A Study On Ratio Analysis PDF

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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.
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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

Guide Certificate
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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)
Examiner’s Certification:
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The project report of
Srabani Dutta
Roll No.- 1411004502
is approved and is acceptable in quality and format.
Examiner:
Name: _________________
Qualification: _________________
Designation: ____________________
Acknowledgement
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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
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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
EXECUTIVE SUMMARY
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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.
INTRODUCTION
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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.
E.g. Stock Turnover Ratio, Debtors Turnover Ratio, Fixed
Assets Turnover Ratios etc.
II. FUNCTIONAL CLASIFICATION OF RATIOS
Functional ratios Page | 9
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 | 10
Company Profile
INDUSTRY PROFILE
EASTERN COALFIELDS LIMITED
(A subsidiary of Coal India Limited) Page | 11
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.
 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.
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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.
HISTORY
History and Formation Of Coal India Limited
With dawn of the Indian independence a greater need for coal production Page | 13
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
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” Page | 14
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

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
Page | 15
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 1530 Sq. Km Located in Burdwan,

Coalfields Birbhum, Bankura,
Purulia districts of West
Bengal and Dhanbad
district of Jharkhand
Saherjuri & 90 Sq. Km Located in Deoghar
Rajmahal Fields and Godda districts of
Jharkhand
Source: Annual Report & Accounts of ECL 2009-10
TITLE: A Brief Study on Ratio Analysis
in Eastern Coalfield Limited
Methodology Page | 16
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.
Company Profile
Name of the company: Eastern Coalfields Limited
Address : Sanctoria, P.O. - Disergarh Dist.- Burdwan ( W.B.)

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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
RESEARCH METHODOLOGY
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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.
FINANCIAL STATEMENT
A financial statement is a organized collection of data according to logical
and consistent accounting procedures. Its purpose is to convey
Page | 19
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.
DATA ANALYSIS AND INTERPRETAION
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BALANCE SHEET (CONSOLIDATED)
As at 31st March, 2015
(Rs. In Crores)
Notes AS AT 31.03.2015 AS AT 31.03.2014
I EQUITY AND
LIABILITIES
1) Shareholder’s Fund
a. Share Capital 1 4,269.42 2,218.45
b. Reserves &
Surplus 2 (2716.00) (3804.82)
1,553.42 (1,586.37)
2) Non-Current
Liabilities
a. Long Term
Borrowing 3 164.33 681.29
b. Deffered Tax
Liabilities -- --
c. Other Long
Term 4 18.92 17.99
Liabilities
d. Long Term
Provisions 5 3,135.23 4,042.55
3,318.48 4,741.83
_ _
3) Minority Interest
4) Current Liabilities
a. Short Term
Borrowing 6 129.01 1,714.51
b. Trade
Payables 7 72.56 63.86
c. Other Current
Liabilities 8 3,334.07 2,854.20
d. Short Term
Provisions 9 1,051.41 858.76
4,587.05 5,491.33
Total 9,458.95 8,646.79
II ASSETS
1) Non-Current Assets
a. Fixed Assets
i. Tangible
Assets- Gross 10A 5,276.83 4,863.43
Block
Less: Depreciation,
Impairment & 3,843.25 3,607.44 Page | 21
Provisions
Net Carrying Value 1,433.58 1,255.99
ii. Intangible
Assets- Gross 10A 1,341.88 1,295.49
Block
Less: Depreciation,
Impairment & 1,210.06 1,167.69
Provisions
Net Carrying Value 131.82 127.80
iii. Capital Work –

in-Progress 10B 265.86 106.87
iv. Intangible
Assets Under 10C 80.19 30.36
Development
b. Non-Current
Investment 11 0.08 0.13
c. Deferred Tax
Asset (Net) 91.95 510.99
d. Long Term
Loans & 12 172.71 99.86
Advances
e. Other Non-
Current Assets 13
17.41 16.33
2) Current Assets
a. Current
Investments 14 0.03 0.03
b. Inventories 15 551.02 450.52
c. Trade
Receivables 16 1,426.88 1,720.01
d. Cash & Bank
Balance 17 4,563.88 3,852.00
e. Short Term
Loans & 18 377.81 205.25
Advances
f. Other Current
Assets 19 345.7 270.65
7,265.35 6,498.46
Total 9,458.95 8,646.79
Significant Accounting Policies 33

Additional Notes on Accounts 34
The Notes referred to above form an integral part of Balance Sheet.

