SOUTH EASTERN COALFIELDS LIMITED. (A Mini Ratna PSU) 26 th Annual Report

Transcription

1 SOUTH EASTERN COALFIELDS LIMITED (A Mini Ratna PSU) 26 th Annual Report

2 VISION The vision of South Eastern Coalfields Limited (SECL) is to be leading energy supplier in the country, by adopting the best practices and leading technology from mine to market. MISSION The mission of South Eastern Coalfields Limited (SECL) is to produce and market the planned quantity of Coal and Coal products efficiently and economically with due regard to safety, conservation and quality.

3 Reference Information SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report Reference Information Registered Office South Eastern Coalfields Limited Seepat Road, Bilaspur (Chhattisgarh) Phone No Fax No Web Site: Bankers State Bank of India Union Bank of India UCO Bank Punjab National Bank Bank of Baroda AXIS Bank Limited Central Bank of India Canara Bank IDBI Bank United Bank of India Bank of India Bank of Maharashtra Oriental Bank of Commerce Allahabad Bank Andhra Bank Corporation Bank Syndicate Bank Statutory Auditors M/s. R. Gopal & Associates Chartered Accountants, New Shanti Nagar, Old Pipe Factory Road, Raipur (Chhattisgarh) Branch Auditors M/s. Ghosh & Pande Chartered Accountants Mercantile Building, Block A, Room No.59, Lal Bazar Street, Kolkata (West Bengal) M/s. DE & Bose Chartered Accountants, 8/2, Kiran Shankar Roy Road, 2 nd Floor, Room No.1, Kolkata (West Bengal) M/s. S. Sannigrahi & Co. Chartered Accountants 207, Sumati Place,Opp. Alankar Place, Boring Road,Patna (Bihar) Practicing Company Secretary AGR Reddy & Co. #202, Pavani Annexe, Road No. 2, Banjara Hills Hyderabad (Andhra Pradesh) Reference Information 1

4 2

5 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited Contents 26 th Annual Report ¾ Board of Directors... 4 ¾ Notice of Annual General Meeting... 5 ¾ Year at a Glance... 6 ¾ Chairman s Statement ¾ Awards and Accolades ¾ Operational Statistics ¾ Directors Profile ¾ Directors Report ¾ Information under Section 217 (1)(e) ¾ Report on Corporate Governance ¾ Report on Management Discussion and Analysis ¾ Auditors Report on the MoU Parameters ¾ Comments of the Comptroller and Auditor General of India ¾ Auditors Report U/s 217(3) of the Companies Act and Management s Reply ¾ Balance Sheet as at 31 st March, ¾ Statement of Profit and Loss Account for the year ended 31 st March, ¾ Notes forming part of the Balance Sheet and Profit & Loss Account ¾ Note on Significant Accounting Policies ¾ Additional Notes on Accounts ¾ Statement of Cash Flow for the Year ended 31 st March, ¾ Annexure-I & IX under Clause 41 of Listing Agreement as per SEBI Guidelines ¾ CEO & CFO Certification

6 Board of Directors BOARD OF DIRECTORS BOARD OF DIRECTORS DURING ( ) (AS ON ) Chairman-Cum-Managing Director Shri Ashok Kumar Singh (Up to ) Shri Asok Kumar Sinha (w.e.f ) Functional Directors Shri R.S. Singh, Director (Personnel) (Up to ) Shri Anil Kumar Singh, Director (Personnel) (w.e.f ) Shri A.R. Komawar, Director (Finance) (w.e.f ) Shri P.K. Roy Chowdhury, Director (Technical) (w.e.f ) Shri Gopal Singh, Director (Technical) (Up to ) Part time Official Directors Shri A.K. Bhalla (w.e.f ) Joint Secretary (Coal), Ministry of Coal, Govt. of India, New Delhi Shri Asok Kumar Sinha (w.e.f ) Director (Finance) Coal India Limited Kolkata Part time Non-Official Directors Shri H.S. Chahar, Former IAS (w.e.f ) Shri Amitav Kothari, Practicing CA (w.e.f ) Dr. Amalendu Sinha, Director, CIMFR (w.e.f ) Prof. S.K. Barua, Director, IIM-A (Up to ) Dr. R. N. Trivedi, Former IAS (w.e.f ) Permanent Invitee Shri Ajay Shukla (Up to ) Chief Operations Manager South East Central Railway(SECR) Bilaspur (CG) Shri B. K. Joshi (w.e.f ) Chief Operations Manager, SECR, Bilaspur (CG) Board of Directors Company Secretary Shri S.M. Yunus Chairman-Cum-Managing Director Shri Asok Kumar Sinha Functional Directors Shri A.R. Komawar, Director (Finance) Shri P.K. Roy Chowdhury, Director (Technical) Shri Anil Kumar Singh, Director (Personnel) Part time Official Directors Shri A.K. Bhalla, Joint Secretary (Coal) Ministry of Coal, Govt. of India, New Delhi Shri Asok Kumar Sinha, Director (Finance) Coal India Limited Kolkata Part time Non-Official Directors Shri H.S. Chahar, Former IAS Shri Amitav Kothari, Practicing CA Dr. Amalendu Sinha, Director, CIMFR Dr. R. N. Trivedi, Former IAS Permanent Invitee Shri B. K. Joshi Chief Operations Manager South East Central Railway Bilaspur (CG) 4 Board of Directors

7 Notice Notice SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report To, All Members Notice is hereby given to all the Shareholders of SOUTH EASTERN COALFIELDS LIMITED that the Twenty-sixth Annual General Meeting of the Company will be held at the Registered Office of the Company at Seepat Road, Bilaspur (Chhattisgarh) on Thursday, the 24 th May 2012 at 1.00 P.M to transact the following business : ORDINARY BUSINESS: 1. To receive, consider and adopt the audited Balance Sheet as on 31 st March, 2012 and the Profit & Loss Account for the year ended 31 st March, 2012 together with the Reports of Directors and Auditors thereon. 2. To declare final dividend on Equity Shares for the financial year ended 31 st March, To appoint a Director in place of Shri A.K. Sinha, who retires in terms of Article 33(e)(iii) of the Articles of Association of the Company and is eligible for reappointment. 4. 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 reappointment. Registered Office: Seepat Road, Bilaspur (CG) Dated: 17 th May, 2012 By order of the Board of Directors For South Eastern Coalfields Limited Sd/- (S. M. Yunus) Company Secretary Notes: 1. A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote instead of himself and a proxy need not be a member of the Company. 2. The Shareholders are requested to give their consent for calling the Annual General Meeting at a shorter notice pursuant to the provisions of the Sec.171(2)(i) of the Companies Act, Distribution: 1. M/s. Coal India Limited, Kolkata 2. Shri S. Narsing Rao, Chairman-cum-Managing Director, CIL, Kolkata 3. Shri A. K. Sinha, Director (Finance), CIL, Kolkata 4. Shri A. K. Sinha, CMD, SECL, Bilaspur. Notice 5

8 The Year at a Glance The Year at a Glance PARTICULARS UNIT Production of Raw Coal : i Coal Production from Opencast Mines Million Tonnes ii Coal Production from Underground Mines Million Tonnes Total Coal Production Million Tonnes Sale of Coal ` (in Crores) Profit before tax (PBT) ` (in Crores) Profit after tax (PAT) ` (in Crores) Dividend ` (in Crores) Dividend tax ` (in Crores) Retained Profit ` (in Crores) Net Fixed Assets ` (in Crores) Net Worth ` (in Crores) Long Term Loan ` (in Crores) Capital Employed ` (in Crores) Value Added ` (in Crores) Number of Employees Number Value added per employee ` (in Crores) Debt to Equity Ratio Return on Capital Employed % Face Value Per Share ` Dividend Per Share ` Book Value Per Share ` Earnings Per Share ` NOTE: Figures for the year are taken as per Revised Schedule-VI of the Companies Act effective from vide Notification No. S.O.447 (E) dated issued by the Ministry of Corporate Affairs, and figures for the year are also re-grouped accordingly. 6 The Year at a Glance

9 Graphs & Charts SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report Profit after Tax (` in Crores) Coal Production (in Million Tonnes) Gross Sales (` in Crores) Graphs & Charts 7

10 Net Worth (` in Crores) Earning Per Share (EPS in `) Advance Tax Paid (` in Crores) 8 Graphs & Charts

11 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report Sources of Funds (` in Crores) Application of Funds Gross Block & Net Block (` in Crores) (` in Crores) Graphs & Charts 9

12 Sales Realization (` in Crores) Debtors in Months' Sales Dispatch of Coal 10 Graphs & Charts

13 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report Mode Wise Dispatch Sector Wise Coal Dispatch Manpower Graphs & Charts 11

14 Productivity (Output per Man-Shift) How Rupee is Spent (%) 12 Graphs & Charts

15 Chairman s Statement SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report Chairman s Statement Dear shareholders, On behalf of the Board of Directors and on my behalf, I would like to extend a very warm welcome to all of you to the 26 th AGM of SECL and present to you the Annual Report of your Company for the financial year The Directors Report and the Audited Balance sheet of your Company for the year ended 31 st March, 2012 have already been provided to all the shareholders of the Company. With your permission, I take them as read. Economic Scenario: The April 2012 edition of the World Economic Outlook assesses the prospects for the global economy, which has gradually strengthened after a major setback during The threat of a sharp global slowdown eased with improved activity in the United States and better policies in the Euro area. Weak recovery will likely resume in the major advanced economies, and activity will remain relatively solid in most emerging and developing economies. Real Gross Domestic Product (GDP) growth in the emerging and Chairman s Statement 13

16 developing economies is projected to slow from 6¼ percent in 2011 to 5¾ percent in 2012 but thereafter to reaccelerate to 6 percent in 2013, helped by easier macroeconomic policies and strengthening foreign demand. India is today rated as one of the most attractive investment destinations across the globe.the Indian economy is marching towards a high growth trajectory, albeit with certain impediments on the horizon. The growth of Indian economy is estimated at 6.9% in mainly due to weakening of industrial growth while the Economic Survey ( ) also expects the growth rate of real Gross Domestic Product (GDP) to pick up to 7.6% in and faster beyond that. The outlook for growth and price stability at this juncture looks more promising. There are signs from some high frequency indicators that the weakness in economic activity has bottomed out and a gradual upswing is imminent. Global Coal Scenario: Globally, coal plays an important role in the energy mix with a share of about 29%. It is also the most abundant fuel resource. The global coal reserves are estimated at around 990 Billion Tonnes, as per a recent study by German Federal Institute of Geosciences and Natural Resources. This amounts to around 146 years of production at current levels. North America has the largest reserves, with 27.7% share and is followed by China with 19.4% and Russia with 16.3%. China, the largest producer, has a share of 47% of global hard coal production. It is followed by United States and India. The top seven countries China, US, India, Australia, Russia, Indonesia and South Africa comprise more than 90% of global hard coal production. Indian Coal Sector Overview: Coal is the second most widely used primary fuel in the world, next to oil, accounting for around 29% of world s primary fuel consumption. Though this stands for most of the countries, India stands as one of the exceptions. Coal plays a very important role in India s power mix, accounting for more than 53 per cent of the total primary energy consumption. The demand for coal has been growing on account of an increasing demand for power, which is the key consuming sector for coal. Power is a vital input for economic development and sustenance of modern economy. Power is also important for eradication of poverty. The Working Group for Coal & Lignite for formulation of XII th Five- Year Plan has assessed a coal demand of Mt in terminal year of XII th Five-Year Plan i.e at a Compound Annual Growth Rate (CAGR) of 7.09% from the current demand of Mt for Steel and Cement are the other major industries driving the demand for coal in the country. Operational highlights: SECL has delivered excellent all round performance during the year SECL with Coal production of million tonnes during , exceeded the AAP target of 112 million tonnes and MoU Excellent target of million tonnes and has registered a growth of 1.13 million tonnes i.e. 1.00% over last year s million tonnes. Achievement of % sets SECL amongst the highest achievers in CIL. Regarding the productivity in terms of output per manshift (OMS), SECL has achieved 6.44 of OMS against AAP Target of The off-take has been million tonnes, i.e % of the target demand of million tonnes thereby recording a growth of 5.6% in comparison to last year which is the highest in CIL, a record in itself. Coal Stocks at the Pithead was at million tonnes at the end of fiscal , which indicate a reduction of million tonnes over last year s million tonnes. Thus, SECL has maintained as pit head Coal lowest among CIL Subsidiaries. The dispatches of coal by various modes of transport during the year were million tonnes against million tonnes during thereby registering a growth of 5.62%. Barring Belt" & Consumers own wagon" mode of dispatches, there has been positive growth in dispatches by all other modes. The negative growth in both of these modes is due to less off-take by Pit head Power Houses who own & operate these modes. The supply materialisation to power houses is % The Company has achieved an all-time high Gross Sales value of ` Crore breaking its own record of the previous year s Gross Sales of ` Crore, registering a stupendous growth of 44.57% over previous year. There is a continuous improvement in realization. The realization during the year is ` Crore which is 99.86% of the current year s gross sales. Financial Highlights: Profit Before Tax (PBT) for the year is ` Crores thereby registering a growth of 58.93% over last year s Profit Before Tax (PBT) of ` Crores. The profit after tax is ` Crores as against ` Crores in the previous year. Net worth of the Company has risen from a level of ` Crores last year to ` Crores on The Profit after Tax to Net worth, a distinct measure of return to shareholders thus works out to be 55.89% in Your Directors have recommended a dividend payment of ` Crores, i.e. a payout of 60% of Profit After Tax (PAT) of ` Crores. 14 Chairman s Statement

