Year : 2010-11 - CCL

ANNUAL REPORT 2010-11 ________________________________________________________
11. APEX OFFICE CHARGES AND INTEREST TO HOLDING COMPANY
11.1 Apex office charges by Holding Company is allocated to revenue mines on the basis of coal
production.
11.2 Interest on loans from CIL is allocated to the units on the basis of Net Fixed Assets( excluding
the Assets procured against specific loan) at the beginning of the year.
11.3 In terms of CIL’s letter No. CGM(F)/126/07 dtd. 08.04.2004 an additional charge at the rate of
6/- per tonne of coal released towards rehabilitation fund for dealing with fire, shifting and
stabilization of unstable areas has been accounted for on the basis of debit advice received
from CIL.
12. OVERBURDEN REMOVAL(OBR) EXPENSES
12.1 For Opencast mines which have been brought to revenue and have rated capacity of 1 million
tones or above, the cost of OBR is charged on technically evaluated average ratio ( Coal : OB)
at each mine with due adjustment for advance stripping and ratio variance account. The net
balance of advance stripping and ratio variance at the end of the year is shown as cost of
removal of Overburden.
The reported quantity of overburden is considered in the Accounts where the variance between
reported quantity and measured quantity is within the permissible limits detailed hereunder:
Annual Quantum
of OBR of the mine
Permissible limits of variance
(Whichever is less)
——————————————————
%age
Quantum
(In Mill. Cu. Mtr.)
Less than 1 Mill. CUM ± 5% 0.03
Between 1 and 5 Mill. CUM ± 3% 0.20
More than 5 Mill. CUM ± 2% NIL
If the variance between reported quantity and measured quantity is more than the above
permissible limit, measured quantity will be considered in the Accounts.
13. IMPAIRMENT OF ASSETS
The Carrying amount of the assets, other than Inventories is reviewed at each Balance Sheet
date to determine whether there is any indication of impairment. If any such indication exists,
the recoverable amount of the assets is estimated.
14. PRIOR PERIOD ADJUSTMENTS
Income/expenditure items relating to prior period(s) which do not exceed
case are treated as income/expenditure for the current year.
5.00 lakh in each
15. GENERAL:
15.1 Retirement Benefits: Provisions for / contribution to retirement benefit schemes are made as
follows:
(a) Provident Fund on actual liability basis,
100