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WESTERN COALFIELDS LIMITED
ANNUAL REPORT AND ACCOUNTS
2011-2012
WESTERN COALFIELDS LIMITED
( A Miniratna Company)
Coal Estate, Civil Lines, Nagpur - 440 001
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ANNUAL REPORT 2011-12
WESTERN COALFIELDS LIMITED
( A Miniratna Company)
CONTENTSPage No.
1 Board of Directors 1
2 Bankers & Auditors 3
3 Notice 4
4 Performance at a glance 6
5 Chairman's Statement 9
6 Awards and Accolades 14
7 Directors Report 21
8 Addendum to the Directors Report : 70
a) Comments of the Comptroller and Auditor General of
India under section 619(4) of the Companies Act, 1956
b) Auditors Report and Managements Reply
9 Balance Sheet as at 31st March, 2011 87
10 Profit & Loss Account for the year ended 31st March, 2011 88
11 Cash flow statement for the year 2010-11 89
12 Notes to Balance Sheet ( Notes 1 to 19 ) 90
13 Schedules (20 to 32) to Profit & Loss Account 106
14 Significant Accounting Policies - Note 33 113
15 Additional Notes on Accounts - Note 34 119
16 Statement of Audited Results for theQuarter and Year Ended 31.03.2012 141
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WESTERN COALFIELDS LIMITED
WESTERN COALFIELDS LIMITED( A Subsidiary of Coal India Limited )
Board of Directors( As on 25th May, 2012 )
Chairman-cum-Managing Director
Shri D.C. Garg
Functional Directors
Shri B.K. Saxena - TechnicalShri Om Prakash - TechnicalShri Sushil Behl - FinanceShri Rupak Dayal - Personeel
Government Directors (Part time)
Shri A.K. Bhalla - Joint Secretary,Ministry of Coal.
Shri R. Mohan Das - Director (Personnel & IR),
Coal India Limited, Kolkata.
Non-official Directors (Part time)
Dr. Ahindra Chakrabarti - Professor, IMI, New DelhiMs. Lalitha Kumar - Former IAS Officer, New DelhiShri Vinod Somani - CA, New DelhiShri Arun Balakrishnan - Former CMD, HPCLDr. D. Chamdrashekharam - Professor, IIT, Mumbai
Permanent Invitee(s)
Shri Z.A. Siddiqui - Chief Operations Manager,Central Railway, Mumbai.
Company Secretary
Shri Rameher
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ANNUAL REPORT 2011-12
WESTERN COALFIELDS LIMITED( A Subsidiary of Coal India Limited )
Board of Directors( During the year 2011-12 )
Chairman-cum-Managing Director
Shri D.C. Garg - From 01.05.2007
Functional Directors
Shri O.P. Miglani - Personnel (upto 01.05.2011)
Shri B.K. Saxena - Technical ( w.e.f. 07.03.2008 )
Shri Om Prakash - Technical ( w.e.f. 01.06.2008 )Shri Sushil Behl - Finance ( w.e.f. 01.11.2009 )
Shri Rupak Dayal - Personnel ( w.e.f. 28.09.2011 )
Government Directors (Part time)
Shri A.K. Bhalla - Joint Secretary, Ministry of Coal,
New Delhi ( w.e.f. 06.07.2010 )
Shri R. Mohan Das Director (Personnel & IR),Coal India
Limited, Kolkata ( w.e.f. 28.06.2007 )
Non-official Directors (Part time)
Dr. Ahindra Chakrabarti - w.e.f. 27.04.2010
Ms. Lalitha Kumar - w.e.f. 24.02.2011
Shri Vinod Somani - w.e.f. 24.02.2011
Shri Arun Balakrishnan - w.e.f. 24.02.2011
Dr. D. Chandrashekharam - w.e.f. 24.02.2011
Permanent Invitee(s)
Shri S.K. Mishra - Secretary, Mineral Resources Department,Govt. of Madhya Pradesh, Bhopal ( w.e.f. 25.09.2008 )
Shri Satya Prakash Chief Operations Manager, Central Railway,
Mumbai( upto 28.11.2011 )
Shri Z.A. Siddiqui - Chief Operations Manager, Central Railway,
Mumbai( w.e.f. 06.01.2012 )
Company Secretary _
Shri Rameher ( w.e.f. 01.02.2008 )
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WESTERN COALFIELDS LIMITED
BANKERS
STATE BANK OF INDIASTATE BANK OF HYDERABAD
CENTRAL BANK OF INDIAUCO BANK
BANK OF MAHARASHTRAUNION BANK OF INDIA
ORIENTAL BANK OF COMMERCEALLAHABAD BANK
INDIAN BANK
PUNJAB NATIONAL BANKBANK OF INDIA
HDFC BANKIDBI BANK
DENA BANK
STATUTORY AUDITORS
M/S C . R . SAGDEO & COCHARTERED ACCOUNTANTS
NAGPUR
BRANCH AUDITORS
M/S JODH JOSHI & COCHARTERED ACCOUNTANTS
NAGPUR
M/S A . S . DANI & COCHARTERED ACCOUNTANTS
NAGPUR
M/S CHANDAK , KHANZODE & SHENWAICHARTERED ACCOUNTANTS
NAGPUR
REGISTERED OFFICECOAL ESTATE ,
CIVIL LINES ,NAGPUR 440001
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ANNUAL REPORT 2011-12
WESTERN COALFIELDS LIMITED
Ref : WCL/SECY/BD/AGM-37/2012/782 Date : 21st May, 2012
N O T I C E
THIRTY SEVENTH ANNUAL GENERAL MEETING
Notice is hereby given that the Thirty Seventh Annual General Meeting ofWestern Coalfields Limited will be held at 1.00 P.M. on Friday, the 25th May, 2012at the Registered Office of the Company at Coal Estate, Civil Lines, Nagpurtotransact the following business :
ORDINARY BUSINESS:1. To receive, consider and adopt the Audited Balance Sheet as on 31st March, 2012 and
Profit & Loss Account for the year ended 31st March, 2012 together with the DirectorsReport and Reports of the Statutory Auditors & Comptroller and Auditor General of Indiathereon.
2. To declare dividend.
3. To appoint a Director in place of Shri A.K. Bhalla, who retires in terms of Article 33(e)(iii)of the Articles of Association of the Company and is eligible for re-appointment.
4. To appoint a Director in place of Shri R. Mohan Das, who retires in terms of Article 33 (e) (iii)
of the Articles of Association of the Company and is eligible for re-appointment.
By order of Board of Directors
FOR WESTERN COALFIELDS LIMITED
Sd/-
( Rameher ) Sr. Manager (Finance)/
Company Secretary
Registered Office :Coal Estate, Civil Lines,NAGPUR - 440 001
NOTE :
1. A member entitled to attend and vote at the meeting is also entitled to appoint a proxyor proxies to attend and vote instead of himself/herself and such proxy need not be amember of the Company. In order to be effective, the Proxy form duly completed shouldbe deposited at the registered office of the Company not less than forty-eight hoursbefore the scheduled time of the Annual General Meeting. A proxy form is enclosed.
Contd.....
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2. Members are also requested to accord their consent for convening the meeting at a
shorter Notice under section 171(2)(i) of the Companies Act, 1956.
To,
1. Members/Shareholders,
Western Coalfields Limited
2. Statutory Auditors,
Western Coalfields Limited
3. Chairman, Audit Committee,
Western Coalfields Limited
Copy to
All Directors, Western Coalfields Limited, Nagpur
Company Secretary, Coal India Limited, Kolkata
General Manager (Finance) I/C-I WCL, Nagpur
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ANNUAL REPORT 2011-12
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ANNUAL REPORT 2011-12
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WESTERN COALFIELDS LIMITED
Chairmans StatementFriends,
I feel great pleasure in reporting another strong year for WesternCoalfields Limited, at the 37th Annual General Meeting of the company.We reported strong top line, that is, revenues of Rs 8357.48 croresalong with sturdy bottom line, that is, pre tax profit of Rs 440.50 croresduring the financial year 2011-12.
I am delighted to share that we are extremely well positioned amongthe coal producers in the country on the strength of our strong balancesheet and sturdy performance year after year by surmounting thechallenges posed by adverse geo mining parameters, paucity of
reserves amenable to mega projects, constraints in land acquisition,the highest stripping ratio among all the subsidiaries of CIL and stratacontrol problems at underground mines by adverse geo tectonicparameters.
Vision
It is well deliberated fact, that to sustain the high growth of economy, India needs to augmentpower generation capacity, as the country faces 12% shortage of peak demand in power.
It is obvious that the coal producers will have to augment coal availability to meet the highdemand for coal, as it is the prime energy mineral. It is a matter of record that exponential risein Coal demand has resulted in negative coal balance (The difference between aggregatedemand and availability of coal) at Western Coalfields Limited to the tune of 34.72 million tonnesduring the current year itself).
Keeping the reality in the mind, WCL has set its vision to emerge as a key player in the primaryenergy sector committed to provide energy security to the country by attaining environmentallyand socially sustainable growth through best practices from mine to market.
Performance 2011-12With the concerted efforts by the team of WCL, we could achieve 43.11 million tonnes of CoalProduction as against the last years 43.65 million tonnes and RE Target of 43.80 million tonnes.
Notably the coal production of 1.8 million tonnes could not materialize from Umrer OC due to itsprolonged discontinuance since Sept10, due to bench failure leading to inrush of Amb river intothe mine. The mine has been started and it will contribute coal production during FY 2012-13.
The Coal off-take of 41.967 million tonnes during the financial year, has been constrainedmainly on account of non lifting of 4.036 million tonnes of coal over contracted quantity byMAHAGENCO through Road cum Rail mode since Aug 2011, coupled with 1.072 million tonnesless drawal of coal through captive modes (Rope, MGR & Belt) by CSTPS, MAHAGENCO. Ofcourse, non availability of 1.8 million tonnes of coal from Umrer OC on account of itsdiscontinuance had certainly affected the off-take. Factoring these shortfalls on the actualproduction of FY 2011-12, it may be appreciated that the company could have exceeded itstarget of 45.50 MT of coal production and Coal off-take.
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ANNUAL REPORT 2011-12
WCL produces about 88% of Coal through departmental means, whereas the system capacityutilization in coal production has been 107.02% (System capacity 40.28 MT as assessed by
CMPDI for FY 2011-12). The system capacity utilization during the year with respect to OBremoval has been 100.55% (122.49 million cubic metres achieved as against the systemcapacity of 121.81 million cubic metres assessed by CMPDI for FY 2011-12). This achievementis certainly commendable for the company which operates in highest Stripping Ratio.