17 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited New Projects and Future Plans: Member may be aware that at present, there are 53 completed projects in SECL with rated capacity of MT. There are 35 ongoing projects under implementation (as on March-2012) with rated capacity of MT. Production from these projects during was MT. To further augment the production and achieve the targeted production programme of SECL during XII th Five-Year plan and beyond, 17 new projects are approved and are under implementation. To further increase the coal dispatch system, Rapid loading System (SILO) have been planned and approved in 03 projects namely in Kusmunda, Gevra and Dipka Areas. SECL is planning to set up 2 Nos. Coal Washery on its own on BOM (Build-Operate-Maintain) concept at Korba Coalfield and Raigarh Coalfield to cope up with Ministry of Environment & Forests (MoEF) stipulations to dispatch below 34% ash to Power Houses. One washery of 5 MTY capacity will come up at Baroud Opencast of Raigarh Area and another washery of 10 MTY capacity at Kusmunda Opencast of Kusmunda Area. The TEFR (Techno Economic Feasibility Report) of Baroud Washery (5 MTY) for ` Crores has been approved and the Conceptual Report of Kusmunda Washery (10 MTY) for ` Crores has also been approved. Tendering is in process for Kusmunda Washery. Creating transport infrastructure and managing logistics to move coal from the point of origin to consumption units is a major challenge for sustainable development. The Railways has a major share in coal movement matrix (around 49%). To augment the rail infrastructure for coal movement is a challenging task and would require fresh initiatives. To cater the need of coal evacuation, network of Sidings is laid in different Areas of Korba and CIC Coalfields of SECL and there are 33 Nos. Railway Sidings for dispatch of coal, 16 Nos. in Korba Coalfields with optimum capacity of MTY and 17 Nos. in Central India Coalfield (CIC) with MTY Capacity. In Korba Coalfields, out of 16 Nos. of Siding having optimum capacity of MTY, 5 Nos. of Siding having optimum capacity of 25 MTY are being used by Washery Operators, 1 No. Rapid Loading System (RLS) having optimum capacity of 8 MTY at Gevra Project is being used by NTPC, Korba, 1 No.RLS having optimum capacity of 8 MTY at Dipka Project is being used for NTPC Seepat and 2 Nos. Siding of optimum capacity of 7.80 MTY is being used for CSEB Korba. Thus total [81.90(-)48.80] = MTY optimum capacity siding is being used by SECL in Korba Coalfields. Rapid Loading System (RLS) very high capacity SILOs with Merry-go-round (MGR) are in operation at Gevra Expn OC & Dipka Expn OC and are planned in other mega OC such as Kusmunda Expn. OC. This system of high rated loading is also in 26 th Annual Report compliance with Environmental stipulation. Moreover, various development activities with respect to constructions of new sidings are taken up considering increase in production of coal in near future. Mand-Raigarh Coal fields in Raigarh Area spreads over an area of 3700 sq.km and have MT of coal reserve (Proved) as on and has potential to produce huge quantity of power grade coal. Presently only 4 mines having total capacity of 7.03 MT are in operation. New Siding parallel to Old Siding towards dispatch arrangement for Mahan II OCP at Bhatgaon Area is under construction for dispatch of coal from Mahan II OCP. Wharf Wall loading at Line No.3 of Kusmunda Siding has been proposed for evacuation of coal from Kusmunda Area. Similarly, in order to achieve 50 MTY in future in Kusmunda Area additional Railway Siding for Washery with Rapid Loading System is under consideration and feasibility study has been done by M/s. RITES Limited, Kolkata and Detailed Project Report (DPR) has been submitted to S.E.C.Railway, Bilaspur, for approval. Likewise, for development of a new Railway Siding in Lakhanpur Coalfields of Bishrampur Area feasibility study has been done by M/s. RITES Limited, Kolkata and DPR is under preparation. Similar efforts have also been made for new Railway Sidings in near future for Jagannathpur Group of Mines at Bhatgaon Area and for Batura at Sohagpur Area. This will certainly enhance dispatch capacity to a great extent. Regarding a proposal for providing Rail Infrastructure at Mand-Raigarh Coalfields, Railways has submitted initial survey report based on the accepted survey report of M/s. RITES Limited, Kolkata, on behalf of SECL to Railway Board with project cost of ` 344 Crores for approval which is still awaited. As per the meeting conducted by Hon ble Chief Minister, Chhattisgarh with Hon ble Railway Minister, Govt. of India at Raipur (C.G.) on and Summary Recommendations of the Working Group on Rail Corridor in North Chhattisgarh, the following Corridors were identified by the Working Group: East Corridor (Bupdeopur-Gharghoda-Dharamjaigarh upto Korba with a spur from Gharghoda to Donga Mauha to connect mines of Gare-Pelma block) Approx.180 Km. North Corridor ((Parsa to Surajpur) 77 Km which can be connected to Korba via Katghora, total approx distance 150 Km. East-West Corridor (Gevra Road to Pendra Road via Dipka, Katghora, Sindurgarh, Pasan) 122 Km. These corridors will be used both for freight and passenger services and corridor project will be implemented on public-private partnership Chairman s Statement 15

18 (PPP) model through a project specific Special Purpose Vehicle (SPV). Initial project development will be done by Indian Railways. These Corridors, if implemented, will cater evacuation of coal from Raigarh- Mand Coalfield and Korba-Gevra Coalfield of SECL also. Corporate Social Responsibility (CSR): Your Company sincerely believes that CSR activities play a pivotal role in achieving inclusive growth. SECL is in the forefront in various CSR initiatives over the past many years. The focus of SECL s CSR initiatives is integrated development of community in the villages surrounding our establishments which are among the most backward tribal villages of India. SECL has initiated integrated development of villages to facilitate sustainable income generation through employment / self-employment by targeting education and skill development. SECL is also offering facilities in healthcare and infrastructure to enable the beneficiaries engage in income generation activities. CSR activities are mentioned in detail in the Director s Report. Environment Management: As a mining Company, SECL is conscious of its role in preservation of environment and maintaining ecological balance. During the year, six numbers of mines were recommended for ISO 14001:2004 Certification. Certification will be issued by Certification International (UK) Limited, UK. Already three mega projects of SECL Gevra OCP, Dipka OCP & Kusmunda OCP along with fifteen other opencast mines, have been certified for Environmental Management System (EMS) as per ISO 14001:2004 up to Corporate Governance: A separate section on Corporate Governance forms part of the Director s Report. Your Company has complied with Corporate Governance norms as stipulated by the Department of Public Enterprises (DPE) Guidelines. Looking Ahead: Coal is an important pillar of India s energy security and sustainable development. Compared to hydrocarbon resources, coal is the most abundant, sustainable and cheapest domestic fuel for power. As such, the future energy demand-supply scenario is heavily dependent on coal. India is presently the third largest coal producing country, after China and the United States of America. However, domestic production is not sufficient to meet its needs. Indonesia, Australia and South Africa are the key countries catering to India s most import needs. There is also a trend of Indian companies acquiring overseas coal assets to ensure security of coal supplies. Recent developments have been very positive for the Indian coal sector. CIL s attempts at acquiring overseas coalfields will lead to greater coal security for the growing energy needs of the country. Fuel Supply Agreements (FSA) will remove the supply uncertainties faced by the coal consuming industries. Overall, the sector is on a positive track and is expected to remain so in the years to come though challenges remain, especially with regard to implementation bottlenecks for captive coal mining, coal transportation infrastructure etc. The steep growth in major coal consuming sectors like Power, Steel and Cement is a primary cause for surge in demand. As per the Optimistic Scenario projected by the Working Group on Power for Twelfth Plan ( ), the total coal production of CIL in is expected to be 615 MT. As per Memorandum of Understanding (MoU) with Ministry of Coal for the fiscal , CIL s targeted production and coal off-take have been fixed at Million Tonnes (Mts) and Mts respectively. During the terminal year of the XI th Plan ( ), SECL has produced Million Tonnes of Coal. SECL has set an ambitious target level of coal production of Million Tonnes in By the end of XII th plan (i.e ), the planned production will reach Million Tonnes registering a Compound Annual Growth Rate (CAGR) of 4.39% over previous plan period i.e. XI th Plan. The year ahead holds much promise to SECL. With the modernization and introduction of new technology in the mines viz., Continuous Miner, Highwall Mining Technology, deployment of high capacity HEMM like 42 Cu.M capacity Shovels and 240 Tonne Dumpers, the production is definitely going to increase. Dispatches are likely to improve, bringing in better realization, higher turnover and more profit. SECL, it is hoped, will excel its performance and achieve all-time high records. Acknowledgement: To conclude, I acknowledge that all these achievements have been possible only due to relentless and dedicated efforts, made by the employees of the Company and active support of Trade Unions. On behalf of the shareholders and management of the Company, I thank the Government of India, Ministry of Coal and Coal India Limited for the confidence and trust bestowed upon your Company and the opportunity given for its continued growth and expansion. I sincerely assure you that, the Company will continue to grow in the years ahead. Thanking you, (Asok Kumar Sinha) Chairman-cum-Managing Director 16 Chairman s Statement

19 Awards & Accolades SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report Awards and Accolades Shri Asok Kumar Sinha, CMD, SECL receives the BEST CFO" Award in PSU category from Shri Pranab Mukherjee, Hon ble Finance Minister and Dr. Veerappa Moily, Hon ble Minister for Corporate Affairs. Awards and Accolades 17

20 18 Awards and Accolades Awards and Accolades

21 Operational Statistics SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report Operational Statistics Year ending 31 st March Unit PRODUCTION [RAW COAL][M.T.] Under Ground M.T Opencast M.T Total M.T O.B.R. [Million Cub Mts.] M. CuM OFF TAKE [RAW COAL][M.T.] Power M.T Cement M.T Domestic & Boiler Use M.T Others M.T Total PRODUCTIVITY: Output per manshift [OMS] Under Ground [Tonnes] Tons Open cast [Tonnes] Tons Overall [Tonnes] Tons MANPOWER No EQUITY AND LIABILITIES: Shareholder s funds Share Capital - Equity ` in Crs Preference ` in Crs Free Reserve ` in Crs 1, , , Capital reserve ` in Crs C S R reserve ` in Crs Accumulated Profit ` in Crs 4, , , , , , , , , , Less : Misc. Expenditure not written off Total Shareholder s funds ` in Crs 7, , , , , , , , , , Non-Current Liabilities: Long Term Borrowings: Bank & Financial Institution ` in Crs Deffered credit ` in Crs World Bank Loan (Through CIL) ` in Crs Deferred Tax Liabilities (Net) ` in Crs Other Long Term Liabilities ` in Crs Long Term Provisions ` in Crs 4, , Total Non-Current Liabilities ` in Crs 5, , Current Liabilities & Provisions ` in Crs 7, , , , , , , , Trade Payables ` in Crs Other Current Liabilities ` in Crs 3, , Provision for Gratuity [actuarial] ` in Crs Short Term Provisions ` in Crs 2, , Total Current Liabilities ` in Crs 6, , , , , , , , , , Total ` in Crs 18, , , , , , , , , , Operational Statistics 19

22 Year ending 31 st March Unit ASSETS: Non-Current Assets Gross Fixed Assets ` in Crs 7, , , , , , , , , , Less Depreciation & Impairment loss ` in Crs 3, , , , , , , , , , Net Fixed Assets ` in Crs 3, , , , , , , , , , Capital Work-in-Progress ` in Crs Intengible Assests under Development ` in Crs Total Fixed Assets ` in Crs 4, , , , , , , , , , Defferred Tax Assets (Net) ` in Crs Investment ` in Crs , , , , Non-Current Investment ` in Crs Long Term Loans & Advances ` in Crs Other Non-Currrent Assets ` in Crs Total Non-Current Assets ` in Crs , , , , , Current Assets : Current Investments ` in Crs Interest Accrued on Investment Inventories : Coal ` in Crs Store & Spares ` in Crs Other Inventories ` in Crs Trade Receivables ` in Crs , Cash & Bank Balances ` in Crs 8, , , , , , , , Loans & Advances ` in Crs 1, , , , , , , , Short Term Loans & Advances ` in Crs Other Current Assets ` in Crs 2, , Total Current Assets ` in Crs 14, , , , , , , , , , Total ` in Crs 18, , , , , , , , , , NET WORTH ` in Crs 7, , , , , , , , , , CAPITAL EMPLOYED ` in Crs 5, , , , , , , , , , WORKING CAPITAL ` in Crs 7, , , , (335.59) INCOME: Gross Sales ` in Crs 19, , , , , , , , , , Less: Coal from Dev.mines ` in Crs Less: Excise duty ` in Crs Statutory Levies ` in Crs 3, , , , , , , , Net Sales ` in Crs 15, , , , , , , , , , Other Income ` in Crs 1, Total Revenue ` in Crs 16, , , , , , , , , , Operational Statistics

