cash basis. Additional demand for Income Tax, Royalty, Cess,
Sales Tax, Entry Tax etc. are accounted for after receipt of final order except as otherwise not recognized under IND AS-37.
7.2 The Government of Jharkhand has demanded Royalty for ` 2.55 Crores in respect of 9 LT non-vendable coal at Rajrappa Area
written-off in the year 1989. The company (CCL) preferred to appeal before Commissioner of Mines, Jharkhand but the same
was rejected. On rejection, the company filed writ petition WP 1754( c) of 2014 before Hon’ble High Court of Jharkhand and the
same was pending at the court. Last hearing date was 09.05.2016. Hon’ble High Court has directed Government of Jharkhand
to produce documentary evidence in support of their claim which has not been filed till date.
7.3 (a) There is a long pending dispute over capitalization cost of Rajrappa and Giddi Captive Power Plant, commissioned by EIPL on
Built Own and Operate ( BOO) basis and the dispute is pending in Civil Appeal No. 7403 of 2009, filed by the Company before
the Hon’ble Supreme Court against the Order dated 31.07.2009 of the Jharkhand State Electricity Regulatory Commission duly
confirmed by the Appellate Tribunal.
(b) Pursuant to Interim Orders of the Hon’ble Supreme Court dated 14.09.12 and 23.11.12 passed in the said Appeal, the Company
had accounted for a liability of ` 94.33 Crores in 2012-13 upto the period March, 2008. Out of which ` 83.03 Crores had
been paid to EIPL (erstwhile DLF Ltd ) as 25% deemed energy charges during the said period. Further, an ad-hoc payment of
` 75 Crores and ` 25 Crores had been made on 20.11.13 and 10.01.14 respectively as per directives of the Hon’ble Supreme
Court. As directed by the Hon’ble Supreme Court revised amount payable from April’ 08 to March’14 had been calculated based
on the methodology adopted by JSERC in determining the revised tariff up to the period March’ 08. Accordingly an amount of
` 23.25 Crores had been provided during the financial year 2013-14 in addition to ` 94.33 Crores, which was already provided
in the Financial Statements of 2012-13. For the financial year 2014-15, additional liability of ` 3.26 Crores has been provided.
For the financial year 2015-16 additional liability of ` 0.26 Crores has also been provided. The details of balance receivable
amount from EIPL are as under:
(i) Differential Tariff for the period upto March’08 -in respect of ` 94.33 Crores.
which liability has been provided in the Financial Statements of 2012-13.
(ii) Differential Tariff for the period April’ 08- to March’14 in ` 23.25 Crores.
in respect of which liability has been provided in the year 2013-14.
(iii) Old keep back amount in respect of deemed energy charges ` 31.36 Crores.
(c) As per clause 1.18.3 of the Power Purchase Agreement with M/s. EIPL, from the date of expiry of one year from commissioning
of the respective power plant, increase/decrease of fuel components of tariff due to variation in fuel cost shall be determined.
The initial price of rejects as per clause 1.14 of PPA was ` 90 per tonne.
Accordingly calculation had been made as per clause 1.18.3 of PPA and additional revenue receivable on account of revision in
price of rejects net off with additional tariff payable on account of revised tariff due to increase in fuel cost had been considered
in the Financial Statements for the year 2013-14 and supplementary bill to EIPL had also been raised.
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NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
Subsequently, during the financial year 2014-15 the price of rejects was again revised based on the recommendations of the
CCL standing committee of Sales and Marketing department and the same was communicated to Director(Operation) of DLF
Ltd. vide letter Ref. No. GM(E&M)/DLF/14/ 3530-36 dated. 17.11.2014. As per letter, G grade slake coal which was the lowest
grade under UHV system of pricing applicable prior to 01.01.2012 will be charged for the period from July, 2000 to December,
2011 from EIPL. Consequent upon the issue of above letter, Sales bill and power tariff has been revised.
As on 31.03.2016, the amount receivable from EIPL on account of supply of rejects after adjusting enhanced tariff was ` 38.69
Crores. Due to non-payment of the same, the following action has been taken:
As per clause 2.6 of the Power Purchase Agreement dated 8th February, 1993, in the event of any dispute arising out of or in
relation to the agreement, the same shall be referred to the sole arbitration of an arbitrator mutually acceptable to CIL & EIPL
as per provisions of Arbitration Act. The emerging situation is that as the parties to the agreement have failed to mutually agree
to the appointment of an arbitrator, the petitioner (CCL) is left with no other alternative but to move to the Hon’ble High Court for
appointment of an arbitrator in exercising powers under section 11(6) of the Arbitration and Conciliation Act, 1996. The Arbitration
Application has been filed on 7th April, 2016. However, provision for ` 38.69 Crores has been made in the financial year 2015-
16. The present status of this case is the Hon’ble Supreme Court has appointed Ld. Arbitrator as per Agreement claim during
2017-18 and the same is pending before Ld. Arbitrator.
