NOTE – 1
ADDITIONAL NOTES ON ACCOUNTS (STANDALONE)
i) Contingent Liabilities / Commitments
- The amount remaining to be executed on capital account not provided
for is Rs. 45.44 crore (Rs. 108.23 crore).
- The amount remaining to be executed on revenue account not provided
for is Rs. 510.83 crore (Rs. 458.95 crore).
- Claims against the company not acknowledged as debts are Rs. 1802.25
crore (Rs. 23.85 crore).
- 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
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 of Rs. 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.
1802.25 crore mentioned above, with corresponding Rs. 50 crore under
deposits in the books of Coal India Limited being a holding company.
- 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 31.03.2014 stood at Rs. 168.07 crore
(Rs. 160.35 crore) and Rs. 9.75 crore (Rs. 8.72 crore) respectively.
- As on 31.03.2014 outstanding letters of credits amounted to Rs. 59.66
crore (Rs. 216.41 crore).
vi) Related party disclosure
Key management personnel for the year ending 31.03.2014: Mr. S.
NarsingRao, Chairman-Cum-Managing-Director Mr. R. Mohan Das, Director
(P&IR) Mr. A. Chatterjee, Director (Finance) Mr. N. Kumar. Director
(Technical) Mr. B. K. Saxena, Director ( Marketing)
An amount of Rs. 380.00 crore (Rs. 460.00 crore) is provided in the
accounts during the current year towards income tax.
There is no deferred tax liability of the company for this year.
However, the company is having a deferred tax asset on the basis of
calculation as per Accounting for Taxes on Income (AS-22), issued by
Institute of Chartered Accountants of India. 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. Since without considering such dividend there is no virtual
certainty of future taxable income, as a prudent practice no deferred
tax asset is recognised in the accounts.
viii) Borrowings and other Costs in respect of foreign currency loans
Borrowing and other costs (including exchange difference) in respect of
foreign currency loans obtained for subsidiary companies have been
recovered from the respective subsidiary companies.
ix) The fund available with the company from the management period
(Pre-nationalisation) of non-coking coal mines i.e. on (01.05.1973)
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 01.05.1973 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
x) Goods procured by Coal India Ltd. on behalf of Subsidiaries
As per existing practice, arrangement for procurement of goods by Coal
India Ltd. on behalf of subsidiary companies are accounted for in the
books of respective subsidiaries directly.
xi) Insurance and escalation claims
Insurance and escalation claims are accounted for on the basis of
xii) 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.
xiii) 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.
xiv) 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.
xv) Balance conf rmation
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
xvi) Revision of Schedule VI to the Companies Act 1956 ( w.e.f.
The format as per revised Schedule VI has been applied while preparing
this accounts. Following the new guidelines of the revised format
inter-alia , the following segregation have been made in the Balance
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 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 counter party,
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
xvii) Signif cant accounting policy
Significant accounting policies (Note-33) have been suitably modified /
re-drafted over previous year, as found necessary to elucidate the
accounting policies adopted by the company.
xviii) Impact due to changes in accounting policy.
During the year based on technically estimated useful life depreciation
rates of the following assets were revised:
xix) 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 31.03.2013 and figures relating to
Note nos. 20 to 32 (Profit & Loss items) correspond to 12 month period
of the previous year.
xx) Use of estimate:
In preparing the financial statements in conformity with Accounting
Principles generally accepted in India, management is sometimes
required to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosures of contingent
liability as at the date of financial statements and the amount of
revenue and expenses during the reported period. Actual results may
differ from those estimates. Any revision to such estimate is
recognized in the period in which the same is determined.
xxi) During the financial year 2013-14, a case of misappropriation of
Company''s fund for personal gain has come to the notice of the
management which is under investigation by different agencies. Pending
completion of the investigation process the impact of such
misappropriation cannot be ascertained at this stage.
xxii) The information required in paragraph 5 (viii) (a) Part II of
Schedule – VI of Companies Act., 1956, value of imports on CIF basis :