A project report on ratio analysis 2016

Page | 1
A PROJECT REPORT
Entitled: A Brief Study on Ratio Analysis in Eastern
Coalfield Limited.
Under the guide of
(Faculty Guide)
Dr. Shakti Prasad Tiwari ( Mob:-9430434342)
(Industry Guide)
Md. Tashfeen, Chief Manager (Cost & Budget)
Mr. Roshan Kumar, Assistant Manager (Central Accounts)
Submitted by
Srabani Dutta
Roll No. – 1411004502
Submitted for the partial requirements for the degree of Masters in
Business Administration in Sikkim Manipal University, India.

Page | 2
Student Declaration
I hereby declare that the Project Report
A Brief Study on Ratio Analysis in Eastern Coalfield Limited
is submitted for the partial requirement for the degree of Masters of
Business Administration from Sikkim Manipal University, India. This is not
submitted for the purpose of any degree, diploma or fellowship from other
Universities.
Date: ___________ Name: Srabani Dutta
Place: ___________ Roll No.: 1411004502

Page | 3
Guide Certificate
This is to certify that project report entitled:
A Brief Study on Ratio Analysis in Eastern Coalfield Limited
submitted in partial fulfilments of the requirement for the degree of
Masters of Business Administration at Sikkim Manipal University.
Student Name: Srabani Dutta
Roll No. : 1411004502
has named under my supervision and guidance and no part of this report
has been submitted for the award of any other degree, diploma,
fellowship or other similar title or prizes and that the work has not been
published in journal or magazine.
Dr. Shakti Prasad Tiwari
( Mob:-9430434342)

Page | 4
Examiner’s Certification:
The project report of
Srabani Dutta
Roll No.- 1411004502
is approved and is acceptable in quality and format.
Examiner:
Name: _________________
Qualification: _________________
Designation: ____________________

Page | 5
Acknowledgement
I am using this opportunity to express my gratitude to everyone who
supported me throughout the course of this MBA project. I am thankful
for their aspiring guidance, invaluably constructive criticism and friendly
advice during the project work. I am sincerely grateful to them for their
truthful and illuminating views on a number of issues related to the
project.
I express my warm thanks to Mr. Kajal Dey for his support and guidance
at Sikkim Manipal University.
I would also like to thank my project external guide Mr. Md. Tashfeen
from Cost & Budget and Mr. Roshan Kumar from Central Accounts
and all the people who provided me with the facilities being required and
conductive conditions for my MBA project.
Thank you,
Srabani Dutta

Page | 6
Table of Contents
Executive Summary ................................................................................................................... 7
Introduction...................................................................................................................................... 8
Industry Profile ...........................................................................................................................11
History .............................................................................................................................................13
Title: A Brief Study on Ratio Analysis in Eastern Coalfield Limited ...............16
Company Profile...........................................................................................................................17
Research Methodology.............................................................................................................18
Financial Statement...................................................................................................................19
Data Analysis and Interpretation.......................................................................................20
Analysis and Interpretation of Ratio.................................................................................83
Limitations......................................................................................................................................93
Findings............................................................................................................................................94
Suggestions....................................................................................................................................95
Conclusion.......................................................................................................................................96
Bibliography...................................................................................................................................97

Page | 7
EXECUTIVE SUMMARY
Ratio Analysis is one of the techniques of financial analysis where ratios
are used as a yardstick for evaluating the financial condition and
performance of a firm. Analysis and interpretation of various accounting
ratios gives a better understanding of financial and performance of firm.
Trend ratios indicate the direction of change in the performance –
improvement, deterioration or constancy – over the year.
Objective of the study:
1. To help the management in its planning and forecasting activities.
2. To evaluate operational efficiency, liquidity, and solvency of firm.
3. To help the management in having effective control over the
activities of different departments.
4. To compare the previous five years and present year performance
of the company.
5. To give suggestion and recommendation based on the study.

Page | 8
INTRODUCTION
Ratio Analysis is a technique of analyzing the financial statement of
industrial concerns. Now a day this technique is sophisticated and is
commonly used in business concerns. Ratio Analysis is not an end but it is
only means of better understanding of financial strength and weakness of
a firm.
Ratio Analysis is one of the most powerful tools of financial analysis
which helps in analyzing and interpreting the health of the firm. Ratio’s
are proved as the basic instrument in the control process and act as back
bone in schemes of the business forecast.
With the help of ratio we can determine
 The ability of the firm to meet its current obligations.
 The limit or extent to which the firm has used its borrowed funds.
 The efficiency with which the firm is utilizing in generating sales
revenue.
 The operating efficiency and performance of the company.
Classification of Ratios
Ratios can be classified into different categories depending upon the
basis of classification.
I. TRADITIONAL CLASSIFICATION
Traditional classification has been on the basis of financial
statements, on which ratio may be classified as follows.
1. Profit & loss account ratios.
E.g. Gross Profit Ratio, Net Profit Ratio, Operating Ratio etc.
2. Balance sheet ratio.
E.g. Current Ratio, Debt Equity Ratio, Working Capital Ratio
etc.
3. Composite/Mixed Ratio.

Page | 9
E.g. Stock Turnover Ratio, Debtors Turnover Ratio, Fixed
Assets Turnover Ratios etc.
II. FUNCTIONAL CLASIFICATION OF RATIOS
Functional ratios
1. Liquidity ratios
a) Current Ratio
b) Quick Ratio
2. Leverage ratios
a) Debt-equity Ratio
b) Current Asset to Proprietor’s fund Ratio
III. PROBABILITY RATIOS
a) Gross Profit Ratio
b) Operating Profit Ratio
c) Return On Investment
IV. ACTIVITY RATIO
1. Inventory Turnover Ratio
2. Asset Turnover Ratio:
a. Fixed Asset Turnover Ratio
b. Current Asset Turnover Ratio
3. Working Capital Turnover Ratio

Page | 11
INDUSTRY PROFILE
EASTERN COALFIELDS LIMITED
(A subsidiary of Coal India Limited)
Eastern Coalfield Limited (ECL) is a coal producer based in India. The
company came into existence in 1975 after nationalization of coal
mines in India. It is one of the eight fully owned subsidiaries of Coal
India Limited. The company has its headquarters at Sanctoria,
Asansol in West Bengal.
It at present owns 105 numbers of operating mines out of which 81 are
underground mines, 24 are opencast mines.
Background
 Eastern Coalfields Limited (The Company) was incorporated as a
Private Limited Company on 1st November,1975 as a 100%
Subsidiary of Coal India Limited (CIL) upon taking over of Assets
and Liabilities vested with the Eastern Division of Coal Mines
Authority Limited ( former name of Coal India Limited). The
Company is primarily engaged in business of production and sale of
coal.
 Pending completion of legal formalities for transfer of assets and
liabilities to the Company certain Assets including Mining Rights etc.
continue to be in the name of CIL.
 The formal transfer Deeds/Agreement for Assets & Liabilities
transferred and taken over by the Company in respect of coal Mines
Labour Welfare Organisation, Kalla & Central hospital along with 4
other Hospitals/Dispensaries, Mines Rescue Station, Barakar
Engineering & Foundry Works are yet to be finalised and executed
in favour of the Company.
Fixed Assets and Capital-Work-in-Progress
 Building includes Roads & Culverts situated in the
residential/office/mining areas.
 Physical verification in respect of all fixed assets and in respect of
Plant & Machinery each worth Rs. 1.00 lakh or more have been
carried out as per programme. Resultant differences on completion
of formalities have been adjusted.

Page | 12
 The Net value of Assets taken over on nationalization of coal mines
amounting to Rs. 8.17 crores, details of which are not available,
under Coal Mines Nationalization Act, 1973 have been taken into
account and shown under the group of tangible assets and against
which full provision has been made.
Inventory
 The enquiry proceedings by CBI, Dhanbad for shortage of coal at
Rajmahal OCP of Rs. 19.54 lakhs tonne valued at Rs. 63.58 crore in
2007-08 has been completed in 2010-2011. The report on the same
has been forwarded to Chairman, CIL for information and to advice
the Vigilance department for taking action against the charged
officers as per CBI order. The outcome of the order is still to be
received.
 Coal of 471408 M.T. (471408 M.T.) mixed with matti etc. is non-
vendible and has been taken at NIL value.
SUNDRY DEBTORS
Provision for Sundry Debtors is made on case to case basis. Normally no
provision of Sundry Debtors is made on unsettled amount of Debtors in
the initial year. In the 2nd year provision is made up to 50% amount of
unsettled amount of debtors, and the rest is provided in the 3rd year if it
remains unsettled.

Page | 13
HISTORY
History and Formation Of Coal India Limited
With dawn of the Indian independence a greater need for coal production
was felt in the First Five Year Plan. In 1951 the Working Party for the coal
Industry was set up which included representatives of coal industry,
labour unions and government which suggested the amalgamation of
small and fragmented producing units. Thus the idea for a nationalized
unified coal sector was born. Integrated overall planning in coal mining is
a post-independence phenomenon. National Coal Development
Corporation was formed with 11 collieries with the task of exploring new
coalfields and expediting development of new coal mines.
With the Government's national energy policy the near total national
control of coal mines in India took place in two stages in 1970s. The
Coking Coal Mines (Emergency Provisions) Act 1971 was promulgated by
Government on 16 October 1971 under which except the captive mines of
IISCO, TISCO, and DVC, the Government of India took over the
management of all 226 coking coal mines and nationalised them on 1
May, 1972. Bharat Coking Coal Limited was thus born. Further by
promulgation of Coal Mines (Taking over of Management) Ordinance 1973
on 31 January 1973 the Central Government took over the management
of all 711 non-coking coal mines. In the next phase of nationalization
these mines were nationalized with effect from 1 May 1973 and a public
sector company named Coal Mines Authority Limited (CMAL) was formed
to manage these non coking mines.
Corporate Structure and Subsidiary Companies
Coal India is a holding company with seven wholly owned coal producing
subsidiary companies and one mine planning & consultancy company. The
producing companies are:
1. Eastern Coalfields Limited (ECL), Sanctoria, West Bengal
2. Bharat Coking Coal Limited (BCCL), Dhanbad, Jharkhand
3. Central Coalfields Limited (CCL), Ranchi, Jharkhand
4. South Eastern Coalfields Limited (SECL), Bilaspur, Chattisgarh
5. Western Coalfields Limited (WCL), Nagpur, Maharashtra
6. Northern Coalfields Limited (NCL), Singrauli, Madhya Pradesh
7. Mahanadi Coalfields Limtied (MCL), Sambalpur, Orissa

Page | 14
The consultancy company is Central Mine Planning and Design Institute
Limited (CMPDIL), Ranchi, Jharkhand.
Origin of Eastern Coalfields Limited (ECL)
Eastern Coalfields Limited (ECL) owes its origin to “Raniganj Coalfields”
which is the birth place of coal mining in the Country. In 1774, first
mining operation in the Country was started in Raniganj Coalfields by
Sumner & Heatly, a British mining firm at the instance of Warren Hestings
to procure coal mainly for the manufacture of arms and ammunition. In
1820, first Coal Company, M/s. Alexander & Company was established in
India. In 1835, first Indian enterprise, M/s. Carr & Tagore Company was
formed when Raniganj coalfields passed into the hands of Prince
Dwarakanath Tagore, the grandfather of Nobel Laureate Poet
Rabindranath Tagore. In 1843, the first joint stock Coal Company, M/s.
Bengal Coal Company, was formed after amalgamating M/s. Carr &
Tagore Company and another coal company, M/S Gilmore Homfray & Co.
then in existence. Since then, underground coal mining operation had
been continuing in Raniganj Coalfields by numerous small owners.
Raniganj Coalfields remained the principal producer of coal in India in the
19th Century and for a considerable period of the 20th Century.
Eastern Division of earlier Coal Mines Authority Limited (CMAL) was
converted into Eastern Coalfields Limited (ECL) and was incorporated on
November 1, 1975 as a wholly owned subsidiary of CIL under Companies
Act, 1956. ECL took over 414 mines, 314 in West Bengal, including all the
private sector coal mines of Raniganj Coalfields and 100 in Jharkhand
(then Bihar), which were then under Eastern Division of CMAL, and
regrouped into 123 mines i.e. 84 Profile of Eastern Coalfields Limited 64
in W.B. and 39 in Jharkhand. At the time of nationalization, only around
214 out of the 414 mines taken over were working. Most of the mines,
with small base hold, had shafts fitted with old stream winders having
limited capacity and there was hardly any mechanized open cast mines in
ECL.
Nationalisation and After
In 1973, all Non-coking Coal Mines were nationalized and brought under
Eastern Division of Coal Mines Authority Limited. In 1975 Eastern
Coalfields Limited, a Subsidiary of Coal India Limited (C.I.L) was formed
and inherited all the private sector coal mines of Raniganj Coalfields.
Geographic Location & Area

Page | 15
ECL mining leasehold area is 753.75 Sq.Kms and surface right area is
237.18 Sq.Kms. It is situated in two States-West Bengal and Jharkhand.
Raniganj Coalfield is spreading over Burdwan, Birbhum, Bankura and
Purulia Districts in West Bengal. Saherjuri Coalfield in Deoghar District of
Jharkhand which is being worked as SP Mines Area under ECL. Hura
Coalfields in Godda District of Jharkhand is also under ECL, where ECL’s
largest opencast mine Rajmahal is situated. Heart of Raniganj Coalfields is
located on the north of Ajoy while Mejia and Parbelia are on south of
Damodar River. In Dhanbad District, Mugma field lies on the west of
Barakar River. Formation of coal seems has occurred mainly in two
sequence at ECL- Raniganj measures & Barakar measures. Raniganj
measures covers the entire coalfield of Raniganj-Pandaveswar, Kajora,
Jhanjra, Bankola, Kenda, Sonepur, Kunustoria, Satgram, Sripur, Sodepur
& Partly at Salanpur Areas. Barakar measures covers two areas Salanpur
& Mugma Areas, SP_Mines & Rajmahal Areas are mainly related to
Barakar measure & Talchair series.
Area of Operations
Total command area of ECL is 1620 Sq.km. covering different coalfields as
shown in Table 1
Table 1: Command Area of ECL for Operations
Raniganj & Mugma
Coalfields
1530 Sq. Km Located in Burdwan,
Birbhum, Bankura,
Purulia districts of West
Bengal and Dhanbad
district of Jharkhand
Saherjuri &
Rajmahal Fields
90 Sq. Km Located in Deoghar
and Godda districts of
Jharkhand
Source: Annual Report & Accounts of ECL 2009-10

Page | 16
TITLE: A Brief Study on Ratio Analysis
in Eastern Coalfield Limited
Methodology
The study is conducted at Eastern Coalfield Limited, CMD's Office,
Sanctoria.
Sources of Data Collection
The data is collected in two types
1. Primary Data
2. Secondary Data
1. Primary Data:
It will be collected with the help of interaction with the employee of
ECL, and the internal guide.
2. Secondary Data:
Source like company annual report 2014-15.