7.4 Theft of goods during the year is ` 0.46 Crores (Previous year ` 0.44 Crores), which has been duly accounted for.
7.5 Compensation Receivable in terms of “Fuel Supply Agreement” (FSA) is accounted for on receipt basis.
7.6 M/s. Garden reach Ship Builders & Engineering Company had been awarded contracts for supply and repairs of equipment in
the year 1990. Since, the work was not to the satisfaction, the company withheld the payment. Subsequently against the demand
of ` 49.68 Crores, the company agreed to pay ` 12.58 Crores, and the same has been provided in the accounts.
7.7 The Company has signed a MOU with the President of India acting through Sri R. Subrahmanyam, Additional Secretary, and
Ministry of Human Resource Development on 12th December, 2015 as third industry partner for setting of Indian Institute of
Information Technology, Ranchi (IIIT) under Public Private Partnership (PPP) mode in the state of Jharkhand. An amount of
` 3.20 Crores was remitted through RTGS to IIIT, Ranchi by the company
7.8 Lease agreement with M/s. IFPL was entered in the year 2005 for a period of 20 years, and is valid up to 2025. As per Agreement,
the company will supply washery rejects and IFPL will generate power and supply to Kathara Area. As per the provisions of
Lease agreement, IFPL will pay ` 32 Lakhs per month as Lease rent. IFPL has suspended operation from July 2018 and also
not making payment of Lease rent. As a result, a provision to the tune of ` 1.60 Crores has been made during the year 2018-19
towards the differential amount of lease rental receivables amounting to ` 4.02 Crores and Power expenses payable to IFPL for
` 2.42 Crores.
7.9 In terms of Memorandum of Understanding signed on 07.05.2015 between Central Coalfields Limited (CCL), IRCON International
Limited (IRCON) and the Govt. of Jharkhand (GoJ) for development, financing and implementation of Railway Infrastructure works
in the State of Jharkhand, a Subsidiary Company named as “Jharkhand Central Railway Limited”(JCRL) was incorporated on
31.08.2015 under the Companies Act, 2013 with an authorized capital of ` 5 Crores, which has subsequently been increased
to ` 500 Crores. The committed equity share holding pattern, as per MOA, of CCL, IRCON International Limited and Govt. of
Jharkhand are 64%, 26% and 10% respectively. As on Balance sheet date, JCRL has allotted shares to the value of ` 32.00
Crores to the company, ` 13.00 Crores to IRCON International Limited and ` 5.00 Crores to Government of Jharkhand. The
paid-up capital of JCRL as on 31.03.2019 is ` 50.00 Crores.
CCL has prepared Consolidated Financial Statements in addition to its Standalone Financial Statements for compliance of the
Section 129(3) of the Companies Act, 2013.
JCRL has earned a Profit before tax ` 1.77 Crores [P.Y. (Loss) ` 0.03 Crores] for the year ended 31st March 2019.
7.10 Alleged fraudulent payment to the tune of ` 0.80 Crores has been detected against 104 fake bills at Barkasayal area in 2015-16.
The matter is still under investigation and pending before CBI.
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NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
7.11 For the purpose of valuation of inventories, power cost has been distributed on the basis of internal departmental certificate to
the units of the area instead of actual consumption basis.
7.12 Consequent upon the agreement made with Coal India Limited and President of India for allocation of coal block Kotre Basantpur
and Panchmo Coal Blocks under Coal Mines (Special Provisions) Act, 2015, and subsequent allocation to CCL for operation
and commercial use of mines, the company (CCL) has deposited 50% of Upfront fees amounting to `20.65 Crores and fixed
amount for `9.91 Crores and furnished Performance Bank Guarantee (Performance Security) amounting to `286.14 Crores, in
designated bank account of Nominated Authority for allotment. `30.56 Crores (upfront fees `20.65 Crores and Security deposit
`9.91 Crores) is appearing under Exploration Evaluation Assets in Note-5. As the conditions of prescribed guidelines for making
payment of 2nd and 3rd instalment is not yet fulfilled, the balance amount of `20.65 Crores is shown under Capital Commitment.
