Contents. 1. Vision & Mission of NCL Board of Directors Bankers & Auditors Notice 8

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1 Contents Page Nos. 1. Vision & Mission of NCL 1 2. Board of Directors 2 3. Bankers & Auditors 6 4. Notice 8 5. Important Financial Information and Operational Statistics Chairman s Statement Directors Report Performance against MOU Parameters - Annexure - II Certificate of Compliance of Corporate Governance Guidelines Balance Sheet as at 31st March, Statement of Profit & Loss Account for the year ended 31st March, Cash flow statement for the year ended 31st March, Statement of Standalone results for the Year ended 31st March, Annexure - IX of Clause 41 of the Listing Agreement Notes (1 to 19) to Balance Sheet Notes (20 to 32) to Profit & Loss Account (a) Significant Accounting Policy (Notes-33) 136 (b) Additional Notes on Accounts (Notes-34) Addendum to the Directors Report (a) Auditor s Report and Management s Replies 148 (b) Comments of the Comptroller and Auditor General of 164 India under Section 143 (6)(b) of the Companies Act, 2013.

2 NORTHERN COALFIELDS LIMITED Vision To emerge from the position of domestic leader to leading global player in the energy sector by adopting best practices from mine to market with due care to environmental and social sustenance. Mission To produce planned quantity of coal efficiently and economically in an eco-friendly manner with due regard to Safety, Conservation and Quality. 1

3 ANNUAL REPORT Board of Directors Shri T. K. Nag Chairman-cum-Managing Director PART-TIME OFFICIAL DIRECTORS R. K. Sinha B. K. Saxena PART-TIME NON OFFICIAL DIRECTOR A. K. Gupta S. J. Sibal PERMANENT INVITEES Deepak Nath FUNCTIONAL DIRECTORS C. P. Rai Ms. Shantilata Sahu Gunadhar 2 Pandey P. S. R. K. Sastry

4 NORTHERN COALFIELDS LIMITED NORTHERN COALFIELDS LIMITED (A Subsidiary of Coal India Limited) CIN U10102MP1985GOI Board of Directors (As on ) Chairman-cum-Managing Director Shri Tapas Kumar Nag Functional Director Ms. Shantilata Sahu Director (Personnel) Shri Gunadhar Pandey Technical Shri P. S. R. K. Sastry Director (Finance) and CFO Part-time Official Directors Shri Rajesh Kumar Sinha Joint Secretary, Ministry of Coal, New Delhi. Shri B.K.Saxena Director (Marketing), Coal India Ltd. Part-time Non Official Directors Shri Surinder Jit Sibal Director Shri A.K.Gupta Director Permanent Invitees Shri Deepak Nath Chief Operations Manager, East Central Railways, Hazipur. Shri C.P.Rai Addl. Principal Chief Conservator of Forest (LM), Govt. of Madhya Pradesh, Bhopal. Company Secretary (Actg.) Shri D. K. Sharma 3

5 ANNUAL REPORT Chairman-cum-Managing Director NORTHERN COALFIELDS LIMITED (A Subsidiary of Coal India Limited) Board of Directors (During the year ) Shri Tapas Kumar Nag (w.e.f ) Ms. Shantilata Sahu (Addl. Charge) (upto ) Functional Directors Ms. Shantilata Sahu Personnel (Whole Year) Shri N. Das* Technical (Upto ) Shri A.D. Mathur Technical (Upto ) Shri A.K.Pandey Finance (Whole Year) Shri Gunadhar Pandey Technical (w.e.f ) Part-time Official Directors Shri Vivek Bharadwaj Joint Secretary, Ministry of Coal, New Delhi (Whole Year) Shri B. K.Saxena Director (Marketing), Coal India Ltd., Kolkata (Whole Year) Part-time Non-Official Directors Shri Surinder Jit Sibal Director (Whole Year) Shri A.K.Gupta Director (Whole Year) Permanent Invitees Shri N.N.Misra Director (Operations) NTPC, New Delhi (Upto ) Shri Deepak Nath Chief Operations Manager, East Central Railways, Hazipur, Bihar. (Whole year) Shri C.P.Rai Addl. Principal Chief Conservator of Forest (LM), Govt. of MP, Bhopal (Whole Year) Company Secretary Shri D. H. Lalwani (Upto ) Shri D. K. Sharma (w.e.f ) * Shri Niranjan Das ceased to be Director (Technical), NCL w.e.f in terms of MOC s letter No. 21/3/2007-ASO dated and order No. CIL/C-5/A(ii)/N.Das/D(T),NCL/B-380 dated issued by GM(P), CIL, Kolkata. 4

6 NORTHERN COALFIELDS LIMITED 5

7 ANNUAL REPORT Bankers & Auditors Bankers Bank of Maharashtra, Kolkata Andhra Bank, Kolkata UCO Bank, Kolkata United Bank of India, Kolkata Corporation Bank, Kolkata Allahabad Bank, Morwa Union Bank of India, Morwa Oriental Bank of Commerce, Kolkata I D B I Bank, Kolkata Canara Bank, Kolkata Bank of India, Kolkata Bank of Baroda, Kolkata Punjab National Bank, Kolkata Syndicate Bank, Singrauli ICICI Bank, Kolkata State Bank of India, Morwa Axis Bank, Singrauli ICICI Bank, Singrauli 6

8 NORTHERN COALFIELDS LIMITED Auditors Statutory Auditors M/s. Prakash & Santosh, Chartered Accountants, Kanpur ( U.P. ) Branch Auditors M/s. B. C. P. Jain & Co. Chartered Accountants, Bhopal ( M.P.) M/s. S. K. Lulla & Co., Chartered Accountants, Gwalior ( M.P.) cost Auditors M/s. K. B. Saxena & Associates, Ansal City Centre Hajratganj, Lucknow ( U.P. ) Branch Auditors M/s. S. G. & Associates, M/s. B. Mondal & Associates, 8A, Shanti Ghosh Street 61/H/15 Rajanaba Krishna Street near Shyam Bazar Metro Station, Kolkata (WB) Kolkata (WB) secretarial Auditor Shri Krupesh Mankodi Practising Company Secretary, A-2, Sneh Vihar Flats, 130, Napier Town, Jabalpur (MP) Registered Office P. O. Singrauli Colliery Distt. Singrauli ( M.P.)

9 ANNUAL REPORT No.NCL/Board/13(AGM)/ / th June, 2015 To, 1. M/s. Coal India Ltd., Member, NCL, Coal Bhawan, New Town, Rajarhat, Kolkata Shri S. Bhattacharya, Chairman, Coal India Ltd., Member, NCL, Coal Bhawan, New Town, Rajarhat, Kolkata Shri B. K. Saxena, Director (Marketing), Coal India Ltd., Member, NCL, Coal Bhawan, New Town, Rajarhat, Kolkata Shri T. K. Nag, Chairman-cum-Managing Director, Member, NCL, Singrauli (MP). 5. All Directors/Permanent Invitees, NCL Board/Chairman, Audit Committee, NCL. 6. M/s Prakash & Santosh, Chartered Accountants, Statutory Auditors, NCL, Ronald Complex, Flat No. 8, Upper Floor, West Cott Building, 37/17, The Mall, Kanpur (UP) 7. M/s. K. B. Saxena & Associates, Central Cost Auditors, NCL, Ansal City Centre, Hajratganj, Lucknow (UP). 8. Shri Krupesh Mankodi, Practising Company Secretary, Secretarial Auditor, NCL, A-2, Sneh Vihar Flats, 130, Napier Town, Jabalpur (MP). N O T I C E 30 th ANNUAL GENERAL MEETING Notice is hereby given that the Thirtieth Annual General Meeting of the Members of Northern Coalfields Limited will be held at A.M. on Saturday, 27th June 2015 at the Registered Office of the Company at Singrauli Colliery, Distt. Singrauli (M.P.) to transact the following business: Ordinary Business : 1. To consider and adopt the Audited Financial Statements of the Company for the financial year ended March 31, 2015 including the Audited Balance Sheet as at March 31, 2015 and Statement of Profit and Loss for the year ended on that date and the Reports of Board of Directors, Statutory Auditor and Comptroller and Auditor General of India thereon. 2. To confirm the payment of two interim dividends paid on equity shares for the Financial year as final dividend for the year To appoint a Director in place of Ms. Shantilata Sahu, who retires by rotation in terms of Section 152(6) of the Companies Act 2013 and being eligible, offers herself for re-appointment. 4. To appoint a Director in place of Shri B. K. Saxena, who retires by rotation in terms of Section 152(6) of the Companies Act 2013 and being eligible, offers himself for re-appointment. special Business : 5. Ratification of Remuneration of the Cost Auditors for the Financial Year To consider and if thought fit to pass, with or without modifications, the following as an ordinary resolution RESOLVED THAT pursuant to the provisions of Section 148(3) of the Companies Act, 2013 read with Rule 14 of the Companies (Audit and Auditors) Rules, 2014 (Including any other statutory modification(s) or reenactment thereof for the time being in force)the remuneration 8

10 NORTHERN COALFIELDS LIMITED Sl. No. Name of the Cost Audit Firm Status Cost Audit Fees Recommended TA & Out of Pocket Expenses At Actual subject to the limit of 50% of Audit Fees At Actual subject to the limit of 50% of Audit Fees At Actual subject to the limit of 50% of Audit Fees Reimbursement of Service Tax 1. M/s K. B. Saxena & Associates, Lucknow Central Auditor Rs. 2,15, At Actual 2. M/s S. G. & Associates, Kolkata Branch Auditor Rs. 78, At Actual 3. M/s Goyal, Goyal & Associates, New Delhi Branch Auditor Rs. 78, At Actual By Order of the Board of Directors Registered Office : P.O.Singrauli Colliery, Distt. Singrauli (M.P.) Date : 19/06/2015 of Cost Auditors for the Financial Year as recommended by the Audit Committee in its 71st meeting and approved by the Board of Directors of Northern Coalfields Ltd vide Item no. 194/C-14 in its 194th Meeting held on at Singrauli, as detailed below, be and is ratified:- Sd/- Company Secretary (Actg.) Note: 1. Members are also requested to accord their consent for convening the meeting at a shorter Notice under section 101 of the Companies Act, A member entitled to attend and vote at the meeting is also entitled to appoint a proxy or proxies to attend and vote instead of himself/herself and proxy need not be a member of the Company. In order to be effective, the Proxy form duly completed should be deposited at the registered office of the Company not less than forty-eight hours before the scheduled time of the Annual General Meeting. 3. The explanatory statement pursuant to Section 102 (1) of the Companies Act, 2013 with respect to the special business set out in the Notice is annexed. 4. Pursuant to the provision of Section 171(1)(b) and 189(4) of the companies Act,2013, the registers required to be kept open for inspection at every Annual General Meeting of the company, shall accessible during the continuance of the meeting to any person having the right to attend the meeting. Copy to: 1 Company Secretary, Coal India Ltd., Coal Bhawan, New Town, Rajarhat, Kolkata GM(Fin)/Inch., NCL, Singrauli. 3 Chief of Internal Audit, NCL, Singrauli 4 GM(System), NCL, Singrauli with a request to upload the notice of AGM on NCL s Website. 9

11 ANNUAL REPORT EXPLANATORY STATEMENT PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013 Item No. 5 : Ratification of Remuneration of the Cost Auditors for the F/Y Section 148(3) of the Companies Act, 2013 read with Rule 14 (a)(ii) of the Companies (Audit and Auditors) Rules, 2014 dealing with remuneration of Cost Auditors, requires that the remuneration recommended by the Audit Committee shall be considered and approved by the Board of Directors and ratified subsequently by the shareholders. The remuneration of the Cost auditors appointed for the Financial Year has been recommended by the Audit Committee in its 71st meeting and subsequently has been approved by the Board of Directors of the Company vide Item no. 194/C-14 in its 194th Meeting held on at Singrauli. The same is put up to the shareholders of the Company for ratification. None of the Directors or Key Managerial Personnel or their relatives is concerned or interested in this item. By Order of the Board of Directors Place : Singrauli Date: 19/06/2015 Sd/- Company Secretary (Actg.) 10

12 NORTHERN COALFIELDS LIMITED Turnover 10! 9! 8! (Rs. in Crores) Thousands 7! 6! 5! 4! 3! 2! (Rs. in Crores) Thousands Profit Gross Margin (PBDIT & CPRA*) Profit before CPRA*/Tax Profit after CPRA*/Tax Gross Margin (PBDIT & CPRA*) Profit before CPRA*/Tax Profit after CPRA*/Tax

13 ANNUAL REPORT Off-Take Over Burden Removal Composite Production (In Million Tonne) (In Million Cu. M.) (In Million Cu.M.) Coal Production (In Million Tonne) 12

14 NORTHERN COALFIELDS LIMITED Statutory Levies- M.P. Stowing Excise Duty 3% MPGATSVA 12% Others 2% Excise Duty 10% Royalty 47% Clean Energy Cess 17% Central & State Sales Tax 9% Statutory Levies- U.P. Stowing Excise Duty 2% Excise Duty 18% Others 10% Royalty 26% Clean Energy Cess 24% Central & State Sales Tax 20% 13

15 ANNUAL REPORT Statutory Levies (TOTAL)/Contribution to Exchequer MPGATSVA, 9% Stowing Excise Duty, 2% Others, 5% Excise Duty, 12% Royalty, 41% Clean Energy Cess, 19% Central & State Sales Tax, 12% How Rupee is spent CSR Exp., 1% Other Expenditure, 6% Provisions, 2% Overburden Removal Adjustment, 14% Depreciation/ Amortization/ Impairment, 5% Cost of Material Consumed, 22% Contractual Expenses, 17% Employee Benefit Expenses, 26% Repairs, 3% Power & Fuel, 4% 14

16 NORTHERN COALFIELDS LIMITED IMPORTANT FINANCIAL INFORMATION (Rs. in Crores) Year (A) RELATED TO ASSETS & LIABILITIES: (1) Shareholders funds (a) Equity (b) Reserves & Suplus (c) Less: Misc. Exp. not W/O Net Worth (2) Redeemable Pref. Shares (3) Loan (4) Capital Employed (5) (i) Net Fixed Assets (ii) Current Assets (iii) Net Current Assets(W/Capital) (6) Current Liabilities (7) (a) Sundry Debtors (Net) (b) Cash & Bank Balances (8) Closing Stock of: (a) Stores & Spares (Net) (b) Coal (Net) (c) Other inventories (Net) (9) Av. Stock of Stores&Spares (Net) (B) RELATED TO PROFIT/LOSS (1) (a) Gross Margin Less: Depreciation (b) Gross Profit Less: Interest & Financial Charges (c) Net Profit before Tax (2) Provision for Income Tax Profit after Tax (3) (a) Gross Sales (b) Net Sales(after levies & Dev. etc) (c) Average Net Sales per month (4) Cost of Good Sold (Sales - PBT) (5) (a) Total expenditure (b) Sal. & Wages(Gross; Rev. only) (c) Stores & Spares(Gross;Rev.only) (d) Power & Fuel(Gross;Rev.only) (e) Interest(Gross;Rev.only) (f) Depreciation(Gross;Rev.only) (6) Av. Cons. of Stores & Spares/month Gross Margin (PBDIT) (Rs. Crs.) Profit before Tax (Rs. Crs.) Profit after Tax (Rs. Crs.) Note: (1) For the year onwards, figures are derived on the basis of Revised Schedule VI of the Companies Act, 1956 (2)Figures for FY have been changed according to regrouping of accounts comparable with those for the year

17 ANNUAL REPORT (A) PROFITABILITY RATIOS IMPORTANT FINANCIAL RATIOS/PERCENTAGES Year (1) As % Net Sales (a) Gross Margin (b) Gross profit (c) Net Profit (PBT) (2) As % Total Expenditure (a) Sal & Wages (Gross; Revenue) (b) Stores & Spares(Gross; Revenue) (c) Power & Fuel(Gross;Revenue) (d) Interest(Gross; Revenue) (e) Depreciation(Gross; Revenue) (3) As % Capital Employed (a) Gross Margin (b) Gross profit (c) Net Profit (4) Operating Ratio [(Sales-Profit)/Sales] (B) LIQUIDITY RATIOS (1) Current Ratio (Current Assets/Current Liabilities) (2) Quick Ratio (Quick Assets/Current Liabilities) (3) Working Capital as % of (a) Capital Employed (b) Net Fixed Assets (C) TURNOVER RATIOS (1) Capital Turnover Ratio (Net Sales/Capital Employed) (2) Working Capital Turnover Ratio (Net Sales/Working Capital) (3) Sundry Debtors as no.of months (a) Gross Sales (b) Net Sales (4) As Ratio of Net Sales (a) Sundry Debtors (b) Coal Stocks (5) Stock of Stores & Spares (a) Av. Stock/Annual Consumption (b) Closing Stock as no. of months con (D) STRUCTURAL RATIOS (1) Debt : Equity (2) Debt : Networth (3) Networth : Equity (4) Net Fixed Assets : Networth (E) SHAREHOLDER S INTEREST (1) Earnings Per Share (EPS) (Rs.) (N.P. after tax & Pref.Div/No. of Equity) (2) Book Value per Share (Rs.) (Networth/No. of Equity) (3) Dividend Per Share (Rs.)

18 NORTHERN COALFIELDS LIMITED OPERATIONAL STATISTICS Year A. Operational Statistics: (1) (a) Total Coal Production (Lakh Tes) (b) Revenue Coal Prodn.(Lakh Tes) (c) Total O.B. Removal(L. CuM) (d) Revenue O.B. Removal(L. CuM) (2) Raw Coal Despatch (Lakh Tes): Power Cement Others Total (3) Manpower: As on 1st April As on 31st March Average (4) Productivity: (a) Average per man per year (Tes) (b) Output per Manshift (Tes) B. Related to Cost Sheet: (1) Earning per Manshift (EMS) (Rs.) (2) Av. Cost of Production of Net Saleable Coal (Rs. per Te.) (3) Av. Sale Value of Net Saleable Coal produced (Rs. per Te.)

19 ANNUAL REPORT OUR MANAGEMENT TEAM Sl No. EMP_NO EMP_NAME GRD DESG DES POST_DT DT_BIRTH DSP NAME MRITYUNJOY MISHRA E8 GM(MINING) 4/9/2013 5/9/1958 MINING O.K.PRASAD E8 GM(MINING) 9/15/2013 5/23/1956 MINING RAJA RAM SINGH E8 GM(MINING) 8/23/2014 1/24/1956 MINING SINGESHWAR SINGH E8 GM(MINING) 11/19/2012 1/12/1958 MINING P.K.SINHA E8 GM(MINING) 2/1/2015 1/1/1962 MINING SUNIL KR.JHA E8 GM(MINING) 8/23/ /12/1959 MINING CHANCHAL GOSWAMI E8 GM(MINING) 4/20/2015 2/19/1962 MINING CHITRANJAN SINGH E8 GM(MINING) 11/30/2012 7/11/1959 MINING A.N.PANDEY E8 GM(MINING) 9/4/2013 6/7/1964 MINING S.K.GOMASTA E8 GM(MINING) 9/25/2008 9/25/1963 MINING P.K.BISWAL E8 GM(MINING) 1/31/2009 9/24/1962 MINING MANOJ KUMAR PRASAD E8 GM(MINING) 2/7/2015 9/3/1962 MINING BIPIN KUMAR E8 GM(MINING) 2/7/2015 1/16/1963 MINING AJIT KUMAR CHOWDHARY E8 GM(MINING) 1/31/2015 1/3/1962 MINING SANJAY MISHRA E8 GM(MINING) 4/24/2015 2/24/1964 MINING ATMESHWAR PATHAK E8 GM(MINING) 9/13/2010 1/27/1961 MINING L.P.GODSE E8 GM(MINING) 10/8/2012 6/1/1964 MINING CHANDRA KRISHNA E8 GM(MINING) 10/1/ /1/1958 MINING RAM BABU PRASAD E8 GM(MINING) 17/5/ /2/1964 MINING NISHI KANT PATHAK E8 GM(E&M) 3/30/ /25/1955 (E&M) R.K.BERA E8 GM(E&M) 6/19/ /4/1957 (E&M) G.P.AGRAWAL E8 GM(E&M) 8/13/2007 3/26/1958 (E&M) P.K.GAUR E8 GM(E&M) 2/17/2015 1/10/1960 (E&M) A.CHAKRAVARTY E8 GM(E&M) 2/16/2015 4/4/1956 (E&M) RANJIT VERMA E8 GM(E&M) 6/25/ /6/1958 (E&M) A.K.MUKHERJEE E8 GM(E&M) 11/25/ /28/1957 (E&M) GOVIND KUMAR SHARMA E8 GM(CIVIL) 5/24/2012 8/30/1955 (CIVIL) AJOY KUMAR CHOUDHARY E8 GM(CIVIL) 1/3/2015 1/26/1960 (CIVIL) ASHOK KUMAR CHOURASIA E8 GM(CIVIL) 4/23/ /6/1956 (CIVIL) R.R.JHA E8 GM(EXCAV) 1/6/2011 9/1/1956 (EXCAVATION) R.N.BANDYOPADHYAY E8 GM(EXCAV) 12/17/ /27/1956 (EXCAVATION) 18

20 NORTHERN COALFIELDS LIMITED TARUN KUMAR E8 GM(EXCAV) 12/15/2014 1/11/1958 (EXCAVATION) BRAJPAL SINGH E8 GM(EXCAV) 12/18/2012 7/20/1957 (EXCAVATION) RAJASEKHAR KOTTURI E8 GM(EXCAV) 2/3/2015 8/1/1959 (EXCAVATION) A.KUMAR E8 GM(EXCAV) 9/4/2012 9/11/1956 (EXCAVATION) M.B.V.SIVA KUMAR E8 GM(EXCAV) 2/28/ /2/1956 (EXCAVATION) VIPIN BHADRISH E8 GM(EXCAV) 7/22/2014 2/17/1957 (EXCAVATION) SURESH CHANDRA E8 GM(EXCAV) 11/29/ /15/1957 (EXCAVATION) M.K.CHOUHAN E8 GM(EXCAV) 12/23/2014 3/1/1958 (EXCAVATION) V.A.SIDDIQUI E8 GM(EXCAV) 6/17/2014 3/11/1957 (EXCAVATION) T.V.GANGADHAR E8 GM(EXCAV) 7/5/2011 5/28/1958 (EXCAVATION) ASGAR ALI E8 GM(EXCAV) 11/10/2008 4/7/1957 (EXCAVATION) N.L.GYANANI E8 GM(EXCAV) 3/5/2013 6/4/1958 (EXCAVATION) P.K.UPADHYAY E8 GM(FINANCE) 11/5/2012 8/10/1955 FINANCE & ACCOUNTS P S K RAO E8 GM(FINANCE) 4/10/2014 8/13/1955 FINANCE & ACCOUNTS P. J. MOHAN RAO E8 GM(FINANCE) 7/3/2013 6/11/1956 FINANCE & ACCOUNTS SUJIT KUMAR MITRA E8 GM (QC) 2/6/ /7/1957 MINING O.P.NARAYAN E8 CH.MEDI- CAL-SRVC I.B.MISHRA E8 CH. MEDICAL SRVC 7/24/2006 3/9/1957 MEDICAL 5/7/2005 2/19/1958 MEDICAL P.K.SINHA E8 GM(MM) 11/16/2012 1/5/1957 MATERIALS MANAGEMENT N.DUTTA E8 GM(MM) 9/2/ /21/1957 MATERIALS MANAGEMENT A.K.VERMA E8 GM (SALES&QC) K.PATHAK E8 GM (PERS&ADM) A.JAGADESWAR REDDY E8 GM (PERS&ADM) 10/1/2012 1/10/1956 SALES/MRKT/ QUAL CNTL 10/15/2007 6/20/1956 PERSONNEL & ADMN 10/1/2012 5/6/1956 PERSONNEL & ADMN ARVIND KUMAR SINGH E8 GM (SYSTEM) 7/10/2003 5/15/1957 SYSTEM AND E D P UMA KANT PANDEY E8 GM (IE) 3/3/ /2/1956 INDUSTRIAL ENGG BALKRISHNA SHARMA E8 CGM (ENVIRON) 11/9/2012 3/16/1957 ENVIRONMENT S.K.MESHRAM E7 CM (E&T) 20/8/ /9/1958 E&T 19

