Annexure XIV Continued… - Edelweiss

67.87 million, provisions for bad and doubtful debts of ` 14.88 million, bank charges of ` 17.92 million, bad
debts written off of ` 17.67 million and preliminary expenses written off of ` 22.53 million (incurred for the
incorporation of ACB (India) Power Limited, a wholly owned subsidiary). Administrative and selling expenses
were equal to 5.73% of our total income in the nine months ended December 31, 2010.
Depreciation
Depreciation for the nine months ended December 31, 2010 was ` 534.95 million which consisted primarily of
depreciation of ` 393.95 million on plant and machinery, depreciation of ` 62.50 million on buildings and
factory buildings, depreciation of ` 33.32 million on railway siding and depreciation of ` 35.63 million on
vehicles and heavy earth moving machines. Depreciation was equal to 5.72% of our total income in the nine
months ended December 31, 2010.
Finance cost
Interest and finance charges for the nine months ended December 31, 2010 were ` 509.67 million which
consisted primarily of interest on term loans of ` 294.95 million, interest on cash credits/working capital loans
of ` 108.18 million and interest paid on inter-corporate deposits of ` 9.03 million and loan processing charges
of ` 93.45 million. Interest and finance charges were equal to 5.45% of our total income in the nine months
ended December 31, 2010.
Profit before tax and adjustments
As a result of the foregoing, profit before taxation for the nine months ended December 31, 2010 was `
1,670.83 million.
Provision for tax
The provision for tax liabilities for the nine months ended December 31, 2010 was ` 661.48 million.
Profit after Tax
As a result of the foregoing, net profit after tax (before adjustments) for the nine months ended December 31,
2010 was ` 1,009.35 million.
Comparison of Fiscal 2010 and Fiscal 2009
Income
The following table sets forth our income from our businesses for Fiscal 2009 and Fiscal 2010:
Fiscal Fiscal Variation
2009 2010 %
(` in millions, except percentages)
Coal beneficiation and allied receipts (1) ......................................... 3,027.43 3,580.04 18.25%
Sale of coal (1) ................................................................................. 4,780.38 5,701.61 19.27%
Sale of power (2) .............................................................................. 635.77 707.30 11.25%
Sale of sponge iron (3) .................................................................... 439.17 479.76 9.24%
Sale of equipment .......................................................................... 54.08 11.94 -77.92%
Other income ................................................................................ 400.06 202.87 -49.29%
Total ............................................................................................. 9,336.89 10,683.52 14.42%
(1) Coal beneficiation and allied receipts and sale of coal together comprise the coal operations segment used
for financial reporting purposes.
(2) Sale of power includes the wind power and thermal power segments used for financial reporting purposes.
(3) We sold our sponge iron business on April 9, 2011.
291