Year : 2010-11 - CCL

__________________________________________________ CENTRAL COALFIELDS LIMITED
10.4 IICM charge amounting to 237.61 lakh (Previous Year 235.40 lakh) levied by the Holding
Company @ 0.50 per tonne of coal produced, has been accounted for.
10.5 In terms of CIL's letter No. CGM(F)/126/07 dtd. 08.04.2004 a charge of 2772.60 lakh (Previous
year 2651.76 lakh) levied by the Holding Company @ 6.00 per tonne of coal released during
2010-11 towards Rehabilitation fund for dealing with fire, shifting and stabilization of unstable
areas have been accounted for.
11. GENERAL
11.1 In terms of lease agreement with M/s. Imperial Fastners Pvt. Limited, the Company has granted
a right to occupy and use the assets of the Company. The cost of gross carrying amount at the
beginning of the year is 8019.06 lakh. The accumulated depreciation as at the end of the year
7194.25 lakh. Depreciation for the year is 289.59 lakh. The future minimum lease payment
receivable in the aggregate during the period of lease is 5810.00 lakh. The details of future
lease payment receivables are as under :
2010-11
( in lakh)
(i) Not later than one year 384.00
(ii) Later than one year and not later than five years 1152.00
(iii) Later than five years 4274.00
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Total 5810.00
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11.2 The Bonds received on securitization of dues from State Electricity Boards, from the State
Government of Utter Pradesh and Haryana are treated as long time investment and is valued at
cost. During the year under audit an amount of 942.30 lakh has been redeemed.
11.3 In compliance with AS-22, Deferred Tax Assets has been derecognized for 1412.22 lakh for
the year 2010-11 making a total net deferred tax asset for 49315.75 lakh as on 31.03.2011.
The total deferred tax assets is 57900.10 lakh, liable to reversal in one or more subsequent
period(s), consists of Doubtful debts, Gratuity and Leave encashment on actuarial basis, provision
for Loans & Advances, Obsolescence of stores and carry forward of expenditures of VRS and
P&B etc. Similarly, the deferred tax liability, being the difference of WDV of fixed assets as per
books and as per I.T. Rules, is 8584.35 lakh.
11.4 The Carpet coal at colliery as measured by CIL Measurement Team is 1.57 lakh tonne which
has been included in adopted stock of 163.71 tonne as on 31.03.11. The quantity of carpet coal
is only 0.96% of the total quantity of coal at collieries, as adopted in the accounts of 2010-11.
While valuing carpet coal, digging cost equivalent to loading cost is deducted from net realizable
value of the coal in case the stock is valued at NRV.
11.5 During the year the provision for mine closure has been made based on 6.00 lakh per Ha. for
Open Cast Mines and 1.00 lakh per Ha. for Underground mines on leasehold area. Total cost
so arrived at has been amortized over balance life of mine in years for operating and existing
mine. Due to the above, charge to P&L Account during the year is 4739.30 lakh after adjusting
opening balance of provision (based on earlier basis of providing 0.75 lakh per Ha. each for
technical and biological reclamation) amounting to 4526.27 lakh. The total provision for mine
closure as on 31.03.2011 is 9265.57 lakh.
11.6 Liabilities with regard to the Gratuity plan are determined by actuarial valuation at each Balance
Sheet date using the projected unit credit method. The Company has contributed towards the
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