99 Annual Report & Accounts: The Singareni Collieries Company Limited
99 Annual Report & Accounts: The Singareni Collieries Company Limited
99 Annual Report & Accounts: The Singareni Collieries Company Limited
& Accounts
2019-2020
CONTENTS
Performance indicators at a glance 1
Notice 2
Board’s Report 6
Comments of C&AG and Management replies 64
Independent Auditors’ Report and Management replies on the standalone Financial Statements 67
Independent Auditors’ Report and Management replies on the Consolidated Financial Statements 85
Stand alone Financial Statements:
- Balance sheet 95
- Statement of Profit & Loss 97
- Cash flow statement 100
- Notes 102
Statement on subsidiary & JV Companies in Form AOC-I 176
Consolidated Financial Statements 178
i
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
BOARD OF DIRECTORS
1. Chairman & Managing Director
Sri N. Sridhar (From 1.1.2015 FN)
2. Director (Operations)
Sri S. Chandrasekhar (From 2.5.2017 AN)
ii
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
BOARD OF DIRECTORS
as on 30.12.2020
Sri N. Sridhar
Chairman & Managing Director
Sri K. Rama Krishna Rao Sri Sandeep Kumar Sultania Sri R.R. Mishra Sri PSL Swami Sri Ajitesh Kumar
Director Director Director Director Director
iii
7000
6055.77
6000
5106.29 4898.59
5000
4000
2844.54 2822.48
3000
2000 1518.92
651.15 888.08
THE SINGARENI COLLIERIES COMPANY LIMITED 1000 99th Annual Report & Accounts for the year 2019-2020
0
2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s)
Production Off-take (Million Tonnes)
70
67.67 Graphs Indicating Important Statistics
64.04 62.47 64.40
Production 62.01 64.62(Million
Off-take 61.34
Tonnes)
60.79 60.38 58.72
Production Off-take (Million Tonnes) Contribuon to Exchequer: Govt. of Telangana Govt. of India (Rs. in crore)
60 67.67
70 64.40 67.67 62.01 64.62
70 64.04 62.47 61.34 60.79 60.38 58.72 4000
50 64.04 62.47 64.40 62.01 64.62 3680.45
60 61.34 60.79 60.38 58.72 3330.22 3348.40 3504.23 3438.72
60 3500
40 2887.60
50 3000
50 2492.60
3040 2453.38
2500
40 1906.47
2030 2000 1802.63
30
1020 1500
20
010 1000
10 2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s) 500
0
0 2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s) 0
2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s) 2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s)
Productivity (OMS) (Tonne / Man shift) Social overheads (Rs. in crore)
4.89 4.83 4.74
5.00 582.96
Productivity (OMS) (Tonne / Man shift) 600 Socialoverheads
565.66 overheads(Rs.
(Rs.inincrore)
crore)
4.89 (OMS) (Tonne / Man4.74 shift) Social
5.00 4.83
Productivity 514.63 509.10
4.89 4.83 3.86 4.74 3.77
4.005.00 500 582.96
582.96 461.82
600
600 565.66
565.66
3.86 3.77 514.63
514.63 509.10
509.10
4.00 400
3.004.00 3.86 3.77 500 461.82
500 461.82
3.00 300
400
2.003.00 400
200
300
2.00 300
1.002.00 100
200
1.00 200
0.001.00 1000
2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s) 2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s)
0.00
100
0
0.00 2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s) 2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s)
2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s) 0
2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s)
Manpower (Nos.) Debtors (Rs. in crore)
58491
60000 (Nos.) 10000 9461.92
Manpower54043 56282
Debtors (Rs. in crore)
60000 48942 Manpower (Nos.) 58491
50000 54043 56282 58491 10000 9461.92
60000 46021 8000
48942 54043 56282 Debtors (Rs. in crore)
50000
40000 46021 48942 9461.92
50000 10000
8000
46021 6000 5346.27
40000
30000 4195.85
40000 3807.23
8000
6000
4000 5346.27
30000 3131.29
20000 4195.85
30000 3807.23
20000 4000
6000
2000 3131.29
10000
5346.27
20000
10000 4195.85
0
20000 3807.23
10000 4000 3131.29
2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s) 2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s)
0
Net Sales (Rs. in crore) 0
0 2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s)
19822.50Net Sales (Rs. in crore) 2000 2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s)
20000 2019-20
18854.12 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s)
19822.50 17156.77
20000 18854.12
17156.77 0 Debtors as No.of Months Sales (No of Months)
16000 4.99
13127.01 5.00 2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s)
16000 12570.37 Debtors as No.of Months Sales (No of Months)
13127.01 4.99
12000 12570.37 5.00
4.00
12000
8000 4.00 2.98
8000
3.00 Debtors2.65
as No.of Months Sales (No of Months)
2.48
4.99 2.98
4000 5.00
3.00 2.65
2.00 1.76 2.48
4000
0 4.00
2.00 1.76
1.00
0 2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s)
2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s) 2.98
1.00
3.00 2.65
0.00 2.48
Profit before tax Net worth (Rs. in crore) 2019-20 2018-19(In
(r/s) 2017-18
months (r/s) 2016-17
consumption) (No of(r/s) 2015-16 (r/s)
Months)
0.00 2.44 1.76
Profit before tax Net worth (Rs. in crore) 2.00
9000 8346.62 2.50 2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s)
9000
8000 8346.62 7557.87
7557.87 1.89 1.88
8000
7000 1.00
2.00
6055.77 1.69 1.65
7000
6000 6055.77 5106.29
6000 4898.59 1.50
0.00
5000 5106.29 4898.59
5000 2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s)
4000
4000 2844.54 2822.48 1.00
3000 2844.54 2822.48
3000 1518.92
2000 0.50
2000 1518.92 888.08 651.15
1000 888.08
1000 651.15
0 0.00
0 2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s) 2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s)
2019-20 2018-19 (r/s) 2017-18 (r/s) 2016-17 (r/s) 2015-16 (r/s)
4000
Contribuon to Exchequer: Govt. of Telangana
3680.45
Govt. of India (Rs. in crore)
iv
4000 3330.22 3348.403680.45 3504.23 3438.72
3500 3330.22 3348.40 3504.23 3438.72
3500 2887.60
3000 2887.60
3000 2453.38 2492.60
2500 2453.38 2492.60
2500
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
1 Production
4 Output per Man Shift (Tonnes) 4.89 4.83 3.86 4.74 3.77
8 Profit Before Tax (Rs Crore) 2844.54 2822.48 1518.92 888.08 651.15
9 Profit After Tax (Rs Crore) 993.86 1822.91 1177.77 490.56 616.54
12 Equity Share Capital (Rs Crore) 1733.20 1733.20 1733.20 1733.20 1733.20
15 Contribution to Exchequer
19 Debtors as No. of months’ Sales (months) 4.99 2.65 1.75 2.48 2.98
1
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
NOTICE
Notice is hereby given to all the shareholders of The Singareni Collieries Company Limited that the 99th Annual
General Meeting of the Company will be held on Wednesday, 30th day of December, 2020 at 11.00 am at the
Registered office, Head office building, Kothagudem Collieries (P.O) – 507 101, Bhadradri Kothagudem District,
Telangana State to transact the following business.
1. To consider and adopt the Board’s Report and the audited Annual Accounts for the financial year 2019-20.
2. To declare dividend @10% on the paid-up equity share capital for the financial year 2019-20.
3. To appoint Directors in place of Sri Rama Krishna Rao and Sri R.R. Mishra who retires by rotation in accordance
with Section 152 of the Companies Act,2013 and under Article 93 of the Articles of Association of the Company
and is eligible for re-election.
4. To appoint Directors in place of Sri Ajitesh Kumar and Sri Sandeep Kumar Sultania who retires under Article
98 of the Articles of Association of the Company and is eligible for re-election.
5. To fix the remuneration payable to statutory Auditors appointed by C&AG of India for the financial year 2020-
21.
“RESOLVED that pursuant to the provisions of Section 142 and other applicable provisions if any, of the
Companies Act, 2013, the sanction be and is hereby accorded for payment of remuneration and reimbursement
of T.A & out of pocket expenses as decided by the Board of Directors to Statutory Auditors appointed by the
C & AG of India for the audit of accounts of the Company for the financial year 2020-21.”
SPECIAL BUSINESS:
6. To consider and if thought fit to pass with or without modification the following resolution as an ordinary
resolution.
“RESOLVED that pursuant to the provisions of Section 148 and other applicable provisions if any, of the
Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014, the sanction be and is hereby
accorded for payment of remuneration and reimbursement of T.A & out of pocket expenses to Cost Auditors
appointed by the Board of Directors for the audit of cost accounting records of the Company for the financial
year 2020-21 as decided by the Board of Directors.”
7. To consider and if thought fit to pass with or without modification the following resolutions as special resolutions.
“RESOLVED THAT the sanction be and is hereby accorded for payment of remuneration to Sri N. Sridhar as
Chairman & Managing Director of the Company from 1.1.2019 and further continuation beyond five years until
his services are withdrawn by the Government on the existing terms & conditions laid before the meeting duly
initialled by the Chairman for the purpose of identification”.
2
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
8. To consider and if thought fit to pass with or without modification the following resolutions as special resolutions.
“RESOLVED THAT the sanction be and is hereby accorded for payment of remuneration to Sri D. Satyanarayana
Rao as Director (Electrical & Mechanical) of the Company for a period of 2 years from 25.09.2020 on the
terms & conditions laid before the meeting duly initialled by the Chairman for the purpose of identification”.
9. To consider and if thought fit to pass with or without modification the following resolutions as special resolutions.
“RESOLVED THAT pursuant to section 180(1)( a ) of the Companies Act,2013 and other applicable provisions
if any, of the Companies Act, 2013 and relevant rules made thereto including any statutory modifications or
re-enactments thereof, consent of the shareholders of the company be and is hereby accorded, to the Board
of Directors of the Company to pledge, mortgage, hypothecate and/or charge all or any part of the moveable
or immovable properties of the Company and the whole or part of the undertaking of the Company of every
nature and kind whatsoever and/or creating a floating charge in all or any movable or immovable properties
of the Company and the whole of the undertaking of the Company to or in favour of State Bank of India &
ICICI Bank to secure the amount borrowed by the Company by way of swapping Phase-I & Phase–II loans
obtained from PFC and PFC & REC consortium for 2x600 MW STPP.
RESOLVED FURTHER THAT Director (Finance) and Director (Operations) / Director (E&M) be and are
hereby authorized to take such steps as may be necessary for obtaining approvals, statutory, contractual or
otherwise, in relation to the above and to settle all matters arising out of and incidental thereto, and to sign and
to execute deeds, applications, documents and writings that may be required, on behalf of the Company and
generally to do all such acts, deeds, matters and things as may be necessary, proper, expedient or incidental
for giving effect to this resolution.”
By order of the Board
Sd/-
(B. Muralidhara Rao)
GM (Corporate Affairs) &
Company Secretary
Date : 16 .11. 2020.
Place : Kothagudem.
Notes:
1. A member entitled to attend and vote is entitled to appoint a proxy to attend and vote instead of himself and the
proxy need not be a member.
2. The explanatory statement pursuant to section 102 of the Companies Act, 2013 in respect of the special business
is annexed.
3. The Board of Directors in the 555th meeting held on 03.10.2020 recommended dividend @10% on the paid up
equity share capital for the financial year 2019-20. If approved the dividend will be paid to the shareholders as at
the opening hours of 31st December.2020.
4. The Register of members and Share transfer books of the Company will remain closed from 24.12.2020 to
30.12.2020 (both days inclusive) 7 days accordingly.
5. The shareholders are requested to intimate any change in their address to the Registered office of the Company
for sending all correspondence.
3
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
ANNEXURE TO NOTICE
Explanatory statements pursuant to Section 102 of the Companies Act, 2013.
Resolution No.6:
The Board of Directors approved through Circular Resolution No. 2/2020-21 dated 25.09.2020 appointed M/s.R.M.
Bansal & Co., Cost Accountants as Cost Auditors for the audit of cost accounting records of the Company for the
financial year 2020-21 on the following terms & conditions.
a) The fee for Cost Audit will be Rs.3.125 lakh.
b) The travelling and out of pocket expenses will be restricted to 50% of the audit fee subject to production of
documentary evidence.
c) Taxes shall be paid as extra as applicable on furnishing the registration number with the appropriate
authority.
Pursuant to the provisions of Section 148 of the Companies Act, 2013 and the Companies (Audit and Auditors)
Rules, 2014, approval of the shareholders is sought for payment of remuneration and reimbursement of T.A & out
of pocket expenses to M/s R.M. Bansal & Co., as Cost Auditors for the financial year 2020-21 as decided by the
Board of Directors.
None of the Directors is personally interested in the resolution proposed to be passed.
Resolution No.7:
The Board in the 555th meeting held on 03.10.2020 noted that the services of Sri N. Sridhar as C&MD of the
Company was extended by the Govt. of Telangana vide G.O.Rt.No.1442 dated 30.09.2020 for a period up to
31.12.2020 on the existing terms and conditions.
Copies of relevant office orders containing terms & conditions of his appointment are available for inspection at the
Registered Office of the Company on any working day during office hours.
Approval of the shareholders is sought for payment of remuneration to Sri N. Sridhar from 1.1.2019.
None of the Directors except Sri N. Sridhar is personally interested in the resolution proposed to be passed.
Resolution No.8:
The Board in the 555th meeting held on 03.10.2020 co-opted Sri D.Satyanarayana Rao as Director (Electrical &
Mechanical) of the Company for a period of 2 years from 25.09.2020 on the terms & conditions contained in the
office order No. CRP/PER/C/025/2076.
Copies of relevant office orders containing terms & conditions of appointment are available for inspection at the
Registered Office of the Company on any working day during office hours.
Approval of the shareholders is sought for payment of remuneration to Sri D.Satyanarayana Rao from 25.09.2020.
None of the Directors except Sri D.Satyanarayana Rao is personally interested in the resolution proposed to be
passed.
4
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Resolution No.9:
Earlier loan was taken from PFC & REC consortium for 2x600 MW STPP and Repayment of both the loans has
started from January, 2017. The balance outstanding for loan I & II as on 15.08.2020 is Rs.2974 crores and Rs.982
crores respectively. Further informed that for loan I PFC is currently charging interest rate @ 10% and for loan II
@ 9.86% and REC charging an average interest rate of 9.76%.
Swapping of loan I of Rs.2974 crores from PFC to State Bank of India at a rate of interest reduced to 7.25% on the
terms & conditions and as detailed in sanction letter No. CBH/ADV/RM-I/2020-21/215 dt.9.9.2020 of SBI to make
repayment to PFC.
Swapping of loan II of Rs.982 crores from PFC & REC to ICICI Bank at a rate of interest reduced to 6.60% on the
terms & conditions to make repayment to PFC & REC.
Approval is sought for swapping of loans I & II of Rs.2974 crores and 982 crores from PFC to State Bank of India
& ICICI Bank at a rate of interest reduced to 7.25% and 6.60% respectively on the terms & conditions, creation of
security for repayment of loans I & II i.e., hypothecation of project assets by way of first pari-passu charge both
present and future assets including Equitable mortgage of Project Land and authorize Director (Finance) and
Director (Operations) / Director (E&M) to sign and submit all papers, deeds & documents and to do all such acts,
deeds & things as may be necessary for obtaining the loan. The Board recommends the resolution for the approval
of the members.
None of the Directors / Key Managerial Personnel / their relatives of the Company is interested in this resolution.
Sri Anil Kumar jain, Secretary Coal, conducted a review meeting with Sri N.Sridhar, C&MD,
SCCL on February 11, 2020 at Singareni Bhavan, Hyderabad.
5
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
BOARD’S REPORT
Dear Members,
Your Board of Directors have pleasure in presenting the 99th Annual Report and audited financial statements of the
Company for the financial year ended on 31st March 2020.
PERFORMANCE:
The performance achieved by the Company during the year is as under:
2018-19 % variance
Performance parameters 2019-20
(Restated) over 2018-19
Coal
Production (in million tonnes) 64.044 64.401 -0.55
Despatches (in million tonnes) 62.47 67.67 -7.68
(excluding Colliery consumption)
Productivity (output per man shift in tonnes) 4.89 4.83 1.24
Power (2x600 MW STPP)
Gross generation (Million Units) 9226.88 8698.48* 6.07
Auxiliary consumption (Million Units) 555.65 490.27 13.34
Net export (Million Units) 8671.35 8208.21 5.64
Gross sales of coal and power (Rs. in crore) (including all taxes) 24207.61 25860.93 -6.39
* Units were under overhaul during 2018-19.
OPERATIONAL RESULTS:
The financial performance of the Company for the year 2019-20 as compared to the previous year is as under:
(Rs. in crore)
Particulars 2019-20 2018-19 (Restated)
Total revenue 19778.55 20699.36
Profit before interest, depreciation, provisions, tax & prior period 5705.28 6098.47
adjustments
Less: Finance Costs 1192.79 1268.55
Depreciation and Amortisation 1601.93 1663.06
Provisions including write-offs 41.50 318.69
Tax expenses (Incl. Tax on OCI) 1850.68 999.57
Other comprehensive income 24.52 25.69
Total comprehensive income – Profit After Tax 993.86 1822.91
Appropriations :
Dividend 173.32 173.32
Tax on Dividend - 35.63
Transfer to General Reserve 100.00 100.00
Dividend @10% on the paid up equity capital for the financial year 2019-20 is recommended by your Board of Directors in the
555th meeting held on 03.10.2020.
6
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Share capital:
During the year under report, there is no change in the authorised and paid-up share capital of the Company and it
remained at Rs.1800 crore and Rs.1733.20 crore respectively as in the previous year.
Capital Expenditure:
The amount spent on capital additions during the year under report was Rs.2257.60 crore as against Rs.1229.69
crore incurred in the previous year.
PRODUCTION PERFORMANCE:
Production from Opencast & Underground mines:
The Company has achieved 64.044 million tonnes of production during the year under report as against the target
of 67.000 million tonnes. Out of the total production, Opencast projects have produced 55.378 million tonnes and
Underground mines have produced 8.666 million tonnes. The technology-wise details of production achieved
during the year under report against the targets as well as achievement in the previous year are as under:
(in million tonnes)
Sl. 2019-20 2018-19 % variance over
Technology
No. Target Actual Actual 2018-19
1. Underground
a) Hand section - - 0.024 -100
b) Machine mining:
i. Road header 0.110 0.044 0.054 -18.52
ii. Longwall 1.700 1.909 1.621 17.77
iii. High wall 0.150 0.166 0.098 69.39
iv. Bolter Miner 0.270 0.099 0.055 80.00
v. Side Dump Loaders 5.490 4.713 5.048 -6.64
vi. Load Haul Dumpers 1.030 0.740 1.257 -41.13
vii. Blasting Gallery 0.300 0.240 0.218 10.09
viii. Continuous miner 1.150 0.755 0.802 -5.86
Total machine mining 10.200 8.666 9.153 -5.32
Total underground 10.200 8.666 9.178 -5.58
2. Opencast 56.800 55.378 55.223 0.28
Total (1 + 2) 67.000 64.044 64.401 -0.55
7
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
in the previous year. The details of overburden removal by Company equipment and through outsourcing agencies
are as under:
Utilization of Capacity:
2019-20 2018-19
Particulars % Achieved % Achieved
Target Actual Target Actual
against Target against Target
Capacity Utilization 96% 92% 95.83 97% 97% 100
(in tonnes)
2019-20 Variance over 2018-19
Particulars 2018-19 Actual
Target Actual Absolute Percentage
Underground Mines
- Hand section - - 0.59 -0.59 -100.00
- Machine mining 1.46 1.44 1.40 0.04 2.86
Total UG mines 1.46 1.44 1.39 0.05 3.60
Opencast projects 16.50 16.57 16.95 -0.38 -2.24
Overall
- Mines 6.48 6.37 6.22 0.15 2.41
- Mines & Departments 4.96 4.89 4.83 0.06 1.24
8
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Performance of HEMM:
Performance of Heavy Earth Moving Machinery in terms of availability and utilisation as against the previous year
is indicated below:
% Utilisation on
Numbers on roll CMPDI Norms % Availability
Scheduled shift hours
HEMM
% % utilisation
2019-20 2018-19 2019-20 2018-19 2019-20 2018-19
availability on SSH
Draglines 2 2 85 73 72 76 59 (81) 61 (84)
Shovels 68 70 80 60 87 87 56 (93) 58 (97)
Dumpers 529 508 67 50 87 81 36 (72) 38 (76)
Dozers 112 102 70 45 79 73 26 (58) 26 (58)
Drills 61 65 78 40 81 75 26 (65) 26 (65)
Others 176 174 - - 76 75 22 23
Total 948 921 - - 84 79 33 34
% Utilisation on
Numbers on roll SCCL Norms % Availability
Scheduled shift hours *
UGMM Equipment
% % Utilization
2019-20 2018-19 2019-20 2018-19 2019-20 2018-19
Availability w.r.t. SSH
Longwall 1 1 75 67 62 54 35 (52) 34 (51)
Continuous Miner 4 3 75 42 73 75 22 (53) 25 (59)
Road Header 6 6 83 42 92 87 4 (11) 11 (25)
Blasting Gallery 1 1 91 57 85 85 44 (78) 34 (59)
Load Hauler Dumper 29 36 91 57 80 77 24 (42) 25 (43)
Side Discharge Loader 179 174 91 58 93 91 30 (53) 32 (55)
Total 220 221 - - 91 88 29 30
MARKETING:
Target and off-take of coal:
Your Company has achieved 62.46 million tonnes off-take of coal during the year under report, against the target
of 68.00 million tonnes. During the year, the Company has got 84 new customers under power, non-power and
e-auction categories. The Company has entered into MoUs with 7 Public Sector power utilities. The details of
sector-wise AAP target & off-take during the year under report as compared to the previous year are as under.
9
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Mode of dispatches:
The details of dispatches through different modes during the year under report as against previous year are as
indicated below;
ã Third party sampling is being implemented to all the power customers and non- regulated (AoL) customers.
ã Presently 2 Washeries at Manuguru & RG II Areas are functioning. Setting up of washery at JVR OCP,
Sattupally, Kothagudem Area with 4.0 Mtpa capacity under BOO concept is in progress. It is proposed to
establish Washeries at RG-II, Mandamarri and Manuguru Areas.
EXPLORATION ACTIVITIES:
244.93 million tonnes of reserves were proved during the year under report against 178.79 million tonnes proved
in the previous year. With this the total proved reserves in Godavari Valley Coalfield have gone up to 11394.76
million tonnes as on 31.3.2020. The coal extracted by the Company in the Godavari Valley Coalfield up to the year
10
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
2019-20 was about 1595.71 million tonnes. Discussions are in progress with CMPDI to take up 2D/3D seismic
surveys in Godavari Valley Coalfield to unravel the geology and shallow coal deposits.
INDUSTRIAL RELATIONS:
There has been complete industrial peace during the year under report and there were two strikes. The details of
strikes, mandays and production lost in the previous year are as under:
ã The overall housing satisfaction as on 31.3.2019 was 100% as against 100% at the end of previous year.
ã There are 19 swimming pools throughout the Company for the benefit of employees.
ã Yoga & Meditation camps were conducted extensively in all the areas.
ã In order to bring awareness among the employees and their family members on cleanliness as part of Swatch
Bharat campaign, Swatcha Pakhwada programme have been conducted in all Areas of the Company.
ã An awareness programme called as “Mee Kosam – Mee Arogyam Kosam – International Yoga Day” was
conducted on 21st June, 2019 in which 1,27,437 employees and their dependants were participated all over
the Company areas.
ã In the spirit of the above, a mega yoga programme was organised for 5 days from 17th to 21st June, 2019 in all
areas of SCCL with 127437 participants on the eve of International Yoga Day.
ã The Singareni Collieries Educational Society sponsored by the Company has been running 9 Schools at
various areas, Women’s PG & Degree and Girls Junior College at Kothagudem and one Polytechnic College
at Srirampur. Apart from curriculum and academic activities, encouragement has also being given for NCC,
Scouts & Guides movement, various arts like drawing, music etc.
ã Employees are being provided sports facilities & required infrastructure and are also encouraged to participate
in sports & games.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
ã Contributory Post-Retirement Medicare scheme is being implemented for retired NCWA & Executive cadre
employee.
ã The Company has extended insurance coverage to all the employees under Pradhan Manthri Suraksha
Bima Yojana (PMSBY) and paying premium.
Social Overheads:
During the year under report an expenditure of Rs 582.96 crore was incurred on various social overheads as
against Rs.565.66 crore incurred in the previous year.
ã About 4,905 dependants of employees / Ex-employees and locals have undergone training in Skill development
programmes through KGMV in different vocational trades like Computer DTP, Maggam work, Tailoring,
Beautician, Fashion designing etc. Out of the above, 1185 candidates have successfully completed training
and served certificates from KGMV, 3720 have to appear for examination.
ã 60 candidates have undergone training in Pre-Primary Teacher Training at Corp. area, 30 in Spoken English,
through local service providers.
ã 100 candidates have undergone Light Motor Vehicle driving course at different Areas of SCCL.
ã A total of 92 candidates were trained in VOLVO Truck driver training at VOLVO Company training center,
Bangalore.
ã Under PMKVY scheme, a total of 450 women at RG.3 area and at RG-2.Area completed free training in
Pickles / Spice processing / Baking / Snacks making course.
ã Financial support is being continued to Master EK Society, Kothagudem area for Homeo medical care.
ã ST Homes of Kothagudem (Vanavasi Kalyana Paraishad) & Mandamarri (Ramji Gond Vidyarthi Nilayam) were
adopted for free education, uniforms, school bags, books etc. Vidya volunteers at BPA (9) and MNG (1) areas
were engaged for educare of R&R centers and PAPs children.
ã Special children were supported by the Company, who are associated with Satya Sai Deaf & Dumb School,
Manuguru.
ã About 272 candidates were trained at all Areas and attended Army recruitment rally held at during October,
2019. 162 candidates were selected in physical endurance and 114 cleared medical test.
ã As a part of ‘Telanganaku Haritha Haram’ programme of the Govt. of Telangana, the Company has planted
saplings throughout the Areas.
12
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
13
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
C&MD Sri N.Sridhar Visiting Forest Department stall arranged in connection with
Singareni Day (Kothagudem)
Sri N.Balaram Director (Finance) addressing the youth undergoing Security Guard training in
Sainik School Secunderabad
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Annual Report on CSR activities of the Company for the financial year 2019-20 as required under Rule 8 of
Companies (CSR Policy) Rules, 2014 will be given as Annexure-I.
SAFETY STATUS:
Your Company is taking all measures for improving the safety status in mines. Corporate and Region level
Safety Review Meetings were conducted regularly. Safety Audit was also being done. The details of accidents and
persons involved are as under:
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Number of executives & non-executives covered under in-house and outside training programmes are as under:
2019-20 2018-19
Sl. No. Particulars of training programmes Non- Non-
Executives Executives
Executives Executives
1. In-house 366 258 723 96
2. Within the country 687 153 594 90
- External training
- Service training (Skill development) - 22 - -
3. Outside the country 11 - 6 -
Manpower:
The manpower of the company has come down from 48,942 as at the end of the previous year to 46,021 by the
end of the year under report.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
SOLAR POWER:
ã The Board of Directors in the meeting held on 11.05.2018, approved to set up 300 MW capacity solar plants
in SCCL at 9 locations with a capital outlay of Rs.1361.5 crores.
ã Accordingly, EPC order for 1st phase 129 MW solar plants was awarded to M/s BHEL and the work is under
progress.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
ã Similarly EPC order for 2nd phase 90 MW solar plants was awarded to M/s Adani Infra (India) Ltd. and the
work is in under progress at Kothagudem, Bhupalapalli and Mandamarri Areas.
ã The generated solar energy from the existing solar plants is as below.
ã The third phase 81 MW solar plants: In tender stage at the following locations.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
gardens throughout coal belt areas. There is a total stock of 47.74 lakh seedlings in 12 nurseries maintained by
the Company throughout coal belt areas.
Under the State government’s prestigious programme, ‘Telangana ku Haritaharam’ the Company has planted
(including distribution) 81.36 lakhs of saplings for 5th consecutive year.
The plantations raised in the Company Areas are highly successful with survival rate of more than 80%. The
Company is raising such saplings which are getting depleted @ faster rate in Reserve forest areas. Ex: Mitragyna
parvifolia, Adyna cardifolia, Dalbergia latifolia, Pterocarpus santilinus, Hardwikia binata, etc.
28 Effluent Treatment Plants and 7 Sewage Treatment Plants are functioning at different areas to treat workshop
effluents and domestic effluents respectively. 3 STPs are under construction and 3 more are proposed for
construction. 2 packaged STPs are functioning and 1 more packaged STP is under construction.
R&D designed and developed Standard Penetration Test (SPT) equipment with available waste materials in
association with Central Workshop & Exploration Workshop –Three numbers of equipments developed and
distributed to all three regional Exploration Departments for taking up soil tests of foundation characteristics for
proposed external OB dump sites at all upcoming OCPs.
63 SPT’S were conducted during 2019-20. Thus saving of around Rs157.50 Lakhs.
R&D designed and developed core recovery compact adopter which will be used with pneumatic roof bolter for
RMR studies.
10 adopters were developed and handed over to each Agent of underground mines to get the RMR studies for
preparation of scientific reports
Blade angle of 150kW MAMC fan of RK 8 Incline has reduced in view of retreat of mine, resulted in savings of
energy cost by about Rs.17.66 lakhs per annum.
Procured 6 tones of Long Pull HP explosives to improve output/blast performance so as to provide improved coal
availability at face with the existing resources. If, this is proved successfully, coal availability at faces for SDLs
deployed will be improved and thus leads to performance improvement.
Procured 10,000 Nos. of electronic detonators for efficient safe blasting near the habitations in OCP. Most of the
OCPs in SCCL are near/adjoin the habitations. So, associated danger with blasting can be mitigated by adopting
electronic detonators.
Asset transfer of 6 numbers of SAGES and Truck mounted automatic coal quality samplers were developed under
S&T grants of MoC to SCCL.
Developed and implemented the following web application for strengthening safety of the mine:
ã Strata Monitoring System for underground mines to understand the roof and strata behavior.
ã Slope Monitoring System for open cast projects. This will initiate SMS alerts on the TARP of the respective
project as compliance of the recent DGMS circular.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
ã Procured & installed LiDAR slope monitoring equipment at GK OCP for safe working first of its kind in India.
This is laser based detection system with a cost of around Rs.1.25 crore as against Rs.6.0 crore of RADAR-
slope monitoring equipment. The performance is under evaluation and will be replicated in all required
OCPs for promoting safety standards.
The expenditure incurred on R&D during the year under report is Rs 3.73 crore as against Rs.4.21 crore
incurred in the previous year. The expenditure on R&D is 0.02% of turnover.
i. VOD mate
ii. SME bulk explosive analyzer.
iii. NDT equipment
Establishing manufactured Sand Plants for generation of sand from over burden for civil construction purpose
under ‘BOO’ concept.
ã Proposed to establish one small scale manufactured Sand Plant from SCCL available scrap materials. This
plant will use POB as in-put and generates civil construction sand.
Introduction of new blasting techniques like Auto stem for working very close to the habitations.
Establishing geo-thermal energy pilot power plant of 20kw capacity at Manuguru area under S&T grants or
under CSR activity.
Establishing foam plast as leak proof agent applied against the isolation stopping’s in LW.
INTERNAL AUDIT:
The Internal Audit Dept. conducts activities approved by Audit Committee of the Board, which inter-alia include;
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
VIGILANCE:
During the year under report, while 37 cases were pending at the beginning, 100 cases were received during
the year 2019-20. The Vigilance dept. has submitted reports in 92 cases and 45 cases were pending as on
31.3.2020. Based on the reports submitted by the Vigilance department action was taken on 62 employees. The
Vigilance Dept. has conducted surprise checks and surveillance at CHPs, weigh bridges, check posts, OCPs,
mines and certain strategic junction points in and around coal belt areas etc., system studies on issuing HSD oil
to contractors, Coal transport routes, GPS/GPRS based VTS system in different areas, forest tendering process,
guest houses, dependent employment cases etc. The short comings observed during vigilance studies were
analysed and appropriate recommendations were given to the concerned for rectification action. The Vigilance
reports are being reviewed by the Board of Directors.
SUBSIDIARY:
SCCL continues to hold Rs.1408.27 lakh of equity amounting to 81.54% in A.P Heavy Machinery & Engineering
Ltd. as on 31st March, 2020 as at the end of previous year. During the year 2019-20 the Company has incurred a
loss of Rs.350 lakhs as against Rs.837 lakhs in the previous year.
21
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
The APHMEL has been in schedule-IX Companies under the A.P. Reorganisation Act, 2014. As approved by
the share holders of APHMEL in the extraordinary general meeting held on 1.4.2017 and reconfirmed by the
Board in the meeting held on 4.9.2017, MD, APHMEL vide Lr.No.APHMEL/MD/SR/2018 dt.31.1.2018 submitted
demerger proposal to the Expert Committee seeking for “apportionment of 0.86% of equity of APHMEL amounting
to Rs.14,90,100/- held by erstwhile Govt. of AP between the successor States of AP and Telangana in the ratio
of 58.32 : 41.68 as mentioned in the Act i.e., allocation of 86,903 equity shares to the present Govt., of AP and
62,107 equity shares to the Govt. of Telangana being the only issue to be resolved under the AP Reorganisation
Act, 2014 with respect to APHMEL.” Contrary to the demerger proposal submitted by MD, APHMEL, the Expert
Committee vide DO Lr.No.5614/Expert Committee/2014 dt.15.3.2018 of Chairman of the Committee, has given
its recommendation to the effect that APHMEL shall pass to the residual state of Andhra Pradesh in its entirety
in terms of Section 53(1) of the A.P. Reorganisation Act, 2014 since its all the assets & liabilities are located in
that State. The SCCL has furnished its objections to the Expert Committee recommendation on APHMEL vide
Lr.No.CRP/CS/437/374 dt.28.3.2018 to the Spl.Chief Secretary, Energy Dept., GoT. Vide DO Lr.No.1583/Budget
A 2/2017 dt.21.5.2018, Chief Secretary to the GoT has requested Secretary, Ministry of Home Affairs, GoI to set
aside the recommendation of the Expert Committee on APHMEL and issue directions under Section 71(a) of
the Act regarding the division of the interests in the shares of the then Andhra Pradesh in APHMEL and protect
the interests of Telangana and Central Govt. as the SCCL is a joint Company of Telangana and Central Govt.
Communication is yet to be received from the Ministry of Home Affairs, GoI on the subject.
Executed Agreement for New Patrapara Coal block in Odisha State on 23.09.2019 and obtained the allotment
order from Nominated Authority on 30.10.2019.
22
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
STATUTORY AUDITORS:
For the financial year 2019-20, the Comptroller & Auditor General of India has re-appointed M/s. Ramamoorthy
(N) & Co., Chartered Accountants, Hyderabad as Statutory Auditors of the Company under Section 139 of the
Companies Act, 2013.
SECRETARIAL AUDITOR:
For the financial year 2019-20, the Board of Directors of the Company have appointed Sri K.V. Chalama Reddy,
Company Secretary in practice, Hyderabad as Secretarial Auditor of the Company under Section 204 (1) of the
Companies Act, 2013.
The Secretarial Audit report vis-à-vis replies of the management for the remarks of the Secretarial Auditor is given
as Annexure-III.
23
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Cost Auditors:
On the recommendation of 47th meeting of Audit Committee, the Board of Directors in the 550th meeting held on
26.07.2019 appointed M/s.R.M. Bansal & Co, as Cost Auditors of the Company for the financial year 2019-20.
Internal Auditor:
The Board of Directors has appointed Sri M.Subba Rao, GM(F&A) (Internal Audit) as Internal Auditor of the Company
under Section 138 of The Companies Act, 2013.
AUDIT COMMITTEE:
Audit committee of the Company consists of all non-executive Directors viz., Sri Sandeep Kumar Sultania,
Secretary, Energy Dept., Govt. of Telangana, Sri K.Rama Krishna Rao, Principal Secretary, Finance Dept., Govt.
of Telangana, Sri R.R. Mishra, C-MD, Western Coalfields Ltd., Sri PSL Swami, Deputy Secretary, Ministry of Coal,
Govt. of India and Sri Ajitesh Kumar, Deputy Secretary, Ministry of Coal, Govt. of India as Members. The
Board has concurred with the recommendations of the Committee given in its three meetings held during the year
under report.
Board:
Meeting No. Date of Meeting Total Strength of the Board No. of Directors Present
549 06.05.2019 9 8
550 26.07.2019 10 9
551 14.11.2019 10 8
552 22.02.2020 10 8
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Audit Committee:
Meeting No. Date of Meeting Total Strength of the Board No. of Directors Present
46 06.05.2019 5 3
47 26.07.2019 5 4
48 14.11.2019 5 3
Technical Committee:
Meeting No. Date of Meeting Total Strength of the Board No. of Directors Present
2/2019 06.05.2019 4 4
3/2019 26.07.2019 4 3
4/2019 14.11.2019 4 3
1/2020 22.02.2020 4 4
2/2020 11.03.2020 4 4
Meeting No. Date of Meeting Total Strength of the Board No. of Directors Present
NIL
Meeting No. Date of Meeting Total Strength of the Board No. of Directors Present
13 6.5.2019 3 3
14 25.7.2019 3 3
15 21.2.2020 3 3
DIRECTORS:
Sri N. Sridhar, IAS is continuing as C&MD of the Company from 1.01.2015 as appointed by the Govt., of Telangana
vide GO Rt. No.53 dt.31.12.2014 of Energy (HR.A1) Dept.
Sri N.Balram, IRS is continuing as Director (Finance) from 5.12.2018 and as CFO of the Company from 13.03.2019.
Sri S.Shankar has been Director (Electrical & Mechanical) of the Company from 1.02.2017 to 31.07.2020. Later Sri
D. Satyanarayana Rao has been appointed as Director (Electrical & Mechanical) of the Company w.e.f., 25.09.2020
AN.
Sri S. Chandrasekhar is continuing as Director (Operations) from 2.05.2017. He is holding full additional charge of
the post of Director (P.A&W) w.e.f., 20.05.2018 and also full additional charge of the post of Director (E&M) from
1.08.2020 to 25.09.2020 FN.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Sri B. Bhaskara Rao has been Director (Planning & Projects) of the Company from 02.05.2017 to 31.07.2020. Sri
N.Balram, IRS, Director (Finance) is holding full additional charge of the post of Director (Planning & Projects) from
01.08.2020
Sri K. Rama Krishna Rao, IAS, Principal Secretary, Finance dept., Govt. of Telangana is continuing as Director on
the Board of the Company from 28.06.2014 afternoon.
Sri Ajay Misra, IAS, Spl. Chief Secretary to Govt., Energy department, Govt. of Telangana has been Director of the
Company from 20.12.2016 to 31.07.2020. Later Sri Sandeep Kumar Sultania, IAS, Secretary to Govt., Energy
department, Govt. of Telangana has been appointed as Director on the Board of the Company from 28.08.2020.
Sri R.R.Mishra, C-MD, Western Coalfields Ltd. is continuing as Director on the Board of the Company from 7.12.2015.
Sri PSL Swami, Deputy Secretary, Ministry of Coal, Govt. of India has been appointed as Director on the Board of
the Company from 26.06.2019.
Sri Mukesh Choudhary, Director, Ministry of Coal, Govt. of India has been Director on the Board of the Company from
11.01.2019 to 04.06.2020. Later Sri Ajitesh Kumar, Dy.Secretary, Ministry of Coal, Govt. of India has been appointed
as Director on the Board of the Company from 05.06.2020.