21 ANNUAL REPORT Chairman s Statement Dear Shareholders, On behalf of the Board of Directors of Northern Coalfields Limited ( NCL), I welcome you to the 30th Annual General Meeting of NCL and present before you the Annual Report of your company for the Financial Year Your Company produced Million Tonnes of coal during the year with a growth of 5.60% over previous year. On the Financial front, however, your Company recorded better performance in as much as that the profit Before Tax (PBT) of your Company during was Rs crores registering a growth of 10.66% over PBT of Rs crores during the year The Company paid Dividend of Rs crores for the year which works out to % of the Paid-up Equity Share Capital. Off-take of Coal during the year was MT against the previous year s Off-take of MT registering a growth of 2.19%. Your Company followed the concept of workers participation in management and maintained cordial industrial relations. Your Company also paid due attention on employees welfare and social amenities. Corporate Social Responsibility (CSR) activities undertaken by your Company during the year included construction of roads, water supply, community hall, skill development, healthcare, education. Your Company has complied with the conditions of Corporate Governance as stipulated in the Guidelines on Corporate Governance for Centeral Public Sector Enterprises (CPSEs) issued by the Department of Public Enterprises, Government of India. As required under the said guidelines a separate section on Corporate Governance has been added in the Directors Report and a Compliance Certificate obtained from the Statutory Auditors has been annexed to the Directors Report. The physical and financial results achieved by NCL have been possible due to relentless efforts made by the employees of the Company. I am sure, all employees will continue to put in concerted efforts to scale newer heights and thus achieve the targets set for the Company not only for Coal Production but also on all fronts. Coal being the prime source of energy, demand for the same is ever increasing. For the year , your Company has been assigned a target of MT for coal production. We also need to focus our attention on liquidation of coal stocks so as to maximize sales realization and in turn to achieve much better financial results. I am confident that with sustained efforts of all concerned, NCL will grow at desired pace in the Financial Year and years ahead. I also take this opportunity to convey our sincere thanks to the Government of India, Ministry of Coal, Coal India Limited and all Stakeholders for the trust reposed on us and opportunity given for further growth. Sd/- ( T. K. NAG ) Chairman-cum-Managing Director Northern Coalfields Limited 20

22 NORTHERN COALFIELDS LIMITED DIRECTORS REPORT To The Members/Shareholders, Northern Coalfields Limited, On behalf of the Board of Directors, I have great pleasure in presenting the 30th Annual Report of Northern Coalfields Limited (NCL) together with the Audited Accounts for the Financial Year ended 31st March, PERFORMANCE HIGHLIGHTS OF THE YEAR The highlights of performance for the year are as under : l NCL has achieved coal production of million tonnes during the year which is 5.60 percent higher than actual production of million tonnes during the year The Over Burden Removal of million Cu.m.during the year was 0.88% higher than OB Removal of million Cu.m during the year l l l l Offtake at million tonnes during the year registered a growth of 2.19 percent over the Offtake of million tonnes during the year Record turnover of Rs crores during the year is 1.60 percent higher than last year s turnover of Rs crores. NCL recorded Profit before Tax (PBT) of Rs crores during the year , and has registered a increase of percent over previous year s PBT of Rs crores. Profit after Tax (PAT) was Rs crores compared to previous year s PAT of Rs crores. Dividend for the year being % of paid up equity share capital, amounts to Rs crores against % of paid up equity share capital amounting to Rs crores for the year l Earning per Share (EPS) during the year has been increased upto 21 l l l Rs against EPS of Rs previous year. Efforts for greening the environment and pollution control continued during the year. During , 5.08 lakh saplings have been planted. The total saplings planted upto 31st March, 2015 reached lakhs. NCL continued to practice the Worker s participation in management, as a result industrial relations remained healthy and harmonious. Employees welfare, community development and human resource development continued to be focus areas. 1.0 FINANCIAL REVIEW 1.1 The Company has achieved a Gross Turnover of Rs.13, Crores (Net turnover Rs. 9, crores) during the year against Gross Turnover of Rs.12, Crores (Net turnover Rs. 9, crores) during the year recording a growth of 6.14% (in Gross Turnover) and 1.60% ( in Net Turnover). The financial results for the year , as compared to previous year, are given in the following table : (Rs. in crore) Description Gross Margin Less: Depreciation Gross Profit Less: Interest & other financial charges Profit before Tax Less: Provision for Tax Profit after Tax Less: Transfer to CSR Reserve Transfer to Sustainable Development Reserve 3.08 Transfer to General Reserve Dividend on Equity Share Capital Provision for Tax on Distributable Profit Surplus carried to Balance Sheet ( ) (734.28)

23 ANNUAL REPORT SHARE CAPITAL 1.7 SALES REALISATION The Authorized Share Capital of the Company as on 31st March, 2015 remained at Rs.1, crores comprising of 40,00,000, 10% Cumulative Preference Shares of Rs.1000/- each and 1,00,00,000 Equity Shares of Rs.1000/- each. The paid-up share capital as on 31st March, 2015, remained at Rs crores comprising of 17, 76,728 equity shares of Rs.1000/- each. 1.3 TRANSFER TO RESERVE An amount of Rs crores, equivalent to 10% of Profit after Tax, has been transferred to General Reserve. 1.4 DIVIDEND The interim dividend already paid amounting to Rs crores, will be treated as final dividend on the equity share capital for the year The dividend paid amounting to Rs crores (previous year Rs crores) work out to % of the paid-up equity share capital (previous year %) i.e. Rs. 25, per share against Rs in previous year. The dividend distribution tax paid amounting to Rs Crores (previous year Rs Crores). 1.5 BORROWINGS The Company has not taken any loan from CIL, Government or any financial institution during the year. 1.6 CAPITAL EXPENDITURE During the year , NCL has made a capital expenditure of Rs crores against the budget of Rs crores. The expenditure has been mainly on acquisition/ addition of HEMM, other plant & machinery and on buildings etc The status of billing and sales realization for the year as compared to previous year is given below : Year Billing Realisation including receipt % Realisation (Rs. in against dues of earlier years against billing crore) (Rs. in crore) Note : Incentive bills for the year has been included in net billing and previous year figures are also regrouped accordingly. 1.8 COAL SALES OUTSTANDING DUES The position of coal sales dues outstanding as on as compared to is given hereunder : (Rs. in crore) Consumer As on As on UPRVUNL NTPC Others Total OUTSTANDING DUES ARE MAINLY DUE TO FOLLOWING REASONS : (a) Bills on accounts of transit fees for the period to amounting to Rs Crores is yet to be realized from UPRUNL. However, UPRVUNL has submitted a Bank Guarantee of Rs crores against dues of UP Forest Transit Fees in the month of January, 2015 and NCL has submitted a Bank Guarantee for Rs crores to the Principal Secretary, Environment & Forest, Govt. of UP in the month of March, (b) Dispute on GCV issue for the period to has been settled and NCL made the provision of Rs crores which is still lying as dues in the books of accounts. 22

24 NORTHERN COALFIELDS LIMITED With regard to interest on delayed payment of coal sales dues against coal supplied to UPRVUNL, Hon ble Umpire passed an award directing UPRVUNL to pay Rs crores to NCL against which an appeal was made by UPRVUNL before Secretary (Law), Ministry of Law & Justice, Government of India. The said appeal was rejected by Secretary (Law) in the month of June, Subsequently, UPRVUNL preferred to file a Petition before Hon ble High Court of Allahabad, Lucknow Bench against (i) Office Order issued by Ministry of Coal, Government of India regarding appointment of Umpires, (ii) Award passed by Umpire for payment of Rs crores by UPRVUNL to subsidiary companies of Coal India Ltd.; towards interest on delayed payment of coal bills which included NCL s share of Rs crores and (iii) Order passed by Secretary (Law), rejecting the appeal filed by UPRVUNL against award of umpire A short counter affidavit challenging the maintainability of the Writ Petition has been filed before Hon ble High Court of Allahabad Bench. The matter is still pending before the Hon ble High Court. 1.9 SECURITISATION OF COAL SALES DUES In the report for the year ended 31st March, 2004, it was informed that under the Scheme for One Time Settlement of SEBs dues to Central Public Sector Undertakings (CPSUs) introduced by the Central Govt., 8.5% tax free bonds of the State Government for an amount of Rs crores were issued by Reserve Bank of India against the outstanding dues of UPSEB / UPRVUNL as on Out of Rs crores, Rs crores 23 (18 Nos. of Rs crores) have been redeemed upto PAYMENT TO CENTRAL/STATE EXCHEQUER Information in regard to contribution made by the Company towards the Central and State Exchequer is furnished hereunder : (Rs. in crore) Particulars MP UP Total MP UP Total Royalty Central & State Sales Tax Clean Energy Cess Excise Duty Sales Tax on works and scraps Entry Tax Service Tax Stowing Excise Duty SSDA Cess Property Tax Forest Cess Professional Tax MPGATSVA Total The Company has paid an amount of Rs crores towards corporate advance income tax (including TDS) and Rs crores towards dividend tax during , as against Rs crores and Rs crores respectively, paid during Earning per share (EPS) during the year has been increased upto Rs.12, from Rs.11, of previous year. 2.0 PRODUCTION PERFORMANCE 2.1 Production Performance for the year against target and in comparison with previous year is given below:

25 ANNUAL REPORT Coal (Mill. Tes) Coal Offtake (Mill. Tes) Over Burden Removal (Mill. Cum) Composite Production (Mill. Cum) Target (Revised BE 14-15) Actual % Achvt Actual % Growth over Previous Year Dept Dept Total Enchanced EC clearance of three mines namely Bina, Krishnashila and Block-B obtained in the month of August, 2014 but consent to operate was given by the State Govt. of UP/MP in the month of Feb & March, The delay in clearance of EC & Consent from these three mines lead to coal shortfall of 1.87 MT. Mode-wise Off-take MGR 48.35% Road 17.47% Rail 34.18% One dragline scheduled to be commissioned in April, 2012 at Amlohri was delayed and commissioned by May, Second dragline scheduled to be commissioned in April, 2013 at Krishnashila was delayed and was commissioned by January, Third and fourth dragline scheduled to be commissioned in May, 2013 and May 2014 respectively at Amlhori itself was also delayed due various issues and yet to be commissioned by M/s. HEC. Such a period of lag in commissioning schedule of all the upcoming three 24 draglines in NCL has affected not only the OB removal programme, but coal production as well The main reasons for less achievement of Coal Production and OB Removal by Departmental means are as follows : Outsourc ing Total Equipment As per Board approval of HEMM based on PR/RPR/survey off norms, following equipment are urgently required : Required (nos.) as per PR/RPR/ NCL Board approval Total capacity (Cum/ Tes) Existing nos. on 1st April 2015 Existing Capacity (Cum/ Tes) Shortage in Capacity (Cum/ Tes) Shortage in nos. Remarks Dragline Shortages based on 24 Cum bucket capacity Shovel Shortages based on 10 Cum bucket capacity Dumper Shortages based on 100 Tes bucket capacity The shortage of these equipment are the biggest hurdle in existing production capacity. At present two nos. of draglines are under erection at Amlohri, 05 Nos. of dragline and 24 nos of Shovels are under process of NIT preparation and under process of tendering respectively. Supply order of 36 nos. of 100 Tes capacity Dumpers are placed and are under commissioning/ Operation The availability of Shovels had been badly affected due to non supply of spares of Shovels. M/s Vulcan, Gujrat and M/s Rajesh Engg, Raipur were the main Suppliers for Shovel spares - some of which are listed below: Dipper Handle, Final Drive Pinion, Final Drive Gear, Lower Roller assembly, Drive Tumbler, Shaft and Pinion, and various types of Gears etc.

26 NORTHERN COALFIELDS LIMITED Since M/s Vulcan, Gujrat had been banned and M/s Rajesh Engg. Raipur were unable to supply the spares as per Supply Order. M/s HEC is also not been able to supply spares in time. So the performance of Shovels had become very poor and it affected the production programme of OB Removal and Coal as well The BE-9 Hydraulic Shovel at Amlohri and One BE-1600 Shovel at Khadia was under breakdown due to fire in the machine since Feb 14 and March, 2013 respectively. The shovel was under MARC with M/s. BEML and its work for rehabilitation/maintenance was not yet started by March Stoppage of work by HOE contractor M/s Sainik Mining and Allied services Ltd. at Jayant and Dudhichua from April, 2014 had greatly affected the OB Removal and subsequent the coal production on account of lack of coal exposure Poor performance of outsourcing agency M/s JP-ASD-Dhilu (JV) at Dudhichua and M/s Saumya Mining Ltd. at Nigahi project and complete stoppage of work from April, 2014 to November, 2014 for 78 days badly affected the OB removal and coal production program as well The boom of 20/90 Bajrang Dragline at Nigahi project has collapsed on due to structural failure causing loss in OB Removal and less coal exposure from turra seam. 2.2 Production Programme for the year The company has finalized a Programme for Coal Production of Mill. Tes. and OB Removal of 285 Mill. Cum for the year Out of this OB removal by departmental means has been planned for 80.0 Mill. Cum and Mill. Cum by HOE means /Outsourcing Productivity The productivity in terms of Output per Man Shift (OMS) for the year has been tes. in comparison to last year OMS tes POPULATION AND PERFORMANCE OF HEAVY EARTH MOVING MACHINES (HEMM) The population of major HEMM for the last five years is given below : Sl. No. HEMM (As on ) (As on ) (As on ) (As on ) (As on ) 1 Dragline Shovel Dumper Dozer Drill Decrease of shovels & D/L in numbers % decrease in digging units Decrease of Dumpers in numbers % decrease in Transportation units & 2 17 & * Taking base as on & % & 5.26% Percentage Capacity Utilization for NCL (% Capacity Utilisation Figures) Particulars Dragline system * Mine Capacity * Utilization Shovel Dumper System * * Figures yet to be vetted by CMPDI, HQ, Ranchi 3.2 Performance of HEMM Sl. No. Equipment % Achievement of availability against standard % Achievement of Utilization against standard (+) increase/ ( ) decrease % Av % Ut 1 Dragline Shovel Dumper Dozer Drill

27 ANNUAL REPORT There is a positive growth in percentage of availability & utilization of all equipment during the period April 2014 to March 2015 as compared to the same period last year. 3.3 New Dragline Commissioned 33/72 dragline was commissioned in January, 2015 at Krishnashila Project. 3.4 Rehabilitation details of HEMM ( ) The rehabilitation work for 15/90 D/L (Vijay) of Jayant Project was completed during the year Equipment under procurement process (as on ) Sl. No. Equipment Total Qty. Project-wise Distribution 1. Surface Miner 4 Nos. DCH-1, JNT-2, KRSL Cum Diesel Driven Face Shovels 10 Cum Diesel Driven Backhoe Shovels 09 Nos AML-3,NGH-2,KHD-2, BINA-1,JNT-1 02 nos JNT-1,DCH Cum Electric Rope Shovels 07 Nos JNT-5,DCH / 88 Draglines 05 Nos KHD-2*, BINA-2 & JNT-1 *PCD Cum E R Shovel 06 Nos AML-3,NGH-2,KHD Cum Hyd. Backhoe Shovel 03 Nos DCH-2, NGH /11.75 Cum F.E Loader 05 No KSL-1, KHD-1 (*PCD), BNA- 1, DCH-1, NGH T Dumpers 30 Nos (28+2 Nos) JNT-14,DCH-7,AML-7 = 28 Nos (Regular Tender) 02 Nos (AML-1 & DCH-1) Trial Tender KL Water Sprinkler 4 Nos Bina-2,NGH K L Water Sprinkler 02 Nos KSL-2* *PCD HP Motor Grader 21 Nos NGH-5,BINA-3,DCH-1,JNT-1, KHD-2+2* BLOCK-B 2*,KSL-2* AML-3* (*PCD) mm Drill 04 Nos AML-2*,KHD-2* *PCD T Crane 1 No AML T Crane 1 No JNT T Crane 1 No NGH T Crane 02 Nos JNT-1, DCH T Crane 05 Nos DCH-1,JNT-1,NGH-2, KHD Drill 250 mm 02 Nos KSL-2* *PCD 20. Drill 160 mm 02 Nos KHD-2* *PCD 21. Dumper 100T 34 Nos Aml-3, BINA-2, DCH-3 JNT- 15, KHD-3, NGH HP Dozer 08 Nos NGH-03,Jayant-03, Bina-01, Dch Supply Orders placed for HEMMs during Equipment Capacity Qty. Name of Firm Dumper 100 T 36 M/s Caterpillar India Private Limited Dozer 410 HP 40 M/s BEML Crane 9000 Kgs 17 M/s A C E Kgs 6 M/s Escort Water Sprinkler. 70 KL 4 M/s BEML Hyd. Excavator with Backhoe attachment 3.5 Cum 04 M/s BEML 3.7 Status pf Rate Contract amd Depot Agreement Sl. No. Head No. of Case Files Currently Valid Under Process Fresh 1. Transmission spares Drills Equipments Engines Draglines Dumpers Shovels Bearings Central Workshop, Jayant Central workshop, Jayant caters to the need of highly sophisticated Heavy Earth Moving Machineries (HEMMs) of diversified origin having wide variety of technologies by way of ready float assemblies of overhaul engines, transmissions, wheel motors, electrical motors, generators, transformers, and magnetorque assmeblies. Also, repair of mechanical assemblies by shafting/ de-shafting, reclamation by welding/ manufacturing which are also having imports substitution, Heat treatment etc. are under taken by CWS, Jayant.

28 NORTHERN COALFIELDS LIMITED General output from CWS, Jayant in last four years is as follows: Year Overhauled (Nos.) Engine Transmission Wheel Motor Repaired (Nos.) Overhauled (Nos.) Repaired (Nos.) Overhauled (Nos.) Repaired (Nos.) Dipper Handle (Nos.) l Transmission Shop, CWS by incorporating modification in the existing test bench. A very typical Drag Rope Drum assembly of 10/70 D/L was repaired at Press Section of CWS in the critical production month of March 15 in spite of non-availability of jigs and fixtures Year Electrical Machine Press Welding KVA Manufacturing (Tons) Repaired (Nos.) Heat Treatment Tons Tons Tons Magnetorque Assembly of P&H Shovel Year Repaired Quantity (Nos.) Innovative Jobs Carried Out By Project Personnel l A line boring arrangement was made departmentally at Engine Shop, CWS and Sri Pratik Sinha, CM(Excv), CWS was awarded at CIL level for the same. l Repairing of broken pinion teeth of intermediate pinion shaft and intermediate gear wheel of 24/96 Dragline was carried out for commissioning of Dragline of Jayant Project Capacity Utilisation The capacity utilization during the year under report as compared to previous year is given below : Description Capacity in M.cum Production in M.cum Capacity Utilization (%) SALES AND MARKETING Performance The off-take vis-à-vis the target and Annual Contracted Quantity (ACQ) for the year in comparison to the previous year is furnished below : Target (in Mill Tes) Linkage/ ACQ Actual (in Mill Tes) Actual % Achievement of Target % mat. of linkage/ ACQ % Growth over previous year l l Coil Winding Machine from available sources was made at Electrical Shop, CWS. Sri Sourav Tripathi, AM(Excv) and his team were awarded at NCL level for the same Testing arrangement of BH-100 Transmission assembly was made at Power Sector continued to remain the main consumer for NCL, accounting for more than 94% of the total dispatches. Information in respect of coal supplies to major consumers of power sector is given below :

29 ANNUAL REPORT Consumer (in Mill Tes) Linkage/ ACQ Actual Mat. of linkage/ ACQ(%) (in Mill Tes) Growth over previous year (%) NTPC (+)3.30 UPRVUNL (-)3.98 Total Power Sector (Incl CPP) (+) Supply of Deshaled coal from Bina Deshaling Plant Against the target of Mill Tes, Bina Deshaling Plant dispatched Mill Tes to Rajghat, Hissar, Kota, Suratgarh, SSTPS, VSTPP, RHSTPP, Obra, Anpara, Paricha, Jhajjar and Arawali Thermal Power Stations during as compared to Mill Tes during Spot e-auction Scheme Spot e-auction scheme was formulated under the provision of New Coal Distribution Policy (NCDP) circulated by the Ministry of Coal during Nov. 07. For procurement of coal under the said scheme, buyers are to bid for the desired quantity at prices above the Floor Price. CIL notified that w.e.f. Jan 12, Floor Price of coal with GCV upto 5500 Kcal/Kg is to be fixed at 20% above notified price and for coal with GCV above 5500 K.cal/Kg Floor Price will be same as notified price Quantity booked along with financial gain under the above scheme during is as under : Scheme Period Quantity Booked (in lakh tes.) Financial gain above notified price (approx.) (Rs. in crore) e-auction scheme (Spot) April 14 to March (Coal by Road) e-auction scheme (Spot) April 14 to March (Coal by Rail) e-auction scheme (Spot) April 14 to March (Reject by Road) Total Sector-wise and Mode-wise Offtake The sector-wise and Mode-wise offtake of coal during the year , in comparison to is given below : (Fig in Mill Tes) Sector/Mode Sector-wise Offtake Power (excluding (CPP) Cement Others Total Mode-Wise Offtake Rail MGR Road (External) Road (Internal)* Total * Raw coal transported by road to Bina Deshaling Plant has been considered as Road (Internal). 4.4 Wagon Loading Information in regard to average wagon loading through I/R rakes against target and as compared to previous year is given below : (Box/Day) Target Actual (Box/ day) Actual % Achievement of Target Variance from last year (%) (-) Coal Price Revision Coal prices were revised w.e.f. 28th May, 2013 (Date of revision of coal price mentioned in last year s report as 27th May, 2014 was due to typographical error).

