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Coal India

BSE: 533278|NSE: COALINDIA|ISIN: INE522F01014|SECTOR: Mining & Minerals
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« Mar 15
Notes to Accounts Year End : Mar '16
1.  Contingent Liabilities & Commitments
 
 a) Capital commitment : Rs. 79.97Crore (Rs. 21.28 Crore)
 
 b) Revenue commitment : Rs. 68.53 Crore (Rs. 327.04 Crore)
 
 c) Claims against the company : Rs. 33.37Crore (Rs. 1806.13 Crore) not
 acknowledged as debt
 
 d) The Competition Commission of India (CCI), on the basis of
 complaints by few coal customers against certain conducts of Coal India
 Limited, Western Coalfields Limited, South Eastern Coalfields Limited
 and Mahanadi Coalfields Limited, heard the case and vide its order
 dated 09.12.2013, had inter-alia imposed a penalty of Rs. 1773.05 Crore
 against which appeal was filed in the Competition Appellate Tribunal
 which directed to deposit Rs. 50 Crore there against
 
 Subsequently vide order dated 17th May, 2016, the Tribunal has set
 aside the order of CCI and directed to hear the case afresh as a result
 the penalty of Rs. 1773.05 stands cancelled
 
 e) The company has given guarantee for loans obtained by subsidiaries
 from Export Development Bank of Canada and Liebherr France the
 outstanding balance of which as on 31.03.2016 stood at Rs. 174.14 Crore
 (Rs. 170.21 Crore) and Rs. 7.77 Crore (Rs. 7.40 Crore) respectively
 
 f) As on 31.03.2016 outstanding letters of credit isRs. NIL (Rs. 0.13
 Crore) and bank gaurantee issued isRs. 11.40 Crore (Nil) 
 
 2.  Employee Benefits: Recognition and Measurement (AS-15)
 
 a) Provident Fund:
 
 Company pays fixed contribution towards Provident Fund and Pension Fund
 at predetermined rates to a separate trust named Coal Mines Provident
 Fund (CMPF), which invests the fund in permitted securities. The
 contribution towards the fund during the year is Rs. 27.73 Crore (Rs.
 26.59 Crore) has been recognized in the Statement of Profit & Loss
 (Note 24)
 
 b) The Company operates some defined benefit plans as follows which are
 valued on actuarial basis:
 
 (i) Funded
 
 - Gratuity
 
 - Leave Encashment
 
 (ii) Unfunded
 
 - Life Cover Scheme
 
 - Settlement Allowance
 
 - Group Personal Accident Insurance
 
 - Leave Travel Concession
 
 - Medical Benefits
 
 - Compensation to dependent on Mine Accident Benefits
 
 3.  Related party disclosure
 
 (a) Related parties and their relationship Key Management Personnel:
 
 Mr. S. Bhattacharya, Chairman-Cum-Managing Director
 
 Mr. R. Mohan Das, Director (P&IR)
 
 Mr. C.K. Dey, Director (Finance)
 
 Mr. N. Kumar. Director (Technical)
 
 Mr. B. K. Saxena, Director (Marketing) (upto 31.01.2016)
 
 Mr. S.N. Prasad, Director (Marketing) (w.e.f. 01.02.2016)
 
 Mr. M Viswanathan, Company Secretary
 
 (b) Transactions with related parties for the year ending 31.03.2016
 
 4.  Taxation
 
 An amount of Rs.170.00 Crore (Rs. 230.00 Crore) is provided in the
 accounts during current year towards income tax.
 
 The Company is having a deferred tax asset (net) on the basis of
 calculation as per Accounting for Taxes on Income (AS-22), issued by
 Institute of Chartered Accountants of India. Since as per existing
 provisions of tax laws the dividend received from subsidiaries, which
 accounts for the income of Coal India Ltd, is tax free w.e.f. financial
 year 2003-04 and since without considering such dividend there is no
 virtual certainty of generation of future taxable income, as a prudent
 practice no deferred tax asset is recognised in the accounts.
 
 5.  Goods procured by Coal India Ltd. on behalf of Subsidiaries
 
 As per existing practice, goods purchased by Coal India Ltd. on behalf
 of subsidiary companies are accounted for in the books of respective
 subsidiaries directly.
 
 6.  Insurance and escalation claims
 
 Insurance and escalation claims are accounted for on the basis of
 admission/final settlement.
 