23 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report Year ending 31 st March Unit EXPENSES: Cost of Material consumed ` in Crs 1, , , , Change in Inventories ` in Crs (266.14) (136.80) (9.52) (22.61) (55.80) (7.48) (20.34) 3.96 Employee Benefit Expenses ` in Crs 5, , , , , , , , , , Power & Fuel ` in Crs Welfare Expenses ` in Crs Repairs ` in Crs , Contractual Expenses ` in Crs 1, , Finance Costs ` in Crs Depreciation / Amortization/Impairment loss ` in Crs Provisions ` in Crs (7.06) (75.72) Write Offs ` in Crs OBR Adjustment ` in Crs Other Expenses ` in Crs Total Expenses ` in Crs 10, , , , , , , , , , CPRA ` in Crs Prior Period Adj. ` in Crs (5.32) (37.05) Exra ordinary items ` in Crs Total ` in Crs 10, , , , , , , , , , Gross Margin ` in Crs 6, , , , , , , , , , Gross Profit ` in Crs 6, , , , , , , , , Net Profit ` in Crs 6, , , , , , , , , Income Tax ` in Crs 1, , Profit after tax ` in Crs 4, , , , , , , Dividend ` in Crs 2, , , Dividend Tax ` in Crs Transfer to General Reserve ` in Crs Transfer to CSR Reserve ` in Crs Invest. Allow. Written back ` in Crs Profit brought forward from Last Year ` in Crs 3, , , , , , , , , Accumulated Profit ` in Crs 4, , , , , , , , , , IMPORTANT FINANCIAL RATIOS [A] PROFITABILITY RATIOS [1] Percentage of Net Sales Gross Margin % Gross Profit % Net Profit % [2] Percentage of total Expenditure Employee Benefit Expenses % Stores & Spares % Power & Fuel % Finance Cost % Depreciation/ Amortisation/ Impairment % Operational Statistics 21

24 Year ending 31 st March Unit [3] Percentage of Capital Employeed Gross Margin % Gross Profit % Net Profit % [4] Operating ratio Ratio [(Sales-Profit)/Sales] [B] LIQUIDITY RATIOS Current Ratio Ratio Quick Ratio Ratio Percentage of working Capital Capital Employed % (22.67) Net Fixed Assets % (18.48) [C] TURNOVER RATIOS Capital Turnover Ratio Ratio [Net Sales/Capital Employed] Sundry Debtors as No. of Month Gross Sales Nos Net Sales Nos Average Net Sales per month ` in Crs 1, Stock of coal as No. of Month s Sale Nos Stock of store & spares Average Consumption of Materials ` in Crs Stock of Material as No. of Month s Nos Consumption [D] STRUCTURAL RATIOS Debt equity reatio Ratio Net Worth per Rupee of Paid up Capital (`) ` Net Fixed Assets : Net Worth Ratio [E] SHARE HOLDER s INTEREST Book Value Per Share (`) ` 20, , , , , , , , , , Earning per Share (Basic) ` 11, , , , , , , , , , Dividind - on Equity Shares ` in Crs 2, , , on Preference Shares ` in Crs % Dividend to Equity Capital % % Dividend to preference Capital % Net Profit to Net Worth % Value Added ` in Crs 13, , , , , , , , , , Value Added per Employee (` in Crores) ` in Crs Note: Figures for the year are taken as per Revised Schedule-VI of the Companes Act 1956 effective from vide Notification No. S.O.447(E) dated issued by the Ministry of Corporate Affairs, and figures for the year are also re-grouped accordingly however, figures for the rest of the years are as per earlier Schedule VI and wherever necessary also regrouped as per the revised Schedule VI. 22 Operational Statistics

25 Directors Profile Directors Profile SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report Shri Asok Kumar Sinha Shri Asok Kumar Sinha (59 years) took the additional charge of the Chairman-cum-Managing Director, South Eastern Coalfields Limited on 1 st July, 2011 in addition to his existing charge of Director (Finance) of Coal India Limited. He is also a Part Time Official Director on the Board of SECL w.e.f. 3 rd May Shri Sinha is graduate with honours in Physics from Calcutta University and is a Member of the Institute of Chartered Accountants of India. He also holds Bachelor s Degree in Law from Calcutta University. Shri Sinha has over three decades of experience in Corporate Finance and Management in the Mining Industry. He was associated with Eastern Coalfields Limited in various capacities from 1977 to 2001 and was also the General Manager (Finance) of Bharat Coking Coal Limited and Director (Finance) of ECL. Shri Sinha joined Coal India Limited as Director (Finance) on March 13, 2010 and is responsible for overall financial management and audit functions of all Subsidiaries of Coal India Limited and in advising the Board on all financial matters. Shri Asok Kumar Sinha, was conferred with the coveted Best CFO" Award in PSU Category in the award function organised by Business Today and Yes Bank on 11 th April, 2012 at New Delhi, for handling the IPO of Coal India Limited in October, 2010, which was the most successful Public issue in the history of India and for his untiring endeavours in elevating the CIL as the most valued company in the country in terms of market capitalisation on 17 th August, The Award was presented to Shri Asok Kumar Sinha by Shri Pranab Mukherjee, Hon ble Finance Minister, Government of India, and Dr.Veerappa Moily, Hon ble Minister for Corporate Affairs, Government of India. He also gives direction on the Corporate Governance framework of CIL. Shri Sinha has rich experience in the field of Management Accounting and has held the post of Chairman of Asansol Chapter of Chartered Accountants. He has also participated in the Advanced Management Programme at the Queens College, Cambridge, United Kingdom and has completed the Scope-IMI Global Leadership Advance Management Programme on strategic issues of national and international leadership. Shri Ajay Kumar Bhalla Shri Ajay Kumar Bhalla (51 years), Joint Secretary, Ministry of Coal, Government of India, joined as Part Time Official Director on the Board of SECL on 6 th July Shri Bhalla is an IAS Officer of Assam and Meghalaya Cadre He holds Masters Degree in Botany from University of Delhi, M. Phil (Social Sciences) from University of Punjab & MBA from University of Queensland, Brisbane, Australia. Prior to his current assignment of Joint Secretary, Ministry of Coal, Shri Bhalla was Principal Resident Commissioner, Government of Meghalaya. Shri Bhalla has wide experience spread across various Ministries and Departments of Government of India and he held various administrative posts in the State of Assam and Meghalaya including that of Commissioner & Secretary, Government of Meghalaya, Principal Secretary in Public Health Engineering Department, Industries Development, Soil & Water Conservation Department, Chairman of Board of Revenue. He also worked as Deputy Secretary/ Director, Government of India, Department of Mines, Ministry of Steel & Mines, as well as worked as Director (Ports) & Joint Secretary (Ports) in the Department of Shipping, Government of India. He was Private Secretary to the Union Minister of State for Health & Family Welfare and Union Minister of State for External Affairs. Directors Profile 23

26 Shri A. R. Komawar Shri A.R. Komawar (58 Years), Director (Finance), a Chartered Accountant with rich and varied experience of over 35 years in corporate financial management in Coal Industry and he plays a pivotal role in providing valuable inputs to the Board for taking various strategic decisions to enable the Company in achieving its visions. He is responsible for entire gamut of financial management of the Company including financial resource mobilization, optimum utilization of funds and budgetary controls and identifying and adopting emerging trends to achieve the desired corporate objectives and profitability norms. A keen analyst and committed Management functionary, with exceptional relationship management and negotiation skills with proven abilities in liaison with government departments, regulatory authorities and external agencies. Under his able guidance and leadership SECL has been able to complete financial reporting much ahead of the deadline. Shri P. K. Roy Chowdhury Shri P. K. Roy Chowdhury (57 years) joined as Director (Tech.) Operations on Shri Chowdhury is a graduate Mining Engineer with M.Tech. (Opencast Mines) from Indian School of Mines, Dhanbad and holds qualification of MBA in Human Resources from Indira Gandhi National Open University (IGNOU). Shri Chowdhury has more than three decades of diversified and versatile professional experience in coal industry, spanning a wide range of functions including marketing and business development, project execution, operations & planning and strategic management. During his tenure as head of operations of SECL, Shri Chowdhury has initiated and facilitated strategic steps to fill the technology gaps. Since his taking over as Director, he has been focussing on introduction of new technology in mining to enhance production & productivity in the mines to eliminate/ minimize workers hardship. Under his leadership, the Company is able to introduce first time in the Country, the latest technology/high capacity equipments like 42 M.Cu.M. Shovel and 240 Te Dumpers in its Gevra and Dipka opencast mines, introduction of High Wall Mining Technology at Sharda Opencast Mine. He is instrumental in the introduction of other new methods of mining like Short wall method of mining, introduction of Continuous miner for creating mega underground mines at Churcha Underground, Kurja/ Sheetaldhara and Pinoura and introduction of mechanization of drilling operations by installation of universal drill machines to limit the exposure of workmen below green roof. Shri Chowdhury has travelled widely to countries like USA, France, Italy, Germany and Switzerland and attended various programs/seminars/ conferences etc. Shri Anil Kumar Singh Shri Anil Kumar Singh (58 years) took over charge as Director (Personnel), SECL, on Shri Singh holds Bachelor Degree in Science and Master Degree in Social Science. Shri A.K. Singh has worked in various capacities such as Area Personnel Manager, Dy. CPM (IR), General Manager (Personnel) in WCL and SECL of CIL. He has been an achiever all along his career and he was awarded Best Personnel Executive Award" consecutively for 3 years in WCL for a specific contribution in the area of labour welfare activities. He has vast experience of more than 30 years in Personnel, IR, Legal, CSR etc. He was a member of the Delegation to China organized by IICM, Ranchi as part of their Advanced Management Programme. 24 Directors Profile

27 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited Shri H. S. Chahar Shri H. S. Chahar (62 years), joined as Part Time Non-Official Director (Independent Director) on the Board of SECL on Shri Chahar is a Masters in Economics from Punjab University, Chandigarh. He is a retired IAS Officer of Orissa Cadre, superannuated in October, He has worked in various capacities at the State and Central Government like Secretary, Agriculture 26 th Annual Report Department, Secretary, Transport & Commerce Department, Secretary, Housing and Urban Development Department, Secretary, Steels & Mines Department, Forest & Environment Department, and Collector & District Magistrate, Sambalpur and Mayurbhanj Districts of Orissa besides various other administrative posts. Shri Chahar has wide ranging experience in both Development & Regulatory Administration at Central, State and District levels. He is also an Independent Director on the Board of Rashtriya Ispat Nigam Limited, Vishakapattanam. Dr. R. N. Trivedi Dr. R. N. Trivedi (62 years) joined as Part Time Non-Official Director (Independent Director) on the Board of SECL on Dr. Trivedi holds a Bachelor s Degree in Technology from the Indian Institute of Technology, Kanpur and also holds a Master s Degree in Arts (Economics), a Doctorate in Economics and a Doctorate in Science (Agricultural Economics) from CSJM University, Kanpur. Dr. Trivedi joined the Indian Administrative Services in 1972 and in the course of his career has held various significant posts such as Collector of Farrukhabad, Lakhimpur Kheri and Lucknow, Principal Secretary to the Government of Uttar Pradesh and Director General Training, Government of Uttar Pradesh. Dr. Trivedi was also the Managing Director of certain public sector undertakings such as, Uttar Pradesh Financial Corporation, Uttar Pradesh State Industrial Development Corporation and Uttar Pradesh Co-operative Spinning Mills Federation. He is also an Independent Director on the Board of Coal India Limited, Kolkata. Shri Amitav Kothari Shri Amitav Kothari (59 years), a Practicing Chartered Accountant, Chairman & Managing Partner of Kothari & Company, Chartered Accountants, Kolkata, joined as Part Time Non Official Director (Independent Director) on the Board of SECL on Shri Kothari holds Masters Degree in Commerce, Bachelors Degree in Law and Fellowship of the Institute of Chartered Accountants of India and Fellow of the British Institute of Management (UK) and Life Member of the Indian Council of Arbitration. Shri Kothari has rich and varied experience spanning over 37 years in the field of Finance, Accounting, Taxation, Bank audit, especially in Banking and Financial Services, Tax Planning and Management, Corporate Laws and Foreign Collaboration etc. Shri Kothari is a Director on the Board of M/s. Kothari & Company, M/s. Maharaja Sree Umaid Mills Ltd and M/s. Kanoria Chemicals and Industries Ltd. Shri Kothari was also a Director on the Board of M/s. Andrew Yule & Co., LIC of India, Allahabad Bank, and Rajasthan Spinning & Weaving Mills Ltd. Shri Kothari was a Member of Settlement Advisory Committee of Industrial Investment Bank of India and Allahabad Bank & Member Oversight Committee of Industrial Investment Bank of India and 15 other Executive Committee Memberships. Shri Kothari was honoured with 24 Awards & Recognition by the various Institutions of national & international repute and he has authored more than 500 Articles which were published in leading Newspapers, Magazines like Financial Express, Business Standard, Economic Times, Taxman, The Chartered Accountants, and Current Tax Reporters. Shri Kothari has served as a Member of Editorial Board of The Chartered Accountant the official journal of ICAI. Shri Kothari has travelled widely and participated in several National & International Seminars and Conferences. He acted as Chairman/ Faculty Member in more than 2000 Seminars & Conferences in Taxation, Company Law, and Banking & Finance & Other allied matters. Directors Profile 25