The company has achieved an overall productivity of 2.70 tonnes per man shift, which is 106.3%of the targeted 2.54 tonnes per man shift, thus registering a growth of 1.88% over the lastyears 2.65 tonnes per man shift.
Sales Realisation from customers during 2011-12 has been the highest ever approximately Rs8620.70 crores, showing a growth of 17.86% against that of Rs 7314.00 crores during last
fiscal.
The total outstanding dues with customers brought down from Rs 147.37 crores as on 01/04/11 to Rs 133.05 crores as on 01/04/12, that is, reduction in outstanding dues by 9.72%.
Financial PerformanceDuring the year, WCL achieved the highest turnover of Rs 8357.48 crores with a pretax profitof Rs 440.50 crores, which is of course less than the last years corresponding figure of Rs1067.98 crores. I wish to add here that, we had to provide for Rs 854.30 crores on accountwage increase and actuarial liability arising out of the National Coal Wage Agreement IX effectivefrom 1st July11. Adding the figures, we may appreciate that our actual profit had been Rs
1294.80 crores. Net worth of the company has risen from a level of Rs 3236.59 crores lastyear to Rs 3315.22 crores on 31-03-12.
Your Directors have recommended a dividend payment of Rs 184.04crores @ 61.95% on thePaid up Capital of the company i.e. Rs 297.10 crores.
I feel pleasure to share with you that our assessment against MoU parameters 2011-12 byDepartment of Public Enterprises is expected to be Excellent (Provisional) on the strength ofour overall performance of the company.
Creation of AssetsCompany has Invested Rs 275.72 crores during FY 2011-12 on development of new minesand infrastructure along with replacement of old assests, entirely from internal resources. HEMMworth Rs 161.85 crores were purchased during the year, whereas the equipments forunderground mining costing Rs 23.05 crores were added in the fleet.
Planning PreparednessOut of 29 projects of XIth plan with a sanctioned capacity of 38.75 MTA and capital of Rs5357.52 cr identified to sustain the production, Project Reports for all the projects have beenformulated and 6 projects approved by WCL Board are at different stages of implementation,while 21 projects have been approved subject to finalization of cost plus agreements withprospective consumer, accorded 1st stage approval and 2 projects are being re-casted.
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ANNUAL REPORT 2011-12
Restoration of degraded land through afforestation and green belt development is another areawhere WCL has unwavering commitment and achievement. Till date, WCL has planted 178.88lakh trees covering an area of 6469 ha. in its command area in states of Maharashtra & MadhyaPradesh. During 2011-12, a total of 2.26 lakh saplings were planted in the mining and adjoiningareas through expert forest agencies namely FDCM and MPRVVN and also by distribution ofsaplings to employees and villagers.
The progress of afforestation in the command areas of WCL are monitored regularly thro satelliteimagery which indicates that there is an increase in afforestation/ plantation in mining projects.The 10 major OCPs which are being monitored every year through Satellite Imagery Surveyhave proved this fact beyond doubt. After analyzing the Satellite data of the year 2010 vs 2011,it has transpired that the plantation works, carried out on back filled area, external OB Dumpsas well as on plain land in all these mines of WCL, has increased from 25.35 sq.km to 26.82 sq.km. (an increase 1.47 sq km).
In recent past, statutory stipulations such as mandatory public hearing even for expansionprojects, extending moratorium on grant of EC under CEPI in Chandrapur industrial cluster,mandatory Stage-I forest clearance to get EC, implementation of Mechanically closed trucksfor coal transportation imposed by Maharashtra State Pollution Control Board etc. are some ofthe nagging problems that are being faced by WCL. I have no doubt that WCL team will rise tothe occasion and meet these challenges in coming days, by effective management of naturalresources so that the CIL/WCLs policy of sustainable development i.e. achieving the coalproduction target with minimal degradation of environment, is reached.
Acquisition of Land
Your company has made a remarkable achievement in acquisition of land for mining and alliedactivities. It has acquired all time high 2240.194 Ha land which is 9.24% growth over last year.Similarly, we have taken possession of 332.387 Ha of Land which is 1.64% growth over lastyear. Moreover with enhancement of Monetary compensation in lieu of employment to Rs500000/- per acre and liberalizing the land compensation rates through Revised R&R Policy ofCIL, there has been a positive shift in the attitude of PAPs and coupled with our ConfidenceBuilding Measures by CSR initiatives they have been appreciating and are inclined to join us bygiving their land. It is a perfect Win- Win situation.
Corporate Social ResponsibilityThe CSR Policy of the company broadly covers education, water supply, health care,
environment management, infrastructure support, employment generation, encouraging sportsetc. The CSR initiatives are village specific, need based and in sync with local development toensure that they are socially acceptable to local people. WCL has provided @Rs 5/- per tonnesas CSR budget. It has spent Rs 7.65 crore during FY 2011-12 under CSR , up by 8.82% overlast years Rs 7.03 crores.
During 2011-12, WCL has conducted 171 medical camps in and around its command area,organized 25 coaching camps for promotion of sports, organized 12 de-addiction camps toimprove socio economic fabric and commissioned 67 tube wells under CSR initiatives apartfrom providing 8 classrooms in different schools and providing 2 ambulances for the programmeMedicare at your Door Step.
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SafetyHuman resources are the biggest asset for us hence their safety is of paramount importance tous. Thrust is being given to enhance safety awareness at the grass root level by inculcatingparticipative management at the unit level by way of safety committee meetings and specialsafety awareness drive on various subjects like green roof support, safe practices in haulage,belt conveyors, face equipments, explosives and blasting etc. Besides, tripartite safety committeemeetings at area level with active participation of DGMS officials are also being held. Trainingand retraining of our workforce to follow safe practices at the work place has also been ourthrust are in FY 2011-12.
During the calendar year 2011, there had been a reduction in fatalities from 14 during the year2010 to 10, along with corresponding reduction of serious injuries from 46 to 37.
Corporate Governance
WCL has complied with conditions (except a few which are under progress) of CorporateGovernance as stipulated in the Guidelines on Corporate Governance issued by the Departmentof Public Enterprises, Government of India. As required under the said guidelines, a separatesection on corporate governance has been added to the Directors Report and a certificateregarding compliance of conditions of Corporate Governance obtained from the Practicingcompany
Last but not the LeastOur team which has performed consistently in past, is geared up to leverage its proven strengthsand the capability to deliver. We are committed to achieve our growth while ensuring highestpriority to the corporate governance, environment and corporate social responsibility.
We firmly believe that we will continue to maximize the returns of WCLs key stake holders- itsshareholders, customers, employees and local populace.
I call upon all of WCL family to Arise, Aspire, Perspire and Move towards the goal of 45.69million tonnes of coal production during FY 2012-13. Thus we will be contributing to the largergoal that is progress of the nation.
With Best Wishes,
(D. C. Garg)
Chairman cum MD
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WESTERN COALFIELDS LIMITED
WESTERN COALFIELDS LIMITED
BALANCE SHEET AS AT 31st MARCH
PARTICULARS 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
SOURCE OF FUND
SHARE CAPITAL 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10
RESERVES & SURPLUS 437.99 522.50 604.92 788.67 1049.59 1343.88 1680.34 2089.39 984.68 1052.52
PROFIT & LOSS A/C 742.45 926.38 1061.78 1429.36 1673.10 1794.26 1843.91 1932.82 1988.80 2013.77
LOAN FUND 549.78 363.80 148.02 135.49 122.97 112.98 133.60 109.52 102.56 101.97
DEFERRED TAX LIABILITIES 125.98 105.07 63.10 32.65 29.18 15.22 20.48 0.00 0.00
LONG TERM LIABILITIES & 0.00 0.00 0.00 0.00 0.00 0.28 0.00 2155.89 3273.04
PROVISIONS
T O T A L 2027.32 2235.76 2216.89 2713.72 3175.41 3577.40 3970.45 4449.31 5529.03 6738.40APPLICATION
FIXED ASSETS :
Gross Block 3145.82 3218.69 3365.83 3480.99 3668.24 3782.45 3986.99 4137.27 4294.58 4490.39
Less: Depreciat ion 1688.52 1814.25 1956.82 2072.22 2251.34 2398.13 2539.15 2651.49 2769.51 2884.24
Less: Impairment of Assets 71.37 81.93 80.63 85.75 89.39 93.83 100.70 104.01
Net Block 1457.30 1404.44 1337.64 1326.84 1336.27 1298.57 1358.45 1391.95 1424.37 1502.14
Capital Work in Progress 181.06 182.96 183.06 204.41 174.85 187.65 217.31 252.63 274.53 269.50
Discarded/Surveyed off Assets 4.64 6.19 8.02 10.49 11.29 11.36 13.23 16.09 17.31 19.50
Investments 320.90 320.90 320.90 288.81 272.77 240.68 192.54 128.36 96.27
Deferred Tax Assets 154.79 249.70 177.42 151.07 140.25 315.83 345.33 340.98 350.13 455.72
Long Term Loans & Advances 58.21 61.99
CURRENT ASSETS,LOANS &
ADVANCES :
Inventories 106.19 151.59 210.15 287.77 363.97 301.43 288.46 294.17 437.09 570.60
Sundry Debtors 471.93 319.59 389.95 235.06 238.14 126.02 191.52 109.18 25.20 13.97
Cash & Bank Balance 291.67 340.22 761.60 1513.75 1296.62 2262.20 3033.11 3919.96 4063.78 5503.40
Loans & Advances 671.87 988.67 1236.50 1518.80 1983.95 2490.98 2868.96 1784.73 704.54 860.70
Current Investment 32.09 32.09
Other Current Assets 351.20 432.06
SUB TOTAL 1541.66 1800.07 2598.20 3555.38 3882.68 5180.63 6382.05 6108.04 5613.90 7412.82
LESS:CURRENT LIABILITIES 1381.90 1728.50 2408.35 2855.37 2658.74 3689.41 4586.60 3852.92 2337.78 3079.54
& PROVISIONS
NET CURRENT ASSETS 159.76 71.57 189.85 700.01 1223.94 1491.22 1795.45 2255.12 3276.12 4333.28
MISC.EXPENDITURE 69.77 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
T O T A L 2027.32 2235.76 2216.89 2713.72 3175.41 3577.40 3970.45 4449.31 5529.03 6738.40
(Rs. In Crores)
Note : The financial statements for the current year are prepared on the basis of Revised Schedule VI ofthe Companies Act, 1956, as notified by Ministry of Corporate Afairs. Accordingly, previsous year(2010-11) figures are re-grouped in order to make comparable with current year figures. Figures prior to2010-11 are as per pre-revised schedule VI. setting one condensed
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ANNUAL REPORT 2011-12
WESTERN COALFIELDS LIMITEDCAPITAL EMPLOYED, NET WORTH AND RATIOS
(Rs. In Crores)
* NET PROFIT BEFORE TAX & AFTER PPA INCLUDES EARLIER YEARS PROVISION WRITTEN BACK.
