The above approach resulted in maintaining an excellent industrial
relations in the company leading to reduction in number of strikes,
production loss & man shift loss.
CSR & Sustainable Development Reserve
Company has adopted the CSR policy for F.Y. 2014-15 as per the
provisions of the Companies Act,2013. Since Sustainable Development
acvtities are merged with CSR activities, the reserve has been
transferred to General Reserve during the year. Adjustment for
depreciation against opening surplus of Statement of Profit & Loss
relates to the transition provision on introduction of depreciation
rates as per Schedule II of Companies Act 2013.
During the year the company has paid interim dividend of Rs..20.70
(Rs.29.00) per equity share of face value of Rs..10/- each for the year
2014-15 amounting to Rs. 13074.88 crore.
Corporate Dividend Tax
The above represent the Dividend Tax pertaining to the Dividend paid
over and above the Dividend received from Subsidiaries, as per
provision of Income Tax Act.
Shifting and Rehabilitation Fund
Following the direction of the Ministry of Coal the company has setup a
fund for implementation of action plan for shifting & rehabilitation
dealing with fire & stabilization of unstable areas of Eastern Coal
Fields Ltd. & Bharat Coking Coal Ltd. The fund is utilized (by ECL and
BCCL) based on implementation of approved projects in this respect.
The subsidiaries of CIL [except ECL (upto 31.12.14), CMPDIL and Coal
India Africana Limitada] are making a contribution of Rs. 6/- per tonne
of their respective coal dispatch per annum to this fund, which remains
in the custody of CIL, till they are disbursed/utilised by
subsidiaries/agencies implementing the relevant projects. However ECL
has also started contributing from January 2015 on coming out of BIFR
(Refer to Note11-Investment in ECL & BCCL).
Interest earned (Net of TDS) on bank deposits earmarked for this fund
is credited to this fund.
Pending finalisation of formalities for transfer of assets and
liabilities of erstwhile Coal Mine Authorities Ltd. and its divisions,
now Coal India Ltd, the bank borrowings of Coal India Ltd. has been
secured by creating charge against stock of coal , stock of stores and
spare parts and book debts and other assets of CIL and its subsidiary
The total working capital credit limit available to CIL is Rs. 550.00
crore, out of which fund based limit is Rs. 250.00 crore. The balance Rs.
300.00 crore limit is non-fund based and Coal India Limited is
contingently liable to the extent such facility is actually utilised by
the subsidiaries. There is no credit balance in the cash credit
- Title deeds for land acquired, in some cases, have not been
executed in favour of the company and mutation in certain cases are yet
to be executed.
- Land in possession of North Eastern Coalfields, Assam, includes
8069.70 hectares of lease hold land for which no value has been shown
in the Balance Sheet.
2 Dankuni Coal Complex / Indian Institute of Coal Management :
- Fixed assets comprising power plant and related building and other
assets having written down value as on 31.03.2015 of Rs. 12.30 crore,
continue to be let out to South Eastern Coalfields Ltd. for a nominal
lease rent of Rs.1/- per annum under cancellable operating lease
agreement. The above written down value of Rs. 12.30 crore includes land
of Rs. 3.73 crore (at cost) and building of Rs. 6.10 crore (at WDV).The
actual worth of the property is considered to be much higher than its
WDV and hence no provision is called for.
- Fixed assets comprising plant & machinery and related building and
other assets having written down value as on 31.03.2015 of Rs. 13.14
crore have been let out to Indian Institute of Coal Management, a
registered society under Societies Registration Act, 1860 for an annual
lease rent of Rs. 1.53 crore under cancellable operating lease agreement.
3 Depreciation has been provided as per Schedule II of the Companies
Act,2013. However, pending completion of technical assessment to
segregate the value of certain assets embedded within a different class
of asset, depreciation has been provided on these assets on the basis
of useful life applicable as per Schedule II of the Companies Act,2013
for the un-segregated class of asset.
NOTE - 4
NON - CURRENT INVESTMENTS - Unquoted at Cost
1 Investment in ECL and BCCL
The net worth of BCCL had turned positive at the end of the year
2012-13 and came out of BIFR, and had continued to earn profit.
Considering the improved financial position of BCCL, the investment in
share of BCCL ( Rs. 2118.00 crore & Rs. 2539.00 crore in equity shares & 5%
redeemable cumulative preference shares respectively) are valued at
During the year further investment in 6% redeemable cumulative
preference shares in ECL (redeemable at par compulsorily after 7 years
from the date of issue or after 5 years from the date of issue at the
option of CIL) was made by way of conversion of past unsecured loan due
to CIL of Rs. 518.97 crore and current account balance (receivable from
ECL) of Rs. 1532.00 crore.
