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
b) The Company operates some defined benefit plans as follows which are
valued on actuarial basis:
- Leave Encashment
- 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
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
6. Insurance and escalation claims
Insurance and escalation claims are accounted for on the basis of
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
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
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
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.
- It is held primarily for the purpose of being traded.
- It is expected to be realized within twelve months after the
- 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.
All assets other than current assets are Non- Current Assets
A liability has been classified as current when it satisfies any of the
- 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
- 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.
All liabilities other than current liabilities are Non- Current
Operating Cycle for Coal India Limited
As there is no normal Operating cycle the same is considered to be 12
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
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.
a) Previous year''s figures have been regrouped and rearranged wherever
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.