30 NORTHERN COALFIELDS LIMITED 5.0 QUALITY CONTROL Sampling Arrangement As per the directives of Ministry of Coal, Govt. of india, NCL has switched over to Independent Third Party Sampling appointed by power consumers at loading end from the month of February, Consumers like NTPC, UPRVUNL, RRVUNL, HPGCL and Lanco have appointed their own Independent Third Party Sampling Agency at loading end for sampling and analysis work. Year complaints were received from power houses. The nature of complaints were primarily on account of oversized/ uncrushed coal supplied to the power houses in rakes loaded from wharfwall sidings at Krishnashila, Dudhichua (Jayant) and Spur Siding (Block B ). Details of complaints received during the last three years are given below : Oversized Coal Nature of complaints (Fig. in nos.) Poor Quality Foreign Materials Total Prior to introduction of Independent Third Party Sampling Agency by consumers, sampling and analysis work was being carried out at Loading End by third party agency appointed by NCL/CIL during Sizing of Coal The entire dispatch of coal during the year was made after proper sizing as detailed below : Means of sizing of coal (in %age) in %age) Through CHP/Feeder Breaker Through Dozer Total Weighment of coal During almost 100% coal supplies have been weighed on electronic weighbridges to the full satisfaction of consumers Coal was loaded at Spur Siding (Block B) after passing through an Interim CHP and Dozer crushing. Krishnashila Project is having two Feeder Breakers for sizing the coal. However, in order to ensure maximum sizing and crushing, manual labourers were also deployed. Loading at Dudhichua Wharfwall (Jayant Project) is made by pay loaders after crushing the coal by means of dozer. Adequate measures were taken at these projects while loading Railway rakes so as to ensure proper sizing and quality of coal, free from stone/ shale and extraneous materials. However, since sizing through Dozer crushing and manual breaking is not fully effective, it was difficult to achieve sizing to the full satisfaction of the consumers particularly when loading from the above sidings was done round the clock including nights shifts to maximize coal supplies. 5.3 Quality complaints and action taken thereon During approx. 21nos. of STOCK OF COAL The Measured stock of raw coal as on was Million Tes,

31 ANNUAL REPORT equivalent to 21 days of coal production in terms of average daily target for The stock of raw coal as on was Mill Tes. 6.1 Stock of stores and spares Information in regard to inventory of stores and spares as on as compared to is tabulated as under : Sl. No. Particulars No. of fatal accidents No. of fatalities No. of serious accidents No. of serious injuries Fatality rate per MT output Sl. No. (i) (ii) Description Value of Inventory (Rs. in crores). Inventory in terms of months consumption. As on As on Crores Crores 2.63 Months 3.4 months Fatality rate per 3 lakh manshift Fatality rate per 1000 persons employed Serious injury rate per MT output Serious injury rate per 3 lakh manshift The percentage decrease in inventory over last year is 23.27%. 10. Serious injury rate per 1000 persons employed Fatality rate per MM3 output Disposal of Scrap 12. Serious injury rate per MM3 output In the year the disposal of scrap was of value of Rs Crores. In the year , NCL have finalized sale of scrap value of Rs Crores Compared to realization of cash against scrap value of of Rs Crores, the cash realized in was Rs Crores which was 36.76% increase over the previous year In the year the Burnt oil disposedoff was 1038 KL in comparison to previous year s Burnt oil of KL. 7.0 SAFETY The accidents statistics for the year as compared to previous year is furnished below : Safety Measures & Training Measures taken for improvement in safety standard in Mines of NCL. 1. Statutory Rules and Regulations are implemented religiously and strenuous efforts have been made for achieving the highest standards of safety. 2. Simulators for the training 100 Te. Dumper operator and 85 Te. Dumper operator were installed on in CETI. 397 Nos. & 419 Nos. of Dumper Operators were trained in the year 2013 & 2014 respectively. 3. Company level Tripartite Safety committee meetings attended by DGMS Officials, Trade Unions & Management were held on &

32 NORTHERN COALFIELDS LIMITED 4. Project level Tripartite Safety Committee Meetings were held at Amlohri, Nigahi, Jayant, Dudhichua, & Khadia Projects on , , , & , respectively. 5. Task force has been constituted consisting of senior officials of Trade union and GM(S&R) every month for surprise inspection of mine. 6. There is Multi-level monitoring of the implementation of the Safety Plans through Internal Safety Organization at company level and Safety officer perform it at Area level. 7. There is regular monitoring of status of implementation of recommendations of Tripartite committee, CIL Safety Board, Standing Committee on Safety, 10th and 11th Safety Conferences etc. 8. Lock-Out & Tag Out (LOTO) system of Electrical shut down procedure has been implemented in all the mines of NCL. 9. Special drive has been conducted for checking of road worthiness of the contractors vehicle/hemm from 24th March to 31st March There is a system of continuous education, training and retraining of the employees with the Modern Training Aid/Electronic Media/spot training and lectures at MTK office. 11. Special drive to implement wearing of seat belt by dumper operators has been conducted in all the Projects. 12. Back shift inspection by senior officers in the Projects have been implemented Safety Management Plan of all the ten Projects have been prepared and are being implemented. 14. Safe Operating Procedures have been enforced in all the Projects to reduce dumpers accident. 15. Monitoring of Dragline Dumps :- (i) (ii) Measurement of corridors of dragline OB dumps(dragline sitting level and coal roof of Turra seam level) by Area & HQ Team. A Scheme for Development of guidelines for safe dragline dump profile under varying Geo-Engineering condition in opencast coal mines of NCL for implementation has been conducted by BIT Mesra, Ranchi under R&D Programme of CIL. 7.2 Annual Mines Safety Week Annual Mines Safety Week 2014 was celebrated from 1st January 2015 to 07th January During the Safety Week, a special safety drive has been conducted on different subjects. The Prize distribution ceremony and the final day function was organized on 18th January 2015 at Nigahi Project. 8.0 Project Planning and Development. 8.1 Completed Projects: There are fifteen completed coal mining projects in NCL, In addition there are three completed OBR Augmentation Schemes and Seven Non-Mining completed projects costing Rs 5 Crs and above. The details of above projects are given below :

33 ANNUAL REPORT S.N Name of the Project Capacity (Mtpa) Sanctioned Capital (Crs.) Sch. dt. of Completion Actual date of Completion MINING 1 Bina /87 3/88 2 Jayant /91 3/90 3 Amlohri /93 3/93 4 Kakri /91 3/93 5 Dudhichua /93 3/93 Phase-I (Merged with DCH Expansion 10Mtpa) 6 Jhingurdah /87 3/87 7 Gorbi (Closed) /76 3/76 8 Gorbi-B (Closed) /90 3/90 9 Gorbi Expn /89 3/89 (Merged with Gorbi) - Closed 10 Nigahi Phase-I /95 3/95 (Merged with Nigahi Phase-II 10Mtpa) 11 Khadia /94 3/97 12 Dudhichua Expn OC (RCE) # 3/04 3/04 13 Nigahi Expansion OC # 3/04 3/04 14 Kakri Coal /04 3/06 Aug. Scheme OC 15 Bina Extension /13 12/13 OBR AUGMENTATION SCHEMES 1 Jayant OBR Scheme /96 3/96 2 Jhingurdah OBR Scheme 3 Bina OBR Scheme /96 3/ /01 3/00 NON-MINING 1 Central Workshop /02 3/02 2 Integrated Water /89 3/89 Supply Scheme 3 Nehru Shatabdi /97 8/02 Chikitsalaya 4 Communication Scheme /96 3/96 5 Water Supply Scheme Phase- I&II 6 Bina Deshaling Plant KV SS Madhauli(RCE) /99 06/98 & 04/ /97 08/ /01 03/01 # Including the sanctioned capital of Nigahi Phase-I (4.2 Mtpa ) and Dudhichua Phase-I (5.00 mtpa) On-going Projects and Schemes There are five mining projects costing Rs 100 Crs and above under implementation as mentioned below: S.N. MINING Name of the Project 1 Krishnashila OCP 2 Amlohri OCP (4 to 10 Mtpa) Capacity (Mtpa) Sanction Capital (Crs.) Sch. dt. of Completion Act. dt. of Completion /2013 3/ /2016 3/ Block-B OCP /2015 3/ Nigahi Expansion (10 to 15 Mtpa) 5 Khadia Expansion(4 to 10 Mtpa) /2012 3/ /2018 3/ Future Programme & New Projects : Five numbers of new/expansion Open Cast Projects (OCP) have been identified during XII Five Year Plan. 1. Dudhichua Expansion OCP (10.0 to 15.0 Mtpa) 2. Jayant Expansion OCP (10.0 to 20.0 Mtpa) 3. Semaria OCP (2.00 Mtpa) 4. Bina-Kakri Amalgamation OCP (10.0 Mtpa) 5. Block-B Expansion OCP (3.5 to 8.00 Mtpa) The status of approval of these projects and their Forest Clearance (FC) and Environment Clearance (EC) is given below : 32

34 NORTHERN COALFIELDS LIMITED 1. Dudhichua Expansion OCP (10.0 to 15.0 Mtpa) : 5. Block-B Expansion OCP (3.5 to 8.0 Mtpa) : Expansion Project Report has been approved by NCL Board in Jul 08 with outsourcing option with a capital outlay of Rs Crs. Project could not be implemented as FC & EC for incremental project are required to be obtained. However, PR is being recasted for 20.0 Mtpa by CMPDIL. 2. Jayant Expansion OCP (10.0 to 20.0 Mtpa) : Expansion Project Report (EPR) was recommended by NCL Board on for final approval of CIL Board with sanctioned incremental capital of Rs Crs for additional OB outsourcing option. 3. Semaria OCP (2.00 Mtpa) : It s a green field project which was accorded In-Principle approval by NCL Board in May 11 for capital outlay of Rs Crs. Land required for the project has been notified and vested with NCL under CBA (A&D) Act, FC & EC are to be obtained. 4. Bina-Kakri Amalgamation OCP (10.0 Mtpa) : Bina-Kakri Amalgamation OCP (10 Mtpa) has been approved in-principle by NCL Board with initial capital outlay of Rs Crs. Notification of 180 Ha additional land under Sec 9(1) of CBA (A&D) Act, 1957 has been issued on & published in Gazette of India. Proposal for publication of vesting order under Sec (11) of CBA (A&D) Act, 1957 has been submitted to MoC on EC & FC are required to be obtained. Project Report for 8.0 Mtpa is being recasted by CMPDIL. 8.4 EXPLORATION & DRILLING The drilling for geological exploration is done through CMPDI, RI-VI. ( in Mill Tes) Actual Target Actual Target (Proposed) CIL Non-CIL CIL Non-CIL Total CMPDI MECL Status Report for the Work of Excavation/ Removal of Overburden by Hiring of Equipment in NCL as on is as under : Sl. No. Project 1 Amlohri -I Estimated Quantity (MBCM) Period (Years) Contract awarded to M/s BGR Mining & Infra Pvt. Ltd., Nellore (AP). 2 Block-B M/s National Construction Co., Bhuj-Kutch (Gujarat) 3 Dudhichua M/s JP-ASD- DHOLU (JV), Ahmedabad 4 Kr M/s Montecarlo ishnash- Ltd., ila Ahmedabad 5 Jhingurda 6 Khadia , 7.26 (RH) 7 Amlohri -II M/s AMR-Saisudhir (JV), Hyderabad 5 M/s Montecarlo Ltd., Ahmedabad M/s Sadbhav Engineering Ltd., Ahmedabad Date of Commencement Scheduled date of completion Remarks Work completed on Work completed on

35 ANNUAL REPORT Kakri New 9 Khadia New M/s Rungta Projects Ltd., Anpara, Sonebhadra (UP) M/s BGR Mining & Infra Pvt. Ltd., Nellore (AP). 10 Bina M/s GSCO Infrastructure Pvt. Ltd. 11 Jayant East M/s Gajraj Mining Pvt. Ltd environmental and social concerns as a part of our business agenda NCL is committed to: 1. Assured quality of our coal supplies. 2. Optimum utilization of available resources. 3. Continual improvement in the management and performance of our system. 12 Nigahi M/s Saumya Mining Ltd Work completed on Ensuring prevention of pollution, injury and ill health due to our work activities. 13 Nigahi New 14 Dudhichua West 15 Dudhichua East 16 Jayant West 17 Amlohri -III M/s BGR Mining & Infra Pvt. Ltd M/s Gajraj Mining Pvt. Ltd M/s BGR Mining & Infra Pvt. Ltd., Nellore (AP) M/s VPR Mining Infrastructure Pvt. Ltd M/s Dholu Constructions & Projects Ltd ENVIRONMENTAL PROTECTION 9.1 Management of NCL s Economic, Environmental, Energy and Social Concerns: NCL has well defined and documented manual, policy, procedures and guidelines for Sustainable Development under its Integrated Management System (IMS) complying with international standards of ISO 9001, ISO 14001, OHSAS NCL s Corporate Managemet Policy NCL has voluntarily chosen to implement a comprehensive system for simultaneous management of our economic, 5. Comply with all applicable legislations and other subscribed obligations. 6. Respect all ILO and other international charters on social and labour issues. 7. Promoting importance of the concept of sustainable development. 8. Ensure that this policy is effectively implemented, maintained. and communicated. 9. Review this policy regularly to ensure its continual improvement and relevance. 10. Make this policy accessible in a comprehensible form to all personnel engaged for NCL in any manner. 11. Make this policy publicly available in an effective form and manner to all interested parties, upon request NCL s Energy Management Policy We are committed to continually improve the energy performance of all our process and systems. So, we ensure that : 1. Adequate information and resources always remain available to achieve our energy objectives and targets; 34

36 NORTHERN COALFIELDS LIMITED 2. We always comply with all our energy related obligations, whether legal or otherwise subscribed; and 3. We always promote the purchase of energy efficient products, services, and designs. 9.3 Environmental Conservation Measures: Forest /Ecological Mitigative Measures : Forest clearances (FCs) have been accorded to the NCL projects by the Govt of India, MoEF/ concerned State Governments (of UP and MP). Till , total 8, hectares forest land has been granted forest clearances, out of which, total 7, hectares Forest Land has been handed over to the NCL Projects by the concerned State Forest Departments. During , total 170 ha. forest lands (150 ha. for Bina Extension by the MP Forest Department and 20 ha. for Krishnashila project by the UP Forest Department) have been handed over These clearances stipulate certain conditions to be complied with by the user agency. These conditions basically relate to payment of Net Present Value (NPV), compensatory afforestation (CA), reclamation of mined out areas, creation of safety zones around mining areas, meeting fuelwood needs of labourers and employees engaged in mining activities etc. The basic objectives of these conditions are to ameliorate/mitigate the impacts on forests and its various ecosystem attributes (wildlife, flora, fauna, biodiversity etc.) resulting from coal mining activities. Brief details of various forest/ ecological mitigative measures undertaken by the NCL projects are given below : Compensatory Afforestation The compensatory afforestation is the afforestation done in lieu of the diverted forest lands for coal mining and other purposes. 35 Earlier, compensatory afforestation was done over equivalent area of non-forest land. There is a special provision for Central Government/Central Government Undertaking projects. According to that compensatory afforestation is to be raised on degraded forest lands twice the area of forest land being diverted. The State Forest Departments are to identify blank or degraded forest land for compensatory afforestation and the user agency has to deposit the amount for compensatory afforestation with the concerned State Forest Departments. In lieu of the diverted forest lands, total 4, hectares non-forest lands have been purchased by the NCL and handed over to the concerned State Forest Departments for compensatory afforestation along with the required costs of compensatory afforestation. Besides this, total 3, hectares degraded forest lands have been identified by the concerned State Forest Departments for the purpose of compensatory afforestation and the NCL has paid Rs lakhs for compensatory afforestation over these lands Net Present Value (NPV) : NCL has paid total Rs. 9, lakhs towards Net Present Value (NPV) as per the stipulated condition of forest clearances (Biological) Reclamation of Mined Out Areas : After Over Burden Dumps, which are made by back filling of mined out areas, after having achieved the planned heights, are technically reclaimed by means of retaining walls, terraces/steps etc. Afterwards, biological reclamation works are carried out through plantations of suitable local species. During the year , ha. OB dumps areas have been biologically reclaimed by planting 3.20 lakhs plant

37 ANNUAL REPORT saplings. Till , total ha. have been biologically reclaimed by planting total lakhs plant saplings Creation of Safety Zones : Safety Zones consisting of dense tree covers have been created around mine boundaries. Besides this, NCL has paid the costs of afforestation over degraded forest lands to the extent of one and half times the Safety Zone areas Social Afforestation : NCL has undertaken extensive afforestation in residential colonies, road sides etc. This has resulted into development of extensive green cover all around, which helps in checking air, water and noise pollution. During the year , total 1,88,500 plant saplings have been planted under social afforestation programme. Till , total lakh plant saplings have been planted under social afforestation programme Till , total lakhs plant saplings have been planted for biological reclamation and social afforestation programme. 9.4 Pollution Control Measures Air Pollution Control Measures (i) Automatic sprinklers have been installed at coal receiving pits and are actuated through sensors. Fixed sprinklers have been installed at coal bunkers, transfer points and loading points and are operated through control valves. (ii) Dust cyclones are provided at the bottom of receiving pit of the crusher house. (iii) All the Coal Handling Plants (CHPs) are fully enclosed to reduce coal dust emission outside CHP. (iv) Drills are provided with dust extractors. (v) Approach roads to mines and service 36 roads are provided with black topping to reduce dust generation. (vi) Mobile water sprinklers are deployed for dust suppression on haul roads on continuous basis. (vii) Thick green belts; tall plants with broader leaves have been provided as curtain at mine boundary to arrest air borne dust. The total numbers of trees planted till is 2.21 crores. (viii) Non-active Over Burden (OB) dumps are provided with vegetative cover to prevent dust emission under OB Dump reclamation plans. (ix) Dust proof cabins have been provided for operators in Heavy Earth Moving Machines (HEMM). Dust masks have been provided to employees exposed to dust. (x) Fire hydrants system has been installed for CHPs and coal dumps. (xi) Moist coal is loaded to Merry Go Round (MGR) through Rapid Loading System. (xii) Routine maintenance and periodic overhauling of HEMM are done to reduce gaseous emission. (xiii) Regular ambient air quality monitoring is being done to monitor the air quality and corrective actions are being taken in case of any adverse report Water pollution control measures Water pollution control has been done through Silt Arrestors, 10 Effluent Treatment Plants (ETPs) for effluent generated from Mine, Workshops, CHPs and 8 Domestic Sewage Treatment Plants (DSTPs) for colony sewage of working mines are in operation. (a) Effluent Treatment Plants : Integrated Effluent treatment Plants have been designed for treatment of discharge from mine, workshop

38 NORTHERN COALFIELDS LIMITED and CHP. The plants contain oil and grease recovery system through traps, removal of suspended solids through clarifiers after chemical dosing at flush mixer, sludge drying beds, pipeline and pumping arrangements. Clean treated water is re-used for water sprinkling on haul roads, sprinklers and industrial purposes. (b) Construction of new ETPs : Two more ETPs are proposed to be constructed as detailed below : (i) (ii) Scheme of ETP construction for Krishnashila Project, prepared by CMPDIL, Ranchi has been approved by NCL. It is to be constructed shortly. Scheme of ETP construction for Block-B Project prepared by CMPDIL, Ranchi has been approved by NCL. Work Order has been issued and it is in the process of construction. (c) Domestic Sewage Treatment Plants (DSTPs) : Eight Domestic Sewage Treatment Plants have been constructed in townships with activated sludge process. The plants contain aeration units for oxidation, clarifiers for removal of suspended solids, sludge drying beds, grit removal facilities, sewer lines, manholes, pump houses, control room, etc. Treated water is re-used in horticulture/ agriculture and construction activities. Dried sludge, valuable manure is used in agriculture. (d) Construction of new STPs : One more STP is proposed to be constructed as detailed below: (i) Final scheme for construction of STP for Block-B Project, prepared by CMPDI, Ranchi, has been approved and it is in process of tendering. 37 (e) Silt Arrestor : Substantial amount of silt is carried along with the run off water. Catch drains with silt arrestors are provided in mine areas and are cleaned at regular intervals. Check dams and siltation ponds are provided to arrest silt flowing to the water course. Gabions (loose stones packed in wire crates) with filter pad at toe of the active dumps and across water course, protect against escape of silt into the water body. (f) Oil recovery : Floating oil, recovered from Oil and Grease traps is collected in drums which are stored in a raised paved area having drains to collect back spillages. Used Oil collected during maintenance of vehicles and HEMM are collected and stored in lid tight leak proof drums. Authorization from State Pollution Control Board is duly taken for each individual Project for storage of used oil which is hazardous waste (Cat. 5.1). This used oil is disposed by e-auction through authorized recyclers. (g) Disposal of Hazardous solid waste containing oil : This comes under hazardous Waste Category 5.2. Authorization from State Pollution Control Board is duly taken and these wastes are stored in specifically constructed sheds and disposed off through authorized Common Treatment Storage & Disposal Site, available in the State Noise Pollution Control Measures i. Blasting operations are carried out between 13:00 to 14:00 hours only i.e. during change of shifts. ii. Ear-muffs and ear-plugs are provided to employees wherever required. iii. Curtain plantations have been

39 ANNUAL REPORT provided in and around colonies and along mine boundaries. iv. Routine maintenance of all equipment Special activity: Eco restoration work in NCL in Presently, the NCL is carrying out Ecological Restoration of mines out areas in Krishnashila and Nigahi projects on 5 ha. each. Over burden dumps in order to convert degraded mined out area into productive ecosystem as well as to enhance biodiversity with the technical guidance and assistance of the Forest Research Institute, Dehradun Technical & Biological Reclamation of External OB Dumps Vegetative covers over bare OB dumps have been provided in major projects. It ensures stability to dump slopes, minimization of erosion due to wind and rain water. The dumps have been reclaimed by constructing proper benching and providing reinforced grass-mat covers, gabions and drains. The slope surface has been covered with mixture of grass seeds, agricultural soil and manure laid in coir/ hay/straw/ geo-textile mat. The plantation of trees, shrubs and grass has been done profusely on crowns of dumps, ring bunds, dykes, recess, slopes etc. to ensure thick biological growth. For maintaining vegetative cover, water sprinklers have also been deployed at specific points. Large scale plantaion carried out in slopes and top of completed OB dumps Health Study by NIOH A study of the health of NCL employees and people living in surrounding areas is being doneby NIOH, Ahmedabad. First phase of the study has been completed during and second phase will be taken up during Impact Of Above Measures On Pollution : Air Pollution Control Measures and Water Pollution Control Measures have been adopted to maintain air and water 38 quality within permissible limit as per guidelines stipulated by State Pollution Control Boards (SPCBs) and Ministry of Environment & Forest (MOEF), statutes and legislation applicable to coal mines. Noise Pollution Control Measures have been adopted to maintain noise level within permissible limit. The results of monitoring have been found within permissible limits. 9.6 Environment Clearances All the Open cast Projects are operating with Environmental Clearance from Ministry of Environment & Forest, New Delhi. The consent for Air and Water is also taken from the Pollution Control Boards ISO ACCREDITATION Integrated Management System certificates : NCL is having an Integrated Management System Certification as follows: Your company continues to hold the latest version of ISO 9001 :2008, ISO 14001:2004 and OHSAS 18001: 2007 certifications for whole company in respect of the following activities; Mining and Supply of Coal including related field support, Corporate Management services and provision of diagnostic, curative, rehabilitative and preventive health care services. These Certifications indicates NCL s commitment to Quality, Environment, Occupational Health and Safety at par with Global Standards HUMAN RESOURCE DEVELOPMENT & INDUSTRIAL RELATIONS 11.1 Manpower 11.1 Manpower strength of the company (excluding apprentices under the Apprentices Act, 1961) as on 31st March, 2015 was against as on 31st March, The breakup of manpower strength is given below :

40 NORTHERN COALFIELDS LIMITED Sl.No. Particulars As on (Fig. in Nos.) As on Executives Supervisors Clerical Staff Highly Skilled/Skilled Semi Skilled/Unskilled Total Human Resource Development The training and skill development part of NCL employees looked after by Central Excavation Training Institute (CETI) is as under: Providing learning opportunities to the employees to narrow down performance gaps. To develop training/ reference materials and to arrange special programmes on new equipment for all level of employees NCL has a Central Excavation Training Institute (CETI) at Singrauli and nine Vocational Training Centers (VTCs) in different projects. Need based training is provided to Workmen, Operators, Supervisors and front line Managers. The major training programmes conducted centrally at CETI are as under : Basic courses for HEMM (Dumper, Shovel, Drill, Pay loader and Dozer) Operators, technicians and unskilled workers. Refresher courses for HEMM (Dumper, Shovel and Dozer) Operators and technicians. Original Equipment Manufacturers Programmes on technology upgradation. Supervisory Development Programmes. Technical development programmes for executives. Basic Computer Learning courses for executives, supervisors and other staff. Workers Development Programmes including Leadership Development Programmes. Structured Training Programme for Mining, Excavation and E&M Supervisors. Training Programmes for Safety Committee Members and Workmen s Inspectors. Dumper simulator 85T/100T at CETI is an upgraded tool of training for Dumper operators (Basic & Refresher both). Training Programmes on Preparatory Programme for Retiring Executives. Training Programmes on Literacy Drive CETI organized 18 Workshops and Seminars during the year for middle and senior level management groups and staff focusing on contemporary issues. The statutory training requirements are met by VTCs Information about the persons who underwent different training programmes during the year as compared to the year is given hereunder : Sl. No. Particulars i) Number of persons trained through Vocational Training Programmes at VTC. ii) Number of persons trained at CETI : iii) (a) Regular training programmes (b) Workshops & Seminars (c) Technical Training (Out Side)/OEM TOTAL Number of persons trained through outside company Programme in India. a) General Management Programme b) Techno-managerial courses TOTAL iv) Number of persons trained abroad : a) General Management Programme 06 NIL b) Techno-managerial courses 00 NIL TOTAL 06 NIL 39

41 ANNUAL REPORT Reservation for Scheduled Castes (SCs)/Scheduled Tribes (STs) and other Backward Classes (OBC) in recruitment and promotion. As on (i) Recruitment : The Presidential Directives in the matter of recruitment of Scheduled Castes (SCs), Scheduled Tribes (STs) and Other Backward Classes (OBCs) have been implemented in NCL. (ii) Promotion : A total of 216 candidates belonging to SC community and 112 candidates belonging to ST community were promoted during The representation of SC and ST candidates in total manpower is as under : Total Manpower SC Candidates Number in % ST Candidates Number in % % % % % 11.4 Appointment of Land Oustees During the financial year 36 Land Losers were appointed Workers Participation in Management The worker s participation in management in NCL is encouraged at all levels and is operative to every possible extent. There is system of bipartite dialogue to discuss and address not only the grievances but also the issue pertaining to the entire Management of the Mine The meeting of Joint Consultative Committees (JCC) takes place at regular intervals at Project/Unit level as well as Corporate Level. Further meeting of Safety Committee, Welfare Board, Medical Advisory Board, House Allotment Committee, Canteen Committee etc. are also held regularly. In all above forums the Trade Union Representatives do actively participate and contribute Industrial Relations Industrial Relations in our Company continue to be highly cordial and harmonious. The participative way of functioning of management facilitates settling the disputes/grievances amicably through discussions, which in turn has resulted in maintaining over all healthy ethos of relations in Northern Coalfields Limited. However, few instances of Industrial Relation disturbances during are as under. Sl. No. Particulars No. of Strikes - a) Complete 0 0 b) Partial Law & Order disturbances - a) Relay Hunger strike 1 2 b) Dharna/Demonstration 5 8 c) Assault NIL NIL d) Rowdism NIL NIL e) Gherao NIL 2 f) Obstruction NIL 2 g) Non Co-operation activities NIL NIL 3. Man-days Lost Loss of Production - Coal (Tonne) O.B. (Cu.M.) EMPLOYEES WELFARE AND SOCIAL AMENITIES In NCL proper emphasis is given on employee welfare and efforts are made for improvement in welfare and social amenities like Housing, Water supply, Medical, Education, Recreational facilities etc Housing & Township The total number of standard houses as on are However, taking into account the 1501 Non-standard houses also, the total number of houses is Excluding 1325 houses allotted to different agencies, balance available houses are 14458, which provides 100% housing satisfaction to the employees of NCL.