The above arrangement was made as a mutually agreed mechanism between
ECL and CIL as required by the scheme of rehabilitation approved by
BIFR with subsequent modification made by State Bank of India
(monitoring agency) on 1st November, 2014 as per direction of BIFR.
On implementation of above ECL has reported a positive net-worth as on
31.12.2014 and has come out of BIFR and also continued to earn profits.
In view of the improved financial position of ECL the investment in
shares of ECL ( Rs. 2218.45 crore & Rs. 2050.97 crore in equity shares & 6%
redeemable cumulative preference shares respectively) are valued at
2 Investment in International Coal Ventures Pvt. Ltd.
CIL has entered into a Memorandum of Understanding (vide approval from
its Board in 237th meetting held on 24th November, 2007) regarding
formation of Special Purpose Vehicle (SPV) through joint venture
involving CIL/SAIL/RINL/NTPC & NMDC for acquisition of coking coal
properties abroad. The formation of the SPV had been approved by the
Cabinet, Govt. of India, vide its approval dated 8th November, 2007.
The aforesaid SPV viz. International Coal Ventures Pvt. Ltd. was
initially formed by incorporation under Companies Act, 1956 on 20th
May,2009 with an authorised capital of Rs. 1.00 crores and paid up
capital of Rs.0.70 crore. The authorised Capital and paid up Capital as
on 31.03.2015 stood at Rs.1110.00 crore and Rs. 515.63 crore respectively.
Out of above paid up capital, Coal India Ltd. is owning 0.54% share
i.e. Rs. 2.80 crore face value of equity shares.
3 Investment in CIL NTPC Urja Private Ltd.
CIL NTPC Urja Pvt.Ltd., a 50:50 joint venture company was formed on
27th April''2010 between CIL & NTPC for setting up of joint integrated
power plants along with mining of coal. Coal India Ltd. is holding 50%
equity shares of face value of Rs. 0.02 crore in the joint venture
4 Investment in Coal India Africana Limitada (100% owned subsidiary
Coal India Ltd., has formed a 100% owned subsidiary in Republic of
Mozambique, named Coal India Africana Limitada to explore
non-coking coal properties in Mozambique. The initial paid up capital
on such formation (known as Quota Capital) is Rs. 0.01 crore (USD
ADDITIONAL NOTES ON ACCOUNTS (Standalone)
i) Contingent liabilities / Commitments
a) Capital commitment : Rs.21.28crore (Rs.45.44 crore)
b) Revenue commitment : Rs.327.04 crore (Rs.510.83 crore)
c) Claims against the company : Rs.1806.13 crore (Rs.1802.25 crore)
not acknowledged as debt
d) The Competition Commission of India (CCI), on the basis of
complaints by few coal customers (called as ''informant'' in the
case) against certain conducts of M/S Coal India Limited, M/S Western
Coalfields Limited, M/S South Eastern Coalfields Limited, M/S Mahanadi
Coalfields Limited (called as ''opposite party'' in the case) heard
the case and vide its order dated 09.12.2013, had inter-alia imposed a
penalty of Rs. 1773.05 crore which is to be deposited within 60 days of
receipt of the order.
The appeal against the above order has already been filed and the
hearing is taking place from time to time.
The Competition Appellate Tribunal vide its interim order dated
13.01.14, has granted status quo until further orders, in respect of
implementation of directions/restraints (other than the imposition of
penalty) ordered by CCI on 09.12.13.
Further, the Competition Appellate Tribunal in the hearing dated
26.02.2014 has agreed to grant stay in favour of CIL on the order of
penalty of Rs. 1773.05 crore pending disposal of Appeal, on the condition
that CIL deposits a token penalty ofRs. 50 crore within 3 weeks from the
date of the order.. Accordingly the said sum of Rs. 50 crore has been
deposited on 12th March 2014.
In view of the above, the entire amount of penalty of Rs. 1773.05 crore
under appeal has been shown as contingent liability and included with Rs.
1806.13 crore mentioned in (c ) above, with corresponding Rs. 50 crore
under deposits in the books of Coal India Limited being a holding
e) The company has given guarantee for loans obtained by subsidiaries
from Export Development Bank of Canada (EDC) and Liebherr France the
outstanding balance of which as on 31.03.2015 stood at Rs.170.21 crore (Rs.