PARTICULARS 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
CAPITAL EMPLOYED 1810.16 1527.36 1530.33 2028.44 2561.71 2846.06 3153.90 3647.08 4686.82 5819.36
NET WORTH 1239.67 1562.62 1788.04 2304.21 2650.31 2814.14 2914.11 3099.86 3236.56 3315.22
PAID UP CAPITAL 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10
NET WORTH PER RUPEE OF
PAID UP CAPITAL(RUPEE) 4.17 5.26 6.02 7.76 8.92 9.47 9.81 10.43 10.89 11.16
LOAN FROM CIL AND OTHERS 549.77 363.80 148.02 135.49 122.97 112.98 133.60 109.52 102.56 101.97
DEBT/EQUITY RATIO 0.44:1 0.23:1 0.08:1 0.06:1 0.05:1 0.04:1 0.05:1 0.04:1 0.03:1 0.03:1
NET PROFIT(Rs.Cr) 478.63 741.67 917.09 1501.93 1104.90 920.07 511.09 941.84 1060.14 431.73
(BEFORE PPA, & TAX)
NET PROFIT FOR THE 26.44 48.56 59.93 74.04 43.13 32.33 16.21 25.82 25.87 7.42
YEAR AS % TO CAPITAL EMPLOYED
NET PROFIT(Rs.Cr) 472.53 743.60 935.30 1446.96 1054.44 930.22 516.12 931.03 1067.97 440.50
(BEFORE TAX BUT AFTER PPA.)
NET PROFIT AFTER PPA AS % TO 26.10 48.69 61.12 71.33 41.16 32.68 16.36 25.53 22.06 7.57
CAPITAL EMPLOYED
DEBTORS AS % TO GROSS SALES 26.06 21.40 15.74 8.44 8.01 5.73 5.59 3.90 2.08 1.59
INVENTORY OF STORES & SPARES 1.33 1.56 1.25 1.04 1.05 1.09 1.05 1.06 1.10 1.09
IN NO.OF MONTHS CONSUMPTION.
VALUE ADDED (Rs.Cr.) 2432.06 2570.54 3085.80 3485.32 3414.45 3789.27 4426.82 4667.86 4895.92 5678.68
MANPOWER
VALUE ADDED /EMPLOYEE (RS. 000) 335.45 364.54 447.62 517.30 520.50 590.60 708.38 766.86 829.21 996.45
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WESTERN COALFIELDS LIMITED
(Rs. In Crores)
WESTERN COALFIELDS LIMITEDPROFIT & LOSS ACCOUNT
(EXCLUDING CONTRA ITEMS)
PARTICULARS 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
SALES 3199.76 3359.74 3941.35 4382.35 4392.96 4909.18 5636.01 5836.63 5994.27 6750.01
(Net of Statutory Levies)
OTHER INCOME 270.61 440.08 287.38 328.83 387.13 507.63 558.94 560.35 464.78 680.69
ACCRETION/ -10.41 23.87 62.52 83.87 73.07 -54.08 -34.22 13.18 129.60 128.96
DECRETION IN STOCK
3459.96 3823.69 4291.25 4795.05 4853.16 5362.73 6160.73 6410.16 6588.65 7559.66
EMPLOYEES 1199.94 1358.21 1646.44 1420.21 1497.59 1910.02 2967.70 2595.21 2780.58 3991.41
REMUNERATION & BENEFITS
CONSUMPTION OF 530.26 564.80 667.85 724.64 750.69 762.88 872.72 856.32 863.43 920.26
STORES & SPARES
POWER & FUEL 184.15 189.21 186.41 184.68 221.56 225.63 229.09 242.85 259.20 281.94
REPAIRS 82.92 109.14 98.32 110.70 111.52 117.40 126.62 122.86 68.46 64.09
(PURCHASED)
CONTRACTUAL 231.57 244.85 331.40 383.14 396.10 491.84 536.10 570.98 467.51 501.01
EXPENSES
SOCIAL OVERHEAD 154.34 180.69 189.83 211.78 223.81 228.14 239.99 269.17 223.71 253.80
DEPRECIATION 173.31 182.92 170.91 164.50 178.28 185.65 176.44 171.41 188.16 195.65
INTEREST 46.72 25.22 8.29 4.31 5.55 4.33 3.97 4.85 3.30 3.20
PROVISIONS 255.94 57.93 -45.25 -133.00 -19.07 45.68 -25.01 -17.57 110.25 220.62
OTHER EXP :
OBR ADJUSTMENT -16.02 15.26 -7.60 35.16 158.57 262.77 280.37 305.61 314.56 458.95
OTHERS 138.20 153.79 127.56 187.00 223.66 208.32 241.65 346.63 249.35 237.00
2981.33 3082.02 3374.16 3293.12 3748.26 4442.66 5649.64 5468.32 5528.51 7127.93
PROFIT/LOSS FOR THE YEAR 478.63 741.67 917.09 1501.93 1104.90 920.07 511.09 941.84 1060.14 431.73
PRIOR PERIOD ADJUSTMENTS -6.10 1.93 18.21 -54.97 -50.46 10.15 5.03 -10.81 7.84 8.77
PROFIT AFTER PRIOR 472.53 743.60 935.30 1446.96 1054.44 930.22 516.12 931.03 1067.98 440.50
PERIOD ADJUSTEMENT
PROVISION FOR TAXATION 250.20 250.88 283.75 472.03 391.70 487.96 224.15 275.81 559.28 239.37
PROVISION FOR DEFERED TAX -57.45 31.07 51.36 -15.61 -19.64 -169.52 -43.46 9.61 -29.62 -105.59(ASSETS/LIABILITIES)
PROFIT AFTER TAX 279.78 461.65 600.19 990.54 682.38 611.78 335.43 645.61 538.32 306.72
NOTE : 1. FIGURES IN THIS STATEMENT ARE REARRANGED FROM THE PRINTED ACCOUNTS EXCLUDING CONTRA ITEMS.
2. The financial statements for the current year are prepared on the basis of Revised Schedule VI of the Companies Act, 1956, asnotified by Ministry of Corporate Afairs. Accordingly,previsous year (2010-11) figures are re-grouped in order to make comparablewith current year figures. Figures prior to 2010-11 are as per pre-revised schedule VI.
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ANNUAL REPORT 2011-12
MAP
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WESTERN COALFIELDS LIMITED
To
The Members/Shareholders,Western Coalfields Limited.
Your Directors have pleasure in
presenting the 37th Annual Report of Western
Coalfields Limited and Audited Accounts for
the year ended 31st March, 2012 together with
the report of the Statutory Auditors and report
and review of the Comptroller and Auditor
General of India thereon.
2. LOCATION OF UNITS :The mines of your Company are
located in Maharashtra and South-WestMadhya Pradesh. For Effective
administrative control and operations, the
mines have been grouped in 10 (Ten) Areas
as follows :
3. PERFORMANCE :
During the year 2011-12 your
Company has achieved coal production of
43.110 Million Tonnes against the AAP targetof 45.500 million tonnes which is 2.390 Million
tonnes less than the AAP target and 0.544
million tonnes less than last year actual
progressive of 43.654 million tonnes for the
same period. Productivity of the Company
has gone up upto 2.70 tonnes during the year
2011-12 which is more than the target of 2.54
tonnes and also more than actual progressive
last year of 2.65 tonnes for the same period.
DIRECTORS REPORT
Area District State Mines as on 1.4.2012
Chandrapur, Ballarpur,Majri, Wani and Wani North
Pench and Kanhan
Pathakhera
Total Numbers of Mines- WCL 82
Chandrapur& Yavatmal
Chhindwara
Betul
Maharashtra
Madhya
Pradesh
Madhya
Pradesh
Under-
groundOpencast Mixed
Nagpur and Umrer Nagpur Maharashtra 5
26
7
-
38
-
-
2
-
2
10
12
13
7
42
Overburden removal during the year
2011-12 was 122.488 million cubic meters
against the AAP target of 127.000 million cubic
meters which is 4.512 million cubic meters less
than the target and 6.664 million cubic meters
more than last year actual progressive of
115.824 cubic meters for the same period.
Notably, the Financial Year 2011-12 hadbeen a year full of challenges, whereas the
concerted efforts by the team of WCL could
lead to achievement of plus 94% performance.
Non-achievement of coal and OB target has
been mainly on account of non-revival of Umrer
OC, delay in physical possession of land in
opencast mines, adverse geo-mining conditions
prevailing in underground mines, incidences of
fire in underground districts and closure of PK-
II Under ground mine due to exhaustion ofreserves.
Coal Off-take during 2011-12 was
41.967 million tonnes which is 3.533 million
tonnes less than the targetted 45.500 million
tonnes that is 92.2% achievement and 0.593
million tonnes less than last years actual
42.560 million tonnes due to abrupt stoppage
of despatch of coal by Maharashtra Power
Generation Co. Limited (MAHAGENCO)
through Road/Rail mode w.e.f. 16/08/2011 andnon lifting of coal during monsoon by Himachal
Pradesh Power Generation Co. Limited
(HPPGCL) and Uttar Pradesh Rajya Vidyut
Utpadan Nigam Ltd.(UPRVUNL).
3.1 Performance of Production (Coal and
Washed Coal), Productivity, Coal Sales
and Off-take against Annual Action Plan
(AAP) targets and as compared to last
years is given in the following table :
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ANNUAL REPORT 2011-12
3.2 Coal Production and OB Removalfrom Opencast Mines :
Apropos supply of Steel Plants, the produc-
tion of Coking Coal from Tandsi UG, which
is major producer of Coking Coal in WCL, isless as the continuous Miner is working in
geologically distrubed zone where extensive
support is required.
PARAMETERS 2011-12
%Achie-vement
overTarget
i
ii
Coal production
( Million Tonnes)
Overburden
Removal
( Mill. Cub. Mtrs.)
36.200
127.000
2010-11Actual
34.720
122.488
95.9
96.4
34.950
115.824
TargetAAP
Actual
Sl.
no.
% Growthover last
year
-0.7
5.8
Shovel DumperA Shovel-Dumper in operation in one of the opencast Mine of WCL.
