Neyveli Lignite Corporation

1.  Details of contingency provisions:
 
 Description                           Opening  Addn.  Withdrawal Closing
 
 Amount payable to Electricity 
 Board as per the
 Regulatory Commission                   7.26     -       7.26         -
 Interest on disputed tax deducted 
 at source                              16.89     -        -        16.89
 Provision for Barsingsar Mine 
 Development
 Expenditure incurred in earlier years  18.24     -        -        18.24
 
 2.  As per the accounting policy of the Corporation, surcharge
 recoverable from Electricity Boards on the belated settlement of the
 power bill, amounting to Rs.117.29 crore has not been reckoned as
 income since there is uncertainty in realisation. The same will be
 accounted on certainty of realisation.
 
 3.  Mine development of Rajasthan Barsingsar Mines has been completed.
 Overburden removal cost, subsequent to Mine development, has been
 deferred to the tune of Rs. 18.26 crore to be written-off over three
 years from the date of excavation of lignite or commissioning of
 Thermal Power Station in Barsingsar, whichever is earlier.
 
 4.  The rate of depreciation has been increased for the additions to
 match with main equipment of Thermal Power Station-I on account of
 planned shut down of the unit.
 
 5.  The estimated expenditure for final Mine closure is Rs.3370.50
 crore out of which Rs.399.20 crore has been provided in the year which
 has been recovered through power tariff.
 
 6.  Option to capitalise the exchange rate difference in terms of para
 46 of AS-11 of Companies (Accounting Standards) Rules, 2006 has been
 exercised. Consequent to this, an amount of Rs.0.45 crore has been
 increased in the reserves and surplus account and increase in profit
 for the current year by Rs.0.23 crore.  There is no un-amortised
 foreign currency monetary item translation difference account.
 
 7.  Details relating to consumption of raw materials stores and spares
 licensed and installed capacities, production, etc., are furnished in
 the Annexure to Schedule-22.
 
 8.  i.  Principal amount remaining unpaid to any supplier belonging to
 Micro, Small and Medium Enterprises as
 
 at the end of the year Rs.3.71 crore.
 
 ii.  Amount of Interest due and payable for the period of delay in
 making payment but without adding the interest specified under this Act
 Rs.0.03 crore.
 
 9.  Other liabilities in current liabilities includes Rs.0.58 crore
 represents Book overdraft balance of Current Account balance with the
 Bank.
 
 10.  Advances, Sundry Debtors and Sundry Creditors have been linked
 with corresponding credits/debits to the extent practicable. Balances
 due in respect of sundry debtors, advances and amounts due to creditors
 are subject to confirmation.
 
 11.  The number of shares considered for arriving at the basic and
 diluted earnings per share is 167,77,09,600.
 
 12.  There is no impairment loss identified other than
 disposable/dismantled assets for which provision of Rs.1.95 crore has
 been created as per Accounting Standard-28.