28 Dr. Amalendu Sinha Dr. Amalendu Sinha (56 years), Director, Central Institute of Mining and Fuel Research (CIMFR), Dhanbad joined as Part Time Non- Official Director (Independent Director) on the Board of SECL on Dr. Sinha holds Ph.D in Applied Geology from ISM Dhanbad, M.Sc. (Applied Geology) & M.Sc. (Tech) in Mineral Exploration. Dr. Sinha joined CMRI in 1977 as Scientist B and gradually elevated to the position of Scientist G by virtue of his keenness, devotion and dedication to Research & Development in the areas of Geo-mechanics and Mining Technology. Dr. Sinha has coordinated and guided a number of Research & Development Projects, in the field of mining technology, geo-environment, coal-bed methane, blasting and explosive and completed successfully a good number of consultancy projects sponsored by the Industry. Dr. Sinha has a large number of research papers published in the journals of repute in India and abroad and also holds few patents to his credit. Dr. Sinha was a member of the Research & Development Committee and Working Group on Underground Coal Gasification (UCG), to synergise various ongoing UCG efforts in India. He was also the member of the Academic Council of Indian School of Mines. He is a member of the General Body and the Board of Studies of Indian School of Mines, Dhanbad. He is the Chairman of Solid Mineral Fuels Sectional Committee (PCD-7) of the Bureau of Indian Standard. Dr. Sinha is presently the Vice President of Indian Geophysical Union (IGU), member of Mining Geological & Metallurgical Institute of India (MGMI), a Fellow of the Institute of Engineers (India). He is also member of many other professional bodies, and represented CMRI/CIMFR in different committees of Government, mining & allied industries of public and private sectors, and academic institutes. Dr. Sinha visited on deputation/assignment to various countries like USA, Germany, Poland, Canada, Czech Republic and Iran. He is also an Independent Director on the Board of Uranium Corporation of India Limited. Shri Ashok Kumar Singh (up to 31 st August, 2011) Shri Ashok Kumar Singh (59 years) took the additional charge of the Chairman-cum-Managing Director, South Eastern Coalfields Limited on 1 st March, 2011 in addition to his existing charge of Chairman-cum-Managing Director of CMPDIL (A Subsidiary of Coal India Limited) and relinquished the charge on Prior to these assignments Shri Singh was a Director (Technical) (Operation) in Central Coalfields Limited since October, 2006 and was in additional charge of the CMD of Mahanadi Coalfields Limited. Shri Singh holds a B.Tech in Mining Engineering from Indian School of Mines (ISM), Dhanbad with a Gold Medal. He did Post Graduate Certificate in 1976 and also Post Graduate Diploma courses in Long wall Mine Mechanisation (DISM) from ISM. He has hands-on experience of over three decades in coal mining sector, wherein and served in various capacities in production and planning and management in different subsidiaries of Coal India Ltd. viz. Bharat Coking Coal India Limited, Central Coalfields Limited, Central Mine Planning and Design Institute Ltd. and Northern Coalfields Limited. Shri Radhey Shyam Singh (up to 31 st July, 2011) Shri Radhey Shyam Singh (60 years) has taken over the charge of Director (Personnel) on of SECL and relinquished charge on superannuation on Shri Singh has initiated a series of measures for strategically aligning Human Resources of SECL to the Company s mission. On account of his in depth knowledge of Mining Industry coupled with his pleasing personality and deep understanding of the underlined dynamics of Human Resources Management, his contribution has facilitated the expansion plan of the organisation. 26 Directors Profile

29 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report Shri Gopal Singh (up to 29 th February, 2012) Shri Gopal Singh (51 years) joined as Director (Technical), SECL on and has relinquished charge w.e.f on being appointed as Chairman-cum- Managing Director, CCL, Ranchi. Shri Singh, is a graduate in Mining Engineering with Master Degree in Opencast Mining (M.Tech) from Indian School of Mines Dhanbad and also holds MBA in Management. Shri Singh has rich and varied experience spanning over 24 years in Coal Industry in different positions and handled multi-disciplinary projects. With his extensive experience in project management and execution, Shri Singh has streamlined the operations of the Company for better management of its resources which has resulted in efficient operations and improved profitability and productivity of the Company. Shri B. K. Joshi PERMANENT INVITEE Shri B. K. Joshi joined as permanent invitee on the Borad of SECL on Shri Joshi is the Chief Operations Manager, South East Central Railway, Bilaspur which is the highest loading zone amongst all the 17 zones of Indian Railways. He holds Master Degree in English Literature, professional Diplomas in Social Works as well as in International Business. Shri Joshi has worked in various capacities such as Chief Freight Transportation Manager of South Eastern and East Coast Railways and also served as a faculty of Railway Staff College, which is the premiere HRD Centre of Indian Railways at Vadodara. Prior to joining Indian Railways, Shri Joshi has served around five years in HRD field at Bokaro Steel Plant of Steel Authority of India Ltd. He has also served on the Board of Trustees of Kolkata Port Trust as well as Vishakhapatnam Port Trust. Shri Joshi has visited many countries like Spain, Italy, Germany, Japan, etc. for attending seminars/ exchange programmes in the field of Railways, Port Management and Logistics. Shri G. Janardhan CHIEF VIGILANCE OFFICER Shri G. Janardhan, an IPS officer of 1992 batch took charge of Chief Vigilance Officer of SECL on He served as Superintendent of Police of Harda, Anuppur, Jabalpur and Ujjain Districts of Madhya Pradesh. He also rendered services overseas in Kosovo, Yugoslavia on United Nations Peace Mission. He has been awarded many police medals such as Durgam Seva Padhak from Govt. Of Madhya Pradesh and Internal Security Medal and President s Police Medal for Meritorious Services from Govt. of India. Prior to joining SECL, he was DIG of Khargone range of Madhya Pradesh. Directors Profile 27

30 Area Map of S.E.C.L. 28 Area Map

31 Directors Report Directors Report SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report Dear Members, South Eastern Coalfields Limited It gives me immense pleasure to present, on behalf of the Board of Directors of your Company, the 26 th Annual Report and Audited Statements of Accounts for the year ended 31 st March, 2012, together with the Auditors Report and comments on the Accounts by the Comptroller & Auditor General of India (C&AG). 1.0 ORGANIZATION: The coal reserves of South Eastern Coalfields Limited are spread over in two States, namely, Chhattisgarh and Madhya Pradesh and the Company is operating 90 mines with 35 Mines in the State of Madhya Pradesh and 55 Mines in the State of Chhattisgarh besides a Coal Carbonization Plant namely Dankuni Coal Complex (DCC) at Dankuni in West Bengal, on lease basis from Coal India Limited. For effective administrative control and operations, the mines have been grouped in three Coalfields, namely, Central India Coalfields (CIC), Korba Coalfields and Mand-Raigarh Coalfields with 13 operating Areas, as under: A. Central India Coalfields 1. Chirimiri Area. 5. Bhatgaon Area 2. Baikunthpur Area 6. Jamuna & Kotma Area 3. Bisrampur Area 7. Sohagpur Area 4. Hasdeo Area 8. Johilla Area B. Korba Coalfields 1. Korba Area 2. Kusmunda Area 3. Dipka Area 4. Gevra Area C. Mand-Raigarh Coalfields 1. Raigarh D. Dankuni Coal Complex 2.0 HIGHLIGHTS OF PERFORMANCE: Your Company has recorded sustained growth in all key physical and financial parameters in the financial year The important physical & financial highlights during the year , are as under: The Company achieved a record production in the current year. The coal production during the year is Million Tonnes (MT) registering a growth of 1.00% over the previous year. The Productivity in terms of output per manshift (OMS), SECL has achieved 6.44 of OMS against AAP Target of The Company achieved an all time high Gross Sales value of ` 19, Crore against the previous year s Gross Sales of ` 13, Crore, registering a growth of 44.57% over previous year. There is a continuous improvement in realization. The realization during the year is ` 19, Crore which is 99.86% of the current year s gross sales. Directors Report 29

32 The Profit Before Tax (PBT) during the year is ` 6, Crore against previous year s PBT of ` 3, Crore. The Company has been consistent in payment of dividend since The interim dividend of ` Crores has been paid on Equity Share Capital. Further, ` 1, Crores has been proposed as final dividend on paid up Equity Share Capital. 3.0 PRODUCTION PERFORMANCE: Production performance of SECL for the financial year as compared to the target and achievement of the previous year is given below: (Fig. in Million Tonnes) Raw Coal Production %age achievement Target Actual Actual against Target %age growth over previous year Coking Coal Non-Coking Coal Total Production from Underground and Opencast Mines: The production of Coal from Underground and Opencast Mines during the year vis-à-vis , is tabulated below: (Fig. in Million Tonnes) Raw Coal Production %age achievement Target Actual Actual against target %age growth over previous year Underground Mines Opencast Mines Total Coal Production and Overburden Removal from Opencast Mines: PARAMETERS %age achievement Target AAP Actual Actual over Target %age growth over last year Coal Production (in Million Tonne) Overburden Removal (M. Cu.Mtrs.) Mechanized Underground Coal Production: The Mechanized Coal Production from Underground mines during the year was million tonnes as compared to last year s million tonnes. 30 Directors Report

33 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 3.4 Productivity: The productivity in terms of Output per Manshift (OMS) is given hereunder: 26 th Annual Report Productivity %age achievement Target AAP Actual Actual against target %age growth over previous year Underground Mines Opencast Mines Overall Coal Stock: The stock of Raw Coal as on 31 st March, 2012 was million tonnes against the closing stock of million tonnes as on 31 st March, FINANCIAL PERFORMANCE: 4.1 The Company has earned a profit before tax in the year ` Crores as against a profit of ` Crores in the previous year. The financial performance of the Company, for the year vis-à-vis , is furnished below: (` in Crore) Sl.No. Particulars Amount Amount 1 Profit before tax for the year Factors contributing to decrease in profit: i Increase in Salary & Wages due to: a) NCWA-IX including their Actuarial impact b) Incremental effect of DA, PLRS (Bonus) and impact of Actuarial Provisions, Settlement Allowance ii Increase in Power & Fuel Cost due to increase in power tariff, fuel cost, etc iii Increase in Depreciation due to addition and exchange rate variation iv Increase in Cost of Materials Consumed due to increase in value and Increase in Repairs & other cost due impact of MARC v Increase in Contractual Expenses due to increase in Coal transport and Surface Miner cost but less OBR transport vi Increase due to Provision for Mine Closure Plan, Underloading Charges and For Bad Debt vii Provision for OBR Adjustment required due to less OB Removal Factors contributing to increase in profit: i Increase in sale due to increase in dispatch and GCV Impact ii Impact of Decretion in Stock iii PPA Income iv Net Increase in profit due to decrease in Finance Cost & Other expenditure and increase in Welfare expense 7.60 v Increase in profit due to increase in Other Income (net of extraordinary item) Profit before tax for the year Directors Report 31

34 4.2 Financial Results: The working results for the year as compared to the previous year, are given below: (` In Crores) PARTICULARS Gross Sales 19, Less : Levies 4, Net Sales 15, Less: Expenditure- Net of income Gross margin Less : Depreciation Gross Profit Less : Interest Profit before Exceptional, Extraordinary items & Tax Less : Extraordinary Items 0.00 (7.15) Profit before tax (PBT) Less : Provision for Taxation : a. Income Tax b. Deferred Tax (89.52) Less : Adjustment of provision for: a. Income Tax of earlier years (61.15) Profit After Tax(PAT) Profit brought forward Distributable Surplus Appropriations: General Reserve CSR Reserve Interim Dividend Final Dividend on Equity share Tax on Dividend Balance carried to Balance Sheet Dividend: The Directors have recommended a final dividend of % (` per Equity Share) in addition to an interim dividend of % (` per Equity share) on 35,97,000 Equity Shares of ` 1000/- (` One thousand) each for the financial year ended 31 st March, 2012, thus making the total dividend of % (` per Equity Share) amounting to ` 2, Crore (Dividend Tax ` Crore) for the year , as against the total dividend of % (` per Equity Share) for the year Directors Report

35 4.4 CAPITAL STRUCTURE: SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report During the year under review, there was no change in the Authroised and Paid-up Capital of the Company, which stood at ` 1, Crore and ` * Crore, respectively. * The entire Paid up Capital is held by Coal India Limited. 4.5 LOAN FUND: Unsecured Loan: (` in Crore) Name of the Financial Institution Balance of Loan as on Additional Loan availed during the year Repayment of Loan during the year Balance of Loan as on IBRD JEXIM Total * *The closing balance of ` Crore as on 31 st March, 2012 include impact of ` Crore on account of exchange rate variation (comprising ` Crore on account of IBRD and ` Crores on account of JEXIM) on the Balance Sheet date. The amount due to Coal India Ltd. (CIL) as on stands at ` Crores. 5.0 SUNDRY DEBTORS: The position of Sundry Debtors (Gross) as on 31 st March, 2012 vis-a-vis 31 st March, 2011 was as under : (` in Crore) As on As on The Sundry Debtors represented about 0.45 month turnover in as against 0.42 month turnover in The provision for doubtful debts stood at ` Crores as on 31 st March 2012 as against the provision of ` Crores as on 31 st March WORLD BANK ASSISTANCE: Two back-to-back loan agreements between Coal India Limited and SECL were signed on for procurement of equipment under Coal Sector Rehabilitation Project (CSRP) financed by IBRD and JEXIM Bank and for implementation of Environmental & Social Mitigation Project (ESMP) a sub-component of CSRP. The disbursement of loan was completed in December, 2003 and the loan utilized was to the extent of US $ 5,36,19, and JEXIM Bank component of Japanese YEN 588,60,61, During the year under review, with the repayment of a portion of the loan, the outstanding loan as on 31 st March, 2012 stood at ` Crores comprising of IBRD loan of US $ and JEXIM loan of Japanese Yen CAPITAL EXPENDITURE: During the year under report, ` Crores was invested as capital expenditure on the Projects under construction as well as on the existing Mines/Units for maintenance of production. Directors Report 33