SL
NO
i)
ii)
iii)
iv)
v)
vi)
Target
AAP
45.500
2.54
45.500
45.399
0.2700
0.2700
Coal Production(million tonnes)
Overall Productivity(OMS) (in tonnes)
Total Off-take(million tonnes)
Despatches (Sales)(million tonnes)
Washed CoalProduction
(million tonnes)
Despatch toSteel Plants
(million tonnes)
2011-12Actual
43.654
2.65
42.560
42.536
0.1913
0.1930
Actual
43.110
2.70
41.967
41.932
0.1365
0.1361
%
Achieve-ment
overTarget
94.7
106.3
92.2
92.4
50.6
50.4
%GrowthOver
last year
-1.2
1.9
-1.4
-1.4
-28.6
-29.5
2011-12
PARAMETERS
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WESTERN COALFIELDS LIMITED
3.3 Mechanised Underground Coal
Production
The Mechanised Coal Production fromUnderground mines during the year 2011-12was 8.058 million tonnes which is 0.170 milliontonnes less than last years actual 8.228million tonnes. Production from ContinuousMiner Technology, which is in operation atTandsi and Kumberkhani Mines, was 0.150million tonnes which is 0.057 million tonnesless than last years actual 0.207 milliontonnes. Shifting of Continuous Miner toalternative dip side section due to
encountering of un-foreseen fault in levelsection, adverse geo-mining conditions atTandsi UG and shifting of Continuous Minerto next panel at Kumbharkhani UG affected
the production of Continuous Miners.
3.4 Coal Stock :
Coal Stock at the end of fiscal 2011-12
increased by 1.143 million tonnes and stood
at 5.093 million tonnes as compared to last
years 3.950 million tonnes, which has
accumulated due to non-lifting of 4.036 M.T.coal by Maharashtra State Power Generation
Co. Limited by road/rail mode w.e.f.16-8-2011.
4. SAFETY :
4.1 During the calender year 2011, there
had been a reduction in fatalities from
14 to 10 and a reduction of serious
injuries from 46 to 37 vis a vis 2010.
Skilled human resource are the
biggest asset for our company, hencetheir safety is of paramount
importance to us. Thrust is being
given in our company to increase
safety awareness at the grass-root
level by inculcating participative
management at the unit level by way
of safety committee meetings being
Load Haul Dump - A Coal Mining Machine in operation in one of the underground mine WCL
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ANNUAL REPORT 2011-12
(f) Annual Safety Fortnight was
conducted in all the mines of WCL
from 30.01.2012 to11.02.20124.2.2 Special stress has been given on
green roof support& qualitative face
support by roof bolting. Resin
capsules has also been introduced in
many underground mines specially in
watery strata.
4.2.3 Pit top safety talks are regularly
given in all the mines and the same
are being monitored during ISO
inspections.
4.2.4 Pit safety committeesof all mines
have been re-activated and are
being attended by Area level and Hq.
level officers. The implementation of
the recommendations of these
committees are implemented and
monitored regularly.
4.2.5 Back shift inspectionsby senior
officers of mine and area have beenintensified.
4.2.6 Officers who have been trained by
SIMTARS, Australia were engaged
for imparting training and
upgrading the knowledge of
executives and supervisors in
prevention of fire and evaluation of
risk management.
4.2.7 Area level committees have beenconstituted to conduct safety audit
of the minesto evaluate the safety
status of the mines.
4.2.8 Meetingswith Area Safety Officers
are conducted to evaluate the
implementation status of various
safety measures in the mines. The
mine inspection reports of
Workmen Inspectors (in form U)
conducted every month. Besides,
tripartite safety committee meetings
at Area level with active participationof DGMS officials are also being
held. Training and re-training of our
workforce to follow safe practices at
the work place has also been our
thrust area in 2011-12.
4.2 S t e ps T a k en d u r i ng 2 0 1 1- 1 2
to improve safety and reduce
accidents :
4.2.1(a) A Special safety awareness
drive on Green roof side and
support, safe practices in
haulage, belt conveyor, SDL/
LHD operations and face
equipment was conducted in all
underground mines of WCL
from 25.04.2011 to 07.05.2011.
(b) A Special Safety Awareness
Drive on Ventilation, Dust
Suppression, EmergencyOrganisation in association with
Rescue Department was
observed in UG mines from
25.07.2011 to 06.08.2011
(c) A Special Safety Awareness
Drive on Maintenance of Statutory
Records & Plans was conducted
in UG and OC Mines from
19.09.2011 to 30.09.2011.
(d) A special safety drive on
contractors workmen &
contractual works in OC mines
was carried out from 03.11.2011 to
12.11.2011
(e) VTC annual inspection in
association with HRD department
was organised from16.01.2012 to
29.01.2012.
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WESTERN COALFIELDS LIMITED
and other officials are regularly
monitored and rectification of
deficiencies pointed out areensured.
4.2.9 High powered multi-disciplinary
task force consisting of Steering
Committee Members, CGM(S&C)
and other senior officials of Hq.
randomly visit mines to evaluate
safety standards.
4.2.10 A high level committee has
inspected all the mines of WCL to
ascertain the preparedness formonsoon against water danger.
4.3 Statistics of Fatal Accidents :
4.4 Statistics of Injury frequency :
4.5 Technical Contribution in 2011-12 :
i) Vetting of operational plans of allmines by ISO at Hq.
ii) RMR study for each development
district for support design.iii) Accident enquiry in case of fatal &serious accidents and enquiry intomajor dangerous occurrences /incidents .
iv) Analysis of all accidents and incidentsso as to decide preventive safepractices.
4.6 Special Achievements in 2011-12 :
i) Fol lowing scien ti fi c s tudies have
been initiated by Scientific / Educational
institutes during 11-12.
a)Scientific Study of the OB DumpStability at Gondegoan OC beingdone by BIT Meshra;
b)Scientific Study of the OB DumpStability of Old OB dumps at Ukni OC being done by BIT Meshra;
c) Scientific Study for Supervision ofMining Operations of WesternQuarry of Umrer OC, Umrer Area being done by BIT Meshra;
d)Scientific Study to suggest suitablemethod for extraction/liquidation of
coal in Kumbharkhani UG of WaniNorth Area being done by CIMFR,Dhanbad;
e)Scientific study to asses the impactof depillaring at Saoner Mine 1,Nagpur Area being done by NIRM,KGF and
f) Scientific study for design of Mining &support design for thick seam 1 (a +b)at Mathani UG mine, Pench Area being done by NIRM, KGF
ii) To eliminate manual drilling, Mechanisedroof bolting has been introduced bydeployment of 31 departmental UDMs,1 contractual quard bolter, 2 convertedUDMs, 27 Hydraulic roof boltingmachines, 3 pneumatic roof boltingmachines and 41 Kargil type and otherroof bolting machines.
iii) To eliminate long and arduous travel,four Man Riding Systems are being used
(one each) in Tandsi, Mohan/MouriIncline, Saoner-1 and Shobhapur (1stsystem). Further, installation andcommissioning of 2 chair lift systems and2 rail car systems in four mines of WCL,i.e, Tawa-1, BC 3&4, Shobhapur (2nd
system) and Kumbharkhani mines is inprocess. In addition to the above, onesystem which was procured for Sarnimine is being shifted to Chattarpur-1mine and one system is under
procurement for Saoner mine no. 2.
Particulars
No. of fatal accidents
Persons involved
Rate per million tonne output
Rate per 3 lakhs manshift
2011(Calendar year)
2010(Calendar year)
9
10
0.23
0.19
11
14
0.32
0.26
2011
(Calendar year)
13 7
3.16
2.55
Particulars
Injury frequency
Injury frequency Rate per
million tonne output
Injury frequency Rate per 3
lakhs manshift
2010*
(Calendar year)
18 6
4.24
3.41
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ANNUAL REPORT 2011-12
4.7 Utilisation of Safety Budget 2011 12 :
5.0 RESCUE :
5.1 MAJOR ACHIEVEMENTS
5.1.1GETTING ISO 9001:2008
CERTIFICATION :
Your Company added in its cap the
prestigious ISO 9001:2008 Certification
when Mines Rescue Station, Nagpur,
the first Rescue Organization in India
amongst all Coal and Metal Companies,
obtained this certification.
5.2 Prompt Service in Emergency &
Reopening
5.2.1During 2011-12, two Spontaneous
Heating and five Reopening operations
have been dealt successfully. The
details are as under.
5.3 EXPANDING EXPERTISE TOCALIBRATE GAS DETECTORS:
5.3.1The importance of gas detectors in minesneed no explanation. Thoughmaintenance and calibration of gasdetectors are not in the ambit of our corecompetence, two officers were trainedto calibrate Drager make and Oldhammake gas detectors.
This venture will result in considerable
positive financial impact as well as
Head
Budget
Expenditure
Revenue
Rs. 8000.00 lakhs
Rs. 8050.00 lakhs
Capital
Rs. 728.00 lakhs
Rs. 220.92 lakhs
Sl.No.01
02
03
04
05
06
07
26.04.11
28.05.11
28.09.11
26.11.11
19.12.11
25.01.12
14.03.12
28.04.11
29.05.11
29.09.11
26.01.12
Mahakali/ChandrapurMathani/
PenchBC 3&4/Ballarpur
DRC/
ChandrapurSaoner-2/NagpurMahakali/Chandrapur
Silewara/Nagpur
Reopening of sealed off area toascertain stability of workingReopening of sealing of 10LN
section in 1 (B+C) seamReopening of sealed off area toascertain stability of working(panel C&H)Dealing of spontaneous heating
in sealed off area near main dip.Reopening of depillaring panelE-1(B) of seam VReopening and resealing ofPanel-M
Dealing of Spontaneous heatingin Section-C Panel (Seam IV-Bottom West)
DateColliery/
AreaReasons
Efforts to save time and energy - Chair Lift Manriding System
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WESTERN COALFIELDS LIMITED
improving operational efficiency. The
move is having a direct yearly financial
saving of around Rs.38 lakh. Further theacquired in-house expertise in these gas
detectors will increase the reliability as
well as availability of the detectors.
5.4 BECOMING A REVENUE
GENERATING ORGANIZATION:
Mines Rescue Station, Nagpur imparted
Rescue training to employees of M/S.
Sunflag Iron & Steel Company as well
as M/S. Manganese Ore India Limited
(MOIL) and generated revenue to the
tune of Rs. 08,86,256/- ( Rs. Eight Lakhs
Eighty Six Thousand Two Hundred Fifty Six)
during the financial year 2011-12.
5.5 COMPETITION/DRIVES IN RESCUE
SERVICES :
5.5.1 Inter Rescue Room Competition was
held in the month of December- 2011 .
RRRT, Parasia bagged the First Prize
under RRRT group and Rescue Room
Majri was adjudged First in Rescue
Room group.