42 NORTHERN COALFIELDS LIMITED 12.2 Water Supply The entire population of has been covered under the water supply arrangements upto In regard to availability of water, there is 100% satisfaction to the employees in the company Educational Facilities The company has established 7 DAV Public Schools, 2 Kendriya Vidyalaya and 01 Delhi Public School in its command area. Other Schools in this area are also supplementing the education facilities and given infrastructural support from NCL. An amount of Rs.920 lakhs (Prov) was incurred towards financial support to the Schools of NCL for student strength of 13,593. An amount of Rs.63 lakhs was given towards the Higher Technical Fee reimbursement to the wards of Wage Board employees of NCL Medical Services With the aim of achieving a healthy work force by keeping the executives and staffs, their dependant family members healthy physically, mentally, socially and occupationally and also free from diseases through preventive, curative, qualitative and community health care approach, Medical discipline of NCL is providing Primary, secondary and tertiary care in some of its departments with its Specialists Doctors, General Duty Medical Officers, Paramedical Staff, & Non Medical Staff with its excellent infrastructure. These services are also being offered to local population residing within the catchment area of NCL through regular services and also through CSR activities NCL has three hospitals with total strength of 200 beds. There are two regional hospitals namely Central Hospital, Singrauli with bed strength of 35 and Bina Hospital with 15 beds. The main hospital is Nehru Shatabdi Chikitsalaya with 150 beds, located centrally in Jayant Besides the above 3 hospitals altogether there are 11 dispensaries, one in each project except Dudhichua Project where 2 dispensaries are existing Nehru Shatabdi Chikitsalaya (NSC) NSC is functioning as Referral and Specialized Hospital for all Project Dispensaries and Regional Hospitals, providing secondary care for most of the cases and tertiary care in few of its discipline round the clock, 24 x 7 & 365 days in a year. Patients are also being referred from nearby PSU, Govt. and Private hospitals, PHC and District Hospitals. Patients requiring services of Medicine, Surgery, Orthopedics, Pediatrics, Obstetrics & Gynecology, Eye, ENT and Dental disciplines are available in regular OPD. Most of the necessary investigations are carried out in the department of Pathology which also has a fully functional Blood Bank. In department of Radiology facilities of Ultrasonography, CT Scan, MRI, Mammography are available. NSC has a Non-invasive Cardiac Lab. with facilities of ECG, Echocardiography with Color Doppler, TMT, Continuous Ambulatory Holters Monitoring & PFT. In the field of Nephrology provision for Haemodialysis and CAPD are in vogue. Specialized facilities e.g. Diagnostic Upper G. I. video Endoscopy, Video Colonoscopy, CCU with Ventilators, Multipara monitor, Nebulizer, Temporary Pacemaker, Defibrillator, External non invasive Pacemaker, NICU, Laparoscopic Surgeries, Diabetic Foot Care Clinic and Hypertension Clinic, Wellness Centre for counseling are available. Department of Emergency Medicine has been made as a separate unit to provide emergency medical service round the clock Diabetic Clinic & Wellness Centre Due to increased incidence of Diabetes, lifestyle and occupational diseases a Diabetic Clinic and Wellness Centre has been established at NSC and Central Hospital, Singrauli. Here patients are

43 ANNUAL REPORT treated and consulted for diabetic foot care, kidney and eye care. Regular counseling for diet, lifestyle and occupational diseases are being done here. Total persons consulted : Bed Occupancy rate at NSC (of total bed strength of 150) Wellness Centre Diet Counseling Key performances OPD and Indoor activities HOSPITAL OF NCL FOR F.Y Entitled 1,41,850 1,37,603 NEHRU SHATABDI CHIKITSALAYA CENTRAL HOSPITAL SINGRAULI OPD CASES INDOOR ADMISSIONS OPD CASES INDOOR ADMISSION Non-entitled 50,892 45,301 TOTAL 1,92,742 1,82,904 Entitled 5,749 6,152 Non-entitled 9,566 9,136 TOTAL 15,315 15,288 Entitled NA 39,611 Non-entitled NA 7399 TOTAL 45,834 47,010 Entitled NA 835 Non-entitled NA 557 TOTAL 1,132 1,392 Entitled NA 80, Key performances Routine Surgical Procedures Gen. Surgery(NSC) Orthopedics (NSC) Eye (NSC & CH) & ENT (NSC) Gynae. & Obstetrics(NSC) MAJOR SURGERIES MINOR SURGERIES Gen. Surgery (NSC & CH) Orthopedics (NSC) Eye (NSC) & ENT (NSC) Gynae. & Obstetrics (NSC & CH) OPD CASES Non-entitled NA 113 TOTAL TOTAL BINA HOSPITAL OTHER DISPENSARIES INDOOR ADMISSION OPD CASES TOTAL 68,612 80,304 Entitled NA 505 Non-entitled NA 38 TOTAL Entitled NA 3,38,261 Non-entitled NA 4,087 TOTAL 3,58,871 3,42,348 GRAND TOTAL Of OPD CASES (all NCL) 6,66,059 6,52,566 GRAND TOTAL OF INDOOR ADMISSIONS (all NCL) 17,079 17,223 % of Entitled & Non-entitled patients at NSC OPD Indoor Entitled Non-entitled Entitled Non-entitled Key performances - Special Activities DIALYSIS UNIT NON INVASIVE CARDIAC LAB Haemodialysis CAPD Enrollment -35 Enrollment -15 Enrollment -30 Enrollment -17 Echocardiography with Color Doppler TMT RADIOLOGY HOLTERS * CT Scan * MRI Laparoscopic Surgeries CCU & NICU (NSC + CH) USG (NSC + CH) Endoscopy BLOOD BANK ( Collection/Issue) 2082/ /

44 NORTHERN COALFIELDS LIMITED Periodical Medical Examination(PME), Master Health Check-up (for executives and their spouses) are being done regularly in NSC. IME (Pre employment) for all employees (Execute & Nonexecutives) are being done at NSC. PME of NCL employees are done at project dispensaries and regional hospitals of NCL. Pre employment IME of contractual workers are being done at Project Dispensaries / Regional Hospitals. IME & PMEs are done as per 11th safety committee recommendation. In the year 2014, against the target of 4130, Total PME done is 4173, which is 101% of the target. (in 2013 achievement was 99.69%). Total IME of contractual workers done in 2014 is 1180 (in 2013 it was 2775) A Pneumoconiosis Workshop was organised at NSC, Jayant on for doctors of NCL engaged in doing IME & PME in dispensaries / regional hospitals/ NSC. A total of 18 doctors participated in the workshop and in the X-Ray reading session as per ILO guidelines Various conferences of paramedical staffs were organised regularly every year at NSC, Jayant. In a conference of Pharmacists of CIL was organised in November- 14. Pharmacists of nearby hospitals also participated in the program Continuing Medical Education (CME) programs are regularly organised at NSC, Jayant.Experts from different disciplines of medicine from reputed hospitals of India are invited to deliver lectures and conduct workshops on various latest topics and techniques of medical science. Doctors of NCL also deliver lectures on various topics of medical interest. In the F.Y total 27 CME programs of 2 hours duration each were organised compared to previous F.Y. where the figure was Waiver of treatment cost of poor patients: A sum of Rs. 2,37,688.63/- only incurred for treatment of 67 poor patients have been waived off who were treated under CSR policy of NCL in F.Y In 43 F.Y the total amount waived off was Rs. 9,56,492.20/- only for 138 poor patients. For the current F.Y. ( ) number of poor patients as well as waived off amount has reduced from previous F.Y. because of segregation of waived off amount incurred for treatment of poor patients treated in various CSR camps and poor patients admitted routinely in NSC and CH, Singrauli A Centralised Referral and CPRMSE Cell started functioning at NSC, Jayant since 1st July 013.This cell is clearing the bills of empanelled hospitals of CIL as per CGHS rates and packages where our patients are referred for tertiary care. Claims of OPD/ Indoor treatments of retired executives of CIL and their spouses are looked after by this cell. Since its formation, 362 retired executives of CIL are availing the benefits of CPRMSE. Payments are made directly to the empanelled hospitals and to the retired executives by finance department of NSC through RTGS / NEFT Corporate Social Responsibility (all hospital & dispensaries): NCL regularly organises various Health camps, free of cost for the poor and weaker section of the society living in nearby villages around NCL. The camps were organized throughout the year. In some of these camps renowned Physicians and Surgeons, Plastic surgeons, Oncologists, Nephrologists, Cardiologists, Urologists, ENT Specialist from empanelled hospitals of CIL such as Max hospital, New Delhi, AIMS, Faridabad, Yashoda Hospital, Hyderabad, & Institute like IMS,BHU, Varanasi extended their services to local people of Singrauli. Every Project dispensary is running its own CSR Dispensary where free medical consultation are provided for poor patients in regular OPD. A Dispensary on Wheels (Mobile Medical Van) regularly visits Birkuniya & Ambedkar Nagar village near Singrauli. Overall expenditure in F.Y was Rs. 2,54,365/- (in F.Y it was Rs. 3,76,603.13/-).

45 ANNUAL REPORT Year Dispensary on Wheels Total No. of visits Total No. of Beneficiaries CSR - No. of Beneficiaries at regular OPD by project CSR - No. of Beneficiaries in camps by project Activities under CSR for current F.Y. are as under. Total no. of camps organized under CSR is 47. Total no. of beneficiaries is Overall expenditure incurred for the camps is Rs. 32,49,735/-.Other than these, various awareness camps were organized throughout the year. Break-up of CSR Camps are given in the following table. Name of Camp No of Camp Beneficiaries Expenditure Cardiac ,05,480 Diabetic ,280 Cancer Detection camp ,94,191 Hypertension Detection camp ,428 Pediatric Health camp ,48,285 Kidney Disease camp ,550 Senior citizen Health Check-up ,070 Urology (operated=19) 1,08, Lifestyle Disease Modification ,51,585 Multidisciplinary Rural Health ,57,451 Deafness Reduction 1 Laparoscopy 1 Eye 6 Filariasis & surgical camp Plastic Surgery 1 Family Planning 12 Thallesemia (Admitted Cases) Village Health camp by Jayant Women Health Check-up By Bina DM & HTN Checkup-BINA Dispensary on Wheels (operated=09) 27 (operated=12) 325(operated=325) 72 (operated=23) 73 (operated=20) 398 (operated=361) 1,11,613 1,60, ,16,338 95,000 2,10, ,27, ,04, ,49, , ,98, visits ,54, Family Welfare: The following data are all inclusive of entitled and non-entitled cases. Normal Delivery IUSD Tubectomy NSC Others Total NSC Others Total NSC Others Total National Health Programs: Govt. sponsored National Health Programs are also running in NCL e.g. 1. Revised National Tuberculosis Control Program (RNTCP) 2. Integrated Counseling and Testing Center for HIV / AIDS (ICTC) 3. Universal Program on Immunisation 4. Blindness control Program RNTCP (74 cases under Dots Total Beneficiaries Total Positive Cases ICTC Total Beneficiaries Total Positive Cases Social Activities Sports & Games. Adequate infrastructure has been developed in the company for promoting games and sports. There are four stadium one each at Bina, Jayant, Nigahi and Singrauli with necessary gym equipment for physical fitness of employees. NCL has been conducting 19 different inter project sports and cultural competitions. Various sports camps are also organized details given below in which National and International level sportsmen participated:- 1) 16 Inter project level tournament 2) 4 All India National level invitation tournament. 3) 2 Coal India level Inter company tournament. 4) Establishment of Gym at CETI. 5) Two Badminton wooden court, one Billiard Board. 44

46 NORTHERN COALFIELDS LIMITED 6) Starting of Aerobic class for women only. 7) One synthetic lawn tennis court with flood light. 8) 4th Inter School level Inter Project level tournament of sports (Atheletic, cricket, football and cultural) Recreational Facilities NCL has adequate recreational facilities for its employees and their family members. Each Project has their own Officer s Club and Worker s Institute, well-equipped with furniture, utensils, indoor sports material etc. and matching grant is also provided Socio-economic contribution The company had already developed six rehabilitation sites viz. 3 in UP State (Rehta, Ambedkar Nagar and Jawahar Nagar), 3 in MP State (Chandrapur, Nandgaon and Jaitpur) and one more new site is approved for development for resettlement of Project Affected Persons (PAPs) with necessary civic amenities linked with Block-B Project. During the year 1 patta were issued and 76 families were paid cash in lieu of of Rs 1 Lakh to each family. Total 3241 number of families are rehabilitated out of 4065 upto 31st March To impart greater responsibility towards social and economic upliftment of the displaced, package concept for offer of employment is evolved and practiced since in NCL. In this system 2 or more land oustees, who are not eligible for offer of employment due to less than 2 acres of land holding may come together and make a package for offer of an employment to one of them or one of their nominee. This has enhanced the chance of getting employment against land and also enhanced the coherence among the land oustees as well as helping in solving the R&R issues In , total 40 employments have 45 been given against acquired land, out of which 37 employement is offered under package deal concept in which 133 land oustees added their share of land to make those 37 packages for offer of employment Compensation of Land and House Payment. During the year, compensation of Ha. of tenancy land and houses, total amounting to a total of Rs Crores has been disbursed Mahila Mandal Mahila Mandal is a social organization of ladies of NCL and actively participates in the fields of social work. It has been conducting Adult Education Classes. and providing books as a measure to provide basic education to nearby villagers. It has also shown concern in the area of women health by conducting anemia detection camp and has also distributed fruits and created awareness about the importance of proper diet among the women residing in nearby villages Family Welfare During the year under review 504 (351 TT & 153 IUCP) operations were conducted successfully under the family Welfare Programme of NCL covering entitled and non-entitled patients of NCL and nearby areas RAJBHASA IMPLEMENTATION (OFFICIAL LANGUAGE POLICY) 13.1 As per the Annual Programme issued by the Government of India, Ministry of Home Affairs, Rajbhasa Deptt., Govt of India, for 100% implementation of Rajbhasa Rules and Regulation of Rajbhasa Policy among the Officers/ Workers of NCL, emphasis was given on sustainable and maximum use of Hindi by employees in the official work which resulted in progressive and significant improvement in Rajbhasa Implementation.

47 ANNUAL REPORT For carrying out the official work in Hindi smoothly, during the year , 03 Rajbhasa Workshops were organized, which resulted in growth in correspondence. In CETI training programme was organized in hindi and the material for training were provided in Hindi amongst all trainees Against the target of 04 sittings, in NCL 04 sittings of Rajbhasa Implementation Committee was held, in which review was done on the quarterly report and its implementation In high level meetings of the Company such as meetings of Joint Consultative Committee, Welfare Board and Trade Unions, the proceedings were held in Hindi and minutes of the meetings were also issued in Hindi Emphasis was laid to ensure 100% implementation of Section 3(3) and Rule-5 and 11 of Rajbhasa Act, Correspondence with different offices of Central and State Government was done in Hindi All 1053 computers in the company were provided with the facility through UNI Code to do the work in Hindi A training programme was organized by System Department in Head Quarter, Singrauli on for working in Hindi in Computer in UNICODE in which 24 Officers/Workers from Projects/Units were participated Keeping with tradition, Rajbhasa Pakhwara was organised from 15th to 29 September, 2014, in which various competitions were organized in which winners were awarded in cash and consolation prize were distributed among all the participants. 18 Employees were rewarded with Cash prize for their best contribution in the field of Hindi During the Pakhwara All India Kavi Sammelan was orgainsed on in which for advertisement of Rajbhasa Hindi, motivational poems in Hindi were recited Dudhichua Project and Bina Project were given 1st and 2nd Rajbhasa Shield respectively, under the Late Shanker Dayal Sharma Memorial Prize Scheme for the best work done in Hindi for the year alongwith appreciation letters on conclusion of Rajbhasa Pakhwara, September, In the Rajbhasa Sangosti organized by Bhartiya Rajbhasa Vikas Sansthan, Dehradun from October, 2014 at Khajuraho (Madhya Pradesh), for best work performance in Hindi in Company Ms. Shantilata Sahu, Director (Personnel) was honoured with Rajbhasa Shree Samman, Shri A. J. Reddy, GM(Pers/Wel) and Rajbhasa Incharge was honoured with Rajbhasa Kirti Award, Shri Simson Vansriyar, Sr. Officer (Per/Admn), NSC, Jayant and Shri Babulal Ram, Sr. Officer (Sectt/Rajbhasa), Bina and Shri Sharad Chandra Sharma, Office Suprintendent, Amlohri were honoured with Vishesh Rajbhasa Vishishtata Samman and a Memento Shri Pradeep Kumar Dubey, Sr. Manager(Personnel), Block B Project and Shri Manoj Kumar Singh, Sr. Manager (IE) participated in the 3 days Third Akhil Bhartiya Rajbhasa Sammelan organied at Puri (Orrisa) by Viswamukt and KIIT Univesity, Bhuwaneshwar from November, In the above programme Ms. Shantilata Sahu, Director(Personnel) was also present as a special invitee. On the conclusion of the seminar Director (Pesonnel), NCL and above executives were honored with Momento The meeting of Town Rajbhasa Implementation Committee, chaired by Shri Tapas Kumar Nag, Chairman-cum- Managing Director, NCL was held on and appropriate action on the minutes of meeting circulated in Hindi was taken. 46

48 NORTHERN COALFIELDS LIMITED Area Implementation Office (Central), Govt. of India, Ministry of Home, Rajbhasa Section, Bhopal organized a Joint Area Rajbhasa Sammelan on at Bhopal, in which Shri A. J. Reddy, General Manager (Personnel/Welfare), NCL participated Town Rajbhasa Implementation Samiti, Bhilai-Durg organized Central Area Rajbhasa Sammelan from February at Bhilai (Chattisgarh) in which Shri Dinesh Tenbhurne, Sr. Officer (Rajbhasa) participated and was declared winner Rajbhasa question Manch During the year under Aaj ke Shabd synonym words of English in Hindi and thoughts of the day were also written daily on the Board to develop awareness amongst the executives and workers to work in Hindi Activities of Vigilance Department 14.1 Vigilance Set-up : The Vigilance set up at Northern Coalfields Limited is headed by a Chief Vigilance Officer, a director level officer appointed by the Government of India. Ten executives belonging to different disciplines assist the CVO in carrying out the activities of the Vigilance Department. Three Senior Personnel Assistants and two clerks are also posted in the Vigilance department Corruption prone areas have been the focus of attention. Any preventive or punitive action in these areas is bound to have a demonstrative as well as multiplier effect on the entire organization Observance of Vigilance Awareness Week 2014 : As per the directives of Central vigilance Commission vide circular no. 06/09/14 dated 30/09/2014, Vigilance Awareness week was observed in Northern Coalfields Limited from to Displayed the banners, posters at Prime locations. Shri K.P. Venkateshwar Rao, 47 IPS, IG/CVO, NCL has flagged off for a vigilance run at 9.30 AM on by school children. Shri T.K. Nag, CMD, NCL has administered pledge to the executives and staff at Singrauli on at AM. Shri A.D.Mathur, Director (Tech/Oprn) NCL had read out the message of His excellency President of India Shri Pranav Mukharji on the occasion. The message of Hon ble Vice President of India Shri Hamid Ansari was read out by Shri A.K.Pandey, Director(F), NCL. The message of Shri Narendra Modi, Prime Minister of India had conveyed to the assembled employees by Shri A.K. Mukherjee, General Manager (E&M)/Vigilance, NCL. Shri K.P. Venkateshwar Rao, IPS, IG/ CVO, NCL had conveyed the message of the Central Vigilance Commission to the executives and employees. In a similar fashion, the observance of Vigilance Awareness week-2014 was commenced with the administration of pledge and reading out of messages at different projects of NCL. This year the theme of observing Vigilance Awareness Week was Combating Corruption Technology as an enabler. The Inaugural day function of the Vigilance Awareness Week-2014 was held at Officers Club Auditorium on at 3.00 PM.. Shri T.K. Nag, CMD, NCL, was the Chief Guest of the function. Shri A.D.Mathur, Director (T/O) NCL and Shri A.K..Pandey, Director (F) were present on the occasion. The proceedings of the function was started with a welcome song presented by the school children.. Shri K.P.Venkateshwar Rao, IPS, IG/CVO, NCL had welcomed to the guests and expressed his views on transparency in public procurement and emphasized to introduce e-tendering, e-procurement etc by leveraging technology in NCL. GPS (Global Positioning System)/ RFID (Radio Frequency Identification) system and on line file tracking system were inaugurated b y