Your Directors wish to place on record their appreciation of the valuable services rendered by Sri Ajay Misra, Sri
Mukesh Choudhary, Sri S.Shankar and Sri B. Bhaskara Rao as Directors on the Board of the Company.
i. in the preparation of the annual accounts, the applicable accounting standards have been followed and there
are no material departures;
ii. they have 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 of the Company for that period;
iii. they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities;
iv. they have prepared the annual accounts on a going concern basis;
v. they have devised proper systems to ensure compliance with the provisions of all applicable laws and that
such systems were adequate and operating effectively.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
ACKNOWLEDGEMENTS:
Your Directors placed on record their appreciation for the guidance, support and co-operation received from the
Govt. of Telangana, particularly Energy & Finance Departments and the Govt. of India particularly the Ministries of
Coal, Finance and Environment, Forests & Climate Change.
Your Directors express their thankfulness for the confidence and support received from the valued customers,
bankers & financial institutions and all stake holders of the Company. Your Directors gratefully acknowledge the
valuable guidance extended by the Statutory Auditors, Cost Auditors, Secretarial Auditor, the Comptroller & Auditor
General of India, Ministry of Corporate Affairs and the Director General of Mines Safety.
Your Directors place on record their deep sense of gratitude and appreciation for the relentless efforts of employees
but for which the performance achieved by the Company would have never been possible.
Sd/-
Date : 3.10.2020 (N. Sridhar)
Place : Hyderabad Chairman & Managing Director
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Annexure - I
REPORT ON CSR ACTIVITIES FOR THE YEAR 2019-20
1. A BRIEF OUTLINE OF CSR POLICY AND PROJECTS OR PROGRAMMES:
The CSR policy has been approved by the Board of Directors on 31.1.2015.
The Board in the 549th meeting held on 6-5-2019 has accorded approval for earmarking CSR Budget for an
amount of Rs.40 crore for the financial year 2019-20 as recommended by CSR Committee as per approved
policy of Company.
The CSR Policy of the Company is placed in Company’s website and its Web link is – www.scclmines.
com>csr>csr policy.
Objective:
The main objective of this Policy is to integrate CSR and Sustainability as a key business process for
achieving triple-bottom line impact as mentioned below;
ã SCCL recognizes that pursuit of sustainable development is an integral part of growing its business,
creating value for its stakeholders and in building a responsible future through ethical business practices
and governance.
ã SCCL supports practical measures and policies that will help to protect and improve the environment.
ã SCCL adopts a responsible approach towards communities and aim for sustainable development
without creating dependency.
Implementation:
ã A major portion of the CSR activities should be undertaken in project mode. Every project shall be time
framed.
ã Identified CSR activities are to be implemented / carried out by the Company itself or by other agencies
as prescribed in the provisions of the Companies Act, 2013 and the Rules made there under.
28
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
3. Average Net profit of the company for the last three financial years
Net profit calculated in accordance with provisions of Section 198 of the
Year
Companies Act, 2013(Rs. in crore)
2016-17 888.08
2017-18 1,518.92
2018-19 2,822.49
Total 5,229.49
Average Net Profit 1,743.16
4. Prescribed CSR Expenditure (two per cent of the amount as in item No. 3
above)
2% of the Average Net Profit for the preceding three years - Rs. 34.86 crore
29
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
c) Manner in which the amount spent during the financial year is detailed below:
Statement showing details of CSR activities undertaken during the financial year 2019-20
(In Rupees)
Projects or programs Amount Amount spent on the
Cumulative
Sector in (1) Local area or other outlay projects or programs Amount spent:
CSR project or expenditure
Sl. which the (2) Specify the State and (Budget) Sub-heads: Direct or through
activity upto the
No. Project is district where projects Project or 1) Direct expenditure implementing
Identified reporting
covered or programs were Program on projects or pro- agency
period
undertaken wise grams 2) Overheads:
(1) (2) (3) (4) (5) (6) (7) (8)
1 Providing Chairs and LCD ii Other Area, 5,00,000 5,00,000 5,00,000 Directly
projector system etc. to Hyderabad,
Orthopedic Department, Hyderabad District, Telan-
Osmania General Hospital, gana State
Hyderabad.
2 Providing fencing for x Local Area, Kothagudem, 2,62,000 1,25,000 1,25,000 Directly
development of Garden at Bhadradri Kothagudem
Kothagudem RTC Bus stand District,
under CSR. Telangana State
3 Providing CCTVs and its x Local Area, Kothagudem, 6,00,000 6,00,000 6,00,000 Directly
peripherals to keep effective Bhadradri Kothagudem
surveillance at all crime District,
prone areas in Kothagudem. Telangana State
4 Organizing Medical camp i Local Area, 97,000 - -
at Mulkalapalli Mandal, Mulkalapalli Mandal,
Bhadradri Kothagudem Bhadradri Kothagudem
District. District,
Telangana State
5 Swachtha Hi Seva i Local Area, 4,55,000 3,30,379 3,30,379 Directly
programme - 2019. Coal Belt Districts,
Telangana State
6 Swachtha Pakhwada i Local Area, Coal belt 6,75,000 4,82,760 4,82,760
programme - 2019. areas/ Districts,
Telangana State Directly
7 Establishment of Library in ii Other Area, 5,00,000 5,00,000 5,00,000 District Collector
the existing Government Thirumalagiri village of Mahabubnagar
Building in Thirumalagiri Balanagar Mandal,
village of Balanagar Mandal Mahabubnagar District,
in Mahabubnagar District. Telangana State
8 Construction of 400 mtrs vii Local Area, 21,00,000 18,03,723 18,03,723 M/s. Nilakanta
running track and open GYM Angul, sahu, Angul
in Odisha Forest Ranger’s Angul District,
College, Angul under CSR Odisha State
Activity.
9 Providing compound wall, i Local area, Kothagudem, 64,75,000 17,09,659 17,09,659 District Collector
toilets to Govt. English Bhadradri Kothagudem Bhadradri
school at Kothagudem district, Kothagudem
Telangana state
10 Procurement of 3 Lakh iv Local Area, 1,93,94,100 54,52,155 1,01,93,300 Directly
no.of fruit bearing plants to Coal belt Districts,
distribute in the coal belt Telangana State
areas/districts under CSR
during Telanganaku Haritha
Haram programme-2018
30
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(In Rupees)
Projects or programs Amount Amount spent on the
Cumulative
Sector in (1) Local area or other outlay projects or programs Amount spent:
CSR project or expenditure
Sl. which the (2) Specify the State and (Budget) Sub-heads: Direct or through
activity upto the
No. Project is district where projects Project or 1) Direct expenditure implementing
Identified reporting
covered or programs were Program on projects or pro- agency
period
undertaken wise grams 2) Overheads:
(1) (2) (3) (4) (5) (6) (7) (8)
11 Procurement of Eucalyptus iv Local and Areas, 1,60,00,000 47,21,465 47,21,465 Directly
clones freely distributed to all Districts of
the farmers in Telangana Telangana State
State through the MP’s,
MLA’s and District Collectors
etc. under Telanganaku
Haritha Haram programme
during 2019 planting season
12 Supply of LED street lights x Local area,Kakarlapalli, 9,75,000 8,61,835 8,61,835 Directly
under CSR to Kakarlapalli, Lingapalem, Kotha
Lingapalem, Kotha Lankapalli Lankapalli and Thallamada
and Thallamada villages of villages of Sathupalli,
Sathupalli. Khammam District,
Telangana State
13 Formation of Motorable v Local area, 53,00,000 - - -
road to the uphill temple of Nacharam village,
Lord Sri Lakshmi Narasimha Dammapeta Mandal, Near
Swamy Temple, Nacharam Sathupalli, Bhadradri
village, Dammapeta Mandal, Kothagudem District,
Telangana State. Telangana State
14 Providing of textbooks, ii Local Area, 50,000 37,650 37,650 Directly
shoes, belts etc. for 45 poor Kistaram village of
students of Mandal Parishad Sathupalli Area,
Primary School of Kistaram Khammam District,
(v), Sathupalli. Telangana State
15 Renovation of conference x Local Area, 12,50,000 11,16,099 11,16,099 Directly
hall in 1st floor of Nyaya Khammam,
Seva Sadan, Building in Khammam District,
the District Court Complex, Telangana State
Khammam.
16 Certain additional enhanced x Local Area, 2,50,000 - - -
work for renovation of Khammam,
conference hall in first floor of Khammam District,
Nyaya Seva Sadan building Telangana State
in District Court Complex,
Khammam.
17 Laying CC roads in villages x Local Area, 2,00,00,000 - - -
and Mandals of Sathupalli villages and Mandals of
Assembly constituency. Sathupalli constituency,
Khammam District,
Telangana State
18 Providing financial aid ii Local Area, 60,000 20,000 20,000 Directly
towards payment of Rejerla village of
Honorarium for hired Sathupalli Mandal,
Hindi Teacher of Z.P.S. Khammam District,
School Rejerla village, Telangana State
Sathupalli Mandal.
31
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(In Rupees)
Projects or programs Amount Amount spent on the
Cumulative
Sector in (1) Local area or other outlay projects or programs Amount spent:
CSR project or expenditure
Sl. which the (2) Specify the State and (Budget) Sub-heads: Direct or through
activity upto the
No. Project is district where projects Project or 1) Direct expenditure implementing
Identified reporting
covered or programs were Program on projects or pro- agency
period
undertaken wise grams 2) Overheads:
(1) (2) (3) (4) (5) (6) (7) (8)
19 Providing CC path ways, ii Local Area, 14,00,000 - -
renovation of girls toilets, Rejarla village of
extension of store shed, Sathupalli Mandal,
seating for dining, water Sathupalli Constituency,
supply arrangements etc. Khammam District,
to Govt. School at Rejarla Telangana State
village, Sathupalli.
20 Renovation/repair works to x Local Area, 7,85,000 - - -
community hall such as CC Ambedkar colony Grama-
path way, toilet panchayat, Penagadapa
repair, wall over the stage, village, Near GK OCP,
water supply arrangements Bhadradri Kothagudem
etc. at Ambedkar Colony, District,
Penagadapa village. Telangana State
21 Procurement of 1000 Nos of i Local Area, 2,00,000 2,00,000 2,00,000 District Collector
T-Shirts for Mission Plastic Khammam District, Khammam
Free Khammam. Telangana State
22 Road & drain works in x Local Area, Sathupalli 2,00,00,000 3,49,954 1,79,62,489 District Collector
Sathupalli Nagarapanchayat. Nagarapanchayat, Khammam
Sathupalli, Khammam
District, Telangana State
23 Laying of CC/BT roads, x Local area, Sathupalli 85,00,000 29,89,419 75,80,036 District Collector
drains etc., in Sathupalli Nagara Panchayat, Khammam
Nagara Panchayat under Khammam dist,
CSR. Telangana state
24 Laying of CC roads in x Local area, 85,00,000 10,50,000 42,98,748 District Collector
Kistaram (v), Sathupalli Kistaram village in Khammam
Mandal under CSR. Sathupalli Mandal,
Khammam Dist,
Telangana state
25 Laying of CC roads, drains x Local area, 30,00,000 3,24,834 22,52,987 District Collector
etc., in Rajeev Nagar, Siddaram Grama Khammam
Siddaram GP, Sathupalli Panchayat, Sathupalli,
under CSR. Khammam dist,
Telangana state
26 Roads and drains works x Local Area, Sathupalli, 2,00,00,000 51,35,149 1,11,35,169 District Collector
pertaining to Sathupalli, Kistaram and Rejerla, Khammam
Kistaram and Rejerla of Khammam District ,
Khammam Dist. under CSR. Telangana State
27 Development works such as x Local Area, 50,00,000 34,99,039 49,99,039 District Collector
roads and drains in villages Sathupalli Constituency, Khammam
of Sathupalli Constituency Khammam District,
under CSR Telangana State
28 Providing bore wells with i Local Area, 21,77,000 6,87,000 15,75,000 Directly
hand pumps and deep bore Sathupalli Constituency,
wells in the surrounding Khammam District,
villages of JVR OC, Telangana State
Sathupalli
32
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(In Rupees)
Projects or programs Amount Amount spent on the
Cumulative
Sector in (1) Local area or other outlay projects or programs Amount spent:
CSR project or expenditure
Sl. which the (2) Specify the State and (Budget) Sub-heads: Direct or through
activity upto the
No. Project is district where projects Project or 1) Direct expenditure implementing
Identified reporting
covered or programs were Program on projects or pro- agency
period
undertaken wise grams 2) Overheads:
(1) (2) (3) (4) (5) (6) (7) (8)
29 Construction of toilets in the x Local Area, Sathupalli, 2,00,000 1,98,000 1,98,000 Directly
premises of Hon’ble Sr. Civil Khammam District,
Judge court, Sathupalli Telangana State
30 Providing 20 bore wells i Local Area, Koyagudem 16,00,000 - -
for drinking water in the OCP-III and Thadikalapudi
surrounding villages of surrounding villages of
Koyagudem Open Cast Yellandu Area,
Project-III and Thadikalapudi Bhadradri Kothagudem
Railway siding of Yellandu District,
Area. Telangana State.
31 Providing of R.O plant one i Local Area, Erya and 4,00,000 - -
each at Erya and Thavurya Thavurya Thandas,
Thandas. Tekulapally Mandal,
Near Yellandu Area,
Bhadradri Kothagudem Dist.
Telangana State
32 Providing certain x Local Area, 53,90,000 1,97,688 1,97,688 Directly
infrastructure facilities such Thadikalapudi village,
as roads, bore wells, R.O Near Yellandu Area,
plants etc. at Thadikalapudi Bhadradri Kothagudem Dist,
village, near Yellandu. Telangana State
33 Development activities such x Local Area, 20,00,000 - -
as renovation works and Tekulapalli Mandal and
providing toilets in Govt. Yellandu,
Junior and Degree colleges Yellandu Constituency,
of Yellandu - Providing Bhadradri Kothagudem
R.O mineral water plant at District,
Old bus stand, Yellandu Telangana State
and at Bethampudi Darga,
Tekulapalli Mandal.
34 Construction of stone masonry x Local Area, 1,04,00,000 - -
dividers and providing central Tekulapalli Mandal,
lighting in Tekulapally Mandal Yellandu Constituency,
headquarters limits on Bhadradri Kothagudem
Tekulapally – Gundala road District,
from KM 0/0 – 1/0 in Bhadradri Telangana State
Kothagudem Dist.
35 Road works pertaining to x Local Area,Tekulapally & 1,00,00,000 57,74,033 67,63,811 District Collector
Tekulapally & Yellandu of Yellandu, Bhadradri Bhadradri
Bhadradri Kothagudem Kothagudem District, Kothagudem
District under CSR. Telangana State
36 Providing of tree guards for iv Local Area, Manuguru, 15,00,000 5,90,000 5,90,000 Directly
avenue plantation in different Bhadradri Kothagudem
parts of Manuguru and District,
surrounding villages. Telangana State
37 Plantation at Govt.ITI campus iv Local Area, Manuguru, 1,00,000 - -
and Court campus, Manuguru Bhadradri Kothagudem Dist.
under CSR. Telangana State
33
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(In Rupees)
Projects or programs Amount Amount spent on the
Cumulative
Sector in (1) Local area or other outlay projects or programs Amount spent:
CSR project or expenditure
Sl. which the (2) Specify the State and (Budget) Sub-heads: Direct or through
activity upto the
No. Project is district where projects Project or 1) Direct expenditure implementing
Identified reporting
covered or programs were Program on projects or pro- agency
period
undertaken wise grams 2) Overheads:
(1) (2) (3) (4) (5) (6) (7) (8)
38 Providing Iron fencing iv Local Area, 5,00,000 - -
with Main gate around the Manuguru,
premises of Court of Judicial Bhadradri Kothagudem
Magistrate of First Class, District,
Manuguru to safe guard the Telangana State
plants and to fill up the OB in
the premises of the Court for
plantation.
39 Construction of CC x Local Area, 1,91,00,000 - -
roads and side drains in Gramapanchayats of Ma-
Gramapanchayats of nuguru Mandal,
Manuguru Mandal, Pinapaka Bhadradri Kothagudem
Assembly constituency. District,
Telangana State
40 Laying cc roads at x Local Area, Manuguru, 64,34,000 3,14,060 51,16,652 Directly
Gandhinagar, Manuguru Bhadradri -Kothagudem
District,
Telangana State
41 Laying roads, drains and x Local Area, 43,50,000 9,14,814 13,76,433 Directly
bore wells at the new New padmagudem,
Padmagudem colony near Manuguru,
Railway station, Manuguru Bhadradri Kothagudem
District,
Telangana State
42 Drilling of bore holes at i Local Area, 1,17,000 91,651 91,651 Directly
public toilets in bazar area, Bandarigudem,
Bandarigudem, Manuguru Manuguru,
Bhadradri Kothagudem
district,
Telangana State
43 Cultural Event – Qadir Ali v Other Area, Hyderabad, 3,00,000 3,00,000 3,00,000 Directly
Baig Theatre Festival in Hyderabad District, Telan-
Hyderabad. gana State
44 Financial assistance for v, vii Local Area, 2,00,000 1,70,000 1,70,000 District Collector
Cricket Tournament and Karodabhal village, Angul
village Jathara/fair in Naini Coal Block,
Karodabhal village of Naini Angul District,
Coal Block, Angul District. Odisha State
45 Raising and first year iv Local Area, 1,59,20,000 68,33,730 68,33,730 Directly
maintenance of Avenue Rajeev rahadari road of
plantation all along the Godavarikhani,
Rajeev Rahadari road from Peddapalli District,
Mugdumpur to Telangana State
Bandampally by SCCL
under Telangana Ku Haritha
Haram, Phase-V during 2019
planting season – a length of
24 KM.
34
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(In Rupees)
Projects or programs Amount Amount spent on the
Cumulative
Sector in (1) Local area or other outlay projects or programs Amount spent:
CSR project or expenditure
Sl. which the (2) Specify the State and (Budget) Sub-heads: Direct or through
activity upto the
No. Project is district where projects Project or 1) Direct expenditure implementing
Identified reporting
covered or programs were Program on projects or pro- agency
period
undertaken wise grams 2) Overheads:
(1) (2) (3) (4) (5) (6) (7) (8)
46 Development of greenery iv Local Area, 2,62,73,000 64,74,281 64,74,281 Directly
in Peddapalli Municipality Peddapalli Municipality,
including raising of avenue Peddapalli district,
plantations in all the approach Telangana State
roads/internals roads,
beautification of medians,
block plantation in vacant
patches and landscaping of
traffic islands etc. by SCCL
under Telangana Ku Haritha
Haram during 2019 planting
season.
47 Development works such x Local Area, 31,50,000 - -
as laying roads, drilling bore Neighboring villages of
wells, Installation of R.O Ramagundam-I Area,
plants, providing tube lights Peddapalli District,
etc. around neighboring Telangana State
villages of Ramagundam-I
Area under CSR programme.
48 Providing ground leveling x Local Area, 20,00,000 20,00,000 20,00,000 O/o. Commis-
work & parade wall Ramagundam, sioner of Police,
construction etc. for Peddapalli District, Ramagundam
new parade ground and Telangana State
furniture for Police stations
in Ramagundam Police
Commissionerate.
49 Construction of additional ii Other Area, 2,00,00,000 60,00,000 60,00,000 District Collector
classrooms and additional Dharmapuri Jagtial
toilets in Z.P High Schools constituency,
of Dharmapuri assembly Jagtial district,
constituency. Telangana State
50 Financial aid for maintenance ii Local Area, 5,00,000 5,00,000 5,00,000 Directly
of Manochaitanya Godavarikhani,
Institution established for Peddapalli District,
differently abled children at Telangana State
Godavarikhani.
51 Laying of CC roads and x Local Area, 2,00,00,000 - -
construction of underground Ramagundam
drainages in various Constituency,
divisions of Ramagundam Peddapalli District,
Municipal Corporation. Telangana State
52 Providing Dual Desks in ii Other Area, 1,00,00,000 70,00,000 70,00,000 District Collector
some High Schools of Jagtial Jagtial District, Jagtial
District under CSR Telangana State
53 Infrastructure development x Local area 1,00,00,000 20,20,841 29,11,819 District Collector
works in the nearby villages Ramagundam, Peddapalli
of Ramagundam area. Peddapalli district,
Telangana state
35
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(In Rupees)
Projects or programs Amount Amount spent on the
Cumulative
Sector in (1) Local area or other outlay projects or programs Amount spent:
CSR project or expenditure
Sl. which the (2) Specify the State and (Budget) Sub-heads: Direct or through
activity upto the
No. Project is district where projects Project or 1) Direct expenditure implementing
Identified reporting
covered or programs were Program on projects or pro- agency
period
undertaken wise grams 2) Overheads:
(1) (2) (3) (4) (5) (6) (7) (8)
54 Installation of LED Lighting at x Local area, anthargaon, 60,00,000 33,00,000 33,00,000 District Collector
rural Areas of Ramagundam Palakurthy of Peddapalli
(anthargaon, Palakurthy). Ramagundam,
Peddapalli District,
Telangana state
55 Internal roads CC Roads x Local area, 1,00,00,000 19,54,026 19,54,026 District Collector
& other works at Eklaspur, Ramagundam, Peddapalli
Akenpalli, Anthergaon, Peddapalli District,
Brahmanpalli etc. villages Telangana state
56 Construction of model Police Local area, 3,00,00,000 1,50,00,000 3,00,00,000 MD, TSPHCL
Station at Godavarikhani-I Godavarikhani-I town,
town. Peddapalli District,
Telangana State
57 Development of greenery iv Local Area, 2,46,00,000 1,17,80,222 1,17,80,222 Directly
in Manthani Municipality Manthani Municipality,
by SCCL through raising Peddapalli district,
of avenue plantation in all Telangana State
the approach roads/internal
roads, beautification of
medians & landscaping
of traffic islands and strip
plantation in vacant patches
during 2019 planting season
– Telangana Ku Haritha
Haram programme.
58 Providing LED lights for x Local Area, Ramagiri 5,00,000 - -
SCCL project affected Mandal,Ramagundam -III
villages of Ramagiri Mandal. Area, Peddapalli District,
Telangana State
59 Certain works such as x Local Area, 1,50,00,000 - -
providing furniture, solar Manthani constituency,
system to Anganwadi Peddapalli district,
schools and community Telangana State
halls in four Mandals of
Manthani Constituency.
60 Providing street lights x Local Area, 1,00,00,000 40,00,000 70,00,000 District Collector
in Manthani Assembly Manthani constituency, Peddapalli
Constituency Peddapalli district,
Telangana State
61 Providing drinking wa- i Local Area, 36,00,000 7,44,982 7,44,982 Directly
ter facility to the villages Baswarajpalli,
of Baswarajpalli, Dhar- Dharmaraopet,
maraopet, Venkateswarpalli, Venkateswarpalli,
Parshurampalli, Nagaram- Parshurampalli,
palli and Gollapalli includ- Nagarampalli and Gollapalli
ing their Hamlets of Bhupal- including their Hamlets of
palli during summer period Bhupalpalli,
(01.04.2019 to 30.06.2019) Jayashankar
by hired tractor tankers un- Bhupalpalli District,
der CSR. Telangana State
36
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(In Rupees)
Projects or programs Amount Amount spent on the
Cumulative
Sector in (1) Local area or other outlay projects or programs Amount spent:
CSR project or expenditure
Sl. which the (2) Specify the State and (Budget) Sub-heads: Direct or through
activity upto the
No. Project is district where projects Project or 1) Direct expenditure implementing
Identified reporting
covered or programs were Program on projects or pro- agency
period
undertaken wise grams 2) Overheads:
(1) (2) (3) (4) (5) (6) (7) (8)
62 Extending ophthalmology i Local Area, 4,58,000 39,600 39,600 Directly
services such as cataract Surrounding villages of
surgeries and providing Kakatiya Khani OC-III
spectacles to people of project of Bhupalpalli Area,
surrounding villages of KTK- Jayashankar
OC-III project, Bhupalpalli Bhupalpalli District,
Area. Telangana State
63 Development works such x Local Area, 50,00,000 4,94,696 4,94,696 District Collector
as construction of bus Kakatiya Khani OCP-III Bhupalpalli
shelter, LED street lighting project affected villages
and furniture to school (Baswarajupalli
building etc. at project and Parashurampalli)
affected villages of KTK OC- hamlet of Dharmaraopet
III Project (Baswarajupalli village, Ghanpur (M),
and Parasurampalli) hamlet Jayashankar Bhupalpalli
of Dharmaraopet village, District,
Ghanpur (M), Jayashankar Telangana State
Bhupalpalli District.
64 Providing basic amenities ii Local Area, 9,65,000 - -
and infrastructure such Jangedu village near
as painting to school, to KTKOC-II project of
construction of stage, fans, Bhupalpalli,
chairs, tables and R.O Jayashankar Bhupalpalli
plants etc. to the ZP High District,
School, Jangedu village Telangana State
near to KTKOC-II project,
Bhupalpalli Area.
65 Providing 10 No.s cranes v Other Area, 6,00,000 2,35,410 2,35,410 Directly
to clear the traffic Jams Medaram village of Tadvai
for a period of one week Mandal,
during the Sammakka Mulugu District,
Sarakka Jathara at Telangana State
Medaram village.
66 Providing water takers, JCBs v Other Area, 26,75,000 18,28,340 18,28,340 Directly
and cranes etc. during the Medaram village of Tadvai
ensuing Sri Sammakka Mandal,
Saralamma Jathara (2020) at Mulugu District,
Medaram village, Tadvai Telangana State
Mandal.
67 Organizing Medical camp for i Local Area, Jangedu 1,94,000 - -
the Project Affected People village near to KTKOC-II
(PAP) of Jangedu village project of Bhupalpalli,
near KTK OC-II project of Jayashankar Bhupalpalli
Bhupalpalli Area under CSR. District,
Telangana State
68 Conducting Mega medical i Local Area, Bhupalpalli, 2,00,000 1,66,693 1,66,693
camp for Project Jayashankar
Affected Peoples of KTK Bhupalpalli District,
OC III, Bhupalpalli Area. Telangana State Directly
37
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(In Rupees)
Projects or programs Amount Amount spent on the
Cumulative
Sector in (1) Local area or other outlay projects or programs Amount spent:
CSR project or expenditure
Sl. which the (2) Specify the State and (Budget) Sub-heads: Direct or through
activity upto the
No. Project is district where projects Project or 1) Direct expenditure implementing
Identified reporting
covered or programs were Program on projects or pro- agency
period
undertaken wise grams 2) Overheads:
(1) (2) (3) (4) (5) (6) (7) (8)
69 Development works such x & xi Local Area, Bhupalpalli 5,00,00,000 31,48,903 1,81,48,903 District Collector
as roads, drains and sheds Assembly Constituency, Jayashankar
etc. in Bhupalpally Assembly Jayashankar Bhupalpalli
Constituency under CSR Bhupalpalli District,
Telangana State
70 Infrastructure x Local Area, 16,00,000 - -
development works such Surrounding villages of Bel-
as roads, bore wells, toilets lampalli Area,
and wash rooms in the Komarambheem
surrounding villages of Asifabad District,
Bellampalli area under CSR Telangana State
Programme.
71 Development works such as x Local Area, 2,00,00,000 - -
laying CC roads, side drains, Asifabad Assembly
construction of bus shelters, Constituency,
community halls, providing Komarambheem
compound walls and kitchen Asifabad District,
sheds to schools in Asifabad Telangana State
Assembly Constituency.
72 Infrastructure development x Local area, Goleti of 50,00,000 5,34,530 47,72,530 District Collector
works in Goleti of Asifabad Asifabad constituency, Komarambheem
constituency Komarambheem, Asifabad Asifabad
District,
Telangana State
73 Infrastructure development x Local area, Tandur of 23,00,000 10,43,952 17,33,952 District Collector
works at Tandur in Bellampalli Komarambheem
Bellampalli. Komarambheem Asifabad
Asifabad District,
Telangana State
74 Infrastructure development x Local area, Goleti of 2,00,00,000 13,99,717 1,78,37,717 District Collector
works at Goleti of Tiryani Tiryani Mandal, Asifabad Komarambheem
Mandal, Phase-II. Constituency, Asifabad
Komarambheem
Asifabad District,
Telangana State
75 Roads and other x Local Area, Tiryani 2,00,00,000 46,59,222 1,06,59,222 District Collector
development works in certain Mandal, Asifabad Komarambheem
villages of Tiryani Mandal. Komarambheem District, Asifabad
Telangana State
76 Hiring of Ambulance for i Local Area, Bellampalli, 32,48,000 6,05,870 6,05,870 Directly
mobile medical camp. Komarambheem
Asifabad District,
Telangana State
77 Raising of Avenue iv Local Area, 1,16,00,000 46,30,163 46,30,163 Directly
plantations (24.5KM) in Kethanpally
Kethanpally Municipality of Municipality,
Mandamarri Area by SCCL Mandamarri Area,
under Telangana ku Haritha Mancherial District,
Haram programme during Telangana State
2019 season.
38
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(In Rupees)
Projects or programs Amount Amount spent on the
Cumulative
Sector in (1) Local area or other outlay projects or programs Amount spent:
CSR project or expenditure
Sl. which the (2) Specify the State and (Budget) Sub-heads: Direct or through
activity upto the
No. Project is district where projects Project or 1) Direct expenditure implementing
Identified reporting
covered or programs were Program on projects or pro- agency
period
undertaken wise grams 2) Overheads:
(1) (2) (3) (4) (5) (6) (7) (8)
78 Construction of integrated x Local Area, Chennur 1,50,00,000 - -
market at Chennur Municipality, Chennur As-
Municipality of Chennur sembly constituency,
Assembly Constituency. Mancherial District,
Telangana State
79 Development works such x Local Area, 2,00,00,000 - -
as laying CC/BT roads, Bellampalli Assembly,
construction of open GYM, Constituency
providing Hy-Mast Solar Mancherial District,
light and planting trees Telangana State
in Bellampalli Assembly
Constituency.
80 Certain works laying of roads x Local Area, 1,00,00,000 27,40,156 83,59,573 District
and construction of drains to Mandamarri, Collector
be carried out at Mandamarri Mancherial District, Mancherial
under CSR Telangana State
81 Infrastructure development x Local Area, 2,00,00,000 60,00,000 60,00,000 District
works in Urban Areas such Orregadda, Collector
as Development of KCR Mandamarri Mandal, Mancherial
Park at Mandamarri Town Mancherial District,
(Orregadda). Telangana State
82 Providing development x Local area, Mandamarri, 75,00,000 7,34,751 72,48,700 District
works at Mandamarri and its Mancherial District, Collector
surrounding villages under Telangana state Mancherial
CSR.
83 Laying of CC roads in x Local Area, Mancherial, 52,00,000 16,05,982 31,67,000 Distric
Mancherial. Mancherial District, Collector
Telangana State Mancherial
84 Development works such as x Local Area, Kasipet 1,07,90,000 6,66,517 63,08,000 District
laying CC roads and drains Grampanchayat, Collector
at Kasipet GP in Mancherial Mancherial District, Mancherial
District under CSR Telangana State
85 Development of greenery iv Local Area, 1,59,05,000 - -
in Mancherial Municipality Mancherial Municipality,
including raising of avenue Srirampur Area,
plantations in the approach Mancherial District,
roads/internal roads, Telangana State
beautification of medians,
traffic islands, park open
places and development of
plotted plants by SCCL under
Telangana ku Haritha Haram
programme during 2019
planting season.
86 Providing repairs to wash i Local Area, Tekumatla 3,20,000 1,88,483 1,88,483 Directly
rooms at Upper primary village of Jaipur Mandal,
school of Tekumatla (v) of Srirampur Area,
Jaipur (M), Mancherial Dist, Mancherial District,
TS. Telangana State
39
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(In Rupees)
Projects or programs Amount Amount spent on the
Cumulative
Sector in (1) Local area or other outlay projects or programs Amount spent:
CSR project or expenditure
Sl. which the (2) Specify the State and (Budget) Sub-heads: Direct or through
activity upto the
No. Project is district where projects Project or 1) Direct expenditure implementing
Identified reporting
covered or programs were Program on projects or pro- agency
period
undertaken wise grams 2) Overheads:
(1) (2) (3) (4) (5) (6) (7) (8)
87 Development of greenery in iv Local Area, 1,59,05,000 63,08,999 63,08,999 Directly
Mancherial Municipality of Mancherial Town,
Mancherial District including Mancherial District,
Avenue plantation in the Telangana State
approach roads/internal
roads, beautification of
medians, planting in open
space by SCCL under
Telangana ku Haritha Haram.
88 Laying of CC roads, con- x Local Area, 1,80,00,000 54,00,000 54,00,000 District
struction of side drains, bus villages and Collector
shelters, toilets and provid- Mancherial town of Mancherial
ing water supply arrange- Mancherial
ments, hymast lighting etc. in constituency,
villages and Mancherial town Mancherial District,
of Mancherial assembly con- Telangana State
stituency.
89 Infrastructure development i&x Local area, Mancherial, 25,00,000 2,03,592 22,88,348 District
works (Roads, drains etc.) Mancherial district, Collector
pertaining to Mancherial Telangana state Mancherial
Assembly Constituency
90 Defunct of old pipe lines i Local Area, 68,00,000 3,32,858 64,31,083 District
- replacement in various Naspur Mandal, Collector
regions of Naspur Mandal Mancherial District, Mancherial
Telangana State
91 Development works at five x Local Area, Mancherial, 1,00,00,000 12,80,550 72,10,939 District Collector
(05) villages of Mancherial Mancherial District, Mancherial
assembly constituency Telangana State
92 Development works (Roads, i&x Local Area 50,00,000 2,04,224 49,49,499 District Collector
drains etc.) in Mancherial Mancherial, Mancherial Mancherial
Assembly Constituency district, Telangana state
93 Infrastructure x Local area, Srirampur 1,38,994 1,38,994 1,38,994 District Collector
development works, roads, surrounding villages, Mancherial
drains in surrounding areas Mancherial district,
of Srirampur. Telangana State
94 Imparting Fireman Training ii Local Area, 10,53,384 3,76,300 3,76,300 Directly
Course to land losers/locals Surrounding villages of
of Singareni Thermal Power STPP,
Project through Telangana Jaipur Mandal,
State Fire Service Training Mancherial District,
Institute, Hyderabad. Telangana State
95 Construction of structures iv Local Area, 1,64,49,000 1,64,49,000 1,64,49,000 Irrigation
for artificial recharge of In and around STPP, Dept., Govt of
ground water in and around Jaipur & Mandamarri Telangana
Singareni Thermal Power Mandals,
Project - Construction of Mancherial District,
check dams in Jaipur & Telangana State
Mandamarri Mandals.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(In Rupees)
Projects or programs Amount Amount spent on the
Cumulative
Sector in (1) Local area or other outlay projects or programs Amount spent:
CSR project or expenditure
Sl. which the (2) Specify the State and (Budget) Sub-heads: Direct or through
activity upto the
No. Project is district where projects Project or 1) Direct expenditure implementing
Identified reporting
covered or programs were Program on projects or pro- agency
period
undertaken wise grams 2) Overheads:
(1) (2) (3) (4) (5) (6) (7) (8)
96 Drilling bore wells in the i Local Area, Mudigunta, 49,54,000 - - -
surrounding villages of Rasoolpalli and Tekumatla
Singareni Thermal Power villages, Near STPP,
Project under CER (CSR) Jaipur (M),
programme. Mancherial district,
Telangana State
97 Providing of central x Local Area, 50,00,000 - -
lighting and central divider Chennur Town,
on old NH road from Ginning Mancherial District,
Mill to IB from KM 205/120 to Telangana State
205/600 and central
lighting from IB to Ambedkar
Chowrastha from KM 0/0
to 0/100 in Chennur town
& Providing of central
lighting from IB to Ambedkar
Chowrastha from KM 0/100
to 0/600 in Chennur town.
98 Providing Brain Stem Evoked i Other Area, 13,00,000 12,73,125 12,73,125 Directly
Response Audiometry Koti, Hyderabad,
(BERA) apparatus to Hyderabad District,
Audiology Department, Telangana State
Govt. ENT Hospital, Koti,
Hyderabad.
99 Development of greenery iv Local Area, 1,12,83,000 45,08,548 45,08,548 Directly
including raising of Naspur Municipality,
avenue plantation in the Srirampur Area,
approach roads/internal Mancherial District,
roads, beautification of Telangana State
medians, plantation in new
Collectorate premises and
open spaces by SCCL
in Naspur Municipality of
Mancherial District under
Telangana ku Haritha Haram
during 2019 planting season.
100 Extending financial aid i Local & Other Areas, 1,00,00,000 1,00,00,000 1,00,00,000 Directly
to Chief Minister’s relief Odisha State
fund, Odisha to recover/
rebuild Odisha State from
the devastating effects
of Cyclone Fani - CSR
Activities.
101 Supply of drinking water to i Local Area, 1,41,080 1,41,080 1,41,080 Directly
project displaced families of Mangalpalli &
Mangalpalli & Peddampet Peddampet villages of
villages of Ramagundam-II Ramagundam-II,
Area for the period 1.05.2019 Peddapalli District,
to 30.06.2019. Telangana State
41
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(In Rupees)
Projects or programs Amount Amount spent on the
Cumulative
Sector in (1) Local area or other outlay projects or programs Amount spent:
CSR project or expenditure
Sl. which the (2) Specify the State and (Budget) Sub-heads: Direct or through
activity upto the
No. Project is district where projects Project or 1) Direct expenditure implementing
Identified reporting
covered or programs were Program on projects or pro- agency
period
undertaken wise grams 2) Overheads:
(1) (2) (3) (4) (5) (6) (7) (8)
102 Supply of drinking water to i Local Area, 2,08,152 20,815 20,815 Directly
project displaced families of Mangalpalli & Peddampet
Mangalpalli & Peddampet villages of Ramagundam
villages of Ramagundam-II - II Area,
Area for the period 1.01.2019 Peddapalli District,
to 31.03.2020. Telangana State
103 Supply of drinking water to i Local Area, 4,44,058 4,44,058 4,44,058 Directly
project displaced families Mangalpalli & Peddampet
of Mangalpalli & Peddampet villages of Ramagundam
villages of Ramagundam-II - II Area,
Area for the period 1.07.2019 Peddapalli District,
to 31.01.2020. Telangana State
104 Providing infrastructure for x Local Area, Yellandu 20,00,000 - -
the public/visitors at Hon’ble Constituency,
MLA camp office, Yellandu Bhadradri Kothagudem
Constituency. District,
Telangana State
105 Providing washrooms for i Local Area, Manuguru, 5,00,000 - -
the public/visitors at Hon’ble Bhadradri Kothagudem
MLA camp office, Pinapaka District,
Constituency. Telangana State
106 Construction of swimming vii, x Local Area, 1,50,00,000 - -
pool for sports persons Bhupalpalli,
behind Bus depot of Jayashankar Bhupalpalli
Bhupalpally town and District,
construction of public review Telangana State
meeting hall over MLA camp
office building at Bhupalpally.
107 Construction of CC roads x Local Area, 21,33,900 6,40,170 6,40,170 District Collector
and supply of furniture Mancherial, Mancherial
for public meeting hall Mancherial District,
in Hon’ble MLA Camp Telangana State
Office in Mancherial.
108 Singareni Seva Samithi ii Local Area, 3,75,00,000 2,04,56,638 2,04,56,638 Directly
Activities - empowering Coal belt areas/
women through vocational Districts,
training such as tailoring, Telangana State
embroidery, fashion
designing, beautician
courses etc. for unemployed
youth police/army training
coaching camps, driving etc.
Total 82,95,04,668 20,75,56,383 33,87,71,080
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
6. In case the company has failed to spend the two percent of the average net profit of the last three
financial years or any part thereof, the Company shall provide the reasons for not spending the
amount in its Board report.
The Board has accorded approval for earmarking Rs.40 crore towards CSR budget for 2019-20 which is
equivalent of 2.29% of average profits of the preceding 3 years. Out of this CSR budget of Rs.40 crore, CSR
proposals were sanctioned for an amount of Rs.39.20 crore, the actual amount spent during FY 2019-20
was Rs.20.75 crore. The prescribed amount of CSR expenditure i.e., 2% average net profits of preceding
3 years amounts to Rs.34.86 crore. The CSR activities / programmes sanctioned are at various stages of
implementation. The amount spent during 2019-20 is less than the prescribed amount. However, the amount
sanctioned for various proposals during 2019-20 is more than the prescribed amount.