Page | 17
Company Profile
Name of the company: Eastern Coalfields Limited
Address : Sanctoria, P.O. - Disergarh Dist.- Burdwan ( W.B.)
Registered Office : CMD's Office, Sanctoria, Post - Disergarh, District-
Burdwan, Pin – 713333
Mission Statement : To produce and market the planned quantity of
coal and coal products efficiently and economically in an eco- friendly
manner with due regard to safety, conservation and quality.
Vision Statement : To emerge as a global player in the primary
energy sector committed to provide energy security to the country by
attaining environmentally & socially sustainable growth through best
practices from mine to market.
Bankers During 2014-15:
State Bank of India, Axis Bank, Bank of Baroda,
United Commercial Bank, Union Bank of India, United Bank of India,
Oriental Bank of Commerce, Canara Bank, Bank of India, Punjab National
Bank.
Primary Line of Company:
Coal Production

Page | 18
RESEARCH METHODOLOGY
Research
Research is nothing but systematic investigation and study of sources &
materials. it establish facts and it reach conclusions.
Methodology
Methodology is nothing but a body of methods used in a particular
activity.
 The methodology includes the personal interaction with the finance
manager.
 Selection of data: From the Financial Statements of the firm for last
two years; i.e. from
Financial Statements for the year 2013-14
Financial Statements for the year 2014-15
Period: The Study covers a period of two years data from 2013-14, 2014-
15 mean an Accounting year of the company consisting of 365 working
days.
Measurement Technique / Statistical Tools
 Accounting Ratios.
 Financial Statements of the Company.

Page | 19
FINANCIAL STATEMENT
A financial statement is a organized collection of data according to logical
and consistent accounting procedures. Its purpose is to convey
understanding of some financial aspects of business firm. It may show a
position at a moment in time as in the case of balance sheet or may
reveal a series of activities over a given period of time as in case of
income statement.
Financial statement are prepared for the management to deal with,
a. Status of investments.
b. Results achieved during a given period under review a financial
statement
generally refers to the following;
1. Income Statement - The income statement also termed as (profit
or loss account) is generally considered to be the most useful of all
financial statements. It explains what has happened to a business
as a result of operations between two balance sheet dates. It
discloses the revenue realized from the sale of goods and the costs
incurred in the process of producing the scheme. It tells the story of
Progress or decline over given period and why and how an indicated
result was achieved.
2. Balance sheet - It is statement of financial position of a business
at particular moment of time and the claims of the owners and
outside against those assets at that time.
3. Statement of Retained Earnings - The term retained earnings
means the accumulated excess of earnings over losses and
dividends. The balance shown income statement is transferred to
the balance through this statement. After making necessary
appropriations. It is thus a connecting link between the balance
sheet and income statement. This statement is also termed as
project and loss appropriation account in case of companies.

Page | 20
DATA ANALYSIS AND INTERPRETAION
BALANCE SHEET (CONSOLIDATED)
As at 31st March, 2015
(Rs. In Crores)
Notes AS AT 31.03.2015 AS AT 31.03.2014
I
1)
2)
3)
4)
EQUITY AND
LIABILITIES
Shareholder’s Fund
a. Share Capital
b. Reserves &
Surplus
Non-Current
Liabilities
a. Long Term
Borrowing
b. Deffered Tax
Liabilities
c. Other Long
Term
Liabilities
d. Long Term
Provisions
Minority Interest
Current Liabilities
a. Short Term
Borrowing
b. Trade
Payables
c. Other Current
Liabilities
d. Short Term
Provisions
1
2
3
4
5
6
7
8
9
4,269.42
(2716.00)
164.33
--
18.92
3,135.23
129.01
72.56
3,334.07
1,051.41
1,553.42
3,318.48
_
4,587.05
2,218.45
(3804.82)
681.29
--
17.99
4,042.55
1,714.51
63.86
2,854.20
858.76
(1,586.37)
4,741.83
_
5,491.33
Total 9,458.95 8,646.79
II ASSETS

Page | 21
1)
2)
Non-Current Assets
a. Fixed Assets
i. Tangible
Assets- Gross
Block
Less: Depreciation,
Impairment &
Provisions
Net Carrying Value
ii. Intangible
Assets- Gross
Block
Less: Depreciation,
Impairment &
Provisions
Net Carrying Value
iii. Capital Work –
in-Progress
iv. Intangible
Assets Under
Development
b. Non-Current
Investment
c. Deferred Tax
Asset (Net)
d. Long Term
Loans &
Advances
e. Other Non-
Current Assets
Current Assets
a. Current
Investments
b. Inventories
c. Trade
Receivables
d. Cash & Bank
Balance
e. Short Term
Loans &
Advances
f. Other Current
Assets
10A
10A
10B
10C
11
12
13
14
15
16
17
18
19
5,276.83
3,843.25
1,341.88
1,210.06
0.03
551.02
1,426.88
4,563.88
377.81
345.7
1,433.58
131.82
265.86
80.19
0.08
91.95
172.71
17.41
7,265.35
4,863.43
3,607.44
1,295.49
1,167.69
0.03
450.52
1,720.01
3,852.00
205.25
270.65
1,255.99
127.80
106.87
30.36
0.13
510.99
99.86
16.33
6,498.46
Total 9,458.95 8,646.79
Significant Accounting Policies 33
Additional Notes on Accounts 34

Page | 22
The Notes referred to above form an integral part of Balance Sheet.
STATEMENT OF PROFIT & LOSS
For the Year Ended 31st March, 2015
(Rs. In Crore)
Notes For the Year
ended 31.03.15
For the Year
ended 31.03.14
INCOME
A. Sale of Coal, coke etc
Less:- Excise Duty
Other Levies
Net Sales
B. Other Operating Revenue (Net)
i) Revenue from Operations
(A+B)
ii) Other Income
20
21
13,413.84
(655.62)
(2,739.68)
10,018.54
221.99
10,240.53
672.26
11,945.92
(595.80)
(2,462.33)
8,887.79
221.66
9,109.45
491.25
Total Revenue (I+II) 10,912.79 9,600.70
Expenses
Cost of Material Consumed
Change in Inventories of Finished
Goods Work in Progress and Stock in
Trade
Employee Benefit Expenses
Power & Fuel
Corporate Social Responsibility
Expenses
Repairs
Contractual Expenses
Finance Costs
Depreciation/Amortization/Impairmen
t
Provisions
Write Off
22
23
24
--
25
26
27
28
--
29
30
797.82
(84.84)
5,850.50
475.78
24.85
101.22
1,025.03
--
244.79
99.58
73.42
735.36
5.64
5,512.57
463.77
--
76.47
820.53
--
213.50
(131.57)
127.70

Page | 23
Overburden Removal Adjustment
Other Expenditure
--
31
174.42
349.99
210.00
264.09
Total Expenses 9,132.56 8,298.06
Profit/(Loss) before Prior Period,
exceptional and
extraordinary items and tax
Prior Period Adjustment { charges/
(Incomes) }
Exceptional Items
Profit/(Loss) before
extraordinary items and tax
Extraordinary Items { charges/
(Incomes) }
Profit/(Loss) before Tax
Less: Tax Expense
- Current Year
- Add: MAT Credit Entitlement
- Deffered Tax
- Earlier Years
Profit/(Loss) for the period
Earning per equity share (in Rs.)
(Face Value of Rs. 1000/- per share)
1. Basic
2. Diluted
Significant Accounting Policies
Additional Notes on Accounts
32
--
--
--
--
--
--
--
--
--
--
--
33
34
1,780.23
(2.18)
--
1,782.41
--
1,782.41
398.59
(174.62)
419.04
--
1,139.40
513.60
--
1,302.64
3.36
--
1,299.28
--
1,299.28
73.84
--
353.21
--
872.23
393.17
--
The Notes referred to above form an integral part of Profit & Loss
Account.

Page | 24
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST MARCH, 2015
(Rs. In Crores)
31.03.2015 31.03.2014
A. Cash Flow from
Operating Activities
Net Profit Before Taxation
(Add / Less) Non Operating
Expenses / (Non Operating
Incomes):
Liability Written Back
Depreciation / Impairment
Interest Income
OBR Adjustment
Profit on Sale of Asset
Provision for Loss of Asset /
Surveyed Off Asset
Debit / (Credit) for Foreign
Exchange Fluctuation
Operating Profit before
working capital changes
Decrease / (Increase) in Sundry
Debtors
Decrease / (Increase) in Loans &
Advances
Decrease / (Increase) in Current
assets
Decrease /(Increase) in
Inventories
Increase/(Decrease) in Liabilities
& Provisions (excl. LIAB W/Back)
(12.43)
244.79
(421.99)
174.42
(1.10)
1.56
9.61
293.13
(70.79)
(76.16)
(100.50)
(625.68)
1,782.41
(5.14)
1,777.27
(580.00)
(124.45)
213.50
(189.86)
210.00
(1.63)
4.01
13.46
1,862.12
(16.27)
(88.51)
(8.19)
(1,054.59)
1,299.28
125.06
1,424.31
694.56

Page | 25
Cash Generation from
Operation
Advance Income Tax Paid
215.42 1,197.27
215.42 --
2,118.87
--
Net Cash Flow from
Operating Activities (A) :
981.85 2,118.87
B. Cash Flow from
Operating Activities
Purchases of Assets including
Capital WIP
Adjustment in Value of Fixed
Assets
Redemption of Power Bond
Decrease/ (Increase) in Deposits
(More than 3 Mths.)
Interest Income
Profit on Sale of Fixed Asset
(686.69)
(0.67)
0.05
(1,213.12)
421.99
1.10
(1,477.34)
(408.87)
6.70
0.02
(1,153.55)
189.86
1.63
(1,364.21)
Net cash flow from
investing activities (B)
(1,477.34) (1,364.21)
C. Cash Flow from
Financing Activities
Repayment of Long Term
Borrowings
(5.75) (5.74)
Net Cash Flow from
Financing Activities (C)
(5.75) (5.74)
Net Increase in Cash / Cash
Equivalents (A+B+C)
(501.24) 748.92
Cash & Cash Equivalent (Excl.
Deposit more than three mths)
Opening Cash & Bank Balance
Closing Cash & Bank Balance
1,188.07
686.83
(501.24)
439.15
1,188.07
748.92

Page | 26
NOTE – 1
SHARE CAPITAL
(Rs. In Crores)
AS AT 31-03-2015 AS AT 31-03-2014
AUTHORISED :
i. 250,00,000 Equity
Share of Rs. 1000.00
each.
ii. 210,00,000 (P.Y.
NIL), 6% Non
Convertible
Cumulative,
Redeemable
Preference Shares of
Rs. 1000/- each
2500.00
2100.00
2500.00
--
4,600.00 2,500.00
Issued, Subscribed &
Paid up :
10390000 Equity Shares of
Rs. 1000/-
each fully Paid-up in cash
11794500 Equity Shares of
Rs. 1000/- each
alloted as fully paid-up
consideration received other
than cash
20509700 (P.Y. NIL), 6%
Non Convertible
Cumulative, Reedemable
Preference Shares
of Rs. 1000/- each alloted
as fully paid up for
Consideration received
other than cash
1,039.00
1,179.45
2,050.97
1,039.00
1,179.45
--
Total 4,269.42 2218.45
Note 1.1: Shares in the company held by each shareholder holding more
than 5% Shares.
Name of Shareholder No. of Shares Held
(Face value of Rs. 1000
each)
% of Total Shares
Coal India Limited
Holding Company (Equity
Share)
22184500 100%
Coal India Limited
Holding Company
(Preference Share)
20509700 100%