49 ANNUAL REPORT Shri T.K. Nag, CMD, NCL on the occasion. Shri A.D.Mathur, Director (T/O) NCL and Shri A.K.Pandey, Director (F) had expressed their views on awareness regarding rules regulations, manuals etc of the company. The Chief guest Shri T.K. Nag, CMD, NCL had expressed his views on a sound procurement system essential for any organization & had emphasized transparency, accountability and probity in public procurement. NCL Vigilance has given Vigilance Excellence Award & Appreciation Certificate to the Executives & employees for exemplary work who had done excellent work in the field of innovative technique to save the company s fund. The details are given below : (a) Vigilance Excellence Award General Manager(Sales & marketing) with his team for exemplary work done by them in liquidating Coal stock at Jayant Project. 2. Chief General Manager, Jayant with his team for exemplary work done by them in liquidating Coal stock at Jayant Project. 3. Shri G.P.Singh, Sr,Manager(Legal), for Dealing the matter relating to lease rent in systematic manner with legal proficiency leading to substantial reduction in payment of lease rent to the authorities. 4. Shri S.K.Meshram, Chief Manager(E&T)/HOD with his team for Implementation of GPS based vehicle tracking & RFID weighbridge integration system in NCL. (b) Appreciation Certificate 48 1 Sri M A Siddiqui, Chief Manager (MM), NCL Headquarters 2 Sri Jaibir Singh, Sr.EP Electrician Amlori Project 3 Sri S N S Yadav, Senior Manager (Excavation) Jhingurda project 4 Sri A N Tripati, Senior Mechanic Jhingurda project 5 Sri Brajesh Sardar, Fitter, Jhingurda project 6 Sri Umesh Yadav, Fitter, Jhingurda project 7 Sri S K Mallick, Chief Manager (Excavation) Jhingurda project 8 Sri Dadulal Singh, Foreman in-charge Jhingurda project 9 Sri Surendra Singh, Sr. Mechanic Jhingurda project 10 Sri S K Singh, Sr. Electrican Jhingurda project has been appreciated for his individual innovation while finalizing procurement in cases of proprietary purchase resulting into substantial savings to NCL. has been appreciated for his exemplary work done in Departmental repairing of Electrical Shovels at Amlohri Project resulting in substantial savings in terms of money as well as time for NCL. has been appreciated for exemplary work done in repairing of Transmission of a Wheel Dozer by using parts from old and failed Transmission at Jhingurda project resulting in substantial savings for NCL. has been appreciated for exemplary work done in repairing of Transmission of a Wheel Dozer by using parts from old and failed Transmission at Jhingurda Project resulting in substantial savings for NCL. has been appreciated for exemplary work done in repairing of Transmission of a Wheel Dozer by using parts from old and failed Transmission at Jhingurda Project resulting in substantial savings for NCL. has been appreciated for exemplary work done in repairing of Transmission of a Wheel Dozer by using parts from old and failed Transmission at Jhingurda project resulting in substantial savings for NCL. has been appreciated for exemplary work done in converting the surveyed off 85 T Dumpers into Water Sprinkler with water pressure unit to utilize the same as a Fire tender also using departmental resources at Jhingurdha Project resulting in substantial savings for NCL. has been appreciated for done in converting the surveyed off 85 T Dumpers into Water Sprinkler with water pressure unit to utilize the same as a Fire tender also using departmental resources at Jhingurdha Project resulting in substantial savings for NCL. has been appreciated for exemplary work done in converting the surveyed off 85 T Dumpers into Water Sprinkler with waterpressure unit to utilize the same as a Fire tender also using departmental resources at Jhingurdha Project resulting in substantial savings for NCL. has been appreciated for exemplary work done in converting the surveyed off 85 T Dumpers into Water Sprinkler with water

50 NORTHERN COALFIELDS LIMITED 11 Sri Dinesh Baiswar, Fitter Jhingurda project 12 Sri Suresh Ekka, Fitter Jhingurda project 13 Sri R P Patel, Welder Jhingurda project 14 Sri A K Mishra, EPH Jhingurda project 15 Sri R K Singh, Sr. Manager(Civil), NCL Headquarters. 16 Ms. Shewata Bansal, Assistant Manager (Civil), NCL Headquarters. (c) has been appreciated for exemplary work done in converting the surveyed off 85 T Dumpers into Water Sprinkler with water pressure unit to utilize the same as a Fire tender also using departmental resources at Jhingurdha Project resulting in substantial savings for NCL. has been appreciated for exemplary work done in converting the surveyed off 85 T Dumpers into Water Sprinkler with water pressure unit to utilize the same as a Fire tender also using departmental resources at Jhingurdha Project resulting in substantial savings for NCL. has been appreciated for exemplary work done in converting the surveyed off 85 T Dumpers into Water Sprinkler with water pressure unit to utilize the same as a Fire tender also using departmentalresources at Jhingurdha Project resulting in substantial savings for NCL. has been appreciated for exemplary work done in converting the surveyed off 85 T Dumpers into Water Sprinkler with water pressure unit to utilize the same as a Fire tender also using departmentalresources at Jhingurdha Project. resulting in substantial savings for NCL. has been appreciated for exemplary work done by him in using Information Technology and innovative ideas to increase number of tender finalization and award of work at Civil Department, NCL Headquarters. has been appreciated for exemplary work done by her in using Information Technology and innovative ideas to increase number of tender finalization and award of work at Civil Department, NCL Headquarters. Special Achievement Award 1. Shri Inderjeet Singh, S/o. Late Gurudayal Singh Saini, Dragline Operator, Jayant Project 2. Smt. Indu Bala, Office Superintendent, NCL Headquarters has been awarded for winning Bronze Medal in Shot Put at Asian Games-2014 at Incheon, South Korea. has been awarded for winning Gold Medal in Hammer Throw & Discus Throw at 18th Masters Asia Athletics Championship, Japan An exhibition of the drawing and paintings made by the school children on the issues related to honesty, corruption etc. was held at the same venue. The topic is A vision of Corruption free India The creative outpouring of the children on canvas struck an instantaneous chord with the Chief Guest, executives, staff and others. An essay competition on the topic Moral and Ethics in one s life for eradication of corruption, for the students of Class 8 to 12 were organized. A dance/drama/skit competition of maximum 15 minutes duration were also organized for the student of Class VII to XII on the topic of Delete Corruption- Build Nation On the occasion, a lecture on the topic of Criminal misconduct and abuse of official capacity was delivered by Shri A.K.Banarjee, Rtd.S.P., CBI, Kolkata. In this program, 286 officers and staff were participated. Vote of thanks was given by Shri A.K.Mukharji, GM(E&M)/Vig. to all guests. On 28/10/2014 at CMD s Conference Hall, Singrauli a Vendors Meeting was organized in which Shri K.P.Venkateshwar Rao, IPS, IG/CVO, NCL, Shri T.K. Nag, CMD, NCL, Shri A.D.Mathur, Director (T/O) NCL, Shri A.K. Pandey, Director (Finance), NCL had delivered their lectures on e-procurement and e-tendering in which more than 25 vendors had attended and expressed their practical problems which were assured to sort out shortly. In the same line vendors meet was organized at Jayant Project for vendors of Jayant, Kakri, Bina, Krishnasila, Khadia, CWS & IWSS,Khadia at 10 AM to 12 AM on Vendors meet was also organized at Nigahi Project on for the vendors of Nigahi, Amlohri, Dudhichua, Block B, Jhingurda & NSC, Jayant. On , training programs were organized at CETI, in first half two lectures on the topic of E-procurement of Services by Shri R.K.Singh, Sr. Manager (Civil) & on another topic of Legal issues involved in Environmental and Forestry by Shri G.P.Singh were organized. On same 49

51 ANNUAL REPORT day in the second half two lectures were also organized, the Dir(D/O) had delivered a lecture on System improvements done in repair and maintenance contracts and its synchronization with IBS and the Dir(F), had delivered a lecture on Taxation issues in NCL and recent developments w.r.t. Tax department in these programs 70 executives were participated. On , training programs were organized at CETI, in first half two lectures on the topic of Standing Orders/Disciplinary Proceedings by Shri S.Kadamber, Sr. Manager(Pers) & on another topic of GPS/RFID were organized. On same day in the second half one lecture on the topic of New changes in procurement policy of CIL by Shri I.B.Karna, Chief Manager(MM) were also organized. In the forenoon of Skit/Drama competition by school children (Approx. 150 children) reflecting the combating corruption was organized at officers club, Singrauli, in which 1st,2nd& 3rd were selected. In the forenoon of , the Chief Vigilance Officer, NCL, K.P.Venkateshwar Rao, IPS had delivered a lecture on the topic of Common irregularities in contracts/public procurement and guidelines for improvement, he had told regarding IT initiatives taken by Vigilance Department, a lecture on Integrity Pact by Independent External Monitor was delivered by Shri J.K. Khanna, IPS (Rtd) and Shri Sewa Ram IAS, (Rtd) and in the afternoon of a lecture was organized at CETI, Singrauli in which Shri M.V. Surti, S.P., CBI/ACI, Jabalpur had delivered a lecture on Prevention of Corruption Act and Shri D. Kalyan Chakravarti had also delivered a lecture on Security Scenario/Unauthorized occupation in Singrauli Area. On , an interactive session with professors of Administrative Staff College 50 of India, Hyderabad was organized on the topic of New Company s Act, in which 50 officers were participated. Training programs were also organized in all 10 Projects of NCL on the topic Common irregularities & compliance of Departmental Enquiries in which about 80 to 90 executives and nonexecutives were participated. On Concluding Day ceremony was organized at Officers Club, Singrauli in which Shri K.P.Venkateshwar Rao, IPS, IG/CVO, NCL,Shri N.Das, Director (T/P&P) NCL, Shri A.D.Mathur, Director (T/O) NCL and Shri A.K.Pandey, Director (F) were present. Shri Raghuvansi, District Judge graced the occasion as Chief Guest of the concluding day ceremony. The proceedings of the function was started with a welcome song presented by the school children. In their address on the occasion, Chief Vigilance Officer, CMD, Dir. (T/P&P), Dir (T/O) Dir. (Fin) and, NCL and Chief Guest were expressed their views. The Vigilance magazine 2014 BAAZ was released by the Chief Guest, Directors and CVO of NCL. The prize winners from the School Children were felicitated. At the end, colourful Cultural programs were also organized by School children and artists of NCL employees. The General Manager (E&M) Vig. Shri A.K.Mukhrjee had delivered vote of thanks. In the same line all projects of NCL such as, Block B, Jhingurda, Kakri, Bina, Khadia, Krishnashila Iwss Khadia, Dudhichua, Jayant, CWS Jayant, Amlohri, Nigahi & NSC Jayant. The various activities carried out by NCL during the Vigilance Awareness Week were widely covered by the Press Preventive Vigilance : Systems Improvement undertaken : 1. ANNUAL PROPERTY RETURN, ONLINE VIGILANCE COMPLAINT AND ONLINE RECRUITMENT has

52 NORTHERN COALFIELDS LIMITED been uploaded on NCL s website. Further, APRs are being filed on line on CIL s web site. 2. On recommendation of Vigilance Department System Improvement Orders by CMD/NCL has been issued vide Office Order No. NCL/ CMD/ Vig/2014/2172 dt. 25/ regarding procurement of fire safety items. 3. Again on recommendation of Vigilance Department System improvement Orders by CMD/NCL have been issued vide Office Order No. NCL/CMD/ Vig/2014/2173dt. 25/26/02.14regarding procurement of fire safety items. 4. System improvement order issued vide no. NCL/VIG/14/494 dt regarding internal coal transportation at Khadia Project for monitoring the reporting system of contractual tippers engaged in coal transportation. 5. System improvement circular has been issued vide No.NCL/Vig/Systemic improvement/15/2014/1460 dated regarding submission of bills related to official tour. 6. GPS/RFID based vehicle tracking system for coal transportation. Electronic surveillance by CCTV, GPS based Vehicle Tracking system, RFID based boom barriers, an integrated system for collecting the data in real time basis numbers of tippers/ trucks has to be installed RFID tag. All the projects of NCL are having electronic weigh bridges. Tender for GPS based vehicle tracking system for coal transportation along with RFID system, boom barrier, camera for snapshot and integration with existing weighbridge system on turnkey basis. The work order issued on 16th January GPS devices installed in 75 vehicles as provided by the Block B project for testing and optimization of the system. 51 A Central Server has been installed at NCL headquarters with 2MBPS line. A work station at Weigh Bridge at project with RFID Reader, boom barrier and camera for snapshot with internet connection. Area control room has been established at Block B project with broadband internet connection for linking the weigh bridge data and the central server at Headquarters. Commissioning of the trial started from Trial run has been completed successfully in Block-B Project and completion certificate was issued on 13/02/2015. Expected date of full implementation is, after the trial run of 03 months i.e, end of June After implementation of this project, theft, pilferation of coal, POL, scrap, etc and unauthorized entry of trucks or vehicles is expected to stop. 7. CoalNet Implementation status : In 1st phase payroll, Finance and PIS will be implemented and award of work is expected by April 2015, as this requires customization for NCL and its implementation at NCL headquarters is expected by end of December In 2nd phase extension of facilities for data entry and report generation, etc for Finance, Payroll and PIS Module to all the projects. Implementation of MM, maintenance, Sales and production modules of CoalNet at Main data Centre (at NCL Hq) and provide all facilities at project/units and Near Data Centre at Nigahi project is expected by end of December NIT for selection of Service Provider for Implementation, customization, maintenance and support after successful implementation of CoalNet project for 5 years was floated in August Single offer of M/s CMC has been received against the open tender, which was opened on 1st November Part II has been opened on and price

53 ANNUAL REPORT justification is in process. Award of work of both the phases is expected soon. 8. Implementation of OITDS at Amlohri, Nigahi, Khadia and Dudhichua including AMC of 5 years. On the initiative taken up by Vigilance department, OITDS implementation in 04 projects of NCL was speeded up and is expected to be operational from March E-tendering All the projects of NCL have started tendering through e-procurement of goods valuing more than Rs.2 lakhs, from June Tendering for works/services for contracts worth Rs 2 lakhs or more (Civil/E&M/Mining/CMC) have been started through E-procurement portal from 1st Feb A total of 1267 tenders have been published on E-procurement portal amounting to Rs.4697 crs of estimated value. Total of 337 contracts have been awarded amounting to Rs.280 crs on the portal till date. 10. Coal Stock Liquidation through E-auction : The coal stock position as on was million tonnes. The problems faced by NCL due to coal stock lying in coal yards of various projects was of degradation of coal quality due to long storage period, damage due to frequent fires due to spontaneous combustion, pilferation/ thefts and weathering. By the initiative taken by Vigilance department and the Sales and Marketing department after constant liasioning with consumers, railway authorities and project officials brought the coal stock from a level of 6.1 million tons to 1.3 million tons, thereby liquidating the stock to the tune of 4.8 million tons. 11. Online File Tracking system Online file tracking package has been developed in house by NCL and works in the LAN of NCL. The online file 52 tracking system is in use since 2013 in NCL headquarter. Projects have started to use the online file tracking system from November Online Bill Tracking system Online bill tracking package has been developed in house by NCL and works in the LAN of NCL. The online bill tracking system has been implemented in NCL headquarter from Extent of IT usage and e-governance : 1. Vide notice no.ncl/sgr/ sales/08/2334 dt the extant procedure regarding refunds through RTGS/CBS to linked consumers/eauction buyers was circulated. Despite being located in remote area, NCL has introduced e-payment in a big way. 2. NCL website has been linked to CVC website for ensuring easy access to CVC instructions relating to different matters. 3. A link called CVO s corner has been introduced in NCL website. 4. E-publication of BAAZ, a compendium on Vigilance matter has been done, wherein guidelines issued in the year was in addition to CVC guidelines and case study based on major Vigilance cases Vigilance Department of NCL scrutinized 350 Annual Property Return up to March Agreed List & ODI List : Agreed list and ODI list have been prepared Rotation of executives from sensitive posts : Officers working on the sensitive posts are being transferred regularly. Details for the period from to are us under:

54 NORTHERN COALFIELDS LIMITED No. of executives transferred from sensitive posts: Training Courses conducted in vigilance awareness : (a) Training Courses conducted in vigilance awareness: 1. Details of the training programme held on Vigilance Awareness & other Vigilance related subjects. 13. Vigilance Awareness programme: Topics a) New Company Act by ASCI, Hyderabad 14. Vigilance Awareness programme: Topics Common irregularities & Compliance of departmental Enquiries- its pros & cons, Block B, 15. Vigilance Awareness programme: Topics Common irregularities & Compliance of departmental Enquiries- its pros & cons, Jhingurda SI. No Name of Programme 01. Management Development programme 02. Management Development programme 03. Vigilance Awareness programme 04. Management Development programme 05. An interactive session related to EMD/SD and other maters by top management of NCL with Executives of NCL. 06. Management Development programme 07. Vigilance Awareness programme 08. Vigilance Awareness programme 09. Lecture on Criminal misconduct and abuse of official capacity 10. Vigilance awareness programme: Topics a) E- procurement of services, b) Legal issued involved in Environment & Forestry, c) System improvements done in repair and maintenance contracts and its synchronization with IBS. 11. Vigilance Awareness programme: Topics a) Standing orders & Disciplinary proceedings, b) GPS & RFID 12. Vigilance Awareness Programme: Topics, a) Common irregularities in contracts/public procurement and guidelines for improvement b) Integrity Pact. c) Prevention of Corruption Act Date No of participants Vigilance Awareness programme: Topics Common irregularities & Compliance of departmental Enquiries- its pros & cons, Amlohri 17. Vigilance Awareness programme: Topics Common irregularities & Compliance of departmental Enquiries- its pros & cons, Nigahi 18. Vigilance Awareness programme: Topics Common irregularities & Compliance of departmental Enquiries- its pros & cons, Jayant 19. Vigilance Awareness programme: Topics Common irregularities & Compliance of departmental Enquiries- its pros & cons, Dudhichua 20. Vigilance Awareness programme: Topics Common irregularities & Compliance of departmental Enquiries- its pros & cons, Kakri 21. Vigilance Awareness programme: Topics Common irregularities & Compliance of departmental Enquiries- its pros & cons, Bina 22. Vigilance Awareness programme: Topics Common irregularities & Compliance of departmental Enquiries- its pros & cons, Krishnashila 23. Vigilance Awareness programme: Topics Common irregularities & Compliance of departmental Enquiries- its pros & cons, Khadia Total

55 ANNUAL REPORT Besides regular and normal Vigilance activities, NCL vigilance is actively working in areas like training for development and creating awareness amongst all Executives of NCL, which has been adopted by Coal India for all its Executives. CIL has approved General Management Programme for E-6 and E-7 at ASCI, Hyderabad and for below E-5 level executives at IIM, Lucknow after the initiative taken by NCL Vigilance. For creating vigilance awareness in executives of NCL a training programme has been initiated comprising of two modules (engineers & non-engineers) to impart training to 450 nos of executives. Under this programme in the month of February 2015, three days Sensitization Refresher Course to enhance Vigilance Awareness for Engineers in Finance and Non engineers in Mining Operation was organized at Jayant Project from to , in which 30 executives from engineering discipline 19 executives from non-engineering discipline were participated. In the month of March 2015, the training programme was conducted in three batches, on to course for Non-engineers was organized, on to course for Non-engineers & Engineers was organized in which 78 engineers & non-engineers executives participated and on to course for engineers was organized in which 20 executives participated Surveillance and Detection : No. of cases registered for investigation during the period of report Opening balance of cases : 09 No. of cases added during the period for investigation : 08 Disposed during the period : No. of cases under departmental inquiry during the period of report No. of case under Departmental Inquiry : 09 Disposed during the period : Inspections: A total no. of 53 surprise inspection/regular inspections were made during the period in question Punitive Vigilance : Chargesheet s issued Minor Penalty Proceedings (under Rule 31) Major Penalty Proceedings (under Rule 29) Dismissal/ Removal Reduction to lower rank Reduction to lower stage in pay Penalty imposed Postponement/ withholding of increment Withholding of promotion Censure Others No (caution, Action Warning (exoneration) etc.) Nil Nil 02 Nil Nil Nil No. of officials suspended : One 15.0 COMPUTERIZATION 15.1 Existing Applications / Systems: Oracle based Centralized Payroll System for entire NCL Oracle based Online Cash book package at HQ and Block B projects Foxpro based Data entry and cash accounting package at all other projects Consolidation of Cash accounting at HQ COBOL based Personnel Information System for Executives and Non- Executives for entire NCL Surpac Software for Mine Planning and Surveying. Integrated Business Solution (IBS), an ERP package, consisting of Materials Management, Maintenance Management, Production Sales and MIS Modules Operator Independent Truck Despatch System (OITDS) is functional at Jayant Project.

56 NORTHERN COALFIELDS LIMITED Operator Independent Truck Despatch System (OITDS) is functional at Amlohri and Khadia Projects. Implementation of OITDS at Dudhichua and Nihgahi Projects are in final stage of completion. Biometric Based Attendance Recording System at NCL HQ Online Vigilance Complaint System, Online Recruitment System through CMPDIL e_procurement for Goods, Works and Services through NIC Oracle based Computer Consumables Information System File Tracking and Bill Tracking System 15.2 Infrastructure: RISC Server (1 no) for Payroll & Personnel Information System Xeon Servers (14 nos) for Integrated Business Solution (IBS) Sun Storage VTL for Backup System PCs: In total 1053 PCs are distributed to different users across NCL. Out of these 465 no. PCs are to be replaced very shortly. F.O. based Local Area Network (LAN) is functional at NCL Hq and all projects. All the LANs of project are connected with LAN at HQ through F.O. cable Maintain 10 Mbps lease line Internet through NIC, Bhopal 15.4 NCL Website updation including restructuring of NCL Website 15.5 Future Program Implementation of Coalnet covering Finance Module, Materials Module, Maintenance Module, Sales Module, Production Module, Personnel Information 55 System & Payroll Procurement of Hardware for Coalnet (Servers, Switches, etc.) and Oracle Software Setting up of Main Data Centre at HQ and Near Data Centre at Nigahi Upgradation of HQ LAN with Mail Messaging, Proxy and Web Servers Procurement of PC, Printers, etc.: Supply Order has been placed on Implementation of Hospital Management Information System Implementation of Document Digitization & Document Management System Replacement of Operator Independent Truck Dispatch System (OITDS) at Jayant Project Computerization of Asset register COMMUNICATION FACILITIES: 16.1 Efficient telecommunication network has been developed in the projects and NCL HQ to provide the communication facilities right from the corporate office to the Pit office Wide Area Network (WAN) through OFC has been established from NCL HQ to projects and within the projects to provide voice and high speed data communication facility for IBS Mbps high speed internet connectivity has been established at NCL HQ for Internet and facility New IP based telephone exchanges have been installed in all projects/units of NCL. Facility for close user group numbering scheme has been established for voice communication between subscribers of HQ/projects/units. This has improved telecommunication between HQ and projects/units Mobile communication facility of BSNL under Closed User Group (CUG) scheme has been provided to all the executive and emergency / essential staff of NCL.

57 ANNUAL REPORT New System during : GPS based vehicle tracking system has been installed in 75 Nos. of trucks and integration of one weighbridge for RFID tag, Boom Barrier and Camera for snap shot of vehicle number plate. This system has been implemented in Block B project of NCL The proposal for installing CCTV Surveillance system at vital locations of mines of different projects/ units of NCL. The supply order has been placed on M/s Honeywell automation Ltd., Kolkata Improvements during : Implementation of GPS based vehicle tracking system and integration of weighbridge for RFID tag, Boom barrier and Camera for snap shot of vehicle number plate in remaining 9 (nine) projects of NCL CCTV Surveillance system is to be installed at all road weighbridges and different vital locations (Ministry, Store, Workshop, Sub-Station, CHP, Time office, Dumper/Dozer parking yard, Diesel filling station etc.) in the mines of NCL with 550 nos. of cameras Radio network connecting HQ Singrauli to Projects/ Units for voice and data communication shall be established Nos. of wireless equipment have been added to improve wireless communication network in mines Frequency allocation has been made by WPC (Wireless Planning Coordination) wing, Govt. of India for OITDS system CORPORATE SOCIAL RESPONSIBILITY 17.1 Annual Report on CSR Activities required under Section 134(3) of the Companies Act 2013 read with Rule 8(1) of Companies (CSR Policy) Rules 2014 is enclosed as Annexure-I SUSTAINABLE DEVELOPMENT / MOU ACTIVITY OF NCL DURING Sustainable development and CSR Committee of NCL has been re-constituted by NCL Board comprising of two part time 56 non-official Directors and two Functional Directors A three year project for Eco-Restoration work and Bio Diversity Development in 10 hectares of degraded land ( 5 hectares each at Krishnashila and Nigahi Projects of NCL) has been awarded to Forest Research Institute, Dehradun. The total project cost is Rs.40 lakhs and Rs.20 Lakhs has already been paid as first instalment. Work is in progress (a) Under Rain Water harvesting, deepening and cleaning of 2 nos of water harvesting pound at Dheki & Pauri Nagai villages have been done by Jayant Project and deepening of existing pond at village Gharsari by Bina Project. (b) 2 Rainwater harvesting facility have been developed by Nigahi OCP near DPS School and Dispensary The proposal for Carbon Foot Print assessment in NCL is under process and the work is expected to be carried during the year (a) The procurement of mist spray dust control system is in the procurement process. The mist spray system with dust suppression through mounting on a mobile vehicle is a new technology to be used for the first time in CIL. (b) Air pollution emission from heavy vehicles is monitored. The work at Amlohri and Bina Project has been completed. In other projects it is under process STATUTORY INFORMATION 19.1 Information in regard to Energy Conservation, Technology Absorption and Foreign Exchange Earning & Outgo Information in accordance with the provisions of Section 134 (3) of the Companies Act read with Rule (8) of the Companies (Accounts)Rules, 2014 regarding Conservation of Energy, Technology Absorption and Foreign Exchange Earnings & Outgo is given in Annexure-II to this report.