7. A responsibility statement of the CSR Committee that the implementation and monitoring of
CSR Policy, is in compliance with CSR objectives and Policy of the Company.
We hereby declare that implementation and monitoring of CSR policy is in compliance with CSR
objectives and policy of the Company except that some CSR activities were taken-up in Odisha State where
SCCL is having Naini and New Patra Pada coal blocks.
Sd/-
Date : 3.10.2020 (N. Sridhar)
Place : Hyderabad Chairman & Managing Director
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Director (Operations & P&AW) Inaugurating Mine Control Centre (MCC) RGOC-2, RG-3 Area
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Annexure-II
Form No: AOC-2
[Pursuant to Clause (h) of sub-section (3) of Section 134 of the Act
and Rule 8(2) of the Companies (Accounts) Rules, 2014]
Form for disclosure of particulars of contracts/ arrangements entered into by the Company with related
parties referred to in sub-Section (1) of Section 188 of the Companies Act, 2013 including certain arms
length transactions under third proviso thereto.
1. Name of the related party and nature of relationship:
Andhra Pradesh Heavy Machinery & Engineering Limited - Subsidiary Company.
2. Details of contracts, value, duration of the contract from 1.4.2019 to 31.3.2020 at arm’s length basis:
Sl. Nature & duration Net Value Manner of
Description of contract/ order
No. of contract (Rs.) determination of price
1. Orders / contracts placed for purchase Each order / 55,94,28,629.16 Orders against open
of various equipment, spares, services contract has tenders on L1 basis
at different dates during 2019-20 separate period
2. Orders / contracts placed for purchase Each order / 6,78,52,364.48 Orders on proprietary
of various equipment, spares, services contract has basis
at different dates during 2019-20 separate period
Total 62,72,80,993.64
3. Details of contracts, value, duration of the contract from 1.4.2019 to 31.3.2020 not at arm’s length
basis:
1. Orders / contracts placed for purchase Each order / 8,08,13,142.00 Orders on nomination
of various equipment, spares, services contract has basis
at different dates during 2019-20 separate period
46
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Annexure-III
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31-3-2020
FORM NO. MR .3
(Pursuant to Section 204 (1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014)
To
The Members,
The Singareni Collieries Company Limited,
Kothagudem Collieries.
I have conducted Secretarial Audit pursuant to Section 204 of the Companies Act 2013, on the compliance of
applicable Statutory Provisions and the adherence to good corporate practices by The Singareni Collieries Company
Limited., (hereinafter called as “the Company”). Secretarial Audit was conducted in a manner that provided us a
reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.
1. Based on our verification of the books, papers, minutes books, forms, returns filed and other records
maintained by the Company and also the information and according to the examinations carried out by
me and explanations furnished and representations made to me 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, 2020 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.
2. I have examined the books, papers, minute books, forms and returns filed and other records maintained by
the Company for the financial year ended on 31st March, 2020 (“Audit Period”) according to the provisions of:
i. The Companies Act, 2013 (the Act) and the rules made thereunder;
ii. The Depositories Act, 1996 and regulations made thereunder ;
iii. 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 during the audit period.
iv. The Securities Contracts (Regulation) Act, 1956 and rules made there under: Not applicable being the
unlisted Company.
v. The Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act,
1992 (‘SEBI Act’): Not applicable being the unlisted Company.
47
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
vi. The Company is into the business of mining and sale of coal, power generation and sale. Accordingly,
the following major industry specific Acts and Rules are applicable to the Company, in view of the
Management:
a. Mines Act, 1952 and Rules & regulations made thereunder.
b. Coal Mines Provident Fund & Miscellaneous Provisions Act, 1948.
c. The Environment (Protection) Act, 1986.
d. The Forest (Conservation) Act, 1980.
e. Mines and Minerals (Development & Regulation) Act, 1957 and Rules & Regulations made
thereunder.
f. Cess and other Taxes on Minerals (Validation) Act, 1992.
g. The Coal Mines (Nationalization) Act, 1973.
h. Coal Mines Pension Scheme, 1998.
i. Land Acquisition Act, 1894.
j. The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013.
k. Essential Services Maintenance Act, 1971
l. Mines and Minerals Act 1957 and Rules & regulations made thereunder.
m. Explosive Substance Act, 1908 and Rules & regulations made thereunder.
n. The Coal Bearing Areas Act, 1957.
o. National Minerals Policy, 1993.
p. Coal Mines Conservation and Development Act, 1974 and Rules & regulations made thereunder.
q. The Explosives Act, 1884 and Rules and notifications made thereunder.
r. The Electricity Act, 2003 and Rules & regulations made thereunder.
vii. I have also examined compliance with Secretarial Standards issued by the Institute of Company
Secretaries of India in respect of Board and General Meeting(s) of the Company of India.
viii. During the period under review, the Company has complied with the provisions of the applicable Acts,
Rules, Regulations, and Guidelines etc. as mentioned above except to the extent as mentioned below:
a. The Company has not appointed requisite number of Independent Directors as prescribed
under the provisions of Sub-section (4) of Section 149 of the Companies Act, 2013.
In this regard the management informed that vide Notification No.GSR 163 (E) dt.5th June,
2015 of Ministry of Corporate Affairs, Govt. of India, the responsibility for appointment of
Independent Directors on the Board of Govt. Companies was shifted from Board of Directors of
the Company to Ministry or Department of the Central / State Government, as the case may be.
b. The Company has Audit Committee without Independent directors as prescribed under the
provisions of Section 177 of the Companies Act, 2013.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Sd/-
(K.V. Chalama Reddy)
Practising Company Secretary
Place : Hyderabad M.No : F 9268, C.P. No.: 5451.
Date : 02.11.2020 UDIN number : F009268B001140233
This report is to be read with my letter of even date which is given as Annexure ‘A’ and forms an integral part of
this report.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
*****
Drirector (P&P) Sri B.Bhaskar Rao, Director (Finance) Sri N.Balaram visiting
Singareni supermarket RG-1
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Annexure-A’
To,
The Members,
The Singareni Collieries Company Limited.,
Kothagudem Collieries.
Sd/-
(K.V.Chalama Reddy)
Practising Company secretary
Place : Hyderabad, M.No: F9268, C.P.No.5451
Date : 02.11.2020 UDIN number : F009268B001140233
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Annexure-IV
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
c) Bodies Corpo-
rates
d) Bank/FI
e) Any other / IEPF 12613 12613 0.0007
Authorities
Sub Total:(A)(1) 1733196399 1733196399 99.9999 1733198119 1733198119 100.00
(2) Foreign
a) NRI- Individuals
b) Other Individuals 1720 1720 0.0001
c) Bodies Corp.
d) Banks/FI
e) Any other…
Sub Total (A) (2) 1720 1720 0.0001
Total Sharehold- 1733198119 1733198119 100.00
ing of Promoter
(A)= (A)(1)+(A)(2)
B. Public Share-
holding
(1) Institutions
a) Mutual Funds
b) Banks/FI
c) Central govt.
d) State Govt.
e) Venture Capital
Fund
f) Insurance Com-
panies
g) FIIS
h) Foreign Venture
Capital Funds
i) Others (specify)
Sub Total (B)(1):
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters &
Holders of GDRs & ADRs)
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Indebtedness of the Company including interest outstanding/accrued but not due for payment
Secured Total
Unsecured
Loans exclud- Deposits Indebted-
Loans
ing deposits ness
Indebtness at the beginning of the financial year
i) Principal Amount 4294.66 -- -- 4294.66
ii) Interest due but not paid
iii) Interest accrued but not due 80.14 -- -- 80.14
Total (i+ii+iii) 4374.80 -- -- 4374.80
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
To
The Chairman & Managing Director,
The Singareni Collieries Company Limited,
Kothagudem (PO). Bhadradri Kothagudem District
Telangana -507 101
Sub: Comments of the Comptroller and Auditor General of India under Section 143 (6)(b) of the
Companies Act, 2013 on the Standalone Financial Statements and Consolidated Financial
Statements of The Singareni Collieries Company Limited for the year 2019-20.
Sir
1. I am to forward herewith ‘NIL’ comments of the Comptroller and Auditor General of India under Section 143 (6)
(b) of the Companies Act, 2013 on Standalone Financial Statements and Consolidated Financial Statements
of your Company for the year ended 31 March 2020 for necessary action.
2. The date of placing of ‘NIL’ comments along with financial statements and Auditor’s Report before the
shareholders of the Company may please be intimated and a copy of the proceedings of the meeting furnished.
3. The date of forwarding the annual report for the year 2019-20 and financial statements of the Company
together with the Auditors Report and ‘NIL’ comments of the Comptroller and Auditor General of India to the
State Government for being placed before the Legislature may also be intimated.
4. Ten copies of the annual report for the year 2019-20 may be furnished in due course.
5. The receipt of this letter along with enclosures may please be acknowledged.
Encl: As Above
Yours faithfully,
Sd/-
(Rohit M Gute)
Deputy Accountant General/AMG-II
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Annexure l
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b)
OF THE COMPANIES ACT. 2013 ON THE FINANCIAL STATEMENTS OF THE SINGARENI COLLIERIES
COMPANY LIMITED FOR THE YEAR ENDED 31 MARCH 2020.
The preparation of financial statements of The Singareni Collieries Company Limited for the year ended 31
March 2020 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 (Act)
is the responsibility of the management of the Company. The statutory auditors appointed by the Comptroller and
Auditor General of India under section 139(5) of the Act are responsible for expressing opinion on the financial
statements under section 143 of the Act based on independent audit in accordance with the standards on auditing
prescribed under section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated
03-10-2020.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the
financial statements of The Singareni Collieries Company Limited for the year ended 31 March 2020 under section
143(6)(a) of the Act. This supplementary audit has been carried out independently without access to the working
papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and company personnel
and a selective examination of some of the accounting records.
On the basis of my supplementary audit nothing significant has come to my knowledge which would give
rise to any comment upon or supplement to statutory auditors’ report under section 143 (6)(b) of the Act.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Annexure V
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) READ
WITH SECTION 129(4) OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED FINANCIAL STATEMENTS
OF THE SINGARENI COLLIERIES COMPANY LIMITED FOR THE YEAR ENDED 31 MARCH 2020.
The preparation of consolidated financial statements of The Singareni Collieries Company Limited for the
year ended 31 March 2020 in accordance with the financial reporting framework prescribed under the Companies
Act, 2013 (Act) is the responsibility of the management of the Company The statutory auditors appointed by the
Comptroller and Auditor General of India under section 139(5) read with section 129(4) of the Act are responsible
for expressing opinion on the financial statements under section 143 read with section 129(4) of the Act based on
independent audit in accordance with the standards on auditing prescribed under section 143(10) of the Act. This
is stated to have been done by them vide their Audit Report dated 03-10-2020.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the
consolidated financial statements of The Singareni Collieries Company Limited for the year ended 31 March 2020
under section 143(6)(a) read with section 129(4) of the Act. We have not conducted a supplementary audit of the
financial statements of Andhra Pradesh Heavy Machinery and Engineering Limited, (Subsidiary) and APMDC-
SCCL Suliyari Coal Company Limited a Joint Venture for the year 2019-20. This supplementary audit has been
carried out independently without access to the working papers of the statutory auditors and is limited primarily to
inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting
records.
On the basis of my supplementary audit nothing significant has come to my knowledge which would give
rise to any comment upon or supplement to statutory auditors’ report under section 143 (6)(b) of the Act.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Sd/- Sd/-
(CA Surendranath Bharathi) (N. Sridhar)
Partner Chairman & Managing
Membership No. 023837 Director
UDIN:20023837AAAABL4223
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Mines and
Minerals
(Development DMF 44,65,18,845 May-19 30-06-2019 24-04-2020 -
and Regula-
tion) Act,1957
Mines and
Minerals
(Development DMF 38,69,86,355 Aug-19 30-09-2019 24-04-2020 -
and Regula-
tion) Act,1957
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
xi. Payment or provision for managerial remuneration in accordance with the requisite ap- This being a statement of
provals mandated by the provisions of section 197 read with Schedule V to the Act is not fact calls for no comments
applicable in case of government company vide notification GSR 463(E) dated June 05, separately.
2015.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating effective-
ness. Our audit of internal financial controls over financial reporting included obtaining an
understanding of internal financial controls over financial reporting, assessing the risk that
a material weakness exists, and testing and evaluating the design and operating effective-
ness of internal control based on the assessed risk.
The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or
error.
We believe that the audit evidence we have obtained is sufficient and appropriate to pro-
vide a basis for our audit opinion on the Company’s internal financial controls system over
financial reporting.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
ANNEXURE ‘B’ TO THE INDEPENDENT AUDITOR’S REPORT Management reply on the au-
dit observations (Contd...)
(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Require-
ments’ section of our report to the Members of The Singareni Collieries Company (under section 134(3) of the
Limited of even date) (contd...) Companies Act, 2013)
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Sd/-
(CA, Surendranath Bharathi)
Partner
(Membership No. 023837)
Date: 03-10-2020 UDIN: 20023837AAAABL4223
Place: Hyderabad
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Opinion --
We have audited the accompanying consolidated Ind As financial state-
ments of The Singareni Collieries Company Limited (hereinafter referred
to as the ‘Holding Company”) and its subsidiaries (Holding Company and
its subsidiaries together referred to as “the Group”), which comprise the
consolidated Balance Sheet as at March 31, 2020, and the consolidated
statement of Profit and Loss (including other comprehensive income), the
consolidated statement of changes in equity and the consolidated cash
flows Statement for the year then ended, and notes to the consolidated fi-
nancial statements, including a summary of significant accounting policies
(hereinafter referred to as “the consolidated Ind As financial statements”).
In our opinion and to the best of our information and according to the ex- --
planations given to us, the aforesaid consolidated Ind AS financial state-
ments give the information required by the Act in the manner so required
and give a true and fair view in conformity with the Ind AS prescribed
under section 133 of the Act, read with the Companies ( Indian Account-
ing Standards) Rules, 2015, as amended (“Ind AS”) and other accounting
principles generally accepted in India, of the consolidated state of affairs
of the Group as at March 31, 2020, of consolidated profit, consolidated
total comprehensive income, consolidated statement of changes in equity
and its consolidated cash flows for the year then ended.
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89
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
91
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(Referred to in paragraph 1(g) under ‘Report on Other Legal and (under section 134(3) of the Companies
Regulatory Requirements’ section of our report to the Members of Act, 2013)
The Singareni Collieries Company Limited of even date) (contd...)
Report on the Internal Financial Controls Over Financial Reporting
under Clause (i) of Sub-section 3 of Section 143 of the Companies --
Act, 2013 (“the Act”)
In conjunction with our audit of the consolidated financial statements of
the Company as of and for the year ended March 31, 2020, we have au-
dited the internal financial controls over financial reporting of The Singar-
eni Collieries Company Limited (hereinafter referred as (“the Holding --
Company”), and considered reports of auditors of its subsidiary compa-
nies and joint ventures, which are companies incorporated in India, as of
that date.
Management’s Responsibility for Internal Financial Controls
The respective Board of Directors of the Holding Company, its subsidiary
companies and its joint ventures, which are companies incorporated in
India, are responsible for establishing and maintaining internal financial
controls based on the essential components of internal control stated in
the Guidance Note on Audit of Internal Financial Controls Over Finan-
cial Reporting issued by the Institute of Chartered Accountants of India This being a statement of fact calls for no
(ICAI).These responsibilities include the design, implementation and comment separately.
maintenance of adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of its business,
including adherence to the respective Company’s policies, the safeguard-
ing of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Com-
panies Act, 2013.
Auditor’s Responsibility
Our responsibility is to express an opinion on the internal financial controls
over financial reporting of the Company based on our audit. We conduct-
ed our audit in accordance with the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting (the “Guidance Note”) issued This being a statement of fact calls for no
by the Institute of Chartered Accountants of India and the Standards on comment separately.
Auditing prescribed under Section 143(10) of the Companies Act, 2013,
to the extent applicable to an audit of internal financial controls. Those
Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assur-
ance about whether adequate internal financial
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(Referred to in paragraph 1(g) under ‘Report on Other Legal and (under section 134(3) of the Companies
Regulatory Requirements’ section of our report to the Members of Act, 2013)
The Singareni Collieries Company Limited of even date) (contd...)
controls over financial reporting was established and maintained and if
such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about
the adequacy of the internal financial controls system over financial re-
porting and their operating effectiveness. Our audit of internal financial
controls over financial reporting included obtaining an understanding of
internal financial controls over financial reporting, assessing the risk that
a material weakness exists, and testing and evaluating the design and
operating effectiveness of internal control based on the assessed risk. This being a statement of fact calls for no
comment separately
The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial state-
ments, whether due to fraud or error.
We believe that the audit evidence we have obtained and the audit evi-
dence obtained by the other auditors in terms of their reports referred to
in the “Other Matters” paragraph below, is sufficient and appropriate to
provide a basis for our audit opinion on the Company’s internal financial
controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company’s internal financial control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of fi-
nancial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles. This being a statement of fact calls for no
A company’s internal financial control over financial reporting includes comment separately
those policies and procedures that
(1) Pertain to the maintenance of records that, in reasonable detail, accu-
rately and fairly reflect the transactions and dispositions of the assets
of the company;
(2) Provide reasonable assurance that transactions are recorded as nec-
essary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and This being a statement of fact calls for no
expenditures of the company are being made only in accordance comment separately
with authorisations of management and directors of the company;
and
(3) Provide reasonable assurance regarding prevention or timely detec-
This being a statement of fact calls for no
tion of unauthorised acquisition, use, or disposition of the company’s
comment separately
assets that could have a material effect on the financial statements.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(Referred to in paragraph 1(g) under ‘Report on Other Legal and (under section 134(3) of the Companies
Regulatory Requirements’ section of our report to the Members of Act, 2013)
The Singareni Collieries Company Limited of even date) (contd...)
Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over finan-
cial reporting, including the possibility of collusion or improper manage-
ment override of controls, material misstatements due to error or fraud This being a statement of fact calls for no
may occur and not be detected. Also, projections of any evaluation of comment separately
the internal financial controls over financial reporting to future periods are
subject to the risk that the internal financial control over financial reporting
may become inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may deteriorate.
Disclaimer of Opinion
According to information and explanations given to us, the company is in
the process of establishing Internal Financial Control over financial report-
ing framework on criteria based on or considering the essential compo-
nents of Internal Financial Control stated in the Guidance Note on Audit
of Internal Financial Controls over Financial Reporting issued by Institute This being a statement of fact calls for no
of Chartered Accountants of India. However, we are unable to obtain au- comment separately
dit evidence in supporting the implementation of the Internal Financial
Control over financial reporting. Because of this reason, we are unable
to obtain sufficient and appropriate audit evidence to provide a basis for
our opinion whether the company had adequate internal financial controls
over financial reporting and whether such internal financial control were
operating effectively as at 31st March, 2020.
Sd/- Sd/-
(CA Surendranath Bharathi) (N. Sridhar)
Partner Chairman & Managing Director
Membership No. 023837
UDIN:20023837AAAABM7069
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
95
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Date : 03-10-2020
Place : Hyderabad
96
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Statement of Profit & Loss (Standalone) for the year ended 31st March 2020
(Rs in Crore)
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Statement of Profit & Loss (Standalone) for the year ended 31st March 2020
(Rs. in Crore)
Less: Income tax relating to items that will not be 6.17 8.97
reclassified to Profit or Loss
(XV) Total Comprehensive Income for the Period (XIII+XIV) 993.86 1822.91
Date : 03-10-2020
Place : Hyderabad
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Statement of Changes In Equity for the Period Ended 31st March 2020 (Standalone)
B. OTHER EQUITY:
Fly Ash Utilization General Re- Retained
Particulars Total
Reserve serve Earnings
Balance at the Beginning of the Reporting - 1,460.40 2,769.74 4,230.14
Period as at 31.03.2018
Adjustments for Prior Period Errors 3.73 3.73
(net of Deferred Tax)
Adjustments for Changes in Accounting Polices (23.16) (23.16)
(net of Deferred Tax)
Restated Balance as on 01.04.2018 - 1,460.40 2,750.31 4,210.71
Profit for the Year 2018-19 (Restated) 1839.62 1839.62
Other Comprehensive Income (net of tax) (16.71) (16.71)
Dividends-2017-18 (208.95) (208.95)
(including dividend distribution tax)
Transfer to/(from) retained earnings 100.00 (100.00) -
Restated Balance as on 31.03.2019 - 1,560.40 4264.27 5824.67
Profit for the Year 2019-20 3.84 1012.21 1016.05
Other Comprehensive Income (net of tax) (18.35) (18.35)
Dividends-2018-19 (208.95) (208.95)
(including dividend distribution tax)
Transfer to/(from) retained earnings 100.00 (100.00) -
Balance as on 31.03.2020 3.84 1660.40 4949.18 6613.42
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
100
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Cash and Cash Equivalents for the purpose of the Cash-Flow Statement
(Rs in Crore)
Particulars 2019-20 2018-19
Cash & Bank Balances at the Beginning of the year 730.63 371.58
Special OD Account
Overdraft in Current Account (3.76) (6.09)
Cash & Bank Balances at the Beginning of the year 726.87 365.49
Cash & Bank Balances at the End of the year 1101.67 730.63
Special OD Account
Overdraft in Current Account (3.64) (3.76)
Cash & Bank Balances at the End of the year 1098.03 726.87
Date : 03-10-2020
Place : Hyderabad
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020
B) Basis of Measurement:
The financial statements have been prepared on historical cost basis of measurement, except for
ã financial assets and liabilities measured at fair value (Accounting Policy on financial instruments in para
No.2.2.16);
ã Defined benefit plans- plan assets measured at fair value;
ã Inventories at Cost or NRV whichever is lower (Accounting Policy in para No. 2.2.5).
ã Other claims and revenues (Accounting policy No.2.2.1.E)
ã Certain Provisions are measured at fair value ( Accounting Policy No.2.2.7)
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
In the absence of an Ind AS that specifically applies to a transaction, other event or condition, management
has used its judgement in developing and applying an accounting policy that results in information that is:
F) Materiality
Management uses judgement of materiality for determining the compliance requirement of the Ind AS.
Management also uses judgment in deciding whether individual items or groups of item are material in the
financial statements. Materiality is judged by reference to the size and nature of the item. The deciding factor
is whether omission or misstatement could individually or collectively influence the economic decisions that
users make on the basis of the financial statements. A Transaction is considered material only if it exceeds
Rs.50.00 lakh in each case for the purpose of adjustments for Pre-paid and Prior period items.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
The Company exercises judgement, taking into consideration all of the relevant facts and circumstances
when applying each step of the model to contracts with their customers. Further, the Company has adopted
Ind AS 115 using the modified retrospective transition method of adoption.
Sales are recognised when control of the products has been transferred to the customer, being when the
products are delivered to the customer and there is no unfulfilled obligation that could affect the customer’s
acceptance of the products.
Emphasis is also given towards ascertaining the probability of recovery for recognition of the revenue at the
inception of the contract. Revenue from these sales is recognised based on the notified prices, net of the
estimated discounts, rebates, returns and Goods and Service tax.
Revenue is measured at the standalone fair value of the consideration received or receivable (net of accepted
deductions allowed to customers on account of quality of coal) taking into account contractually defined
terms of payment.
The company’s obligation to provide a refund for defects in the products is recognised as a provision. A
receivable is recognised when the goods are delivered as this is the point in time that the consideration is
unconditional because only the passage of time is required before the payment is due.
B. Sale of Electricity
Revenue from generation of electricity is accounted for as per the tariff approved by the Hon. Telangana
State Electricity Regulatory Commission (TSERC). Revenue from sale of Electricity is recognized over time.
C. Rendering of services:
When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue
associated with the transaction is recognised with reference to the stage of completion of the transaction at
the end of the reporting period.
a. Penalty for short lifting of coal, on termination of contracts, interest on belated payment of coal dues on
realisation.
b. The interest/ Late Payment Surcharge on late payment/ overdue sundry debtors for sale of power is
recognised when no significant uncertainty as to measurability or collectability exists.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
c. Escalation in prices and duties for explosives, equipment and spares supplied on payment.
d. Credit towards Powder factor is accounted as and when recovered from the suppliers of Explosives.
e. Additional claims from contractors on Capital Works when claims are settled, other than subsidiary.
f. Scrap sales are accounted for as and when lifted; and
g. Insurance Claims on receipt.
h. Bonus accrued in respect of OBR contracts on receipt of claims from the contractors as per order terms
for encashment.
i. Fly Ash Utilization Reserve Fund :
Proceeds from sale of Fly ash along-with income on investment of such proceeds are transferred to
‘Fly Ash Utilization Reserve Fund’ in pursuance of directives from Ministry of Environment and Forests,
Government of India. The fund is utilized towards expenditure on development of infrastructure /
facilities, promotion & facilitation activities for use of fly ash.
Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses,
if any. Cost includes expenditures directly attributable to the acquisition of the asset and the initial estimate
of the costs of dismantling and removing the item and restoring the site on which it is located. The Company
has elected to apply the optional exemption to use this previous GAAP value as deemed cost as at 1 April
2015, the date of transition.
The recognition of the Property, plant and equipment is subject to the following principles:
1. Land:
a. Lands are capitalized from the date of taking possession / Award whichever is earlier. Payments
made for Renewal of Leasehold lands are capitalized from the date of payment.
b. Freehold Lands (Patta lands, lands acquired under Land Acquisition Act, 1894, Right to Fair
Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act, 2013
and Govt. Assigned lands) include cost of acquisition, Compensation, rehabilitation expenses,
resettlement cost and interest upto the date of taking possession.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
c. Leasehold Lands (Forest lands) include cost of compensatory land, NPV, afforestation and
deforestation expenditure with regard to acquisition of forest land.
2. Railway sidings:
Complete track renewals and sleeper renewals on Railway Sidings are capitalised on completion of the
work.
3. Plant & Equipment:
a. Following items are classified as Capital;
i) PVC Armoured Cables of all sizes; and
ii) G.I. Pipes of 2” Dia and above.
b. Expenditure on Rehabilitation of HEMM and other Major Plant and Machinery is treated as Capital
expenditure if such expenditure increases the future benefit from the Asset beyond its previously
assessed standard of performance.
c. Equipment received for Projects under construction/ Mines under development but not installed
and commissioned by the end of the year is shown as Capital Works-in-Progress.
B. Depreciation:
i) Depreciation on other Fixed Assets is provided on written down value method on the assets capitalised
before 01.04.1985.
ii) Depreciation on property, plant and equipment, except freehold land, is provided as per cost model on
straight line basis over the estimated useful lives of the asset as follows as per the Schedule II of the
Companies Act,2013 .However, in case of power plant depreciation rates as stipulated by CERC are
adopted. The estimated useful life of the assets is reviewed at the end of each financial year.
iii) In some cases based on technical evaluation, the management believes that the useful lives given
below best represents the period over which the management expects to use the asset. Hence the
useful lives of the below mentioned assets are lower than the useful lives prescribed under Part C of
schedule II of companies act, 2013:
LHDs 7 Years
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
iv) Value of leasehold lands is amortised over a period of 10 years or over the lease period whichever is lower:
- from the date possession in case of fresh leases
- from the date of payment in case of renewal of leases.
v) Freehold Lands used for UG/OC mining Operations are amortized over the Life of the respective Mine/
Project.
C) When parts of an item of property, plant and equipment, with a cost that is significant in relation to the total
cost of the item, have different useful lives, they are accounted for as separate items (major components) of
property, plant and equipment. Subsequent expenditure relating to property, plant and equipment is capitalized
only when it is probable that future economic benefits associated with these will flow to the Company and the
cost of the item can be measured reliably. Repairs and maintenance costs are recognized in the statement
of profit and loss when incurred. The cost and related accumulated depreciation are eliminated from the
financial statements upon sale or disposition of the asset and the resultant gains or losses are recognized in
the statement of profit and loss.
Cost of ERP software recognized as intangible asset is amortised over a period of 5 years.
2.2.5 Inventory:
A Stock of Coal:
i) Wherever variation between volumetrically measured coal stocks (including washery products) and the
book stocks is more than 5%, the volumetrically measured stock balances are adopted with a reduction
of 5% towards anticipated storage losses.
ii) Closing stock of coal including stock at washeries, coal-in-wagons, washed coal, is valued at lower of
cost and net realisable value.
Closing stock of washery by products viz., rejects, slurry and fines are valued at net realisable value
(shale and stone at nil value)
Coal stock at STPP is valued at weighted Average Acquisition Cost as reduced by the unearned
profit elements viz. Land Adjustment, Fuel Surcharge Adjustment, Preweigh bin charges and Surface
Transport Charges.
iii) The cost of production of respective Under Ground (UG) and Open Cast (OC) mines is considered
as cost of coal for the stocks of respective UG and OC mines. The cost of stock at CHP and other
stocking points is arrived by considering the ratio of admittance of coal from UG and OC mines during
the year. Such cost of production is arrived at excluding borrowing costs, selling and distribution costs
and administrative overheads etc., to the extent not related to production of coal.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
iv) Cost of washed coal is calculated at average cost of production of coal as at (iii) above plus washery
charges adjusted to standard yield, and by deducting NRV of by products from the cost thus arrived.
v) The net realisable value of grade-wise coal (including washed coal, rejects, slurry and fines) is arrived
at on the basis of selling price to power utilities and mark up/ cost plus price wherever applicable less
re-handling charges.
i) Stores & Spares (including loose tools) are valued at Weighted Average cost.
ii) Suitable Provision for slow, non-moving and obsolescence is provided on review of stores and spares
on annual basis.
C. Other Inventories
Stock of medicines, provisions, stationery and sand are not valued and are charged directly to consumption
on receipt.
i) The company’s obligation for land reclamation and decommissioning of structures consists of spending
at both surface and underground mines in accordance with the guidelines from Ministry of Coal,
Government of India.
ii) The company estimates its obligation for Mine Closure, Site Restoration and Decommissioning based
upon detailed calculation and technical assessment of the amount and timing of the future cash
spending to perform the required work. Mine Closure expenditure is provided as per approved Mine
Closure Plan.
iii) The estimates of expenses are escalated for inflation, and then discounted at a discount rate that
reflects the current market assessment of the time value of money and the risks, such that the amount of
provision reflects the present value of the expenditures expected to be required to settle the obligation.
The company records a corresponding asset associated with the liability for final reclamation and mine
closure. The obligation and corresponding assets are recognised in the period in which the liability is
incurred. The asset representing the total site restoration cost as per mine closure plan is recognised
as a separate item in PPE and amortised over the balance project/mine life.
iv) The value of the provision is progressively increased over time as the effect of discounting unwinds;
creating an expense recognised as financial expenses.
v) Further, a specific escrow fund account is maintained for this purpose as per the approved mine
closure plan.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
B. Backfilling of Overburden:
i) In order to comply with the Ministry of Environment & Forest’s stipulation regarding reducing the depth
of the final void of certain opencast mines to 30/35/45 meters from surface, re-handling/dumping over
burden (OB) is to be carried out to reduce the final void as per the MOEF stipulation. The reduction of
the final void can be done either (i) by re-handling the Overburden of the external/ internal dumps or
(ii) by dumping the OB produced from the adjacent/relay projects.
ii) Re-handling of Overburden of the external/internal dumps incurs additional cost which is provided for.
The cost of dumping from the adjacent / relay project is considered as the cost of Overburden removal
of the adjacent/relay project.
iii) The estimation of quantity of Overburden (OB) required to backfill the final void is made by in-house
technical estimation by professionals in Mining, Project Planning Environment fields. Total cost of
Backfilling required is estimated, based on the total quantity to be backfilled in cubic metres at the end
of mine life, at the SCCL weighted average rate of OB Removal of outsourced operations.
iv) The Estimation of Liability and corresponding recognition of Asset, discounting of liability and
depreciation of asset and unwinding of liability etc, shall be as per the procedure mentioned at
accounting policy no 2.2.7.A.(iii) and (iv).
Evaluation expenditure relates to a detailed assessment of deposits or other projects that have been
identified as having economic potential. Capitalisation of evaluation expenditure commences when there is
a high degree of confidence that the Company will determine that a project is commercially viable, that is the
project will provide a satisfactory return relative to its perceived risks, and therefore it is considered probable
that future economic benefits will flow to the Company.
OR
ii) from the beginning of the year, wherein the value of production at the monthly selling price of the Mine
is more than the total related expenses of such developed project/ mine.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
C) Expenditure incurred on Projects under Construction/Mines under Development is capitalised till such
Projects/Mines are brought to revenue. In case of Long wall / Blasting Gallery (BG) technology Projects, the
expenditure is capitalised up to the date of commissioning of the equipment.
D) Overheads specifically incurred for the projects under construction were capitalised.
E) Sale value of coal produced by Projects/Mines under construction is credited to Development Account at the
Monthly Selling Price for the Mine.
F) Residual Development Expenditure on Mines taken-up for reconstruction is treated as Development
Expenditure of New Reconstruction Projects.
G) On being brought to revenue, the assets under capital work in progress are reclassified as a component
of property, plant and equipment under the nomenclature “Other Mining Infrastructure”. Other Mining
Infrastructure are amortised over the Projects Life as estimated in the FR/latest life, not exceeding 10 years.
ii) The company reviews the Stripping Ratios of all the operating Open Cast Projects with revenue workings
once in three years. In case significant deviation occurs in mining & geological structure, reorganisation and
closure of mines, such review is taken up on occurrence.
iii) Provision for future Overburden Removal is restated at current year cost and difference is taken to profit and
loss account. Advance Action for Overburden removal is valued at weighted average cost.
b) Profit or Loss on account of exchange differences either on settlement or on restatement is recognised in the
Profit and Loss Account.
Current income tax for the current and prior periods are measured at the amount expected to be recovered
from or paid to the taxation authorities based on the taxable income for the period. The tax rates and tax laws
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
used to compute the current tax amount are those that are enacted or substantively enacted by the reporting
date and applicable for the period.
The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to
set off the recognized amounts and where it intends either to settle on a net basis or to realize the asset and
liability simultaneously.
Deferred income tax is recognized using the balance sheet approach. Deferred income tax assets and
liabilities are recognized for deductible and taxable temporary differences arising between the tax base of
assets and liabilities and their carrying amount in financial statements.
Deferred income tax asset are recognized to the extent that it is probable that taxable profit will be available
against which the deductible temporary differences, and the carry forward of unused tax credits and unused
tax losses can be utilized.
Deferred income tax liabilities are recognized for all taxable temporary differences. The carrying amount of
deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to
be utilized.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the
period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date.
All short term employee benefits are recognized in the period in which they are incurred.
Employer’s contribution under Coal Mines Provident Fund Act and Executives Superannuation, Pension
Benefits are defined Contribution Plans and the expenditure/ provision on the above is charged to
statement of Profit & Loss.
a) Gratuity: Gratuity is a defined benefit scheme. The cost of providing benefits is determined using
the projected unit credit method, with actuarial valuations being carried out at each balance sheet
date. The retirement benefit obligations recognised in the Balance Sheet represents the present
value of the defined benefit obligations as reduced by the fair value of scheme assets.
b) Leave encashment (Vesting) and Post Superannuation Medical Benefit to executives and non-
executives are provided based on actuarial valuation carried out at each balance sheet date.
c) Re-measurement of the net defined benefit liability, which comprise actuarial gain and losses
considering the return on plan assets (excluding interest) and the effects of the assets ceiling (if
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
any, excluding interest) are recognised immediately in the other comprehensive income in case
of post-employment defined benefit plans. Net interest expense and other expenses related to
defined benefit plans are recognised in profit and loss.
d) When the benefits of the plan are improved, the portion of the increased benefit relating to past
service by employees is recognised as expense immediately in the statement of profit and loss.
e) Other employee benefits :
Certain employee benefits namely and Settling Allowance, LTC / LLTC , non-vesting Leave
entitlements and Monthly Monetary Compensation to dependants of deceased in mine accidents/
medical unfit/ Low Productive Employees are also recognised on the same basis as described
above for defined benefit plans.
f) Voluntary retirement compensation is expensed in the year of incurrence.
Where the time value of money is material, provisions are stated at the present value of the expenditure expected
to settle the obligation. All provisions are reviewed at each balance sheet date and adjusted to reflect the current
best estimate. The discount rate is a pre-tax rate that reflects current market assessments of the time value of
money and risk specific to the liability.
Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated
reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits
is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of
one or more future uncertain events not wholly within the control of the company, are also disclosed as contingent
liabilities unless the probability of outflow of economic benefits is remote.
The classification of financial instruments depends on the objective of the business model for which it is held.
Management determines the classification of its financial instruments at initial recognition.
B) Initial Measurement:
All financial instruments are recognized initially at fair value. Transaction costs that are attributable to the
acquisition of the financial asset/liability (other than financial assets recorded at fair value through profit or
loss) are included in the fair value of the financial assets/liabilities. While, loans and borrowings and payable
are recognized net of directly attributable transactions costs.
C) Subsequent Measurement:
For the purpose of subsequent measurement, financial instruments of the Company are classified in the
following categories: non-derivative financial assets comprising amortized cost; non derivative financial
liabilities at amortized cost and equity instruments at fair value through Profit and Loss account (FVTPL).
Equity instruments at Fair Value represent Investments in Mutual Funds classified as Current Investments.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
A financial asset shall be measured at amortized cost if both of the following conditions are met:
i) the financial asset is held within a business model whose objective is to hold financial assets in order
to collect contractual cash flows; and
ii) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
They are presented as current assets, except for those maturing later than 12 months after the reporting
date which are presented as non-current assets. Financial assets are measured initially at fair value
plus transaction costs and subsequently carried at amortized cost using the effective interest method,
less any impairment losses.
Financial Assets at amortized cost are represented by security deposits, cash and cash equivalents,
Trade receivables & similar nature and eligible current and non-current assets.
Non Current assets comprises investments in debentures or bonds quoted, fully paid up, which are
carried at amortized cost.
Financial liabilities at amortized cost represented by trade and other payables are initially recognized at fair
value, and subsequently carried at amortized cost using the effective interest method.
2.2.17: Impairment.
Impairment of Assets (Non-financial assets)
The company assesses at the end of each reporting period whether there is any indication that an asset may be
impaired. If any such indication exists, the company estimates the recoverable amount of the asset. An asset’s
recoverable amount is the higher of the asset’s or cash-generating unit’s value in use and its fair value less costs of
disposal, and is determined for an individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets, in which case the recoverable amount is determined
for the cash-generating unit to which the asset belongs. Company considers individual mines as separate cash
generating units for the purpose of test of impairment.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the
asset is reduced to its recoverable amount and the impairment loss is recognized in the Statement of Profit and
Loss
In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and
recognition of impairment loss. The Company follows ‘simplified approach’ for recognition of impairment loss
allowance on trade receivable.
The application of simplified approach does not require the Company to track changes in credit risk. Rather, it
recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
For recognition of impairment loss on other financial assets and risk exposure, the Company determines that
whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not
increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased
significantly, lifetime ECL is used. If in subsequent period, credit quality of the instrument improves such that
there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising
impairment loss allowance based on 12 month ECL.
Lifetime ECLs are the expected credit losses resulting from all possible default events over the expected life of a
financial instrument. The 12 month ECL is a portion of the lifetime ECL which results from default events that are
possible within 12 months after the reporting date
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the
contract and all the cash flows that the entity expects to receive (i.e. all shortfalls), discounted at the original EIR.
When estimating the cash flows, an entity is required to consider:
i) All contractual terms of the financial instrument (including prepayment, extension etc.) over the expected
life of the financial instrument. However, in rare cases when the expected life of the financial instrument
cannot be estimated reliably, then the entity is required to use the remaining contractual term of the financial
instrument.
ii) Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual
terms.
ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/expense
in the statement of profit and loss. The balance sheet presentation for various financial instruments is
described below:
Financial assets measured at amortised cost, contractual revenue receivable: ECL is presented as an
allowance, i.e. as an integral part of the measurement of those assets in the balance sheet. The allowance
reduces the- net carrying amount. Until the asset meets write off criteria, the Company does not reduce
impairment allowance from the gross carrying amount.
2.2.18: Leases:
The Company evaluates at the inception of a contract, whether the contract is, or contains, a lease, if the contract
conveys the right to control the use of an identified Asset. Identification of a lease requires significant judgment.
The Company determines the lease term as the non-cancellable period of a lease together with the periods
covered by an option to extend the lease if the Company is reasonably certain to exercise that option.
In the absence of the interest rates implicit in the Contracts, the Company adopts incremental borrowing rate as
the discount rate.
Lease liability is initially recognised and measured at an amount equal to the present value of lease payments to
be made during the lease term and corresponding amount is recognised as Right of Use Asset which is measured
at cost.
The lease liability is measured in subsequent periods using the effective interest rate method. The right-of-use
asset is depreciated over the lease term on straightline basis.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
The amounts payable in respect of Low Value leases up to Rs.2.00 lakhs/P.M per Identified Asset and the Short
term leases of 12 months or less are fully charged off as expenses of the period.
The Company had adopted Option II of the Modified Retrospective Approach permitted under Clause no C.5(b) read
with C7 and C8 of the Appendix C of the Accounting Standard. Accordingly, the Lease Liability and corresponding
Right of Use Assets are initially recognized at the present value of the future Lease payments outstanding as on
01.04.2019.
2.2.20: Material Prior Period Errors, Effect of change in the Accounting Policies:
Material prior period errors are corrected retrospectively by restating the comparative amounts of the prior period(s)
presented in which the error occurred. If the error occurred before the earliest period presented, the opening
balances of assets, liabilities and equity for the earliest period presented, are restated.
The changes to the accounting policies are done retrospectively and the application of such change is limited to
the earliest period practicable by adjusting the opening balance of each affected component of equity and other
comparative amounts disclosed for each prior period presented as if the new Accounting Policy had always been
applied.
115
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
As at 1 April 2018 1002.59 273.69 791.33 693.17 1,003.73 267.11 69.78 12,892.55 17.10 48.76 1.14 5,771.92 1,545.22 24,378.09
Adjustments - - - - - - - - - - - - - -
As at 1 April 2018 (Restated) 1002.59 273.69 791.33 693.17 1,003.73 267.11 69.78 12,892.55 17.10 48.76 1.14 5,771.92 1,545.22 24,378.09
Additions / Transfers 442.63 0.00 0.00 10.20 88.08 7.89 12.63 1,202.87 7.71 16.34 0.13 471.63 8.75 2,268.86
Deductions/Disposals/Transfers 0.00 -181.46 -19.11 -0.52 -19.80 - -6.71 -404.01 -0.45 -3.10 - -13.64 -22.01 -670.81
As at 31 March 2019(Restated) 1,445.22 92.23 772.22 702.85 1,072.01 275.00 75.70 13,691.41 24.36 62.00 1.27 6,229.91 1,531.96 25,976.14
Additions / Transfers 427.81 24.83 96.39 20.86 4.48 25.06 - 468.10 2.29 7.94 0.27 - 21.31 1099.34
THE SINGARENI COLLIERIES COMPANY LIMITED
Deductions/Disposals/Transfers - -0.09 - -6.92 -3.86 -12.17 -9.72 -407.72 -2.42 -10.29 -0.14 -1149.10 -87.72 -1690.15
As at 31 March 2020 1,873.03 116.97 868.61 716.79 1,072.63 287.89 65.98 13,751.79 24.23 59.65 1.40 5,080.81 1,465.55 25,385.33
Accumulated Depreciation:
116
As at 1 April 2018 304.55 3.48 428.34 86.17 248.52 172.56 34.23 4,294.19 11.55 35.44 0.83 2,460.39 1,032.23 9,112.48
Adjustments - - - - - - - - - - - - - -
As at 1 April 2018 (Restated) 304.55 3.48 428.34 86.17 248.52 172.56 34.23 4,294.19 11.55 35.44 0.83 2,460.39 1,032.23 9,112.49
Charge for the year 143.44 - 56.94 33.61 47.44 0.72 3.98 912.08 1.66 5.08 - 377.65 88.15 1,670.75
Deductions/Disposals/Transfers - 2.42 - -0.40 -19.79 - -6.72 -402.93 -0.45 -3.03 - -6.82 -21.48 -464.04
As at 31 March 2019(Restated) 447.99 1.06 485.28 119.38 276.17 173.28 31.49 4,803.34 12.76 37.49 0.83 2,831.22 1,098.90 10,319.19
Charge for the year 89.80 0.00 57.69 30.28 28.01 21.54 4.61 939.82 2.00 5.27 0.09 363.44 85.14 1,627.69
Deductions/Disposals/Transfers - - - -6.23 -2.48 -12.17 -4.15 -402.83 -2.41 -10.22 -0.14 -3.83 -87.72 -532.18
As at 31 March 2020 537.78 1.06 542.97 143.43 301.70 182.65 31.95 5,340.33 12.35 32.54 0.78 3,190.83 1,096.32 11,414.70
As at 31 March 2020 1,335.24 115.91 325.64 561.79 769.72 100.60 34.03 8,411.47 11.88 27.11 0.62 1,855.87 337.39 13,887.27
As at 31 March 2019 997.23 91.17 286.94 572.53 794.75 98.10 44.21 8,885.43 11.60 24.51 0.44 3,364.58 401.77 15,573.26
99th Annual Report & Accounts for the year 2019-2020
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
4.1 CWIP includes interest on borrowings from Power Finance Corporation for construction of STPP of
Rs. 0.00 Crore ( Previous Year: Rs. 85.59 Cr.)
4.2 CWIP includes interest on borrowings from SBI for Solar power plants Rs. 4.36 Crore (Previous Year: NIL)
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
5.A.1 : Option II of Modified Retrospective approach is adopted for transitional adjustments as on 01.04.2019.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
NOTE - 6: INVESTMENTS
(Rs. in Crore)
As at As at
Particulars
31.03.2020 31.03.2019
1. Non - Current
(A) Investment in Equity instruments
Unquoted, fully paid-up Shares
-14,750 Laxmi Porcelains Ltd of Rs.10/- each 0.01 0.01
Less: Provision for Diminution in the value of Investments 0.01 0.01 -
Investments in Co-operative Societies -
1,86,214 Singareni Collieries Co-operative Central Stores Ltd of 0.19 0.19
Rs.10/- each
Investment in Joint Venture
4,900 shares of APMDC-SCCL Suliyari Coal Co. Ltd. of Rs.10/-
each (Rs.49000)
Less: Provision for Diminution in the value of Investments in JV
(Rs.49,000) - -
Investment in Subsidiary
(i) 91,80,000 Andhra Pradesh Heavy Machinery & Engineering 9.18 9.18
Limited of Rs.10/- each
(B) Investments in debentures or bonds
Quoted, fully paid-up
(i) 10,000 - 9.75% APPFC Power Bonds (Series 2/2012) of 1000.00 1000.00
Rs.10 Lakh each.
(ii) 8,000 - 9.95% TSSPDCL Power Bonds (Series-1/2014) of 800.00 800.00
Rs.10 Lakh each.
(iii) 7,020 – 10.32% APPFCL Power Bonds (Series 1/2019) 702.00 -
TOTAL 2511.37 1809.37
2. Current :
Investment in Mutual Funds
Investment in IDBI Liquid Fund (2006125.747 units @ - 401.82
Rs.2002.9905 NAV/Unit)
Investment in SBI Liquid Fund (533.593 units @ Rs.2928.5700 - 0.16
NAV/Unit)
Investment in Baroda Liquid Fund (174795 units @Rs.2289.53 40.02 -
NAV/Unit)
TOTAL 40.02 401.98
(Rs. in Crore)
As at As at
Particulars
31.03.2020 31.03.2019
Aggregate of Quoted investments 2542.02 2201.99
Aggregate of Unquoted investments 9.39 9.39
Aggregate of Diminution provided 0.02 0.02
119
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
6.1 10000 Nos. of APPFC Power Bonds (Series 2/2012) @ Rs.10 Lakh each were pledged with State Bank of
India as security for obtaining Bank Guarantee of Rs.176.32 Crore and Rs.641.20 Crore for submission to
GOI as Performance Guarantee against allotment of Naini Coal Block and New patrapara Coal Mine blocks
respectively. The Bank Guarantees are valid up to 12.10.2020 and 19.04.2021 respectively.
6.2 750 Nos of TSSPDCL Bonds (Series-1/2014) were pledged for obtaining BG limit of Rs.50 Crore with State
Bank of India for obtaining BGs for submission to SECI, New Delhi against Viability Gap Funding(VGF)
scheme of Solar Power Projects. Against this BG limit, a BG for an amount of Rs.27.00 Crore was obtained
as on the reporting date and submiited to SECI, New Delhi, which is valid up to 29.12.2022.
NOTE - 7: LOANS
(Rs. in Crore)
As at As at
Particulars
31.03.2020 31.03.2019
Non Current
- Unsecured, considered good
- Deposit with LIC 2552.38 2030.76
- Security Deposits 109.41 38.61
TOTAL 2661.79 2069.37
Current
- Security Deposits 98.15 153.42
- Advances to Staff 81.52 73.21
TOTAL 179.67 226.63
7.1 Deposit with LIC represent amount parked in the Employees Terminal Benefits (ETB) scheme including
accrued interest thereon. The Funds are to be utilised for depositing of contributions to Gratuity Trust and
payment of other Terminal benefits by the Company.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
121
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
11.1 Out of the above Finished Goods, Washery Rejects of 4,99,395.288 Tonnes are indentified as non-saleable
owing to “NIL” grade and due to catching of Fire at MNG , RKP and RGM Washeries. Pending write off
of the these non-saleable washery rejects with Board’s approval in due course, provision towards grade
deterioration was recognised for Rs.4.61 Crore during year 2019-20 (refer Note no 22.9).
122
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
12.2 During the year, against the Coal dues, M/S. APGENCO has issued Bills Receivable for an amount of
Rs.951.86 Crore, which were discounted with Banks (ICICI/SBI/HDFC). As per the covenants of the Bills
discounting arrangements, the Company has to indemnify the Bankers in case of dishonour of the Bills of
Exchange by M/s APGENCO on the respective due dates. The dues from coal customers presented above
are net of the bill discounting proceeds of Rs.918.03 Crore.(Refer Note No:39.4.C.3).
123
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
E The company has only one class of shares referred to as equity shares having par value Rs.10/-.
The Details of Shareholders holding More than 5%:
As at As at
Name of the Shareholder 31.03.2020 31.03.2019
No. of Shares % Held No. of Shares % Held
Government of Telangana 88,55,99,147 51.0962 88,55,99,147 51.0962
Government of India 84,75,60,000 48.9015 84,75,60,000 48.9015
124
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
Shares outstanding at the end of the year 1,73,31,98,119 1,733.20 1,73,31,98,119 1,733.20
125
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
19.1 (i) Loan of Rs.3980 Crore from Power Finance Corporation (PFC) (Phase-I) for funding 2x600 MW STPP
is secured by an exclusive first charge on the project (2x600 MW STPP) assets, movable (by way of
hypothecation) and immovable (by way of mortgage).
(ii) The company has availed the Moratorium allowed on term loans as per the RBI circular DOR No.BP.
BC.47/21.04.048/2019-20 Dt. March 27, 2020 against the payment of instalments due on 15.04.2020.
Consequent to the availment of Moratorium, the Interest accrued but not due as on 31.03.2020
amounting to Rs.61.22 Crore was added to the carrying amounts of principal amount of Term Loan as
on 31.03.2020 as an adjusting event as per Ind AS -10.
(iii) The balance loan amount of Rs 2963.30 Crore (including interest of Rs.61.22 Crore) is repayable in 35
quarterly installments of Rs.82.92 Crore each. Interest payable on this loan is 9.50% p.a.
19.2 (i) Further Loan of Rs.1320 Crore (Phase II) is being taken from PFC & Rural Electrification Corporation
Ltd. (REC) for funding cost overrun of 2x600 MW STPP which is secured by an exclusive first charge
on all the project assets including movable and immovable on pari-passu basis with M/s PFC Ltd., (the
phase-I Lender). Out of this loan, an amount of Rs.1258.56 Crore has been utilized.
(ii) As stated at Para no 19.1(ii) above, a similar moratorium was availed on the installment due on
15.04.2020 against this Loan. Consequently, the Interest accrued but not due as on 31.03.2020
amounting to Rs.19.63 Crore was added to the carrying amounts of principal amount of Term Loan as
on 31.03.2020 as an adjusting event as per Ind AS -10.
(iii) The Outstanding amount of Rs.998.29 Crore (including interest of Rs.19.63 Crore) outstanding as on
31.03.2020 is repayable in 35 quarterly installments of Rs.26.88 Crore each. Rate of Interest payable
on this loan as below:
126
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
19.3 Loan From SBI for setting up of 300 MW Solar power plants at various areas for an amount of Rs.951.00
Crore from SBI is secured by first charge on all the present and future movable & immovable assets of
the Solar power plants. During the year, an amount of Rs.224.00 Crore was drawn against the sanctioned
amount. The interest rate applicable on the loan is 8.49%p.a with interest reset on yearly basis. The interest
on the loan drawn during the year of Rs.4.55 Crore is included in the carrying amount of the loan.
19.4 Loans payable on demand from Banks, represent the Demand loans availed from Bank of Baroda, Masabtank,
Hyderabad of Rs.72.00 Crore (against Pledge of FDR of Rs.80.00 Crore), Andhra Bank, Kothagudem
Rs.152.50 (against Pledge of FDR of Rs.170.00 Crore), and Yes Bank, Somajiguda, Hyderabad of Rs.27.00
Crore (against Pledge of FDR of Rs.30 Crore). The Interest accrued of Rs.5.22 Crore and Rs.0.26 Crore
on the loans from Andhra Bank and Yes Bank and not paid is added to the Loan amounts and presented as
carrying amounts as on 31.03.2020 .
19.5 Cash Credit and Special Overdraft Account - Secured by first charge in favour of participating banks ranking
pari-passu on the stocks & receivables and other Current Assets.
127
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
21.1 The Company has availed the Moratorium allowed on term loans as per the RBI circular DOR No.BP.
BC.47/21.04.048/2019-20 Dt. March 27, 2020 against the payment of instalments due on 15.04.2020. Hence,
the instalments due on 15.04.2020 were not included in the above current maturities of Long Term Debt.
21.2 The above presented amount of Current maturities of Long term Debt represent the 3 instalments payable
in the year 2020-21 (excluding Moratorium availed instalments due on 15.04.2020) in respect of term loans
from PFC & PFC-REC of Rs. 248.75 Crore and Rs. 83.88 Crore respectively. (Previous Year Term Loans
from PFC & PFC-REC of Rs.331.67 Crore and Rs.107.54 Crore respectively).
21.3 Further, consequent to availment of Moratorium as stated above, the Interest accrued but not due on the
term loans as on 31.03.2020 amounting to Rs. 80.85 Crore was added to the carrying amounts of the
respective principal amounts of Term Loans (Non Current) as on 31.03.2020 (being an adjusting event after
the Reporting Date as per Ind AS 10).
128
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
129
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
130
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
iv) During the Year 2019-20, the provision for backfilling is made for 9 mines only as against 11 mines (i.e.
excluding the above two OC Mines for which revised EC is obtained /approval is anticipated).The quantity of
OB required to backfill the void is considered as per the earlier Mining Plan / EC, wherever applicable, since
Final Voids are proposed as water bodies for 4 Mines and sequential dumping for one Mine in the Revised
Mining Plans.
v) In respect of the MNG OC and MNG OC II Extn, the existing provision of Rs 200.76 crore and Rs 971.45
crore respectively (net of Site restoration Assets) as on 01.04.2019 is continued in the books of account since
the revised Mining Plan / EC mandates certain statutory compliances for maintenance of final void as water
body by providing adequate engineering interventions for sustenance of aquatic life. Accordingly, the charge
to Profit & Loss account towards Backfilling obligation (including depreciation of site restoration Assets) for
the year 2019-20 was lower by Rs 228.91 Crore (MNG OC - Rs.90.86 Crore and MNG OC II Extn - Rs
138.05 Crore respectively ).For crystallization of liability as per the revised stipulations, scientific studies /
consultancy are proposed to be outsourced to experts in the relevant field in view of lack of precedence in
SCCL. Necessary withdrawals of provision will be made accordingly in due course.
vi) Further, in respect of SRP OC II and GK OC Projects, the provision for backfilling was reviewed adopting
the Revised Mine lives as proposed by Project Planning Department. Consequent to this, there is decrease
in the provision of backfilling by Rs 301.37 Crore out of which an amount of Rs 184.38 Crore is adjusted
against the carrying amount of site restoration cost asset and an amount of Rs.116.98 Crore (excess of
carrying amount pertaining to SRP OC II Project ) is taken to P&L account. Due to the downward revision
of provision and corresponding site restoration cost asset, there is a decrease in the current year charge
towards unwinding costs and deprecation of corresponding site restoration assets totaling to Rs 80.07 Crore.
Further, there would be decrease in the unwinding of discount by 8% and depreciation of the site restoration
cost assets till the end of life of the respective mine.
22.3 Provision for mine closure (MCP):
i) Provision for mine closure (MCP) is being made as per the accounting policy no 2.2.7.A based on the of
guidelines of Ministry of Coal (MoC) dated 7th January 2013.
ii) During the year 2019-20, revised Mine closure plan preparation guidelines have been issued by MoC
with revised mine closure cost per hectare of Rs.9 lakhs and Rs.1.5 lakhs for OC mines and UG mines
respectively(previous stipulation was Rs.6 lakh/RS.1 Lakh for OC and UG respectively). The revised rates
and conditions are implemented for the mine closure plans / final mine closure plans prepared subsequent
to receipt of revised guidelines.
iii) During the year 2019-20, mine closure provision was re-assessed in respect of 9 mines due to adoption of
revised mine lives as proposed by Project Planning Department of SCCL, approval of revised mine closure
plans by MoC and Final Mine closure Plans by the Board of Directors . Consequent to this, there is an
overall decrease in mine closure provision by Rs 33.59 Crore. Out of which an amount of Rs. 15.31 Crore
is accounted by adjusting asset balance of corresponding provision and Rs 18.28 Crore is taken to P&L
Account as income.
iv) Provision for Mine closure plan is made for 18 OC and 28 UG mines against 20 OC and 29 UG Mines.
During the year Rs.118.03 Crore (including Rs.48.83 Crore of interest accrued) was deposited in designated
131
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
escrow accounts. The cumulative Deposit as on 31.03.2020 is Rs.917.92 Crore (including accrued interest
of Rs.132.06 Crore net off TDS).
v) Against the deposits for MCP held in the escrow accounts as on the reporting date, an amount of Rs.57.44
Crores was released provisionally by Coal Controller during June and July 2020 (released after the reporting
date). This amount is 50% of the claimed amounts including interest on Mine closure expenditure claims in
respect of 17 Mines for the years from 2013-14 to 2017-18 submitted by the Company. Pending scrutiny and
verification by the technical committee of Coal Controller, as this amount is only adhoc amount, no receivable
is recognised in the accounts as on the reporting date. Further, pending Assessment of Mine Specific actual
progressive/final mine closure expenditure, no adjustments in Mine closure provisions and corresponding
Assets are made in the accounts of FY 2019-20.
22.4 Provision for Remediation & Community Resource Augmentation Plans(RP &
NCRAP)
i) In pursuance of notification vide S.O.804 (E), dated 14.03.2017 issued by MoEF&CC, the Company had
submitted proposals for obtaining Environment Clearances involving 20 projects falling under the EC violation
category. As per the ToRs issued by MoEF&CC, EMPs comprising of Remediation Plan and Natural &
Community Resource Augmentation Plans (RP & NCRAP) corresponding to the ecological damage assessed
and economic benefits derived due to violation are to be prepared. Accordingly, EMPs were prepared for
two proposals viz., Cluster of GDK-1&3, 2&2A and 5 Inclines and JVR OC-1 Expansion projects. EAC
recommended activities with Rs.2.77 Crore for implementation of RP & NCRAP for Cluster of GDK-1&3,
2&2A and 5 Inclines and the RP & NCRAPs for JVR OC-1 Expansion project is submitted to MoEF&CC for
an amount of Rs.26.26 Crore.
ii) The estimated liability towards the cost of implementation of RP & NCRAP of Rs.86.71 Crore (being the cost
assessed in the plans already submitted and amounts equivalent to 3% of Capital investment cost towards
damage assessment and 3% of economic surplus generated for other Projects) is provided for in the current
year.
iii) Considering the specific nature of the expenditure, the Company has classified and disclosed as Exceptional
item as per Para no 9.6 of Guidance Note issued by ICAI on Division II – Ind AS Schedule –III to the
Companies Act, 2013.
22.5 Provision towards Performance Related Pay (PRP) ( Executives):
The carrying amount of the provision represents the amounts payable to Executives of the Company as part
of Revised Pay Package was adopted by Company on par with other Central Public Sector Units as per 2nd
and 3rd PRC in respect of the period from 01.01.2007 upto 31.03.2014, FY2018-19 and FY 2019-20. During
the Year, PRP for the year 2017-18 was paid with the approval from designated authority. Pending receipt
of approval from designated authority, an amount of Rs.79.81 Crore was provided for the year 2019-20 as
per the procedure prescribed in DPE guidelines considering Operating Profit for the current year (i.e. Profit
before tax after excluding interest earned on idle cash, deposits /investments). (PY Rs.111.47 Crore).
22.6 Royalty on Closing Stock of Coal at Mines/CSPs amounting to Rs.48.35 Crore was
not transacted in the Books (Previous year Rs. 18.05.Crore )
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
TOTAL - -
24.1. Contract liabilities represent the Deposits/Advances from Customers recognised as per Ind AS-115 –
Revenue from contracts with customers.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
26.1 The Gross Turnover of Coal presented above is net of Goods & Service Tax (GST).
26.2 Sale of Power presented above includes net revenue of Rs.100.51 Crore recognised as per Order issued by
Hon’ TS ERC dt 28.08.2020 for Truing up of Tariff petition for the billing periods 2016-17 to 2018-19 (Income
of Rs.105.01 Crore) and Revision petition for the billing periods 2019-20 to 2023-24 (refund of Rs.4.50 Core
for FY 2019-20), being an adjusting event in pursuance of the provisions of Ind AS 10 – ‘Events After the
Reporting Period’.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
Disaggregated Revenue Information as per Ind AS 115 – “Revenue from Contracts with
Customers”:
(Rs. In Crore)
Particulars 2019-20 2018-19
Types of goods or service
- Coal 14727.36 16339.43
- Power 4126.76 3483.07
- Others 4.89 3.59
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
27.1 Income from Mutual Funds includes an amount of Rs.0.02 Crore Fair Value adjustment as on 31.03.2020
recognised through Profit & Loss Account (FVTPL) (PY Rs. 1.33 Cr).
27.2 Provisions written back include withdrawal of Backfilling provision of Rs.116.98 Crore and Mine Closure
Provision of Rs.10.28 Crore on review of Mine lives, withdrawal of provision made for Idle Freight claims in
FY 2018-19 on settlement of the claims of Rs.5.69 Crore, withdrawal of Provision made in the earlier years
towards Bad& doubtful debts on write off of the Debts on current year of Rs.4.21 Crore and Misc.credits/
claims taken to Company’s account Rs.5.39 Crore (Previous year Rs.9.08 Crore) .
27.3 Miscellaneous Receipts for the current year include sale proceeds of scrap/waste Rs. 24.24 Crore (previous
year Rs.24.09 Crore), Penalties recovered from contractors & suppliers Rs.29.20 Crore (previous year
Rs.32.13 Crore), Handling charges collected from employees and Contractors on the goods sold on sale
account Rs.24.84 Crore (Previous year Rs.1.37 Crore) and E-auction service charges Rs.5.82 Crore
(previous year Rs.10.78 Crore).
27.4. No Subsidy for Sand Stowing works for FY 2019-20 is recognised as the CCDAC, Ministry of Coal has not
approved the claims submitted in 2017-18 consequent to revocation of Stowing Excise duty in GST regime.
However, subsidy of Rs.5.02 Crore towards certain protective works approved by CCDAC and Rs.3.37 Crore
being excess of capital grants over the carrying amount of the Assets are recognised as Subsidy Income
(Revenue) during the current year.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
35.1 Provision for Doubtful Debts/ Advances for the year 2018-19 includes an amount of Rs.161.50 Crore
provided towards Expected Credit Loss on the Late Payment Surcharge (LPS) on power dues recognised
in FY 2017-18 on accrual basis as there is significant uncertainty in collection since TS Transco has been
making repeated requests for waiver of the same.
36.1 Bad and doubtful debts written off in FY 2018-19 of Rs.114.85 Crore represent the claims for Sand stowing
subsidy and protective works for the year 2017-18 recognized on accrual basis but not approved by CCDAC,
Ministry of Coal due to revocation of Stowing excise duty in GST regime.
36.2 Bad Debts Written-off in FY 2019-20, represent dues of Rs.4.21 Crore towards Rent, Electricity & Water
supply charges.
36.3 Assets Written-off includes write-off of Obsolete Stores Rs.2.28 Crore (PY 5.66 Crore). The balance amount
represents the write-off of carrying amount of PPE, Other Fixed Assets owing to surveyed off assets for
obvious reasons and Assets not useful/non-retrievable on closure of mining operations etc.
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Notes to the Standalone financial statements for the year ended 31st March, 2020 (Contd...)
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
NOTE – 39
ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS (STANDALONE)
FOR THE YEAR ENDED 31st MARCH, 2020.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(b) Measured at amortized cost and for which fair values are disclosed in the financial statements:
(Rs. in Crore)
st st
Financial assets and liabilities measured As on 31 March 2020 As on 31 March 2019
at amortized cost for which fair values are
Level-I Level-II Level-III Level-I Level-II Level-III
disclosed at 31st March, 2020
Financial Assets at FVTPL
Loans 2841.47 - - 2296.00
Others 1299.10 - - 1837.50
Trade receivables 9461.92 - - 5,346.26
Cash & cash equivalents 1101.67 - - 730.63
Other Bank Balances 287.03 - - 1,869.89
Investments 2502.19 - 1800.19 -
Financial Liabilities - -
Borrowings 4122.04 - - 3,855.45
Trade payables 784.19 - - 1,010.44
Other Financial Liabilities 2032.29 - - 1813.23
Level-I: Level-I hierarchy includes Financial Instruments measured using quoted prices
Level-II: The fair value of Financial Instruments that are not traded in an active market is determined using valuation techniques which
maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required
to fair value an instrument are observable, the instrument is included in level-II. Investments other than investments in Joint Ventures/
Subsidiary included in Level-II.
Level-III: If one or more of the significant inputs is not based on observable market data, the instrument is included in level-III. This is
the case for unlisted equity securities, bonds, borrowings, security deposits and other liabilities taken included in level-III.
(c) Valuation technique used in determining Fair Value
• The Fair Value of the remaining Financial Instruments is determined using discounted Cash Flow
analysis.
ii) Fair Value measurements using significant unobservable inputs at present there are no Fair Value
measurements using significant unobservable inputs.
(d) Fair values of Financial Assets and Liabilities measured at Amortized cost
ã The carrying amounts of trade receivables, short term deposits, cash and cash equivalents, trade
payables are considered to be the same as their fair values, due to their short-term nature.
ã Other Financial Assets accounted at Amortized Cost are not carried at Fair Value only if same is not
material.
ã The Company considers that the security deposit does not include a significant financing component.
The milestone payments (security deposits) coincide with the company’s performance and the contract
requires amounts to be retained for reasons other than the provision of finance. The withholding of
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
a specified percentage of each milestone payment is intended to protect the interest of the company,
from the contractor failing to adequately complete its obligations under the contract. Accordingly
transaction cost of Security deposit is considered as fair value at initial recognition and subsequently
measured at amortised cost.
Significant Estimates:
The Fair Value of Financial Instruments that are not traded in an active market is determined using
valuation techniques. The Company uses its judgment to select a method and makes suitable
assumptions at the end of each reporting period.
A. Credit Risk:
Credit risk arises from Cash and Cash Equivalents, Investments carried at amortized cost and Deposits with Banks
and Financial Institutions, as well as including outstanding receivables.
Credit risk management:
Macro - economic information (such as regulatory changes) is incorporated as part of the Fuel Supply Agreements
(FSAs), Power Purchase Agreements (PPAs) and e-auction terms.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
As contemplated in and in accordance with the terms of the New Coal distribution Policy(NCDP), we enter into
legally enforceable FSAs with our customers or with State Nominated Agencies that in turn enters into appropriate
distribution arrangements with end customers. Our FSAs can be broadly categorized into:
• FSAs with customers in the power utilities sector, including State power utilities, Private Power Utilities
(“PPUs”) and Independent Power Producers (“IPPs”);
• FSAs with customers in Non-Power Industries (including captive power plants (“CPPs”)); and
SCCL is operating 2X600 MW Thermal Power Project (STPP) .To secure guarantee of purchase of power and
certainty of revenue stream, legally enforceable power purchase agreement has been entered with Southern
Power Distribution Company of Telangana Ltd(TSSPDCL) and Northern Power Distribution Company of Telangana
Ltd(TSNPDCL) on 18.01.2016 for 25 years from the date of COD of the project i.e., 02.12.2016.
E-Auction Scheme:
The E-Auction scheme of coal has been introduced to provide access to coal for customers who were not able to
source their coal requirement through the available institutional mechanisms under the NCDP for various reasons,
for example, due to a less than full allocation of their normative requirement under NCDP, seasonality of their coal
requirement and limited requirement of coal that does not warrant a long-term linkage. The quantity of coal to be
offered under E-Auction is reviewed from time to time by the MOC.
Provision for Expected Credit Loss: The Company provides for expected credit risk loss for doubtful/ credit
impaired assets, by lifetime expected credit losses (Simplified approach).
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
The impairment provisions for Financial Assets disclosed above are based on assumptions about risk of default
and expected loss rates. The company uses judgement in making these assumptions and selecting the inputs to
the impairment calculation, based on the company’s past history, existing market conditions and uncertainty in
collection as well as forward looking estimates, at the end of each reporting period.
B. Liquidity Risk:
Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents and the availability
of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the
dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining
availability under committed credit lines.
Management monitors forecasts of the company’s liquidity position (comprising the undrawn borrowing facilities
below) and cash and cash equivalents on the basis of expected cash flows.
Financing arrangements
The company had access to the following undrawn borrowing facilities at the end of the reporting period.
(Rs. in Crore)
Exposure to risk As on 31 March 2020 As on 31 March 2019
Interest bearing borrowings :
On demand :
Less than 365 days - -
More than 365 days :
PFC-REC Loan 2 61.44 101.34
SBI term Loan (Solar) 722.45 -
Total 783.89 101.34
C. Market Risk :
a) Foreign currency risk :
The Company is not substantially exposed to the Foreign currency risk. The Foreign currency outflows
represent the purchase of equipments and spares. To minimize the Foreign currency risk the Company’s
policy is to make payment of the major portion of the contract price in advance/ LCs.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
b) Cash flow and fair value interest rate risk: Ind AS 107(33)(a) :
The company’s main interest rate risk arises from bank deposits with change in interest rate exposes
the company to cash flow interest rate risk. Company’s policy is to maintain most of its deposits at fixed
rate.
c) Equity instruments in Mutual Funds are subjected to market risk. The Company’s policy is to invest
in Mutual Funds in the debt based instruments for short periods only to minimize the exposure to the
market risk.
Capital Management
The company being a Government Entity manages its capital as per the guidelines of Department of Investment
and Public Asset Management under Ministry of Finance.
(Rs. in Crore)
Particulars As at 31.03.2020 As at 31.03.2019
Equity Share capital 1733.20 1733.20
Long term debt (PFC+PFC&REC+SBI(SOLAR)) 3857.20 3843.07
(Rs. in Crore)
Sl. For the For the
Particulars
No. FY 2019-20 FY 2018-19
1. Coal Mines Provident Fund Scheme is a Defined Contribution Plan 657.61 679.52
and charged off to Statement of Profit & Loss.
2. Superannuation & Pension Benefit to the Executive Cadre employ- 65.55 17.36
ees was provided and charged off to Statement of Profit & Loss.
ii) The Company operates some Defined Benefit Plans as follows which are valued on Actuarial basis:
• Gratuity (Funded)
• Leave Encashment (Vesting)
• Leave Entitlements (Non-Vesting)
• Settling Allowance
• Leave Travel Concession
• Monthly Monetary Compensation(MMC)
• CPRMS(E) / CPRMS(NE)
iii) Total liability as on 31.03.2020 based on valuation made by the Actuary, details of which are mentioned
below is Rs. 4645.28 Crore (Previous Year Rs. 4136.07 Crore).
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(Rs. in Crore)
Opening Actuarial Incremental Closing Actuarial
Particulars Liability as on Liability during the Liability as on
01.04.2019 Year 31.03.2020
Gratuity 2748.32 380.15 3128.47
Leave Encashment (Vesting) 612.28 19.65 631.93
Leave Entitlements (Non-Vesting) 266.39 21.16 287.55
CPRMS(E) / (NE) 241.94 58.70 300.64
Monthly Monetary Compensation 151.38 4.30 155.68
Settling Allowance 55.46 19.00 74.46
Leave Travel concession 60.30 6.25 66.56
Total 4136.07 509.21 4645.28
a) Gratuity:
Gratuity payable to eligible employees is administered by a separate Trust. The Liability towards Gratuity as on
each reporting date is made on the basis of Actuarial Valuation. The actuarial liability (as certified by the Actuary)
towards Gratuity net of Funds maintained in the Trust (Unfunded Liability) amounted to Rs.3128.47 Crore as at
31.3.2020 (Previous Year Rs. 2748.32 Crore).
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
f) Settling Allowance is valued on actuarial basis and actuarial liability as at 31.03.2020 is Rs.74.46 Crore as
against Previous Year of Rs.55.46 Crore.
g) Leave Travel concession is valued on actuarial basis and actuarial liability as at 31.03.2020 is Rs.66.56
Crore (Previous Year Rs.60.30 Crore). An amount of Rs.19.47 Crore was paid under this Scheme and
charged to revenue.
The disclosures as per Actuary’s Certificate for employee benefits for Gratuity (funded) and Leave
Encashment (funded) are given below: -
(Rs. in Crore)
As at As at
Changes in Present Value of defined benefit obligations
31.03.2020 31.03.2019
Present Value of obligation at beginning of the period 4808.41 4818.17
Current Service Cost 155.26 195.66
Past Service Cost - -
Interest Cost 318.34 345.15
Actuarial (Gain) / Loss on obligations due to change in financial assumption 58.42 25.69
Actuarial (Gain) / Loss on obligations due to unexpected experience (33.90) -
Benefits Paid (941.57) (576.26)
Present Value of obligation at end of the period 4364.96 4808.41
(Rs. in Crore)
As at As at
Changes in Fair Value of Plan Assets
31.03.2020 31.03.2019
Fair Value of Plan Asset at beginning of the period 2060.09 2219.00
Interest Income 117.98 167.35
Employer Contributions - 250.00
Benefits Paid (941.57) (576.26)
Return on Plan Assets excluding Interest income - -
Fair Value of Plan Asset as at end of the period 1236.49 2060.09
(Rs. in Crore)
As at As at
Statement showing reconciliation to Balance Sheet
31.03.2020 31.03.2019
Fund Liability 4364.96 4808.41
Fund Asset 1236.49 2060.09
Un Funded Status 3128.47 2748.32
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(Rs. in Crore)
As at As at
Expense Recognized in Statement of Profit / Loss
31.03.2020 31.03.2019
Current Service Cost 155.26 195.66
Past Service Cost - -
Net Interest Cost 200.36 177.81
Benefit Cost (Expense recognized in Statement of Profit/Loss) 355.62 373.47
(Rs. in Crore)
As at As at
Other Comprehensive Income
31.03.2020 31.03.2019
Actuarial (Gain) / Loss on obligations due to change in financial assumption 58.42 25.69
Actuarial (Gain) / Loss on obligations due to unexpected experience (33.90) -
Total Actuarial (Gain) / Loss - -
Return on Plan Asset, excluding Interest Income - -
Balance at the end of the period - -
Net (Income) / Expense for the period recognized in Other 24.52 25.69
Comprehensive Income
(Rs. in Crore)
As at As at
Statement showing Plan Assumptions
31.03.2020 31.03.2019
Discount Rate 6.75% 7.50%
Expected Return on Plan Asset 7.40% 8.25%
Rate of Compensation Increase (Salary Inflation) 6.50% 7.00%
Average Expected Future Service (Remaining Working Life) 14.49 Years 12.84 Years
Average Duration of Liabilities 20.01 Years 21.89 Years
Mortality Table LIC (2006-08) LIC (2006-08)
Ultimate Ultimate
Superannuation at Age 60 Years 60 Years
Early Retirement and Disablement
Gratuity limit Rs.20 lakh Rs.20 lakh
As at As at
Mortality Table
31.03.2020 31.03.2019
Mortality Mortality
Age
(Per Annum) (Per Annum)
Uniform for all ages 4.04 4.56
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(Rs. in Crore)
Statement Showing Benefit Information Estimated Future payments (Past Service)
Year 31.03.2020 31.03.2019
1 982.44 566.30
2 470.22 755.35
3 533.83 725.59
4 556.53 582.79
5 472.15 786.14
6 to 10 1362.74 1711.05
More than 10 years 2495.29 2506.06
Total Undiscounted Payments Past and Future Service 6873.20 7633.29
Total Undiscounted Payments related to Past Service 4447.06 4870.45
Less Discount For Interest 82.10 62.04
Projected Benefit Obligation 4364.96 4808.41
(Rs. in Crore)
Statement Showing Cash Flow Information 31.03.2020 31.03.2019
Current service Cost (Employer portion Only) Next period 154.00 155.26
Interest Cost next period 6.75 7.50
Expected Return on Plan Asset 75.00 167.00
Benefit Cost 950.00 555.00
(Rs. in Crore)
As at As at
Statement Showing expected return on Plan Asset at end Measurement
31.03.2020 31.03.2019
Current liability - -
Non-Current Liability - -
Net Liability 4364.96 4808.41
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(Rs. in Crore)
As at As at
Changes in Present Value of defined benefit obligations
31.03.2020 31.03.2019
Present Value of obligation at beginning of the period 612.28 680.80
Current Service Cost 124.23 81.10
Interest Cost 45.92 49.78
Actuarial (Gain)/ Loss on obligations due to change in financial assumption 9.46 12.96
Curtailment of Benefits - (51.36)
Benefits Paid (159.96) (161.00)
Present Value of obligation at end of the period 631.93 612.28
(Rs. in Crore)
As at As at
Changes in Fair Value of Plan Assets
31.03.2020 31.03.2019
Fair Value of Plan Asset at beginning of the period Unfunded Unfunded
Interest Income Unfunded Unfunded
Employer Contributions Unfunded Unfunded
Benefits Paid Unfunded Unfunded
Return on Plan Assets excluding Interest income Unfunded Unfunded
Fair Value of Plan Asset as at end of the period Unfunded Unfunded
(Rs. in Crore)
As at As at
Statement showing reconciliation to Balance Sheet
31.03.2020 31.03.2019
Fund Liability 631.93 612.28
Fund Asset - -
Funded Status Unfunded Unfunded
(Rs. in Crore)
As at As at
Statement showing Plan Assumptions
31.03.2020 31.03.2019
Discount Rate 6.75% 7.50%
Rate of Compensation Increase (Salary Inflation) 6.50% 7.00%
Average Expected Future Service (Remaining Working Life) 14.49 Years 12.84 Years
Average Duration of Liabilities 20.01 Years 21.89 Years
Mortality Table LIC (2006-08) Ultimate
Superannuation at Age 60 Years 60 Years
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(Rs. in Crore)
As at As at
Expense Recognized in Statement of Profit / Loss
31.03.2020 31.03.2019
Current Service Cost 124.23 81.10
Net Interest Cost 45.92 49.78
Curtailment in benefits in current year - (51.36)
Actuarial (Gain)/ Loss on obligations due to change in financial assumption 9.46 12.96
Benefit Cost (Expense recognized in Statement of Profit/Loss) 179.61 92.48
As at As at
Mortality Table
31.03.2020 31.03.2019
Age Mortality Mortality
(Per Annum) (Per Annum)
Uniform for all ages 4.04 4.56
(Rs. in Crore)
Statement Showing Benefit Information Estimated Future payments
Year 31.03.2020 31.03.2019
1 75.47 51.84
2 70.30 52.65
3 78.33 62.56
4 87.11 59.09
5 74.93 52.68
6 to 10 284.59 177.18
More than 10 years 310.00 174.08
Total Undiscounted Payments Past and 980.73 696.12
Future Service
Total Undiscounted Payments related to Past Service 679.36 630.08
Less Discount For Interest 47.43 47.81
Projected Benefit Obligation 631.93 582.27
(Rs. in Crore)
As at As at
Statement Showing expected return on Plan Asset at end Measurement
31.03.2020 31.03.2019
Current liability 90.87 110.01
Non-Current Liability 541.06 502.27
Net Liability 631.93 612.28
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
4. Unrecognized items:
4.A. Contingent Liabilities
(Rs. in Crore)
Sl. As on As on
Particulars
No. 31.3.2020 31.3.2019
Claims against the Company not acknowledged as debts:
(i) Demand from Divisional Forest Officer towards NPV for renewal of 14.08 7.91
different mining leases – contested by the company
(ii) Workmen Compensation (cases contested – court) 0.90 0.91
(iii) Motor Accident claims (cases contested – court) 0.35 0.67
(iv) Police Guard (excess man power billed disputed) 2.98 2.98
(v) S C Railways (damages, demurrages etc. disputed) 1.67 1.62
(vi) Water Royalty (billed at Industrial rate disputed) 1.10 1.10
(vii) Vacant Land Tax (Levy contested) 16.06 16.06
(viii) Contractors & Suppliers 323.20 265.09
(ix) Other disputed claims & Legal cases etc. 12.73 26.43
(x) Service Tax demands were raised on OBR contractors by Service 337.64 337.64
Tax Department treating value of free issue explosives and HSD oil
as additional consideration to them. The demands of Service Tax
Department have been contested by the Service Providers. Pending
adjudication of disputed demands, SCCL issued letter of comfort to
the contractors with commitment to reimburse Service Tax, interest
and penalty thereon in case the verdict goes against them.