36 8.0 CONTRIBUTION TO THE EXCHEQUER: During the year under report, the Company has paid ` Crores to the exchequer both Central and State by way of Royalty, Sales Tax, Excise Duty, Cess etc., as per the details given below : (` In Crore) A Royalty : - Chhattisgarh - Madhya Pradesh B State -Sales Tax / VAT /Entry Tax/Commercial Tax : - Chhattisgarh - Madhya Pradesh - West Bengal C Central Sales Tax : - Chhattisgarh - Madhya Pradesh - West Bengal D Central Excise Duty : - Chhattisgarh - Madhya Pradesh - West Bengal Total Total Total Total E Cess/Other Taxes Grand Total Further, the Company has also paid direct Corporate Tax of ` Crores during the year. 9.0 COAL MARKETING: 9.1 Demand Satisfaction (as per AAP Target): Since, the demand of coal during the year under report from the various sectors was Million Tonnes and the off-take against the demand was Million Tonnes by registering a growth of 5.62% over last year. The off-take target was achieved, (102.81% of the target). However, it could have been even better had there been no constraint of availability of wagons. There has been positive growth in off-take to all the major sectors. The details of the sectoral demand and off-take are tabulated below: (Figures in MT) Sector Demand Off-take Demand satisfaction (in %) Power Fertilizer Cement Others Colliery consumption Total Note: - AAP Target has been taken as Demand. 34 Directors Report

37 9.2 Dispatches by Various Modes of Transport: SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report The dispatches of coal by various modes of transport during the year were million tonnes against million tonnes during thereby registering a growth of 5.62%. Barring through Belt" & Consumers own wagon" modes dispatches, there has been positive growth in dispatches by all other modes. The mode-wise dispatches are shown in the following table: (Figures in MT) Mode of Transport Growth (%) Rail % Road % Belt % MGR % Consumers own Wagons % Total % 9.3 Supply and Loading of Wagons: The details regarding supply and loading of wagons during the year , are given below: (Figs. in Boxes/Day) Growth (%) (i) Daily Average Target (ii) Daily Average Offer (iii) Daily Average Supply (iv) Daily Average Loading (Raw Coal) (v) Daily Average Loading (Washed Coal) (vi) Daily Average Loading (Total) (iv + v) e-marketing of Coal: The New Coal Distribution Policy (NCDP) was pronounced and circulated by Ministry of Coal., Govt. of India vide O.M. No /4/2007-CPD dated As per the NCDP, previous linkage system of distribution of Coal has been replaced with the system of distribution of Coal through Fuel Supply Agreement as executed between Coal Companies and erstwhile valid linked consumers. Subsequently, in accordance with the NCDP as approved by Ministry of Coal, Govt. of India, CIL communicated e-auction Scheme 2007 (spot e-auction) for sale of coal under this scheme to the extent of around 10% of the planned production. SECL has successfully offered LT for sale through e-auction, thus registering a growth of 25.98%. The performance of the Spot e-auction during the period , is as under: Period Scheme Offered Qty (tonnes) Booked Qty (tones) Gain over notified price (` in Crores) % of gain over notified price e-auction , Forward e-auction Scheme for consumers has also been launched in SECL. Coal distribution through forward e-auction is aimed at providing access to coal for such coal consumers who wish to have an assured supply over a long period say one year lakh tonnes coal were offered and 5.44 lakh tonnes coal were booked under this scheme during Directors Report 35

38 9.5 Consumer Satisfaction: In the present era of globalization and liberalization, the monopolistic position enjoyed by Coal India is no longer a reality. Besides this, the dynamics of business environment has seen the various policy initiatives in the direction of reforms/liberalization of Coal Sector. The availability of imported coal and other alternative sources of coal and fuel is now a competitive reality. In this changed scenario, coal quality and consumer satisfaction has become all the more relevant than ever. The Company has adopted itself to the changed environment which is evident from the fact that there has not been a single major complaint recorded against the total dispatch of million tonnes. Thus, the Company maintained 100% consumer satisfaction during the year In order to ensure complaint free status on quantity front also, the Company has taken action to install Electronic Weighbridges at all the sidings, as a result of which, the Company has achieved 100% compliance in respect of installation of Weighbridges at the sidings. During the year under report, Million Tonnes of weighed coal and Million Tonnes of sized coal were dispatched out of the total dispatch of Million Tonnes, thus a growth of 5.62% in the dispatch of weighed coal was achieved. SECL has adopted fully variable Gross Calorific Value (GCV) based system for grading and pricing of Non Coking coals from existing Useful Heat Value (UHV) system w.e.f. January 1, 2012 as per Gazette Notification No dated of Ministry of Coal. This is an international practice of trading of coal which has been recommended for adoption by a number of high level committee including the Integrated Energy Policy Committee. This system ensures a high degree of consistency in quality of coal supplies, and result in high consumer satisfaction. The determination of GCV is being ensured through Bomb Calorimeter in order to have optimum accuracy to gain the consumer confidence on this system. Further, this has also resulted into high degree of Consumer Satisfaction PERFORMANCE OF MAJOR EQUIPMENTS: 10.1 Population and Performance of HEMMs: (A) Availability and Utilization of HEMM as percentage of Central Mine Planning & Design Institute Limited (CMPDIL) norms during the year , is shown as under: Name of HEMM Population in %age availability %age utilization Dragline Shovel Dumper Dozer Drill Percentage availability of draglines, dumpers and drills in SECL during the year is either higher or at par with the CMPDIL norms. Utilization of HEMM during the year was low mainly due to non-availability of land/ restricted working area. 36 Directors Report

39 (B) Performance of HEMM under MARC: SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report Availability and utilization of HEMM under MARC as percentage of CMPDIL norms during the year , is shown as under: Name of HEMM Population in % Availability % Utilization M HD Shovels M 3 RH 120 E(HS) Excavators Te CAT 793D Dumpers HP D475A-5 Dozer HP CAT D11T Dozer Percentage availability and utilization of 240 Te dumpers during the year is less due to non-availability of x 57 size tyres. Due to less availability of 240Te dumpers, utilization of 42.0 M 3 shovels was also low during the year Coal Handling Plants: The capacity and utilization of Major and Mini Coal Handling Plants during the year , are given below: (Qty. in Million Tonnes) CHP Nos. Annual Capacity Coal Handled Capacity Utilization (%) Nos. Annual Capacity Coal Handled Capacity Utilization (%) Major CHPs Mini CHPs PLANNING & PROJECT MONITORING: 11.1 Project formulation/capital projects/schemes: A. Approval of Projects/Major Schemes during the year under review: (i) Approved by SECL Board/CIL Board: Sl. No. Name of the Project Capacity (Mty.) Capital Outlay (` Crores.) SECL Board Expansion Projects : 1. Durgapur OC B. Dropped/Closed/Frozen during the year: NIL 11.2 Project Monitoring and Status of Implementation: Date and Sanctioning Authority CIL Board In SECL, 113 major coal projects (80 Underground projects and 33 Opencast Projects) have been approved for a total ultimate capacity of Mty at a capital investment of ` Crores. Directors Report 37

40 A view of an Opencast Mine Out of 113 projects, 35 projects (15 UG & 20 OC) are On-going Projects, 53 projects (41 UG & 12 OC) have been completed as on 31 st March, 2012, 11 underground mines are existing mines. The following under mentioned 14 projects were dropped/shelved on account of poor IRR/adverse geomining condition etc.: 1. Kesla UG 8. Bagdeva OC 2. Tanki/Amritdhara UG 9. Kapildhara UG Augmentation 3. Shakti UG (sanctioned in Mar. 85) 10. Churcha West PSLW(sanctioned in Mar. 85) 4. Budbud UG 11. Karkati UG 5. Kartali UG 12. Chucha West PSLW(Sanctioned in Dec 94) 6. Saraipali UG 13. Bhaskarpara UG 7. Mand Incline 14. Amba UG The following table exhibit investment-wise/technology-wise details of on-going projects and completed and existing mines under implementation as on 31 st March 2012: Total Category No. of Projects A. On Investment basis : Capacity (Mty.) Sanctioned Capital ( ` Crs.) Completed Mine Implementation Status of Projects Existing Mine On-going Projects On Schedule Delayed i) ` 100 Crs.& above ii) ` 50 Crs. & above but less than ` 100 Crs. 3 iii) ` 20 Crs & above but less than ` 50 Crs iv) Less than ` 20 Crs TOTAL B. On Technology basis : i) Opencast ii) UG Project TOTAL Directors Report

41 11.3 DELAYED PROJECTS / SCHEMES: i. Pinoura UG Augmentation: ii. iii. iv. SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report Based on global tender for MPT (Mass Production Technology), the work was awarded to M/s. Shakti Kumar Sancheti but they had finally backed out. Re-tendering was done in 2005 but could not be finalized. Tender for hiring of Continuous Miner floated on , LOI has been issued on and contract agreement signed on Vindhya UG Augmentation: Presently, the mine is being worked out by Bord & Pillar method with deployment of SDLs /LHDs. Contract with M/s. DBT Limited could not be finalized. Re-tendering was done in 2005 but could not be finalized. Tender for hiring of Continuous Miner floated on LOI has been issued on and contract agreement signed on Nawapara Underground: Due to adverse geological conditions, the progress of Incline was slow and the incline could not be connected as per schedule. Now incline drivage has been completed and coal production has been started. Project is expected to be completed by March, Mahan Opencast RPR: Initially project has been delayed due to acquisition of tenancy land. R&R issue is yet to be resolved and Coal production is going on. v. Amera Opencast: vi. Project Delayed due to delay in acquisition and finalization of tender for O.B. Removal and Coal production started from March, Rani Atari Underground: Project delayed due to delay in construction of residential colony and EMP clearance. Land for construction of residential colony is yet to be obtained. vii. Amadand OC: Project has been delayed due to R&R issue. Villagers are demanding employment beyond norms. Matter is sub-judice. Coal production has started from January, The mine has produced MT during viii. Khairaha UG: ix. Project delayed due to delay in getting consent to operate from State Government & Land acquisition. Coal production started from March, Mahan II OC: Project delayed due to delay in construction of coal transportation road. Work order issued for construction of approach road. Mine has produced 1.00 MT during x. Haldibari UG: xi. Project delayed due to construction of approach road & CHP. The mine has started coal production & produced MT. Vijay West UG: Project delayed due to delay in land acquisition, construction of CHP, coal transportation road & getting consent to operate from Environment Pollution control Board CG. Consent to operate is yet to be obtained. Coal production is expecting from 1 st Quarter of Directors Report 39

42 12.0 EXPLORATION: During the year under report, Mtr. of drilling for exploration was undertaken. As a result, 1.6 Billion tonnes (Tentative) of coal reserves has been proved RESEARCH & DEVELOPMENT: The Research & Development activities in Coal Sector are undertaken through Science & Technology(S&T) activities administered through an Apex Scientific Body known as Standing Scientific Research Committee (SSRC). This high level committee is entrusted with the vital task of planning, programming, budgeting and overseeing the implementation of the S&T programmes in Coal Sector. CMPDIL acts as a nodal agency and co-ordinates S&T activities in Coal/Lignite Sectors. In addition to the above, R&D Board of Coal India Ltd., is also approving certain R&D projects/schemes for the Coal Sector. SECL has also a R&D Cell of its own, which is undertaking small R&D schemes SPECIFIC AREAS IN WHICH R&D IS BEING CARRIED OUT BY THE COMPANY: Two R&D projects, namely (1) Optimizing the panel dimensions in Board & Pillar development and depillaring and (2) Improving the overall percentage of extraction of UG coal mining are under implementation MODERNISATION, FOREIGN COLLABORATION AND TECHNOLOGY ABSORPTION: 14.1 Introduction of Surface Miner: Surface Miners have been deployed on hiring basis for coal production at Gevra OC Expansion, Dipka OC Expansion, Kusmunda OC Expansion and Chhal OC projects Introduction of Continuous Miner: The efforts of the Company to modernize its underground mining operations resulted in successful introduction of a Continuous Miner in NCPH mine and a low capacity Continuous Miner at Rani Atari UG mine of Chirimiri Area. Recently Continuous Miner has been introduced at Kurja-Sheetaldhara mine of Hasdeo Area and and Pinoura UG mine of Johilla Area. The Company has taken steps for introduction of Continuous Miner at other underground mines namely Churcha RO UG mine of Baikunthpur Area, Pinoura and Vindhya UG mines of Johilla Area. LOI for introduction of CM package in these mines has already been issued. Surface Miner Continuous Miner 40 Directors Report