58 NORTHERN COALFIELDS LIMITED 19.2 PARTICULARS OF EMPLOYEES There was no employee of the Company who received remuneration in excess of the limit prescribed under Section 134 of the Companies Act, 2013 read with Rule 5(2) and (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, AUDITORS REPORT 20.1 Replies of the Management on the observations made in the report of the Statutory Auditors and comments of the Comptroller and Auditor General of India (CAG), as required under section 134 of the Companies Act, 2013 are given in the Addendum forming part of this Report The Secretarial Auditor did not make any comments/observation in his Report. The Secretarial Audit Report in the prescribed Form No.MR-3 is enclosed as Annexure- III The Cost Auditor Report for the year has been filed under XBRL mode within due date of filing. The Cost Audit Report for the year is in process of finalization and will be filed as per schedule date of filing AUDITORS 21.1 The Statutory and Branch Auditors appointed by the Comptroller and Auditor General (CAG) of India for the year vide letter No.CA.V/COY/CENTRAL GOVT. NCFL (3)/328 dated under section 139 of the Companies Act, 2013 along with remuneration as fixed by the Board in exercise of powers conferred by the Company in 17th Annual General Meeting held on 23rd September, 2002, pursuant to provisions of section 224(8) of the Companies Act, 1956 (same provision retained in Section 142 of the New Companies Act, 2013) is given hereunder: 57 Name of the Audit Firm M/s. Prakash & Santosh, Chartered Accountants, Kanpur (U.P.). M/s. B.C.P. Jain & Co., Chartered Accountants, Bhopal (M.P.). M/s. S.K.Lulla & Co., Chartered Accountants, Gwalior (M.P.). Status Main Auditor Branch Auditor Branch Auditor TA & Out of pocket expenses Rs.4,92, At actual subject to the limit of Rs.1,57, Rs.1,80, At actual subject to the limit of Rs.57, Rs.1,80, At actual subject to the limit of Rs.57, Audit Fee Recommended Reimbursement of Service Tax At actual. -do- -do Shri Krupesh Mankodi, Practising Company Secretary, Jabalpur was appointed as Secretarial Auditor by NCL Board in its 192nd Meeting held on vide Item No.192/C-8 in terms of Section 204 of the Companies Act, 2013 to conduct Secretarial Audit of NCL for the Financial Year at a total remuneration of Rs. 50, only plus to and fro Second AC train fare plus local conveyance and actual lodging and boarding expenses Pursuant to the direction of the Central Government for audit of Cost Accounts, the proposal for appointment of 3 Firms of Cost Accountants as Cost Auditors for auditing the cost accounts of your company for the year ended 31st March, 2015 was approved by the Central Government and they have accordingly been appointed. The particulars of Cost Auditors as required under Section 233(B) of the Companies Act 1956 read with General Circular No.15/2011 dated issued by the Ministry of Corporate Affairs are given below for the year :

59 ANNUAL REPORT SL. Name of the Cost Audit Firm No. 1 M/s K.B. Saxena & Associates, (RN ) Ansal City Center, Hazratganj, Lucknow, UP M/s S.G. & Associates, (RN ), 8A, Shanti Ghosh Street, Kolkata M/s B.Mondal & Associates, (RN 11681) 61/H/15 Raja Naba Krishna Street, Kolkata CORPORATE GOVERNANCE 22.1 Board of Directors (i) Shri T.K.Nag, assumed the charge of Chairman-cum-Managing Director, NCL from (ii) Ms. Shantilata Sahu, Director (Personnel), NCL held additional Charge of Chairman-cum-Managing Director, NCL from to (iii) Ms. Shantilata Sahu continued to be Director (Personnel) during the year. (iv) Shri Niranjan Das ceased to be Director (Technical), NCL w.e.f in terms of MOC s letter No.21/3/2007-ASO dated and order No.CIL/C-5/A(ii)/N.Das/ DTNCL/B-380 dated issued by GM(P), CIL, Kolkata. (v) Shri A.D. Mathur, Director (Technical/ Operations) retired on attaining the age of superannuation on (vi) Shri Gunadhar Pandey assumed charge as Director (Technical), NCL w.e.f (vii) Shri B.K.Saxena, Director (Marketing), CIL continued to be Part Time Official Director, NCL Board during the year. (viii) Shri Surinder Jit Sibal and Shri A.K.Gupta, continued to be Part-time Non Official Directors, NCL Board during the year. (ix) Shri Deepak Nath, continued to be Permanent Invitees, NCL Board, 58 during the year. (x) Shri N.N. Misra, Director (Operations), NTPC ceased to be Permanent Invitee, NCL Board on (xi) Shri C.P. Rai, Additional Principal Chief Conservator of Forest (LM), Govt. of MP, continued to be Permanent Invitees, NCL Board, during the year. (xii) Shri A.K. Pandey continued to be Director (Finance) during the year He ceased to be Director on (xiii) Shri P.S.R.K. Sastry assumed charge as Director (Finance), NCL w.e.f (xiv) Shri Vivek Bharadwaj, Joint Secretary, Ministry of Coal, New Delhi continued to be Part-Time Official Director, NCL Board during the year He ceased to be Part Time Official Director on (xv) Shri Rajesh Kumar Sinha, Joint Secretary, Ministry of Coal, New Delhi was appointed as Part-time Official Director, NCL Board w.e.f vice Shri Vivek Bharadwaj Appointment of Chief Financial Officer (i) Shri A.K. Pandey, Director (Finance), NCL was appointed as Chief Financial Officer (CFO) vide item no. 191/C- 10 in 191st Board Meeting held on 31/01/2015 at New Delhi. He ceased to be CFO on 31/03/2015 on attaining the age of superannuation. (ii) Shri P.S.R.K. Sastry, Director (Fin.), NCL has been appointed as CFO w.e.f. 01/04/2015 vide item no. 194/E- 4 in 194th Board Meeting held on 20/04/2015 at Singrauli Board Meetings During the year 9 (Nine) Meetings of the Board of Directors of NCL were held Attendance of Directors and Permanent Invitees in Board Meetings:

60 NORTHERN COALFIELDS LIMITED BOARD MEETING NO. AND DATE Name of Directors Shri T.K.Nag, CMD Appointed w.e.f P P P P P Ms. Shantilata Sahu, D(P), (Addl. Charge of CMD, NCL upto ) P P P P P P P P P Shri N. Das, D(T/P&P) P P P P P Ceased to be Director Shri A.D. Mathur, D(T/O) P P P P P P P Ceased to be Director on 31/01/2015 Shri A.K.Pandey, D(F) P P P P P P P P NP Shri Gunadhar Pandey, D(T/O) Assumed charge w.e.f P P PART TIME OFFICIAL DIRECTORS Shri Vivek Bharadwaj NP P P P P P P NP NP Shri B.K.Saxena NP P P NP P P NP P P PART TIME NON OFFICIAL DIRECTORS / INDEPENDENT DIRECTORS Shri Surinder Jit Sibal P P P P NP P P P P Shri A.K.Gupta P P P P P P P P P PERMANENT INVITEES Shri N.N.Misra NP P NP P NP NP Ceased to be permanent invitee on Shri Deepak Nath NP P P P P NP NP NP NP Shri C.P.Rai NP NP NP NP NP NP NP NP NP P = Present, NP = Not Present Attendance of Directors in Annual General Meeting. In the 29th Annual General Meeting of Members of NCL held on 17th June, 2014, Chairman-cum-Managing Director/ Director (Personnel), Director (Technical/ Operations) and Director (Finance), were present Audit Committee In pursuance of the guidelines of Corporate Governance for Central Public Sector Enterprises received from Department of Public Enterprises issued vide office 59 Memorandum No. 18(8)/2005-GM dated 14th May 2010, Board of Directors of NCL in its 191st Meeting held on 31st January, 2015 vide item No. 191/C-5 reconstituted the Audit Committee as under : (1) Shri A.K.Gupta, Part Time Non-Official Director, NCL - Chairman (2) Sri S.J.Sibal, Part Time Non-Official Director, NCL - Member (3) Shri Vivek Bhardwaj, Part Time Official Director, NCL - Member (4) Shri B.K.Saxena, Functional Director of CIL/Director, NCL - Member Besides, Director (Personnel), Director (Technical) and Director (Finance), NCL attend and participate in the meetings of the Audit Committee as invitees.

61 ANNUAL REPORT Role of Audit Committee : The role of the Audit Committee shall include the following: (a) Oversight of the Company s financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible. (b) Recommending to the Board the fixation of Audit fees. (c) Approval of payment to statutory auditors for any other services rendered by the statutory auditors. (d) Reviewing the management, the annual financial statements before submission to the Board for approval, with particular reference to: (i) (ii) (iii) (iv) (v) (vi) Matters required to be included in the Directors Responsibility statement to be included in the Board s report in terms of clause (2AA) of section 217 of the Companies Act 1956 or Section 134(3)(c) of the Companies Actm 2013 (whichever applicable). Changes, if any, in accounting policies and practices and reasons for the same; Major accounting, entries involving estimates based on the exercise of judgment by management; Significant adjustments made in the financial statements arising out of audit findings; Compliance with legal requirements relating to financial statements; Disclosure of any related party transactions; and (vii) Qualifications in the draft audit report. 60 (e) Reviewing with the management, the quarterly financial statements before submission to the Board for approval. (f) Reviewing with the management, performance of internal auditors and adequacy of the internal control systems. (g) Reviewing the adequacy of the Internal Audit functions, if any including the structure of Internal Audit Department, staffing and seniority of the official heading the Department reporting structure, coverage and frequency of Internal Audit. (h) Discussion with internal auditors and / or auditors any significant finding and follow up there on. (i) Reviewing the findings of any internal investigation by the internal Auditors/ Auditors/Agencies into matter where there in suspected fraud or irregularity or a failure of Internal Control Systems of a material nature and reporting the matters to the Board. (j) Discussion with Statutory Auditors before the audit committee, about the nature and scope of audit as well as post audit discussion to ascertain any area of concern. (k) To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, share holders ( in case of Non- payment or declared dividends) and creditors. (l) To review the functioning of the Whistle Blower Mechanism. (m) To review the follow up action on the audit observations of the C&AG Audit. (n) To review the follow up action taken on the recommendations of Committee

62 NORTHERN COALFIELDS LIMITED on Public Undertakings (COPU) of the Parliament. (o) provide an open avenue of communication between the independent Auditor, Internal Auditor and the Board of Directors. (p) Review all related party transactions in the company. For this purpose the Audit Committee may designate a member who shall be responsible for reviewing related party transactions. (q) Review with the independent Auditor, the co-ordination of audit efforts to assure completeness of coverage, reduction of redundant efforts, and the effective use of all audit resources. (r) Consider and review the following with the independent Auditor and the Management : (i) The adequacy of Internal controls including computerized information system controls and security, and (ii) Related findings and recommendations of the independent Auditor and Internal Auditor, together with the management responses. (s) Consider and review the following with the management, internal Auditors and independent Auditor: (i) (ii) Significant finding during the year, including the status of previous audit recommendations. Any difficulties encountered during audit work including any restriction on the scope of activities or access to required information. (t) Carrying out any other function as is mentioned in the terms of reference of the Audit Committee During the Financial Year , 9(Nine) meetings of Audit Committee were held and attendance of the Chairperson and Members were as under: Name of Directors Designation Ms. Shantilata Sahu D (P) P P P P P P P P P Sri N.Das D(T/P&P) P P P P P Ceased to be Director Sri A.D.Mathur D(T/O) P P P P P P P Ceased to be Director Sri A.K.Pandey D(F) P P P P P P P P NP Sri G. Pandey D(T/O) Assumed charge w.e.f. 01/02/2015 P p PART TIME OFFICIAL DIRECTORS Sri Vivek Bhardwaj Director P P P NP NP NP P NP NP Sri B.K.Saxena Director NP P P NP P P NP NP P PART TIME NON OFFICIAL DIRECTORS/INDEPENDENT DIRECTORS Sri A.K.Gupta Director P P P P P P P P P Sri S.J.Sibal Director P P P P NP P P P P 61

63 ANNUAL REPORT Training of Board Members No training programme was conducted during the year for the Board Members Other Statutory Disclosures 23.1 Director responsibility statement Pursuant to section 134(5) of the Companies Act, 2013, it is hereby confirmed: a) that in the preparation of the Annual Accounts for the Financial Year ended 31st March, 2015, the applicable accounting standards had been followed along with proper explanation relating to material departures; b) that the Directors had selected such Accounting Policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the Financial Year and of the profit or loss of the Company for that period; c) that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; d) that the Directors had prepared the Annual Accounts for the Financial Year ended 31st March, 2015, on a going concern basis. e) that the Directors had devised proper system to ensure compliance with the provision of all applicable laws and that such systems were adequate and operating effectively Extracts of the Annual Return as required under Section 134(3)(a) of the Companies Act, 2013 read with Rule 12(1) of the Companies (Management and Administration) Rules, 2014 in Form No. MGT-9 is enclosed as Annexure-IV Declaration given by Independent Director under Section 149(6) of the Companies Act, 2013 that they fulfills the criteria of Independence was taken on record by the Board In pursuance of Articles of Association of the Company and as per its constitution, Directors are appointed by the Government and their remuneration is also determined by the Govt. of India There are no such loans, guarantees or investments under Section 186 of the Companies Act, The Related Party Disclosure has been given in Note 34 Additional Notes on Accounts as point 2.III There are no such material changes and commitments affecting the Financial position of the company which have occurred between the end of the Financial Year of the Company to which the financial statements relate and the date of the report Actual performance vis-à-vis MOU standards are compared and audited. These are also put before the Board of NCL as well as Coal India Limited There are no deposits under Chapter-V of the Companies Act, There is no such order passed by any Courts/Tribunals impacting the Going concern status and company s operation in future The Company has in place adequate internal financial controls with reference to financial statements. During the year, such controls to make sure that assets are protected and that company activities are conducted in accordance with the organisation s policies and procedures, were tested and no reportable material weakness in the design or operation were observed in the CAG Audit, Statutory Audit and Internal Audit.

64 NORTHERN COALFIELDS LIMITED Management assessment of the Company s Outlook for the Future and to Identify Important Risk that the company may face in future. For laying down procedures of Risk Assessment and Mitigation procedures, CIL has engaged a consultant M/s Ernst & Young LLP Kolkata, West Bengal, vide ref. no. CIL/CP/Risk Assessment/14/132 dt and given contract for preparation of Risk Assessment and its Mitigation procedure in Coal India Ltd and all of its subsidiary companies separately. The same is under final stage and is to be approved by CIL Board. After getting the approved Risk Management Plan from CIL, the same will be put up before the Board. FDs have approved the Risk Register for Enterprise Risk Management Programme of NCL vide Item No.477:8 in its 477th meeting held on Whistle Blower Mechanism No person i.e. whistle blower has been prevented from direct access to Chairperson of the Audit Committee Disclosure and information under the Sexual Harassment to women at work place (Prevention, Prohibition and Redressal) Act A committee has been formed as per provisions of the Act and no case has been reported during the year PERFORMANCE AGAINST MOU PARAMETERS 24.1 The Memorandum of Understanding (MOU) between CMD, NCL and Chairman, CIL for the year was signed on as per guidelines of Department of Public Enterprises (DPE), Ministry of Heavy Industries and Public Enterprises, Government of India The performance of NCL during against MOU parameters has been audited by Statutory Auditors of NCL. Parameter-wise details of performance 63 are enclosed as Annexure-V. The overall MOU grading of NCL for is Very Good with a composite score of AWARDS Vigilance Excellence Award : CVO,NCL has received Vigilance Excellence Award from Shri Pradeep Kumar, Central Vigilance Commissioner, CVC, New Delhi on the occasion of Eleventh Anniversary celebration of Vigilance Study Circle, Hyderabad on The award was given for the case study on the Preventive Vigilance done by Vigilance,NCL NCL has received Vigilance Excellence Award for the year 2015 from Institute of Public Enterprises. The institute had organized a Conclave of Vigilance Officers (Sharing of experience & Best practices) on 12th & 13th March 2015 at IPE auditorium, Osmania University, Hyderabad. NCL Vigilance has bagged this Award on its excellent track record of Vigilance activities, helped in securing significant savings on its actions/suggestions during last three years in E-initiatives/Leveraging Technology, moreover for its efforts in spreading the vigilance awareness and sensitizing the employees and others stake holders Award has also been given to CVO, NCL for implementing various e-initiatives.

65 ANNUAL REPORT National Safety Awards Jhingurda Project of NCL has been awarded the 1st prize (Winner) for the Longest Accident Free Period (LAAP) in the open cast mines type for the year 2011 and the 1st prize (Winner) for the LOWEST INJURY FREQUENCY RATE (LIFR) in the open cast Mines type for the year 2012 in the Presentation Ceremony of National Safety Awards(mines) held at New Delhi on 20th March NCL has been bagged with Gold award for outstanding achievement in Corporate Social Responsibility (CSR) in Metal Sector by Greentech Foundation, New Delhi and has been awarded as 50 most caring companies of India by World CSR Congress, Mumbai in the year AVAILABILITY OF ANNUAL ACCOUNTS OF NCL AT HEADQUARTERS OF THE COMPANY The Annual Accounts of Northern Coalfields Limited for the year will be available at the Headquarters of NCL at Singrauli (MP) for providing information to the Shareholders of Coal India Limited on demand ACKNOWLEDGEMENT 27.1 The Board of Directors place on record their deep gratitude for the continued support and valuable guidance received from Ministry of Coal and Coal India Ltd. The Directors also acknowledge with thanks the co-operation and help extended by different wings of Govt. of India particularly Ministry of Environment & Forest and Ministry of Finance, as well as from Planning Commission, Director General of Mines Safety, Comptroller & Auditor General of India, Chairman and Members of Audit Board, Statutory Auditors, Registrar of Companies, State Governments of MP and UP and Local Administrative Authorities The Directors are also thankful to the valued customers particularly NTPC and UPRVUNL and Bakers, Contractors and Suppliers for the valuable assistance and help received from them The Directors wish to place on record their appreciation for the commitment, devotion and hard work put in by the employees at all levels. For and on behalf of the Board of Directors Sd/- ( Tapas Kumar Nag ) Chairman-cum-Managing Director Date : 26 th June, 2015 Place: Singrauli 64

66 NORTHERN COALFIELDS LIMITED Annexure-I to directors report Annual Report on CSR Activities for the Financial Year as per Clause (O) of Sub-section (3) of section 134 of the Companies Act Brief outline of the NCL s CSR Policy: 1.1 Northern coalfields Limited (NCL) follows the CIL s Policy for Corporate Social Responsibility (CSR) approved by CIL Board in its 307th meeting held on 29th May, This policy has been framed after incorporating the features of the Companies Act 2013 and as per notification issued by Ministry of Corporate Affairs, Govt. of India on as well as DPEs guidelines. 1.2 The main objective of CSR policy is to lay down guidelines for the company to make CSR a key business process for sustainable development for the Society. It aims at supplementing the role of the Govt. in enhancing welfare measures of the society based on the immediate and long term social and environmental consequences of their activities. 1.3 NCL has adopted Corporate Social responsibility as a strategic tool for sustainable growth. The geographical area where NCL is situated i.e. parts of Singrauli district (Madhya Pradesh) and parts of Sonebhadra district (Uttar Pradesh) is an under-developed area of India with poor infrastructure, healthcare facilities, literacy & employment rate. NCL endeavors towards the upliftment of the poor and underprivileged people of this area through various schemes/activities and also by sharing its in-house facilities with them. The primary beneficiaries of CSR are land oustees, PAP and those staying within the radius of 25Kms of the Project. Poor and needy section of the society living in other parts of Uttar Pradesh and Madhya 65 Pradesh are the secondary beneficiaries. 1.4 The scope of CSR activities undertaken by NCL is as per Schedule VII of New Companies Act The fund for the CSR is allocated based on 2% of the average net profit of the Company for the three immediate preceding financial years or Rs per tonne of Coal Production of previous year whichever is higher. 1.6 NCL has a Board Level Committee on CSR and Sustainable Development which reviews the implementation of CSR activities in every six months and recommends the amount of expenditure to be incurred on CSR activities. 2.0 Overview of CSR activities/ Projects undertaken by NCL during the year In the financial year , NCL have done CSR activities in areas of building infrastructure, water supply, skill development, healthcare, education etc. with a total expenditure of Rs crores as against the total expenditure of Rs crores for the year Also, NCL released an amount of Rs crores to Hindustan Prefab Limited (HPL) in the year as first installment for construction of 5000 schools toilets under Swacch Vidyalay Abhiyan. 2.2 The broad CSR heads and corresponding expenditure are as follows:- i. Roads (GAON JODO ABHIYAN) : NCL s Gaon Jodo Abhiyaan is a step taken by NCL to connect the different villages in Singrauli and adjoining areas with town areas with roads. With the

67 ANNUAL REPORT water. NCL has also constructed 3 ponds and 2 check dams in different villages around NCL. The total expenditure under this head is of Rs Crores. road connectivity, the villagers have started bringing their products to market which otherwise was being arranged through middleman. This has immediately increased their earning capacity. Further many unemployed youths are getting jobs in the town with the start of public transport. In case of any health care emergency they are able to reach our company hospital or private doctors in time. The travel time has reduced significantly. NCL has constructed/carpeted/widened 30 kms of roads approximately in the year with a total expenditure of Rs Crores. iv. Skill Development & Employment Generation (KAUSHAL)- NCL has imparted different types training viz. Security guard training, LMV driving training, bag making training, beautician training, embroidery and tailoring training for employment generation through qualified trainers to the unemployed youths (both male & female) of the nearby villages with an expenditure of Rs Crores. ii. Infrastructure (AADHAR): Infrastructure works undertaken by NCL in the year includes Construction of community halls in villages, electrification of villages, distribution of solar lanterns to poor & needy people, Construction of toilets etc. with a total expenditure of Rs crores. iii. Water Supply (SWACHH JAL) : NCL has installed 9 RO plants, 150 hand pumps in nearby villages to provide safe drinking 66 v. Health (SAB SWASTH)- Besides healthcare facilities provided to poor villagers in different project dispensaries, NCL has organized health camps like family planning camp, cancer detection camp, urology camp, diabetic camp, eye camp etc. in different projects, Central Hospital and NSC. The expenditure incurred by NCL Hospitals and dispensaries in these camps is Rs Crores.