5.5.2 Zonal /Inter Area Rescue Competition
was held at RRRT , Pathakhera On Dt:
09.02.2012. Overall First Prize was
bagged by Pathakhera Area, Overall
Second - Nagpur Area, Overall Third-
Chandrapur Area, Best Captain-Shri
Dilip Tripathi, Pathakhera Area &
Second best Captain Shri D.S.Satyarthi, Ballarpur Area.
5.5.3 All India Mines Rescue Competition
was held at RRRT, Talcher (MCL) from
24th to 26th February2012. In this
competition WCL- B Team has been
adjudged as Overall Third and B-Team
Captain Shri R.K. Suman,
Sr.Officer(Mining),Pench Area has
been awarded as Second Best Captain
in addition to other Prizes.
6. AVAILABILITY OF POWER AND
POWER & FUEL CONSUMPTION :
6.1 Availability of Power :
6.2 Power and fuel consumption :
6.2.1 Electricity :
7. POPULATION ANDPERFORMANCE OF EQUIPMENT :
7.1 Population of Equipment :
7.2 Performance of HEMMs :
7.2.1Availability of HEMMs :
i) Dragline & Dumper has achieved
CMPDIL-Norms for availability.
ii) Availability of Dragline,Shovel &
Dumper is more than CIL average.
7.2.2 Utilization of HEMMs :
i) Utilization of Dragline is more than
CMPDIL - Norms.
ii) Utilization of all the HEMMs in WCL
is more than CIL average.
7.3 Special Achievements :
7.3.1WCL is ranked as 1st in utilization ofDumper & Dozer, while 2nd in
Dragline & Shovel and 3rd in Drill
among all subsidiaries of CIL.
7.3.2 Equipment under breakdown more than
3 Months (9.5 % of total population of
Area
Average Contract Demand in MVA
Average Availed Demand in MVA
2011-12
136.200
123.590
2010-11
135.997
123.078
% Varitation
0.15
0.42
Purchased
Units in MKWH
Rate / unit
2011-12
612.93
6.49
2010-11
659.63
5.47
S.No. Equipment
1 Dragline
2 E.R. Shovel
3 Hydraulic E xcavator
4 Dumper
5 Dozer
6 Drill
TOTAL
Population As on 31st March
2012 2011
4
42
10 4
56 8
16 5
10 4
98 7
4
40
11 2
57 4
17 3
10 6
1009
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ANNUAL REPORT 2011-12
performance of the Company for the year2011-12 vis-a-vis 2010-11 is furnishedbelow : (Rs. in Crores)
equipment as on 31st March 12) is the
2ndLOWEST amongst all subsidiaries
of CIL. Also, it is less than CIL average.
7.3.3 To increase the production and
productivity of the company, 73 new
equipment including 60 Dumpers and 8
Shovels (Electrical and Hydraulic) were
purchased against surveyed off during
the year.
7.3.4 System Capacity Utilization of Open
Cast Mines of WCL :
8. FINANCIAL PERFORMANCE :
The Company has earned a profit beforetax in the year 2011-12 Rs.441 Croresas against Rs.1068 Crores in theprevious year 2010-11. The financial
Year
2010-11
2011-12
Capacity
Utilization
97.13%
104.67%
Capacity in
Mill. Cu.m.
89.14
82.45
Remarks
Based on CMPDI capacity as on
1st April, 2010.
Based on CMPDI capacity as on
1st April, 2011.
A Dragline in operation in one of the Opencast Mine of WCL
Sl. Particulars Amount Amount
No
1 Profit before tax for the year 2010-11 1068
2 FACTORS CONTRIBUTING TO DECREASE IN
PROFIT
i. Normal increase in Salary & Wages due to 158
increment,DA etc
i i. Impact of NCWA-IX on Salary & Wages exc luding 402
terminal benefits
iii. Impact of Actuarial valuation of terminal benefits e.g.
Gratuity, Leave Encashment, Settling Allowance, etc.
( including NCWA-IX Rs.452 crores) 650iv Increase in OBR adjustment cost 144
v Increase in Mine closure cost 121
vi Increase in input cost ( Stores & Spares Rs.57 crores,
Power & Fuel Rs. 23 crores , Other Misc. & welfare
expenses etc. Rs.18 crores ) 98
vii Decrease in withdrawal of provision for bad & doubtful 29 1602
debts
3 FACTORS CONTRIBUTING TO INCREASE IN PROFIT
i Increase in e-auction revenue 586
ii Increase in sales due to price revision w.e.f. 27.02.2011 240
iii Increase in non-operating income 219
iv Impact of GCV pricing w.e.f. 01.01.2012 -70 975
Profit before tax for the year 2011-12 441
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WESTERN COALFIELDS LIMITED
8.2 The working results for the year ascompared to the previous year are givenbelow :- ( Rs. in Crores)
APPROPRIATION :(Rs. in Crores)
8.3 Dividend :
Directors are pleased to recommend a
final dividend of Rs.184.04 Crores
(previous year Rs.323.25 Crores ) @
61.95% ( previous year 108.80% ) on
the paid up Equity Shares Capital of the
Company . The total dividend per share
is @ Rs.619.45( previous year
Rs.1088.00 per share ) on 29,71,000
Equity Shares of the Company.
8.4 Source and Application of funds:(Rs. in Crores)
9 . CAPITAL STRUCTURE :
9.1 Share Capital :
The Authorised Share Capital of your
Company is Rs. 800 crores comprising
of 80 lakhs Equity Shares of Rs. 1000/-
each of which Rs. 297.10 crores is paid
up Equity Share Capital (29.71 lakhsEquity Shares of Rs.1000/- each) which
remained unchanged during the year.
9.2 Loan Fund :
Unsecured Loans : ( Rs. in lakhs )
NOTES :1) Loans from Coal India Ltd. amounting to
Rs.10197.13 lakhs comprises of :
a) Coal Sector Rehabilitation Projectfrom International Bank forReconstruction and Development(IBRD)- Rs.4736.51 lakhs.
b) Coal Sector Rehabilitation Projectfrom Japan Bank of International
Cooperation (JBIC) - Rs.5460.62 lakhs.2) The loan amount of Rs. 10197.13 lakhs
includes adjustment of upwardfluctuation of foreign exchange to thetune of Rs.1431.57 lakhs .
3) A charge has been created fo rRs.165.00 crores on current assets forsecuring working capital facility fromCILs Consortium Banks as per jointdeed of hypothecation dated 01.09.2008 .This loan has, however, not been availed
so far
8357.48 7073.44
: 1359.41 905.15
248.06 174.02
1607.47 1079.17
:
6119.43 4742.67
: / 195.65 188.16
434.93 1063.44
: 3.20 3.30
431.73 1060.14
8.77 7.84
/() : / /
440.50
105.59
29.62
239.37 559.28
: /
1988.80 1932.82
FINAL DIVIDEND
TAX ON DIVIDEND
REVIOUS YEARS EXCESS TAX
PROV. ON DIVIDEND WRITTEN BACKTRANSFER TO CSR RESERVE
TRANSFER TO GENERAL RESERVE
TRANSFER TO BALANCE SHEET
2011-12
184.0429.860.00
21.8346.01
2013.77
2010-11
323.2452.44-1.50
27.4080.75
1988.80
Name of Balance Addition Repayment Balance SecurityFinancial as on due to during the as on details
Institution 01.04.2011 exchange year 31.03.2012fluctuation
(1) (2) (3) (4) (5) (6)(2+3-4)
CIL World 10256.38 1431.57 1490.82 10197.13 Ref.noteBank Loan 1& 2TOTAL 1 02 56 .3 8 1 43 1. 57 1 49 0. 82 1 01 97 .1 3
1234
Addition to reserve & surplusAddition to cumulative depreciation & ImpairmentDecrease in investmentIncrease in Other Long Term Liabilities &
Provisions Total
2011-12
92.81118.04
32.091117.15
1360.09
SOURCES OF FUND
APPLICATION OF FUNDS :
12
345
Additions to fixed assets & capital WIPIncrease in working capital
Increase in long term Loans & AdvancesDecrease in Long Term BorrowingsIncrease in deferred tax assets Total
2011-12
192.97
1054.77
3.782.98
105.591360.09
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ANNUAL REPORT 2011-12
10. WORLDBANK ASSISTANCE :
Your Company has not received any
assistance directly from World Bank ,though assistance through Coal India
Limited , under ESMP and CSRP
Schemes to the extent of Rs. 3.20
crores (Previous year Rs. 3.29
crores) has been received during the
year 2011-12.
11. BORROWINGS FROM GOVT. OF
INDIA :
Your Company has not borrowed anyamount from the Government of India
directly during the year 2011-12.
12. CAPITAL EXPENDITURE :
During the year ending 31st March,
2012 an amount of Rs. 275.72 crores
(excluding capital commitment of Rs.
82.19 crores) was invested in Fixed
Assets and Capital Work-in-progress of
existing and upcoming Mines/Projects.
The capital expenditure for the previous
year was Rs. 239.74 crores.
13. ROYALTY, SALES TAX , ENTRY
TAX , EXCISE DUTY & OTHER
DUTIES ON COAL :
13.1 Royalty, Sales Tax , Entry Tax , Stowing
Excise Duty , Clean Energy Cess and
Central Excise Duty paid to Govt. during
the year are as given below :-
( Rs. in Crores )
13.2 By virtue of enactment of Cess & Other
Taxes on Minerals (Validation) Act, 1992,
the Company raiseds upplementary billson customers upto 04.04.1991. An
amount of Rs. 2.96 Crores ( Previous
year Rs. 2.96 Crores) has been shown
as liability for Cess on Royalty under the
headOther Current Liabilities. In view ofthe judgement of the Honble High Court,
Patna, and Ranchi Bench in Writ Petition
No.CWJC/1280 of 1992, the said Cess
is not payable. However, a Special
Leave Petition (SLP) is pending in
Honble SupremeCourt against it.
14. PLANNING :
14.1 The production achieved during the
year 2011-12 and targeted
production for the year 2012-13 is
given below :
15. DRILLING & EXPLORATION :
15.1 During the fiscal year 2011-12,exploratory dril l ing carried out byCMPDIL has been 13655 m in WCLcommand area. 187.876 Mte CoalReserves have been proved inPimpalgaon Deep, Wani Mander & Pauni
Amalgamated Block.The target for drilling in 2012-13 inWCL command area is 27000 m.