Page | 27
Note 1.2: (a) There was no change in the Number of Equity Shares during
the year.
Note 1.2: (b) All Preference Shares were issued to the Coal India Limited
Holding Company during the year.
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED
NOTE – 2
RESERVES & SURPLUS
(Rs. In Crores)
AS AT 31-03-2015 AS AT 31-03-2014
RESERVES :
Capital Reserve
As per last Balance Sheet
Add: Addition during the
year
Less: Adjustment During
the year
--
--
--
--
--
--
-- --
Capital Redemption
Reserve
year
the year
--
--
--
--
--
--
-- --
Reserve for Foreign
Exchange Transactions
year
the year
--
--
--
--
--
--
-- --
CSR Reserve
year
Less: Transfer to General
Reserve
--
--
--
--
--
--

Page | 28
-- --
General Reserve
Add : Transfer from
Statement of Profit & Loss
the year
832.71
--
--
832.71
--
--
832.71 832.71
Surplus in Statement of
Profit & Loss
Retained earnings (as per
schedules of
Companies Act 2013)
Profit after Tax During the
year
(4,637.53)
(50.58)
1,139.40
(5,509.76)
--
872.23
(3,548.71) (4,637.53)
APPROPRIATION
Reserve for Foreign
Exchange Transaction
Transfer to General Reserve
Transfer to CSR Reserve
Interim Dividend
Proposed Dividend on
Equity Shares
Corporate Dividend Tax
--
--
--
--
--
--
--
--
--
--
--
--
(3,548.71) (4,637.53)
Miscellaneous
Expenditure
(to the extent not written
off)
 Preliminary
Expenses
 Pre-Operational
Expenses
--
--
--
--
Total : (2,716.00) (3,804.82)
NOTE – 3
LONG TERM BORROWING
(Rs. In Crores)
AS AT 31-03-2015 AS AT 31-03-2014
Term Loan

Page | 29
IBRD
JBIC
Export Development Corp.,
Canada
Liebherr France S.A.,
France
Loan From Coal India
Limited
--
--
164.33
--
--
--
162.32
518.97
Total 164.33 681.29
CLASSIFICATION 1
Secured
Unsecured
CLASSIFICATION 2
Loan Guaranteed by
directors & others
--
164.33
--
681.29
Particulars of Loan Amount in Rs. crores Nature of Guarantee
Export Development
Corporation, Canada
164.33 GOI
Previous Year 162.32 GOI
Note 3.1:- Loss on Exchange Rate Variance of Rs. 7.89 crores (Rs. 13.46
crores) in respect of unsecured loan from
Export Development Corporation, Canada has been adjusted in the value
of the unsecured loan and corresponding
effect in Other expenses (Note - 31) of the Statement of Profit and Loss.
Note 3.2: During the year repayment of foreign loan of Rs. 5.75 crores
(Rs. 5.74 crores) has been made.
Note 3.3: During the year the CIL Loan has been converted into 6% Non
Convertible, Cumulative Redeemable Preference share capital.
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED:
NOTE – 4
OTHER LONG TERM LIABILITIES
(Rs. In Crores)
AS AT 31-03-2015 AS AT 31-03-2014
Shifting & Rehabilitation
Fund
Opening Balance
Add: Interest from
--
--
--
--

Page | 30
Investment of the fund
Add: Contribution Received
Less : Amount utilised
--
--
--
--
-- --
Trade Payable
Security Deposits
Others
--
17.54
1.38
--
16.79
1.20
Total 18.92 17.99
NOTE – 5
LONG TERM PROVISIONS
(Rs. In Crores)
AS AT 31-03-2015 AS AT 31-03-2014
For Employee Benefits
- Gratuity
- Leave Encashment
- Other Employee
Benefits
For Foreign Exchange
Transactions (Marked to
Market)
OBR Adjustment Account
Mine Closure
For Others (Post Retirement
Medical Benefit)
256.56
499.71
304.14
-
-
1,785.17
148.06
141.59
1,515.36
451.72
276.91
-
-
1,610.75
73.52
114.29
TOTAL 3.135.23 4,042.55
Note 5.1: The year end liability of Gratuity, Leave encashment, Medical
benefit for retired executives and other employees benefit like Group
Personal Accident Insurance Policy, Leave Travel Concession,
compensation to dependents in case of mines accidental death are valued
on actuarial basis.
Note 5.2: Provisions of long term gratuity is after adjustment of gratuity
trust fund balance of Rs. 2042.35 Crores (Rs. 662.31 Crores).
NOTE – 6
SHORT TERM BORROWING
(Rs. In Crores)
AS AT 31-03-2015 AS AT 31-03-2014
Loan From Bank
Loans Repayable on
Demand
-- --

Page | 31
Balance with Coal India
Limited & other Subsidiaries
of Coal India Limited
Overdraft against Pledge of
Term Deposit
Other Loans and Advances
Deferred Credits
129.01
--
--
--
1,714.51
--
--
--
Total 129.01 1,714.51
CLASSIFICATION 1
Secured
Unsecured
CLASSIFICATION 2
Loan Guaranteed by
directors & others
--
129.01
--
1,714.51
Particulars of Loan Amount in Rs. crores Nature of Guarantee
NIL NIL NIL
Note 6.1:- During the year Balance with CIL of Rs. 1532 crores has been
converted into 6% Non convertible Cumulative, Redeemable Preference
Share capital.
NOTE – 7
TRADE PAYABLES
(Rs. In Crores)
AS AT 31-03-2015 AS AT 31-03-2014
Sundry Creditors For
Revenue Stores 72.56 63.86
Total 72.56 63.86
NOTE – 8
OTHER CURRENT LIABILITIES
(Rs. In Crores)
AS AT 31-03-2015 AS AT 31-03-2014
Current Maturities of
Long Term Borrowings
Term Loan From IBRD
Term Loan From JBIC
Term Loan From Export
Development Corp., Canada
--
--
5.88
--
--
5.75

Page | 32
Term Loan From Liebherr
France S.A., France
Loan From Coal India
Limited
Surplus Fund from Coal
India Limited
Current Account with
Subsidiaries
For Capital (including
Stores)
FOR EXPENSES :
Salary Wages & Allowances
Power & Fuel
Others
--
--
--
--
71.59
298.43
55.79
107.38
--
--
--
--
20.73
330.57
61.01
95.19
461.60 486.77
STATUTORY DUES :
Sales Tax/VAT
Provident Fund & Pension
Fund
Central Excise Duty
Royalty & Cess on Coal
Stowing Excise Duty
Clean Energy Cess
Other Statutory Levies
3.00
68.10
0.32
42.11
11.36
98.16
42.20
--
66.09
23.34
29.74
11.05
24.51
17.52
265.25 172.25
Income Tax Deducted at
Source
Security Deposit
Earnest Money
Advance & Deposit from
customers / others
Interest Accrued and due
on Borrowings
Interest Accrued but not
due on Borrowings
Cess Equalisation Account*
Current Account with IICM
Unpaid Dividend
Ex-Owner Account
47.00
90.54
49.37
526.00
--
--
1,410.51
--
--
--
38.13
79.63
48.02
388.17
--
--
1,241.82
--
--
--

Page | 33
Advance Deposit other Pre-
Nationalisation
Others Liabilities
--
406.33
--
372.93
Total 3,334.07 2,854.20
*Note - 8.1:- In the process of making payment of Cess on the annual
value of coal bearing land based on the average production of preceding
two years valuing at a rate prevailing as on 1st April of each year and
realisation made from customers on the value of despatches of Coal
considering the sale price prevailing on 31st
March of the financial year,
there remains a balance accumulating to Rs. 1410.51 cr. (Rs. 1241.82
cr.) which has been shown under cess equalisation A/C.
NOTE – 9
SHORT TERM PROVISIONS
(Rs. In Crores)
AS AT 31-03-2015 AS AT 31-03-2014
For Employee Benefits
- Gratuity
- Leave Encashment
- PPLB
- PRP
- Other Employee
Benefits
For Proposed Dividend
For Corporate Dividend Tax
Provision for Income Tax
Less : Advance Income Tax
/ Tax Deducted at Source
For Excise Duty on Closing
Stock of Coal
For Others
74.84
73.60
261.78
330.29
65.57
--
--
469.52
(252.91)
26.14
2.58
76.09
75.03
217.39
264.46
69.12
--
--
154.06
(18.74)
18.59
2.76
Total 1,051.41 858.76
Note: 9.1: Provision for short term gratuity is after adjustment of
gratuity trust fund balance of Rs. 310.83 Crores (Rs. 355.74 Crores).
NOTE - 10 A
FIXED ASSETS
(Rs. In Crores)
GROSS BLOCK DEPRECIATION IMPAIRMENT LOSS TOTAL CARRYIN

Page | 34
PARTICU
LARS
G VALUE
As
on
01.
04.
14
Ad
dit
ion
du
rin
g
th
e
pe
rio
d
Adj./Sa
les/Tra
nsfer
during
the
period
As
on
31.
03.
15
As
on
01.
04.
14
Ad
dit
ion
du
rin
g
th
e
pe
rio
d
Adj./Sa
les/Tra
nsfer
during
the
period
As
on
31.
03.
15
As
on
01.
04.
14
Ad
dit
ion
du
rin
g
th
e
pe
rio
d
Adj./Sa
les/Tra
nsfer
during
the
period
As
on
31.
03.
15
Total
Depreciat
ion/Impa
irment
Loss
As
on
31.
03.
15
As
on
31.
03.
14
Tangible
Assets
Land
a. F
r
e
e
h
o
l
d
69.
68
34.
90
(31.85) 72.
73
5.5
9
-- (5.58) 0.0
1
-- -- -- -- 0.01 72.
72
64.
09
b. L
e
a
s
e
h
o
l
d
12
4.2
2
99.
33
31.38 25
4.9
3
33.
25
13.
57
5.58 52.
20
-- -- -- -- 52.20 20
2.7
3
91.
17
Building/
Water
Supply/R
oad &
Culverts
49
3.0
2
20.
54
(0.30) 51
3.2
6
23
4.5
9
17.
18
13.01 26
4.7
8
-- -- -- -- 264.78 24
8.4
8
25
8.4
3
Plant &
Equipme
nts
36
25.
87
26
6.3
4
(39.55) 38
52.
66
28
35.
36
16
4.4
5
(6.36) 29
93.
45
-- -- -- -- 2993.45 85
9.2
1
79
0.5
1
Telecom
municati
on
31.
71
0.2
8
-- 31.
99
18.
61
1.0
6
-- 19.
67
-- -- -- -- 19.67 12.
32
13.
10
Railway
Sidings
26.
75
1.5
0
-- 28.
25
19.
91
0.9
3
0.94 21.
78
-- -- -- -- 21.78 6.4
7
6.8
4

Page | 35
Furniture
&
Fixtures/
Office
Tools&
Equipme
nts/Elect
rical
Fittings/
Fire
Arms
10
7.4
0
8.6
7
-- 11
6.0
7
77.
67
4.4
7
4.57 86.
71
-- -- -- -- 86.71 29.
36
29.
73
Vehicle 13.
96
0.4
4
(0.26) 14.
14
11.
84
0.2
6
(0.25) 11.
85
-- -- -- -- 11.85 2.2
9
2.1
2
Aircraft -- -- -- -- -- -- -- --
Develop
ment
Assets
taken on
Nationali
sation
9.1
6
-- (0.99) 8.1
7
9.1
6
-- (0.99) 8.1
7
-- -- -- -- 8.17 -- --
Surveyed
Off
Assets
36
1.6
6
-- 22.97 38
4.6
3
-- -- -- -- 36
1.6
6
1.2
3
21.74 38
4.7
3
384.63 -- --
TOTAL 48
63.
43
43
2.0
0
(18.60) 52
76.
83
32
45.
78
20
1.9
2
10.92 34
58.
62
36
1.6
6
1.2
3
21.74 38
4.7
3
3843.25 14
33.
58
12
55.
99
Tangible
Assets
(As on
31.03.20
14)
42
72.
75
31
7.0
8
(88.06) 45
01.
77
31
60.
59
16
1.6
4
(76.45) 32
45.
78
-- -- -- -- 3245.78 12
55.
9
11
24.
94
Intangibl
e Assets
Compute
r
Software
Develop
ment
10
92.
75
45.
75
-- 11
38.
50
73
8.0
6
20.
91
-- 75
8.9
7
23
1.7
8
17.
26
2.62 25
1.6
6
1010.63 12
7.8
7
12
2.9
1
Prospecti
ng &
Boring
20
2.7
4
0.6
4
-- 20
3.3
8
13
6.7
9
1.1
6
(0.20) 13
7.7
5
61.
06
0.2
6
-- 61.
68
199.43 3.9
5
4.8
9
Total 12
95.
49
46.
39
-- 13
41.
88
87
4.8
5
22.
07
(0.20) 89
6.7
2
29
2.8
4
17.
88
2.62 31
3.3
4
1210.06 13
1.8
2
12
7.8
0