7.13 The Hon’ble Supreme Court of India, in Transferred Case (CIVIL) No. 43 of 2016 vide order dated 13.10.2017 has held that DMF
will be applicable in the State of Jharkhand on and from the date of establishment of DMF Trust i.e. 07.12.2015. Accordingly, the
amount of ` 286.31 Crore deposited with the State Govt. relating to the period prior to 07.12.2015 shall be refunded/ adjusted
from the DMF payable by the company. Out of the said amount a sum of `169.37 Crore has been adjusted and balance amount of
`116.94 Crore is yet to be refunded/ adjusted from the State Government. As per directive of State Govt., Areas have submitted
their claim to the respective DMO for getting Refund / adjustment.
7.14 Against the demand of Income Tax Department under section 206 C of the Income Tax Act, 1961, for an amount of `106.56
Crores, the department has collected ` 71.79 Crores by attaching the bank account of the company and the balance amount
of `34.77 Crores has been deposited by the company. The company has recovered `75.62 Crores from the customers as on
balance sheet date and the balance `30.94 Crores is under process of recovery.
Out of `30.94 Crores, `26.85 Crores relates to the period of 01.04.2012 to 30.06.2012 when there was no TCS on Coal. As
TCS was implemented on coal on and from 01.07.2012 a rectification petition u/s 154 of Income Tax Act, 1961 has already been
filed on 02.02.2018 to rectify the error, the hearing of which has not yet started.
7.15 As per the guidelines issued by Ministry of Coal on Mine Closure Plan dated 07/01/2013,
the company has submitted claims in respect of 64 mines to CMPDIL for audit and certification. Out of this, claims of 59 nos.
mines have been audited and certified by CMPDIL whose first phase of five years has been completed and remaining five nos.
claims are not audited / certified due to non-completion of 5 year period. As on Balance sheet date, claims of 59 mines amounting
to ` 413.17 Crores duly certified by CMPDIL is shown in Receivable from Escrow Account for Mine Closure Expenses under
Note-9.
Further, based on technical assessment by the areas, claim receivables against progressive mine closure expenditure for FY
16-17, FY 17-18 & FY 18-19, amounting to `145.09 Cr, has also been ascertained and shown under Note 9 (Non Current)
under the head other deposits. Therefore, the total Mine closure receivables as on 31.03.2019, comes ` 558.26 Cr. Out of this,
receivables up to FY 17-18, amounting to ` 514.15 Cr. has been accounted for through Retained Earnings in compliance with
the clause no. 2.24.1.2 of Significant Accounting Policies.
7.16 In pursuance of Para 4 of Mine Closure Guide lines issued by Ministry of Coal, Government of India, “The money to be levied
per hectare of total project Area is to be deposited every year after commencement of any activity on the land for the mine after
opening Escrow account prior to obtaining mine operating permission from Coal Controller.”
Production of two mines namely Argada OCP, Pindra UGP has not yet been started, though, the mine closure plan was approved
by the board. Hence, the Site restoration Asset, Progressive Depreciation and Mine Closure Provision in respect of the above
two mines created earlier has been withdrawn. Mine wise details are given below:
(` In Crores)
Name of Mine Site Restoration Asset Progressive Depreciation Mine Closure Provision
Argada OCP 8.70 0 10.96
Pindra UGP 4.15 0.83 5.23
Total 12.85 0.83 16.19
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NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
7.17 CCL used to supply Washed Medium Coking Coal (WMCC) to M/S SAIL & RINL at the price mutually agreed in MOU entered
between CCL & SAIL / RINL, duly signed by the representatives of CCL & SAIL/RINL with validity upto 31.03.2017. As per CIL’s
guidelines, CCL had notified the price of WMCC at ` 11,500 per tonne with effect from 14/01/2017 in compliance with doctrine
of Import Parity as envisaged by New Coal Distribution Policy (NCDP) of Government with bonus/penalty clause variable in line
with ash content.
As the MOU was valid up to 31/03/2017, but the Price Notification was issued on 14/01/2017, a provision for the period from
14/01/2017 to 31/03/2017 for the difference of MOU price and Notified price on the quantity despatched, amounting to ` 155.80
Crores (` 126.16 Crore in respect of SAIL and ` 29.64 Crore in respect of RINL ) has been made in the accounts during the
year 2018-19.
After repetitive requests of M/S SAIL, CCL Board dated 28/07/2018 agreed to supply WMCC at an ad hoc price of ` 6,500 per
tonne with a condition that the report of the external agency to be appointed/engaged for establishment of fair and transparent
Price Determination Mechanism shall be applicable and accordingly SAIL/RINL has agreed with the decision of CCL Board.