However, Larger Bench of CESTAT, New Delhi in the case of M/s.
Bhayana Builders (P) Ltd., and others held that value of the goods
and materials supplied free of cost of being neither monetary nor non-
monetary consideration and would be outside the taxable value or the
gross amount charged to Service Tax.
In the appeal filed by M/s. SV Engg. Constructions, to whom comfort
letter was given by SCCL, the Hyderabad Circuit Bench of CESTAT
has given judgment in favour of M/s. SV Engg. Constructions.
Further, in appeals filed by M/s. PLR Projects Pvt. Ltd., M/s Gulf Oil
Corporation Ltd., M/s GRN Construction Pvt. Ltd., M/s. BGR Mining &
Infra Pvt. Ltd. And SV Engg. Constructions, CESTAT, Bangalore has
passed a judgement in favour of the Contractors.
Against the order passed by the CESTAT in the case of M/s. Gulf Oil
Corporation Ltd, the Service Tax Department has filed a Civil Appeal in
the Hon’ble Supreme Court. The Supreme Court has pronounced its
judgement on the Civil Appeal stating that material issued free of cost
does not attract service tax (Civil Appeal Nos 1335-1358 of 2015).
However, as the individual orders for the cases filed by Contractors
are yet to be received, the service tax liability against the Comfort
Letter is considered as contingent liability.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(Rs. in Crore)
Sl. As on As on
Particulars
No. 31.3.2020 31.3.2019
(xi) (a) Excise Duty demands on quantity disputes. 5.70 5.75
(b) Education Cess and Secondary Higher Education Cess 0.78 0.78
demands raised by Excise Department from March, 2011 to
March, 2015 contested by SCCL
(c) Demand for Clean Energy Cess - 0.24
(d) Excise Duty on APGENCO performance Incentive - 10.87
(e) CEC on Closing Stock as on 30.06.2017 (Pre-GST) 223.39 235.30
(xii) Tax Demands from Commercial Taxes Department (including 31.72 5.67
entry tax) which are disputed by SCCL and pending before various
appellate authorities for adjudication.
(xiii) Tax Demands from Income Tax Department which are disputed by 372.87 212.58
SCCL and pending before various appellate authorities for adjudication.
(xiv) (a) Service Tax demand on TDS Component on Import Services for the - 0.15
period 2008-09 to Sept, 2015 raised by the Service Tax Department
is disputed and pending before CESTAT for adjudication.
(b) Service Tax demand on Liquidated damages, Penalties etc - 10.95
collected by SCCL for the period from July, 2012 to March ,2017
raised by The Service Tax dept is disputed and pending before
CESTAT, Hyd for adjudication. However, an amount of Rs.10.95
Crs demanded by the Department has been deposited to eh
Governments Account under protest.
(xv) Profession Tax: Dy. C.T.O., KGM has been issued a Demand Notice 176.44 176.44
basing on G.O. No. 14897/CT-IV/2004, Dt. 23.02.2013 for arrears
of professional tax recovery from employees and remittance to the
Dept. For the years 1990-91 to 2012-13. Previously it has been
kept in abeyance for NCWA employees of SCCL by the Govt. As
per above mentioned G.O. Govt. Has rescinded that. Representative
Union has requested CM of Telangana for abolish of Professional
Tax for Coal miners and the same is kept abeyance.
(xvi) Service Tax demand on Liquidated damages, penalties etc., collected - 0.95
by SCCL for the period from April 2017 to June 2017 raised by the
Service Tax Department.
(xvii) Tax Demand on Irregular availment of credit on certain services 1.66 1.66
which are ineligible (services connected to Transmission, Lighting,
Canteen, Railway Siding, Maintenance and Repairs of Building,
Laying and Repairs of Road, Bore well, RO plants, Air ticketing)
(xviii) (a) Claims for additional compensation decided by the Lower Courts in 25.82 12.48
favour pattadars which were contested by the company in Higher
Courts for Acres 548 Guntas 11 ½ ( PY Acres: 114, Guntas 12.)
(b) Claims in respect of suits filed by the Pattadars for additional Not quantifiable Not quantifiable
compensation for Acres 4465,Guntas 5 ½ (Previous year: Acres:
2369,Guntas 30¼) contested by the Company and pending in
Courts.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Sl. As on As on
Particulars
No. 31.3.2020 31.3.2019
(xix) An amount of Rs.13.56 Crore has been charged to M/s. B.G.R. Mining &Infra Pvt. Ltd., towards lead
variation charges and recognised as income during the year 2012-13. As against recovered amount of
Rs.13.56 Crore, an amount of Rs.5.81 Crore was released during the year 2013-14 keeping the Bank
Guarantees for an amount of Rs.7.65 Crore as collateral security. A case has been filed by the contractor
before the Hon’ble XXVI Addl Chief Judge, CCC, Hyderabad challenging the above recovery.
(xx) Coal pilferage was reported in Financial year 2013-14 involving 12099 Tonnes, valued at Rs.4.04 Crore.
The party made a conditional deposit of Rs.4.37 Crore and the amount is kept under deposits. Pending
enquiry issue is not dealt in the books.
The contingent liability indicated above is excluding interest wherever applicable.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
4.C.1.1 This includes Bank Guarantees of Rs.176.32 Crore,Rs.40 Crore and Rs.641.20 Crore submitted to
MoC, Government of India, as Performance Guarantees against allotment of Naini Coal Block, Odisha,
Penagadapa Coal Block, Telangana and New Patrapara Coal Mine Odisha, respectively. In addition,
Bank Guarantees worth, Rs.33.84 Crore submitted to M/s SECI, New Delhi, against Solar power plant
related works. In respect of the coal blocks allotted, pre-mining operations are in progress.
4.C.3.1 Out of these, Bills of Exchange worth Rs.240.55 Crore (discounted with ICICI), Rs.210.05 Crore
(discounted with SBI), Rs.200.57 Crore (discounted with HDFC) and Rs.300.69 Crore (discounted
with SBI) have been honoured by M/s APGENCO on respective maturity dates (i.e. on 10.06.2020,
08.06.2020, 14.08.2020 and 14.09.2020 respectively).
5. Other Information
5.1 Ind AS 115 -Revenue from Contracts with Customers :
Significant judgments & other disclosures
1. Identification of contract :
(A) Coal :
a) Customers: Most of coal produced by the Company is supplied to thermal power plants. Coal
is also supplied to various industries that include, cement, sponge iron & others and also for captive
consumption.
b) Distribution and Marketing Policy: Government of India has issued New Coal Distribution Policy
(NCDP) on October 18, 2007 with an objective to meet the demand of coal from consumers of different
sectors of the economy, both on short term and long term basis, in an assured, sustained, transparent
and efficient manner with built - in commercial discipline. The Company abides by it.
i) Fuel Supply Agreements (FSAs): As contemplated in and in accordance with the terms of the
New Coal Distribution Policy (NCDP), the Company enters into legally enforceable FSAs with
customers. FSAs can be broadly categorized into: ·
• FSAs with customers in the power utilities sector, including state power utilities, private
power utilities (PPUs) and independent power producers (IPPs);
• FSAs with customers in non-power industries (including captive power plants (CPPs))
• FSAs through linkage route.
• Memorandum of Understanding(MOU)
ii) E-Auction Scheme: The E-Auction scheme of coal has been introduced to provide access
to coal for customers who were not able to source their coal requirement through the available
institutional mechanisms under the NCDP for various reasons, for example, due to a less than
full allocation of their normative requirement under NCDP, seasonality of their coal requirement
and limited requirement of coal that does not warrant a long-term linkage. The quantity of coal to
be offered under E-Auction is reviewed from time to time by the Ministry of Coal, Government of
India.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
iii) Shakti: A coal linkage policy named SHAKTI or the ‘Scheme to Harness and Allocate
Koyla (Coal) Transparently in India’ was introduced with an objective to auction long-term coal
linkages to power companies.
This policy award fuel supply agreements to coal plants already holding letters of assurance
(LoAs). It is issued to new consumers on being approved by the appropriate authority, based on
recommendation of a committee constituted. Specific terms & conditions of the LOA are to be
complied with within a stipulated time period for being eligible to enter into FSA for commencing
coal supply.
Thermal plants holding LoAs will be eligible to sign fuel supply pacts under the new policy after
ensuring that all the conditions are met.
Coal linkages would be awarded to state-owned power distribution companies (discoms).
These, in turn, would assign linkages to:
• State or Central power generation companies via allocation, and
• Private units through auction.
Transfer of Title of Goods: Once delivery of Coal have been effected at the Delivery Point by
SCCL, the property / title and risk of coal so delivered stand transferred to the purchaser in
terms of this Agreement. Thereafter SCCL in no way be responsible or liable for the security or
safeguard of the Coal so transferred. SCCL have no liability, including towards increased freight
or transportation costs, as regards missing/diversion of wagons / rakes or road transport en-
route, for whatever causes, by Railways, or road transporter or any other agency.
(B) Power:
Power generated at Thermal Power Plant of the Company (STPP) is supplied to the TSDISCOMS, Telangana
state power distribution companies. A separate power purchase agreement (PPA) is entered by the company
with Electricity Distribution Company for 25 years valid up to 01.12.2041. The terms and conditions of PPA
are as per prevailing Telangana State Electricity Regulatory Commission (TSERC) regulations.
2. Performance Obligation (Transportation, Infrastructure and Logistics):
(A) Coal:
a. Following the extraction of coal from a mine/working face, coal is transported to dispatch points
through tipping trucks and conveyor belts. Coal is delivered to the customers from the dispatch points
through rail, road, rope-way or dedicated rail MGR system.
b. All consignments dispatched are weighed either at company owned weighbridges available at SCCL
dispatch points or to the nearest weighbridges owned by the Railways. Sales are either “free on rail”
or “free on road” from the designated dispatch points. Customers may choose the mode of transport
between rail and road. If the dispatch point from the mines is within 20 kilometres, the customers
bear such transportation cost at specified rates as notified by the company from time to time. In
circumstances where the distance from the dispatch point is more than 20 kilometres from the mines,
the customer bears the actual cost of transportation.
c. The quality of coal delivered / to be delivered conforms to the specifications. The company makes
adequate arrangements to assess the quality and monitor the same to ensure that un-graded Coal
(GCV of less than 2200 Kcal/Kg for non-coking coal) is not loaded into the purchaser’s containers.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
d. The company delivers sized coal with size conforming to specifications. SCCL makes reasonable
efforts to remove stones from coal.
e. The Company uses magnetic separators and metal detectors, at its coal handling / loading system at
the delivery point, where the same are already installed.
(B) Power:
a. As per PPA, SCCL (STPP) is required to operate the plant as a base load station as per manufacturers
guidelines, applicable grid operating conditions, directions of the TSERC and relevant statutory
provisions as applicable from time to time.
b. SCCL is required to sell the capacity to the TSDISCOMs as per PPA shall, in each settlement period,
be as 85% of the declared capacity(DC) of the plant as determined by TSERC Tariff Regulations issued
from time to time.
c. SCCL is required to follow the SLDC’s directives, to back down, increase or resume generation,
decrease generation at time on a day, provided that such directives are consistent with the technical
limits of facility, Prudent utility practices.
3. Transaction Price:
(A) Pricing of coal:
a. The pricing of Non-Coking Coal is presently based on its Gross Calorific Value w.e.f. 01.01.2012 and
that of Coking Coal & Washery Grade Coal is set on the basis of ash level content. Pricing of coal
for Semi Coking Coal is set on the basis of ash & moisture content level. The coal price is revised
considering the escalation in input cost, inflation and landed cost of imported coal. The final customer
price includes basic price and other charges (Cess, Royalties, GST and others). Around 90% of Coal
is sold under the long-term fuel supply agreements (FSAs) executed between company and the linked
customers. In addition, coal is also sold under E-auction scheme.
b. The Purchaser pays the Base Price of Coal in accordance with the provisions of the Agreement. The
Base Price of Coal is declared by Company from time to time.
c. The “As Delivered Price of Coal” for the Coal supplies pursuant to the Agreement is the sum of Base
Price, Other Charges and Statutory Charges, as applicable at the time of delivery of Coal.
d. Base price/Standalone price means, in relation to a Declared Grade of Coal produced by SCCL, the
Pithead price notified from time to time by the company, as the case may be.
e. Variable Consideration:
i. Annual Contracted Quantity (ACQ): At the inception of the every year the Annual Contracted
Quantity of Coal is agreed which is to be supplied by SCCL and undertaken to be purchased
by the Purchaser from SCCL’s mines and/ or from international sources. For part of Year, the
ACQ is prorated accordingly. If for a Year, the Level of Delivery by SCCL, or the Level of Lifting
by the Purchaser falls below ACQ with respect to that Year, the defaulting Party is liable to pay
compensation to the other Party for such shortfall in Level of Delivery or Level of Lifting, as the
case may be (Failed Quantity). MOUs are signed for one year and above ACQ quantity.
ii. Performance Incentive: If SCCL delivers Coal to the purchaser in excess of the determined
percent of the ACQ in a particular Year, the purchaser pays SCCL an incentive (Performance
Incentive/ PI).
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
iii. Adjustment for Grade Variance (Coal Quality Variance): SCCL gives regular credit/debit
notes on account of Grade variance to the extent of difference in the Base Price of Declared
Grade and analyzed Grade of Coal.
iv. Other Charges
Surface Transportation charges: Where Coal is transported by SCCL beyond the distance
of three (3) KMs from pithead to the delivery point, the purchaser pays surface transportation
charges, as notified by SCCL from time to time.
Sizing/Crushing charges: Where Coal is crushed by mechanical means for limiting the top-size
to 100mm, or any other lower size, the Purchaser pays sizing/crushing charges, as applicable
and notified by SCCL from time to time.
Rapid Loading Charges: Where Coal is loaded through rapid loading system, the Purchaser
pays rapid loading charges notified by SCCL from time to time.
Evacuation charges: Recovery of evacuation charges is also done at the specified rate. In all
cases, the entire freight charges, irrespective of the mode of transportation of the Coal supplied,
is borne by the Purchaser.
Additional charges: The Company collects additional charges like additional transport/
rehandling cost, additional charges for coal loaded at specified sidings, Land adjustment, Engine
Shunting charges, Fuel Supply Surcharge, Forest Permit Fee and other elements at the rates
notified from time to time.
In all cases, the entire freight charges, irrespective of the mode of transportation of the Coal
supplied, is borne by the Purchaser.
f. Statutory Charges: The statutory charges comprises royalties, cesses, GST, levies etc. if
any, payable under relevant statute but not included in the Base Price and/or other charges, is
payable by the purchaser. These levies/charges become effective from the date as notified by
the Government/ statutory authority.
(B) Pricing of Power:
a. The tariff for electricity supplied would be as determined under the tariff regulations of TSERC and
tariff order thereof from time to time. Tariff for sale of electricity would be based on prevailing TSERC
regulations from time to time.
b. Capacity charges are to be approved by the TSERC for each tariff year, to be claimed by SCCL.
c. Variable charges like Coal, Secondary fuel oil are calculated as per agreed formula under PPA and
are shown separately in monthly thermal energy bills. Incentives shall be calculated as per target plant
load factor as specified in Tariff order for 2x600MW Power Plant as a whole.
4. PAYMENT:
A. Coal :
i. Fuel Supply Agreement - Credit Sales
a) N T P C - Payment is to be received from the Purchaser within three days from the date of submission
of bills. Bills will be raised on daily basis.
b) TSGENCO / APGENCO - Bills will be raised in the first lot from 1st to 7th of the month, second lot
from 8th to 20th and third lot from 21st to the 30th/31st of the month. The Purchaser has to release the
payment within five days from the date of submission of bills (excluding day of submission).
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
c) KPCL / MSEB - Bills will be raised in first lot from 1st to 10th, second lot 11th to 20th and third lot from 21st
to 30th/31st of the month. Payment has to be received within three days from the date of submission of
bills (excluding day of submission).
d) In addition to the above, SCCL will go for MOUs for the above FSA customers, bridge linkage and non-
bridge linkage power customers for supply of coal on best efforts basis.
ii. E-Linkage - Auction of Linkage (AOL).
The customers without FSA and MOC Linkage are to be participated in the bidding in the open auction. All
the Power and Non-Power customers excluding the above and whose requirement of coal is more than
10,000 Tons per annum are mandatorily get allotment of coal through auction of linkage (E-Linkage). MOC
has given an option to the customers to participate in AOL bidding or not, if their annual requirement is 4200
to 10,000 Tons Per Annum. AOL contractors are in the nature of Long Term Contracts of five years are
considered AS FSA customers. Payment is 100% advance against each sale order. The bidding quantity in
the first year which is called as Annual Contracted Quantity (ACQ) will be considered for the next five years.
iii. E-Auction - These are short term contracts for a period of three months. MOC has fixed maximum E-Auction
quantity is 10% of the total despatch quantity. All the customers’ viz., Power, Non-Power and FSA, Non-FSA
and Open Order customers can participate in the bidding. Payment is 100% advance.
iv. Rail Customers - Long term purchasers and good credit track record are extended credit of one rake for
three bank working days subject to submission of one rake advance amount in the form of Cash Guarantee
or Bank Guarantee. If the customer fails to repay the amount within three days, interest will be charged
equivalent to SBI CC Rate applicable to SCCL.
The Purchaser makes advance payment for a month in three (3) instalments for availing Coal supplies from
SCCL – first (1st) instalment on the first (1st) day of the month, second (2nd) instalment on the eleventh
(11th) day of the month and the third (3rd) instalment on the twenty first (21st) day of the month. Each of
these payment instalments cover the As Delivered Price of Coal for the Coal quantities that is one-ninth
(1/9th) of the QQ concerned.
Further, each of these instalments takes into account the average of Base Prices of Grades. However, the
third (3rd) instalment also include the adjustment amount with regard to the actual quantity of Coal delivered
and the quality of Coal vis-à-vis the advance payment made for the previous month. For the avoidance of
any doubt, such adjustment amount also includes the adjustment of quantity and quality.
v) Advances received from the customers are reported as customer’s deposits (contract liabilities) unless the
conditions for revenue recognition are met.
vi) Advance payment made by the Purchaser is non-interest bearing, and it changes in accordance with change
in the As Delivered Price of Coal. No significant finance component is included therein.
vii) Bills of Miscellaneous Claims:
• Compensation for short supply/lifting, is payable by the defaulting Party to the other Party within a
period of ninety (90) days from the date of receipt of claim failing which it will attract interest.
• After expiry of the Year, SCCL submits an invoice to the Purchaser with respect to the Performance
Incentive and the Purchaser pays the amount so due within thirty (30) days of the receipt of the invoice
failing which it attract interest.
viii) Annual Reconciliation / Adjustments: SCCL and the Purchaser jointly reconcile all payments made for the
monthly Coal supplies during the Year by end of April of the following Year. The Parties, forthwith, give credit/
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
debit for the amount falling due, if any, as assessed during such joint reconciliation. The annual reconciliation
statement is be jointly signed by the authorized representative of SCCL and the Purchaser which is final and
binding on both, SCCL and the purchaser.
B. Power:
a. The monthly bill raised under PPA include charges for supply of electricity, taxes, duties and cess.
Monthly bills are based on meter reading taken that has been mutually agreed by the both of the
parties.
b. Due date for payment for monthly bills presented is 60 days from the date of raising of Bill.
c. Rebate can be granted by SCCL which can be maximum to 2 percentage. If payments are made within
a week, maximum rebate granted to 1.25 percentage.
d. Additional bills on account of TSERC orders/ appellate tribunal of electricity/ other court/ other
competent authority to be billed through supplementary invoice unless included in monthly invoice.
e. Payment is to be by TSDISCOMS by irrevocable letter of credit. Appropriation of payment made is to
be governed in mutually agreed manner as per PPA.
f. In case of any dispute, 95% of the disputed amount along with objection is to be filed within 30 days.
5.2 Ind AS 116 : Leases :
5.2.1 In pursuance of the provisions of Ind AS 116 – Leases effective from 01.04.2019, the Company had
recognised the Lease Liabilities and Right of Use Assets, in respect of the Leases contained in the Service/
Hiring Contracts in operation where the contracts convey the right to control the use of the indentified Assets
to the Company as a Lessee.
5.2.2 The company had adopted Option II of the Modified Retrospective Approach permitted under Clause no
C.5(b) read with C7 and C8 of the Appendix C of the Accounting Standard. Accordingly, the Lease Liabilities
and corresponding Right of Use Assets are initially recognized at Rs.15.95 Crore being the present value of
the future Lease payments outstanding as on 01.04.2019.
5.2.3 The amounts payable in respect of Low Value leases up to Rs.2.00 lakhs/PM per Asset and the Short term
leases of 12 months or less are fully charged to expense.
5.2.3 During the year further Lease liabilities Rs.19.63 Crore and Right of Use Assets at the corresponding amount
are recognised in respect of the new Leases commenced during the Year 2019-20. During the year, Finance
cost of Rs.1.42 Crore (being the unwinding cost of interest @ 8.50%) included in the payments identified
as lease elements and depreciation on Right of Use Assets for an amount of Rs.9.98 Crore (on straightline
basis over the lease period) is charged off to Profit & Loss Account for the year 2019-20. The identified value
of lease payments of Rs.10.92 Crore were reduced from respective lease liabilities and the Hiring cost of the
Assets. The overall impact of the implementation of the Ind AS 116- Leases for FY 2019-20 is Rs.0.48 Crore
only (net increase in expenditure).
5.2.4 The carrying amounts of Lease Liability and the Right of Use Assets as on 31.03.2020 are Rs.26.08 Crore
and Rs.25.60 Crore respectively.
5.2A: Government Grants :
5.2A.1 During the year, an amount of Rs.5.02 Crore is recognised as Revenue Grants against the Protective
works and the portion of capital grants which are in excess of carrying amount of respective assets upon the
receipt of approval in 83rd and 84th meetings of CCDAC. Further, as CCDAC has not considered the claims
submitted by the company for sand stowing subsidy from 01.04.2017(onwards as Stowing Excise Duty has
been subsumed by GST), no income is recognised on the same during the year.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
5.2A.2 During the year, Capital Grants for an amount of Rs 74.64 Crore against Road, Rail and Man Riding
Systems approved in the 83rd & 84th meetings of CCDAC have been recognised during the year 2019-20. An
amount of Rs.71.27 Crore is adjusted from the carrying amount of respective asset. An amount of Rs.3.37
Crore out of capital grants approved are charged to P&L account which are in excess of carrying amount of
respective assets.
5.2A.3 During the year, the proceeds of Grants received from CCDAC amounted to Rs 3.87 Crore comprising of
Rs.1.26 Crore towards revenue grants and Rs 2.61 Crore towards Capital Grants .
5.3 Provisions :
The position and movement of various provisions as on 31.03.2020 are given below:
(Rs. In Crore)
Opening Closing
Addition Write back/ Unwinding
Balance Balance
Provisions during the Adj./ payments of
as on as on
year During the year discounts
01.04.2019 31.03.2020
Long term provisions:
Gratuity 2748.32 179.79 - 200.36 3128.47
Leave encashment - Vesting 502.27 38.79 (10.87) - 530.19
Leave Entitlement – Non vesting 266.39 21.15 - - 287.54
Monthly Monetary Compensation 106.88 9.30 - - 116.18
& Low productive employee
compensation (MMC & LPE)
Settling Allowance 46.25 15.11 - - 61.36
Leave Travel Concession 32.19 10.07 - - 42.26
OBR (Net of Advance Action) 2513.85 719.85 - - 3233.70
Backfilling 11146.84 (1276.20) 705.49 10576.13
Mine Closure Plan 1107.33 20.22 (33.59) 81.28 1175.24
Remedial Action Plan - 86.71 - - 86.71
Short term provisions :
Gratuity 1.32 0.10 - - 1.41
Leave Encashment (Vesting) 110.01 - (8.27) - 101.74
MMC &LPE 44.50 - (5.00) - 39.50
Superannuation Benefit 310.87 67.35 (10.00) - 368.22
Post Superannuation Medical 327.55 162.28 - - 489.83
Benefit- Executives & Non
Executives
Performance related pay – Exe 235.13 79.82 (55.99) - 258.96
Performance Linked Reward 292.54 273.35 292.54 - 273.35
Scheme(PLR) (Exgratia)
Settling Allowance 9.21 3.88 - - 13.09
LTC / LLTC 28.11 - (3.81) - 24.30
Corporate Special Incentive 477.00 278.28 (477.00) - 278.28
Provision for Grade deterioration of - 4.61 - - 4.61
Washery Rejects
Provision for CSR - 29.78 - - 29.78
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
2. Subsidiary Company:
Company is having a subsidiary -Andhra Pradesh Heavy Machinery & Engineering Limited, Vijayawada:
3. APMDC-SCCL Suliyari Coal Company Ltd., a Joint Venture by SCCL and APMDC:
During the year there are no operations. The Joint Venture was formed for exploration of coal in Suliyari
Coal Block. Hon’ble Supreme Court vide its judgement dated 25.08.2014 has cancelled this Coal Blocks
allocation. In the SCCL’s Board meeting held on 04.03.2017, it was accorded approval for voluntary winding
up of the JV Company and seeking repayment of Rs.9.80 Crore from JV Company which was contributed by
the company.
The winding up proceedings of the JV Company are yet to commence. The Company has made provision
towards diminution in the value of investments for Rs.49,000/- (Share Capital) and doubtful advances for
Rs.9.80 Crore ( Share application money kept in Advances account).
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(i) Name of the Joint Venture entity: APMDC – SCCL Suliyari Coal Company Ltd.
(ii) Country of Incorporation : India
(iii) Principal Activities : Coal & Lignite mining; generating power through Wind, Tidal and Solar sources and
Setting up integrated power plants
(iv) Ownership interest: 49%
(v) Original cost of Investment: Rs.49,000/- & Rs.9,79,51,000/- paid towards Share application.
(vi) Aggregate amounts related to interest in Joint Venture entity:
The Company’s interest in the aforementioned entity’s assets, liabilities, income and expenditure are not
disclosed as the entities financials are not finalised yet.
b) Sitting Fees:
(Rs. In Crore)
Sl. For the year For the year
Payment to Independent Directors
No. ended 31.03.2020 ended 31.03.2019
1 Sitting Fees - -
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
5.8 Taxation:
(i) Accounting for Taxes on Income under Ind AS-12- Calculation of Deferred Tax :
(Rs. In Crore)
As on As on
DEFERRED TAX ASSETS/ LIABILITY
31.03.2020 31.03.2019
A Deferred Tax Liabilities
Depreciation 1032.39 1331.03
TOTAL 1032.39 1331.03
B Deferred Tax Assets
Back filling & Mine Closure Provision 1101.19 1501.83
Gratuity 801.31 960.37
Other Employment Benefits 597.72 745.15
Overburden Removal 633.29 879.28
MAT Credit - 479.82
Other Provisions 340.54 477.22
TOTAL 3474.05 5043.67
Deferred Tax Assets (net) (B-A) 2441.66 3712.64
Year ended
SI.No. Nature of Adjustments
31.03.2020
1 Net profit as per Statement of Profit and Loss (before tax) 2869.06
2 Add/Less: Differences as per Income Tax Act. (MAT) 468.80
3 Book profit for the purpose of MAT(1-2) 3337.86
4 Applicable tax rate @34.944% 34.944%
5 MAT on Book profit as per income Tax Act, 1961 (3*4) 1166.38
6 Taxes as per P&L A/c
a) Current year tax 1166.38
b) Deferred Tax in P&L 690.47
c) Deferred Tax in OCI (6.17)
7 Net tax liability as per P&L A/c 1850.68
8 Other Comprehensive Income (Excluding Deferred Tax on OCI) (24.52)
9 Profit after Tax (Total comprehensive income for the period) (1-7+8) 993.86
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
iii) Explanation of changes in applicable tax rates compared to previous accounting period :
a) During the year, the Govt of India has notified an option to the Assesses for payment of Corporate
Income Tax at either the normal Tax rate of 34.944% with MAT Credit entitlement and availment
of special exemptions or at the reduced Tax rate of 25.168% without MAT credit entitlement and
Exemptions. Based on the Estimated Tax liability under both the options, the payment of Income Tax
on the normal Tax rates is beneficial for the year 2019-20. Hence, the company has opted to pay
Income Tax at normal rates of 34.944% with MAT Credit utilization and availment of 80IA exemption
in respect of STPP profits. Accordingly, the current tax liability for the year 2019-20 at normal rates
worked out to Rs.1166.38 Crore (Previous Year Tax provision is Rs. 620.64 Crore (MAT)).
b) Further, as per the estimates of physical parameters and Profitability for future accounting periods, the
payment of Income Tax at Normal tax rate of 34.944% would be beneficial for FY 2020-21 also and
from FY 2021-22 onwards, the reduced Tax rates would be favourable. As per the provisions of Ind AS
12 – “Income Taxes” read with Accounting Policy no 2.2.13(B), the deferred Tax Assets/Liabilities have
been arrived by considering the rate of Income Tax at which they would be realized i.e. at 34.944% for
FY 2020-21 and at 25.168% from 2021-22 onwards. Consequently, an amount of Rs.850.24 Crore is
charged off as impairment of deferred Tax Assets (net) in the current year.( Refer Note No 9.1)
c) The total amount of Deferred Tax Asset (net) charged off including the movement in the various items
of Deferred Tax Assets/ Deferred Tax Liabilities and the impairment of deferred Tax assets on account
of Rate reduction as mentioned above worked out to Rs.684.30 Crore.
For the Financial year 2018-19, the Company has declared and paid Dividend @10% on the paid-up equity
share capital in the FY 2019-20 amounting to Rs.173.32 Crore. Dividend distribution Tax at the effective rate
of 20.557 % amounting to Rs.35.63 Crore was paid on the same during the year.
As per the amendments made to Section 115 O of Income Tax Act, during the current year, no Dividend
distribution Tax is applicable on the dividends declared /paid on or after 01.04.2020.
v) Unsettled Tax propositions :
The expenditure reimbursed to Educational society was disallowed in the latest assessments by the Tax
Authorities, without change in law or the nature of claim. The company has contested the disallowance
before the Appellate Authorities and expecting a favourable decision. The tax liability for the current year is
arrived duly considering the educational society expenditure as an allowable expenditure.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
5.13 Others:
A) As required by Section 22 of the Micro Small and Medium Enterprises Development Act, 2006 (MSMED) the
following information is disclosed on the basis of information available with the company.
(Rs. In Crore)
Particulars As on 31.3.2020 As on 31.3.2019
The principal amount remaining unpaid (But not due) 21.25 11.99
Interest due thereon (interest due and / or payable) Nil Nil
B) Consequent to handing over of 9 schools, 2 colleges and 1 Polytechnic to Singareni Collieries Educational
Society, all running expenses of these institutions, after deduction of receivables from these institutions (viz.,
Grant-in-Aid, Fee collections from students, recoveries from the employees towards amenities provided
etc.,) are being met by the Company by way of Educational Grant. Further, infrastructure used by the Society
is continued to be under the ownership of the Company for which no recovery is made from the Society.
C) The company engage contractors for removal of Overburden. In some of the contracts the contractors are
eligible for Bonus in respect of the quantity of explosives and HSD oil saved by them during the course of
the contract, which is to be set off against future excess consumption as per contractual terms. Further,
these contractors can claim and en-cash such accrued Bonus at the end of every financial year at their
option. Considering the uncertainty, the value of explosives and HSD oil saved and not en-cashed by such
contractors for set off against future excess consumption amounting to Rs.73.68 Crore is not provided for in
books as on 31.03.2020 (Previous year Rs.77.18 Crore).
D) Balance Confirmations:
i) Balance confirmation/reconciliation is carried out for cash & bank balances, certain loans & advances,
long term liabilities and current liabilities. Provision is taken against all doubtful unconfirmed balances.
(Rs. In Crore)
For the Year For the Year
Particulars
ended 31.3.2020 ended 31.3.2019
Components, Stores & Spare Parts 7.69 21.42
Capital Goods 49.36 29.60
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Coal Sales Revenue by Rs.6.51 Crore, Development Expenditure by Rs.6.51 Crore and consequent
increase in profit for FY 2018-19 was Rs.6.51 Crore). Consequently, the corresponding reported figures
of FY 2018-19 are restated. Due to change in the policy, there is an increase in the Sales revenue and
Development Expenditure by Rs.6.71 Crore during the current year.
d) Overburden Removal Accounting:
As per the Accounting Policy 2.2.10.1(ii), general review of stripping ratios is taken up once in five years
in respect of only those OC mines which have completed five years of revenue workings. However,
as per this policy, certain revenue Mines which have not completed five years of revenue production
by the time of a general review are escaping the review of stripping ratios for 6 to 9 years, as the case
may be.
In order to cover the review of Stripping Ratios of all the OC Mines in operation (irrespective of period
of revenue working thereof) the review of stripping ratios of all the operating OC mines is taken up in
current year by modifying the accounting policy regarding the periodicity of revision of stripping ratios
as 3 years interval from the existing 5 years. Further, the revised stripping ratios of the projects not
qualified for the general review of stripping ratios are also estimated by the Project Planning dept by
the usage of latest software modelling techniques.
The modification to the Accounting Policy reducing the interval period of general review of stripping ratios
from five years to three years could not be given retrospective implementation as it was impracticable to
apply the revised Accounting Policy retrospectively owing to non availability of the relevant information
at that point of time. The respective previous periods and revised stripping ratios have since been
firmed up in the current year. Hence, the financial impact of the change in the Accounting policy as to
the review period is applied prospectively as a change in the estimate and an additional amount of
Rs.169.03 Crore is debited to Profit & Loss Account in the current year in respect of five OC Mines.
K) Future Changes in the Accounting Policies:
As per requirement mentioned at Para No. 30 of Ind AS 8 (Accounting Policies, Changes in Accounting
estimates and Errors), the amendments to standards that are issued, but not yet effective, up to the date
of issuance of the Company’s financial statements are disclosed below. The Company intends to adopt
these standards, if applicable, when they become effective. The Ministry of Corporate Affairs (‘MCA’) has
issued the Companies (Indian Accounting Standards) Amendment Rules, 2020 which shall be applied from
01.04.2020. Some of the amendments made to the standards relevant to the company as under:
a) Ind AS 103 – “ Business Combinations” :
The amendment made with regard to determination of whether a transaction or other event is a
business combination, which requires determining whether the assets acquired and liabilities assumed
constitute a business or not and in case the assets acquired are not a business, accounting for the
transaction or other event as an asset acquisition, may not have any impact on the Company as no
business acquisitions are proposed for.
b) Ind AS 109 – “Financial Instruments”:
The amendments made with regard to accounting treatment of Uncertainty arising from interest rate
benchmark reform and Temporary exceptions from applying specific hedge accounting requirements
are not applicable as there are no such Financial Instruments in the Company.
c) Ind AS 116 – “Leases”:
The amendments proposed with regard to Covid-19-related rent concessions for lessees are not
applicable to the Company as there are no such transactions in the Company.
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are also revised as 12% of actual salary earned from the even date. Consequent to this revision,
Administrative charges @ 3% are required to be paid on the CMPF Contributions only. However, while
payment of Pay revision Arrears in FY 2018-19, Administrative charges were erroneously paid on the
Pension Contributions also to the CMPF authorities, which was noticed in the current year.
Hence, the excess paid administrative charges are adjusted against the amounts payable to CMPF
authorities in the current year and financial impact of FY 2018-19 was recognised by restating the
corresponding reported figures of Employee benefit Expenses are reduced by Rs.15.88 Crores. On
this, deferred tax liability of Rs.5.55 Crore (increase) was also recognised. The net increase in the
Profit for the year 2018-19 was Rs.10.33 Crore.
3. Errors in Overburden removal Accounting :
Few errors in the overburden accounting owing to non provisioning for estimated amounts payable on
the closed contracts, omission of diesel penalty recoverable, incorrect stores expenditure allocation
etc, with consequential impact on the OBR charge, updation of reserve/advance action are noticed in
the current year which need to be corrected retrospectively. Accordingly, the Financial Impact of these
errors up to 31.03.2018 (earliest Period was adjusted against retained earnings as on 01.04.2018
for an amount of Rs.2.41 Crore (Credit) (Rs.3.70 Crore net of deferred tax of Rs.1.29 Crore) and the
financial impact of FY 2018-19 was recognised by restating the corresponding reported figures of
related expenditure GLs/OBR adjustment account, as the case may be, by Rs.8.72 Core (Credit). On
this, deferred tax liability of Rs.3.05Crore (increase) was also recognised. The net increase in the Profit
for the year 2018-19 was Rs.5.67 Crore.
4. Non regularisation of Tax liability provision :
For the year 2017-18, the estimated Tax liability (including deferred tax) as per the information
available up to the closure of accounts was provided in the Books of Account. However, inadvertently
the regularisation of the estimated Tax liability against the actual Tax liability firmed up as per the
Return of Income filed and consequential withdrawal of excess liability of Rs. 28.80 Crore was not
done in FY 2018-19, which need to be viewed as a prior period error and requires retrospective
correction. Accordingly, the corresponding reported figures of Tax liability of FY 2018-19 was restated.
The increase in the Profit (PAT) for the year 2018-19 was Rs.28.80 Crore.