Page | 36
Intangibl
e Assets
(As on
31.03.20
14)
12
62.
80
32.
75
(0.06) 12
95.
49
84
2.2
7
32.
57
0.01 87
4.8
5
27
7.8
6
15.
27
(0.29) 29
2.8
4
1167.69 12
7.8
0
15
7.8
3
GRAND
TOTAL
61
58.
92
47
8.3
9
(18.60) 66
18.
71
41
20.
63
22
3.9
9
10.72 43
55.
34
65
4.5
0
19.
11
24.36 69
7.9
7
5053.31 15
65.
40
13
83.
79
Note-10A.1:- Direct purchase of Tenancy Land are classified as free hold
Land. Land acquired under Coal Bearing Acquisition Act, 1957, L.A. Act
1894, inherited land on nationalisation, direct transfer of Govt. Land and
Forest Land are classified as Land Other.
Note-10A.2:- Land includes certain land taken on possession by the
Company for which legal formalities in respect of title deeds etc. are
pending. However, land taken on possession by the Company, for which
values are yet to be ascertained pending completion of legal formalities,
have not been included.
Note-10A.3:- Full provision amounting to Rs. 1.23 Crore (Rs. 3.87 crore)
on the value of surveyed off Assets has been made.
NOTE - 10 B
CAPITAL WORK-IN-PROGRESS
(Rs. In Crores)
PARTI
CULA
RS
COST PROVISION IMPAIRMENT LOSS TOTAL CARRYIN
G VALUE
As
on
01.
04.
14
Ad
diti
on
du
rin
g
the
per
iod
Adj./Sa
les/Tra
nsfer
during
the
period
As
on
31.
03.
15
As
on
01.
04.
14
Ad
diti
on
du
rin
g
the
per
iod
Adj./Sa
les/Tra
nsfer
during
the
period
As
on
31.
03.
15
As
on
01.
04.
14
Ad
diti
on
du
rin
g
the
per
iod
Adj./Sa
les/Tra
nsfer
during
the
period
As
on
31.
03.
15
Total
Depreciat
ion/Impai
rment
Loss
As
on
31.
03.
15
As
on
31.
03.
14
Tangi
ble
Asset
s
Buildi
ng/W
ater
Suppl
y
/Road
&
Culve
rts
19.
46
29.
74
(20.62) 28.
58
5.9
1
0.0
1
-- 5.9
2
-- -- -- -- 5.92 22.
66
13.
55
Plant
&
Equip
ment
s
12
2.3
7
32
7.8
7
(196.15
)
25
4.0
9
36.
69
0.2
8
(0.01) 36.
96
-- -- -- -- 36.96 21
7.1
3
85.
68
Railw
ay
7.1
4
17.
81
(1.21) 23.
74
2.6
3
-- -- 2.6
3
-- -- -- -- 2.63 21.
11
4.5
1

Page | 37
Siding
s
Devel
opme
nt
-- 0.0
8
-- 0.0
8
-- -- -- -- -- -- -- -- -- 0.0
8
--
Other
s
4.0
8
11.
49
(9.71) 5.8
6
0.9
5
0.0
3
-- 0.9
8
-- -- -- -- 0.98 4.8
8
3.1
3
TOTA
L
15
3.0
5
38
6.9
9
(227.6
9)
31
2.3
5
46.
18
0.3
2
(0.01) 46.
49
-- -- -- -- 46.49 25
6.8
6
10
6.8
7
Tangi
ble
Asset
s
(As
on
31.03
.2014
)
10
7.4
1
31
8.9
5
(273.31
)
15
3.0
5
46.
09
0.1
4
-0.05 46.
18
-- -- -- -- 46.18 10
6.8
7
61.
32
Note- 10B.1:- Total provision for Tangible Assets upto the end of the period is Rs. 46.49 crores (Rs. 46.18 crores)
NOTE - 10 C
INTANGIBLE ASSET UNDER DEVELOPMENT
(Rs. In Crores)
PART
ICUL
ARS
COST PROVISION IMPAIRMENT LOSS TOTAL CARRYIN
G VALUE
As
on
01.
04.
14
Ad
diti
on
du
rin
g
the
per
iod
Adj./Sa
les/Tra
nsfer
during
the
period
As
on
31.
03.
15
As
on
01.
04.
14
Ad
diti
on
du
rin
g
the
per
iod
Adj./Sa
les/Tra
nsfer
during
the
period
As
on
31.
03.
15
As
on
01.
04.
14
Ad
diti
on
du
rin
g
the
per
iod
Adj./Sa
les/tra
nsfer
during
the
period
As
on
31.
03.
15
Total
Depreciat
ion/Impai
rment
Loss
As
on
31.
03.
15
As
on
31.
03.
14
Intan
gible
Asset
s
Deve
lopm
ent
62.
70
57.
11
(40.13) 79.
68
10.
47
0.0
1
(2.27) 8.2
1
22.
58
1.7
8
(0.35) 24.
01
32.22 47.
46
29.
65
Pros
pecti
ng &
Borin
g
4.8
2
32.
66
(0.64) 36.
84
2.7
3
-- -- 2.7
3
1.3
8
-- -- 1.3
8
4.11 32.
73
0.7
1
TOTA
L
67.
52
89.
77
(40.77) 11
6.5
13.
20
0.0
1
(2.27) 10.
94
23.
96
1.7
8
(0.35) 25.
39
36.33 80.
19
30.
36

Page | 38
2
Intan
gible
Asset
s
(As
on
31.03
.2014
)
54.
12
46.
56
(33.16) 67.
52
13.
94
-- (0.74) 13.
20
19.
97
4.0
2
(0.03) 23.
96
37.16 30.
36
20.
21
Note 10 C. 1: Total provision / Impairment loss upto the end of the year is 36.33 Crores ( 37.16 crores) under intangible
Assets.
NOTE – 11
NON - CURRENT INVESTMENTS - Unquoted at Cost
(Rs. In Crores)
Number of
shares/bonds/secu
rities current
year/(previous
year)
Face value per
shares/bonds/securi
ty current
year/(previous
year)(Rs.)
AS AT
31-03-
2015
AS AT
31-03-
2014
TRADE
8.5% Tax Free
Special Bonds
(Fully Paid up) :
(on securitisation
of Sundry
Debtors)
Major State-wise
Break-up
(4 Bonds of Rs.
1,65,000/- each)
UP
Haryana
Maharashtra
Madhya Pradesh
Gujarat
West Bengal
Others
Equity Shares in
Joint Venture
Companies (with
name of joint
ventures)
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--

Page | 39
Equity Shares in
Subsidiaries
Companies (with
name of
Subsidiaries)
Others (in Co-
operative Shares)
i) 500 “B” class
shares of
Rs.1000/- each in
Coal Mines
Officers Co
operative credit
Society Ltd. Rs.
0.05
ii) 1000 “D” class
shares of Rs.
100/- each in
Dishergarh
colly Worker’s
central co-opt
store Ltd. Rs.
0.01
iii) 4000 shares of
Rs. 25/- each in
the Mugma
coalfield
colly Worker’s
central co-opt
store Ltd. Rs.
0.01
iv) 500 “B” class
shares of Rs.
100/- each in
Sodepur colly
Employee’s co-opt
credit society Ltd.
& 500 “B” class
shares of Rs. 100
each in
Dhenomain colly.
Employees’ co-opt
credit society Ltd.
Rs. 0.01
NON-TRADE
7.55% Non
Convertible IRFC
Tax Free Bonds
2021 Series
--
--
--
--
--
--
--
0.08
--
--
0.08
--
Total 0.08 0.13
Aggregate of
Quoted
Investment
-- --

Page | 40
Aggregate of
Unquoted
Investment
Market Value of
Quoted
Investment
Provision made
for diminution in
the value of
Investment
--
--
--
--
--
--
NOTE – 12
LONG TERM LOANS & ADVANCES
(Rs. In Crores)
AS AT 31-03-2015 AS AT 31-03-2014
LOANS
ADVANCES
For Capital
-Secured considered
goods
-Unsecured considered
goods
-Doubtful
--
162.29
3.95
--
88.57
4.80
Less : Provision for Doubtful
Loans and Advances
166.24
3.95
93.37
4.80
162.29 88.57
For Revenue
-Secured considered
goods
goods
-Doubtful
--
2.23
0.56
--
2.20
0.56
Loans and Advances
2.79
0.56
2.76
0.56
2.23 2.20
Security Deposits
-Secured considered
goods
goods
-Doubtful
--
7.26
1.52
--
7.89
0.66
8.78 8.55

Page | 41
Loans and Advances
1.52 0.66
7.26 7.89
Deposit for P&T, Electricity
etc.
-Secured considered
goods
goods
-Doubtful
--
0.35
0.44
--
0.37
0.44
Loans and Advances
0.79
0.44
0.81
0.44
0.35 0.37
LOAN TO EMPLOYEES &
OTHERS
For House Building
-Secured considered
goods
goods
-Doubtful
0.56
--
--
0.82
--
--
0.56 0.82
For Motorcar and Other
Conveyance
-secured considered
goods
goods
-Doubtful
0.02
--
--
0.01
--
--
0.02 0.01
For Others
-Secured considered
goods
goods
-Doubtful
--
--
--
--
--
--
Loans and Advances
--
--
--
--
-- --
172.71 99.86
LOAN TO SUBSIDIARIES
-Secured considered
goods
goods
-Doubtful
--
--
--
--
--
--
172.71 99.86
Note

Page | 42
PARTICULARS CLOSING BALANCE
MAXIMUM AMOUNT
DUE AT ANY TIME
DURING
CURRENT
PERIOD
PREVIOUS
PERIOD
CURRENT
PERIOD
PREVIOUS
PERIOD
Due by the Companies in which
directors of the company is also a
director/member (with name of
the Companies)
NIL NIL NIL NIL
Due by the parties in which the
Director(s) of company is /are
interested NIL NIL NIL NIL
NOTE – 13
OTHER NON-CURRENT ASSETS
(Rs. In Crores)
AS AT 31-03-2015 AS AT 31-03-2014
Long Term Trade
Receivable
- Secured considered
goods
- Unsecured considered
goods
- Doubtful
--
--
--
--
--
--
Less: Provision for bad and
doubtful Trade Receivable
--
--
--
--
Exploratory Drilling Work
goods
goods
- Doubtful
--
--
--
--
--
--
--
--
-- --
doubtful
Receivables for Mine
Closure Expenses
--
1.09
--
--
Other Receivables
goods
--
16.32
--
16.33

Page | 43
goods
- Doubtful 4.98 5.22
doubtful Receivables
21.30
4.98
21.55
5.22
16.32 16.33
Total 17.41 16.33
Note:
P A R T I C U L A R S
CLOSING BALANCE MAXIMUM AMOUNT DUE
AT ANY TIME DURING
CURRENT
PERIOD
PREVIOUS
PERIOD
CURRENT
PERIOD
PREVIOUS
PERIOD
Due by the Companies in
which directors of the
company is also a
director/member ( With
name of the Companies)
Due by the parties in which
the Director(s) of company
is /are interested
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NOTE – 14
CURRENT INVESTMENTS - Quoted / Unquoted at Cost
(Rs. In Crores)
Number of
shares/bonds/s
ecurities current
year/(previous
year)
Face value
per shares
/bonds/sec
urities
current
year/(previ
ous
year)(Rs.)
Market
value/NAV per
shares/bonds/s
ecurities current
year/(previous
year)(Rs.)
AS AT
31.03.2
015
AS AT
31.03.2
014
NON
TRADE
Mutual
Fund
Investm
ent (
with
name of -- -- -- -- --

Page | 44
mutual
fund )
7.55%
Non
Converti
ble IRFC
Tax Free
Bonds
2021
Series
TRADE
8.5%
Tax
Free
Special
Bonds
(Fully
Paid
up) :
(on
securitis
ation of
Sundry
Debtors)
Major
State-
wise
Break-
up
(2 Bonds
of `
1,65,000
/- each)
UP 0.03 0.03
Total 0.03 0.03
Aggregat
e of
Quoted
Investm
ent
Aggregat
e of
Unquote
d
Investm
ent
Market
Value of
Quoted
Investm
ent
Market
Value of
--
--
--
--
--
--

Page | 45
Unquote
d
Investm
ent
Provision
made for
diminuti
on in the
value of
Investm
ent
--
--
--
--
NOTE – 15
INVENTORIES
(Rs. In Crores)
AS AT 31-03-2015 AS AT 31-03-2014
Stock of Coal
Coal Under Development
Less : Provision
386.00
--
1.76
299.95
--
1.76
A. Stock of Coal (Net)
at lower of cost or
net realisable
value
384.24 298.19
Stock of Stores & Spares
(at cost)
Stores -in –transit
Less : Provision
188.06
0.34
38.81
177.68
0.06
43.97
B. Net Stock of
Stores & Spares
(at cost)
149.59 133.77
C. Workshop Jobs :
Work-in-progress
and Finished Goods
Less : Provision
16.50
0.12
18.06
0.20
Net Stock of Workshop
Jobs (at cost)
16.38 17.86
D. Press :
Work-in-Progress
and Finished Goods
E. Stock of Medicine at
Central Hospital (at
cost)
F. Prospecting &
Boring/ Development
--
0.81
--
0.70