43 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report Introduction of Highwall Mining Technology: This method is a remotely operated system to extract coal from thin seams or coal from underlying coal seams in the Highwall of an OC mine which has reached the final Highwall position due to uneconomic stripping ratio or due to surface constraints which limits further mining operation. Highwall Technology has been successfully commissioned in February 2011 at Sharda Mine of Sohagpur Area of SECL, for the first time in Coal India Ltd. The Coal production from Highwall Mining has started MINES SAFETY & RESCUE TRAINING: First Bucyras Highwall Miner Working at Sharda Mine of Sohagpur area of S.E.C.L. The Company believes that good safety performance is an integral part of efficient & profitable business management and is fully committed to total safety in all aspects of its operations. The Company attaches prime importance to Safety of the employees which will not be compromised for any other considerations SAFETY MEASURES: During the year under review, the following steps were taken to improve the safety standards in the mines of SECL. 1. In SECL, due care is taken for safety of the men and machines working in the mines. All possible measures are adopted in advance for the safety in mines. To prevent recurrence of accidents all the recommendations of findings of the accident enquiries are being implemented after deliberation in the Safety Committee meeting (Statutory body). All workers are being trained as per need to make them aware with the changing new technologies and method of workings with due consideration to the Safety norms. 2. All the provisions of the Mines Act & Rules, Coal Mines Regulations etc. and the Circulars issued there under in this regard are being complied with to ensure occupational safety for the employees/workers at their workplaces. 3. To enhance & ensure safety standards for the workers employed in mines of SECL, there exist different types of Safety Forums such as, Workmen Inspectors and Pit Safety Committee (with workers active participation) at Unit level, Safety Committee/Board at Area level, Bipartite and Tripartite Safety Committee at Area and Corporate level. 4. All the recommendations/suggestions made by the Standing Committee on Safety in coal mines, National Safety Conference, Court of Inquiries, Safety Boards, Tripartite, Bipartite & Pit Safety Committees are implemented. 5. In addition to the Mine & Area Management, rigorous inspection of the mines of SECL are also being done in multi-level by DGMS Officers, Senior Management officials, ISO officials, Union Representatives & Pit Safety Committee to check safety status. Suggestions given by them for increasing safety awareness amongst the employees/workers as well as to improve the safety status of mines are implemented immediately. 6. Code of Safe Practices are framed for critical operations and implemented. 7. To enhance and maintain the safety awareness among workers Safety Fortnights and special safety drives are observed in mines of SECL. Awareness and Safety talks in each shift are being practiced on regular basis to develop a safety culture in accordance of Code of Safe Practices". Directors Report 41

44 8. The protective appliances against the danger of fire, dust, noise, air pollution and visibility have been introduced in addition to normal protective Safety appliances being supplied to the workers. This will further help in preventive control of Safety hazards. 9. All the accidents were enquired into by the ISO & DGMS officials and based on their findings and with the approval of competent authority the disciplinary action was taken against the persons found responsible for the accident. Also based on the findings of enquiry report, ISO circulars were issued for taking immediate corrective measures. 10. Thrust on reduction of deployment in areas of high risk with regard to danger of roof and side falls through mechanization by introducing (i) Short-wall Mining to work under protective roof, (ii) Continuous Miner & High Wall Mining to reduce exposure of persons to risk areas. 11. Roof bolting with resin capsules has been introduced in all watery mines. 12. Risk Assessment for all the mines of SECL has been done either externally or internally (by individual unit management). All the risk prone areas identified and accordingly Safety Management Plan has been prepared for time framed implementation. 13. The rescue stations/rooms have been fully equipped with round-the-clock emergency services available within 35 KMs of all mines under the SECL command area (except Rani Atari mine of Chirimiri Area). 14. The major area of risk is assessed for each mine and preventive actions are also Roof Testing in Underground Mine of SECL provided to educate workers. DO s and DON Ts with posters publicity and propaganda is adapted. All the accidents affected persons were called before the Pit Safety Committee Meeting and the cause of accident as well as the mistake / defect in the system is analyzed to avoid occurrence of such accidents. Training and refresher training is provided to all the workmen. All the resources are made available at the worksite with its know-how to avert accidents in future SAFETY TRAINING: 1. To enhance and maintain the Safety Awareness amongst workers, Safety Fortnights and Special Safety drives are observed in the mines of SECL. Awareness and Safety talks in each shift are being practiced on regular basis to develop a Safety culture in accordance of Code of Safe Practices". 2. The initial training is imparted to all new entrants and refresher training to all employees as per statute. Thrust on training and retraining of Supervisors, Support Personnel, Roof Bolters, HEMM operators and Contractor s workers were maintained Tripartite Safety Committee Meeting 42 Directors Report

45 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report as a strategy to reduce accidents due to roof/side falls in underground mines, accidents in opencast mines and at surface of mines. The achievement on providing training to the various personnel, during the year , is as under: (No of Workers Trained) Category of persons Special Training: Support personnel HEMM Operators Supervisory staff Contractor s workers Refresher Training: Final Day Function of the Annual Safety Week Celebration 15.3 ACCIDENTS STATISTICS: The accidents statistics for the year under review are tabulated as under: Fatal Accidents Fatalities Serious Accidents Serious Injuries Fatality rate per MT output Fatality rate per 3 lakh Manshift Serious injury rate per MT output Serious injury rate per 3 lakh Manshift Figs. for the year & are subject to reconciliation by DGMS. Directors Report 43

46 15.4 STATUS OF RESCUE SERVICES: The Company has strength of 604 active rescue trained personnel (Field Volunteers) against the statutory requirement of 584. Regular refresher trainings in rescue & recovery work are imparted to executives, supervisory staff & workers at the Mines Rescue Station (MRS), Manendragarh of Hasdeo Area and five other Rescue Rooms (RR) of different Areas. Inter-Area Mines Rescue Competition The Company is also maintaining five Rescue Rooms with Refresher Training facilities (RRRT), one each at Johilla, Sohagpur, Bisrampur, Baikunthpur and Kusmunda Areas, to impart refresher training. In addition, five Rescue Rooms one each at Chirimiri, Bhatgaon, Jamuna-Kotma, Raigarh and Rajgamar (Korba) are also in operation. The Rescue Station/ Rescue Rooms are situated within 35 Kms. of every underground mine as per statute to facilitate rescue & recovery work as early as possible, except Rani Atari Sub-Area mines of Chirimiri Area. There exist specially designed & constructed training galleries at MRS and RRRTs to provide for initial and refresher training in simulated environment of fire, spontaneous heating and explosion in underground mines. Pit practices are also done to make the rescue trained persons acquainted with changing underground workings. Rescue Apparatus like Self Contained Breathing Apparatus, BG-174, BG-4, Reviving apparatus and Short Duration Breathing apparatus are maintained in the Company as per statute. List of some main rescue apparatus and their strength are given below: Sl.No. Description Existing Strength (Nos.) 1 BG-174 (Self Contained Breathing Apparatus) BG-4 (Self Contained Breathing Apparatus) 30 3 Short Duration Breathing Apparatus (SDBA) 11 4 Reviving Apparatus 54 5 Life Oxygen Pack 11 6 Oxygen Type Self Rescuer Concrete Cutter 12 8 Fall Arrestor 01 9 Gas Chromatograph Directors Report

47 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report The services of the Mines Rescue Station, Manendragarh and other Rescue Units of SECL were utilized not only for mining related activities but also for the rescue activities involving the general public and properties. Rescue services of SECL performs other than rescue jobs such as Ventilation Pressure Quantity Survey, Inspection of mines and Training of mine personnel in fire fighting, First Aid, Gas testing, SCSR & Mine Air Analysis by Gas Chromatograph on regular basis ENVIRONMENT, ECOLOGY AND AFFORESTATION: Clean environment for sustainable development is the prime concern of SECL and it is achieved by every employee s contribution and responsibility towards environmental performance. To achieve this objective, various participative initiatives are practiced and promoted. A three tier system for environmental monitoring and audit is followed in compliance with the environmental protection statutes, from planning to production and mine closure. The Company s track record in implementing the Environmental Management Plans (EMPs) have been consistently excellent. All the projects are being planned with environmental measures as an integrated sub-system of Mine Management like closed conveyor transport and loading for its coal through silos at its mega mines like Gevra & Dipka, massive multi-species plantation for biodiversity conservation, top soiled management, rain water harvesting, introduction of new mining technologies like high wall mining, surface miner, etc, and voluntarily aligning its mining activities as per the requirements of international environment management system ISO Accordingly, a comprehensive EMP for each project is being prepared to safeguard the environment and ecology in the mining areas. Considering the importance of clean air for all its stakeholders SECL has undertaken several measures to mitigate the aspect of dust in its mining areas. More than 64 mobile water sprinklers have been deployed for dust suppression. About 38 KMs of the fixed water sprinklers are functioning in and around coal handling plants, coal stock yards and transportation roads for dust suppression. Mobile and Fixed Water Sprinklers Further in order to minimize pollution and to ensure clean environment, the Company has planted 3,86,050 saplings during the year and the total number of saplings planted as on date exceeds 2,60,00,000. Directors Report 45

48 Grass Bedding on Dump Slope A view of Nursery During the year under report, EMPs for 3 new / expansion projects have been approved by Ministry of Environment & Forests, Government of India. Also, Terms of Reference (TOR) for 1 expansion project has been accorded by the Ministry of Environment & Forests, Government of India. 46 Directors Report

49 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report During the year, MoEF granted Stage-II (Final) Forestry Clearance for 4 projects / proposals and Stage-I (In-principle) Forestry Clearance for 2 projects / proposals, as detailed below: Stage II Forestry Clearance: 1. Chirimiri Colliery : Ha. 2. Manikpur OC : Ha. 3. Rajendra-Nawagaon : Ha. 4. Jhiria UG (New Rajnagar UG) : Ha. Stage I Forestry Clearance: 1. Rajgamar UG : Ha. 2. Jhiria UG : Ha. The Company has also taken steps to provide clean environment in and around the city of Bilaspur and for this purpose, road side plantation for a distance of 70 KMs has been undertaken. Road side plantation at Gevra Directors Report 47

50 Plantation on the barren land To conserve the scarce resource of water, SECL has undertaken water conservation and rain water harvesting in its mines and colonies. Water conservation at Hasdeo Area 48 Directors Report

51 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report To reduce the biological contamination of streams, SECL has commissioned six numbers of Domestic Effluent Treatment Plants (DETP) having a capacity of 8.63 MLD and covering a population of 48,900. A view of Domestic Effluent Treatment Plant 17.0 TELECOMMUNICATION: In order to facilitate data communication facility between Company Headquarter and all Areas, Broad net VPN Connectivity of 512 Kbps bandwidth has been provided at respective locations. CUG mobile SIM cards with connection of BSNL have been provided to all the executives in SECL, HQ and areas. This has improved voice communication/sms facility between HQ and all the areas. The SMS based Sales & Dispatch Reporting System", has been started for Gevra, Dipka & Kusmunda Areas for sending the weighment data from Weighbridges through SMS/GPRS to main server where it is utilized for making an online Sales Reporting System. A Centralized Mail Messaging System is under operation since February 2009 with control at CIL Headquarters, Kolkata. Various wireless modes of communication like VHF sets, Hand Held Walkie-Talkie sets and Radio Trunking Systems are in use in Areas of SECL for voice communication in the mines. RF-ID Technology Based Boom barrier vehicle access control system have been installed in Gevra and Dipka open-cast projects to provide an effective check platform for entry/exit of a number of transport vehicles in and out of OCP COMPUTERISATION: The status of various IT/System related activities as well as projects being implemented in SECL till are briefed as under: Fully Implemented: The Store module of Online Materials Management System (OMMS) has been implemented at Central Stores, Korba through CoalNet and running successfully for the last three years. e-tendering is being facilitated through the official Web-site of the Company. Also process of up Directors Report 49

52 gradation of SECL web-site is underway,which will further incorporate more information and details as per the guideline of CVC. Road Sales Spot e-auction, forward Auction, Fuel-Supply Agreements (except Power) has entirely been computerized under Coal-Net S&M module. Offers, Money-Receipt, DO Generation, Credit- Note Generation, different MIS on Road-sales are generated through Coal-Net. A comprehensive Data-base is maintained for each and every business activity related to Road sales for meeting various enquiries from external statutory agencies. Under Implementation: GPS based OITDS (Operator Independent Truck Dispatch System) for improving the HEMM Management as well as to improve the utilization of departmental dumpers/shovels etc is under trial run stage at Gevra, Dipka and Kusmunda Areas. However for want of operating-license from WPC, Government of India, voice segment in the system could not be started yet and only data segment is operational. E-Registration of contractors for the works of Coal and Sand Loading & Transporting, OB removal and Wagon loading and supply of Goods and Materials etc. had been entrusted to M/s. ITI Limited. Online registration of contractors is under process. SMS/GPRS based Sales & Dispatch Reporting System" on trial basis is being implemented by M/S BSNL at Gevra, Dipka and Kusmunda Areas. Financial-Module, PIS Module under Coal-Net is running partially. All the transactions related to payment of various bills to outside agencies are made through Financial Accounting System module of Coal-Net. However after implementation of Payroll-System in the Coal-Net, final Accounts preparations job under Coal-Net shall be complete. Production module is running for last five years under Coal-Net ERP wherein Annual Action-Plan- Data, Actual Production Data, OB Removal data are being regularly fed and preserved for the last five years. Apart from this, MOC & other grievance cell etc. are also running MANPOWER: Your Company takes pride in its highly motivated and competent human resource that has contributed its best to bring the Company to its present elevated position. The Company has always believed that human resource is its most important asset and continues to work for its development and realization of its potential. To achieve growth and to foster motivational climate, several initiatives were undertaken in the HR area during the year. The thrust on optimal utilization of manpower with focus on improvement in productivity continued. The productivity of the employees is reflected in the consistent achievement of target of the Output per Manshift (OMS) over the years. The manpower of the Company as on 31 st March, 2012 stood at with the breakup, category-wise, as indicated below: Sl. No. Category Manpower as on Executives Supervisory Staff Highly Skilled & Skilled Semi-Skilled & Unskilled Piece Rated Ministerial Staff Trainees Total Directors Report