5. In addition to above, few expenses pertaining to prior periods have been recognised in the current
year. These items amounting to Rs.2.19 Crore (decrease) have been corrected retrospectively by
restating the opening balance of retained earnings as on 01.04.2018 (earliest period) by Rs.1.69 Crore
(decrease) and the comparative amounts for the prior period 2018-19 by Rs.0.50 Crore (decrease) as
the case may be.
6. Exceptional Items :
In pursuance of notification vide S.O.804 (E), dated 14.03.2017 issued by MoEF&CC, the Company
had submitted proposals for obtaining Environment Clearances involving 20 projects falling under the
EC violation category. The Company has recognised liability of Rs.86.71 Crore for implementation
of Remediation Plan and Natural & Community Resource Augmentation Plans (RP & NCRAP)
corresponding to the ecological damage assessed and economic benefits derived due to violation.
Considering the specific nature of the expenditure the Company has classified and disclosed the same
as Exceptional item as per Para no 9.6 of Guidance Note issued by ICAI on Division II – Ind AS
Schedule –III to the Companies Act, 2013. (Refer Note no 22.5).
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7. Dividend Information :
For the year 2018-19 dividend was declared by the shareholders in the AGM held on 30.09.2019
@ 10% of paid up Share Capital. The Dividend of Rs.173.32 Crore and Dividend Distribution Tax of
Rs.35.63 Crore there on paid during the current year totalling to Rs.208.95 Crore have been adjusted
against the Retained Earnings. For the year 2019-20, the Board of Directors have recommended
dividend @ 10% of the Paid up Share Capital which works out to Rs.173.32 Crore. Pending declaration
of Dividend for the year 2019-20 by the shareholders in the ensuing AGM, the same is not accounted
in the books of account as it is in the nature of an event after the reporting date as per Ind AS 10. As
mentioned at Para no.39.5.8(iv), no dividend distribution tax is applicable on the same.
8. Disclosures with regard to COVID-19 and its impact:
a) Financial Impact: The Company has been classified as an Emergency Services Provider. The
lock down imposed in the country in March 2020 due to COVID-19 had caused only minor effect
on the operations of the Company. There is a loss of Coal production of 2.69 LT and despatches
are lower by 5.05 LTs in March 2019-20. Consequent to this there is a reduction in Revenue by
Rs.100.11 Crore (net of increase in inventory) and corresponding reduction in the Profit Before
Tax (PBT ) by even amount.
b) Impact of Corona Virus on financial reporting – Assets & Liabilities:
1) Inventory: There is reduction of 5.05 LT in the despatch of Coal to customers in March
2020 due to Covid 19. As the major customers of the Company are power generating
utilities which are declared as emergency services, the Management do not see any need
to write down the inventories in view of COVID-19.
2) Impairment test for Assets: No impairment of non-financial assets like property, plant &
equipment, intangibles and goodwill, is felt necessary due to COVID-19.
3) Change in useful life of fixed assets: No change in useful life of assets is felt necessary
due to COVID-19.
4) Fair value of financial assets/instruments: There is no impact due to COVID-19 in fair
value of financial assets/instruments.
5) Trade receivables-Expected Credit Loss: No additional ECL is felt necessary due to
COVID-19 Situation.
6) Leased Assets: No changes in conditions of the Lease agreements due to COVID-19.
7) Capitalisation of Borrowing cost: There is no impact on the Capitalisation of Borrowing
Cost.
8) Provision for onerous contract: There are no onerous contracts in the Company hence
provisioning towards the same does not arise.
9) Going concern assumption need to be reassessed by management: The management
feels that there shall not be any impact on Going Concern Assumption due to COVID-19
as on Balance Sheet date and next 12 months.
10) Impact of COVID-19 on significant uncertainties: As the Company is classified as
an Emergency service sector and operations are continued as normal, no significant
uncertainties have been emerged by the outbreak of the COVID-19 in measuring various
assets and liabilities. However, due to the overall economic situation in the country, it is
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
estimated that there could be 15%-20% scale down in the operations in the year 2020-21
when compared to the reporting period.
c) Impact of Corona virus on financial reporting-Revenue & Expenses:
1) Revenue recognition: No reassessment of Revenue is felt necessary considering the
impact of COVID-19.
2) Recognition of insurance claims filed due to loss on account of COVID-19: There
has been no loss for which insurance claims need to be filed due to loss on account of
COVID-19 (Loss of Profit Policy) as the generation of power at STPP was normal during
the lockdown period in March 2020.
3) Re-measurement of deferred taxes: No changes in the deferred taxes are expected due
to COVID-19.
4) Revision in risk assessment and materiality: Management feels that the demand position
of Coal in FY 2020-21 would be lower as compared to FY 2019-20. During the period from
April 2020 to August 2020, there was a reduction in production and despatches by 44%
and 46% respectively. However, the overall scale down in the operation during the year
2020-21 is expected to be in the range of 15% - 20%. No material risks are anticipated
necessitating their provisioning in the Accounts for FY 2019-20.
5) Year-end physical verification: Physical verification of Inventory has been carried out at
various projects as per Perpetual Inventory System.
6) External confirmations: Letters seeking confirmations have been sent to Debtors and
Creditors as per every year practice.
9. Miscellaneous :
1. Previous period’s figures have been restated as per Ind AS & regrouped, rearranged and
renumbered wherever considered necessary.
2. (i) Note-1 gives corporate information;
(ii) Note-2 represents Significant Accounting Policies
(iii) Note-3 to Note-25 form part of the Balance Sheet as at 31st March, 2020
(iv) Note-26 to Note-38 form part of Statement of Profit & Loss for the year ended on that date; and
(v) Note-39 represents Additional Notes to the Financial Statements.
Date : 03-10-2020
Place : Hyderabad
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FORM AOC-1
[Pursuant to first proviso to sub-section (3) of section 129 read with rule of 5 of Companies (Accounts) Rules, 2014]
Statement containing salient features of the financial statement of subsidiaries/ associate companies/ joint ventures
FY 2019-20
8. Investments --
9. Turnover 72.81
Date : 03-10-2020
Place : Hyderabad
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint
Ventures ( FY 2019-20)
Date : 03.10.2020
Place : Hyderabad.
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Date : 03-10-2020
Place : Hyderabad
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Statement of Consolidated Profit & Loss for the year ended 31st March 2020
(Rs in Crore)
S. Particulars Note For the year ended
No. No. 31.03.2020 31.03.2019
Revenue from Operations
(I) Revenue from Operations 26 18885.55 19845.84
(II) Other Income 27 921.47 876.74
(III) Total Income (I+II) 19807.02 20722.58
(IV) EXPENSES
Cost of Materials Consumed 28 3002.23 3686.99
Changes in Inventories of Finished goods 29 (236.63) 471.05
Employee Benefits Expense 30 6338.84 6849.20
Finance Costs 31 1192.85 1268.62
Depreciation and Amortization expenses 1602.14 1663.28
Power & Fuel 32 475.32 481.88
Repairs & Maintenance 33 216.69 216.61
Contractual Expenses 34 2657.39 2269.55
Provisions 35 29.36 190.38
Write offs 36 12.27 128.38
Stripping Activity Adjustment 719.54 (65.34)
Other Expenses 37 841.29 715.23
Total Expenses (IV) 16851.29 17875.83
(V) Profit/(Loss)before Exceptional Items and Tax (III-IV) 2955.73 2846.75
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Statement of Consolidated Profit & Loss for the year ended 31st March 2020 (Contd.)
(Rs in Crore)
Note For the year ended
S.No. Particulars
No. 31.03.2020 31.03.2019
(XII) Profit/ (loss) from discontinued operations (After Tax) - -
(X- XI)
(XIII) Profit/(loss) for the Period (IX+XII) 1012.37 1836.97
Attributable to:
Equity shareholders of Parent 1012.34 1837.46
Non-controlling Interest 0.03 (0.49)
(XIV) Other Comprehensive Income
A. Items that will not be reclassified to profit or loss (25.00) (26.61)
Less: Income tax relating to items that will not be 6.30 9.22
reclassified to Profit or Loss
B. Items that will be reclassified to profit or loss
Less: Income tax relating to items that will be
reclassified to Profit or Loss
Total Other Comprehensive Income(XIV) (18.70) (17.39)
(XV) Total Comprehensive Income for the Period (XIII+XIV) 993.67 1819.58
Attributable to:
Equity shareholders of Parent 993.71 1820.20
Non-controlling Interest (0.04) (0.62)
(XVI) Earnings per Equity Share
(1) Basic 5.84 10.60
(2) Diluted 5.84 10.60
Date : 03-10-2020
Place : Hyderabad
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Date : 03-10-2020
Place : Hyderabad
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Notes to the Consolidated financial statements for the year ended 31st March, 2020
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and
underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognized
in the period in which the estimates are revised and in any future periods affected.
E) Formulation of Accounting Policies
Accounting policies are formulated in a manner that result in financial statements containing relevant and
reliable information about the transactions, other events and conditions to which they apply. Those policies
need not be applied when the effect of applying them is immaterial.
In the absence of an Ind AS that specifically applies to a transaction, other event or condition, management
has used its judgement in developing and applying an accounting policy that results in information that is:
a) relevant to the economic decision-making needs of users; and
b) reliable in that financial statements:
(i) represent faithfully the financial position, financial performance and cash flows of the entity;
(ii) reflect the economic substance of transactions, other events and conditions, and not merely the
legal form;
(iii) are neutral, i.e. free from bias;
(iv) are prudent; and
(v) are complete in all material respects on a consistent basis In making the judgement management
refers to, and considers the applicability of, the following sources in descending order:
a) the requirements in Ind ASs dealing with similar and related issues; and
b) the definitions, recognition criteria and measurement concepts for assets, liabilities, income
and expenses in the Framework.
In making the judgement, management considers the most recent pronouncements of International
Accounting Standards Board and in absence thereof those of the other standard-setting bodies that use a
similar conceptual framework to develop accounting standards, other accounting literature and accepted
industry practices, to the extent that these do not conflict with the sources in above paragraph.
The company operates in the mining sector (a sector where the exploration, evaluation, development
production phases are based on the varied topographical and geo-mining terrain spread over the lease
period running over decades and prone to constant changes), the accounting policies whereof have evolved
based on specific industry practices supported by research committees and approved by the various
regulators owing to its consistent application over the last several decades. In the absence of specific
accounting literature, guidance and standards in certain specific areas which are in the process of evolution.
The Company continues to strive to develop accounting policies in line with the development of accounting
literature and any development therein shall be accounted for prospectively as per the procedure laid down
above more particularly in Ind AS 8.
F) Materiality
Management uses judgement of materiality for determining the compliance requirement of the Ind AS.
Management also uses judgment in deciding whether individual items or groups of item are material in the
financial statements. Materiality is judged by reference to the size and nature of the item. The deciding factor
is whether omission or misstatement could individually or collectively influence the economic decisions that
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
users make on the basis of the financial statements. A Transaction is considered material only if it exceeds
Rs.50.00 lakh in each case for the purpose of adjustments for Pre-paid and Prior period items.
2.2 Summary of Accounting Policies:
2.2.1 Revenue recognition
Revenue from Operations is recognised duly adopting the five-step model specified in Ind AS 115 to account
for revenue arising from contracts with customers and requires that revenue be recognized at an amount that
reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or
services to a customer.
The Company exercises judgement, taking into consideration all of the relevant facts and circumstances
when applying each step of the model to contracts with their customers. Further, the Company has adopted
Ind AS 115 using the modified retrospective transition method of adoption.
A. Sale of Goods – Coal and Other Goods:
Sales are recognised when control of the products has been transferred to the customer, being when the
products are delivered to the customer and there is no unfulfilled obligation that could affect the customer’s
acceptance of the products.
Emphasis is also given towards ascertaining the probability of recovery for recognition of the revenue at the
inception of the contract. Revenue from these sales is recognised based on the notified prices, net of the
estimated discounts, rebates, returns and Goods and Service tax.
Revenue is measured at the standalone fair value of the consideration received or receivable (net of accepted
deductions allowed to customers on account of quality of coal) taking into account contractually defined
terms of payment.
The company’s obligation to provide a refund for defects in the products is recognised as a provision. A
receivable is recognised when the goods are delivered as this is the point in time that the consideration is
unconditional because only the passage of time is required before the payment is due.
B. Sale of Electricity
Revenue from generation of electricity is accounted for as per the tariff approved by the Hon. Telangana
State Electricity Regulatory Commission (TSERC). Revenue from sale of Electricity is recognized over time.
C. Rendering of services:
When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue
associated with the transaction is recognised with reference to the stage of completion of the transaction at
the end of the reporting period.
D. Recognition of Interest income:
Interest income is recognized using the effective interest rate method.
E. System of accounting of certain specific claims/revenues:
a. Penalty for short lifting of coal, on termination of contracts, interest on belated payment of coal dues on
realisation.
b. The interest/ Late Payment Surcharge on late payment/ overdue sundry debtors for sale of power is
recognised when no significant uncertainty as to measurability or collectability exists.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
c. Escalation in prices and duties for explosives, equipment and spares supplied on payment.
d. Credit towards Powder factor is accounted as and when recovered from the suppliers of Explosives.
e. Additional claims from contractors on Capital Works when claims are settled, other than subsidiary.
f. Scrap sales are accounted for as and when lifted; and
g. Insurance Claims on receipt.
h. Bonus accrued in respect of OBR contracts on receipt of claims from the contractors as per order terms
for encashment.
i. Fly Ash Utilization Reserve Fund :
Proceeds from sale of Fly ash along-with income on investment of such proceeds are transferred to ‘Fly Ash
Utilization Reserve Fund’ in pursuance of directives from Ministry of Environment and Forests, Government
of India. The fund is utilized towards expenditure on development of infrastructure / facilities, promotion &
facilitation activities for use of fly ash.
2.2.2 Grants from Government:
Government Grants are not recognised until there is reasonable assurance that the company will comply
with the conditions attached to them and that there is reasonable certainty that grants will be received.
Government Grants related to Assets are presented in the Balance Sheet as a deduction from the carrying
amount of the respective asset.
Grants related to income (i.e. grant related to other than assets) are presented as part of statement of profit
or loss.
Government Grants in the form of transfer of Government (assigned) Lands for use are presented at Nominal
Value.
2.2.3 Property, Plant and Equipment:
A. Recognition and measurement:
Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses,
if any. Cost includes expenditures directly attributable to the acquisition of the asset and the initial estimate
of the costs of dismantling and removing the item and restoring the site on which it is located. The Company
has elected to apply the optional exemption to use this previous GAAP value as deemed cost as at 1 April
2015, the date of transition.
The recognition of the Property, plant and equipment is subject to the following principles:
1. Land:
a. Lands are capitalized from the date of taking possession / Award whichever is earlier. Payments made
for Renewal of Leasehold lands are capitalized from the date of payment.
b. Freehold Lands (Patta lands, lands acquired under Land Acquisition Act, 1894, Right to Fair
Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act, 2013 and
Govt. Assigned lands) include cost of acquisition, Compensation, rehabilitation expenses, resettlement
cost and interest up to the date of taking possession.
c. Leasehold Lands (Forest lands) include cost of compensatory land, NPV, afforestation and deforestation
expenditure with regard to acquisition of forest land.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
2. Railway sidings:
Complete track renewals and sleeper renewals on Railway Sidings are capitalised on completion of the
work.
3. Plant & Equipment:
a. Following items are classified as Capital;
i) PVC Armoured Cables of all sizes; and
ii) G.I. Pipes of 2” Dia and above.
b. Expenditure on Rehabilitation of HEMM and other Major Plant and Machinery is treated as Capital
expenditure if such expenditure increases the future benefit from the Asset beyond its previously
assessed standard of performance.
c. Equipment received for Projects under construction/ Mines under development but not installed and
commissioned by the end of the year is shown as Capital Works-in-Progress.
B. Depreciation:
i) Depreciation on other Fixed Assets is provided on written down value method on the assets capitalised
before 01.04.1985.
ii) Depreciation on property, plant and equipment, except freehold land, is provided as per cost model on
straight line basis over the estimated useful lives of the asset as follows as per the Schedule II of the
Companies Act,2013 .However, in case of power plant depreciation rates as stipulated by CERC are
adopted. The estimated useful life of the assets is reviewed at the end of each financial year.
iii) In some cases based on technical evaluation, the management believes that the useful lives given
below best represents the period over which the management expects to use the asset. Hence the
useful lives of the below mentioned assets are lower than the useful lives prescribed under Part C of
schedule II of companies act, 2013:
LHDs 7 Years
SDLs 4 Years
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
iv) Value of leasehold lands is amortised over a period of 10 years or over the lease period whichever is
lower:
- from the date possession in case of fresh leases
- from the date of payment in case of renewal of leases.
v) Freehold Lands used for UG/OC mining Operations are amortized over the Life of the respective Mine/
Project.
C) When parts of an item of property, plant and equipment, with a cost that is significant in relation to the total
cost of the item, have different useful lives, they are accounted for as separate items (major components) of
property, plant and equipment. Subsequent expenditure relating to property, plant and equipment is capitalized
only when it is probable that future economic benefits associated with these will flow to the Company and the
cost of the item can be measured reliably. Repairs and maintenance costs are recognized in the statement
of profit and loss when incurred. The cost and related accumulated depreciation are eliminated from the
financial statements upon sale or disposition of the asset and the resultant gains or losses are recognized in
the statement of profit and loss.
2.2.4 Intangible assets:
Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are
amortized over their respective estimated useful lives on a straight-line basis, from the date that they are
available for use. The estimated useful life of an identifiable intangible asset is based on a number of factors
including the effects of obsolescence, demand, competition and other economic factors (such as the stability
of the industry and known technological advances) and the level of maintenance expenditures required to
obtain the expected future cash flows from the asset.
Cost of ERP software recognized as intangible asset is amortised over a period of 5 years.
2.2.5 Inventory:
A Stock of Coal:
i) Wherever variation between volumetrically measured coal stocks (including washery products) and the
book stocks is more than 5%, the volumetrically measured stock balances are adopted with a reduction
of 5% towards anticipated storage losses.
ii) Closing stock of coal including stock at washeries, coal-in-wagons, washed coal, is valued at lower of
cost and net realisable value.
Closing stock of washery by products viz., rejects, slurry and fines are valued at net realisable value
(shale and stone at nil value)
Coal stock at STPP is valued at weighted Average Acquisition Cost as reduced by the unearned
profit elements viz. Land Adjustment, Fuel Surcharge Adjustment, Preweigh bin charges and Surface
Transport Charges.
iii) The cost of production of respective Under Ground (UG) and Open Cast (OC) mines is considered
as cost of coal for the stocks of respective UG and OC mines. The cost of stock at CHP and other
stocking points is arrived by considering the ratio of admittance of coal from UG and OC mines
during the year. Such cost of production is arrived at excluding borrowing costs, selling and distribution
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Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
costs and administrative overheads etc., to the extent not related to production of coal.
iv) Cost of washed coal is calculated at average cost of production of coal as at (iii) above plus washery
charges adjusted to standard yield, and by deducting NRV of by products from the cost thus arrived.
v) The net realisable value of grade-wise coal (including washed coal, rejects, slurry and fines) is arrived
at on the basis of selling price to power utilities and mark up/ cost plus price wherever applicable less
re-handling charges.
B. Stores & Spares
i) Stores & Spares (including loose tools) are valued at Weighted Average cost.
ii) Suitable Provision for slow, non-moving and obsolescence is provided on review of stores and spares
on annual basis.
C. Other Inventories
Stock of medicines, provisions, stationery and sand are not valued and are charged directly to consumption
on receipt.
2.2.6 Borrowing costs
Borrowings costs directly attributable to acquisition or construction of an asset that necessarily takes a
substantial period of time to get ready for its intended use are capitalised as part of the cost of the asset. All
other borrowing costs are expensed in the period in which it occurs.
2.2.7 Mine Closure, Site Restoration and Decommissioning Obligations:
A. Mine closure Plan:
i) The company’s obligation for land reclamation and decommissioning of structures consists of spending
at both surface and underground mines in accordance with the guidelines from Ministry of Coal,
Government of India.
ii) The company estimates its obligation for Mine Closure, Site Restoration and Decommissioning based
upon detailed calculation and technical assessment of the amount and timing of the future cash
spending to perform the required work. Mine Closure expenditure is provided as per approved Mine
Closure Plan.
iii) The estimates of expenses are escalated for inflation, and then discounted at a discount rate that
reflects the current market assessment of the time value of money and the risks, such that the amount of
provision reflects the present value of the expenditures expected to be required to settle the obligation.
The company records a corresponding asset associated with the liability for final reclamation and mine
closure. The obligation and corresponding assets are recognised in the period in which the liability is
incurred. The asset representing the total site restoration cost as per mine closure plan is recognised
as a separate item in PPE and amortised over the balance project/mine life.
iv) The value of the provision is progressively increased over time as the effect of discounting unwinds;
creating an expense recognised as financial expenses.
v) Further, a specific escrow fund account is maintained for this purpose as per the approved mine
closure plan.
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Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
B. Backfilling of Overburden:
i) In order to comply with the Ministry of Environment & Forest’s stipulation regarding reducing the depth
of the final void of certain opencast mines to 30/35/45 meters from surface, re-handling/dumping over
burden (OB) is to be carried out to reduce the final void as per the MOEF stipulation. The reduction of
the final void can be done either (i) by re-handling the Overburden of the external/ internal dumps or
(ii) by dumping the OB produced from the adjacent/relay projects.
ii) Re-handling of Overburden of the external/internal dumps incurs additional cost which is provided for
.The cost of dumping from the adjacent / relay project is considered as the cost of Overburden removal
of the adjacent/relay project.
iii) The estimation of quantity of Overburden (OB) required to backfill the final void is made by in-house
technical estimation by professionals in Mining, Project Planning Environment fields. Total cost of
Backfilling required is estimated, based on the total quantity to be backfilled in cubic metres at the end
of mine life, at the SCCL weighted average rate of OB Removal of outsourced operations.
iv) The Estimation of Liability and corresponding recognition of Asset, discounting of liability and
depreciation of asset and unwinding of liability etc, shall be as per the procedure mentioned at
accounting policy no 2.2.7.A.(iii) and (iv).
2.2.8 Exploration and Evaluation assets
Exploration expenditure relates to the initial search for deposits with economic potential. Expenditure on
exploration activity is treated as revenue expenditure.
Evaluation expenditure relates to a detailed assessment of deposits or other projects that have been
identified as having economic potential. Capitalisation of evaluation expenditure commences when there is
a high degree of confidence that the Company will determine that a project is commercially viable, that is the
project will provide a satisfactory return relative to its perceived risks, and therefore it is considered probable
that future economic benefits will flow to the Company.
2.2.9 Development Expenditure
A) When proved reserves are determined and development of mines/project is sanctioned, cost is recognised
as assets under construction and disclosed as a component of capital work in progress under the head
“Development”. All subsequent development expenditure is also capitalised. Drilling done for projects under
construction which is capitalised with the project cost under development at average normal cost per metre.
B) The Projects/Mines under development are brought to Revenue, earlier of
i) Either from the month following;
a) The achievement of 25% of the rated production, or
b) Completion of two years after touching the coal OR
ii) from the beginning of the year, wherein the value of production at the average monthly selling price of
the Area is more than the total related expenses of such developed project/ mine.
C) Expenditure incurred on Projects under Construction/Mines under Development is capitalised till such
Projects/Mines are brought to revenue. In case of Long wall / Blasting Gallery (BG) technology Projects, the
expenditure is capitalised up to the date of commissioning of the equipment.
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D) Overheads specifically incurred for the projects under construction were capitalised.
E) Sale value of coal produced by Projects/Mines under construction is credited to Development Account at the
Average Monthly Selling Price for the Mine.
F) Residual Development Expenditure on Mines taken-up for reconstruction is treated as Development
Expenditure of New Reconstruction Projects.
G) On being brought to revenue, the assets under capital work in progress are reclassified as a component
of property, plant and equipment under the nomenclature “Other Mining Infrastructure”. Other Mining
Infrastructure are amortised over the Projects Life as estimated in the FR/latest life, not exceeding 10 years.
2.2.10 Over Burden Removal (OBR) - Stripping Cost:
i) Expenditure on Overburden Removal (Stripping Cost) is charged at Stripping Ratio of the Open Cast projects
irrespective of the Ratio of Actual Removal during the year. Expenditure on OB Removal is booked in the
natural heads. The variance between actual OB Removal expenditure and OB Removal charge as per
Stripping Ratio is shown as OB Removal adjustment account. Interest, Depreciation and Overheads on OB
Removal are treated as period cost and not considered for arriving at OB Removal charge.
ii) The company reviews the Stripping Ratios of all the operating Open Cast Projects with revenue workings
once in three years. In case significant deviation occurs in mining & geological structure, reorganisation and
closure of mines, such review is taken up on occurrence.
iii) Provision for future Overburden Removal is restated at current year cost and difference is taken to profit and
loss account. Advance Action for Overburden removal is valued at weighted average cost.
2.2.11 Investment in Subsidiaries and Joint Ventures:
Investments in subsidiaries and joint ventures are measured at cost.
2.2.12. Foreign Currency Transactions:
a) Monetary items related to Foreign currency transactions remaining unsettled at the end of the year are
reported at the exchange rate at the Balance Sheet date.
b) Profit or Loss on account of exchange differences either on settlement or on restatement is recognised in the
Profit and Loss Account.
c) Foreign currency gains and losses are reported on a net basis.
2.2.13 Income tax:
Income tax comprises current and deferred tax. Income tax expense is recognized in the statement of profit
and loss except to the extent it relates to items directly recognized in equity or in other comprehensive
income.
A. Current income tax
Current income tax for the current and prior periods are measured at the amount expected to be recovered
from or paid to the taxation authorities based on the taxable income for the period. The tax rates and tax laws
used to compute the current tax amount are those that are enacted or substantively enacted by the reporting
date and applicable for the period.
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Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to
set off the recognized amounts and where it intends either to settle on a net basis or to realize the asset and
liability simultaneously.
B. Deferred income tax
Deferred income tax is recognized using the balance sheet approach. Deferred income tax assets and
liabilities are recognized for deductible and taxable temporary differences arising between the tax base of
assets and liabilities and their carrying amount in financial statements.
Deferred income tax asset are recognized to the extent that it is probable that taxable profit will be available
against which the deductible temporary differences, and the carry forward of unused tax credits and unused
tax losses can be utilized.
Deferred income tax liabilities are recognized for all taxable temporary differences. The carrying amount of
deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to
be utilized.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the
period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date.
2.2.14 Employee Benefits:
A. Short-term Benefits
All short term employee benefits are recognized in the period in which they are incurred.
B. Post-employment benefits and other long term employee benefits
I. Defined contribution plans:
Employer’s contribution under Coal Mines Provident Fund Act and Executives Superannuation, Pension
Benefits are defined Contribution Plans and the expenditure/ provision on the above is charged to
statement of Profit & Loss.
II. Defined benefits plans:
a) Gratuity: Gratuity is a defined benefit scheme. The cost of providing benefits is determined using
the projected unit credit method, with actuarial valuations being carried out at each balance sheet
date The retirement benefit obligations recognised in the Balance Sheet represents the present
value of the defined benefit obligations as reduced by the fair value of scheme assets.
b) Leave encashment(Vesting), Monthly Monetary Compensation to dependants of deceased in
mine accidents/ medical unfit/ Low Productive Employees, Post Superannuation Medical Benefit
to executives and non-executives are provided based on actuarial valuation carried out at each
balance sheet date.
c) Re-measurement of the net defined benefit liability, which comprise actuarial gain and losses
considering the return on plan assets (excluding interest) and the effects of the assets ceiling (if
any, excluding interest) are recognised immediately in the other comprehensive income in case
of post-employment defined benefit plans. Net interest expense and other expenses related to
defined benefit plans are recognised in profit and loss.
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d) When the benefits of the plan are improved, the portion of the increased benefit relating to past
service by employees is recognised as expense immediately in the statement of profit and loss.
e) Other employee benefits :
Certain employee benefits namely and Settling Allowance, LTC / LLTC and non-vesting Leave
entitlements are also recognised on the same basis as described above for defined benefit plans.
f) Voluntary retirement compensation is expensed in the year of incurrence.
2.2.15 Provisions, Contingent Liabilities:
Provisions are recognized when the company has a present obligation (legal or constructive) as a result of
a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation
and a reliable estimate of the amount of the obligation can be made.
Where the time value of money is material, provisions are stated at the present value of the expenditure
expected to settle the obligation. All provisions are reviewed at each balance sheet date and adjusted to
reflect the current best estimate. The discount rate is a pre-tax rate that reflects current market assessments
of the time value of money and risk specific to the liability.
Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be
estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of
economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence
or non-occurrence of one or more future uncertain events not wholly within the control of the company, are
also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote.
2.2.16. Financial Instruments:
A) Classification:
The classification of financial instruments depends on the objective of the business model for which it is held.
Management determines the classification of its financial instruments at initial recognition.
B) Initial Measurement:
All financial instruments are recognized initially at fair value. Transaction costs that are attributable to the
acquisition of the financial asset/liability (other than financial assets recorded at fair value through profit or
loss) are included in the fair value of the financial assets/liabilities. While, loans and borrowings and payable
are recognized net of directly attributable transactions costs.
C) Subsequent Measurement:
For the purpose of subsequent measurement, financial instruments of the Company are classified in the
following categories: non-derivative financial assets comprising amortized cost; non derivative financial
liabilities at amortized cost and equity instruments at fair value through Profit and Loss account (FVTPL).
Equity instruments at Fair Value represent Investments in Mutual Funds classified as Current Investments.
a) Non-derivative financial assets:
Financial assets at amortized cost
A financial asset shall be measured at amortized cost if both of the following conditions are met:
i) the financial asset is held within a business model whose objective is to hold financial assets in
order to collect contractual cash flows; and
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Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
ii) the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.
They are presented as current assets, except for those maturing later than 12 months after the
reporting date which are presented as non-current assets. Financial assets are measured initially
at fair value plus transaction costs and subsequently carried at amortized cost using the effective
interest method, less any impairment losses.
Financial Assets at amortized cost are represented by security deposits, cash and cash
equivalents, Trade receivables & similar nature and eligible current and non-current assets.
Non Current assets comprises investments in debentures or bonds quoted, fully paid up, which
are carried at amortized cost.
b) Non-derivative financial liabilities at amortized cost
Financial liabilities at amortized cost represented by trade and other payables are initially recognized
at fair value, and subsequently carried at amortized cost using the effective interest method.
2.2.17: Impairment.
Impairment of Assets (Non-financial assets)
The company assesses at the end of each reporting period whether there is any indication that an asset
may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset.
An asset’s recoverable amount is the higher of the asset’s or cash-generating unit’s value in use and its fair
value less costs of disposal, and is determined for an individual asset, unless the asset does not generate
cash inflows that are largely independent of those from other assets or groups of assets, in which case
the recoverable amount is determined for the cash-generating unit to which the asset belongs. Company
considers individual mines as separate cash generating units for the purpose of test of impairment
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount
of the asset is reduced to its recoverable amount and the impairment loss is recognized in the Statement of
Profit and Loss
Impairment of financial assets (other than fair value)
In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement
and recognition of impairment loss. The Company follows ‘simplified approach’ for recognition of impairment
loss allowance on trade receivable.
The application of simplified approach does not require the Company to track changes in credit risk. Rather,
it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial
recognition.
For recognition of impairment loss on other financial assets and risk exposure, the Company determines
that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has
not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has
increased significantly, lifetime ECL is used. If in subsequent period, credit quality of the instrument improves
such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts
to recognising impairment loss allowance based on 12 month ECL.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
Lifetime ECLs are the expected credit losses resulting from all possible default events over the expected life
of a financial instrument. The 12 month ECL is a portion of the lifetime ECL which results from default events
that are possible within 12 months after the reporting date.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the
contract and all the cash flows that the entity expects to receive (i.e. all shortfalls), discounted at the original
EIR. When estimating the cash flows, an entity is required to consider:
i) All contractual terms of the financial instrument (including prepayment, extension etc.) over the
expected life of the financial instrument. However, in rare cases when the expected life of the financial
instrument cannot be estimated reliably, then the entity is required to use the remaining contractual
term of the financial instrument.
ii) Cash flows from the sale of collateral held or other credit enhancements that are integral to the
contractual terms.
ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/expense
in the statement of profit and loss. The balance sheet presentation for various financial instruments is
described below:
Financial assets measured at amortised cost, contractual revenue receivable: ECL is presented as an
allowance, i.e. as an integral part of the measurement of those assets in the balance sheet. The allowance
reduces the- net carrying amount. Until the asset meets write off criteria, the Company does not reduce
impairment allowance from the gross carrying amount.
2.2.18: Leases:
The Company evaluates at the inception of a contract, whether the contract is, or contains, a lease, if the
contract conveys the right to control the use of an identified Asset. Identification of a lease requires significant
judgment. The Company determines the lease term as the non-cancellable period of a lease together with
the periods covered by an option to extend the lease if the Company is reasonably certain to exercise that
option.
In the absence of the interest rates implicit in the Contracts, the Company adopts incremental borrowing rate
as the discount rate.
Lease liability is initially recognised and measured at an amount equal to the present value of lease payments
to be made during the lease term and corresponding amount is recognised as Right of Use Asset which is
measured at cost.
The lease liability is measured in subsequent periods using the effective interest rate method. The right-of-
use asset is depreciated over the lease term on straightline basis.
The amounts payable in respect of Low Value leases up to Rs.2.00 lakhs/P.M per Identified Asset and the
Short term leases of 12 months or less are fully charged off as expenses of the period.
The Company had adopted Option II of the Modified Retrospective Approach permitted under Clause no
C.5(b) read with C7 and C8 of the Appendix C of the Accounting Standard. Accordingly, the Lease Liability
and corresponding Right of Use Assets are initially recognized at the present value of the future Lease
payments outstanding as on 01.04.2019.
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Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
Continuous Miner
198
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
Additions 427.81 24.83 96.39 20.86 4.48 25.06 - 471.08 2.27 7.94 0.31 - 21.31 1102.34
Deductions/Disposals - -0.09 - -6.92 -3.86 -12.17 -9.72 -407.82 -2.42 -10.29 -0.18 -1149.10 -87.72 -1690.29
As at 31st March 2020 1873.03 117.40 868.61 720.64 1072.63 287.89 65.98 13760.26 24.47 59.79 2.38 5080.81 1465.56 25399.45
199
Accumulated Depreciation:
As at 1st April 2018 304.55 3.48 428.34 89.41 248.52 172.56 34.23 4304.36 11.79 35.49 1.77 2460.39 1032.24 9127.13
Adjustments - - - - - - - - - - - - - -
st
As at 1 April 2018 (Restated) 304.55 3.48 428.34 89.41 248.52 172.56 34.23 4304.36 11.79 35.49 1.77 2460.39 1032.24 9127.13
Charge for the year 143.44 - 56.94 33.67 47.44 0.72 3.98 912.20 1.67 5.09 0.01 377.65 88.15 1670.96
Deductions/Disposals/Transfer - 2.42 - -0.40 -19.79 - -6.72 -403.02 -0.45 -3.03 -0.01 -6.82 -21.47 -464.13
st
As at 31 March 2019 (Restated) 447.99 1.06 485.28 122.68 276.17 173.28 31.49 4813.54 13.01 37.55 1.77 2831.22 1098.92 10333.96
Charge for the year 89.80 - 57.69 30.34 28.01 21.54 4.61 939.93 2.00 5.28 0.12 363.44 85.14 1627.90
Deductions/Disposals/Transfer - - - -6.23 -2.48 -12.18 -4.15 -402.93 -2.41 -10.22 -0.18 -3.83 -87.72 -532.33
st
As at 31 March 2020 537.79 1.06 542.97 146.79 301.70 182.64 31.95 5350.54 12.60 32.61 1.71 3190.83 1096.34 11429.53
Provision for Impairment
31st March 2019 - - - 10.94 1.09 3.62 - 2.64 - - - 34.11 31.29 83.69
st
31 March 2020 - - - 11.57 1.21 4.64 - -0.01 - - - 34.11 31.84 83.36
Net Carrying Amount
As at 31st March 2020 1335.24 116.34 325.64 562.28 769.72 100.61 34.03 8409.73 11.87 27.18 0.67 1855.87 337.38 13886.56
st
As at 31 March 2019 997.23 91.60 286.94 573.08 794.75 98.10 44.21 8880.82 11.61 24.59 0.48 3364.58 401.76 15569.75
99th Annual Report & Accounts for the year 2019-2020
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
4.1 CWIP includes interest on borrowings from Power Finance Corporation for construction of STPP of Rs. 0.00
Crore (Up to Previous Year: Rs. 85.59 Cr.)
4.2 CWIP includes interest on borrowings from SBI for Solar power plants Rs. 4.36.00 Crore (Up to Previous
Year: NIL)
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
5.A.1 : Option II of Modified Retrospective approach is adopted for transitional adjustments as on 01.04.2019.
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Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
NOTE - 6: INVESTMENTS
(Rs. in Crore)
As at As at
Particulars
31.03.2020 31.03.2019
1. Non - Current
(A) Investment in Equity instruments
Unquoted, fully paid-up Shares 0.01
-14,750 Laxmi Porcelains Ltd of Rs.10/- each 0.01
Less: Provision for Diminution in the value of Investments 0.01 - 0.01 -
Investments in Co-operative Societies
1,86,214 Singareni Collieries Co-operative Central Stores
Ltd of Rs.10/- each 0.19 0.19
Investment in Joint Venture
4,900 shares of APMDC-SCCL Suliyari Coal Co. Ltd. of
Rs.10/- each(Rs.49000)
Less: Provision for Diminution in the value of Investments
in JV ( Rs.49,000) - -
(B) Investments in debentures or bonds
Quoted, fully paid-up
(i) 10,000 - 9.75% 1000.00 1000.00
APPFC Power Bonds (Series 2/2012) of
Rs.10 Lakh each.
(ii) 8,000 - 9.95% APCPDCL Power Bonds 800.00 800.00
(Series-1/2014) of Rs.10 Lakh each.
(iii) 7020 – 10.32% APPFCL Power Bonds (Series 702.00 -
1/2019 of Rs. 10 Lakh each)
TOTAL 2502.19 1800.19
2. Current
Investment in Mutual Funds
Investment in IDBI Liquid Fund (2006125.747 units @ - 401.82
Rs.2002.9905 NAV/unit)
Investment in SBI Liquid Fund (533.593 units @ - 0.16
Rs.2928.5700 NAV/unit)
Investment in Baroda Liquid Fund (174795 units @ 40.02 0.00
Rs.2289.53 NAV/unit)
40.02 401.98
Particulars As at As at
31.03.2020 31.03.2019
Aggregate of Quoted investments 2542.02 2201.98
Aggregate of Unquoted investments 0.21 0.21
Aggregate of Diminution provided 0.02 0.02
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
6.1. 10000 Nos. of APPFC Power Bonds (Series 2/2012) @ Rs.10 Lakh each were pledged with State Bank of
India as security for obtaining Bank Guarantee of Rs.176.32 Crore and Rs.641.20 Crore for submission to
GOI as Performance Guarantee against allotment of Naini Coal Block and New patrapara Coal Mine blocks
respectively. The Bank Guarantees are valid up to 12.10.2020 and 19.04.2021 respectively.
6.2 750 Nos of TSSPDCL Bonds (Series-1/2014) were pledged for obtaining BG limit of Rs.50 Crore with State
Bank of India for obtaining BGs for submission to SECI, New Delhi against Viability Gap Funding(VGF)
scheme of Solar Power Projects. Against this BG limit, a BG for an amount of Rs.27.00 Crore was obtained
as on the reporting date and submitted to SECI, New Delhi, which is valid up to 29.12.2022.
NOTE - 7: LOANS
(Rs. in Crore)
As at As at
Particulars
31.03.2020 31.03.2019
Non Current
- Unsecured, considered good
- Deposit with LIC 2552.38 2030.76
- Security Deposits 109.61 38.81
TOTAL 2661.99 2069.57
Current
- Security Deposits 99.49 154.42
- Advances to Staff 81.55 73.23
TOTAL 181.04 227.65
7.1 Deposit with LIC represent amount parked in the Employees Terminal Benefits (ETB) scheme including
accrued interest thereon. The Funds are to be utilised for depositing of contributions to Gratuity Trust and
payment of other Terminal benefits by the Company.
