Year : 2010-11 - CCL

ANNUAL REPORT 2010-11 ________________________________________________________
SCHEDULE - "Q"
NOTES ON ACCOUNTS
1. CONTINGENT LIABILITIES/CAPITAL COMMITMENT
1.1 Description of Contingent Liabilities which have not been provided in the Accounts ( refer
Para-15 of Sch-P) are as under:
Particulars 2010-11 2009-10 Payment under protest and shown
( in Lakh) ( in lakh) under Loans & Advances (Sch.-L)
—————————————————
2010-11 2009-10
( in lakh) ( in lakh)
(a) Claims against the Company 99030.33 41153.63 0.00 0.00
not acknowledged as debt
(b) Sales Tax Liability that may arise 56071.67 43835.09 9270.26 7880.32
in respect of matters in appeal
(c) Royalty & Cess Liability that may arise 32380.66 14321.87 2800.75 2503.36
in respect of matters in appeal
(d) Income Tax liability that may arise 31849.31 18588.57 21297.37 23240.44
in respect of which the Company has
preferred an appeal
Un-expired letter of credit as on 31.03.2011 is 205.43 lakh (Previous year 710.28 lakh).
1.2 Capital Commitment
Estimated amount of contracts remaining to be executed on Capital Account and not provided
for (net of advance) is 3258.74 lakh (previous year 5131.95 lakh).
2. Secured Loans
The Company through its holding Company CIL entered into an agreement with State Bank
Consortium to avail Cash Credit facilities for an aggregate sum of 8300.00 lakh and the said
facilities shall be collaterally secured by creating hypothecation charge over the current assets
comprising of Book Debts, Stock of Raw materials, Semi-finished and finished goods, Stores
and Spares not relating to Plant & Machinery (Consumable Stores & Spares), both present and
future jointly and severally in favour of the said Banks for a sum of 8300.00 lakh. Moreover,
the said facilities have not been availed by the Company during the year under review.
3. Unsecured Loans
Loans from IBRD and JBIC on account of Coal Sector Rehabilitation Project forming part of
Unsecured Loan (Ref. Schedule-E), obtained through CIL are covered by guarantee of CIL and
counter-guarantee by Govt. of India.
4. Fixed Assets
4.1 Land consists of free/ lease hold land and land acquired under Coal Bearing Acquisition Act,
1957.
4.2 Cost of Notified land is capitalized on physical /constructive possession basis and completion of
assessment by the competent authority.
4.3 41789 Ha. of land has been acquired under CBA(A&D) Act, 1957comprising of 13474 Ha. of
tenancy land 16989 Ha. of Forest land and 11326 Ha. of Govt. land. Out of 13474 Ha. of
102