Annexure XIV Continued… - Edelweiss

Sale of Power
\Sale of power income for the nine months ended December 31, 2010 was ` 670.57 million which consisted
primarily of the sale of thermal and wind power. Sale of power income contributed 7.17% of our total income
in the nine months ended December 31, 2010.
Sale of Sponge Iron
Sale of sponge iron income for the nine months ended December 31, 2010 was ` 828.13 million. Sale of
sponge iron income contributed 8.85% of our total income in the nine months ended December 31, 2010. We
sold our sponge iron business on April 9, 2011.
Other income
Other income for the nine months ended December 31, 2010 was ` 128.30 million which consisted primarily
of interest income from bank deposits of ` 62.66 million, interest income from inter-corporate
deposits/security deposits of ` 8.24 million, railway siding rental receipts of ` 45.04 million and other
miscellaneous receipts of ` 7.20 million. Other income contributed 1.37% of our total income in the nine
months ended December 31, 2010.
Expenditure
Total expenditure for the nine months ended December 31, 2010 was ` 7,686.96 million. The total expenditure
consists of the purchase of coal, decrease/(increase) in stock, direct expenses, personnel costs, administrative
and selling expenses, depreciation and finance costs.
Purchase of coal
Purchase of coal for the nine months ended December 31, 2010 was ` 2,644.94 million which consisted
primarily of the purchase of coal rejects and related transportation costs and the purchase of raw coal
(primarily in e-auction) and related transportation costs. Purchase of coal was equal to 28.26% of our total
income in the nine months ended December 31, 2010.
Decrease/(increase) in stock
Our stock increased by ` 410.56 million in the nine months ended December 31, 2010. Our stock increase was
equal to 4.39% of our total income in the nine months ended December 31, 2010.
Direct expenses
Direct expenses for the nine months ended December 31, 2010 were ` 3,372.48 million which consisted
primarily of transportation and loading charges of ` 1,779.11 million, materials consumed of ` 952.43 million,
O&M of plant, machinery, buildings and heavy vehicles of ` 465.77 million and power and fuel of ` 156.69
million. Direct expenses were equal to 36.04% of our total income in the nine months ended December 31,
2010.
Personnel cost
Employee costs for the nine months ended December 31, 2010 were ` 499.21 million which were comprised
of salaries, wages and bonuses of ` 455.30 million, contribution to provident and other funds of ` 25.87
million and staff and welfare expenses of ` 18.04 million. Employee costs and operation, maintenance and
other expenses were equal to 5.33% of our total income in the nine months ended December 31, 2010.
Administrative and selling expenses
Administrative and selling expenses for the nine months ended December 31, 2010 were ` 536.27 million
which consisted primarily of rent of ` 48.33 million (consisting of rent for leases of land, railway siding and
other properties), rates, fees and taxes of ` 37.12 million (consisting of fees of ` 20.71 million related to an
increase in authorized share capital), legal and professional fees of ` 40.27 million, security expenses of `
20.45 million, travelling and conveyance of ` 35.41 million, handling charges paid to various agencies of `
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