Annexure XIV Continued… - Edelweiss

Fiscal 2009 compared to Fiscal 2008. Other income represented 3.13% and 4.28% of our total income in Fiscal
2008 and Fiscal 2009, respectively.
Expenditure
The total expenditure increased by ` 1,516.03 million, or 33.98%, to ` 5,977.54 million in Fiscal 2009 from `
4,461.51 million in Fiscal 2008. This is primarily attributable to the following factors:
Purchase of coal
Purchase of coal increased by ` 711.23 million, or 91.27%, to ` 1,490.48 million in Fiscal 2009 from ` 779.25
million in Fiscal 2008, primarily due to an increase in the purchase price of e-auction coal, an increase in the
volume of e-auction coal purchased, as well as an increase in the volume of coal rejects purchased due to
increased beneficiation operations. The average price per ton of e-auction coal purchased (including
transportation costs) was ` 1,455.72 during Fiscal 2009 compared to ` 1,063.97 in Fiscal 2008. The quantity of
raw coal purchased in e-auction increased to 0.62 million tons in Fiscal 2009 from 0.43 million tons in Fiscal
2008. Purchase of coal as a percentage of total income increased from 13.97% in Fiscal 2008 to 15.96% in
Fiscal 2009.
Decrease/(increase) in stock
Our stock increased by ` 233.99 million in Fiscal 2009 as compared to Fiscal 2008. This change was primarily
the result of the increase in purchases of coal. Decrease/(increase) in stock represented 0.57% and 2.51% of
our total income in Fiscal 2008 and Fiscal 2009, respectively.
Direct expenses
Direct expenses increased by ` 701.11 million, or 32.16%, to ` 2,881.39 million in Fiscal 2009 from
` 2,180.20 million in Fiscal 2008, primarily as a result of an increase in transportation and loading charges
from ` 1,126.48 million in Fiscal 2008 to ` 1,847.20 million in Fiscal 2009 due to an increase in our coal
beneficiation operations and increases in transportation and loading rates. In addition, the expenses related to
the repair, running and maintenance of heavy vehicles increased by ` 91.42 million. Direct expenses as a
percentage of total income decreased from 39.08% in Fiscal 2008 to 30.86% in Fiscal 2009.
Personnel cost
Employee costs increased by ` 136.79 million, or 47.87%, to ` 422.54 million in Fiscal 2009 from ` 285.75
million in Fiscal 2008, primarily due to an increase in remuneration of our Directors by ` 45.16 million and an
increase in employee costs due to growth in the number of employees and an annual increase in salaries.
Personnel cost as a percentage of total income decreased from 5.12% in Fiscal 2008 to 4.53% in Fiscal 2009.
Administrative and selling expenses
Administrative and selling expenses increased by ` 103.11 million, or 19.19%, to ` 640.55 million in Fiscal
2009 from ` 537.44 million in Fiscal 2008, primarily due to an increase in legal and professional fees of `
42.01 million, an increase in rates, fees and taxes of ` 7.92 million, an increase in office maintenance expenses
of ` 5.51 million, an increase in travelling and conveyance of ` 18.07 million, an increase in deductions related
to the quality/quantity of our products as charged by customers of ` 56.08 million and an increase in coal
handling charges paid to various agencies of ` 16.00 million. However, there was a decrease in administrative
and selling expenses primarily due to a decrease in foreign exchange fluctuation loss of ` 11.01 million, a
decrease in bad debts written off of ` 17.70 million and a decrease in interest on late payment of service tax of
` 17.42 million. Administrative and selling expenses as a percentage of total income decreased from 9.63% in
Fiscal 2008 to 6.86% in Fiscal 2009.
Depreciation
Depreciation increased by ` 84.25 million, or 20.96%, to ` 486.12 million in Fiscal 2009 from ` 401.87
million in Fiscal 2008, primarily due to a full year of depreciation on our Gevra beneficiation plant, which was
commissioned in March 2008, as well as depreciation related to the addition of 2.50 million tons per annum of
capacity at our Gevra beneficiation plant in May 2008. Further, depreciation charges increased due to the
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