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Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
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Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
12.2 During the year, against the Coal dues, M/S. APGENCO has issued Bills receivable for an amount of
Rs.951.86 Crore, which were discounted with Banks (ICICI/SBI/HDFC). As per the covenants of the Bills
discounting arrangements, the Company has to indemnify the Bankers in case of dishonour of the Bills of
Exchange by M/s APGENCO on the respective due dates. The dues from coal customers presented above
are net of the bill discounting proceeds of Rs.918.03 Crore. (Refer Note No:39.4.C.3).
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Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
E The company has only one class of shares referred to as equity shares having par value Rs.10/-.
As at As at
Name of the Shareholder 31.03.2020 31.03.2019
No. of Shares % Held No. of Shares % Held
Government of Telangana 88,55,99,147 51.10 88,55,99,147 51.10
Government of India 84,75,60,000 48.90 84,75,60,000 48.90
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Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
209
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
(iii) The Outstanding amount of Rs.998.29 Crore (including interest of Rs.19.63 Crore) outstanding as on
31.03.2020 is repayable in 33 quarterly installments of Rs.26.88 Crore each. Rate of Interest payable
on this loan as below:
Rate of Loan Amount Rate of Loan Amount Rate of Loan Amount
Interest Rs in Crore Interest Rs in Crore Interest Rs in Crore
8.31% 1.38 9.00% 3.90 9.72% 413.84
8.38% 10.35 9.08% 7.12 9.75% 17.56
8.50% 15.16 9.25% 1.47 9.89% 2.60
8.55% 35.64 9.26% 3.84 10.06% 1.96
8.60% 21.52 9.29% 3.31 10.10% 6.51
8.69% 4.47 9.43% 17.23 10.11% 1.17
8.71% 7.13 9.46% 7.65 10.12% 3.22
8.73% 8.57 9.50% 120.65 10.14% 5.93
8.86% 8.99 9.55% 44.40 10.18% 5.02
8.87% 7.03 9.59% 2.18 10.25% 2.61
8.93% 17.74 9.60% 15.53 10.43% 7.62
8.97% 8.23 9.66% 6.16 10.47% 5.17
8.99% 13.01 9.68% 112.78
19.3 Loan From SBI for setting up of 300 MW Solar power plants at various areas for an amount of Rs.951.00
Crore from SBI is secured by first charge on all the present and future movable & immovable assets of the
Solar power plants. During the year, an amount of Rs.224.00 Crore was drawn against the sanction amount.
The interest rate applicable on the loan is 8.49%p.a with interest reset on yearly basis. The interest on the
loan drawn during the year of Rs.4.55 Crore is included in the carrying amount of the loan.
19.4 Loans payable on demand from Banks, represent the Demand loans availed from Bank of Baroda, Masab
Tank, Hyderabad of Rs.72.00 Crore (against Pledge of FDR of Rs.80.00 Crore), Andhra Bank, Kothagudem
Rs.152.50 Crore (against Pledge of FDR of Rs.170.00 Crore), and Yes Bank, Somajiguda, Hyderabad of
Rs.27.00 Crore (against Pledge of FDR of Rs.30 Crore). The Interest accrued of Rs.5.22 Crore and Rs.0.26
Crore on the loans from Andhra Bank and Yes Bank and not paid are added to the Loan amounts and
presented as carrying amounts as on 31.03.2020 .
19.5 Cash Credit and Special Overdraft Account - Secured by first charge in favour of participating banks ranking
pari-passu on the stocks & receivables and other Current Assets.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
21.1 The Company has availed the Moratorium allowed on term loans as per the RBI circular DOR No.BP.
BC.47/21.04.048/2019-20 Dt. March 27, 2020 against the payment of instalments due on 15.04.2020. Hence,
the instalments due on 15.04.2020 were not included in the above current maturities of Long Term Debt.
21.2 The above presented amount of Current maturities of Long term Debt represent the 3 instalments payable
in the year 2020-21 (excluding Moratorium availed instalments due on 15.04.2020) in respect of term loans
from PFC & PFC-REC of Rs. 248.75 Crore and Rs. 83.88 Crore respectively. (Previous Year Term Loans
from PFC & PFC-REC of Rs.331.67 Crore and Rs.107.54 Crore respectively).
21.3 Further, consequent to availment of Moratorium as stated above, the Interest accrued but not due on the
term loans as on 31.03.2020 amounting to Rs. 80.85 Crore was added to the carrying amounts of the
respective principal amounts of Term Loans (Non Current) as on 31.03.2020 (being an adjusting event after
the Reporting Date as per Ind AS 10).
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Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
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Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
of revised EC is under active progress for MNG OC II Extn with similar stipulations proposed in the
Revised Mining Plan. For the other 4 projects, EC is yet to be applied and would be addressed in a
phased manner in the future years.
iv) During the Year 2019-20, the provision for backfilling is made for 9 mines only as against 11 mines (i.e.
excluding the above two OC Mines for which revised EC is obtained /approval is anticipated shortly).
The quantity of OB required to backfill the void is considered as per the earlier Mining Plan / EC,
wherever applicable, since the Final Voids are proposed as water bodies for 4 Mines and sequential
dumping for one Mine in the Revised Mining Plans.
v) In respect of the MNG OC and MNG OC II Extn, the existing provision of Rs 200.76 Crore Rs. 971.45
crore respectively (net of Site restoration Assets ) as on 01.04.2019 is continued in the books of
account since the revised Mining Plan / EC mandates certain statutory compliances for maintenance
of final void as water body by providing adequate engineering interventions for sustenance of aquatic
life.
Accordingly, the charge to Profit & Loss account towards Backfilling obligation (including depreciation
of site restoration Assets) for the year 2019-20 was lower by Rs 228.91 Crore (MNG OC - Rs.90.86
Crore and MNG OC II Extn - Rs 138.05 Crore respectively ).For crystallization of liability as per the
revised stipulations, scientific studies / consultancy are proposed to be outsourced to experts in the
relevant field in view of lack of precedence in SCCL. Necessary withdrawals of provision will be made
accordingly in due course.
vi) Further, in respect of SRP OC II and GK OC Projects, the provision for backfilling was reviewed
adopting the Revised Mine lives as proposed by Project Planning Department. Consequent to this,
there is decrease in the provision of backfilling by Rs 301.37 Crore out of which an amount of Rs 184.38
is adjusted against the carrying amount of site restoration cost asset and an amount of Rs.116.98
Crore (excess of carrying amount pertaining to SRP OC II Project ) is taken to P&L account. Due to
the downward revision of provision and corresponding site restoration cost asset, there is a decrease
in the current year charge towards unwinding costs and deprecation of corresponding site restoration
assets totalling to Rs 80.07 Crore. Further, there would be decrease in the unwinding of discount by
8% and depreciation of the site restoration cost assets till the end of life of the respective mine.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
iv) Provision for Mine closure plan is made for 18 OC and 28 UG mines against 20 OC and 29 UG Mines.
During the year Rs.118.03 Crore (including Rs.48.83 Crore of interest accrued) was deposited in
designated escrow accounts. The cumulative Deposit as on 31.03.2020 is Rs.917.92 Crore (including
accrued interest of Rs.132.06 Crore net off TDS).
v) Against the deposits for MCP held in the escrow accounts as on the reporting date, an amount of
Rs.57.44 Crore was released provisionally by Coal Controller during June and July 2020 (released
after the reporting date). This amount is 50% of the claimed amounts including interest on Mine closure
expenditure claims in respect of 17 Mines for the years from 2013-14 to 2017-18 submitted by the
Company. Pending scrutiny and verification by the technical committee of Coal Controller, as this
amount is only adhoc amount, no receivable is recognised in the accounts as on the reporting date.
Further, pending Assessment of Mine Specific actual progressive/final mine closure expenditure, no
adjustments in Mine closure provisions and corresponding Assets are made in the accounts of FY
2019-20.
22.4 Provision for Remediation & Community Resource Augmentation Plans(RP &
NCRAP)
(i) In pursuance of notification vide S.O.804 (E), dated 14.03.2017 issued by MoEF&CC, the Company
had submitted proposals for obtaining Environment Clearances involving 20 projects falling under
the EC violation category. As per the ToRs issued by MoEF&CC, EMPs comprising of Remediation
Plan and Natural & Community Resource Augmentation Plans (RP & NCRAP) corresponding to the
ecological damage assessed and economic benefits derived due to violation are to be prepared.
Accordingly, EMPs were prepared for two proposals viz., Cluster of GDK-1&3, 2&2A and 5 Inclines and
JVR OC-1 Expansion projects. EAC recommended activities with Rs.2.77 Crore for implementation
of RP & NCRAP for Cluster of GDK-1&3, 2&2A and 5 Inclines and the RP & NCRAPs for JVR OC-1
Expansion project is submitted to MoEF&CC for an amount of Rs.26.26 Crore.
(ii) The estimated liability towards the cost of implementation of RP & NCRAP of Rs.86.71 Crore (being the
cost assessed in the plans already submitted and amounts equivalent to 3% of Capital investment cost
towards damage assessment and 3% of economic surplus generated for other Projects) is provided for
in the current year.
(iii) Considering the specific nature of the expenditure, the Company has classified and disclosed as
Exceptional item as per Para no 9.6 of Guidance Note issued by ICAI on Division II – Ind AS Schedule
–III to the Companies Act, 2013.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
22.6 Royalty on Closing Stock of Coal at Mines/CSPs amounting to Rs.48.35 Crore was not transacted in the
Books (Previous year Rs. 18.05.Crore )
22.7 CPRMS (NE): As per the terms of NCWA X wage agreement concluded in the year 2017-18, the Company
has to contribute an amount of Rs.18,000/- per employee on roll as on 01.07.2016 to the Contributory Post
Retirement Superannuation Medical Scheme (Non-Executives).The incremental actuarial liability against
this obligation amounting to Rs.7.91 Crore has been provided for in the books of account for the current year
and the total provision made up to 31.03.2020 amounted to Rs.106.96 Crore. (PY Rs.99.05 Crore).
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Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
(A) Coal:
1. Turnover (Gross) 18634.47 20756.37
2. Adjustments for Variable Consideration:
i) Penalty for Short lifting of Coal 1.46 (0.02)
ii) Bonus for Supply of Coal 34.26 39.21
iii) Provision for Shale/ Stone & Grade
Variance 80.20 (84.13)
115.92 (44.94)
18750.39 20711.43
Less : Statutory Levies:
Royalty 1687.16 1841.00
GST Compensation Cess 2261.81 2502.72
3948.97 4343.72
14801.42 16367.71
Less: Transfer to Development 74.06 28.28
Net Sales – Coal (A) 14727.36 16339.43
(B) Sale of Power 4126.76 3483.07
(C) Income from Services
Consultancy Services 2.79 1.96
(D) Other Goods 28.64 21.38
TOTAL (A+B+C) 18885.55 19845.84
26.1 The Gross Turnover of Coal presented above is net of Goods & Service Tax (GST)
26.2 Sale of Power presented above includes net revenue of Rs.100.51 Crore recognised as per Order issued by
Hon’ TS ERC dt 28.08.2020 for Truing up of Tariff petition for the billing periods 2016-17 to 2018-19 (Income
of Rs.105.01 Crore) and Revision petition for the billing periods 2019-20 to 2023-24 (refund of Rs.4.50 Core
for FY 2019-20),being an adjusting event in pursuance of the provisions of Ind AS 10 – ‘Events After the
Reporting Period’.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
Disaggregated Revenue Information as per Ind AS 115 – “Revenue from Contracts with
Customers”:
(Rs. in Crore)
Particulars 2019-20 2018-19
Types of goods or service
- Coal 14727.36 16339.43
- Power 4126.76 3483.07
- Others 2.79 1.96
- Other goods 28.64 21.38
Total Revenue from Contracts with Customers 18885.55 19845.84
Types of Customers for coal
- Power sector 11985.02 13011.59
- Non Power Sector 2742.34 3327.84
Types of Customers for Power 4126.76
- Electricity distribution company 3483.07
Types of Customers for Services
- Consultancy 2.79 1.96
Types of Customers for other goods
- Other goods 28.64 21.38
Total Revenue from Contracts with Customers 18885.55 19845.84
Types of Contracts of Coal
- Fuel Supply Agreements 13792.94 13559.77
- E Auction/E Linkage 468.96 709.38
- Others 465.46 2070.28
Types of Contract for Power
- Power Purchase Agreement 4126.76 3483.07
Types of Customers for Services
- Others 2.79 1.96
Types of Customers for other goods
- Other goods 28.64 21.38
Total Revenue from Contracts with Customers 18885.55 19845.84
Timing of Goods or Service
- Goods transferred at a point in time (Coal) 14727.36 16339.43
- Goods transferred over time (Power) 4126.76 3483.07
- Goods transferred at a point in time (Other goods) 28.64 21.38
- Services transferred at a point in time - -
- Services transferred over time (services) 2.79 1.96
Total Revenue from Contracts with Customers 18885.55 19845.84
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
27.1 Income from Mutual Funds includes an amount of Rs.0.02 Crore Fair Value adjustment as on 31.03.2020
recognised through Profit & Loss Account (FVTPL) (PY Rs. 1.33 Cr).
27.2 Provisions written back include withdrawal of Backfilling provision on review of Mine lives of Rs.135.27
Crore, withdrawal of provision made for Idle Freight claims in FY 2018-19 on settlement of the claims of
Rs.5.69 Crore, withdrawal of Provision made in the earlier years towards Bad& doubtful debts on write off
of the Debts on current year of Rs.4.21 Crore and Misc.credits/claims taken to Company’s account Rs.5.39
Crore (Previous year Rs.9.08 Crore) .
27.3 Miscellaneous Receipts for the current year include sale proceeds of scrap/waste Rs. 24.24 Crore (previous
year Rs.24.09 Crore), Penalties recovered from contractors & suppliers Rs.29.20 Crore (previous year
Rs.32.13 Crore), Handling charges collected from employees and Contractors on the goods sold on sale
account RS.24.84 Crore (Previous year Rs.1.37 Crore) and E-auction service charges Rs.5.82 Crore
(previous year Rs.10.78 Crore).
27.4. No Subsidy for Sand Stowing works for FY 2019-20 is recognised as the CCDAC, Ministry of Coal has not
approved the claims submitted in 2017-18 consequent to revocation of Stowing Excise duty in GST regime.
However, subsidy of Rs.5.02 Crore towards certain protective works approved by CCDAC and Rs.3.37 Crore
being excess of capital grants over the carrying amount of the Assets are recognised as Subsidy Income
(Revenue) during the current year.
220
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
221
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
35.1 Provision for Doubtful Debts/advances includes an amount of Rs.161.50 Crore provided towards Expected
credit Loss on the Late Payment Surcharge (LPS) on power dues recognised in FY 2017-18 on accrual
basis as there is significant uncertainty in collection since TS Transco has been making repeated requests
for waiver of the same.
36.1 Bad and doubtful debts written off in FY 2018-19 represent the claims for Sand stowing subsidy and protective
works for the year 2017-18 recognized on accrual basis but not approved by CCDAC, Ministry of Coal due
to revocation of Stowing excise duty in GST regime.
36.2 Bad Debts Written-off in FY 2019-20, represent dues of Rs.4.21 Crore towards Rent, Electricity & Water
supply charges.
36.3 Assets Written-off of Rs.6.45 Crore includes write-off of Obsolete Stores Rs.2.28 Crore (PY 5.66 Crore). The
balance amount represents the write-off of carrying amount of PPE, Other Fixed Assets owing to surveyed
off assets for obvious reasons and Assets not useful/returnable on closure of mining operations.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Notes to the Consolidated financial statements for the year ended 31st March, 2020 (Contd...)
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
NOTE – 39
ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS (CONSOLIDATED)
FOR THE YEAR ENDED 31st MARCH, 2020.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(b) Measured at amortized cost and for which fair values are disclosed in the Financial
statements:
(Rs. in Crore)
st st
Financial assets and liabilities measured As on 31 March 2020 As on 31 March 2019
at amortized cost for which fair values
Level-I Level-II Level-III Level-I Level-II Level-III
are disclosed at 31st March, 2020
Financial Assets at FVTPL
Loans 2843.03 - - 2297.22
Others 1299.20 - - 1837.76
Trade receivables 9480.31 - - 5362.92
Cash & cash equivalents 1102.49 - - 740.36
Other Bank Balances 288.58 - - 1877.25
Investments 2502.19 - 1800.19 -
Financial Liabilities
Borrowings 4122.04 - - 3855.45
Trade payables 768.09 - - 1007.18
Other Financial Liabilities 2039.96 - - 1819.31
Level-I : Level-I hierarchy includes Financial Instruments measured using quoted prices
Level-II : The fair value of Financial Instruments that are not traded in an active market is determined using valuation
techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all
significant inputs required to fair value an instrument are observable, the instrument is included in level-II. Investments other
than investments in Joint Ventures/Subsidiary included in Level-II.
Level-III: If one or more of the significant inputs is not based on observable market data, the instrument is included in level-III.
This is the case for unlisted equity securities, bonds, borrowings, security deposits and other liabilities taken included in level-III.
(d) Fair values of Financial Assets and Liabilities measured at Amortized cost
ã The carrying amounts of trade receivables, short term deposits, cash and cash equivalents,
trade payables are considered to be the same as their fair values, due to their short-term
nature.
ã Other Financial Assets accounted at Amortized Cost are not carried at Fair Value only if same
is not material.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
ã The Company considers that the security deposit does not include a significant financing
component. The milestone payments (security deposits) coincide with the company’s
performance and the contract requires amounts to be retained for reasons other than the
provision of finance. The withholding of a specified percentage of each milestone payment
is intended to protect the interest of the company, from the contractor failing to adequately
complete its obligations under the contract. Accordingly transaction cost of Security deposit
is considered as fair value at initial recognition and subsequently measured at amortised cost.
Significant Estimates:
The Fair Value of Financial Instruments that are not traded in an active market is determined using
valuation techniques. The Company uses its judgment to select a method and makes suitable
assumptions at the end of each reporting period.
Credit Risk Cash and Cash equivalents, Ageing analysis Regular monitoring and review
trade receivables financial asset by senior management and audit
measured at amortized cost committee
Liquidity Risk Borrowings and other liabilities Periodic cash flows Availability of committed credit
lines and borrowing facilities
Market Future commercial transactions, Cash flow forecast Regular monitoring and review
Risk-foreign recognized financial assets and sensitivity analysis by senior management and audit
exchange liabilities not denominated in INR committee.
Market Risk- Cash and Cash equivalents, Cash flow forecast Regular monitoring and review
interest rate Bank deposits, Mutual Funds, sensitivity analysis by senior management and audit
Investments in Bonds committee
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
A. Credit Risk:
Credit risk arises from Cash and Cash Equivalents, Investments carried at amortized cost and
Deposits with Banks and Financial Institutions, as well as including outstanding receivables.
Credit risk management:
Macro - economic information (such as regulatory changes) is incorporated as part of the Fuel
Supply Agreements (FSAs), Power Purchase Agreements (PPAs) and e-auction terms.
Fuel Supply Agreements:
As contemplated in and in accordance with the terms of the New Coal distribution Policy(NCDP),
we enter into legally enforceable FSAs with our customers or with State Nominated Agencies that
in turn enters into appropriate distribution arrangements with end customers. Our FSAs can be
broadly categorized into:
FSAs with customers in the power utilities sector, including State power utilities, Private Power
Utilities (“PPUs”) and Independent Power Producers (“IPPs”);
FSAs with customers in Non-Power Industries (including captive power plants (“CPPs”)); and
FSAs with State Nominated Agencies
Power Purchase Agreement:
SCCL is operating 2X600 MW Thermal Power Project (STPP) .To secure guarantee of purchase of
power and certainty of revenue stream, legally enforceable power purchase agreement has been
entered with Southern Power Distribution Company of Telangana Ltd(TSSPDCL) and Northern
Power Distribution Company of Telangana Ltd(TSNPDCL) on 18.01.2016 for 25 years from the
date of COD of the project i.e., 02.12.2016.
E-Auction Scheme:
The E-Auction scheme of coal has been introduced to provide access to coal for customers who
were not able to source their coal requirement through the available institutional mechanisms under
the NCDP for various reasons, for example, due to a less than full allocation of their normative
requirement under NCDP, seasonality of their coal requirement and limited requirement of coal
that does not warrant a long-term linkage. The quantity of coal to be offered under E-Auction is
reviewed from time to time by the MOC.
Provision for Expected Credit Loss: The Company provides for expected credit risk loss for
doubtful/ credit impaired assets, by lifetime expected credit losses (Simplified approach).
Expected Credit Losses for Trade Receivables under Simplified Approach:
(Rs. in Crore) (As on 31.03.2020)
Due for below Due for above Due for more than 3 years
Ageing Total
6 months 6 months and Credit Impaired dues
Gross carrying amount 5822.10 3658.22 507.40 9987.71
Expected loss rate - - 100% 5.08%
Expected credit losses - - 507.40 507.40
(Loss allowance provision)
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
B. Liquidity Risk:
Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents and the
availability of funding through an adequate amount of committed credit facilities to meet obligations when
due. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in
funding by maintaining availability under committed credit lines.
Management monitors forecasts of the company’s liquidity position (comprising the undrawn borrowing
facilities below) and cash and cash equivalents on the basis of expected cash flows.
Financing arrangements
The company had access to the following undrawn borrowing facilities at the end of the reporting period.
(Rs. in Crore)
Exposure to risk As on 31 March 2020 As on 31 March 2019
Interest bearing borrowings :
On demand : - -
Less than 365 days - -
More than 365 days:
(PFC-REC Loan2) 61.44 101.34
SBI Term Loan (Solar) 722.45 -
Total 783.89 101.34
Note: Cash Credits & Special Over drafts not considered.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
C. Market Risk :
a) Foreign currency risk :
The Company is not substantially exposed to the Foreign currency risk. The Foreign
currency outflows represent the purchase of equipments and spares. To minimize the
Foreign currency risk the Company’s policy is to make payment of the major portion of the
contract price in advance/ LCs.
b) Cash flow and fair value interest rate risk: Ind AS 107(33)(a) :
The company’s main interest rate risk arises from bank deposits with change in interest rate
exposes the company to cash flow interest rate risk. Company’s policy is to maintain most of
its deposits at fixed rate.
c) Equity instruments in Mutual Funds are subjected to market risk. The Company’s policy is to
invest in Mutual Funds in the debt based instruments for short periods only to minimize the
exposure to the market risk.
Capital Management
The company being a Government Entity manages its capital as per the guidelines of Department of
Investment and Public Asset Management under Ministry of Finance.
Capital Structure of the company is as follows
(Rs. in Crore)
Particulars As at 31.03.2020 As at 31.03.2019
Equity Share capital 1733.20 1733.20
Long term debt 3857.20 3843.08
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Settling Allowance
Leave Travel Concession
Monthly Monetary Compensation(MMC)
CPRMS(E) / CPRMS(NE)
iii) Total liability as on 31.03.2020 based on valuation made by the Actuary, details of which are
mentioned below is Rs. 4651.13 Crore (Previous Year Rs.4140.70 Crore).
(Rs. in Crore)
Opening Actuarial Incremental Closing Actuarial
Particulars Liability as on Liability during Liability as on
01.04.2019 the Year 31.03.2020
Gratuity 2750.76 381.37 3132.13
Leave Encashment (Vesting) 614.47 19.64 634.11
Leave Entitlements (Non-Vesting) 266.39 21.16 287.55
CPRMS(E) / (NE) 241.94 58.70 300.64
Monthly Monetary Compensation 151.38 4.30 155.68
Settling in Allowance 55.46 19.00 74.46
Leave Travel Concession 60.30 6.25 66.56
Total 4140.70 510.42 4651.13
a) Gratuity:
Gratuity payable to eligible employees is administered by a separate Trust. The Liability towards
Gratuity as on each reporting date is made on the basis of Actuarial Valuation. The actuarial liability
(as certified by the Actuary) towards Gratuity net of Funds maintained in the Trust (Unfunded
Liability) amounted to Rs.3132.13 Crore as at 31.3.2020 (Previous Year Rs.2750.76 Crore).
b) Leave Encashment (Vesting):
Leave Encashment benefits which are encashable in service or on retirement (i.e. vesting) payable
to employees, at the end of the year, are recognized based on the Actuarial Valuation. The actuarial
liability (as certified by the Actuary) towards leave entitlement (vesting) and the outstanding amounts
towards leaves encashed during the year amounted to Rs. 634.11 Crore as at 31.3.2020 (Previous
Year Rs.614.47 Crore).
c) Leave Entitlements (Non-Vesting):
Leave entitlements which are non-encashable in service or on retirement or on resignation (i.e.
Non-Vesting) are recognized on Actuarial Valuation from 2018-19 onwards with retrospective
application as specified in Ind AS 8 and actuarial liability as at 31.3.2020 stood at Rs.287.55 Crore
(Previous Year Rs.266.39 Crore).
d) Contributory Post Retirement Medicare Scheme: CPRMS (E) & (NE)
The actuarial liability (as certified by the Actuary) for Contributory Post Retirement Medicare Scheme
for executives & their spouses and company contribution to the Contributory Post Retirement
Medicare Scheme for Non-Executives amount to Rs. 300.64 Crore as at 31.3.2020, as against
231
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(Rs. in Crore)
As at As at
Changes in Fair Value of Plan Assets
31.03.2020 31.03.2019
Fair Value of Plan Asset at beginning of the period 2067.50 2227.76
Interest Income 118.35 167.85
Employer Contributions - 252.50
Benefits Paid (943.95) (580.58)
Return on Plan Assets excluding Interest income - (0.03)
Fair Value of Plan Asset as at end of the period 1241.90 2067.50
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(Rs. in Crore)
As at As at
Statement showing reconciliation to Balance Sheet 31.03.2020 31.03.2019
Fund Liability 4374.03 4818.25
Fund Asset 1241.90 2067.50
Un Funded Status 3132.13 2750.75
(Rs. in Crore)
As at As at
Expense Recognized in Statement of Profit / Loss
31.03.2020 31.03.2019
Current Service Cost 155.74 196.12
Past Service Cost - -
Net Interest Cost 200.64 178.02
Benefit Cost (Expense recognized in Statement of Profit/Loss) 356.38 374.14
(Rs. in Crore)
As at As at
Other Comprehensive Income
31.03.2020 31.03.2019
Actuarial (Gain) / Loss on obligations due to change in financial assumption 58.67 25.63
Actuarial (Gain) / Loss on obligations due to unexpected experience (33.67) 1.01
Total Actuarial (Gain) / Loss - 26.64
Return on Plan Asset, excluding Interest Income - (0.03)
Balance at the end of the period - -
Net (Income) / Expense for the period recognized in Other
25.00 26.61
Comprehensive Income
As at As at
Statement showing Plan Assumptions:
31.03.2020 31.03.2019
Discount Rate 6.75% 7.50%
Expected Return on Plan Asset 7.40% 8.25%
Rate of Compensation Increase (Salary Inflation) 6.50% 7.00%
Average Expected Future Service (Remaining Working Life) 14.49 Years 12.84 Years
Average Duration of Liabilities 20.01 Years 21.89 Years
Mortality Table LIC (2006-08) LIC (2006-08)
Ultimate Ultimate
Superannuation at Age 60 Years 60 Years
Early Retirement and Disablement
Gratuity limit Rs.20 lakh Rs.20 lakh
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Mortality Table
As at As at
Age 31.03.2020 31.03.2019
Mortality (Per annum) Mortality (Per annum)
Uniform for all ages 4.04 4.56
(Rs. in Crore)
Statement Showing Benefit Information Estimated Future payments (Past Service)
Year 31.03.2020 31.03.2019
1 984.44 566.30
2 472.22 755.35
3 535.83 725.59
4 557.53 582.79
5 473.15 786.14
6 to 10 1363.74 1720.89
More than 10 years 2495.36 2506.06
Total Undiscounted Payments Past and Future Service 6873.20 7643.12
Total Undiscounted Payments related to Past Service 4447.06 4756.21
Less Discount For Interest 82.10 62.04
Projected Benefit Obligation 4374.03 4818.25
(Rs. in Crore)
Statement Showing Cash Flow Information 31.03.2020 31.03.2019
Current service Cost (Employer portion Only) Next period 154.00 155.26
Interest Cost next period 6.75 7.50
Expected Return on Plan Asset 75.00 167.00
Benefit Cost 950.00 555.00
(Rs. in Crore)
As at As at
Statement Showing expected return on Plan Asset at end Measurement
31.03.2020 31.03.2019
Current liability - -
Non-Current Liability - -
Net Liability 4374.03 4818.25
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(Rs. in Crore)
As at As at
Changes in Fair Value of Plan Assets
31.03.2020 31.03.2019
Fair Value of Plan Asset at beginning of the period Unfunded Unfunded
Interest Income Unfunded Unfunded
Employer Contributions Unfunded Unfunded
Benefits Paid Unfunded Unfunded
Return on Plan Assets excluding Interest income Unfunded Unfunded
Fair Value of Plan Asset as at end of the period Unfunded Unfunded
(Rs. in Crore)
As at As at
Statement showing reconciliation to Balance Sheet
31.03.2020 31.03.2019
Fund Liability 634.08 614.47
Fund Asset - -
Funded Status Unfunded Unfunded
(Rs. in Crore)
As at As at
Statement showing Plan Assumptions:
31.03.2020 31.03.2019
Discount Rate 6.75% 7.50%
Rate of Compensation Increase (Salary Inflation) 6.50% 7.00%
Average Expected Future Service (Remaining Working Life) 14.49 Years 12.84 Years
Average Duration of Liabilities 20.01 Years 21.89 Years
Mortality Table LIC (2006-08)Ultimate
Superannuation at Age 60 Years 60 Years
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
As at As at
Expense Recognized in Statement of Profit / Loss
31.03.2020 31.03.2019
Current Service Cost 124.48 81.32
Net Interest Cost 46.05 49.95
Curtailment in benefits in current year - (51.36)
Actuarial (Gain)/ Loss on obligations due to unexpected adjustments 0.34 0.02
Actuarial (Gain)/ Loss on obligations due to change in financial assumption 9.51 12.95
Benefit Cost (Expense recognized in Statement of Profit/Loss) 180.38 92.88
As at As at
Mortality Table
31.03.2020 31.03.2019
Mortality Mortality (Per
Age
(Per Annum) Annum)
Uniform for all ages 4.04 4.56
(Rs. in Crore)
Statement Showing Benefit Information Estimated Future payments
Year 31.03.2020 31.03.2019
1 76.47 54.84
2 71.30 55.65
3 78.33 65.56
4 87.26 63.09
5 74.93 56.68
6 to 10 284.59 184.38
More than 10 years 310.00 182.08
Total Undiscounted Payments Past and 980.73 698.32
Future Service
Total Undiscounted Payments related to Past Service 681.51 662.28
Less Discount For Interest 47.43 47.81
Projected Benefit Obligation 634.08 614.47
(Rs. In Crore)
As at As at
Statement Showing expected return on Plan Asset at end Measurement
31.03.2020 31.03.2019
Current liability 91.68 110.84
Non-Current Liability 542.40 503.63
Net Liability 634.08 614.47
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
4. Unrecognized items:
4. A. Contingent Liabilities
(Rs. In Crore)
Sl. As on As on
Particulars
No. 31.3.2020 31.3.2019
Claims against the Company not acknowledged as debts:
(i) Demand from Divisional Forest Officer towards NPV for renewal of 14.08 7.91
different mining leases – contested by the company
(ii) Workmen Compensation (cases contested – court) 0.90 0.91
(iii) Motor Accident claims (cases contested – court) 0.37 0.69
(iv) Police Guard (excess man power billed disputed) 2.98 2.98
(v) S C Railways (damages, demurrages etc. disputed) 1.67 1.62
(vi) Water Royalty (billed at Industrial rate disputed) 1.10 1.10
(vii) Vacant Land Tax (Levy contested) 16.06 16.06
(viii) Contractors & Suppliers 323.40 265.61
(ix) Other disputed claims & Legal cases etc. 14.70 28.06
(x) Service Tax demands were raised on OBR contractors by Service 337.64 337.64
Tax Department treating value of free issue explosives and HSD oil
as additional consideration to them. The demands of Service Tax
Department have been contested by the Service Providers. Pending
adjudication of disputed demands, SCCL issued letter of comfort to the
contractors with commitment to reimburse Service Tax, interest and
penalty thereon in case the verdict goes against them.
However, Larger Bench of CESTAT, New Delhi in the case of M/s.
Bhayana Builders (P) Ltd., and others held that value of the goods
and materials supplied free of cost of being neither monetary nor non-
monetary consideration and would be outside the taxable value or the
gross amount charged to Service Tax.
In the appeal filed by M/s. SV Engg. Constructions, to whom comfort
letter was given by SCCL, the Hyderabad Circuit Bench of CESTAT
has given judgment in favour of M/s. SV Engg. Constructions.
Further, in appeals filed by M/s. PLR Projects Pvt. Ltd., M/s Gulf Oil
Corporation Ltd., M/s GRN Construction Pvt. Ltd., M/s. BGR Mining &
Infra Pvt. Ltd. And SV Engg. Constructions, CESTAT, Bangalore has
passed a judgement in favour of the Contractors.
Against the order passed by the CESTAT in the case of M/s Gulf Oil
Corporation Ltd, the Service Tax Department has filed a Civil Appeal in
the Hon’ble Supreme Court. The Supreme Court has pronounced its
judgement on the Civil Appeal stating that material issued free of cost
does not attract service tax (Civil Appeal Nos. 1355-1358 of 2015).
However, as the individual orders for the cases filed by the Contractors
are yet to be received, the service tax liability against the Comfort
Letter is considered as Contingent Liability.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
(Rs. In Crore)
Sl. As on As on
Particulars
No. 31.3.2020 31.3.2019
(xi) (a) Excise Duty demands on quantity disputes. 5.70 8.24
(b) Education Cess and Secondary Higher Education Cess demands 0.78 0.78
raised by Excise Department from March, 2011 to March, 2015
contested by SCCL
(c) Demand for Clean Energy Cess - 0.24
(d) Excise Duty on APGENCO performance Incentive - 10.87
(e) CEC on Closing Stock as on 30.06.2017 (Pre-GST) 223.39 235.30
(xii) Tax Demands from Commercial Taxes Department (including entry 36.16 7.93
tax) which are disputed by SCCL and pending before various appellate
authorities for adjudication.
(xiii) Tax Demands from Income Tax Department which are disputed 372.87 212.58
by SCCL and pending before various appellate authorities for
adjudication.
(xiv) (a) Service Tax demand on TDS Component on Import Services - 0.15
for the period 2008-09 to Sept, 2015 raised by the Service
Tax Department is disputed and pending before CESTAT for
adjudication.
(b) Service Tax demand on Liquidated damages, Penalties etc - 10.95
collected by SCCL for the period from July , 2012 to March ,2017
raised by The Service Tax dept is disputed and pending before
CESTAT, Hyd for adjudication. However, an amount of Rs.10.95
Crs demanded by the Department has been deposited to the
Governments Account under protest.
(xv) Profession Tax: Dy. C.T.O., KGM has been issued a Demand Notice 176.44 176.44
basing on G.O. No. 14897/CT-IV/2004, Dt. 23.02.2013 for arrears
of professional tax recovery from employees and remittance to the
Dept. For the years 1990-91 to 2012-13. Previously it has been kept in
abeyance for NCWA employees of SCCL by the Govt.. As per above
mentioned G.O. Govt. Has rescinded that. Representative Union has
requested CM of Telangana for abolish of Professional Tax for Coal
miners and the same is kept abeyance.
(xvi) Service Tax demand on Liquidated damages, penalties etc., collected - 1.63
by SCCL for the period from April 2017 to June 2017 raised by the
Service Tax Department.
(xvii) Tax Demand on Irregular availment of credit on certain services which 1.66 1.66
are ineligible (services connected to Transmission, Lighting, Canteen,
Railway Siding, Maintenance and Repairs of Building, Laying and
Repairs of Road, Bore well, RO plants, Air ticketing)
(xviii) (a) Claims for additional compensation decided by the Lower Courts 25.82 12.48
in favour pattadars which were contested by the company in
Higher Courts for Acres: 114 ,Guntas 12.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Sl. As on As on
Particulars
No. 31.3.2020 31.3.2019
(b) Claims in respect of suits filed by the Pattadars for additional Not quantifiable Not quantifiable
compensation for Acres: 2369,Guntas 30¼ (Previous year: 5075,
Guntas27¼) contested by the Company and pending in Courts.
(xix) An amount of Rs.13.56 Crore has been charged to M/s. B.G.R. Mining &Infra Pvt. Ltd., towards lead
variation charges and recognised as income during the year 2012-13. As against recovered amount of
Rs.13.56 Crore, an amount of Rs.5.81 Crore was released during the year 2013-14 keeping the Bank
Guarantees for an amount of Rs.7.65 Crore as collateral security. A case has been filed by the contractor
before the Hon’ble XXVI Addl.Chief Judge, CCC, Hyderabad challenging the above recovery.
(xx) Coal pilferage was reported in Financial year 2013-14 involving 12099 Tonnes, valued at Rs.4.04 Crore.
The party made a conditional deposit of Rs.4.37 Crore and the amount is kept under deposits. Pending
enquiry issue is not dealt in the books.
The contingent liability indicated above is excluding interest wherever applicable.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
4.C.1.1 This includes Bank Guarantee of Rs.176.32 Crore, Rs.40 Crore and Rs. 641.20 Crore submitted to
MoC, Government of India as Performance Guarantees against allotment of Naini Coal Block, Odisha,
Penagadapa Coal Block, Telangana, and New Patrapara Coal Mine, Odisha respectively. In addition,
Bank Guarantees worth Rs. 33.84 Crore submitted to M/S. SECI, New Delhi against Solar Power Plant
related works.
4.C.3.1: Out of these, Bills of Exchange worth Rs.240.55 Crore (discounted with ICICI), Rs.210.05 Crore
(discounted with SBI), Rs.200.57 Crore (discounted with HDFC) and Rs.300.69 Crore (discounted
with SBI) have been honoured by M/S. APGENCO on respective maturity dates (i.e. on 10.06.2020,
08.06.2020, 14.08.2020 and 14.09.2020 respectively).
5. Other Information
5.1: Ind AS 115 -Revenue from Contracts with Customers :
Significant judgments & other disclosures
1. Identification of contract :
(A) Coal :
a) Customers: Most of coal produced by the Company is supplied to thermal power plants. Coal
is also supplied to various industries that include, cement, sponge iron & others and also for captive
consumption.
b) Distribution and Marketing Policy: Government of India has issued New Coal Distribution Policy
(NCDP) on October 18, 2007 with an objective to meet the demand of coal from consumers of different
sectors of the economy, both on short term and long term basis, in an assured, sustained, transparent
and efficient manner with built - in commercial discipline. The Company abides by it.
The major types of arrangements / agreements as per NCDP are:
i) Fuel Supply Agreements (FSAs): As contemplated in and in accordance with the terms of the New
Coal Distribution Policy (NCDP), the Company enters into legally enforceable FSAs with customers.
FSAs can be broadly categorized into:
• FSAs with customers in the power utilities sector, including state power utilities, private power
utilities (PPUs) and independent power producers (IPPs);
• FSAs with customers in non-power industries (including captive power plants (CPPs))
• FSAs through linkage route.
• Memorandum of Understanding(MOU)
ii) E-Auction Scheme: The E-Auction scheme of coal has been introduced to provide access to coal
for customers who were not able to source their coal requirement through the available institutional
mechanisms under the NCDP for various reasons, for example, due to a less than full allocation of their
normative requirement under NCDP, seasonality of their coal requirement and limited requirement of
coal that does not warrant a long-term linkage. The quantity of coal to be offered under E-Auction is
reviewed from time to time by the Ministry of Coal, Government of India.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
iii) Shakti: A coal linkage policy named SHAKTI or the ‘Scheme to Harness and Allocate Koyla
(Coal) Transparently in India’ was introduced with an objective to auction long-term coal linkages to
power companies.