53 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report EMPLOYMENT OF SC/ST/OBC: The policies and directives of the Central Government on recruitment and promotional schemes of Scheduled Castes/Scheduled Tribes and Other Backward Classes (OBC) are being strictly implemented by the Company. The manpower strength of SC/ST/OBC as on 31 st March, 2012 vis-à-vis 31 st March, 2011 is tabulated below: Category Manpower Strength (in Nos.) % age to the Total Manpower SC % 20.64% ST % 22.73% OBC % 18.41% OTHERS % 38.22% TOTAL % 100% Status of sanction of employment of Project Affected Persons, Compassionate Employment & Fresh recruitment during the year :- Particulars Project Affected Persons 165 Compassionate Employment MEDICAL UNFIT 08 DEATH IN HARNESS 434 Fresh Recruitment MINING SIRDAR 132 ACCOUNTANT 51 TOTAL 790 (Male Female 86) Directors Report 51

54 I. Employments to Project Affected Persons (PAPs) were sanctioned to enhance the capacity of the existing mines and opening of new mines. II. III. Employment to 4 nos. PAPs were sanctioned under Disabilities Act. A new scheme has also been introduced to prepare Project Affected Persons as trainees for statutory mining post. During the year , 9 PAPs were selected for undertaking training. This has resulted into improvement in cordial relations with adjoining villagers HUMAN RESOURCE DEVELOPMENT: Your Company, as part of its endeavor of being a learning organization, has a policy of continuously investing in training and development of its employees. In consonance with the Corporate Vision of being a Leading Energy Supplier, your Company facilitates the development of all-round competence of its people. During the year under report, the various training programs were conducted at the Management Development Institute (MDI) Bilaspur, Central Excavation Training Institute (CETI) Gevra, Basic Engineering Training Institute (BETI) Korba & Regional Training Institute (RTI) Bisrampur and also at Vocational Training Centers situated in different Areas of SECL TRAINING IMPARTED DURING : HRD Department has successfully achieved the target as per MoU. The Target as per the MoU was to impart training to 470 Executives (i.e % of total executives in SECL) while the department imparted training to 1278 executives (i.e % of total executives in SECL). The details of training programs conducted for executives are as under: S. No. of Executives trained % Training Programmes Target No. Progs. MDI Outside Achivement 1 Certified Training in Project Management % 2 Certified Training In Contract Management % 3 Training of Medical Professionals in % Occupational Health & Safety 4 Conducting Workshop for awareness on Sustainable Development % 21.2 CAREER DEVELOPMENT PROGRAMMES: Various career development programmes were conducted by HRD Department viz. Coaching Classes for Overmanship Examination. Coaching Classes for Mining Sirdar Examination. Coaching Classes for 2 nd Class Examination. Coaching Classes for Non-Executive of all discipline for appearing in examination for promotion from Non-Executive to Executive Cadre SPECIAL PROGRAMMES: Special training programme for up-gradation of Knowledge & Skill and Technical Update for Executives/ Supervisors and Workers have been organized by HRD Department, viz. Training Programmes to improve knowledge and skill of Workmen, Supervisors (Mining, Electrical and Mechanical) 52 Directors Report

55 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report Technical Update for Mining, E&M and Excavation personnel Women Empowerment and Development Management Development Programmes including Safety Management Computer Training programmes in English and Hindi Special Training for Medical/Para Medical Staff Special Training for SC/ST/OBC Special Workshop on Vigilance Awareness Training Programmes for Contractors workers 21.4 Awareness Amongst Workers: In each area, programmes were conducted on Occupational Health, Prevention of Heart Disease and HIV/ AIDS to bring awareness amongst the Workers. These programmes were successful with huge participation of workers In addition to above, Initial, Refresher & Special programmes for support personnel, Supervisors & Contractors were also conducted in Areas WOMEN EMPOWERMENT: Women employees constitute 5.18% Health awareness programme of SECL s workforce. During the year , programmes for women empowerment and development were organized. Your Company actively supported and nominated its female employees for programmes organized by Women in Public Sector (WIPS). Training has resulted all-round development of women employees of our Company. Women have started taking active part in the different activities in the mines and workshop as well. They are also taking active part in social activities for upliftment of women residing nearby, as a result, WIPS has been recognized at the 22 nd National Meet of the Forum of Women in Public Sector held on th February, 2012 at IIM Ahmedabad under the aegis of Standing Conference of Public Enterprises (SCOPE), wherein delegates from SECL participated and WIPS, SECL had bagged the following awards in the said meet: 2 nd Prize in the category of BEST ENTERPRISE AWARD" 1 st Prize in WIPS activities in Western Chapter Women Empowerment Programme by SECL Directors Report 53

56 Best Newsletter Award" won by the Western Chapter headed by the Senior Manager (Civil) of SECL HQ. Mrs. Kirti Tiwari [Sr. Manager, (Civil) HQ] who is the president of WIPS Western Chapter has been elected as General Secretary Apex (at National level) and has taken over charge w.e.f INDUSTRIAL RELATIONS: SECL has laid down clear Industrial Relation Policy providing for mechanism to discuss the various issues under bilateral forums for which a Code of Conduct has been signed between the management of SECL and Unions affiliated to 5 Central Trade Unions i.e. INTUC, HMS, BMS, AITUC & CITU. Under the aforesaid Code of Conduct the following bipartite forums are functioning in SECL: 1. Steering Committee at Company Level. 2. Welfare Board at Company Level. 3. Safety Board at Company Level. 4. Joint Consultative Committee at Area Level & Sub-Area Level. 5. Welfare Committee at Area Level & Sub-Area Level. 6. Safety Committee at Area Level & Sub-Area Level. The periodicity of the bipartite discussion/meetings with the unions under IR system is as under: UNIT Sub Area Level Area Level Company Level Excellence Award bestowed to Shivani Mahila Mandal, Bisrampur by Shri A. K. Sinha, CMD, SECL. PERIODICITY Monthly Bi-monthly Quarterly The various grievances/demands are discussed in I.R. meetings under I.R. system to avoid any industrial unrest. The daily feedback of Industrial relation and Law and Order situation is being taken from the Areas. With the introduction of above measures, harmonious Industrial Relations were maintained which has resulted in cost reduction, increase in production, productivity, improvement in quality of work, industrial peace and overall improvement in the quality of life. Moreover, SECL has also produced MT Coal in the year under report, which is the highest Coal production amongst the Subsidiaries of Coal India Limited. The information pertaining to strike, mandays loss, production loss in the reporting year, is as under: Sl.No. Item Number of strikes 2* 2 2 Number of Law and order incidents Nil Nil 3 Mandays lost (in lakh) Coal production loss ( in lakh tonnes) * The Industrial Relation Scenario in SECL for the year recorded 2 strikes on and , the details of which are as under: 54 Directors Report

57 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report ) Strike on was called by affiliates of 5 Central Trade Unions i.e. INTUC, HMS, BMS, AITUC & CITU over the issue of payment of ` 25,000/- PLR/Ex-gratia to employees of Coal Industry. 2) Strike on was called by INTUC, HMS, BMS, AITUC & CITU Unions. The cause of strike was pertaining to the policy decision of Government of India. The above mentioned production loss, however, was made good through motivation of employees by way of well established Industrial Relation System / Participative Culture in the company WELFARE ACTIVITIES: 24.1 Amenities provided: Apart from the statutory welfare facilities, the Company provides housing, medical and other facilities for its employees and schooling facilities for the employees children at all the Areas and Coalfields. The relevant information, is indicated below: 1 Housing: a. Number of houses available as on ,679 b. Percentage of satisfaction as on % c. Additional construction during the year Water Supply: a. Water supply to the population covered as on ,41,490 b. Additional population covered during the year ,940 3 Education: a. Schools and Colleges 259 b. Library 24 c. School Bus 134 Meritorious wards of employees are given scholarship under Coal India Scholarship Scheme from class 5 th onwards. Financial assistance is being given to the wards of employees pursuing professional courses viz. Engineering, Medicine etc. Cash reward is also given to the wards of employees those securing 90% and above in class 10 th and 12 th, in their Annual Academic result. Students benefitted Amount Distributed (Nos.) (` in Lakhs) Coal India Scholarship 4, Financial Assistance Cash Reward Health and family welfare programme: SECL accords a very high priority on providing adequate and modern medical services to its entire people. Well equipped health centers have been established for catering to preventive and curative health. The Company s responsibility as a corporate citizen does extend to the National Health Programme by educating and motivating the employees and general public to adopt Small Family norms. The relevant information of health related facilities in SECL, are as under: Sr.No. Particulars Nos. a. Hospitals : 17 b. Dispensaries : 47 c. Hospital beds : 952 d. Ambulances : 151 Directors Report 55

58 Ambulances distributed by CMD amongst all areas of SECL Further, in order to provide tertiary level medical treatment to the employees, a 200 bedded Multi Speciality Hospital constructed by the Company at Bilaspur had successfully been commissioned in October 2001 with the assistance of M/s. Apollo Hospitals Corpn. Ltd. and License Agreement has been executed with Apollo Hospitals Corporation Limited granting a right to maintain and operate the Hospital efficiently. A view of Apollo Hospital, Bilaspur In consideration of the lease, not only the employees of the Company but also the employees of the Coal India Ltd. and its Subsidiaries referred to this Hospital, are getting treatment at concessional rates. 56 Directors Report

59 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report In its endeavor to achieve the desired result, the company organizes Family Planning Camps, in and around its Coalfields/Areas, besides organizing periodical Eye camps and General health/medical camps. A view of Medical camp organised by SECL Various Community development camps were organized during the year , wherein 30,683 persons in total were benefitted in 1222 camps, the details of which are hereunder: Name of the Camp No. of Camps held No. of Beneficiaries Eye Camp School Camp CSR Dispensary Immunization Camp Diagnostic Camp Malaria Camp Cancer Camp AIDS day 1 75 Anti tobacco day 1 50 Breast feeding week Healthy baby show Nutrition week Gastroscopic Camp 1 53 Women s Day Orthopaedic Camp Directors Report 57

60 A view of Medical Awareness Programme organized by SECL The Below Poverty Line (BPL) families are provided free OPD facilities in our hospitals and dispensaries. Mobile Ambulances with ECG & Pathological facilities visit daily in the peripheral villages and providing free treatment to the needy families on the spot. In 2,907 village camps, around 1,57,519 beneficiaries got the medical treatment. 36 School health camps were also organized where 4764 beneficiaries were examined. A view of Polio camp A view of Medical camp at School 58 Directors Report

61 24.3 SPORTS, GAMES & CULTURAL ACTIVITIES: For all-round growth and high morale, sports and cultural competition were conducted for the employees, their wards and family members. Further, 15 Gyms, 19 Stadiums and 57 Playgrounds are available for sports activities. Dronacharya Indoor Stadium first of its kind in Chhattisgarh is located in Gevra where the wards of the employees, PAPs are imparted training by coach in Lawn Tennis, Badminton, Carom, Table Tennis etc. The wards trained in this Indoor Stadium are representing the Chhattisgarh State at the National Level. Besides, 78 Clubs/Institutions, 42 Children Parks and 28 Community Halls provide facilities for recreational and cultural activities. During , 03 events were conducted by CIL i.e. CIL Inter Company Chess, Badminton & Table tennis. SECL stood Winner in the Chess tournament and Runner up in the Badminton tournament. SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report CORPORATE SOCIAL RESPONSIBILITY (CSR): Your Company has always appreciated its social responsibility as a part of Corporate Governance philosophy. During the year , ` 5635 lakhs were allocated under CSR as against ` lakhs during the year CSR allocations are used for economic, environmental and social upliftment of communities in and around the Coal mines in the major thrust areas such as Community Development, Infrastructure, Drinking Water/ Sanitation, Literacy enhancement / Women empowerment, Educational aids and Health care/medical Corporate Social Responsibility Policy: A policy on Corporate Social Responsibility has been formulated by Coal India Limited (CIL), the Holding Company, for implementation in CIL and its Subsidiaries. The objective of the CSR policy is to make CSR a key business process for substantial development for the society. The CSR policy takes into account, the following measures: a) Welfare measures for the community at large including employees and their families. b) Proper rehabilitation of Project Affected Persons (PAPs) based on Rehabilitation & Resettlement (R&R) policy separately formulated and expenditure on R&R activities would be included in the Project Cost. Directors Report 59