Page | 46
Exp./Coal Blocks
meant for Sale
-- --
Total ( A to F ) 551.02 450.52
Note - 15.1:- Closing Stock of stores at Central and Area Stores have
been valued at weighted average cost. Provision at the end of the year for
Rs. 38.81 crore (Rs. 43.97 crore) consists of the following:
a) Provision for quantitative discrepancies noticed between Bin Cards
and Stores Ledger upto NIL (Rs. 2.07 Crore)
b) Provision for unserviceable, damaged and obsolete store Rs. 10.47
crore (Rs.10.47 crore)
c) Provision for non-moving stores & spares Rs. 28.34 crore ( Rs.
31.43 crore. )
SCHEDULES TO BALANCE SHEET (CONTD.) CONSOLIDATED
ANNEXURE TO NOTE – 15
(Qty. in Lakh tonnes) (value in lakh Rs. )
TABLE – A
Reconciliation of closing stock adopted in Account with Book stock as at 31.03.2015
OVERALL STOCK NON-VENDABLE
STOCK
VENDABLE STOCK
Qty. Value Qty. Value Qty. Value
1.A)Opening stock
as on 01.04.14
B) Adjustment
in Opening Stock
2.Production for the
year
3. Sub-Total ( 1+2)
4. Off- Take for the
year :
A) Outside
Despatch
B) Coal feed to
Washeries
C) Own
Consumption
23.84
0.00
34651
0
4.71
0.00
4656
0
19.13
0.00
29995
0
23.84
400.08
423.92
382.20
0.00
2.50
34651
1019102
1053753
1001853
0
8644
4.71
0.00
4.71
0.00
0.00
0.00
4656
0
4656
0
0
0
19.13
400.08
419.21
382.20
0.00
2.50
29995
1019102
1049097
1001853
0
8644

Page | 47
TOTAL(A)
5. Derived Stock
6. Measured Stock
7. Difference (5-6)
8. Break-up of
Difference:
A) Excess within 5%
B) Shortage within
5%
C) Excess beyond
5%
D) Shortage beyond
5%
9. Closing stock
adopted in A/c.
(6-8A+8B)
384.70
39.22
38.61
0.61
0.07
0.68
0.00
0.00
39.22
1010497
43256
42585
671
73
744
0
0
43256
0.00
4.71
4.71
0.00
0.00
0.00
0.00
4.71
0
4656
4656
0
0
0
0
4656
384.70
34.51
33.90
0.61
0.07
0.68
0.00
0.00
34.51
1010497
38600
37929
671
73
744
0
0
38600
Note: Production includes seized coal of 0.02 lakh tonne.
NOTE – 16
TRADE RECEIVABLES
(Rs. In Crores)
AS AT 31-03-2015 AS AT 31-03-2014
Debts outstanding for a
period exceeding six
months from the due date
-Secured considered
good
good
-Doubtful
--
761.31
455.07
--
1142.74
423.70
doubtful trade receivables
1216.38
455.07
1566.44
423.70
761.31 1142.74
Other Debts
-Secured considered
good
good
-Doubtful
--
665.57
8.07
--
577.27
--

Page | 48
doubtful trade receivables
673.64
8.07
577.27
--
655.57 577.27
Total 1426.88 1720.01
Notes:
CLOSING BALANCE MAXIMUM AMOUNT DUE
AT ANY TIME DURING
CURRENT
PERIOD
PREVIOUS
PERIOD
CURRENT
PERIOD
PREVIOUS
PERIOD
Due by the companies in
company is also a
director/member (With
NIL NIL NIL NIL
is/are interested
NIL NIL NIL NIL
Note 16.1:- Adjustment of an amount of Rs. 86.25 crores (Previous year
Rs. 382.91 crores) for grade slippage has been made after reconciliation,
settlement and issuing credit notes to parties during the year.
Note 16.2:-
The details of provision are
as under:
Rs. In Crore
31.03.15
Rs. In Crore
31.03.14
Opening Provision
Less: Settled/Written
off/Adjusted against
opening debtors
Add: New provision during
the year
Less: Written back from
opening provision
Closing Balance
423.70
--
90.23
50.79
463.14
399.39
--
92.82
68.51
423.70
NOTE – 17

Page | 49
CASH & BANK BALANCE
AS AT 31-03-2015 AS AT 31-03-2014
Balances with Scheduled
Banks
-SBI Dividend Account
(unpaid/unclaimed dividend
account)
-In Deposit Accounts
with maturity upto 3
months
-In Current Accounts
-In Cash Credit Accounts
Balances with Non -
Scheduled Banks
In Account with Banks
outside India
Remittance - in transit
Cheques, Drafts and
Stamps on hand
Cash on hand
Deposit with Scheduled
Banks under Shifting and
Rehabilitation Fund Scheme
with maturity upto 3
months
Other Bank Balances
Balances with Scheduled
Banks
-In Deposit Accounts
with maturity more than 3
months
Banks under Shifting and
Rehabilitation Fund Scheme
with maturity more than 3
months
Banks under Mine Closure
Plan Scheme*
318.28
219.09
--
--
--
0.83
0.57
--
3877.05
--
148.06
529.32
584.43
--
--
--
0.08
0.72
--
2663.93
--
73.52
Total 4563.88 3852.00
1. Maximum amount outstanding with Banks other than Scheduled
Banks at any time during the year nil nil
2. Deposit for more than 1 (one) year from the date of purchase nil nil

Page | 50
3. Rs. 66.49 crores has been deposited with Union Bank of India towards Mine
closure Escrow a/c during the period.
4. Rs. 8.05 crores has been deposited with Union Bank of India as Interest towards
Mine closure Escrow a/c during the year.
NOTE – 18
SHORT TERM LOANS & ADVANCES
(Rs. In Crores)
AS AT 31-03-2015 AS AT 31-03-2014
LOANS
ADVANCE
( Recoverable in cash or in
kind or for value to be
received)
ADVANCE TO SUPPLIERS
For Revenue
-Secured considered
good
good
-Doubtful
--
75.21
0.49
--
74.09
2.50
doubtful Advance
75.70
0.49
76.59
2.50
75.21 74.09
75.21 74.09
ADV PAYMENT OF
STATUTORY DUES
Sales Tax
-Secured considered
good
good
-Doubtful
--
--
28.03
--
--
--
24.08
--
doubtful Advance
28.03
--
24.08
--
28.03 24.08
Advance Income Tax / Tax
Deducted at Source
Less : Provision for Income
Tax
--
--
--
--
-- --

Page | 51
Others
-Secured considered
good
good
-Doubtful
--
21.53
0.20
--
20.15
0.44
doubtful Advance
21.73
0.20
20.59
0.44
21.53 20.15
49.56 44.23
Advance to Employees
-Secured considered
good
good
-Doubtful
--
78.02
1.32
--
79.84
1.32
doubtful Advance
79.34
1.32
81.16
1.32
Current Account with Coal
India Limited & other
Subsidiaries of Coal India
Limited
Loan Account with
Subsidiaries
-Secured considered
good
good
-Doubtful
doubtful Loan
MAT Credit Entitlement
Claims Receivables
-Secured Considered
Good
good
-Doubtful
78.02
--
--
--
--
--
174.62
--
--
0.01
2.20
79.84
--
--
--
--
--
--
--
--
6.70
2.20
doubtful claim receivables
2.21
2.20
8.90
2.20
0.01 6.70
Prepaid Expenses 0.39 0.39
253.04 86.93
Total 377.81 205.25
Note:

Page | 52
CLOSING BALANCE MAXIMUM AMOUNT
DUE AT ANY TIME
DURING
CURRENT
PERIOD
PREVIOUS
PERIOD
CURRENT
PERIOD
PREVIOUS
PERIOD
Due by the companies in
company is also a
director/member (with
NIL NIL NIL NIL
is/are interested NIL NIL NIL NIL
NOTE – 19
OTHER CURRENT ASSETS
(Rs. In Crores)
AS AT 31-03-2015 AS AT 31-03-2014
Interest Accrued
-Investment
-Deposit with Banks
-Others
Ex Owner’s Account
Other Advances
Less: Provision
--
257.35
--
--
0.06
--
--
127.72
--
--
0.06
--
0.06 0.06
DEPOSITS
Deposit for Customs Duty,
Port Charges etc.
Deposit with Coal India
Limited
Deposit for Royalty, Cess &
Sales Tax
Less: Provision
Others
Less: Provision
--
--
--
--
5.55
0.49
--
--
--
--
3.74
0.49
5.06 3.25
Amount Receivable from
Govt of India for
transactions on behalf of
Ex-Coal Board
-- --

Page | 53
Less: Provision
Other Receivables
Less: Provision
--
84.42
1.16
--
140.75
1.13
83.26 139.62
TOTAL 345.73 270.65
NOTES TO STATEMENT OF PROFIT & LOSS CONSOLIDATED:
NOTE – 20
REVENUE FROM OPERATIONS
(Rs. In Crores)
For the year ended
31-03-2015
For the year ended
31-03-2014
A. Sales of Coal
Less: Excise Duty
Less: Other Levies
Royalty
Cess on Coal
Stowing Excise Duty
Central Sales Tax
Clean Energy Cess
State Sales Tax/VAT
Other Levies
13413.84
655.62
350.75
1578.58
38.22
192.68
374.17
176.99
28.29
11945.92
595.80
322.83
1522.89
35.98
150.20
179.89
238.22
12.32
TOTAL LEVIES 3395.30 3058.13
NET SALES: 10018.54 8887.79
B. Other Operating
Revenue
Facilitation charges for coal
Import
Subsidy for Sand stowing
and protective works
Loading and additional
transportation charges
Less: Excise Duty
Less: Other Levies
OTHER OPERATING
REVENUE (B)
49.58
185.57
8.42
4.74
221.99
53.62
181.87
8.37
5.46
221.66
C. Revenue from
Operation (A+B)
10240.53 9109.45

Page | 54
Note 20.1:- Sale is net of deduction for grade slippage of Rs. 86.25 crores
(Rs. 382.91 crores) due to credit note issued to the parties for grade
slippage.
Note 20.2:- Sale includes MOU quantity of 42.50 LT. (8.91 LT) and MOU
gain of Rs. 596.16 Crores (Rs. 122.71 Crores)
Note 20.3:- Sales includes Rs. 268.40 crores (Rs. 349.11 crores) as
incentive under fuel supply agreement with various power sector for
achieving despatch target.
Note 20.4:- Sales includes e-auction quantity of 18.89 LT (39.04 LT) and
e-auction gain of Rs. 298.96 crores (Rs. 224.35 crores)
Note 20.5:- Sales includes Export sales to Bhutan of 0.04 LT amounting
to Rs. 1.33 crores.
NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.) CONSOLIDATED:
NOTE – 21
OTHER INCOME
(Rs. In Crores)
For the year ended
31-03-2015
For the year ended
31-03-2014
Income From Long Term
Investments
Dividend from Joint
Ventures
Dividend from Subsidiaries
Interest from Government
Securities (8.5% Tax Free
Special Bonds) (Trade)
7.55% Non Convertible
IRFC Tax Free Bonds 2021
Series (Non-Trade)
Income From Current
Investments
Dividend from Mutual Fund
Investments
Interest from
Government Securities
(8.5% Tax Free Special
Bonds) (Trade) 7.55% Non
Convertible IRFC Tax Free
Bonds 2021 Series (Non-
Trade)
--
--
--
--
--
--
--
0.01
--
--

Page | 55
Income From Others
Interest (Gross)
From deposit with banks
From loans and advances to
employees
From income tax refunds
From Coal India
Others
Central Excise Duty on
closing of coal
Apex Charges
Profit on Sale of Assets
Recovery of Transportation
& Loading Cost
Gain on Foreign exchange
Transactions
Exchange Rate Variance
Lease Rent
Liability Write Backs
Guarantee Fees from
Subsidiaries
Other non-operating
Income
421.89
0.10
--
--
0.01
--
--
1.10
--
--
--
--
12.43
--
236.73
189.86
0.10
0.09
--
0.01
2.16
--
1.63
--
--
--
--
124.45
--
172.94
TOTAL 672.26 491.25
Note: Other non-operating income includes sales compensation under
F.S.A. of Rs. 143.12 crores (Rs. 91.57 crores)
NOTE – 22
COST OF MATERIAL CONSUMED
(Rs. In Crores)
For the year ended
31-03-2015
For the year ended
31-03-2014
Explosives
Timber
POL
HEMM Spares
Other Consumable Stores &
Spares
147.58
5.04
280.09
134.26
230.85
126.14
4.33
277.57
140.79
186.53
TOTAL 797.82 735.36

Page | 56
NOTE – 23
CHANGE IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND
STOCK IN TRADE
(Rs. In Crore)
For the year ended
31-03-2015
For the year ended
31-03-2014
Opening Stock of Coal /
Coke
Add : Adjustment of
Opening Stock
Less : Deterioration of
Coal/Coke
297.19
--
1.76
307.06
--
1.76
Total (1) 295.43 305.30
Less : Closing Stock of
Coal/Coke
Less: Deterioration of
Coal/Coke
383.51
1.76
297.19
1.76
Total (2) 381.75 295.43
A) Change in Inventory
of Closing Stock (1-2)
Opening Stock of Workshop
made finished goods and
WIP
Less: Provision
(86.32)
18.06
0.20
9.87
13.83
0.20
Total (3) 17.86 13.63
Closing Stock of Workshop
made finished goods and
WIP
Less: Provision
16.50
0.12
18.06
0.20
Total (4) 16.38 17.86
B) Change in Inventory
of Closing Stock of
workshop (3-4)
Press Opening Job
i) Finished Goods
ii) Work in Progress
1.48
--
--
(4.23)
--
--
Total (5)
Press Closing Job
i) Finished Goods
ii) Work in Progress
--
--
--
--
--
--
Total (6)
C) Change in Inventory
of Closing Stock of Press
Job made finished goods
and WIP (5-6)
--
--
--
--
--
--
--
--

Page | 57
-- --
Total Change in
Inventory of Stock
(A+B+C )
(84.84) 5.64
NOTE – 24
EMPLOYEE BENEFIT EXPENSES
(Rs. In Crores)
For the year ended
31-03-2015
For the year ended
31-03-2014
Salary, Wages, Allowances
& Benefits
Exgratia
PRP
Contribution to P.F. & Other
Funds
Gratuity
Leave Encashment
VRS
Workman Compensation
Medical Expenses for
existing employees
Medical Expenses for retired
employees
Grants to Schools &
Institutions
Sports & Recreation
Canteen & Creche
Power – Township
Hire Charges of Bus,
Ambulance eyc.
Other Employee Benefits
4177.68
296.44
65.82
489.96
339.79
170.36
1.85
5.29
36.41
29.62
6.61
1.45
0.24
111.21
5.33
112.44
4056.42
231.96
64.02
468.03
264.43
145.82
3.12
4.13
33.43
13.41
5.96
1.42
0.13
113.63
5.36
101.30
TOTAL 5850.50 5512.57
Note 24.1: Salary, Wages, Allowances & Benefits includes provisions of
Rs. 25.16 crores (Rs. 24.49 crores) made for Superannuation Benefit to
Executive.