This policy award fuel supply agreements to coal plants already holding letters of assurance (LoAs). It
is issued to new consumers on being approved by the appropriate authority, based on recommendation
of a committee constituted. Specific terms & conditions of the LOA are to be complied with within a
stipulated time period for being eligible to enter into
FSA for commencing coal supply.
Thermal plants holding LoAs will be eligible to sign fuel supply pacts under the new policy after ensuring
that all the conditions are met.
Coal linkages would be awarded to state-owned power distribution companies (discoms). These, in
turn, would assign linkages to:
• State or Central power generation companies via allocation, and
• Private units through auction.
Transfer of Title of Goods: Once delivery of Coal have been effected at the Delivery Point by SCCL,
the property / title and risk of coal so delivered stand transferred to the purchaser in terms of this
Agreement. Thereafter SCCL in no way be responsible or liable for the security or safeguard of the
Coal so transferred. SCCL have no liability, including towards increased freight or transportation costs,
as regards missing/diversion of wagons / rakes or road transport en-route, for whatever causes, by
Railways, or road transporter or any other agency.
(B) Power:
Power generated at Thermal Power Plant of the Company (STPP) is supplied to the TSDISCOMS, Telangana
state power distribution companies. A separate power purchase agreement (PPA) is entered by the company
with Electricity Distribution Company for 25 years valid up to 01.12.2041. The terms and conditions of PPA
are as per prevailing Telangana State Electricity Regulatory Commission (TSERC) regulations.
2. Performance Obligation (Transportation, Infrastructure and Logistics):
A) Coal:
a. Following the extraction of coal from a mine/working face, coal is transported to dispatch points
through tipping trucks and conveyor belts. Coal is delivered to the customers from the dispatch points
through rail, road, rope-way or dedicated rail MGR system.
b. All consignments dispatched are weighed either at company owned weighbridges available at SCCL
dispatch points or to the nearest weighbridges owned by the Railways. Sales are either “free on rail”
or “free on road” from the designated dispatch points. Customers may choose the mode of transport
between rail and road. If the dispatch point from the mines is within 20 kilometres, the customers
bear such transportation cost at specified rates as notified by the company from time to time. In
circumstances where the distance from the dispatch point is more than 20 kilometres from the mines,
the customer bears the actual cost of transportation.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
c. The quality of coal delivered / to be delivered conforms to the specifications. The company makes
adequate arrangements to assess the quality and monitor the same to ensure that un-graded Coal
(GCV of less than 2200 Kcal/Kg for non-coking coal) is not loaded into the purchaser’s containers.
d. The company delivers sized coal with size conforming to specifications. SCCL makes reasonable
efforts to remove stones from coal.
e. The Company uses magnetic separators and metal detectors, at its coal handling / loading system at
the delivery point, where the same are already installed.
B) Power:
a. As per PPA, SCCL (STPP) is required to operate the plant as a base load station as per manufacturers
guidelines, applicable grid operating conditions, directions of the TSERC and relevant statutory
provisions as applicable from time to time.
b. SCCL is required to sell the capacity to the TSDISCOMs as per PPA shall, in each settlement period,
be as 85% of the declared capacity(DC) of the plant as determined by TSERC Tariff Regulations issued
from time to time.
c. SCCL is required to follow the SLDC’s directives, to back down, increase or resume generation,
decrease generation at time on a day, provided that such directives are consistent with the technical
limits of facility, Prudent utility practices.
3. Transaction Price:
(A) Pricing of coal:
a. The pricing of Non-Coking Coal is presently based on its Gross Calorific Value w.e.f. 01.01.2012 and
that of Coking Coal & Washery Grade Coal is set on the basis of ash level content. Pricing of coal
for Semi Coking Coal is set on the basis of ash & moisture content level. The coal price is revised
considering the escalation in input cost, inflation and landed cost of imported coal. The final customer
price includes basic price and other charges (Cess, Royalties, GST and others). Around 90% of Coal
is sold under the long-term fuel supply agreements (FSAs) executed between company and the linked
customers. In addition, coal is also sold under E-auction scheme.
b. The Purchaser pays the Base Price of Coal in accordance with the provisions of the Agreement. The
Base Price of Coal is declared by Company from time to time.
c. The “As Delivered Price of Coal” for the Coal supplies pursuant to the Agreement is the sum of Base
Price, Other Charges and Statutory Charges, as applicable at the time of delivery of Coal.
d. Base price/Standalone price means, in relation to a Declared Grade of Coal produced by SCCL, the
Pithead price notified from time to time by the company, as the case may be.
e. Variable Consideration:
i. Annual Contracted Quantity (ACQ): At the inception of the every year the Annual Contracted
Quantity of Coal is agreed which is to be supplied by SCCL and undertaken to be purchased
by the Purchaser from SCCL’s mines and/ or from international sources. For part of Year, the
ACQ is prorated accordingly. If for a Year, the Level of Delivery by SCCL, or the Level of Lifting
by the Purchaser falls below ACQ with respect to that Year, the defaulting Party is liable to pay
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
compensation to the other Party for such shortfall in Level of Delivery or Level of lifting, as the
case may be (Failed Quantity). MOUs are signed for one year and above ACQ quantity.
ii. Performance Incentive: If SCCL delivers Coal to the purchaser in excess of the determined
percent of the ACQ in a particular Year, the purchaser pays SCCL an incentive (Performance
Incentive/ PI).
iii. Adjustment for Grade Variance (Coal Quality Variance): SCCL gives regular credit/debit
notes on account of Grade variance to the extent of difference in the Base Price of Declared
Grade and analyzed Grade of Coal.
iv. Other Charges
Surface Transportation charges: Where Coal is transported by SCCL beyond the distance
of three (3) KMs from pithead to the delivery point, the purchaser pays surface transportation
charges, as notified by SCCL from time to time.
Sizing/Crushing charges: Where Coal is crushed by mechanical means for limiting the top-size
to 100mm, or any other lower size, the Purchaser pays sizing/crushing charges, as applicable
and notified by SCCL from time to time.
Rapid Loading Charges: Where Coal is loaded through rapid loading system, the Purchaser
pays rapid loading charges notified by SCCL from time to time.
Evacuation charges: Recovery of evacuation charges is also done at the specified rate. In all
cases, the entire freight charges, irrespective of the mode of transportation of the Coal supplied,
is borne by the Purchaser.
Additional charges: The Company collects additional charges like additional transport/
rehandling cost, additional charges for coal loaded at specified sidings, Land adjustment, Engine
Shunting charges, Fuel Supply Surcharge, Forest Permit Fee and other elements at the rates
notified from time to time.
In all cases, the entire freight charges, irrespective of the mode of transportation of the Coal
supplied, is borne by the Purchaser.
f. Statutory Charges: The statutory charges comprises royalties, cesses, GST, levies etc. if any,
payable under relevant statute but not included in the Base Price and/or other charges, is payable by
the purchaser. These levies/charges become effective from the date as notified by the Government/
statutory authority.
B) Pricing of Power:
a. The tariff for electricity supplied would be as determined under the tariff regulations of TSERC and
tariff order thereof from time to time. Tariff for sale of electricity would be based on prevailing TSERC
regulations from time to time.
b. Capacity charges are to be approved by the TSERC for each tariff year, to be claimed by SCCL.
c. Variable charges like Coal, Secondary fuel oil are calculated as per agreed formula under PPA and
are shown separately in monthly thermal energy bills. Incentives shall be calculated as per target plant
load factor as specified in Tariff order for 2x600MW Power Plant as a whole.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
4. PAYMENT:
A. Coal :
i. Fuel Supply Agreement - Credit Sales
a) N T P C - Payment is to be received from the Purchaser within three days from the date of
submission of bills. Bills will be raised on daily basis.
b) TSGENCO / APGENCO - Bills will be raised in the first lot from 1st to 7th of the month, second lot
from 8th to 20th and third lot from 21st to the 30th/31st of the month. The Purchaser has to release
the payment within five days from the date of submission of bills (excluding day of submission).
c) KPCL / MSEB - Bills will be raised in first lot from 1st to 10th, second lot 11th to 20th and third lot
from 21st to 30th/31st of the month. Payment has to be received within three days from the date
of submission of bills (excluding day of submission).
d) In addition to the above, SCCL will go for MOUs for the above FSA customers, bridge linkage and
non-bridge linkage power customers for supply of coal on best efforts basis.
ii. E-Linkage - Auction of Linkage (AOL).
The customers without FSA and MOC Linkage are to be participated in the bidding in the open auction.
All the Power and Non-Power customers excluding the above and whose requirement of coal is
more than 10,000 Tons per annum are mandatorily get allotment of coal through auction of linkage
(E-Linkage). MOC has given an option to the customers to participate in AOL bidding or not, if their
annual requirement is 4200 to 10,000 Tons Per Annum. AOL contractors are in the nature of Long
Term Contracts of five years are considered AS FSA customers. Payment is 100% advance against
each sale order. The bidding quantity in the first year which is called as Annual Contracted Quantity
(ACQ) will be considered for the next five years.
iii. E-Auction - These are short term contracts for a period of three months. MOC has fixed maximum
E-Auction quantity is 10% of the total despatch quantity. All the customers’ viz., Power, Non-Power and
FSA, Non-FSA and Open Order customers can participate in the bidding. Payment is 100% advance.
iv. Rail Customers - Long term purchasers and good credit track record are extended credit of one rake
for three bank working days subject to submission of one rake advance amount in the form of Cash
Guarantee or Bank Guarantee. If the customer fails to repay the amount within three days, interest will
be charged equivalent to SBI CC Rate applicable to SCCL.
The Purchaser makes advance payment for a month in three (3) instalments for availing Coal supplies
from SCCL – first (1st) instalment on the first (1st) day of the month, second (2nd) instalment on the
eleventh (11th) day of the month and the third (3rd) instalment on the twenty first (21st) day of the month.
Each of these payment instalments cover the As Delivered Price of Coal for the Coal quantities that
is one-ninth (1/9th) of the QQ concerned. Further, each of these instalments takes into account the
average of Base Prices of Grades. However, the third (3rd) instalment also include the adjustment
amount with regard to the actual quantity of Coal delivered and the quality of Coal vis-à-vis the advance
payment made for the previous month. For the avoidance of any doubt, such adjustment amount also
includes the adjustment of quantity and quality.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
v) Advances received from the customers are reported as customer’s deposits (contract liabilities) unless
the conditions for revenue recognition are met.
vi) Advance payment made by the Purchaser is non-interest bearing, and it changes in accordance with
change in the As Delivered Price of Coal. No significant finance component is included therein.
vii) Bills of Miscellaneous Claims:
• Compensation for short supply/lifting, is payable by the defaulting Party to the other Party within
a period of ninety (90) days from the date of receipt of claim failing which it will attract interest.
• After expiry of the Year, SCCL submits an invoice to the Purchaser with respect to the Performance
Incentive and the Purchaser pays the amount so due within thirty (30) days of the receipt of the
invoice failing which it attract interest.
viii) Annual Reconciliation / Adjustments: SCCL and the Purchaser jointly reconcile all payments made
for the monthly Coal supplies during the Year by end of April of the following Year. The Parties, forthwith,
give credit/debit for the amount falling due, if any, as assessed during such joint reconciliation. The
annual reconciliation statement is be jointly signed by the authorized representative of SCCL and the
Purchaser which is final and binding on both, SCCL and the purchaser.
B. Power:
a. The monthly bill raised under PPA include charges for supply of electricity, taxes, duties and cess.
Monthly bills are based on meter reading taken that has been mutually agreed by the both of the
parties.
b. Due date for payment for monthly bills presented is 60 days from the date of raising of Bill.
c. Rebate can be granted by SCCL which can be maximum to 2 percentage. If payments are made within
a week, maximum rebate granted to 1.25 percentage.
d. Additional bills on account of TSERC orders/ appellate tribunal of electricity/ other court/ other
competent authority to be billed through supplementary invoice unless included in monthly invoice.
e. Payment is to be by TSDISCOMS by irrevocable letter of credit. Appropriation of payment made is to
be governed in mutually agreed manner as per PPA.
f. In case of any dispute, 95% of the disputed amount along with objection is to be filed within 30 days.
5.2 Ind AS 116 : Leases :
5.2.1 In pursuance of the provisions of Ind AS 116 – Leases effective from 01.04.2019, the Company had
recognised the Lease Liabilities and Right of Use Assets, in respect of the Leases contained in the Service/
Hiring Contracts in operation where the contracts convey the right to control the use of the indentified Assets
to the Company as a Lessee.
5.2.2 The company had adopted Option II of the Modified Retrospective Approach permitted under Clause no
C.5(b) read with C7 and C8 of the Appendix C of the Accounting Standard. Accordingly, the Lease Liabilities
and corresponding Right of Use Assets are initially recognized at Rs.15.95 Crore being the present value of
the future Lease payments outstanding as on 01.04.2019.
5.2.3 The amounts payable in respect of Low Value leases up to Rs.2.00 lakhs/PM per Asset and the Short term
leases of 12 months or less are fully charged to expense.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
5.2.4 During the year further Lease liabilities Rs.19.63 Crore and Right of Use Assets at the corresponding amount
are recognised in respect of the new Leases commenced during the Year 2019-20. During the year, Finance
cost of Rs.1.42 Crore (being the unwinding cost of interest @ 8.50%) included in the payments identified
as lease elements and depreciation on Right of Use Assets for an amount of Rs.9.98 Crore (on straight-line
basis over the lease period) is charged off to Profit & Loss Account for the year 2019-20. The identified value
of lease payments of Rs.10.92 Crore were reduced from respective lease liabilities and the Hiring cost of the
Assets. The overall impact of the implementation of the Ind AS 116- Leases for FY 2019-20 is Rs.0.48 Crore
only (net increase in expenditure).
5.2.5 The carrying amounts of Lease Liability and the Right of Use Assets as on 31.03.2020 are Rs.26.08 Crore
and Rs.25.60 Crore respectively.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
5.3 Provisions :
The position and movement of various provisions as on 31.03.2020 are given below:
(Rs. In Crore)
Opening Write back/ Closing
Addition Unwinding
Balance Adj./ Balance
Provisions during the of
as on payments as on
year discounts
01.04.2019 During the year 31.03.2020
Long term provisions:
Gratuity 2750.76 180.84 - 200.53 3132.13
Leave encashment - Vesting 503.63 38.79 (10.87) - 531.55
Leave Entitlement – Non vesting 266.39 21.15 - - 287.54
Monthly Monetary Compensation & 106.88 9.30 - - 116.18
Low productive employee compensa-
tion (MMC & LPE)
Settling Allowance 46.25 15.11 - - 61.36
Leave Travel Concession 32.19 10.07 - - 42.26
OBR(Net of Advance Action) 2513.85 719.85 - - 3233.70
Backfilling 11146.84 (1276.20) 705.49 10576.13
Mine Closure Plan 1107.33 20.32 (33.59) 81.28 1175.24
Remedial Action Plan 86.71 - - 86.71
Short term provisions : - - -
Gratuity 1.32 0.10 - - 1.41
Leave Encashment (Vesting) 110.84 - (8.28) - 102.56
MMC &LPE 44.50 - (5.00) - 39.50
Superannuation Benefit 310.87 67.35 (10.00) - 368.22
Post Superannuation Medical Benefit- 327.55 162.28 - - 489.83
Executives & Non Executives
Performance related pay – Exe 235.13 79.82 (55.99) - 258.96
Performance Linked Reward 292.54 273.35 292.54 - 273.35
Scheme(PLR) (Exgratia)
Settling Allowance 9.21 3.88 - - 13.09
LTC / LLTC 28.11 - (3.81) - 24.30
Corporate Special Incentive 477.00 278.28 (477.00) - 278.28
Provision for Grade deterioration of - 4.61 - - 4.61
Washery Rejects
Provision for CSR - 29.78 - - 29.78
Provision for Warranty 0.86 0.12 - - 0.98
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
2. Subsidiary Company:
Company is having a subsidiary - Andhra Pradesh Heavy Machinery & Engineering Limited, Vijayawada:
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
3. APMDC-SCCL Suliyari Coal Company Ltd., a Joint Venture by SCCL and APMDC:
During the year there are no operations. The Joint Venture was formed for exploration of coal in Suliyari
Coal Block. Hon’ble Supreme Court vide its judgement dated 25.08.2014 has cancelled this Coal Blocks
allocation. In the SCCL’s Board meeting held on 04.03.2017, it was accorded approval for voluntary winding
up of the JV company and seeking repayment of RS.9.80 Crore from JV company which was contributed by
the company.
The winding up proceedings of the JV Company are yet to commence. The Company has made provision
towards diminution in the value of investments for Rs.49,000/- (Share Capital) and doubtful advances for
Rs.9.80 Crore (Share application money kept in Advances account).
(i) Name of the Joint Venture entity: APMDC – SCCL Suliyari Coal Company Ltd.
(ii) Country of Incorporation : India
(iii) Principal Activities : Coal & Lignite mining; generating power through Wind, Tidal and Solar sources and
Setting up integrated power plants
(iv) Ownership interest: 49%
(v) Original cost of Investment: Rs.49,000& Rs.9,79,51,000/- paid towards Share application.
(vi) Aggregate amounts related to interest in Joint Venture entity:
The Company’s interest in the aforementioned entity’s assets, liabilities, income and expenditure are not
disclosed as the entities financials are not finalised yet.
Payment to CMD, Whole Time Directors and For the year For the year
Sl.No.
Company Secretary ended 31.03.2020 ended 31.03.2019
i) Short Term Employee Benefits 3.27 3.37
Gross Salary
Perquisites & Medical Benefits 0.35 0.24
ii) Post-Employment Benefits 0.21 0.30
Contribution to P.F. & other fund
iii) Termination Benefits (Paid at the time of separation) Leave -
Encashment
Gratuity paid - -
Gratuity Outstanding - -
TOTAL 3.83 3.91
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
b) Sitting Fees:
(Rs. In Crore)
For the year For the year
Sl. No. Payment to Independent Directors
ended 31.03.2020 ended 31.03.2019
1 Sitting Fees 0.004 0.004
Segment Information
a) The operating Segments are established on the basis of those components of the company that are evaluated
regularly by the Executive Committee (the ‘Chief Operating Decision Maker’ as defined in Ind AS 108 -
‘Operating Segments’).The Company has two principal Operating and Reporting segments; Viz. Coal and
Power. In addition, the subsidiary which is engaged in the manufacture & supply of Industrial Machinery&
Spares is also disclosed as a segment.
b) The accounting policies adopted for segment are in line with the accounting policy of the company with
following additional policies for segment reporting. Revenue and Expenses have been identified to a
segment on the basis of relationship to operating activities of the segment Revenue. Expenses which relate
to enterprise as a whole and are not allocable to segment have been disclosed as “un allocable”.
c) Segment Assets and Segments Liabilities represent Assets and Liabilities in respective segments.
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Additional Notes to the Financial Statements (Consolidated) (Contd.)
Interest Revenue 640.64 648.94 0.21 10.13 0.40 1.19 - - 641.25 660.26
Interest Expense (35.25) (12.02) (380.87) (385.28) (0.07) (0.09) - - 416.19 397.39
Profit Before Tax 2279.88 2318.98 595.79 539.25 (3.33) (6.47) - - 2872.34 2851.76
251
Profit Before Tax (C/F) 2279.88 2318.98 595.79 539.25 (3.33) (6.47) 3. 31 5.03 - 2869.03 2846.73
3 Taxes & other adjustments - - - -
a Income Tax - - - - - 1166.38 620.64 1166.38 620.64
b Deferred Taxes - - 0.19 (1.23) - 690.09 418.08 690.28 416.85
c Earlier year taxes - - - - - (27.71) - (27.71)
4 Profit after Tax (before - - - - - 1012.37 1836.97
OCI)
Other Comprehen-sive - - - - - (18.70) (17.39)
Income net of Taxes
5 Profit after Tax (before - 993.67 1819.58
adj. of interest in Associ-
ates
Profit Related to Non - (0.04) (0.62)
Controlling Interest
Profit after Tax ( after adj - 993.71 1820.20
Non Controlling Interest)
99th Annual Report & Accounts for the year 2019-2020
THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Segment Assets 24,436.78 25,129.86 13,831.78 11,286.62 72.04 74.77 38,340.60 36,491.25
Segment Liabilities 25,638.33 24,183.36 4279.03 4674.18 21.43 20.66 29,938.79 28,878.20
Depreciation/ Amorti- 1176.84 1,257.74 425.09 405.32 0.21 0.22 1602.14 1,663.28
zation Expenses
Note: 1. Since the company is not having any business operations outside India, Secondary disclosure does not arise.
2. The Intersegment transfers are priced on Arms length basis.
5.9 Taxation :
(i) Accounting for Taxes on Income under Ind AS-12- Calculation of Deferred Tax :
(Rs. In Crore)
As on As on
DEFERRED TAX ASSETS/LIABILITY
31.03.2020 31.03.2019
A Deferred Tax Liabilities
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
Year ended
SI.No. Nature of Adjustments
31.03.2020
1 Net profit as per Statement of Profit and Loss (before tax) 2869.03
2 Add/Less: Differences as per Income Tax Act. (MAT) 468.80
3 Book profit for the purpose of MAT 3337.83
4 Applicable tax rate @ 34.944% 34.944%
5 MAT on Book profit as per income Tax Act, 1961 (3*4) 1166.37
6 Taxes as per P&L A/c
a) Current year tax 1166.38
b) Deferred Tax in P&L 690.28
c) Deferred Tax in OCI (6.30)
7 Net tax liability as per P&L A/c 1850.36
8 Other Comprehensive Income (Excluding Deferred Tax on OCI) (25.00)
9 Profit after Tax (Total comprehensive income for the period) (1-7+8) 993.67
iii) Explanation of changes in applicable tax rates compared to previous accounting period :
a) During the year, the Govt of India has notified an option to the Assesses for payment of Corporate
Income Tax at either the normal Tax rate of 34.944% with MAT Credit entitlement and availment
of special exemptions or at the reduced Tax rate of 25.168% without MAT credit entitlement and
exemptions. Based on the Estimated Tax liability under both the options, the payment of Income Tax on
the normal Tax rates is beneficial for the year 2019-20. Hence, the company has opted to pay Income
Tax at normal rates of 34.944% with MAT Credit utilization and availment of 80IA exemption in respect
of STPP profits. Accordingly, the current tax liability for the year 2019-20 at Normal Rates worked out
to Rs.1166.38 Crore (Previous Year Tax provision is Rs. 620.64 Crore (MAT)).
b) Further, as per the estimates of physical parameters and Profitability for future accounting periods, the
payment of Income Tax at Normal tax rate of 34.944% would be beneficial for FY 2020-21 also and
from FY 2021-22 onwards, the reduced Tax rates would be favourable. As per the provisions of Ind AS
12 – “Income Taxes” read with Accounting Policy no 2.2.13(B), the deferred Tax Assets/Liabilities have
been arrived by considering the rate of Income Tax at which they would be realized i.e. at 34.944% for
FY 2020-21 and at 25.168% from 2021-22 onwards. Consequently, an amount of Rs.850.24 Crore is
charged off as impairment of deferred Tax Assets (net) in the current year.( Refer Note No 9.1)
c) The total amount of Deferred Tax Asset (net) charged off including the movement in the various items
of Deferred Tax Assets/ Deferred Tax Liabilities and the impairment of deferred Tax assets on account
of Rate reduction as mentioned above worked out to Rs.683.98 Crore.
iv) Dividend Distribution Tax:
For the Financial year 2018-19, the Company has declared and paid Dividend @10% on the paid-up equity
share capital in the FY 2019-20 amounting to Rs.173.32 Crore. Dividend distribution Tax at the effective rate
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
of 20.557 % amounting to Rs.35.63 Crore was paid on the same during the year. As per the amendments
made to Section 115 O of Income Tax Act, during the current year, no Dividend distribution Tax is applicable
on the dividends declared /paid on or after 01.04.2020.
v) Unsettled Tax Propositions:
The expenditure reimbursed to Educational society was disallowed in the latest assessments by the Tax
Authorities, without change in law or the nature of claim. The company has contested the disallowance
before the Appellate Authorities and expecting a favourable decision. The tax liability for the current year was
arrived duly considering the educational society expenditure as an allowable expenditure.
5.14 Others:
A) As required by Section 22 of the Micro Small and Medium Enterprises Development Act, 2006
(MSMED) the following information is disclosed on the basis of information available with the company.
(Rs. In Crore)
As on As on
Particulars
31.3.2020 31.3.2019
The principal amount remaining unpaid (But not due) 21.41 13.05
Interest due thereon (interest due and / or payable) NIL Nil
B) Consequent to handing over of 9 schools, 2 colleges and 1 Polytechnic to Singareni Collieries
Educational Society, all running expenses of these institutions, after deduction of receivables from
these institutions (viz., Grant-in-Aid, Fee collections from students, recoveries from the employees
towards amenities provided etc.,) are being met by the Company by way of Educational Grant. Further,
infrastructure used by the Society is continued to be under the ownership of the Company for which no
recovery is made from the Society.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
C) The company engage contractors for removal of Overburden. In some of the contracts the contractors
are eligible for Bonus in respect of the quantity of explosives and HSD oil saved by them during the
course of the contract, which is to be set off against future excess consumption as per contractual
terms. Further, these contractors can claim and en-cash such accrued Bonus at the end of every
financial year at their option. Considering the uncertainty, the value of explosives and HSD oil saved
and not en-cashed by such contractors for set off against future excess consumption amounting to
Rs73.68 Crore is not provided for in books as on 31.03.2020. (Previous year Rs.77.18 Crore).
D) Balance Confirmations:
i. Balance confirmation/reconciliation is carried out for cash & bank balances, certain loans
& advances, long term liabilities and current liabilities. Provision is taken against all doubtful
unconfirmed balances.
ii. Joint reconciliation with major sundry debtors is done periodically.
E) Value of imports on CIF basis :
(Rs. In Crore)
For the Year For the Year
Particulars
ended 31.3.2020 ended 31.3.2019
Components, Stores & Spare Parts 7.92 21.42
Capital Goods 49.36 29.60
F) Expenditure incurred in Foreign Currency:
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
iii) Fixed Assets with original value > Rs.3 Lakh and < Rs.10 Lakh once in three years (3rd year of
Block).
The Assets mentioned at (i) & (ii) above were physically verified during 2019-20 and deviations are accounted
and in respect of other assets the same are confirmed as available based on certification by the unit head.
I) Statement of Opening Stock, Production, Turnover and Closing Stock of Coal:
For the year ended 31.3.2020 For the year ended 31.3.2019
Particulars Quantity Value Quantity Value
In ‘000 T (Rs. In Crore) In ‘000 T (Rs. In Crore)
Opening Balance 1864.39 217.10 5283.66 685.13
Production 64044.38 64,401.23 -
Purchase from FCI 10.78 1.73
Despatches 56552.72 14727.36 62,569.65 16,339.43
Internal Consumption (incl. STPP) 5876.62 2303.29 5,220.01 1768.29
Adjustments for adopted Stock - 0.29 -
Shale/Stone Write off 11.15 41.91 -
Closing Balance*** (#) 3468.28 457.34 1,864.39 217.10
***The above closing stock includes 17,959.90 Tonnes of shale values at NIL rate (Previous Year 11,146.75 Tonnes)
# Closing stock includes 19,168.20 Tonnes of Coal in transit at STPP as on 31.03.2020 valuing Rs.8.13 Crore ( PY 3698.96 Tonnes
valuing Rs.1.43 Crore).
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
the use of the identified Assets to the Company as a Lessee as per the provisions of Ind AS 116 –
Leases. The company had adopted Option II of the Modified Retrospective Approach permitted under
Clause no C.5(b) read with C7 and C8 of the Appendix C of the Accounting Standard. Accordingly,
the Lease Liabilities and corresponding Right of Use Assets are initially recognized at Rs.15.95 Crore
being the present value of the future Lease payments outstanding as on 01.04.2019.
In respect to new Leases commenced during the Financial Year 2019-20, Lease liabilities and Right of
Use Assets are recognised for Rs.19.63 Crore. During the year, Finance cost of Rs.1.42 Crore (being
the unwinding cost of interest @ 8.50%) included in the payments identified as lease elements and
depreciation on Right of Use Assets for an amount of Rs.9.98 Crore (on straightline basis over the
lease period) is charged off to Profit & Loss Account for the year 2019-20.The identified value of lease
payments of Rs.10.92 Crore were reduced from respective lease liabilities and the Hiring cost of the
Assets. The overall impact of the implementation of the Ind AS 116- Leases for FY 2019-20 is Rs.0.48
Crore only (net increase in expenditure).
The carrying amounts of Lease Liability and the Right of Use Assets as on 31.03.2020 are Rs.26.08
Crore and Rs.25.60 Crore respectively.
c) Development Expenditure :
The Accounting policy at Sl.No 2.2.9.B (ii) and (E) regarding reckoning the sale value of coal production
of the Mine has been modified from “the Average Monthly Selling Price of the Area” to “Monthly Selling
Price of the Mine” as it is more appropriate basis for arriving at the sale value of production for and
recognizing the Revenue expenditure capitalized as Development Expenditure Assets.
Consequent to the above modification in the accounting policy, an amount of Rs.23.16 Crore was
adjusted (debit) against Retained Earnings as on 01.04.2018 and corresponding amount was credited
to Development expenditure, being the effect of retrospective application pertaining to the earliest
period. The financial impact for the year 2018-19 (Comparative Year) was accounted by increasing
the Coal Sales Revenue by Rs.6.51 Crore, Development Expenditure by Rs.6.51 Crore and increase
in profit for FY 2018-19 was Rs.6.51 Crore). Consequently, the corresponding reported figures of
FY 2018-19 are restated. Due to change in the policy, there is an increase in the Sales revenue and
Development Expenditure by Rs.6.71 Crore during the current year.
d) Overburden Removal Accounting:
As per the Accounting Policy 2.2.10.1(ii), general review of stripping ratios is taken up once in five years
in respect of only those OC mines which have completed five years of revenue workings. However, as
per this policy, certain revenue Mines which have not completed five years of revenue production by
the time of a general review are escaping the review of stripping ratios for 6 to 9 years as the case may
be.
In order to cover the review of Stripping Ratios of all the OC Mines in operation (irrespective of period
of revenue working thereof) the review of stripping ratios of all the operating OC mines is taken up in
current year by modifying the accounting policy regarding the periodicity of revision of stripping ratios
as 3 years interval from the existing 5 years. Further, the revised stripping ratios of the projects not
qualified for the general review of stripping ratios are also estimated by the Project Planning dept by
the usage of latest software modelling techniques.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
The modification to the Accounting Policy reducing the interval period of general review of stripping ratios
from five years to three years could not be given retrospective implementation as it was impracticable to
apply the revised Accounting Policy retrospectively owing to non availability of the relevant information
at that point of time. The respective previous periods and revised stripping ratios have since been
firmed up in the current year. Hence, the financial impact of the change in the Accounting policy as to
the review period is applied prospectively as a change in the estimate and an additional amount of
Rs.169.03 Crore is debited to Profit & Loss Account in the current year in respect of five OC Mines.
K) Future Changes in the Accounting Policies:
As per requirement mentioned at para No.30 of Ind AS 8 (Accounting Policies, Changes in Accounting
estimates and Errors) , the amendments to standards that are issued, but not yet effective, up to the date of
issuance of the Company’s financial statements are disclosed below. The Company intends to adopt these
standards, if applicable, when they become effective. The Ministry of Corporate Affairs (‘MCA’) has issued
the Companies (Indian Accounting Standards) Amendment Rules, 2017 and Companies (Indian Accounting
Standards) Amendment Rules, 2019 amending the some of the standards relevant to the company as
under:
a) Ind AS 103 – “ Business Combinations” :
The amendment made with regard to determination of whether a transaction or other event is a
business combination, which requires determining whether the assets acquired and liabilities assumed
constitute a business or not and in case the assets acquired are not a business, accounting for the
transaction or other event as an asset acquisition, may not have any impact on the Company as no
business acquisitions are proposed for.
b) Ind AS 109 – “Financial Instruments”:
The amendments made with regard to accounting treatment of Uncertainty arising from interest rate
benchmark reform and Temporary exceptions from applying specific hedge accounting requirements
are not applicable as there are no such Financial Instruments in the Company.
c) Ind AS 116 – “Leases”:
The amendments proposed with regard to Covid-19-related rent concessions for lessees are not
applicable to the Company as there are no such transactions in the Company.
d) Ind AS 1 – “Presentation of Financial Statements” and Ind AS 8 - “ Changes in the Accounting
policies” :
The definition of the term Material is modified in both the Standards as “Material: Information is
material if omitting, misstating or obscuring it could reasonably be expected to influence decisions
that the primary users of general purpose financial statements make on the basis of those financial
statements, which provide financial information about a specific reporting entity. Further, the term
Obscure information was also amplified with the examples.
On primary understanding, these amendments made with regard to materiality have no impact on the
company as all the required information is appropriately presented and disclosed. However, these
amendments will be thoroughly reviewed and all material information as per new definition shall be
presented in the future Financial Statements.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
this, deferred tax liability of Rs.5.55 Crore (increase) was also recognised. The net increase in the
Profit for the year 2018-19 was Rs.10.33 Crore.
3. Errors in Overburden removal Accounting :
Few errors in the overburden accounting owing to non provisioning for estimated amounts payable on
the closed contracts, omission of diesel penalty recoverable, incorrect stores expenditure allocation
etc, with consequential impact on the OBR charge, updation of reserve/advance action are noticed in
the current year which need to be corrected retrospectively. Accordingly, the Financial Impact of these
errors up to 31.03.2018 (earliest Period was adjusted against retained earnings as on 01.04.2018
for an amount of Rs.2.41 Crore (Credit) (Rs.3.70 Crore net of deferred tax of Rs.1.29 Crore) and the
financial impact of FY 2018-19 was recognised by restating the corresponding reported figures of
related expenditure GLs/OBR adjustment account, as the case may be, by Rs.8.72 Core (Credit). On
this, deferred tax liability of Rs.3.05Crore (increase) was also recognised. The net increase in the Profit
for the year 2018-19 was Rs.5.67 Crore.
4. Non regularisation of Tax liability provision :
For the year 2017-18, the estimated Tax liability (including deferred tax) as per the information
available up to the closure of accounts was provided in the Books of Account. However, inadvertently
the regularisation of the estimated Tax liability against the actual Tax liability firmed up as per the
Return of Income filed and consequential withdrawal of excess liability of Rs. 28.80 Crore was not
done in FY 2018-19, which need to be viewed as a prior period error and requires retrospective
correction. Accordingly, the corresponding reported figures of Tax liability of FY 2018-19 was restated.
The increase in the Profit (PAT) for the year 2018-19 was Rs.28.80 Crore.
5. In addition to above, few expenses pertaining to prior periods have been recognised in the current
year. These items amounting to Rs.2.19 Crore (decrease) have been corrected retrospectively by
restating the opening balance of retained earnings as on 01.04.2018 (earliest period) by Rs.1.69 Crore
(decrease) and the comparative amounts for the prior period 2018-19 by Rs.0.50 Crore (decrease) as
the case may be.
6. Exceptional Items :
In pursuance of notification vide S.O.804 (E), dated 14.03.2017 issued by MoEF&CC, the Company
had submitted proposals for obtaining Environment Clearances involving 20 projects falling under the
EC violation category. The Company has recognised liability of Rs.86.71 Crore for implementation
of Remediation Plan and Natural & Community Resource Augmentation Plans (RP & NCRAP)
corresponding to the ecological damage assessed and economic benefits derived due to violation.
Considering the specific nature of the expenditure the Company has classified and disclosed the same
as Exceptional item as per Para no 9.6 of Guidance Note issued by ICAI on Division II – Ind AS
Schedule –III to the Companies Act, 2013.(Refer Note no 22.4).
7. Dividend Information :
For the year 2018-19 dividend was declared by the shareholders in the AGM held on 30.09.2019
@ 10% of paid up Share Capital. The Dividend of Rs.173.32 Crore and Dividend Distribution Tax of
Rs.35.63 Crore there on paid during the current year totalling to Rs.208.95 Crore have been adjusted
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
against the Retained Earnings. For the year 2019-20, the Board of Directors have recommended
dividend @ 10% of the Paid up Share Capital which works out to Rs.173.32 Crore. Pending declaration
of Dividend for the year 2019-20 by the shareholders in the ensuing AGM, the same is not accounted
in the books of account as it is in the nature of an event after the reporting date as per Ind AS 10. As
mentioned at note no.39.5.9 (iv), no dividend distribution tax is applicable on the same.
8. Disclosures with regard to COVID-19 and its impact:
a) Financial Impact: The Company has been classified as an Emergency Services Provider. The
lock down imposed in the country in March 2020 due to COVID-19 had caused only minor effect
on the operations of the Company. There is a loss of Coal production of 2.69 LT and despatches
are lower by 5.05 LTs in March 2019-20. Consequent to this there is a reduction in Revenue by
Rs.100.11 Crore (net of increase in inventory) and corresponding reduction in the Profit Before
Tax (PBT) by the even amount.
b) Impact of Corona Virus on financial reporting – Assets & Liabilities:
1) Inventory: There is reduction of 5.05 LT in the despatch of Coal to customers in March
2020 due to Covid 19. As the major customers of the Company are power generating
utilities which are declared as emergency services, the Management do not see any need
to write down the inventories in view of COVID-19.
2) Impairment test for Assets: No impairment of non-financial assets like property, plant &
equipment, intangibles and goodwill, is felt necessary due to COVID-19.
3) Change in useful life of fixed assets: No change in useful life of assets is felt necessary
due to COVID-19.
4) Fair value of financial assets/instruments: There is no impact due to COVID-19 in fair
value of financial assets/instruments.
5) Trade receivables-Expected Credit Loss: No additional ECL is felt necessary due to
COVID-19 Situation.
6) Leased Assets: No changes in the conditions of the Lease agreements due to COVID-19.
7) Capitalisation of Borrowing cost: There is no impact on the Capitalisation of Borrowing
Cost.
8) Provision for onerous contract: There are no onerous contracts in the Company hence
provisioning towards the same does not arise.
9) Going concern assumption need to be reassessed by management: The management
feels that there shall not be any impact on Going Concern Assumption due to COVID-19 as
on Balance Sheet date and next 12 months.
10) Impact of COVID-19 on significant uncertainties: As the Company is classified as
an Emergency service sector and operations are continued as normal, no significant
uncertainties have been emerged by the outbreak of the COVID-19 in measuring various
assets and liabilities. However, due to the overall economic situation in the country, it is
estimated that there could be 15%-20% scale down in the operations in the year 2020-21
when compared to the reporting period.
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
81.54%. The excess of the purchase consideration paid over the parents portion of equity has
been attributed as goodwill, details are given below:
f) Joint Venture with, APMDC-SCCL Suliyari Coal Company Limited was not consolidated as the
Financial Statements are not made available. During the year, there are no transactions with the
JV Company.
10. Miscellaneous :
1. Previous period’s figures have been restated as per Ind AS & regrouped, rearranged and renumbered
wherever considered necessary.
2. (i) Note-1 gives corporate information;
(ii) Note-2 represents Significant Accounting Policies
(iii) Note-3 to Note-25 form part of the Balance Sheet as at 31st March, 2020
(iv) Note-26 to Note-38 form part of Statement of Profit & Loss for the year ended on that date; and
(v) Note-39 represents Additional Notes to the Financial Statements.
Date : 03-10-2020
Place : Hyderabad
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THE SINGARENI COLLIERIES COMPANY LIMITED 99th Annual Report & Accounts for the year 2019-2020
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OUR MISSION
Ø To retain our strategic role of a premier Coal Producing
Company in the country and excel in a competitive business
environment.