Welcome to Presentation of DCB (Demand Collection Balance)

1. Welcome to Presentation of DCB (Demand Collection Balance) Prepared By: (n) Code Solution

2. DCB -meaning DCB – Demand Collection Balance According to Accounting Standards it defines leaseholder ledger which depicts demand as Debit and Collection as Credit and Balance refers Closing balance (+ / -) up to 31st March for various payment Types like Royalty, Dead Rent, Surface Rent, Cess on Surface Rent, etc…

3. Understanding of Dead Rent Dead Rent : It depicts advance royalty amount that has collected as minimum royalty to be paid by leaseholder per year in any case and this amount is not available to generate bulk permit. Leaseholder has to submit 50% Advance in starting of financial year and rest 50% after completion of 6 months. Dead Rent Amount For Major Mineral = ((Area * Dead Rent Rate)/365)* no of days Dead Rent Amount For Minor Mineral = (((left value of Area * Dead Rent Rate) + (Right Value/40 * Dead Rent Rate))/365)* no of days We shall consider maximum dead rent rate of minerals in case of multi minerals Lease. We are not charging dead rent if lease is surrendered, detained, expired or patta land.

4. To-Be for Dead Rent Deputy Director has to acknowledge received dead rent amount in system under primary mineral of lease. System will alert Leaseholder to pay 50% advance Dead rent after login in e-Permit system until they paid. This is for benefit of leaseholder and DMG as well. System will provide one report to deputy director which shows leaseholder information who has crossed dead rent limit. System shall provide provision to transfer dead rent to royalty amount after crossing dead rent limit by leaseholder to avoid showing credit balance under dead rent, if required. System shall fetch received amount to collection of dead rent in DCB from payment information

5. Dead Rent Rates For Minor Minerals rates are fixed up to lease periods until new rates are not introduced by State government. Rates are defined as per mineral wise. For Major Minerals rates are published in in slab of years and importance of minerals. But in system, rates are defined as per each minerals for each year.

6. Description of payment Type value

7. Understanding of Royalty Royalty : It depicts amount that has been collected from leaseholder to transport mineral. System is deducting royalty at time of bulk permit approval. Royalty Rate has been defined in e-Permit System and later on IBM rate has been configured for royalty difference calculation Due to online system, Leaseholder has to pay royalty in advance to generate permit, so most probably leaseholder will be having credit in his account under royalty.

8. To-Be for Royalty Please insert every royalty amount payment made by leaseholder even though it is Idle or else. System will calculated Royalty difference between deducted royalty rate and IBM Rate. Same system will calculate difference of TCS, Ed. Cess if deducted at time of bulk permit. We shall bring deducted royalty difference as demand along with bulk permit royalty amount. Royalty balance will be calculated as per mineral wise only because of payment and demand has been raised as per mineral.

9. Understanding of Surface Rent & Cess Surface Rent Amount for Major Mineral = Area * Surface Rent Surface Rent Amount for Minor Mineral = (left value of Area * Surface Rent Rate) + (Right Value/40 * Surface Rent Rate) Cess Amount for Major Mineral = Area * Surface Rent Cess Amount for Minor Mineral = (left value of Area * Cess Rate) + (Right Value/40 * Cess Rate)

10. Process Flow Year 2011-12

11. Fund Transfer Method

12. Interest Calculation System will calculate interest on principal due but don’t calculate interest on interest due. Interest will be calculated in next year after gross days of each payment defined by DMG administrator. System will not provide gross day to previous year opening amount if due. Gross days will be applicable for previous year demand only. Formula = Principal Amount * (Interest Rate/100) * Days / 365

13. Report Issue DCB Report

14. Functionalities Fund Transfer (Journal). Alert on due amount. Auto Interest calculation Royalty Difference calculation and its effect to DCB Data @ one click related to DCB. Deduct all dues from lease ledger @ one click.

15. Challenges • Interest calculation : • If all payments are not inserted in system then calculated interest will not be match with actual. • To Start in e-Permit system earlier, DD has transferred balance of leaseholder in payment to generate bulk permit. This amount is opening amount and system is considering as payment, so trouble in interest calculation • Opening • System is not having closing of previous year, so user has to manually feed opening in DCB but for next year it will come automatically. • What ever opening you are declaring that should be correct with respect to each case of leaseholder.

16. Challenges • Demand: • As per implementation we have enrolled leaseholders one by one in previous year, so some may started after 1 month or 2 month or later. Due to that system would not be able to calculate actual demand of royalty for leaseholder. • In Demand, system will consider royalty amount which is deducted at time of bulk permit generation and deducted royalty difference for same year. • Inclusion of e-auction manually in demand for same lease.

17. Challenges • Collection: • All payments may not be inserted in system, so collection may not match with actual. • Bifurcation of consolidate amount to various payments. • Inclusion of e-auction manually in collection for same lease. • Work bill Adjustment: • As finalized by DMG, it should be handled separately. • Leaseholder Information • All leaseholders information must be correct in system like area, date of grant, lease type, etc.. • In e-Permit system, Surrendered, expired, Idle leases are not configured, so we have to configure each lease one by one.

18. Challenges • Understanding of As - Is and To - Be • We are enhancing DCB process as per discussion with DMG officials and making it standardize in all districts after applying certain rules and procedures to follow. • Understanding of Offline Process Vs Online Process. Every one should have to come on one platform to adopt online process and standard practice.

19. Benefits of online DCB System will calculate balance and generate report instantly. DCB report will be accessible online to every DMG officials. System will automatically deduct due balance from leaseholder ledger after DD approval. Leaseholder will get alert in case of balance due. Leaseholder will not be able to generate permit until clearance of due. System will provide provision to allow leaseholder to generate permit even though balance is due in case of any court order or special permission from DMG officials. System will instantly deduct royalty difference from leaseholder ledger and map it in demand of DCB.

20. Benefits of online DCB There is no need to revise DCB manually, system will take care of modification, if any. Interest calculation will be handled by system if information is accurate. User Friendly Interface Alert for each record if any difference between DCB data and e-Permit Data. Fetch closing of previous year as opening of current year and fetch concern data from e-Permit system to demand, collection, production, dispatch and lease information. Leaseholder will be able to view their Audit report from its login. Save Paper & Correspondence work

21. URL • DCB • http://203.77.193.55/dmg-dcb/login.aspx • E-Permit • http://203.77.193.55/epermit/login.aspx

22. Thank You