168.07 crore) and Rs.7.40 crore (Rs.9.75 crore) respectively.
f) As on 31.03.2015 outstanding letters of credits amounted to Rs.0.13
crore (Rs.59.66 crore).
ii) Disclosure for employee benefits:
a) Provident Fund:
Company pays fixed contribution to 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.26.59 crore (Rs.26.45
crore) has been recognized in the statement of profit & loss (Note 24).
b) The disclosures as per actuary''s certificate for employee benefits
for gratuity and leave encashment are given below:-
vi) Related party disclosure :
Key management personnel for the year ending 31.03.2015:
Dr. A. K. Dubey, Additional charge of Chairman-Cum-Managing Director
w.e.f. 26th June, 2014 to 4th Jan,2015 Mr. S. Narsing Rao,
Chairman-Cum-Managing-Director (Upto 25th June,2014)
Mr. S. Bhattacharya, Chairman-Cum-Managing Director w.e.f 5th Jan,2015
Mr. R. Mohan Das, Director (P&IR)
Mr. A. Chatterjee, Director (Finance) (Upto 28th Feb,2015)
Mr. C.K. Dey, Director (Finance) (From 1st Mar,2015)
Mr. N. Kumar. Director (Technical)
Mr. B. K. Saxena, Director ( Marketing)
vii) Taxation :
An amount of Rs.230.00 crore (Rs.380.00crore) is provided in the accounts
during current year towards income tax. However there is no deferred
tax liability of the company for this period.
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.
viii) The fund available with the company from the management period
(Pre-nationalisation) of non-coking coal mines i.e. on 1.5.1973
The fund available with the company against cash, bank balances, road
coupons etc. taken over by the company from the management period of
non-coking coal mines i.e. on 1.5.1973 has been adjusted against the
deposit made by the company on behalf of the Govt of India to
Commissioner of Payments on account of surplus of the said management
ix) 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
x) Insurance and escalation claims
Insurance and escalation claims are accounted for on the basis of
xi) 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.
xii) 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.
xiii) Current Assets, Loans and Advances etc.
In the opinion of the Management Current Assets, Loans and Advances
etc. have realisable value in the course of business at least equal to
the net amount at which they are stated.
xiv) Balance confirmation
Balance confirmation/reconciliation is carried out for bank balances,
all major loans & advances, long term liabilities and current
liabilities. Provision is taken against all doubtful unconfirmed
xv) Classification as per Schedule III of the Companies Act 2013
The classification of Assets and Liabilities into Current Assets
and Non Current Assets has been made in Balance Sheet as per below
mentioned prescribed guidelines:-
An asset has been classified as current when it satisfies any of the
- 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
- 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
xvi) During the financial year 2013-14, a case of misappropriation of
Company''s fund for personal gain came to the notice of the management
which is still under investigation by different agencies. Pending
completion of the investigation process the impact of such
misappropriation cannot be ascertained at this stage.
xvii) In the absence of notification of rules by the central/state
Governments the effects of the provisions of the The Mines and
Minerals (Development and Regulation) Amendment Act, 2015 has not
been considered in the Accounts.
xviii) The information required in paragraph 5 (viii) (a) Part II of
Schedule - III of Companies Act., 2013, value of imports on CIF basis :
xxiii) 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.
xxiv) Change in Accounting Policy regarding capitalisation of certain
costs in acquisition of land.
During the year the Accounting Policy on capitalisation of value of
land acquired has been changed, in as much as compensation in lieu of
employment incurred for displaced persons is being considered as part
of cost of land acquired and capitalised. Such cost was previously
being charged off as revenue expenses. Such change is made effective
from the financial year 2014-15 onwards only and no such transaction
has taken place during the year in NEC, the only production unit under
xxv) Previous year''s figures
Previous year''s figures have been regrouped and rearranged wherever
Figures in the parentheses relating to Note nos. 1 to 19 (Balance Sheet
items) correspond to position as on 31.03.2014 and figures relating to
Note nos. 20 to 32 (Profit & Loss items) correspond to year ended
Note 1 to 19 form part of the Balance Sheet as at 31st March 2015 and
20 to 32 form part of Statement of Profit & Loss for the period ended
on that date. Note - 33 represents Significant Accounting Policies and
Note - 34 represents additional notes on the Accounts.