68 NORTHERN COALFIELDS LIMITED a MoU on with Hindustan Prefab Limited (A Govt. of India Unit) for construction of 5000 new toilets and repair of 695 existing toilets under Swacch Vidyalaya Abhiyan. NCL has released an amount of Rs crores to HPL in the year as first installment for the work. vi. Sports/Art & Culture (KHEL TARANG) - NCL has contributed for the promotion of Sports/Art & culture with an expenditure of Rs Crores. 2.4 Web link for the CSR policy and programs vii. Education (SAB SAKSHAR)- NCL has contributed in various educational activities like deficit grant, construction of school buildings, supply of furniture & dari/carpets to Govt. schools etc with an expenditure of Rs Crores. The CSR Policy and Programs/projects can be viewed at: csr.php 3.0. Composition of the Sustainable Development and CSR Committee The Sustainable development and CSR Board level committee constituted in the 180th Board meeting on comprise of following members: a. Shri S.J. Sibal, Part-time non official Director, NC : Chairman b. Shri A.K. Gupta, Part-time non official Director, NCL : Member c. Miss Shantilata Sahu, Director (Personnel), NCL : Member d. Director (Tech/P&P), NCL : Member 2.3 Swachh Vidyalaya Abhiyan NCL is actively involved in Swacch Vidyalaya Abhiyan, a national campaign by the Government of India. Under this program NCL will construct/repair 5695 toilets in government schools of 10 districts of Madhya Pradesh. NCL has signed 4.0 Average net profit of the company for last three financial years Financial Year Net Profit (in Crores) Average net profit for last three years

69 ANNUAL REPORT Prescribed CSR Expenditure (two per cent of the amount as in item 3 above) The prescribed CSR expenditure is Rs Crores (Eighty Crores Twenty Eight Lakhs only) which is equal to 2% of the average net profit of last three years Details of CSR amount spent during the financial year 6.1 Total amount to be spent by NCL under CSR for the financial year was Rs Crores (Eighty Crores and Twenty Eight Lakhs only) 6.2 NCL has released an amount of Rs Crores under CSR for the financial year , out of which an amount of Rs Crores was released as first installment for construction of 5000 toilets to Hindustan Prefab Limited (HPL) under Swachh Vidyalaya Abhiyan. But, since HPL had not submitted the utilization certificate to NCL before the end of financial year , the same was not accounted for and treated as advance. 6.3 Therefore, NCL s CSR expenditure for the year is Rs (Sixty one crore and seventy seven lakhs) Crores and amount unspent in is Rs Crores (Eighteen crores and fifty-one lakhs only) 6.4 Manner in which the CSR amount spent during the financial year The details of the amount spent during the financial year is annexed herewith. 7.0 Implementation and Monitoring of CSR Policy The implementation and monitoring of CSR Policy, is in Compliance with CSR objectives and Policy of the Company. T.K.Nag S.J.Sibal Shantilata Sahu CMD, NCL Chairman, SD&CSR committee Director(P),NCL Dated:26/06/2015 Place. Singrauli. 68

70 NORTHERN COALFIELDS LIMITED ANNEXURE TO ANNUAL REPORT OF CSR ACTIVITIES IN NCL DETAILS OF AMOUNT SPEND DURING FINANCIAL YEAR UNDER CSR Sl.No. CSR Activity Sector in which project is covered Project Amount Outlay in Rs. (in Rs lakhs) Expenditure in Rs. (in Rs lakhs) Cumulative expenditure (in Rs lakhs) Implementing Agency 1 Electrification of Bharuha village Infrastructure Amlori Madhya Pradesh Electricity board 2 Installation of RO plant and providing water through tankers Water Supply Amlori Madhya Pradesh Govt. 3 WBM and carpeting from Kachni main road to Aml. Main road near Arjun Kushwaha house 4 Construction of CC road from Samudaik Bhawan to Biar Adivasi Basti 5 Running and maintinance of 04 nos. embroidery & tailoring training centre. 6 Providing toilets, boundary wall and misc. works at Dr. Ambedkar Bal Vidya Mandir at Jawahar nagar, toilets at primary school of Gharsari village. 7 Providing marriage hall / community center for villagers of Jamshila Nagar, Gharsari, Chandwar at Gharshari village 8 Providing CC approach road to Saati tola of Bansi village Roads Amlori M/s Shivshankar Electricals and Civil Engg. Roads Amlori M/s Parihar Supplier and Co. Skill Dev/Emp. Gen. Bina Bina Project Infrastructure Bina M/s Virendra Singh Infrastructure Bina M/s Kumar and Kumar Roads Bina M/s B.D Singh 9 Village sports(kabaddi tourbnament on Feb 2015 ) Sports and Culture Bina Bina Project 10 Women health check up camp Healthcare Bina Bina Project Hospital 11 Diabetes and Hypertension check up and treatment camp 12 Deepening of existing pond at village Gharsari Healthcare Bina Bina Project Hospital Water Supply Bina M/s Rajshree & Co. 13 Repair of old road 3.00 Kms. At Gharsari Roads Bina M/s Rabindra Construction 14 Construction of ponds in Gorbi village at Chitahi tola 15 Construction of 4 rooms at Saraswati Shishu Mandir, Gorbi Water Supply Block B M/s Rural & Urban Pest Control(Open Tender) Education Block B M/s Rural & Urban Pest Control(Open Tender) 16 Organizing village sports Competition Sports and Culture Block B Block-B 17 CBWE Training Programme Skill Dev/Emp. Gen. Block B Block B project 18 Construction of checkdam at kasar Water Supply Block B M/s Priyanka Enterprises 19 Periodical cleaning of allied works of pond near Singrauli Railway station 20 Construction of CC Road from Panchayat ghar to house of Anis Khan via house of shiv prasad at solang Water Supply Block B M/s VSTSS, Singahi (Purwa Tola) Roads Block B M/s Anant kumar singh 69

71 ANNUAL REPORT Supply of fish seeds in Mudwani village Skill Dev/Emp. Gen. Dudhichua Supply by Asstt. Director Fisheris, Pondi (Maihar) M.P & dropped by CSR Team Dudhichua 22 Construction of road from Jayant STP at Dudhichua Project top Harrai through Abhed Ashram 23 Construction of community centre at Mudwani village 24 Installation of RO plant and water supply through tanker Roads Dudhichua M/s Samay Enterprises Infrastructure Dudhichua M/s Shivshankar Electricals and Civil Engg. Water Supply Dudhichua Nagar Palika Nigam; Singrauli (M.P) through: M/s C.S Marketing Anpara, Sonbhadra (U.P) 25 Installation fo 20 nos. Handpumps Water Supply Dudhichua M/s Anand Enterprises 26 Repair and widening of road from main road to primary school Mudwani 27 Organizing sports Competition at Mirchagarh village 28 Running and maintinance of embroidery & tailoring training centre. 29 Supply of furniture to Govt. middle school, Dudhichua 30 Distribution of 1650 nos. solar lanterns to poor and needy villagers 31 LMV driving training to 100 nos. unemployed youths under CSR. 32 Distribution of 1000 nos. Mosquito nets to poor and needy villagers under CSR. 33 Construction of CC road from Chatri to Churki under CSR 34 Construction of WBM Road from Amlihwa to Khairwari Tola at Ajgurah under CSR 35 Widening of road from Singrauli railway station junction to parshohar Roads Dudhichua M/s Shivshankar Electricals and Civil Engg. Sports and Culture Dudhichua Dudhichua Project Skill Dev/Emp. Gen. Dudhichua Dudhichua Project Education Dudhichua Through open tender by Dudhichua project Infrastructure Headquarter M/s Palak Industries Nagpur, M.P(Open Tender) Skill Dev/Emp. Gen. Headquarter M/s Taggar Motor Driving Training School, Nawanagar, Singrauli (open tender) Healthcare Headquarter Singrauli Cloth House(Committee Purchase) Roads Headquarter M/s K K Bhawasinka- VK Enterprises Roads Headquarter M/s K K Bhawasinka- VK Enterprises (JV) (open tender) Roads Headquarter M/s V.C.Jaiswal 36 Electrification of Bairihwa village Infrastructure Headquarter MPPKVV Co. Ltd, Waidhan 37 Development of pond near Singrauli Railway station and at Madhauli nallah 38 Extension of Ambedkar smriti high school at Singrauli Water Supply Headquarter M/s K K Bhawasinka- VK Enterprises (JV) (open tender) Education Headquarter M/s IP Associates (open tender) 39 Development of muktidham at Chatka Infrastructure Headquarter M/s Binay Kumar Singh (open tender) 40 Construction of Four number rooms at Saraswati Shishu Mandir Higher Secondary School Singrauli 41 Construction of CC road from Hardi to Dhaturaverwa 42 Carpeting of road at Ward No. 9 in Singrauli Education Headquarter M/s Abhay Kumar Tiwari (open tender) Roads Headquarter M/s National Prestige Construction Roads Headquarter M/s K.K Bhawasinka- V.K enterprises (JV) 70

72 NORTHERN COALFIELDS LIMITED 43 Training for security guard to local enemployed youths Skill Dev/Emp. Gen. Headquarter District Administration Singrauli 44 Installation of handpumps Water Supply Headquarter M/s Binay Kumar Singh (open tender) 45 Construction of stage with shed at Ghorawal Infrastructure Headquarter M/s Shailesh Kr. Patahak 46 Organizing village sports in Karela village Sports and Culture Headquarter NCL HQ 47 Heart treatment of Ms. Kusum Kali at SGPGI Lucknow 48 Financial Assistance to Inderjit Singh (shot-put Player) for training 49 Distribution of woolen blankets to BPL Card Holder of nearby villages 50 Setting up of 100 units of Co-operative based poultry farms 51 Providing sports materials to Birkunia and Karela village 52 Distribution of dari/carpets for students and tables and chairs for teachers of Govt. schools of nearby villages 53 Deficit grant pertaining to non- NCL wards in NCL funded schools 54 Talent search program for rural sports persons including provision for sports kits 55 Districbution of 70 nos. solar lanterns in Mudwani village 56 Oraganizing free medical camps in villages for BPL persons 57 Construction of cremation ghat/shed beside Ballia Nala 58 Construction of 500m road towards creamtion Ghat 59 Installation of 80 nos. solar lights in Dheki village by jayant project Healthcare Headquarter SGPGI Lucknow Treatment/operation to be done last weak of Dec 14 Sports and Culture Headquarter NCL HQ Healthcare Headquarter M/s UPICA Handloom and Handicrafts Ltd. Skill Dev/Emp. Gen. Headquarter District Administration Singrauli Sports and Culture Headquarter M/s Gajendra Enterprises Education Headquarter M/s D.K.Singh Enterprises Education Headquarter NCL HQ Sports and Culture Headquarter NCL HQ Infrastructure Headquarter M/s Palak Industries Nagpur, M.P(Open Tender) Healthcare Jayant Jayant project hospital Infrastructure Jayant M/s Ram Ugrah Shah Roads Jayant M/s Ram Ugrah Shah Infrastructure Jayant Through open tender by Jayant project 60 Construction of 200m PCC Road Roads Jayant M/s Chhotelal Shah 61 Deepening of pond in Dheki and Pauri Water Supply Jayant M/s Vikash Associates Nagai 62 Adult Education of villagers Education Jayant Jayant project 63 Installation of RO plant Water Supply Jayant District Administration Singrauli 64 Community Hall in Dheki village Infrastructure Jayant M/s C.P. Mishra 65 Training centre for self-employment for Project Affected and Unemployed villagers 66 Honorarium to instructor for stitching classes conducting by Mahila Mandal 67 Construction of CC road including 8 nos. culverts from existing road to existing bridge at Chakariya village. 68 Construction of CC road from Pradhanmnatri Grameen sadak to Isri tola at Churki village. 69 Installation of RO plant and water supply thorugh tanker Skill Dev/Emp. Gen. Jhingurda Through VOICE of PEOPLE, Rewa Skill Dev/Emp. Gen. Jhingurda Through Mahila Mandal, Jhingurda Roads Jhingurda M/s Sinha Infotech Roads Jhingurda M/s Shivshankar Electrical work Water Supply Jhingurda Nagar Nigam, singrauli (M.P) 71

73 ANNUAL REPORT Village sports in and around Jhingurda Project 71 Construction of boundary wall of High school at Chakariya village 72 Construction of bus stand near Rehta more 73 Renovation of playground, construction of public platform at Garbadha village 74 Construction of bitumen road from primary school to MP border Sports and Culture Jhingurda Jhingurda Project Infrastructure Jhingurda M/s IP Associates Infrastructure Kakri M/s Vimal Electrical works Sports and Culture Kakri M/s Laxminarayan bhumihin visthapith berojgar shramsamvida samiti Roads Kakri M/s D D Singh 75 Installation of handpumps Water Supply Kakri M/s Binay Kumar Singh 76 Running and maintinance of embroidery & tailoring training centre. Skill Dev/Emp. Gen. Kakri Kakri project 77 Construction of check dam for irrigation purposes at Ranhore village 78 Construction of sulabh sauchalaya complex at Auri more including water supply arrangement to the complex 79 Construction of toilet and approach road for middle school at Garbandha village 80 Repair and maintenance of 1.1 kms long PWD road from Ambedkarnagar to Ballia nallah 81 Construction of 1.9 kms long CC road in Ambedkarnagar 82 Installation of RO plant and water supply through tanker Water Supply Kakri M/s Ram Lakhan singh & Co Infrastructure Kakri M/s Ram Lakhan singh & Co Infrastructure Kakri M/s Rajendra Panday Roads Khadia M/s N.K Enterprises Roads Khadia M/s Ranapratap Water Supply Khadia M/s Dishan and brothers 83 Installation of RO plant Water Supply Krishnashila M/s Deioners Speciality Chemical (P) Ltd. 84 Widening of road from Nigahi more to Roads Nigahi M/s Suman Engg Dudhichua ROB 85 Running and maintinance of embroidery Skill Dev/Emp. Gen. Nigahi Nigahi Project & tailoring training centre. 86 Renovation/repair of old buiding and Education Nigahi M/s T.N Pandey construction of 4 nos. Rooms, toilets and verandah at Saraswati Shishu Mandir, Nandgaon 87 Construction of RCC drain along approach road and internal road for cluster no.1 in Nandgaon Infrastructure Nigahi M/s Om Construction 88 Construction of PCC road of cluster no.1 and 500m new WBM road at different locations in Nandgaon Roads Nigahi M/s Dhirendra Construction 89 Installation of RO plant Water Supply Nigahi Nagar Palika Nigam; Singrauli (M.P) 90 Approach road in Nandgaon village Roads Nigahi M/s Randheer Enterprises 91 Construction of yoga hall at NSC Infrastructure NSC M/s Sanjay Construction 92 Electrical works in Yoga hall of NSC Infrastructure NSC M/s Dev Enterprises 93 Health Camps Healthcare NSC Nehru Shatabdi Chikitsalaya, NCL Singrauli TOTAL *** Construction of toilets in schools under Swacch Vidyalaya Abhiyan Infrastructure Headquarter M/s Hindustan Prefab Ltd. Note :NCL has released Rs crores to Hindustan Prefab Limited (HPL) (after signing of MoU on ) as first installment for construction of 5000 toilets under Swachh Vidyalaya Abhiyan 72

74 NORTHERN COALFIELDS LIMITED ANNEXURE- II TO DIRECTOR S REPORT Information in accordance with the provisions of Section 134 (3) of the Companies Act read with Rule (8) of the Companies Accounts Rules, 2014 regarding Conservation of Energy, Technology Absorption and Foreign Exchange Earnings & Outgo. A) CONSERVATION OF ENERGY 1.0 Steps taken for conservation of Energy during the year a) Electrical Energy. i) NCL has earned a bonus of Rs.3.24 crore both from MPSEB and UPPCL points of supply put together towards power factor and load factor rebate during the year NCL has also earned TOD rebate of Rs.3.78 Crore. ii) The following energy conservation measures were taken in :- 1. Compact Fluorescent lamps and other energy efficient lamps have been installed at Hqrs., Block B, Jhingurda, Kakri, Bina, Khadia, CWS, Nigahi and Amlohri Projects of NCL. 2. Time switches have been installed for streetlights in CHP, Mines and residential Areas at Block B, Jhingurda, Bina, CWS, Dudhichua, Nigahi and Amlohri projects 3. Energy saver, enery meter and PF meters have been installed at Block B and Dudhichua Projects. 4. Solar water heater and solar panel for solar light system have been installed at Officer s club/vip Guest house of Jayant project and Solar Light System has sbeen installed at Khadia and Bina Project. b) Fuel & Lubricants i) Strict compliance of approved comprehensive guidelines for monitoring of diesel consumption in all projects of NCL. ii) The actual diesel consumption of mines is being compared with the benchmark data of CMPDI on monthly basis for monitoring purpose. 2.0 Investment and Proposals implemented for reduction of consumption of energy. a) Use of Solar water heater and solar light system at mines. Rs lakhs b) Use of energy efficient lamp (SLV) for street and flood lighting and use of CFL Rs lakhs c) Installation of energy meter, demand controller, energy saver and P.F. Meter in mines and township Rs lakhs d) Time switch for streetlights in CHP, Mines and Residential areas and others Rs lakhs e) Others energy conservation CFL/LED in residential quarters and NR builidings Rs lakhs Total Rs lakhs 73

75 ANNUAL REPORT Achievements : NCL has earned Rs.7.02 crores from MPSEB & UPSEB points supply put together towards rebate on power factor, load factor and TOD during year (c) Impact of measures taken at (a) and (b) for reduction of energy consumption and consequent impact on the cost of production of goods. SL No. Description % increase/ decrease A. Electrical Energy : (i) Consumption of energy /Tonne of coal production (KWH/Tonne) (-) 3.01 (ii) Consumption of energy per cu.m. of composite production i.e. coal plus OB & R.H.(KWH/Cu.m.composite) (+) 2.59 B. Fuel & Lubricant : (i) (ii) Consumption of HSD per Cu.m. of composite production excluding dragline production (Ltr/cu.m.) Consumption of Lubricant per Cu.m. of composite production (Ltr/cu.m.) (-) (-)2.56 (B) (C) TECHNOLOGY ABSORPTION : Form B is enclosed FOREIGN EXCHANGE EARNING & OUT (ii) (i) Activities relating to exports, initiatives taken to increase exports, development of new export markets for products and services and export plans. Total Foreign Exchange used and earned. Company is not engaged in export activities. (Rs. in Crores) Current Year Previous Year (A) Foreign Exchange earned NIL NIL (B) Foreign Exchange used i) C.I.F. Value of Imports (a) Raw materials NIL NIL (b) Components, Stores & Spare Parts (c) Capital Goods NIL 1.83 ii) Repayment of JBIC Loan NIL iii) Repayment of IBRD Loan NIL iv) Travelling Expenses v) Interest/Commitment/Agency charges etc. of IBRD/JBIC NIL 8.33 Total

76 NORTHERN COALFIELDS LIMITED F O R M B Disclosure of Particulars with respect to Technology Absorption RESEARCH & DEVELOPMENT (R&D) 1 Specific areas in which R&D carried out by company: 2 Benefits derived as a result of the above R&D 3 Further Plan of Action: Nil 4 Expenditure on R&D: (a) Capital (b) Recurring (c) Total (d) Total R&D expenditure as percentage of total turnover RESEARCH & DEVELOPMENT (R&D) a. A site specific study on distance between toe of shovel-dumper dump & dragline dump with consideration of safety & economical design of both shovel-dumper dump & dragline dump in all 6 dragline mines of NCL by BIT, Mesra, Ranchi. b. Development of in-line cylinder block boring machine for engines at CWS, Jayant. c. Software development to analyse & view equipment wise daily production & maintenance data of major HEMMs. d. Award of work for benchmarking of diesel/power consumption by an independent agency such as Bureau of Energy Efficiency (BEE), Tata Energy Research Institute (TERI), CMPDI etc. a. Draft report has been submitted in Feb 14. b. Development completed & in-line boring of 03 nos engine block was carried out successfully. c. Software developed under IBS system & is being used. d. Benchmarking of power consumption in two mines of NCL has been completed by CMPDI & report submitted in Mar 15. Total Expenditure Rs Crores TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION: 1 Efforts in brief, made towards technology absorption, adaptation and innovation : 2 Benefits derived as a result of the above efforts 3 In case of imported technology (imported during the last 5 years reckoned from the beginning of the financial year) the requisite information given below: (a) Technology imported: (b) Year of Import: (c) Has technology been fully absorbed: (d) If not fully absorbed, areas where this has not taken place, reasons therefore and future plan and actions: OITDS installed at Amlohri & Khadia and is under installation at Nigahi & Dudhichua OCPs. Improvement in utilisation of dumpers & shovels NIL 75

77 ANNUAL REPORT ANNEXURE-III to DIRECTORS REPORT Form No. MR-3 To, SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 31/3/2015 [Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014] SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 31st March, 2015 The Members, Northern Coalfields Limited, I have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Northern Coalfields Limited(hereinafter called the company). Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing my opinion thereon. Based on my verification of the Northern Coalfields Limited, books, papers, minute books, forms and returns filed and other records maintained by the company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of Secretarial Audit, I hereby report that in my opinion, the company has, during the audit period covering the financial year ended on 31st March, 2015 complied with the statutory provisions listed hereunder and also that the Company has proper Board processes and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter: I have examined the books, papers, minute books, forms and returns filed and other records maintained by Northern Coalfields Limited for the financial year ended on 31/3/2015 according to the provisions of: (i) (ii) (iii) (iv) (v) The Companies Act, 2013 (the Act) and the rules made thereunder; The Securities Contracts (Regulation) Act, 1956 ( SCRA ) and the rules made thereunder; NOT APPLICABLE The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder; NOT APPLICABLE. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings; NOT APPLICABLE. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 ( SEBI Act ):- (a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011; NOT APPLICABLE. (b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992; 76

78 NORTHERN COALFIELDS LIMITED (c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009; NOT APPLICABLE. (d) The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999; NOT APPLICABLE. (e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations,2008; NOT APPLICABLE. (f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client; NOT APPLICABLE. (g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; and (h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998; NOT APPLICABLE (vi) As informed by the Management other applicable Laws have been complied (Mention the other laws as may be applicable specifically to the company). I have also examined compliance with the applicable clauses of the following: (i) Secretarial Standards issued by The Institute of Company Secretaries of India. (ii) The Listing Agreements entered into by the Company with Stock Exchange(s), if applicable; NOT APPLICABLE. During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above subject to the following observations: One of the Director of the Company Shri Niranjan Das, Director(Technical) was ceased to be the Director of the Company with effect from 2nd October 2013 vide Ministry of Coal, Government of India Letter No. 21/3/2009-ASO dated 3rd November, 2014 and Coal India Limited order No. CIL/C5A(ii)/N. Das/D(T),NCL/B-380 dated 4th November I further report that The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act. Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting. Majority decision is carried through while the dissenting members views are captured and recorded as part of the minutes. I further report that there are adequate systems and processes in the company commensurate with the size and operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines. 77

79 ANNUAL REPORT I further report that during the audit period the company has following events:- For example: (i) Public/Right/Preferential issue of shares / debentures/sweat equity, etc.- NIL (ii) Redemption / buy-back of securities - NIL (iii) Major decisions taken by the members in pursuance to section 180 of the Companies Act, NIL (iv) Merger / amalgamation / reconstruction, etc. - NIL (v) Foreign technical collaborations - NIL Place : SINGRAULI Date : 29th April, 2015 Signature: Name of Company Secretary in practice KRUPESH MANKODI FCS No.5773, C P No.:

80 NORTHERN COALFIELDS LIMITED ANNEXURE-IV to DIRECTORS REPORT FORM NO. MGT 9 EXTRACT OF ANNUAL RETURN As on financial year ended on Pursuant to section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Company (Management & Administration) Rules, 2014 I. REGISTRATION & OTHER DETAILS: 1. CIN U10102MP1985GOI Registration Date Registration No.3160 dated Name of the company NORTHERN COALFIELDS LIMITED 4. Category/ Sub-category of the Company Private Company (A subsidiary Company of Coal India Limited) Company within the meaning of Section 2(87) of the Companies Act, Address of the Registration office & contact details Northern Coalfields Limited, Singrauli Colliery, PO. Singrauli, Dist. Singrauli (MP) Whether listed company NO 7. Name, Address & contact details of the Registrar & Transfer Agent, if any - II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY: [All the business activities contributing 10 % or more of the total turnover of the company shall be stated] S. No. Name and Description of main products/ services NIC Code of the Product/service % to total turnover of the company 1. Coal Mining and III. PARTICULAR OF HOLDING, SUBSIDIARY AND ASSOCITATE COMPANIES: S. No. Name and Address of the Company CIN/GLN Holding/Subsidiary/ Associate % of Share Held Application Section 1. Coal India Limited, 10, N S Road, Coal Bhawan, Kolkata, West Bengal L23109WB- 1973GOI Holding Sanction 2(46) of Companies Act