The proposal for engagement of external agency i.e M/s. PWC being the L1 bidder, has been forwarded to CIL for obtaining the
approval of Coal India Board as the value of the proposal is beyond the financial power of CCL Board. After issuing the work
order and acceptance of the report of the agency by the competent authority of CCL, provision if necessary, will be considered
in the Financial Year 2019-20.
8. Reconciliation of Profit for the Quarter/Year due to restatement of Prior Period Adjustments
(` In Crores)
Note:- ` 474.42 Cr. Prior period adjustment relates to the period prior to 2017-18. Hence it has been adjusted with retained earnings in Note -17
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NOTE - 38 : ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH, 2019 (CONSOLIDATED)
Others
i. Previous year’s figures have been restated, regrouped and rearranged wherever considered necessary.
iii. Note – 1 and 2 represents Corporate information and Significant Accounting Policies respectively, Note 3 to 23 form part of the
Balance Sheet as at 31st March, 2019 and 24 to 37 form part of Statement of Profit & Loss for the year ended on that date.
Note – 38 represents Additional Notes to the Financial Statements.
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Form AOC – 1
(Pursuant to first proviso to sub-section(3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
1. Sl. No. : 1
10. Investments : —
11. Turnover : —
To
The Members
Central Coalfields Limited,
Darbhanga House,
Ranchi.
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(b) Certain Balances of Loans, other financial assets, other Balance confirmation letters have been issued to the parties in
current & non-current assets, trade payables, other respect of trade receivables, trade payables and advances. The
financial liabilities and other current liabilities are subject balances with major Sundry Debtors are reconciled at regular
to confirmation, however, letters seeking confirmation intervals and Joint Reconciliation Statements are also signed
have been issued. Consequent impact on confirmation/ by both the parties.
reconciliation/ adjustment of such balances, if any is not
ascertainable.
(c) Washed medium coking Coal (WMCC) was being It is adequately disclosed under Additional Notes to the Financial
supplied by CCL at mutually agreed price under an Statements ( Refer Point No. 7.17 of Note-38).
MOU to M/s SAIL & M/s RINL. However, no MOU has
been signed between CCL & SAIL/RINL for the Financial
Year 2017-18 and onwards. From 1/4/2017, the price
of WMCC has been revised quarterly, using an import
parity-based Pricing Mechanism adopted by CCL as
envisaged under New Coal Distribution Policy (NCDP)
under which the CCL has been raising invoices to SAIL/
RINL as per notified price.
Due to non-execution of MOU for the Financial Year
2017-18 and onwards, SAIL/RINL requested to appoint
an external agency for price fixation mechanism. CCL
decided to appoint an External Agency for fixation of a
transparent import parity-based price mechanism, which
is under process of competent approval, and under an
interim arrangement w.e.f 28/07/2018, CCL agreed
to supply WMCC at an ad hoc price of Rs 6500/- per
tonne. Engagement/appointment of external agency for
determination of price mechanism SAIL has requested to
implement the recommendations of external agency to be
made applicable from 01/04/2017 instead of 28.07.2018.
However, CCL has decided that the price as determined
by External Agency shall be applicable w.e.f 28/07/2018
and not retrospectively and accordingly, sales prior to
applicability of ad hoc price, has been recognized at the
quarterly revised notified price.
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Annexure “A” referred to in paragraph 1 of “Report on Other Legal and Regulatory Requirements”
of Independent Auditor’s Report to the members of the Company on the Consolidated Ind AS
financial statements for the year ended March 31, 2019, we report that;
Report on directions under section 143(5) of the companies act, 2013 in respect of
M/s Central Coalfields Limited for the year 2018-19.
The company has a system in place to process All the accounting transactions are processed through Coal Net
accounting transactions through CoalNet system System
that has been customized to integrate the various
functional modules. The areas mostly covered in
the applications are: Finance, Sales & Marketing,
Payroll, Material Management, Personnel and
others. However, full integration is not yet achieved
and as informed the company is in the process of
implementing ERP to ensure seamless movement
of data across different modules with minimum
intervention.
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Report on additional directions under Section 143(5) of the Companies Act, 2013 in respect of
M/s. Central Coalfields Limited for the year 2018-19.
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Annexure – “B” referred to in paragraph 3(f) of “Report on Other Legal and Regulatory Requirements”
of Independent Auditor’s Report to the members of the Company of even date on the Consolidated Ind
AS financial statements for the year ended March 31, 2019, we report that;
Auditors’ Responsibility
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Opinion
Other Matters
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