 7.  Provisions made in the Accounts
 
 Provisions made in the accounts against slow moving/non-moving/obsolete
 stores, claims receivable, advances, doubtful debts etc. are considered
 adequate to cover possible losses.
 
 8.  Micro, Small and Medium Enterprises
 
 There is no reported Micro, Small and Medium Enterprises as defined in
 the The Micro, Small and Medium Enterprises Development Act, 2006, to
 whom the company owes dues.
 
 9.  Current Assets, Loans and Advances etc.
 
 In the opinion of the Management, assets other than fixed assets and
 non-current investments have a value on realisation in the ordinary
 course of business at least equal to the amount at which they are
 stated.
 
 10.  Current Liabilities
 
 Estimated liability has been provided where actual liability could not
 be measured including municipal tax in some of the buildings pending
 assessment by the collecting authority.
 
 11.  Balance Confirmations
 
 Balance confirmation/reconciliation is carried out for cash & bank
 balances, certain loans & advances, long term liabilities and current
 liabilities. Provision is taken against all doubtful unconfirmed
 balances.
 
 12.  Classification as per Schedule III of the Companies Act 2013
 
 The classification of Assets and Liabilities into Current &
 Non-current has been made in Balance Sheet as per below mentioned
 prescribed guidelines:-
 
 Current Assets
 
 An asset has been classified as current when it satisfies any of the
 following criteria:- - It is expected to be realized in, or is intended
 for sale or consumption in, the Company''s normal operating cycle i.e.
 one year.
 
 - It is held primarily for the purpose of being traded.
 
 - It is expected to be realized within twelve months after the
 reporting date.
 
 - It is cash or cash equivalent unless it is restricted from being
 exchanged or used to settle a liability for at least twelve months
 after the reporting date.
 
 Non-Current Assets
 
 All assets other than current assets are Non- Current Assets
 
 Current Liabilities
 
 A liability has been classified as current when it satisfies any of the
 following criteria:
 
 - It is expected to be settled in the company''s normal operating cycle
 i.e. one year.
 
 - It is held primarily for the purpose of being traded.
 
 - It is due to be settled within twelve months after the reporting
 date.
 
 - The company does not have an unconditional right to defer settlement
 of the liability for at least twelve months after the reporting date.
 Terms of a liability that could, at the option of the counterparty,
 result in its settlement by the issue of equity instruments do not
 affect its classification.
 
 Non-Current Liabilities
 
 All liabilities other than current liabilities are Non- Current
 Liabilities.
 
 Operating Cycle for Coal India Limited
 
 As there is no normal Operating cycle the same is considered to be 12
 months period.
 
 13. During the financial year 2013-14, a case of misappropriation of
 Company''s fund for personal gain came to the notice of the management.
 The matter has been investigated by different agencies and appropriate
 action for recovery is underway. As per the estimate of the internal
 audit department of Coal India Limited, the amount involved is Rs.1.17
 Crore approximately.
 
 14. Pursuant to notification no. G.S.R 632 E dated 14.08.2015 issued by
 the Ministry of Mines (Government of India) regarding formation of
 National Mineral Exploration Trust Fund u/s 9C of the Mines & Minerals
 (Development and Regulation) Amendment Act, 2015 (MMDR Act), Company
 has collected from customers additional royalty @ 2% on royalty
 amounting Rs. 0.29 Crore upto 31.03.2016 which will be deposited on
 allotment of code by collecting authority. However, pending
 notification by the Assam State Government, the provisions of Section
 9B of the MMDR Act, 2015 regarding formation of District Mineral
 Foundation has not been implemented.
 
 15.  Details of Loans given, Investments made and Guarantee given
 covered u/s 186(4) of the Companies Act, 2013
 
 Loans given and Investments made are given under the respective heads.
 
 Corporate guarantees given by the company in respect of loans as at
 31st March, 2016
 
 16.  Significant accounting policy
 
 Significant accounting policy (Note-33) has been suitably modified /
 re-drafted over previous year, as found necessary to elucidate the
 accounting policies adopted by the Company.
 
 17.  Others
 
 a) Previous year''s figures have been regrouped and rearranged wherever
 considered necessary.
 
 b) Previous year''s figures in Note No. 1 to 34 are in brackets.
 
 c) Note 1 to 19 form part of the Balance Sheet as at 31st March, 2016
 and 20 to 32 form part of Statement of Profit & Loss for the year ended
 on that date. Note – 33 represents Significant Accounting Policies and
 Note – 34 represents Additional Notes on the Accounts.
Source : Dion Global Solutions Limited
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