81 ANNUAL REPORT IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity): i) Category-wise Share Holding: Category of Shareholders No. of Shares held at the beginning of the year [as on ] Demat Physical Total % of Total Shares No. of Shares held at the end of the year [as on ] % change Demat Physical Total % of Total Shares A. Promoter s (1) Indian: a) Individual/HUF b) Central Govt c) State Govt.(s) d) Bodies Corp e) Banks/ FI f) Any other Sub-Total(A)(1): (2) Foreign: a)nris-individuals B) Other- Individuals c)bodies Corp d) Banks/FI e) Any other Sub Total(A)(2): Total shareholding of Promoter (A)=(A) (1)+(A)(2) Total shareholding of Promoter(A) B. Public Shareholding (1) Institutions a) Mutual Funds b) Banks/ FI c) Central Govt d) State Govt. (s) e) Venture Capital Funds f) Insurance Companies g) FIIs h) Foreign Venture Capital Funds i) Others Sub-total(B)(1): (2) Non-Institutions a) Bodies Corporate: i) Indian ii) Overseas b) Individuals: during the year 80

82 NORTHERN COALFIELDS LIMITED i) Individual shareholders holding nominal share capital in excess of Rs 1 Lakh ii) Individual shareholders holding nominal share capital in excess of Rs 1 lakh c) Others (specify): Non Resident Indians Overseas Corporate Bodies Foreign Nationals Clearing Members Trusts Foreign Bodies- D R Sub-total(B)(2): Total Public Shareholding (B)=(B) (1)+(B)(2) C. Shares held by Custodian for GDRs & ADRs Grand Total (A+B+C) ii) Shareholding of Promoter: S. No. Shareholder s Name 1. Coal India Limited Shareholding at the beginning of the year [as on ] No. of Shares % of total Shares of the company % of Shares Pledged/ encumbered to total shares Shareholding at the end of the year [as on ] No. of Shares % of total Shares of the company % of Shares Pledged/encumbered to total shares % change in shareholding during the year % change in shareholding during the year nil iii) Change in Promoters Shareholding (please specify, if there is no change): S. No. Particular Shareholding at the beginning of the year [as on ] No. of shares % of total shares of the company 81 Cumulative Shareholding during the year [ ] No. of shares % of total shares of the company 1. At the beginning of the year Datewise Increase/Decrease in Promoters Shareholding during the year specifying the reason for increase/decrease (e.g. No Change allotment/transfer/bonus/sweat equity etc); 3. At the end of the year iv.) Shareholding pattern of top ten Shareholders: (Other than Directors, Promoters and Holders of GDRs and ADRs): S. No. For Each of the Top 10 Shareholders Shareholding at the beginning of the year [as on ] Shareholding at the end of the Year [as on ]

83 ANNUAL REPORT v) Shareholding of Directors and Key Managerial Personnel: S. No. Shareholding of each Directors and each key Managerial Personnel Shareholding at the beginning of the year [as on ] Cumulative Shareholding during the year [ ] No. of Shares % of total Shares of the company No. of Shares % of total Shares of the company 1. Shri T. K. Nag, CMD(Appointed w.e.f ) At the beginning of the year Datewise Increase/Decrease in Promoters Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment / transfer / bonus / sweat equity etc.): Transfer 01/01/2015 At the end of the year Ms. Shantilata Sahu, CMD (Addl. Charge) till Director (Perosonnel) At the beginning of the year Datewise Increase/Decrease in Promoters Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment / transfer / bonus / sweat equity etc.): At the end of the year Shri A. D. Mathur, Director (Technical)(ceased on ) At the beginning of the year Datewise Increase/Decrease in Promoters Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment / transfer / bonus / sweat equity etc.): At the end of the year Shri A. K. Pandey, Director (Finance) At the beginning of the year Datewise Increase/Decrease in Promoters Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment / transfer / bonus / sweat equity etc.): At the end of the year

84 NORTHERN COALFIELDS LIMITED 5. Shri Gunadhar Pandey, Director (Technical)(Appointed w.e.f ) At the beginning of the year Datewise Increase/Decrease in Promoters Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment / transfer / bonus / sweat equity etc.): At the end of the year Shri Vivek Bharadwaj, Director At the beginning of the year Datewise Increase/Decrease in Promoters Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment / transfer / bonus / sweat equity etc.): At the end of the year Shri B. K. Saxena, Director At the beginning of the year Datewise Increase/Decrease in Promoters Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment / transfer / bonus / sweat equity etc.): At the end of the year Shri S. J. Sibal, Director At the beginning of the year Datewise Increase/Decrease in Promoters Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment / transfer / bonus / sweat equity etc.): At the end of the year Shri A. K. Gupta, Director At the beginning of the year Datewise Increase/Decrease in Promoters Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment / transfer / bonus / sweat equity etc.): At the end of the year

85 ANNUAL REPORT Shri D.H. Lalwani, Company Secretary (ceased w.e.f ) At the beginning of the year Datewise Increase/Decrease in Promoters Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment / transfer / bonus / sweat equity etc.): At the end of the year Shri D.K. Sharma, Company Secretary (Acting) (Appointed w.e.f ) vi) At the beginning of the year Datewise Increase/Decrease in Promoters Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment / transfer / bonus / sweat equity etc.): At the end of the year Indebtedness Indebtdedness of the Company including interest outstanding/accrued but not due for payment Indebtedness at the beginning of the financial year Secured loans excluding deposits Unsecured Loans Deposits Total Indebtedness i) Principal Amount Nil Nil Nil Nil ii) Interest due but not paid Nil Nil Nil Nil iii) Interest accrued but not due Nil Nil Nil Nil Total (i+ii+iii) Nil Nil Nil Nil Change in Indebtedness during the financial year Addition Nil Nil Nil Nil Reduction Nil Nil Nil Nil Net Change Nil Nil Nil Nil Indebtedness at the end of the financial year i) Principal Amount Nil Nil Nil Nil ii) Interest due but not paid Nil Nil Nil Nil iii) Interest accrued but not due. Nil Nil Nil Nil Total (i+ii+iii) Nil Nil Nil Nil 84

86 NORTHERN COALFIELDS LIMITED vii) Remuneration Of Directors And Key Managerial Personnel: A. Remuneration to Managing Director, Whole-Time Directors and/or Manager (in Rupees) S.N Particular of Remuneration Name of MD/WTD/Manager Total Amount Shri. Tapas Kumar Nag, CMD, NCL (Assumed change w.e.f. 30/09/2014.) Ms. Shantilata Sahu, Director (Personnel) Whole Year. (Held Additional Charge of CMD, NCL till 29/09/2014.) Shri. Niranjan Das (Director/ Technical) till 02/10/2014. Ceased to be Director (Tech.) w.e.f. 02/10/2013 vide letter no. 21/03/2007-ASO dated 3rd November 2014 issued by Shri Sanjib Bhattacharya, Under Secretary to the Govt. of India, Ministry of Coal. Shri Akhileshwar Dayal Mathur, Director/ Technical(Operations) till 31/01/2015 Shri Gunadhar Pandey, Director(Technical) (Assumed Charge w.e.f. 01/02/2015). (Remuneration paid at ECL) Shri Arun Kumar Pandey, Director (Finance). Ceased to be Dir.(Fin.) on 31/03/ Gross salary (a) Salary as per provision contained in section 17(1) of the Income-Tax Act, 1961 (b) Value of perquisites u/s 17(2) Income-tax Act, 1961 (c) Profit in lieu of salary under section 17(3) Income- tax Act, _ 2. Stock Option Sweat Equity Commission - as% of profit - others, specify Others, please specify Total(A) B. Remuneration to Other Directors: S.N Particulars of Remuneration Name of Directors Total Amount (Rs.) 1. Independent Directors Shri Surinder Jit Sibal Shri Akshay Kumar Gupta Fee for attending board committee meetings Commission Others, please specify Total (1) Other Non-Executive Directors: Shri Vivek Bharadwaj Shri Bipin Kumar Saxena Fee for attending board committee meetings Commission Others, please specify Total (2) Total (B)= (1+2)

87 ANNUAL REPORT C. Remuneration to key Managerial Personnel Other than MD/Manager/WTD: S.No Particular of Remuneration Key Managerial Personnel Total Amount Shri Arun Kumar Pandey, CFO * (superannuated from service on 31/03/2015) Shri Dayaram Harpaldas Lalwani (Ceased to be Company Secretary w.e.f. afternoon of 12/12/2014) Shri Devendra Kumar Sharma (Assumed Charge as Company Secretary (Actg) w.e.f. afternoon of 12/12/2014) 1. Gross salary (a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 (b) Value of perquisites u/s 17(2) Income-tax Act, 1961 (c) Profits in lieu of salary under section 17(3) Income-tax Act, Stock Option Sweat Option Commission- as % of profit others, specify Others, please specify Total * No additional remuneration has been paid to act at the capacity of CFO, NCL. viii. Penalities/ Punishment/ Compounding Of Offences: Type Section of the Companies Act Brief Description Details of penalty/ punishment/ compounding fees imposed Authority (RD/NCLT/ COURT) Appeal made if any (give details) A. COMPANY Penalty Punishment None Compounding B. DIRECTORS: Penalty Punishment None Compounding C. OTHER OFFICERS IN DEFAULT: Penalty Punishment None Compounding 86

88 NORTHERN COALFIELDS LIMITED ANNEXURE V to DIRECTORS REPORT AUDITED PERFORMANCE OF NCL AGAINST MOU Annexure - II Sl. No. Evaluation Criteria Unit Weight (in %) Excellent Very Good MoU Target Good Fair Poor Actual Raw Score Composite Score Documentary evidence & Source/origin of documents Static / Financial Parameters Annual Report & Accounts (i) Growth/Size/Activity 20 (a) Sales Turnover (Net Sales) Rs. Crs Audited Annual Accounts (b) Gross Operating Margin Rate %age Audited Annual Accounts (ii) Profitability 12 (a) PAT/Net Worth %age Audited Annual Accounts (b) EBITDA/Net Block %age Audited Annual Accounts (iii) Costs & Output Efficiency 10 (a) Sales Turnover/Net Block %age Audited Annual Accounts (iv) Liquidity/Leverage 8 (a) Average Collection Period for Trade Receivables No. of Days Audited Annual Accounts Sub Total Impact of Penalty imposed by Competition Commission of India for Rs crores has not been considered in the Targets of BE since the same has been appealed against by the company in the Competition Appellate Tribunal. Impact of the above penalty, if paid in will be excluded and accordingly the financial parameters (P&L a/c and Balance Sheet) will be recasted at the time of evaluation of MoU For the purpose of calculation of Average Collection Period of Trade Receivables, Gross Sales as appearing in P&L A/c in Audited Accounts (inclusive of Excise duty and all other levies & taxes) and Average Trade Receivables as appearing in the Audited Accounts (net off provision for bad & doubtful debts) have been considered. 3. Accounting head considered for Computation of Gross Operating Margin has been given in Annexure-A and the same methodology will be considered at the time of evaluation. 4. Impact of MMDR bill if becomes an act and implemented, its impact will be excluded. 2 Dynamic Parameters (i) Corporate Social Responsibility & Sustainability 3 (a) Infrastructure Development in Villages of Backward Districts. No. of works CSR Records (b) Skill Development Programme for Villagers/ PAPs/ Economically Weaker Section of Society/Women through External Agencies Nos. of persons do- (c) Construction of Rain Water Harvesting Facilities No. of works do- 87

89 ANNUAL REPORT (ii) Research & Development 2 (a) (b) (c) (d) A site specific study on distance between toe of Shovel-Dumper Dump & Dragline Dump with consideration of Safety & Economical Design of both Shovel-Dumper Dump & Dragline Dump in all 6 Dragline Mines of NCL by BIT, Mesra, Ranchi. (3-year Project). Activity during : Completion of Study & Submission of Draft Report. Development of in-line cylinder block boring machine for Engines at CWS, Jayant Software Development to analyse & view equipmentwise daily production & maintenance data of Major HEMMs Award of Work for Benchmarking of Diesel/ Power Consumption by an Independent Agency such as Bureau of Energy Efficiency (BEE), Tata Energy Research Institute (TERI), CMPDI etc. Date Date (iii) Initiatives for Growth 5.5 (a) Approval of EPR for JAYANT OCP (10 to 20 MTPA) 1 15 Feb Mar Mar Feb Feb 15 Mar Feb Jan 15 Feb 15 Mar July Dec 14 Jan 15 Feb Mar Feb Feb Mar Mar Sept Mar Jan Study Report Study Report Study Report Study Report CMPDIL Report (b) Preparation of Master Plan for Singrauli Coalfields 1 14 Feb Feb Mar Mar Jan CMPDIL Report (c) Preparation of EPR for Block-B OCP (3.5 to 6.0 MTPA) Date 0.5 Dec 14 Jan 15 Feb 15 Mar 15 - Dec CMPDIL Report (d) Notification u/s 9 of CBA Act 1957 for Acquisition of 180 Ha land for Bina-Kakri Amalgamation Project (10 MTPA) 1 14 Feb Feb Mar Mar Dec Gazette Notification (e) Possession of Tenancy Land for Block-B OCP Ha Ha Self Declaration (f) Risk Management 1 1 Operationalization of Risk Management through an Independent Head [GM(Safety)] Reporting to CMD & Board of Directors through D(F) Date Feb Feb Mar Mar Jan Study Report 2 Development of Risk Indicators under Risk Management Feb Feb Mar Mar Feb Study Report 88

90 NORTHERN COALFIELDS LIMITED (iv) Project Management & Implementation 4.5 (a) Milestones % Construction of 4 MTPA CHP at Krishnashila (LOA issued on & Site handed over for Construction on ) Jan Jan Feb Feb Mar 15 Dec E&M Report 2 Tendering for Construction of 5 MTPA Incremental CHP at Nigahi (First Tendering was done in Sept 13 but Tender was cancelled due to Technical Reasons) Jan Jan Feb Feb Mar 15 Nov E&M Report 3 Tendering for Construction of 6 MTPA Incremental CHP at Khadia (First Tendering was done in Sept 13 but Tender was cancelled due to Technical Reasons) Jan Jan Feb Feb Mar 15 Nov E&M Report 4 50% Construction of 3.5 MTPA CHP at Block-B (LOA issued on & Site handed over for Construction on ) 5 Supply & Commissioning of 10 no. 100T Dumpers in NCL (Tendering was done in Jan 13 & Supply Order placed in Aug 13) Date Dec Dec Jan Jan Feb 15 Nov E&M Report 0.25 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Aug Excavation Deptt. Report 6 Award of Work for Supply & Commissioning of 05 nos. 410 HP Dozers in NCL (Tender Floated, date of opening of Part-I of Tender is ) Mar Mar Dec Excavation Deptt. Report 7 Tendering & Award of Work for Supply & Commissioning of 02 nos. 2.8 cum Hydraulic Backhoe Shovels in NCL (Part-I of Tender opened on , TCR under Cancellation, Fresh Tendering to be done) Mar Mar Mar Excavation Deptt. Report 89

91 ANNUAL REPORT NIT, Tendering & Award of Work for Supply & Commissioning of 02 nos. 280 HP Graders in NCL (Pre-NIT Meeting Scheduled on ) Mar Mar NIT & Tendering done. Award due Excavation Deptt. Report 9 Supply & Commissioning of 02 nos. 60 KL Water Tanker in NCL (Tender Floated, Date of Opening of Part-I of Tender is ) 0.25 Feb 15 Mar Feb Excavation Deptt. Report 10 Tendering & Award of Work for Supply & Commissioning of 02 nos. 8 T/10 T Cranes in NCL (Part-I of Tender opened on , Case under delibration by TC for Price Bid Opening) Mar Mar Feb Excavation Deptt. Report (b) CAPEX Rs.Crs Audited Annual Accounts (c) Incremental Production from On-going Projects MT CP Deptt. Report (v) Productivity & Internal Processes 4 (a) System Capacity Utilisation %age IED Report (b) Customer Satisfaction 3 1 Joint Agreed 3rd. Party Sampling at Despatch end for Supply of ACQ to Power Utilities under FSA complying Govt. Directives %age S&M Deptt. Report 2 Sized Coal Despatch to Power Sector by Rail S&M Deptt. Report 3 Weighment on Electronic Weighbridge before Despatch to Power Sector by Rail E&M Deptt. Report 4 Commitment to Supply Annual Contract Quantity (ACQ) under FSA to Power Utilities complying directives of Govt. MT S&M Deptt. Report 90

92 NORTHERN COALFIELDS LIMITED (vi) Technology, Quality, Innovative Practices (a) NEW TECHNOLOGY : Preparation of NIT, Tendering & Award of Work for Introduction of Coal Net Phase-I (Finance, Payroll & PIS Modules at HQ) (b) ISO : Training Programmes on IMS (ISO 9001, ISO 14001, ISO & SA 8000) (c) Installation of CCTV in all Road Weighbridges & Other important Locations in Mines (d) Introduction of GPS based Truck Monitoring System in NCL (e) SAFETY : Training of Dumper Operators on Simulator (vii) Human Resource Management (HRM) (a) Certified Training in Project Management (b) (c) (d) (e) Training on Civil/Purchase/Services Contract Management Training in Environment Management/Forest Management/ Land Acquisition Risk Management Training Human Resource Management (HRM) Date Nos. Date Date Nos. Nos. of Executives Mar Mar Award of work not done System Deptt. Report IMS Deptt. Report 1 Dec 14 Jan 15 Feb 15 Mar 15 - Dec E&T Deptt. Report 1 Dec 14 Jan 15 Feb 15 Mar 15 - July E&T Deptt. Report CETI Report HRD Report HRD Report HRD Report HRD Report 5 As per Enclosure Sector Specific /Enterprise Specific Parameters (i) Coal Production (ii) Offtake (iii) AFFORESTATION : Tree Plantation (iv) Output per Manshift (O.M.S.)# 20 MT Audited Annual Accounts MT Audited Annual Accounts Lakh Forest Deptt. Trees Report Tes Audited Annual Accounts Sub Total Grand Total Overall Grade Very Good # Note1- Calculation of Output per Manshift (OMS) is based on Specific Gravity of Coal and Average Stripping Ratio of mines as per Project Reports (PRs) dt. 6th Oct both for Target and Actual purpose. The ASR taken for OMS calculations are in variation with ASR taken for calculation of OBR Adjustment in respect of some mines. Note-2: Non compliance of Corporate Governance will be penalized by way by negative marking and as specified in DPE s OM No.3/19/2013-DPE(MoU) dt.11th Nov.2013 Note-3 Certificate regarding implementation of guidelines issued by DPE as per OM No.DPE/14(38)/1-=Fin dated 28th June 2011 is required from Auditors. Non compliance of DPE s guidelines determined on the basis of certificate will be panlised upto 1 mark (score may increased by 0.04) which is at the discretion of task force at the time of evaluation. Note-4: for achieving offtake target, average 26.3 rakes/ day availability is to be ensured from Indian Railways. 91

93 ANNUAL REPORT ENCLOSURE -1 HRM PERFORMANCE EVALUATION UNDER MOU : Sl. No. HRM-PERFORMANCE INDICATORS Unit Weight (in %) Excellent Very Good MoU Target Good Fair Poor Actual Performance Self Evaluation Raw Score Compsite Score A. Competency & Leadership Development 1(a) %age actualisation of Training Plan 1(b) Training Days per employee per year %age f ullfilment days/ employee Training Expenses as %age of employee cost %age of employee cost %age fulfillment of Training Plan for Multi-Skilling / Skill upgradation of Non-Executives B. Performance Management %age fulfillment Presence of Balance Score Card based Performance Management System for Executives Yes / No 10 Yes No Yes C. Recruitment, Retention & Talent Management 6. Manpower Rationalisation through Redeployment (Redeployment %age) %age of manpower Attrition as ^age of total employees %age Presence of Mentorship Programme Yes / No 5 Yes No Yes Formulation/Implementation of systems for management of Talents, growth opportunities etc. (a) Training on Managerial Effectiveness Nos. of Executives (b) Training on Leadership Competencies Nos. of Executives D. Enabling Creativity & Innovation 10. Nos. of Nominations/entries submitted for National Awards for Individuals E. Employee Relations & Welfare 11. Effectiveness of Grievance Redressal System - %age of grievances settled vis-a-vis received during the year 12. Organising Sports Events/Cultural Programmes for Employees, Schools & nearby Villagers No. of Persons %age Settlement Nos. of Events Presence of Group Gratuity Scheme Yes / No 5 Yes No Yes Number of structured meetings with employees representatives No. of Meetings Grand Total NB : Total score out of 100 awarded on HRM to CPSE will be converted into score out of 5 in MoU on pro-rata basis. 92

94 NORTHERN COALFIELDS LIMITED PRAKASH & SANTOSH CHARTERED ACCOUNTANTS To, The Board of Directors, Northern Coalfields Limited, Singrauli. Dear Sir, Sub: Audit of performance against MOU With reference to your letter regarding our appointment for audit of performance against MOU , we report that:- 1. The achievement stated in attached Performance Evaluation Sheet with respect to Static/ Financial, Dynamic/Non Financial, Sector Specific/Enterprise Specific Parameters are calculated in terms of guidelines for MOU for the year issued by Department of Public Enterprises, Ministry of Heavy Industries and Public Enterprises vide office memorandum No.3/19/2013- DPE( MOU) dated The achievement stated against Static/ Financial, Dynamic/Non financial, Sector Specific/ Enterprise Specific Parameters are rectified from means of verification stated in respective parameters and found correct to the best of our knowledge. 3. Guidelines issued by DPE on Corporate Governance are complied with by the Company. 4. As informed to us that guidelines issued by DPE are implemented by the Company. Dated.30 May, 2015 Place: Singrauli For Prakash & Santosh Chartered Accountants (Firm Reg. No C) Sd/- (CA Vikas Deep) Partner M. No.: Head Office : Rolland Complex Flat No. 8, Upper Floor, Westcott Building, 37/17, The Mall, Kanpur Phones: , pra sant@rediffmail.com; gopalgkmishra@gmail.com Branches : MORADABAD, ORAI, SAMBHAL, DELHI 93

95 ANNUAL REPORT PRAKASH & SANTOSH CHARTERED ACCOUNTANTS To, The Members, M/s Northern Coalfields Limited Singrauli CERTIFICATE 1. We have reviewed the compliance of conditions of Corporate Governance by Northern Coalfields Limited for the year ended 31st March, 2015 although Clause 49 of the Listing Agreement is not applicable to the Company. 2. The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statement of the Company. 3. We have conducted our review on the basis of the relevant records and documents maintained and produced to us for review and the information and explanation given to us by the Company. 4. In our opinion and to best of our information and according to the explanations given to us and the representations made by the Directors and the Management, we certify that the Company has complied with the conditions of Corporate Governance except the following condition:- The Company has not complied with the condition of 50% independent Directors in the Board during the period under consideration. 5. We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiently or effectiveness with which the Management has conducted the affairs of the Company. For PRAKASH & SANTOSH Chartered Accountants Sd/- (CA SANTOSH GUPTA) Partner Membership No ICAI Firm Reg. No C Place : Singrauli Date : 29th April, 2015 Head Office : Rolland Complex Flat No. 8, Upper Floor, Westcott Building, 37/17, The Mall, Kanpur Phones: , , Fax: , prakashsantoshca@gmail.com Branches : MORADABAD, ORAI, SAMBHAL, DELHI 94