16. REPORT FORMULATION:
16.1 During the year the following GeologicalReports were prepared:
Particulars
1 Production (in million tonnes)
2 Productivi ty (OMS)
2012-13AAP Target
(As Per Annual
Action Plan)
45.00
2.58
2011-12
Target
45.50
2.54
Actual
Provisional
43.110
2.67
Royalty 99.07 526.30 625.37 96.02 499.82 595.84
Sales Tax:
State 50.13 222.07 272.20 38.84 148.19 187.03
Central 9.10 34.93 44.03 5.14 26.46 31.60
Entry Tax 10.23 0.00 10.23 10.61 0.00 10.61
S.E. Duty 6.49 35.69 42.18 6.99 36.39 43.38
Clean E nergy Cess 29.63 16 3.95 19 6.58 21.98 11 7.54 139.52
Central Excise Duty 53.87 288.23 342.10 5.18 23.10 28.28
Total 258.52 1271.17 11529.69 184.76 851.50 1036.36
2011-12 2010-11
M.P. Maharashtra Total M.P. Maharashtra Total
S. No Name of Geological Reports
1. Pimpalgaon
2. Wani Mander3 . Pauni Amalgamated Block
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16.2 During the year following 7 MiningProject Reports / Schemes wereformulated/recast :
16.3 PLANNING PREPAREDNESS:
16.3.1 24 new mining projects wereenvisaged in X Plan, mainly to sustainpresent level of production fromexisting and completed group of mines.The total capacity & productioncontribution of these X Plan projectsis given below:
* Waghoda UG (0.39 Mty) and JunadExtn. OC (0.60 Mty) have been shiftedto XI Plan, as CSA on Cost plus wasfinalised on 18.04.2007
** Saoner UG Mine No. III (with ContinuousMiner Technology), has been dropped,due to insufficient balance reserve fordeployment of Continuous Miner.
Out of 21 X Plan projects, 14 (09 ongoingand 5 completed) are contributingproduction. One Project viz Junakunada
OC has been commissioned in 2011-12and remaining 7 projects could not bestarted because physical possession ofland could not be obtained due toexpectations of very high landcompensation by land losers, which isbeyond norms.
16.3.2 Presently, there are 29 Projects of XIPlan with a sanctioned Capacity of 38.75MTY and Capital of Rs.5357.52 Cr.identified to sustain the present level ofproduction of your Company.
STATUS XI PLAN PROJECTS
17. XI PLAN PROJECTS APPROVEDDURING 2011 :
17.1
17.2 Out of 29 Projects of XI Plan , PRs forall 29 no. of Project Reports have beenformulated by CMPDIL & out of 29projects, 6 projects have been approvedby WCL Board and are at differentstages of implementation, while 21projects have been approved subject tofinalization of Cost Plus Agreement withprospective consumer/ accorded Ist
stage Approval. Remaining 2 Projectsare being recasted.
17.2.1 Status of 5 Projects of XI plan, thatwere placed before WCL Board in 2011-12 is as under :
PR of 3 projects, namely Shivani OC,Wanoja OC & Gandhigram UG wereaccorded I stage approval by WCLBoard for the purpose of environmentaland / forestry clearance.
PR of 2 projects namely Padmapur
Deep OC & New Majri Sector IA &
No. ofProjects
Capacity
(Mty.)Capital(Rs.Crs.)
21
2*1**24
16.64
0.99
17.63
11.2446
0.60
11.8446
980.83
110.49
1091.321
Projects already approved
Projects shifted to XI PlanProjects droppedTotal
Contribution ofprodn. in
2011-12 (M.Te.)
TYPE NO. Capacity Capital(Mty.) (Rs. in Crs.)
UG 08 05.55 1077.64OC 21 33.20 4279.87TOTAL 29 38.75 5357.52PROJECT APPROVEDUG 1 0.39 71.73OC 5 7.90 481.50TOTAL 6 8.29 553.23
PROJECTS REPORT APPROVEDSUBJECT TO CSAUG 6 3.96 522.28OC 5 7.80 956.93TOTAL 11 11.76 1479.20
S. Name of the Project Capacity CapitalNo. (Mty.) (Rs.crs.)
1 Shivani OC 1.25 348.892 Wanoja OC 0.50 140.463 Gandhigram UG 1.20 483.63
4 Padmapur Deep OC 2.50 66.28
5 New Majri Sector IA & Sector IIAExtn. OC 1.00 54.28Total 6.45 1093.54
PROJECT ACCORDED IstSTAGEAPPROVALOC 9 13.25 1945.00UG 1 1.20 483.30
TOTAL 10 14.45 2428.63
PROJECT REPORTS FORMULATEDAND UNDER RECAST/TO BE APPROVEDOC 2 4.25 896.45
S. Name of Project Capacity Captial
No. (Mty.) ( Crores)
1 Visapur OC 1.00 287.92
2 Ghuggus Expn. (Sector C) OC 0.80 307.03
3 Padmapur Extn. Deep OC 2.50 66.28
4 Urdhan Magrahi OC 2.00 373.23
5 Mungoli Nirguda Deep Extn. OC 3.00 197.60
6 Parsoda OC 0.80 361.38
7 Nandgaon Reorg. UG 0.36 115.30
Total 10.46 1708.74
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Sector IIA Extn. OC were accorded Istage approval by WCL Board for thepurpose of environmental clearance with
permission to enter in to cost plusagreement with prospective consumers.Project Reports of remaining 2projects,namely Chikalgaon ChinchalaAmalgamated OC & Bhatadih Expn IIOC are being recasted.
Out of 6 approved Ongoing projects ofXI Plan, 3 projects namely Scheme forExtension of Ghugus OC, Scheme forExtension of Gauri- I and Gauri -II(Merger) OC & Junad Extension OC arecontributing production. The productionfrom these mines during 2011-12 is 3.77M.Te.
17.2.2 Coal Supply Agreement (CSA) onnegotiated price to yield requisite IRR% for approval of Project:
Total 32Projects have been approved till2011-12 on cost plus basis, out of whichCoal Supply Agreements for 07 projectshave already been signed. 6 projects,namely, Sharda UG , Harradol UG,Dhankasa UG, Dhuptala (Sasti UG toOC ), New Majri UG to OC and DineshOC, have been offered to MAHAGENCO
and MPPGCL on cost plus basis for whichIn Principal consent has been received& Coal supply agreements are underfinalisation .
17.2.3 In order to open new mines, which arefinancially unviable at Notified Price, thefollowing alternatives are being explored :-
a)Efforts are being made to plan minesby total/partial hiring of equipment atenhanced capacity ensuring minimum12 % IRR at 85 % capacity utilisationas per Govt. of India guidelines.
b)To enter into Coal Supply Agreementwith the consumers who are agreeableto pay the price yielding 12 % IRR at85 % capacity.
c)As per MOC guidelines 13 nos. offinancially unviable projects wereplaced on the Website of WCL. andapplications were invited from LOAholders /FSA holders/ Linkage holdersboth from Cost Plus Category &Notified Price Category. Based on theapplications, allocation of Coal from 3Cost Plus Mines namely Urdhan OC,
Bellora Naigaon OC and Ukni Deep
OC, has been approved for M/sMAHAGENCO and M/S WardhaPower Ltd on Cost Plus Basis.
Applications received for remainingprojects are proposed for shifting fromnotified price to cost plus price.Accordingly a proposal has been sentto MOC on 17.03.2012.Coal supply agreements are to besigned shortly with MAHAGENCO forsupply of coal on Cost Plus Basis fromNew Majri UG to OC,Bellora NaigaonDeep OC& Ukni Deep OC.
18. PROJECTS / SCHEMES APPROVALAND COMPLETION:
18.1 Approval of Project Reports :
During the year 2011-12, following 10projects/Schemes have been approvedfor a total capacity of 10.13 MillionTonnes (1 underground project of 1.20million tonne capacity and 9 Opencastprojects/ Schemes of 8.93 million tonnescapacity) with a total Capital Investmentof 1699.50 crores:
18.2 Completion of Projects :
During the year 2011-12 Scheme for
Extension of Gauri- I and Gauri -II(Merger) OC has achieved the norms ofcompletion, and Completion Report isunder formulation.
18.3 Brief Status of Ongoing Projects :
At present there are 33 Ongoing Projects
(19 Projects having a Capital of more
S. Name of the Project Capacity CapitalNo. (Mty.) (Rs. crs.)1 Shivani OC 1.25 348.89
2 Wanoja OC 0.50 140.463 Gandhigram UG 1.20 483.634 Ghugus Expansion (Sector C) OC 0.80 307.03
5 Padmapur Deep OC 2.50 66.286 New Majri Sector IA & Sector IIA Extn. OC 1.00 54.287 Visapur OC 1.00 287.92
8 Scheme for Shivpuri OC 0.50 0.749 Scheme for Padmapur OC 1.00 9.9310 Scheme for InderUG to OC 0.38 0.34
Total 10.13 1699.50
S.No.
1
Capacity(Mty)
1.20
Capital(Rs. Crs.)
13.00
Name of Project
Scheme for Extension of Gauri- I
and Gauri - II (Merger) OC
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than Rs. 20 Cr. & 14 Projects having a
Capital of less than Rs. 20 Cr.) with a
Sanctioned Capacity of 32.081 MTY and
Capital of Rs. 1396.33 Cr. Out of 33
Projects, 22 are in operation and rest are
under implementation. Contribution of
18 Projects in Coal production for 2011-
12 was 16.7123 Mte as compared to
13.2751 Mte in 2010-11.
18.4 Acquisition of land
18.4.1 The Coal Bearing Areas (Acquisition
& Development) Act, 1957 is the main
stay for acquiring land by the Central
Government and vested with WCL for
coal mining activities. The
compensation is assessed by WCL as
per the provisions of the Act and
disbursed after getting sanction from
the Ministry of Coal, Government of
India. All facilities under the R&R
Policy of CIL are extended while
acquisition through CBA (A&D) Act,
1957. Under CBA Act, WCL has
acquired, since Nationalization16820.628 Ha. of land till March, 2012
out of which 9728.291 Ha. is under
possession.
18.4.1.1.The Land Acquisition Act has also
been invoked invariably for acquiring
land by our Company, which is done
through State Government on
requisition by Central Government. All
facilities under the R&R Policy of CIL
are extended under this acquisition also.18.4.1.2 WCL has acquired, since
nationalization, 4180.41 Ha. land till
March, 2012 out of which 3883.05 Ha.
is under possession.
18.4.1.3The provisions of Land Revenue Code
of Madhya Pradesh and Maharashtra
have also been referred for acquiring
land in cases where mining lease has
been obtained under Mineral
Concession Rules.
18.4.1.4 WCL has acquired and taken
possession of 1558.096 Ha. landunder
this provision.18.4.1.5This year your Company has made
a remarkable achievement in
acquisition of land for mining and allied
activities. The details of acquisition in
2011-12 is as under :-
18.4.2 Details of physical possession during2011-12 is as under :
18.4.2.1Summerised Status of land acquired
during the year 2011-12 is as under :-
Details Total land Land taken inacquired possession
Under LA Act, CBA Act, MPLR 2240.194 332.387and Direct Purchase.