62 c) Contribution to the society at large by way of social and cultural development, imparting education, training and social awareness especially with regard to the backward class and generation of employment opportunities. d) Protection and safeguard of environment and maintaining ecological balance Sources of Fund and areas to be covered under CSR: The fund for the CSR is allocated based on 5% of the retained earnings of previous year subject to minimum of ` 5/- per tonne of coal production of previous year. Out of the above, 4% is allocated for CSR activities to be carried out in the vicinity of Coalfield and balance 1% is allocated for carrying out CSR activities by Subsidiary Companies in the State to which the Subsidiary Company belongs. The responsibility of the Subsidiaries shall be to execute CSR within a radius of 15 KMs for every project and Areas including Headquarters. Further, Board of Directors of Subsidiary Companies can approve specific cases of projects beyond mining areas within the respective State Scope of activities covered under CSR: i) Education ii) Water supply including drinking water iii) Health care iv) Environment v) Social Empowerment vi) Infrastructure for Village Electricity/Solar Light / Pawan Chakki, recurring expenditure to be borne by the beneficiaries, which may be partially financed by Company. vii) Sports & Culture viii) Generation of employment opportunities & setting up Co-operative Societies ix) Infrastructural Support x) Grant / donation / financial assistance/sponsorship to reputed NGOs in upliftment of the standard of the society xi) Miscellaneous 25.4 Activities undertaken under CSR: Major focus areas of CSR activities were identified and major CSR projects launched during the year are as under: Gramodaya: SECL has taken new initiative to set up Rural Technology Parks under the title GRAMODAYA for social empowerment of the families around the coalfields. SECL would be establishing 8 CSR Parks in the 8 operating Districts of Chhattisgarh and Madhya Pradesh. Baseline study was carried out for one such park was carried out at Village Nipania, Bilaspur, C.G. and the construction of the Technology Park is on the verge of completion. Ganiyari Hospital: A new Pharmacy Bhavan has been constructed at Public Healthcare Centre and Hospital at Village Ganiyari, Bilaspur, C.G. This would facilitate to the community health programme run by the hospital. The said program is assisted by 104 trained health workers selected from 53 different tribal villages. This hospital has strength of 35 beds with operation theatre facility in place. A team of Doctors from this centre often visit nearby villages to impart at the door medical check-up and treatment to the locals. Trauma Care Center: For quick and prompt treatment of accident victims as well as any causalities due to calamity, a state of the art Trauma Care Centre is going to be established at Korba, a first of its kind in the State. Solar Lanterns: SECL has committed itself for an all round development of villages under its CSR. Continuing the lead, a Solar Lantern distribution program was organized by SECL. A total of 1050 Solar Lanterns has been distributed to residents of various villages thorough different Areas of SECL. 60 Directors Report

63 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report Distribution of Solar Lanterns by Mr. A.K. Singh, Director (Personnel), SECL Tube well/ Well under CSR Program of SECL Drinking Water: SECL has spent around ` lakhs for arrangements of clean water supply in the nearby villages by installing/repairing hand-pumps, tubewells, digging/cleaning/deepening of ponds, wells etc. School Infrastructure: Education has been a prime focus of the CSR activities of SECL. The Company has spent around ` lakhs for upliftment of educational standard of the villages around mining areas by construction/up-gradation of school infrastructure, financial assistance, adoption of tribal students, etc. Directors Report 61

64 A view of School at Pondki, Amarkantak A view of D.A.V. Public School at Bilaspur Flood Relief Raigarh: SECL has assisted District Collector, Raigarh for various flood relief activities for the affected people of Raigarh District by extending financial support of ` 26 lakhs. Dattak Putri Yojna: Financial assistance to 1083 poor girl students / needy girl students for primary education through the District Collectors of Chhattisgarh has been provided. Udaan Yojna: Adoption of primitive tribal girl child under UDAAN YOJNA" of Chhattisgarh Government. The work of strengthening and re-construction of the damaged ring road of Korba for an amount of ` 18 crores has been taken up by SECL. SECL has taken up work of providing and fixing of street lights all along the ring road at Ambikapur, Chhattisgarh for a length of 11 kms. Financial assistance for water management development works at Achanakmar Tiger Reserve, Bialspur, C.G. for forest animal has been approved by SECL. The Company has spent ` 1, lakhs during the year towards CSR activities, out of the allocated fund of ` 5,635 lakhs. Thus, the unspent fund of ` 3, lakhs, which is being carried forward to the next financial year, will be utilized by undertaking new projects as well as against ongoing activities under CSR RAJBHASHA IMPLEMENTATION (OFFICIAL LANGUAGE POLICY): During the year under report, the company made special drive for promotion of Hindi in official work in Headquarters and units. In this direction, Hindi workshops were organized on quarterly basis at Management Development Institute (MDI) HQ Bilaspur. The scheme of teaching here was especially focused towards usages of Hindi in day-to day official correspondence as well as usage of simple and correct language in writing. Company level Hindi Computer training programs were conducted at MDI to promote the IT friendly usages of Rajbhasha. All the computers have also been installed with MS-Unicode program/hindi software to carry out office work in hindi, more effectively. The Rajbhasha Pakhwada (September 14-28) of the year gone by witnessed enthusiastic participation of employees across all the cadres. In this, noting and drafting competition for executives, Essay and elocution competition, picture based hindi story writing, Rajbhasha slogan and many other competitions 62 Directors Report

65 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report were organized to spread awareness in the use of simple hindi. In some competitions, the entries for employees were given in two segments i.e., of Hindi and non-hindi background. The winners in all the competitions were suitably rewarded. Hindi Implementation committee meetings in the presence of Hindi observer from ministry of Coal were held quarterly to monitor and review the progress of the Hindi implementation programs at the area / Headquarters level. A book titled "Koyla Ratna" is published by Rajbhasha Vibhag, SECL HQ in each quarter. It has broadened its popularity by publishing colorful articles in the form of short stories, write up, and essay etc. ranging in taste from literature to health, meditation & many others. Apart from providing a literary arena to all the sections of Coal society, this magazine also provides the details of all ongoing Hindi Implementation programs and publishes details of useful policies concerning employees in general VIGILANCE: Hindi Pakhwada organized in SECL Headquarter, Bilaspur The Vigilance Department of the company, during the year , made all possible efforts to check and control corruption in the areas of various activities of the Company. Vigilance activities are being carried out in line with the guidelines of CVC, covering the aspects of surveillance & detection, preventive vigilance and punitive measures. The functioning of Vigilance Department is in a fair and transparent manner, more specifically in improving the systems and to update all concerned with the extant rules/guidelines of the Company. The main functions of the department are as follows: Investigation of the complaints received directly, routed through CVC, Ministry, CBI, Coal India etc. and taking necessary action as deemed fit as per merit of the case. Periodic/regular and surprise inspections of sensitive spots. Review and streamlining of procedures/guidelines where there is scope for corruption or misconduct. Directors Report 63

66 Extending help to CBI. Review of Annual Property Returns submitted by the Officers of the Company. Conducting enquiry proceedings against the charged officers and taking disciplinary actions against them. Arranging Customer Awareness Programmes to settle the disputes and to solve the problems of stake holders. Arranging in-house training programmes for the executives working in the company to educate those, regarding rules and procedures of the Company 27.1 Preventive Vigilance: a) Organization of Vigilance Training Programmes: Vigilance Training Programmes are being conducted by Vigilance department regularly at different areas and at Management Development Institute, SECL, Bilaspur. Senior executives of different disciplines, like Mining, E&M, Finance, Materials Management, Sales etc., from Areas as well as SECL Hqrs are attending these programmes. During the year under report, various Vigilance Awareness Programmes were conducted in the company, the details of which are given below: A one day workshop on Vigilance Awareness was organized by SECL, Vigilance Department on at Baikunthpur Area, wherein 151 senior level officers from Chirimiri, Bisrampur, Bhatgaon, J&K and Baikunthpur Areas participated actively. S/Shri R.K. Choubey, SP, CBI(retd.), P.C. Mishra, Chief Manager(Systems), IICM, Ranchi and P.K. Sinha, CVO, BCCL/SECL addressed the gathering regarding conducting departmental proceedings, common irregularities in tendering and procurement with specific reference to Coal Sector and complaint handling and facets of vigilance respectively. Vigilance Awareness Workshop organized at MDI, SECL, Bilaspur 64 Directors Report

67 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report A Vigilance Awareness Workshop was organized at MDI, Indira Vihar, SECL, Bilaspur from to wherein 180 officials from Hqrs and all the Areas of SECL actively participated. Senior faculty members viz. S/Shri Jogendra Nayak, AIG(P)/OSD, CBI, New Delhi, V.N. Verma, Supdt of Police, EOW, CBI, New Delhi, S. Gagarin, IRTS, SECR, Bilaspur, Kishalay Bhattacharya, Dy. GM(Academics), IICM, Ranchi, V. Pathak, Chief Manager(MM), SECL, Bilaspur and S.K. Mitra, PIO, SECL, Bilaspur expressed their views and enlightened the participants in different subjects like Role of CBI and PSU Vigilance in combating corruption, Common mistakes in conducting Disciplinary proceedings, Motivation and Stress Management, Importance of honesty, CDA Rules of the CIL, Contract and procurement management with special reference to CVC Guidelines and RTI Act respectively. A two days Vigilance Workshop was organized at Management Development Institute, Indira Vihar, SECL, Bilaspur on 16th and 17th Feb Senior faculty members, S/Shri R.K. Choubey, Retd. SP, CBI Academy Ghaziabad and R. K. L. Reddy, Sr. Manager(MM/Vig), SECL, Bilaspur expressed their views in different subjects viz. PC Act, Sanction order, suspension, disciplinary proceedings, Court cases and other vigilance matters. About 114 participants from Hqrs and different Areas of SECL actively participated in the workshop and cleared their doubts. b) Organization of Vigilance Awareness Week 2011: Under the guidance of CVC, New Delhi, Vigilance Awareness Week-2011 was observed from to The week began with Pledge at 11 AM on 31st October 2011 in all Areas and headquarters. Inaugural function was held at SECL Hqrs, Bilaspur in which Shri S.K. Ghosh, Ex- DGP, West Bengal was the Chief Guest. The Functional Directors, officers and staff were present. Interactive Vigilance Workshops with consumers/service providers were organized in three Areas viz. Dipka, Bhatgaon and Sohagpur Areas. In these workshops, the area officials and the contractors, service providers and consumers from all the Areas of SECL participated actively. The grievances put forwarded by the service providers were noted for redressal thereof, wherever necessary. A Workshop on Vigilance Awareness was organized at Management Development Institute, Indira Vihar, Bilaspur on 4 th November, 2011, which was inaugurated by CMD, SECL. Shri R.K. Choubey, retired SP, CBI Academy, Ghaziabad was the guest faculty of the function. Also, an interactive session with Customers/Service providers was organized at the same venue in which Functional Directors of the company were present to redress the grievances. A Workshop on Vigilance Awareness organized at MDI, Bilaspur On 5 th November 2011, a closing ceremony was organized in MDI, Bilaspur in which Shri S.S. Gagarin, Chief Commercial Manager, SEC Railways, Bilaspur was the Chief Guest of the function. During the closing ceremony, the winners of various competitions that were organized during the Vigilance Awareness Week were given prizes and certificates by the Chief Guest. Directors Report 65

68 c) System improvements undertaken: Vigilance department has taken up some cases relating to procurement and transportation contracts for Intensive examination. During the year , on the basis of periodic inspections, many circulars and guidelines were issued for system improvement. Some of the systemic improvement measures on the basis of case studies and surprise inspections & customer s meet conducted are listed below: Repealing of contradictory clauses adversely affecting performance of Security Services Contracts Vacation of un-authorized occupation of Company quarters Development of sources of spares for machinery from ancillary units as decided by the Management Strengthening and streamlining and back-up thereof, of records at weighbridges Redesigning of truck traffic in road sale of coal in the Mine premises, to ease out congestion Strengthening of security measures to avert presence of un-authorised persons in the Mine premises Finalization of tenders within the stipulated validity period Automatic and user-friendly system for effecting refund of Earnest Money deposits & Security Deposits 27.2 Investigative Vigilance: a. Preliminary Investigation: 121 complaints received during the year along with 70 complaints carried forward from the previous years were taken up for preliminary verification. Verification has been completed in 113 complaints. After preliminary verification and subsequent investigation, disciplinary action has been initiated wherever necessary. 11 (Eleven) vigilance cases were registered during the year and taken up for investigation besides 15 vigilance cases carried forward from the previous years. In respect of 13 vigilance cases, investigation has been completed. b. Oral Inquiries/Departmental Proceedings: 16 Regular Departmental cases (major penalty 14 cases and minor penalty 2 cases) were registered during the year under reference in addition to the 13 RDA cases (major penalty 11 cases and minor penalty 2 cases) carried forward from the previous years. During , 08 cases (major penalty -5 cases and minor penalty 3 cases) have been disposed off. At present 21 cases (major penalty - 20 cases and minor penalty 1 case) are under finalization as on Steps taken to activate the Vigilance Machinery: The vigilance department is headed by Chief Vigilance Officer with one General Manager(Vigilance) and other experienced Officers from various specialized disciplines like Mining, Materials Management, Excavation, Civil, Survey and Personnel. The activities of Vigilance department are mainly focused on preventive and participative vigilance and on enhancement of vigilance awareness among all stake holders. The efforts of Vigilance department, aim to maintain: Fair & transparent systems, management processes and corruption free governance. Initiation of prevention measures to control the menace of corruption and other malpractices in the Company Instilling principles of honesty and integrity in the work culture of the Company. Speedy & time bound disposal of the complaints SECURITY: The aim of the Security Department is to protect the properties of the Company and provide collective security to management, staff and employees with a view to accelerate production through industrial peace. 66 Directors Report

69 SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited 26 th Annual Report Proactive measures taken by the department has fruitfully ensured no illegal mining of coal in lease hold areas of SECL and minimized theft/pilferage of coal and Company s property. This enormous task has been possible due to immense dedication and sincerity of 870 departmental, 320 CISF and 2825 Ex-servicemen/Civilian security personnel deployed in SECL. To demonstrate the high morale, motivation level and alertness, security personnel participated in the magnificent parade on the auspicious occasion of national festivals, Republic Day and Independence Day. Republic Day Parade at SECL 28.1 Celebration of Chhattisgarh and Coal India/SECL Foundation day: SECL has celebrated 11 th Chhattisgarh Foundation Day and 36 th Coal India Foundation Day on 1 st November, 2011 as well as 26 th SECL Foundation Day on 25 th November, Directors Report 67