Page | 58
NOTE – 25
Corporate Social Responsibility Expenses
(Rs. In Crores)
For the year ended
31-03-2015
For the year ended
31-03-2014
CSR Expenses 24.85 --
TOTAL 24.85 --
NOTE – 26
REPAIRS
(Rs. In Crores)
For the year ended
31-03-2015
For the year ended
31-03-2014
Building
Plant & Machinery
Others
6.42
92.66
2.14
4.24
69.60
2.63
TOTAL 101.22 76.47
NOTE – 27
CONTRACTUAL EXPENSES
(Rs. In Crores)
For the year ended
31-03-2015
For the year ended
31-03-2014
Transportation Charges:
-Sand
-Coal & Coke
-Stores & Others etc.
Wagon Loading
Hiring of P & M
Other Contractual Work
54.54
230.58
1.66
19.96
540.91
177.38
53.58
223.23
1.76
7.42
379.16
155.38
TOTAL 1025.03 820.53

Page | 59
NOTE – 28
FINANCE COSTS
(Rs. In Crores)
For the year ended
31-03-2015
For the year ended
31-03-2014
INTEREST EXPENSE
Deferred Payments
Bank Overdraft/ Cash Credit
Interest on IBRD & JBIC
Loan
CIL Fund Loan Interest
Interest to Subsidiaries
Others
--
--
--
--
--
--
--
--
--
--
--
--
TOTAL (A) -- --
OTHER BORROWING
COSTS
Guarantee Fees on (IBRD &
JBIC) Loan
Other Expenses / Bank
Charges *
--
--
--
--
TOTAL (B) -- --
TOTAL (A+B) -- --
NOTE – 29
PROVISIONS
(Rs. In Crores)
For the year ended
31-03-2015
For the year ended
31-03-2014
A) PROVISION MADE
FOR
Doubtful debts
Doubtful advances & Claims
Foreign exchange
transaction
Stores & Spares
Reclamation of Land/Mine
Closure Expenses
Surveyed of Fixed Assets
/Capital WIP
Others
90.23
0.04
--
0.55
66.49
1.56
0.09
92.82
0.03
--
0.75
71.03
4.01
--
TOTAL (A) 158.96 168.64
B) PROVISION WRITTEN
BACK
Doubtful Debts
Doubtful advances & Claims
50.79
2.49
68.51
0.62

Page | 60
Foreign Exchange
Transaction
Stores & Spares
Reclamation of Land/Mine
Closure Expenses
Surveyed of Fixed Assets
/Capital WIP
Others
--
5.71
--
0.36
0.03
--
3.95
271.38
1.12
8.63
TOTAL (B) 59.38 300.21
TOTAL (A+B) 99.58 (131.57)
Note 29.1:- Provision for mine closure expenses of Rs. 66.49 crores (Rs.
71.03 crores) has been taken on the pro-rata cost of total mine closure
expenditure of all operating mines being determined as per guideline
issued by the Ministry of Coal, GOI.
NOTE – 30
WRITE OFF
(Rs. In Crores)
For the year ended
31-03-2015
For the year ended
31-03-2014
Doubtful debts
Doubtful advances
Others
68.66
2.49
2.27
127.70
--
--
TOTAL 73.42 127.70
NOTE – 31
OTHER EXPENSES
(Rs. In Crores)
For the year ended
31-03-2015
For the year ended
31-03-2014
Travelling expenses
-Domestic
-Foreign
Training Expenses
Telephone & Postage
Advertisement & Publicity
Freight Charges
Demurrage
Donation/Subscription
Security Expenses
Service charges of CIL
Hire Charges
CMPDI Expenses
11.11
0.13
2.94
1.79
3.37
0.08
0.70
0.03
73.81
7.46
17.88
20.57
12.05
0.54
2.65
1.78
4.21
0.03
0.38
0.13
62.30
--
16.22
9.59

Page | 61
Legal Expenses
Bank Charges
Guest House Expenses
Consultancy Charges
Under Loading Charges
Loss on Sale/Discard/Surveyed
of Assets
Auditor’s Remuneration &
Expenses
-For Audit Fees
-For Taxation Matters
-For Company Law Matters
-For Management Services
-For Other Services
-For Reimbursement of
Expenses
Internal Audit Fees & Expenses
Rehabilitation Charges
Royalty & Cess
Central Excise Duty
Rent
Rates & Taxes
Insurance
Loss on Exchange Rate Variance
Lease Rent
Rescue/Safety Expenses
Dead Rent/Surface Rent
Siding Maintenance Charges
Land/Crops Compensation
R & D Expenses
Environmental & Tree plantation
Expenses
Miscellaneous Expenses
2.28
0.24
1.76
4.88
22.37
0.01
0.14
0.07
--
--
0.10
0.14
2.28
6.84
3.26
7.55
--
1.92
0.08
9.61
--
3.31
14.44
2.06
0.01
7.50
2.52
116.75
1.30
0.12
1.72
0.65
10.59
--
0.14
0.09
--
--
0.09
0.24
1.48
--
1.91
--
--
4.29
0.03
13.46
--
2.82
8.47
2.93
0.98
--
2.42
100.48
TOTAL 349.99 264.09
NOTE – 32
PRIOR PERIOD ADJUSTMENT
(Rs. In Crores)
For the year ended
31-03-2015
For the year ended
31-03-2014
A) Expenditure
Sale of Coal & Coke
Stock of Coal & Coke
Other Income
Consumption of Stores &
Spares
Employees Remuneration &
Benefits
--
--
--
--
--
--
--
--
--
--

Page | 62
Power & Fuel
Welfare Expenses
Repairs
Other Expenditure
Interest and other financial
charges
Depreciation
--
--
--
--
--
--
--
--
--
--
2.41
--
--
--
TOTAL (A) -- 2.41
B) Income
Sale of Coal & Coke
Stock of Coal & Coke
Other Income
Consumption of Stores &
Spares
Employees Remuneration &
Benefits
Power & Fuel
Welfare Expenses
Repairs
Other Expenditure
Interest and other financial
charges
Depreciation
--
--
0.45
--
--
--
--
--
--
0.59
--
1.14
--
--
(1.14)
0.19
--
--
--
--
--
--
--
--
TOTAL (B) 2.18 (0.95)
TOTAL (A-B) (2.18) 3.36
NOTES – 33
SIGNIFICANT ACCOUNTING POLICIES
1.0 Accounting Convention:
Financial statements are prepared under the historical cost
convention and on accrual basis of accounting and going concern
concept, in accordance with the generally accepted accounting
principles in India and the relevant provisions of the Companies
Act, 2013, including accounting standards notified therein, except
otherwise stated.
1.1 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

Page | 63
estimate is recognized in the period in which the same is
determined.
2.0 Subsidies / Grants from Government:
2.1 Subsidies / Grants on capital account are deducted from the cost
of respective assets to which they relate. The unspent amount at
the Balance Sheet date, if any, is shown as current liabilities.
2.2 Subsidies / Grants on revenue account are credited to Statement
of Profit & Loss as income and the relevant expenses are debited
to the respective heads of expenses. The unspent amount at the
Balance Sheet date, if any, is shown as current liabilities.
2.3 Subsidies / Grants from Government received as an
implementing agency
2.3.1 Certain Grant / Funds received under S&T, PRE, EMSC, CCDA
etc. as an implementing agency and used for creation of assets
are treated as Capital Reserve and depreciation thereon is
debited to Capital Reserve Account. The ownership of the asset
created through grants lies with the authority from whom the
grant is received.
2.3.2 Grant / Funds received as Nodal/Implementing Agency are
accounted for on the basis of receipts and disbursement.
3.0 Fixed Assets:
3.1 Land: Value of land includes cost of acquisition, cash
rehabilitation expenses, resettlement cost and compensation in
lieu of employment incurred for concerned displaced persons.
3.2 Plant & Machinery: Plant & Machinery includes cost and expenses
incurred for erection / installation and other attributable costs of
bringing those assets to working conditions for their intended
use.
3.3 Railway Siding: Pending commissioning, payments made to the
railway authorities for construction of railway sidings are shown
in Note 12 – “Long Term Loans & Advances” under Advances for
Capital.
3.4 Development: Expenses net of income of the projects / mines
under development are booked to Development Account and
grouped under Capital Work-in-Progress till the projects / mines
are brought to revenue account. Except otherwise specifically
stated in the project report to determine the commercial
readiness of the project to yield production on a sustainable
basis and completion of required development activity during the

Page | 64
period of constructions, projects and mines under development
are brought to revenue considering the following criteria:
a. From beginning of the financial year immediately after the year in
which the project achieves physical output of 25% of rated capacity
as per approved project report, or
b. 2 years of touching of coal, or
c. From the beginning of the financial year in which the value of
production is more than total, expenses.
- Whichever event occurs first.
4.0 Prospecting & Boring and other Development Expenditure:
The cost of exploration and other development expenditure incurred in
one “Five year” plan period will be kept in Capital work-in-progress till
the end of subsequent two “Five year” plan periods for formulation of
projects, before it is written-off, except in the case of Blocks identified
for sale or proposed to be sold to outside agency which will be kept in
inventory till finalisation of sale.
5.0 Investments:
Current investments are valued at the lower of cost and fair value
as at the Balance Sheet date. Investments in mutual fund are
considered as current investments.
Non-Current investments are carried at cost. However, when there
is a decline, other than temporary, in the value of the long term
investment, the carrying amount is reduced to recognize the
decline.
6.0 Inventories:
6.1 Book stock of coal / coke is considered in the accounts where
the variance between book stock and measured stock is upto +/-
5% and in cases where the variance is beyond +/- 5% the
measured stock is considered. Such stock are valued at net
realisable value or cost whichever is lower.
6.1.1 Coal & coke fines are valued at lower of cost or net realisable
value.
6.1.2 Slurry (coking/semi-coking), middling of Washeries and by
products are valued at net realisable value.
6.2 Stores & Spares:

Page | 65
6.2.1 The closing stock of stores and spare parts has been considered
in the accounts as per balances appearing in priced stores ledger of
the Central Stores and as per physically verified stores lying at the
collieries/ units.
6.2.2 Stock of stores & spare parts (which also includes loose tools )
at central & area stores are valued at cost calculated on the basis of
weighted average method. The year-end inventory of stores & spare
parts lying at collieries / sub-stores / drilling camps/ consuming
centres, initially charged off, are valued at issue price of Area Stores,
Cost / estimated cost. Workshop jobs including work-in-progress are
valued at cost. Similarly stock of stationary at printing press and
medicines at central hospital are valued at cost.
6.2.3 Stock of stationery (other than lying at printing press), bricks,
sand, medicine (except at Central Hospitals), aircraft spares and
scraps are not considered in inventory.
6.2.4 Provisions are made at the rate of 100% for unserviceable,
damaged and obsolete stores and at the rate of 50% for stores &
spares not moved for 5 years.
7.0 Depreciation / Amortisation:
7.1 Depreciation on fixed assets is provided on straight line method on
the basis of useful life specified in Schedule II of Companies Act 2013
except for assets mentioned below, for which depreciation is provided
on the basis of technically estimated useful life which are lower than
that envisaged as per schedule II of Companies Act, 2013 to depict a
more true and fair rate of depreciation:-
Telecommunication equipment :- 6 years and 9 years
Photocopying machine :- 4 years
Fax machine :- 3 years
Mobile phone :- 3 years
Digitally enhance cordless telephone :- 3 years
Printer & Scanner :- 3 years
Earth Science Museum :- 19 years
High volume respiratory dust samplers :- 3 years
Certain equipment /HEMM :- 7 years and 6 years
as applicable.
SDL (equipment) :- 5 years
LHD (equipment) :- 6 years
7.2 The residual value of all assets for depreciation purpose is
considered as 5% of the original cost of the asset except those item of
assets covered under Para 7.3
7.3 In case of assets namely Coal tub, winding ropes, haulage ropes,
stowing pipes & safety lamps the technically estimated useful life has
been determined to be one year with a nil residual value.