STATEMENT OF PROFIT & LOSS
For the Year Ended 31st March, 2015 Page | 22
(Rs. In Crore)
Notes For the Year For the Year

ended 31.03.15 ended 31.03.14
INCOME
A. Sale of Coal, coke etc 20 13,413.84 11,945.92
Less:- Excise Duty (655.62) (595.80)

Other Levies (2,739.68) (2,462.33)
Net Sales 10,018.54 8,887.79
B. Other Operating Revenue (Net) 221.99 221.66
i) Revenue from Operations

(A+B) 10,240.53 9,109.45
ii) Other Income
21 672.26 491.25
Total Revenue (I+II) 10,912.79 9,600.70
Expenses
Cost of Material Consumed 22 797.82 735.36
Change in Inventories of Finished

Goods Work in Progress and Stock in 23 (84.84) 5.64
Trade
Employee Benefit Expenses 24 5,850.50 5,512.57
Power & Fuel -- 475.78 463.77
Corporate Social Responsibility

Expenses 25 24.85 --
Repairs 26 101.22 76.47
Contractual Expenses 27 1,025.03 820.53
Finance Costs 28 -- --
Depreciation/Amortization/Impairmen -- 244.79 213.50

t
29 99.58 (131.57)
Provisions
30 73.42 127.70
Write Off
-- 174.42 210.00
Overburden Removal Adjustment
31 349.99 264.09
Other Expenditure
Total Expenses 9,132.56 8,298.06
Profit/(Loss) before Prior Period, Page | 23

exceptional and
extraordinary items and tax 1,780.23 1,302.64
Prior Period Adjustment { charges/ 32 (2.18) 3.36

(Incomes) }
Exceptional Items -- -- --
Profit/(Loss) before -- 1,782.41 1,299.28

extraordinary items and tax
Extraordinary Items { charges/ -- -- --

(Incomes) }
Profit/(Loss) before Tax -- 1,782.41 1,299.28
Less: Tax Expense

- Current Year -- 398.59 73.84
- Add: MAT Credit Entitlement -- (174.62) --
- Deffered Tax -- 419.04 353.21
- Earlier Years -- -- --
Profit/(Loss) for the period -- 1,139.40 872.23
Earning per equity share (in Rs.)
(Face Value of Rs. 1000/- per share)

1. Basic -- 513.60 393.17
2. Diluted -- -- --
Significant Accounting Policies 33
Additional Notes on Accounts 34
The Notes referred to above form an integral part of Profit & Loss
Account.
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST MARCH, 2015
Page | 24
(Rs. In Crores)
31.03.2015 31.03.2014
A. Cash Flow from

Operating Activities
Net Profit Before Taxation 1,782.41 1,299.28
(Add / Less) Non Operating

Expenses / (Non Operating
Incomes):
Liability Written Back (12.43) (124.45)
Depreciation / Impairment 244.79 213.50
Interest Income (421.99) (189.86)
OBR Adjustment 174.42 210.00
Profit on Sale of Asset (1.10) (1.63)
Provision for Loss of Asset / 1.56 4.01

Surveyed Off Asset
Debit / (Credit) for Foreign 9.61 13.46

Exchange Fluctuation (5.14) 125.06
Operating Profit before 1,777.27 1,424.31

working capital changes
Decrease / (Increase) in Sundry 293.13 1,862.12

Debtors
Decrease / (Increase) in Loans & (70.79) (16.27)

Advances
Decrease / (Increase) in Current (76.16) (88.51)

assets
Decrease /(Increase) in (100.50) (8.19)

Inventories
Increase/(Decrease) in Liabilities (625.68) (1,054.59)

& Provisions (excl. LIAB W/Back)
(580.00) 694.56
Cash Generation from
Operation 215.42 1,197.27 2,118.87
Advance Income Tax Paid 215.42 -- --

Net Cash Flow from 981.85 2,118.87
Operating Activities (A) :
Page | 25
B. Cash Flow from
Operating Activities
Purchases of Assets including (686.69) (408.87)

Capital WIP
Adjustment in Value of Fixed (0.67) 6.70

Assets
0.05 0.02
Redemption of Power Bond
(1,213.12) (1,153.55)
Decrease/ (Increase) in Deposits
(More than 3 Mths.)
421.99 189.86
Interest Income
1.10 1.63
Profit on Sale of Fixed Asset (1,477.34) (1,364.21)
Net cash flow from (1,477.34) (1,364.21)
investing activities (B)
C. Cash Flow from
Financing Activities
Repayment of Long Term (5.75) (5.74)

Borrowings
Net Cash Flow from (5.75) (5.74)
Financing Activities (C)
Net Increase in Cash / Cash (501.24) 748.92

Equivalents (A+B+C)
Cash & Cash Equivalent (Excl.
Deposit more than three mths)
Opening Cash & Bank Balance 1,188.07 439.15
Closing Cash & Bank Balance 686.83 1,188.07

(501.24) 748.92
NOTE – 1
SHARE CAPITAL
(Rs. In Crores) Page | 26

AS AT 31-03-2015 AS AT 31-03-2014
AUTHORISED :
i. 250,00,000 Equity
Share of Rs. 1000.00 2500.00 2500.00
each.
ii. 210,00,000 (P.Y.
NIL), 6% Non
Convertible
Cumulative,
Redeemable 2100.00 --
Preference Shares of
Rs. 1000/- each
4,600.00 2,500.00
Issued, Subscribed &
Paid up :
10390000 Equity Shares of

