Annexure XIV Continued… - Edelweiss

Coal beneficiation and allied receipts income increased by ` 155.21 million, or 7.16%, to ` 2,324.22 million in
Fiscal 2008 from ` 2,169.01 million in Fiscal 2007, primarily due to an increase in the quantity of raw coal
beneficiated at our coal beneficiation plants. Coal beneficiation and allied receipts income represented 64.03%
and 41.66% of our total income in Fiscal 2007 and Fiscal 2008, respectively.
Sale of Coal
Sale of coal income increased by ` 1,289.54 million, or 198.09%, to ` 1,940.54 million in Fiscal 2008 from `
651.00 million in Fiscal 2007, primarily due to an increase in the sale of coal rejects, an increase in the average
price realized per ton of coal rejects, an increase in the sale of beneficiated coal (after processing raw coal
purchased in e-auction) and the sale of raw coal and an increase in the average price realized per ton of
beneficiated coal (after processing raw coal purchased in e-auction) and the sale of raw coal. The increase in
sale of coal rejects during Fiscal 2008 was ` 798.23 million as compared to Fiscal 2007 and the increase in the
sale of beneficiated coal (after processing raw coal purchased in e-auction) and the sale of raw coal was `
498.77 million as compared to Fiscal 2007. Sale of coal income represented 19.22% and 34.78% of our total
income in Fiscal 2007 and Fiscal 2008, respectively.
Sale of Power
Sale of power income increased by ` 439.70 million, or 337.97%, to ` 569.80 million in Fiscal 2008 from `
130.10 million in Fiscal 2007, primarily due to full year operations of our 30 MW Chakabura Power Plant.
Sale of power income represented 3.84% and 10.21% of our total income in Fiscal 2007 and Fiscal 2008,
respectively.
Sale of Sponge Iron
Sale of sponge iron income increased by ` 294.92 million, or 117.77%, to ` 545.34 million in Fiscal 2008 from
` 250.42 million in Fiscal 2007, primarily due to an increase in the quantity sold and the average price realized
per ton of the quantity sold. The quantity sold during Fiscal 2008 increased by 45.41% over the quantity sold
during Fiscal 2007 and the average price realized per ton during Fiscal 2008 increased by 47.72% compared to
the average price realized per ton during Fiscal 2007. Sale of sponge iron income represented 7.39% and
9.77% of our total income in Fiscal 2007 and Fiscal 2008, respectively. We sold our sponge iron business on
April 9, 2011.
Sale of Equipment
Sale of equipment income increased by ` 9.11 million, or 58.51%, to ` 24.68 million in Fiscal 2008 from `
15.57 million in Fiscal 2007, primarily due to increased sales to Spectrum Coal in Fiscal 2008. Sale of
equipment represented 0.46% and 0.44% of our total income in Fiscal 2007 and Fiscal 2008, respectively.
Other income
Other income increased by ` 3.37 million, or 1.97%, to ` 174.59 million in Fiscal 2008 from ` 171.22 million
in Fiscal 2007. Other income represented 5.05% and 3.13% of our total income in Fiscal 2007 and Fiscal 2008,
respectively.
Expenditure
The total expenditure increased by ` 1,849.72 million, or 70.82%, to ` 4,461.51 million in Fiscal 2008 from `
2,611.79 million in Fiscal 2007. The increase was primarily attributable to:
Purchase of coal
Purchase of coal increased by ` 431.58 million, or 124.13%, to ` 779.25 million in Fiscal 2008 from ` 347.67
million in Fiscal 2007. This is primarily the result of an increase in the quantity of e-auction coal purchased
and an increase in the quantity of coal rejects purchased due to an increase in the quantity of raw coal
beneficiated at our coal beneficiation plants. The quantity of raw coal purchased in e-auction increased to 0.43
million tons in Fiscal 2008 from 0.14 million tons in Fiscal 2007. Purchase of coal as a percentage of total
income increased from 10.26% in Fiscal 2007 to 13.97% in Fiscal 2008.
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