Page | 66
7.4 Depreciation on the assets added / disposed of during the year is
provided on pro-rata basis with reference to the month of addition /
disposal, except on those assets with one year useful life and nil
residual value as mention under Para 7.3, which are fully depreciated
in the year of their addition. These Assets are taken out from the
Assets after expiry of two years following the year in which these are
fully depreciated.
7.5 Value of land acquired under Coal Bearing Area (Acquisition &
Development) Act, 1957 is amortised on the basis of the balance life of
the project. Value of leasehold land is amortised on the basis of lease
period or balance life of the project whichever is earlier.
7.6 Prospecting, Boring and Development expenditure are amortised
from the year when the mine is brought under revenue in 20 years or
working life of the project whichever is less.
7.7 Cost of Software recognized as intangible asset, is amortised on
straight line method over a period of legal right to use or three years,
whichever is less; with a nil residual value.
8.0 Impairment of Asset:
Impairment loss is recognised wherever the carrying amount of an
asset is in excess of its recoverable amount and the same is
recognized as an expense in the statement of profit and loss and
carrying amount of the asset is reduced to its recoverable amount.
Reversal of impairment losses recognised in prior years is recorded
when there is an indication that the impairment losses recognised for
the asset no longer exist or have decreased.
9.0 Foreign Currency Transactions:
9.1 Balance of foreign currency transactions is translated at the rates
prevailing on the Balance Sheet date and the corresponding effect is
given in the respective accounts. Transactions completed during the
period are adjusted on actual basis.
9.2 Transactions covered by cross currency swap options contracts to
be settled on future dates are recognised at the rates prevailing on the
Balance Sheet date, of the underlying foreign currency. Effects arising
out of such contracts are taken into accounts on the date of
settlement.
10.0 Retirement benefits / other employee benefits:
a. Defined contributions plans:
The company has defined contribution plans for payment of Provident
Fund and Pension Fund benefits to its employees. Such Provident Fund
and Pension Fund are maintained and operated by the Coal Mines

Page | 67
Provident Fund (CMPF) Authorities. As per the rules of these schemes,
the company is required to contribute a specified percentage of pay roll
cost to the CMPF Authorities to fund the benefits.
b. Defined benefits plans:
The liability on the Balance Sheet date on account of gratuity and leave
encashment is provided for on actuarial valuation basis by applying
projected unit credit method. Further the company has created a Trust
with respect to establishment of Funded Group Gratuity (cash
accumulation) Scheme through Life Insurance Corporation of India.
Contribution is made to the said fund based on the actuarial valuation.
c. Other employee benefits:
Further liability on the Balance Sheet date of certain other employee
benefits viz. benefits on account of LTA/ LTC; Life Cover Scheme,
Group Personal Accident Insurance Scheme, Settlement Allowance,
Post Retirement Medical Benefits Scheme and compensation to
dependants of deceased in mines accidents etc. are also valued on
actuarial basis by applying projected unit credit method.
11.0 Recognition of Income and Expenditure:
Income and Expenditure are generally recognised on accrual basis and
provision is made for all known liabilities.
11.1 Sales
a. Revenue in respect of sales is recognised when the property in the
goods with the risks and rewards of ownership are transferred to
the buyer.
b. Sale of coal are net of statutory dues and accepted deduction made
by customer on account of quality of coal.
c. The revenue recognition is done where there is reasonable certainty
of collection. On the other hand, revenue recognition is postponed
in case of uncertainty as assessed by management.
11.2 Dividend
Dividend income is recognised when right to receive is established.
12.0 Borrowing Costs:
Borrowing Cost directly attributable to the acquisition or
construction of qualifying assets is capitalised. Other borrowing
costs are recognised as expenses in the period in which they are
incurred.

Page | 68
13.0 Taxation:
Provision of current income tax is made in accordance with the
Income Tax Act., 1961. Deferred tax liabilities and assets are
recognised at substantively enacted tax rates, subject to the
consideration of prudence, on timing difference, being the difference
between taxable income and accounting income that originate in
one period and are capable of reversal in one or more subsequent
period.
14.0 Provision:
A provision is recognised when an enterprise has a present
obligation as a result of past event; it is probable that an outflow of
resources embodying economic benefit will be required to settle the
obligation, in respect of which a reliable estimate can be made.
Provisions are not discounted to present value and are determined
based on best estimate required to settle the obligation at the
balance sheet date.
15.0 Contingent Liability:
Contingent liability is a possible obligation that arises from past
events and the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the enterprise or a present
obligation that arises from past events but is not recognised
because it is not probable that an outflow of resources embodying
economic benefit will be required to settle the obligations or reliable
estimate of the amount of the obligations can not be made.
Contingent liabilities are not provided for in the accounts and are
disclosed by way of Notes.
16.0 Overburden Removal (OBR) Expenses:
In open cast mines with rated capacity of one million tonnes per
annum and above, cost of OBR is charged on technically evaluated
average ratio (COAL:OB) at each mine with due adjustment for
advance stripping and ratio-variance account after the mines are
brought to revenue. Net of balances of advance stripping and ratio
variance at the Balance Sheet date is shown as cost of removal of
OB under the head Non - Current Assets/ Long Term Provisions as
the case may be.
The reported quantity of overburden as per record is considered in
calculating the ratio for OBR accounting where the variance
between reported quantity and measured quantity is within the
lower of the two alternative permissible limits, as detailed
hereunder:-

Page | 69
Annual Quantum of
OBR of the Mine.
Permissible limits of variance.
I II
% Quantum
(in Mill.Cu.Mtr.)
Less than 1 Mill.Cu.M. +/- 5% 0.03
Between 1 and 5 Mill. Cu.
M.
+/- 3% 0.20
More than 5 Mill. Cu.M +/- 2% NIL
However, where the variance is beyond the permissible limits as
above, the measured quantity is considered.
17.0 Prior Period Adjustments and Prepaid Expenses:
Income / expenditures relating to prior period and prepaid expenses,
which do not exceed Rs. 0.10 Crore in each case, are treated as
income / expenditure of current year.
NOTE – 34
ADDITIONAL NOTES ON ACCOUNTS
(For the Year ended 31st March, 2015)
1. BACKGROUND :
1.1 Eastern Coalfields Limited (The Company) was incorporated as a
Private Limited Company on 1st November, 1975 as a 100%
Subsidiary of Coal India Limited (CIL) upon taking over of Assets
and Liabilities vested with the Eastern Division of Coal Mines
Authority Limited ( former name of Coal India Limited). The
Company is primarily engaged in business of production and sale of
coal.
1.2 Pending completion of legal formalities for transfer of assets and
liabilities to the Company certain Assets including Mining Rights etc.
continue to be in the name of CIL
1.3 The formal transfer Deeds/Agreement for Assets & Liabilities
transferred and taken over by the Company in respect of coal Mines
Labour Welfare Organisation, Kalla & Central hospital along with 4

Page | 70
other Hospitals/Dispensaries, Mines Rescue Station, Barakar
Engineering & Foundry Works are yet to be finalised and executed
in favour of the Company.
2. FIXED ASSETS AND CAPITAL-WORK-IN-PROGRESS.
a. Building includes Roads & Culverts situated in the
residential/office/mining areas.
b. Physical verification in respect of all fixed assets and in
respect of Plant & Machinery each worth Rs. 1.00 lakh or
more have been carried out as per programme. Resultant
differences on completion of formalities have been adjusted.
c. The Net value of Assets taken over on nationalization of coal
mines amounting to Rs. 8.17 crores, details of which are not
available, under Coal Mines Nationalization Act, 1973 have
been taken into account and shown under the group of
tangible assets and against which full provision has been
made.
3. INVENTORY:
a. The enquiry proceedings by CBI, Dhanbad for shortage of coal
at Rajmahal OCP of Rs. 19.54 Lakhs tonne valued at Rs.
63.58 Crore in 2007-08 has been completed in 2010-2011.
The report on the same has been forwarded to Chairman, CIL
for information and to advice the Vigilance department for
taking action against the charged officers as per CBI order.
The outcome of the order is still to be received.
b. Coal of 471408 M.T. (471408 M.T.) mixed with matti etc. is
non-vendible and has been taken at NIL value.
4. SUNDRY DEBTORS:
a. Provision for Sundry Debtors is made on case to case basis.
Normally no provision of Sundry Debtors is made on unsettled
amount of Debtors in the initial year. In the 2nd year
provision is made up to 50% amount of unsettled amount of
debtors, and the rest is provided in the 3rd year if it remains
unsettled.
5. CURRENT LIABILITIES & PROVISIONS:
A) CURRENT LIABILITIES:

Page | 71
a. As required by section 22 of Micro, Small & Medium
Enterprises Development Act, 2006, as on 31-03-2015
Principal amount remaining unpaid to MSME is ` 0.16 crore (`
0.19 crore) and interest due thereon is NIL (NIL).
B) PROVISIONS:
b. The year end provision towards Gratuity, Leave Encashment,
and Gross Personal Accident Insurance, LTA / LTC, Life Cover
Scheme, Settlement Allowances, Fatal Accident Benefits and
Medical Benefits of retired employees has been made on
actuarial valuation as per the certificate given by the Actuary.
Actuarial valuation of gratuity liability as per actuary certificate is
given as under:
ACTUARIAL VALUATION OF GRATUITY LIABILITY AS AT 31.03.2015
CERTIFCATES AS PER ACCOUNTING STANDARD 15(Revised 2005)
Table 1: DISCLOSURE ITEM 120(c) Table Showing Changes in Present
Value Of Obligations.
As at 31/03/2015
Present Value of Obligation at Beginning of year
Acquisition Adjustment
Interest Cost
Past Service Cost
Current Service Cost
Curtailment cost
Settlement Cost
Benefits Paid
Actuarial gain/loss on Obligations
Present Value of Obligation at end of Year
25334144509
0
1815831560
0
1282602212
0
0
5272500000
2937260348
26097338630
Table 2: DISCLOSURE ITEM 120(e) : Table Showing Changes in Fair Value
of Plan Assets
As at 31/03/2015
Fair Value of Plan Asset at Beginning of year
Acquisition Adjustment
Expected Return on Plan Asset
Contributions
Benefits Paid
Actuarial gain/loss on Plan Asset
Fair Value of Plan Asset at End of year
101805000000
0
814440000
17650200000
5272500000
159160000
23531800000
Table 3: DISCLOSURE ITEM 120(f): Table showing Funded Status
As at 31/03/2015
Present Value of Obligation at end Year
Fair Value of Plan Asset at end Year
Funded Status
Unrecognized actuarial gain/loss at end of the year
Net Asset(Liability) Recognized in Balance Sheet
26097338630
23531800000
-2565538630
0
-2565538630

Page | 72
Table 4:- DISCLOSURE ITEM 120(g): Table showing Expense Recognized
in Statement of Profit/Loss
As at 31/03/2015
Current Service Cost
Past Service Cost
Interest Cost
Expected Return on Plan Asset
Curtailment cost
Settlement Cost
Actuarial gain/loss recognized in the year
Expense Recognized in Statement of Profit/Loss
1282602212
0
1815831560
814440000
0
0
2778100349
5062094121
Table 7: DISCLOSURE ITEM 120(1): Table showing Actuarial Assumptions
As at 31/03/2015
Mortality Table
Superannuation Age
Early Retirement & Disablement
Discount Rate
Inflation Rate
Return on Asset
Remaining Working Life
Formula Used
IALM(2006-08)ULT.
60
10 Per Thousand P.A
6 above age 45
3 between 29 and 45
1 below age 29
8.25%
6.25%
N.A
12 Years
: Projected unit
Credit Method
Table 10: DISCLOSURE, ITEM 120(o): Movements in the Liability
Recognized in Balance Sheet:
As at 31/03/2015
Opening Net Liability
Expenses as above
Contributions
Closing Net Liability
0
1703607893
0
1703607893
Closing Fund/Provision at end of Year 5603146905
NOTE TO APPENDIX B OF AS15(REVISED 2005)
AS THE SCHEME IS UNFUNDED CHARGES TO PROFIT /LOSS ACCOUNT
HAS BEEN BASED ON FOLLOWING ASSUMPTIONS:
1. PREVIOUS OBLIGATION WAS PROVIDED FOR AT LAST
ACCOUNTING DATE
2. BENEFIT TO EXITS HAS BEEN PAID TO DEBIT OF
ABOVE PROVISION
3. CURRENT OBLIGATION WILL BE PROVIDED FOR AT
CURRENT ACCOUNTING DATE
5.3 The company has made an ad-hoc provision of Rs. 65.82
crore (Rs. 64.02 Crore) during the year as Performance
Related Pay as per advice of CIL.