Sl. Area Project Mode of TotalNo. acquisition (In Ha.)
1 Majri New Majri UG to OC CBA 431.2702 Chandrapur Bhatadi Expn. OC CBA 467.210
3 Wani North Kolarpimpri Extn. OC CBA 692.180
4 Wani North Junad Extn. OC CBA 132.7305 Pench Jamunia UG CBA 310.638
6 Nagpur Kamptee UG to OC LA 34.7507 Ballarpur Extension of Sasti OC LA 149.3008 Ballarpur Sasti OC Direct Purchase 5.860
9 Nagpur Gondegaon-GhatrohanaAmalgamated OC Direct Purchase 3.280
10 Kanhan Datla (Takiya Nallah) MPLRC 12.976
Phase - VIITotal : 2240.194
Sl. Area Project Mode T enancy Govt. Forest TotalNo.
1 Ballarpur Gouri Deep CBA 25.060 0.000 0.000 25.060
Extn. OC
2 Ballarpur Ballarpur LA 17.680 0.000 0.000 17.680Expn. OC
3 Ballarpur Sasti OC Direct 5.860 0.000 0.000 5.860
PurchaseMajri Navin CBA 88.090 11.290 0.000 99.380
Kunada OC
4 Majri Dhorwasa OC CBA 13.640 0.040 0.000 13.6805 Wani North Junad Extn. OC CBA 1.200 0.000 0.000 1.200
6 Pench Urdhan OC CBA 78.851 0.000 0.000 78.851
7 Kanhan Datla (Takiya MPLRC 12.976 0.000 0.000 12.976Nallah Ph - VII)
8 Nagpur Gondegaon Direct 3.280 0.000 0.000 3.280
Ghatrohana PurchaseAmalgamated OC
9 Nagpur Gondegaon CBA 52.550 0.000 0.000 52.55GhatrohanaAmalgamated OC
10 Nagpur Bhanegaon OCP CBA 21.870 0.000 0.000 21.870
T O T A L 321.057 11.33 0.000 332.387
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18.4.3 Forest land acquisitionForest land is diverted from StateGovernment as per the provisions of
Forest Conservation Act, 1980 afterapproval from MOEF, New Delhi. Thisyear 5.00 Ha. forest lease renewalobtained for Pathakhera Magazine forPathakhera Area.Details of forest land released during2011-12 is as under :-
2nd Stage clearance obtained forSurface Rights :
Pathakhera (PKD Magazine)-5.00 Ha.
(Renewal of lease)
1st Stage clearance obtained forSurface Rights :Shobhapur UG, Pathakhera Area -90.00 Ha.(Renewal of lease)Ghorawari OC, Kanhan Area-19.50 Ha.
18.4.4 Rehabilitation and Re-settlement :
07Families of Padmapur OCPChandrapur Area and 42 Families ofTakia Nallah (Ghorawari) of KanhanArea have been resettled by providingresettlement grant as opted by landoustees, within the provisions of R&RPolicy of CIL.
Total Project Affected Families Resettledin 2011-12 are 49 Nos.
Administrative approval for employmentduring 2011-12 :
18.4.5 Special Achievement:
There is 9.24% growth in land acquisitionover last year and highest everacquisition since last 21 years.
There is 1.64 % growth in possessionof land over last year and highest sincelast 6 years.
18.4.6 Constraints in acquisition of land
i) Demand of higher rate of land
compensation by land owners.ii) Demand for employment beyond
norms.
iii)Physical possession of land
becomes extremely difficult due to (I)
and (II) as above.
iv)Pursuance of State Authorities to
implement States R&R Policy instead
of CILs R&R Policy.
v)High expectations by Project
Displaced Families in resettlement
and rehabilitation beyond norm,
causing resettlement of village over
delayed.
To overcome the above constraints
New R&R Policy of CIL 2012 has been
approved by CIL Board in its 279 th
Meeting held on 12th& 13thMarch, 2012,
which is under the process of
implementation in WCL.
19. COAL MARKETING :
19.1 Raw Coal Offtake during the Fiscal
2011-12 was 41.967 Mill Te against the
TGT of 45.50 Mill Te i.e achiement of
92.2 % of Target. Offtake during the
fiscal 2010-11 was 42.560 Mill Te thus
growth during 2011-12 as against 10-
11 was (-) 1.4%
19.1.2 Modewise AAP TGT and despatches(Sales) by Rail & Road for 2010-11 &
2011-12 are furnished below :
DESPATCHES (Figs. in Mill.te.)
Year Employment/ Employment Monetary Total
monetary compensation provided compensationadministratively approved provided
by WCL Board
2011-12 04 Nos. 103 Nos. 10 Nos. 113 Nos.
YEAR AAP
TARET RAIL ROAD MGR ROPE TOTAL(By All & BELT DESPATCHESModes) SALE
2010-11 46.411 17.908 20.153 0.813 3.662 42.5362011-12 45.399 18.283 18.525 1.072 4.052 41.932
ACTUAL
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19.2 WAGON LOADING (IN BOXES/DAY)
The details of AAP TGT Loading on dailyAvg Basis & quantity despatched for the
year 2011-12 as compared to 10-11
Remarks :
1. Despatches by Rail during 2011-12 wasless against the Targetted Loading due
to less drawal of coal by Mahagenco &
non lifting of coal by Parichha & Panipatduring Rainy season, & failure oftransport Contractors in execution of
contracts .
2. PU have been given opportunity tosource additional requirement by liftingcoal on as is where is basis during thefiscal 2011-12. to build comfortablestocks. The quantity offered was 27.16lac Te & the lifting was 10.0 LTE till31.3.12.
3. Besides, offtake of coal to the tune of1.80 Mill Te from Umrer OC could not be
materialised on account of non-availibilityof coal from Umrer OC due to ForceMajeure conditions.
4. The actual offtake was less than MOUtarget mainly due to non lifting of 4.036Mill Te through Road cum rail mode sinceAug11 alongwith 1.072 Mill Te lessdrawal of coal through Captive Modes(Rope, MGR & Belt) by CSTPSMahagenco
19.3 Sales Realisation :
19.3.1 Sales realisation during 2011-12 was
Rs.8620.70 crore which represents a
growth of 17.86% over the previous year.
Sales realisation during 2010-11 was
Rs.7314.00 crore.
19.3.2 The total sales outstanding dues
which was Rs.147.32 crore as on
01.04.2011 has decreased by 19.18% to
the level of Rs.119.07 crore (includingdues for performance incentives of
Rs.52.87 crore) as on 31.03.2012. The
reduction in outstanding is mainly in
respect of the major Power Houses.
19.4 Sale of coal through e-Auction
19.4.1 Spot e-Auction :
Quantity offered under Spot e-Auction,
quantity allocated and additional
revenue generated based on the
YEAR TARGET ACTUAL % Achievment Rail Desp.
in MT
2010-11 916 765 84 17.908
2011-12 876 761 87 18.283
SECTOR
Power
includingIPP
Middling
and Slurry
Cement
Including
CPP
Steel
(Raw)
Sponge
Iron
CPP
OTHERS
TOTAL
C.C
Total
Offtake
AAP
Target
34.260
0.190
1.600
0.541
0.410
2.300
6.369
45.480
0.020
45.500
Actual
29.252
0.107
1.843
0.270
0.336
1.485
8.773
41.959
0.008
41.967
85.382
56.316
115.188
49.908
81.951
64.565
137.745
92.258
40.000
92.235
ACTUAL
2010-11
30.848
0.176
1.902
0.384
0.369
1.341
7.707
42.551
0.009
42.560
Growth
over
2010-11
-5.2
-39.2
-3.1
-29.7
-8.9
10.74
13.83
-1.39
-11.11
-1.39
Less drawal ofCoal byM a h a g e n c oabrupt stoppageof Rail / RD modefrom16.8.11
Source ofwashery Gradecoal as feed toWashery havereduced whichhas resulted inless off-take ofWG coal.
Coal supplied as
per FSA
Source ofwashery Gradecoal as feed toWashery havereduced whichhas resulted inless off-take ofWG coal.
Coal supplied as
per FSA
Coal supplied as
per FSA
Inculudes FSA/
e-Auction
Achiev-
ment
%
2011-12
REMARK
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19.4.1.2 Forward e-Auction
For the year 2011-12, four Forwarde-Auctions have been heldcovering the four quarters of theyear, performance of which isgiven below :
*also include quarters of 2012-13.
20. CONSUMER SATISFACTION:
WCL has adopted various measures to
ensure supply of quality coal to the
consumers, as brought out hereunder:
Year Quant ity of fered Quantity al located Additional Revenue
( lakh tonnes) ( lakh tonnes) (generated (Rs.in crs.)
2010-11 59.59 58.16 613.40
2011-12 70.47 64.14 713.55
Jan.12 to Dec12 2.44 1.09 13.19Oct.11 to Sept.12* 1.99 0.78 8.98July11 to June12* 1.25 0.21 2.61
April11 to March12* 5.12 5.11 50.77
Forward e-Auction
Years for whichauctions were
conducted
Quantity
offered(in lakh tes)
Quantity
Allocatedoffered
(in lakh tes)
Addl. Revenue
generated (as per theqty. allocated in
e-auctions)(Rs. in crs)
A view of Coal Washery at Nandan, Kanhan Area of WCL
quantities allocated to the bidders
during the years 2010-11 and 2011-
12, are given below :
As compared to the year 2010-11,realisation during the year 2011-12increased by Rs.100.15 crs. One ofthe main reasons for increase inadditional revenue generation during2011-12, is increase in the offered
quantity.
19.4.1.1 Additional Revenue GeneratedDuring 2011-12, considering thequantities allocated to thesuccessful bidders, the total ofRs.713.55 crs. was generatedadditionally under Spot e-Auction.
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20.1 Quality of Coal:
20.1.1 The Grade materialization of our
Company during the period 2011-12 is90.57% as compared to 91.88%
achieved last year which is mainly due
to less grade materialisation of
Patherkheda Area from January 2012
to March 2012.The despatches
covered under Joint Sampling and
analysis is 100% in WCL.
20.1.2 Against coal supply to Maharashtra
State Power Generation Company
Limited (MAHAGENCO) from
Durgapur Deep Extension,Bhatadi O/C
Junad Extn, Adasa UG and Kolgaon
O/C on cost plus basis mines,
incentive of approximately Rs.124.59
per tonne, Rs.190.94 per Tonne,
Rs.7.52 per tonne, Rs.4.68 per tonne
and Rs.24.17 per tonne respectively
has been earned during the period
April, 2011 to March, 2012.