Page | 73
5.4 The company has made a provision of Rs. 27.30 crore (Rs.
11.46 crore) during the year as Post-Retirement Medical
Benefit for the executives.
5.5 The Company has made a provision of Rs. 296.44 crore
(Rs. 231.96 crore) during the year towards payment of Ex-
gratia to non-executive employees @ Rs. 40000- per
employee.
6 STATEMENT OF PROFIT AND LOSS
6.1 Coal issued to employees (free issue) amounting to Rs. 10.68 crore
(Rs. 17.65 crore) and for internal consumption amounting to Rs.
75.27 crore (Rs. 76.68 crore) are accounted for on the basis of
norms fixed by the management and valued at related grade selling
price and the same is exhibited in the accounts as a specific contra.
6.2 Subsidy from appropriate authority for stowing and protective work
undertaken during the year amounting to Rs. 49.58 crore (Rs.
58.65 crore) has been shown under Other Income (Note – 21).
Subsidy receivable out of the same amounting to Rs. 11.88 Crore
(Rs. 45.28 crore) has been shown under Other Current Assets (Note
– 19).
6.3 Depreciation on fixed assets for the year has been calculated on the
basis of the useful life of assets prescribed as per Schedule II of the
Companies Act 2013 (effective from Financial Year 2014-15
onwards) instead of that being followed as per Schedule XIV of the
Companies Act 1956 hitherto. This change has resulted in the profit
for the year being lower by Rs. 84.67 Crore.
6.4 A) During the year based on technically estimated useful life
depreciation rates of the following assets are revised:
SL No. Assets Useful Life
1
2
3
4
5
Photocopy Machine
Fax Machine
Mobile Phone
Digitally enhance cordless telephone
Computer (including printer & scanner)
4
3
3
3
3
6.4 B) DEPRECIATION OH HEMM:
Depreciation on HEMM is provided on Straight Line Method at the
rate prescribed at schedule II of the Companies Act 2013 except on
certain HEMM where higher rate of depreciation is charged as per
technically estimated useful life as given below:-
Particulars of the Asset Useful Life
Tele –Communication Equipment
Dumper Up to 35T
Dumper Up to 50T
Hydraulic Shovels up to 1.2 CUM
Hydraulic Shovels up to > 1.2 to 2.2
Hydraulic Shovels up to >2.2 to 5.0 CUM
6
6
7
7
7
7

Page | 74
Hydraulic Shovels up to > 5.0 to 10.0 CUM
B.H.Drill < 160mm
7
6
6.5 Export Sales: Sales includes Export Sales of coal, in Indian Rupee
terms, to Dumgsam Cement Corporation Limited Bhutan, details of
which is as under:
Quantity Coal Value Gross Value
3720.29 Tonne Rs. 1.33 Crore Rs. 1.83 Crore
7.0 CAPITAL COMMITMENT:
Capital Commitment as on 31-3-2015
(Rs. In Crore)
SL. Particulars Amount
1
2
3
4
5
6
7
8
9
Plant & Machineries
Building
Road & Culverts
Railway Siding
Development (Prospecting & Boring)
Mines Development
Other Development
Water Supply
Others
123.80
3.85
0.86
91.97
1.94
18.08
1.68
1.21
5.20
TOTAL 248.59
8.a Production of Coal during the year amounted to 400.06 Lakh
Tonne (360.46 Lakh Tonne).
8.b
Coal Stock (Quantity in lakh tonnes) (Rs. In Crores)
31.03.2015 31.03.2014 31.03.2015 31.03.2014
Op. Stock
Adjust / seized coal
Sales(*)
Closing Stock (**)
19.13
--
382.20
34.51
21.14
--
359.78
19.13
299.95
--
10018.54
386.00
309.74
--
8887.90
299.95
(*) Does not include coal issued for domestic consumption by Employees
and boiler consumption of 2.50 lakh tonnes ( 2.77 lakh tonnes)
(**) Net surplus/shortage – (-) NIL lakh tonne { Nil lakh tonne}.
9.0 Earning in foreign exchange:- NIL ( NIL ).
10.0 CIF Value of Imports.
Particulars Current Year Previous Year
Raw Materials -- --

Page | 75
Components, Stores &
Spares
Capital Goods
6.71
176.25
10.11
--
11.0 Expenditure in Foreign Currency:
(Rs. In Crores)
Particulars Current Year Previous Year
Travelling Expenses
Expenses on Know - How &
Foreign Consultancy.
Pension to Foreigners
Others
0.13
Nil
Nil
106.52
0.54
Nil
Nil
12.91
12.0 Total consumption of Stores:
(Rs. In Crores) (Percentage)
Current Year Previous Year Current Year Previous Year
Total
consumption of
imported
materials.
Indigenous
11.68
786.14
10.11
725.25
1.46%
98.54%
1.37%
98.63%
TOTAL 797.82 735.36
13. GENERAL:
13.1 Impairment of assets (Prospecting Boring & Mine Development) is
made when the carrying amount of each mine (Cash Generating Unit)
exceeds its recoverable amount, which is being determined on the basis
of future Cash Flows of subsequent five years calculated on constant price
level.
13.2 An advance payment of Rs. 8.10 Crore has been made towards FBT
in 2005-06, against which the return was submitted for Rs. 7.49 Crore as
per self-assessment/tax audit report and assessment was made
accordingly. Subsequently an appeal petition was submitted showing
revised liabilities as Rs. 4.00 Crore. The matter is pending with the
appropriate authority.
13.3 In the opinion of the management, all current assets including loans
and advances have realisable value in the ordinary course of business at
least equal to the amount at which they are stated. Further, adequate
provision has also been made in respect of all known liabilities.
13.4 Reconciliation of balances with sundry debtors is made on a
perpetual basis. Confirmation of creditors and other parties are obtained
in most of the cases. In the absence of confirmation from them the book
balances are considered correct.
13.5 No provision is made on vendible stock except for deterioration of
old stock due to fire, theft, etc.
13.6 PRESENT STATUS OF BIFR AND FINANCIAL RESTRUCTURING OF ECL
As on 31st March, 1997 accumulated losses of the Company exceeded its
net worth by Rs. 251.20 Crores. Hence the company was referred to BIFR
in October, 1997 in terms of Section 15(1) of SICA. Due to financial

Page | 76
restructuring done by CIL on 31st May, 1998 by converting unsecured
loan of Rs. 1179.45 Crores into equity, the net worth of the company
became positive as on that date and company came out of BIFR. The
company continued to incur loss and the net worth of the company again
became negative as on 31st March, 1999. The Company was again
referred to BIFR in November, 1999. Company’s case was registered vide
Case No.501/2000.
BIFR sanctioned the Draft Rehabilitation Scheme in November, 2004 for
implementation. As per Scheme, net worth of the Company was slated to
become positive in 2008-09 with concession from CIL. Cabinet Committee
on Economic Affairs has also approved the BRPSE recommended Revival
Plan of ECL on 6th
October, 2006. As per this Scheme, net worth of the
Company was slated to become positive in 2009-10.
As directed by BIFR, in its meeting held on 02.09.2011, DMRP,
September, 2011 was submitted but the official approval has not been
communicated till now. As per the revised DMRP of ECL – September,
2011, the net worth of the company was slated to become positive in
2015-16.
Miscellaneous Application No.341/2014 filed by the Company before the
BIFR was heard on 22nd
September, 2014. This application was filed by
the Company to pass an order directing CIL for waiver of Unsecured Loan
and conversion of Current Account Balance into Equity. The Bench
observed that the already sanctioned Scheme envisaged that the relief
was categorically sought from CIL for waiver of Unsecured Loan and
conversion of Current Account Balance to Equity Share Capital and
therefore, permission of the BIFR appeared to be implied and implicit for
doing so at the level of CIL and therefore,
no further permission from the BIFR was required. Accordingly, BIFR
Bench directed State Bank of India (Monitoring Agency) to:
1. Clarify to ECL, being the Applicant Company, about the procedure of
implementation of the unimplemented part of the Scheme and its
treatment in the Balance Sheet regarding waiver of Unsecured Loan
and conversion of Current Account Balance into Equity Share Capital
and
2. Submit a report that the implementation of the sanctioned Scheme
is consistent in the manner it was sanctioned.
The Bench also directed the Company to file auditor’s certificate stating
status of the net worth of the Company along with its current Balance
Sheet immediately after implementation of the unimplemented part of the
sanctioned scheme.
State Bank of India vide its letter dated 1st November 2014 to ECL
proposed modification of terms of relief and concession from CIL from
“Waiver of unsecured loan of Rs. 519 Crore and conversion of Current

Page | 77
Account Balance of Rs. 1532 Crore as on 31st March 2003 into Equity
Share Capital” to “issue of nonconvertible, redeemable, cumulative
preference shares for an aggregate value of Rs. 2051 Crores to CIL by
ECL in full satisfaction of Unsecured Loan and Current Account Balance as
on 31st March 2003”.
After detailed deliberation in 310th CIL Board Meeting held on 8th
November 2014 and as recommended by Audit Committee, Board
accorded its approval to convert Unsecured Loan of Rs. 519 Crore and
Current Account Balance of Rs. 1532 Crore, aggregating to Rs. 2051
Crore, as on 31st March 2003 of ECL with CIL into fully paid-up 6% non-
convertible, cumulative, redeemable, Preference Shares of face value of
Rs. 1000/ - each to CIL. The Preference Shares are to be redeemed on
expiry of 7 years from the date of issue and allotment. However, CIL
would have the option to redeem at any time after the expiry of 5 years
from the date of issue and allotment. Redemption of preference shares
shall be at the face value (no redemption premium). Annual cumulative
dividend is 6%.
Accordingly Authorized Capital of ECL was raised from Rs. 2500 Crore to
Rs. 4600 Crore (Refer Note 1) and in the 275th ECL Board meeting held
on 25th December 2014 the Board approved the proposal for offer and
allotment of Preference Shares amounting to Rs. 2050.97 Crore to CIL.
On 26th December 2014, 20509700 6% non-convertible, cumulative,
redeemable, Preference Shares of Rs. 1000/- each amounting to Rs.
2050.97 Crores was allotted and issued to CIL, in accordance with the
above, and consequently the net worth of ECL became positive.
The company had filed a Miscellaneous Application (MA) dated
02.02.2015, registered in BC section vide No.53/ 2015/ BC dated
02.02.2015. In the prayer of the MA, the Company had requested the
Hon’ble Bench to issue the following directions inter-alia:
a) To make an affirmative declaration with regard to the positive net
worth of the Company and further declare it as no longer a Sick
Industrial Company as per the provisions of the Act; and
b) To pass such other or further orders as this Hon’ble Board may
deem fit and proper on the facts and circumstances of the present
case.
In the hearing held on 11.02.2015 in MA No. 53/ 2015, the representative
of the company stated that the company has filed an MA requesting the
Board to de-register the company from the purview of SICA as the net
worth of the company has turned positive at Rs. 916.87 Crore based on
its audited Balance Sheet as on 31.12.2014 and auditors certificate
annexed with the MA.

Page | 78
SBI, the monitoring agency, recommended vide its letter dated
09.02.2015 for de-registration of the company from the purview of SICA/
BIFR being a fit case with in the meaning of section 3(1)(o) of SICA since
the net worth of the company has become positive.
Having considered the submissions made during the hearing and material
on record, the Bench issued the following directions inter-alia:
a. The sick company, M/ s Eastern Coalfields Ltd. (BIFR Case
No.501/2000) ceases to be a sick industrial company, with in the
meaning of Section 3(1)(o) of SICA, as its net-worth has turned
positive. It is therefore, discharged from the purview of SICA /
BIFR.
b. The Board discharges State Bank of India from the responsibility of
Monitoring Agency to the Board.
c. Accordingly, MA No.53/2015 filed by the company stands disposed
off.
13.7 In the absence of notification of rules by the Central/State
Government the effects of the provisions of the The Mines and Minerals
(Development and Regulation) Amendment Act, 2015 has not been
considered in the accounts.
13.8 MAT Credit Entitlement: During the year the Company is required
to pay Minimum Alternative Tax (MAT)as the same exceeds the normal
Income Tax payable for the year. MAT credit being the excess of MAT
over the normal Income Tax payable is recognized as an asset – “MAT
Credit Entitlement” for adjustment against the normal Income Tax during
the specified period under the Income Tax Act, in accordance with
the recommendation contained in the guidance note issued by the
Institute of Chartered Accountants of India. The Company shall review the
“MAT Credit Entitlement” at each Balance Sheet date and make necessary
adjustment during the specified period.
14. ACCOUNTING STANDARDS:
1. AS-17: Segment Reporting – The Company is primarily engaged in
a single segment business of production and sale of coal. There is
no other reportable primary segment identifiable in accordance with
AS-17.
2. AS-18: Related Party Disclosures –
Key Managerial Personnel
Whole time Functional Directors:
a. Shri Rakesh Sinha Chairman-cum-Managing Director
b. Shri S. Chakravarty Director (Technical) Opn.
c. Shri C. K. Dey Director (Finance) (Up to 28.02.15)

A project report on ratio analysis 2016

A project report on ratio analysis 2016

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

Similaire à A project report on ratio analysis 2016

Similaire à A project report on ratio analysis 2016 (20)

Plus de Shakti Prasad Tiwari

Plus de Shakti Prasad Tiwari (12)

Dernier

Dernier (20)

A project report on ratio analysis 2016