20.1.3 The grade materialization of coal
supplies to Gujarat State Electricity
Corporation Limited (GSECL) and
Karnataka Power Corporation Limited
(KPCL) are 100% & 99.71%
respectively.
20.1.4 The weighted average Useful Heat
value (UHV) up to Dec11 & Gross
calorific value (GCV) w.e.f. 01.01.12
to 31.03.12 of coal supplied to followingPower Generating Companies was
more than the required UHV, as per
boiler parameters during 2011-12
20.1.5 The average monthly generation ofMaharashtra State Power
Generation Company Limited(MAHAGENCO) during April 2011to March 2012 is 3107.012 MU
(prov) as compared to 3035.519MU generated during April 2010to March 2011.
20.2 Weighment :
Total 103 Electronic. Road
Weighbridges and 24 RailWeighbridges are working/operational and Overall weighmentpercentage during 2011-12 was asunder:-
20.3 Crushing:
The installed annual crushing capacity
for Open Cast mines is 46.20 million
tonnes.
20.4 Quality Dispute Redressal:
a) In 2011-12, total 102 complaints have
been received. The complaints are of
lumpy coal, extraneous material, wet
and sticky coal.
b)Complaints received are registered,
acknowledged, investigated and
corrective remedial measures are
taken on top most priority forredressal
c)Regular feedback obtained to
maintain high quality standards.
d)Remedial measures taken are as
under:
Following measures are taken at Area
level to improve the quality of coal
supplied to the consumers to minimize
the complaints:
Power Sector
Maharashtra StatePower Generation
Co. Ltd (MSPGCL)
Required
UHV/Grade
3056/F
UHV (K.cal/kg)
(From April11 to Dec11)GCV (Kcal/Kg)(From
Jan12 to Mar12)
Supplied
UHV/Grade
3666/E
Required
GCV
4212
Supplied
GCV
4766
YEAR BY RAIL BY OTHER MODES OVERALL
Target% Actual% Target% Actual% Target% Actual%
2011-12 98.00 99.95 100.00 100.00 99.08 99.98
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ANNUAL REPORT 2011-12
1)Selective mining
2)Deployment of sufficient pickers at
faces Stock and Siding to separateextraneous materials from coal
3)Proper cleaning and maintenance of
siding
4)The crushing facilities are provided at
the mines/at loading points to
despatch sized coal
5)All weighbridges of WCL are regularly
calibrated and stamped by Weights
and Measures Department for proper
weighment.
21. TELECOMMUNICATION :
21.1 Existing Telecommunication Systems:
VOICE & DATA Communication:
WCL (HQ) has an efficient voice and
data communication network connecting
WCL HQ with Area Hqrs. Stores through
BSNL leased lines.
21.1.1 Surface Communication :i) During 2011-12 total 9 Nos. of state
of art IP EPABX systems have been
procured and commissioned at Sasti
O/C Ballarpur Area, Ukni OC &
Bhandewada mines of Wani North
Area, Chattarpur II, Patherkhera Area,
Area Hospital, Kanhan Area,
Durgapur colony, DRC & Padmapur
mines of Chandrapur Area, MRS
Indora Complex, WCL HQ. Further,one more EPABX system has been
ordered & is under installation at
NMUG mine of Majri Area.
ii) 2 Mbps leased internet service at WCL
HQ is in operation catering the need
for various applications such as tender
uploading, e-auctioning, web browsing etc.
iii)Presently 3 nos of telemonitoring
systems is in operation at Naglone,
DRC & Ballarpur 3 &4 pits to monitor
environmental condition in UG mines
including continous measurement ofCarbon Monoxide, Methane, Oxygen
& Temperature. The telemonitoring
system at NMC-3 mine & Naglone
mine has been restructured with
independent surface monitoring.
iv) During the period a digital TETRA
based mobile communication system
has been introduced at Durgapur OC
mines of Chandrapur Area which has
contributed to enhance operationalefficiency of the mines. Based on the
success story, it is also proposed to
introduce the same in Gondegaon
mine of Nagpur Area & is under
tendering process.
21.1.2 Underground communication :
During 2011-12 1 no. of Auto-cum-
Manual telephone systems of
underground mines has been
procured & is under installation at
NMUG mines of Majri Area for efficient
surface to UG communication & vice
versa to improve safety of UG mine.
22. COMPUTERISATION :
22.1 Status of activities planned for 2011-12
Sl. Particulars of Activities StatusNo.1 Development of Centralised Performance
Incentive Computation Software for FSAconsumers. Achieved
2 Development of Uniform Sales Report based
on class/type of coal and nature of sale acrossall the Areas of WCL. Achieved
3 Development of Daily Attendance System for
use in Unit Level on Oracle platform. Achieved4 Decentralization of Tender Uploading across all
the Areas of WCL. Achieved
5 Segment Report of Balance Sheet and Profitand Loss statement. Achieved
6 Closing Stock valuation of Final Accounts Achieved7 Redesigning of WCL Website to Dynamic mode Achieved
8 Online Vig ilance grievance redressal System Achieved
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22.2 Activities planned for 2012-13
1. Consolidation of 22 existing servers at
10 Areas to a Centralized Data Basefor entire WCL.
2. Deployment of Biometric Attendance
System in WCL HQ integrated with
Payroll System and subsequent action
for entire WCL.
3. Finalisation of specification and taking
necessary actions for deployment of
a central data base server connected
upto Mine/ Weighbridge levelwith
MPLS/VPN network (to be provided by
E&T department).
4. Development of Oracle base Pension
System.
5. Development of a consolidate
database for PF, Pension and Gratuity
for entire WCL.
23. ROLE PLAYED BY YOUR COMPANY
IN DEVELOPMENTAND SUSTAINING
SMALL SCALE INDUSTRIAL UNITS :
23.1 WCL, a key Public Sector company in
this region, is making all efforts in
development of Small Scale Industrial
units in Vidarbha Region. This is evident
from the fact that up to the year 2011-12
14 small industrial units were anciliarised
which qualifies them for securing orders
from WCL (HQ) as well as Areas.
24. MANAGEMENT OF INVENTORIES :
24.1 WCL has maintained its position at the
top (amongst CIL subsidiaries) in respect
of Inventory Management.
24.2 Comparative position of net inventory
vis-a-vis annual consumption of stores
and spares in respect of last three years
is as under :
24.3 To have better control over inventory and
consumption 41 charged off stores have
been computerised.
24.4 LONG TERM AGREEMENT :
WCL has entered into a Long Term
Agreementwith M/s IOC Ltd. for supply
of HS Diesel w.e.f. 01.04.2009 to
31.03.2012 with provision for extension
of the same for further period of two years
i.e. upto 31.03.2014 as per mutual
agreement.
24.5 SPECIAL AGREEMENT :
24.5.1 WCL has entered into a MOU with M/s SAIL for supply of various types of Iron
& Steel materials w.e.f. 01.04.2012. The
validity of MOU is up-to 31.03.2013. The
approved off-take value is 46.68 Crores
for an approximate quantity of 11000 mts.
of materials. WCL is first amongst CIL
subsidiaries to have such an agreement
for smooth supply of Iron and Steel
materials.
24.6 E-PROCUREMENT :
24.6.1 WCL has introduced e-tendering with
e-price bid with effect from September
2009 and during the year 2010-11/
2011-12, as a further improvement
system, e-tendering with e-price bid has
been introduced. So far, 217 e-tenders
have been hosted with an estimated
tender value of Rs. 419.31 Crores
(Fig. Rs. in Lakhs)
Sr. No. Financial Net Annual Inventory in % ageYear Inventory Consumption terms of change in
months inventoryconsumption
1 2009-10 7383.00 88514.37 1.00 (+) 01.02
2 2010-11 7425.74 86519.43 0.03 (+) 01.00
3 2011-12 7606.00 92026.00 1.00 (+) 01.02
8/13/2019 Directors Report 2011 12 Wcl
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40
ANNUAL REPORT 2011-12
24.7 MODEL DEPOT AGREEMENT :
WCL has finalized Model Depot
Agreement with M/s Bharat Power
Corporation Limited for supply of
transmission and electrical spares being
the lead company nominated by Coal
India Ltd.
25. HUMAN RESOURCES MANAGEMENT :
25.1 Manpower :
The Companys manpower as on
31.03.2012 as compared to that on31.03.2011 is furnished below :-
25.2 Human Resource Development (HRD)
25.2.1 In-Company training :
In-Company training plays a vital role
in the honing of skills and overall
development of Human Resources.
Four Institutes viz. Management
Development Institute (MDI),Nagpur ,
Supervisory Training Institute
(STI),Chhindwara , Workers Training
Institute (WTI),Wardha and HEMM
Training Institute (HEMM TI), Durgapur
cater needs of functional, cross-
functional and other training courses of
the executives, supervisors and workers.
The break-up of number of executives,
supervisors and workers trained during
2011-12 in the four Institutes are as
given below :
NUMBER OF EXECUTIVES TRAINED AT IICM, RANCHI -114
25.2.2 Out-Company Training :
a) In India - Out-Company trainingincluding Gandhi Labour Foundation
(GLF), Puri is an important activity of
HRD department, through which
improvement in efficiency and
productivity of employees is sought by
sharpening their managerial , technical
and functional skills. For this purpose,
the employees are nominated to attend
training programmes organised by
various Educational Institutes such as
Indian School of Mines University
(ISMU), Dhanbad , Indian Institutes of
Technology(IIT), National Institutes of
Technology(NIT), various
organisations such as Indian Institute
of Industrial Engineering(IIIE), Indian
Institute of Materials Management
(IIMM), National Productivity Council
(NPC), MGMI , National Institute of
Personnel Management (NIPM) ,
Gandhi Labour Foundation Puri etc andalso Original Equipment Manufacturers
(OEM) such as BEML, L&T etc.
The breakup of executives,
supervisors and workers sent for out-
company training is as given below :
Sl.. Category Manpower as on Increase (+)/
No. 31.03.2012 31.03.2011 Decrease (-)
1 Executive 2620 2409 211
2 Supervisor 5288 5675 (-) 387
3 Clerical 3546 3922 (-) 376
4 Highly Skilled / Skilled 28828 28765 63
5 Semi-skilled / Unskilled 16460 17709 (-) 1249
6 Companys Trainee 247 563 (-) 316
T O T A L 56989 59043 (-) 2054
Ex ecutives Supervisors Workers TOTAL
Out-Company Training
(including GLF, Puri) 203 58 27 28 8
INSTITUTES Executives Supervisors Workers TOTAL
Managemen
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