Rs. 1000/- 1,039.00 1,039.00
each fully Paid-up in cash
11794500 Equity Shares of

Rs. 1000/- each
alloted as fully paid-up 1,179.45 1,179.45
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 2,050.97 --
Consideration received
other than cash
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 % of Total Shares

(Face value of Rs. 1000
each)
Coal India Limited
Holding Company (Equity 22184500 100%
Share)
Coal India Limited
Holding Company 20509700 100%
(Preference Share)
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.
Page | 27
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
-- --
General Reserve
As per last Balance Sheet 832.71 832.71
Add : Transfer from -- --

Statement of Profit & Loss
Page | 28
the year
832.71 832.71
Surplus in Statement of
Profit & Loss
As per last Balance Sheet (4,637.53) (5,509.76)
Retained earnings (as per

schedules of (50.58) --
Companies Act 2013)
Profit after Tax During the 1,139.40 872.23

year
(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
IBRD -- --
JBIC -- --
Export Development Corp., 164.33 162.32

Canada Page | 29
Liebherr France S.A.,
France
Loan From Coal India -- 518.97

Limited
Total 164.33 681.29
CLASSIFICATION 1
Secured -- --
Unsecured 164.33 681.29
CLASSIFICATION 2
Loan Guaranteed by
directors & others
Particulars of Loan Amount in Rs. crores Nature of Guarantee

Export Development 164.33 GOI
Corporation, Canada
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 -- --

Investment of the fund
Add: Contribution Received -- --
Less : Amount utilised -- --

-- --
Trade Payable -- -- Page | 30
Security Deposits 17.54 16.79
Others 1.38 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 256.56 1,515.36
- Leave Encashment 499.71 451.72
- Other Employee 304.14 276.91
Benefits
- -
For Foreign Exchange
Transactions (Marked to - -
Market)
OBR Adjustment Account 1,785.17 1,610.75
Mine Closure 148.06 73.52
For Others (Post Retirement 141.59 114.29
Medical Benefit)
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
S HORT TERM BORROWING
(Rs. In Crores)
AS AT 31-03-2015 AS AT 31-03-2014
Loan From Bank -- --
Loans Repayable on
Demand
Balance with Coal India
Limited & other Subsidiaries 129.01 1,714.51
of Coal India Limited
Overdraft against Pledge of -- --

Term Deposit Page | 31
Other Loans and Advances -- --
Deferred Credits -- --
Total 129.01 1,714.51
CLASSIFICATION 1
Secured -- --
Unsecured 129.01 1,714.51
CLASSIFICATION 2
Loan Guaranteed by
directors & others
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 5.88 5.75
Development Corp., Canada
Term Loan From Liebherr -- --
France S.A., France
Loan From Coal India -- --

Limited
Page | 32
Surplus Fund from Coal -- --
India Limited
Current Account with -- --

Subsidiaries
For Capital (including 71.59 20.73

Stores)
FOR EXPENSES :
Salary Wages & Allowances 298.43 330.57

Power & Fuel 55.79 61.01
Others 107.38 95.19
461.60 486.77
STATUTORY DUES :
Sales Tax/VAT 3.00 --

Provident Fund & Pension 68.10 66.09
Fund
Central Excise Duty 0.32 23.34
Royalty & Cess on Coal 42.11 29.74
Stowing Excise Duty 11.36 11.05
Clean Energy Cess 98.16 24.51
Other Statutory Levies 42.20 17.52
265.25 172.25
Income Tax Deducted at 47.00 38.13
Source
Security Deposit 90.54 79.63
Earnest Money 49.37 48.02
Advance & Deposit from 526.00 388.17

customers / others
Interest Accrued and due -- --

on Borrowings
Interest Accrued but not -- --

due on Borrowings
Cess Equalisation Account* 1,410.51 1,241.82
Current Account with IICM -- --
Unpaid Dividend -- --
Ex-Owner Account -- --
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 Page | 33
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 74.84 76.09
- Leave Encashment 73.60 75.03
- PPLB 261.78 217.39
- PRP 330.29 264.46
- Other Employee 65.57 69.12
Benefits
For Proposed Dividend -- --
For Corporate Dividend Tax -- --
Provision for Income Tax 469.52 154.06
Less : Advance Income Tax (252.91) (18.74)

/ Tax Deducted at Source
For Excise Duty on Closing 26.14 18.59

Stock of Coal
For Others 2.58 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

PARTICU G VALUE
LARS
As Ad Adj./Sa As As Ad Adj./Sa As As Ad Adj./Sa As Total As As
on dit les/Tra on on dit les/Tra on on dit les/Tra on Depreciat on on
ion nsfer 31. 01. ion nsfer 31. 01. ion nsfer 31. ion/Impa 31. 31.
01. du during 03. 04. du during 03. 04. du during 03. irment 03. 03.
04. rin the 15 14 rin the 15 14 rin the 15 Loss 15 14 Page | 34
14 g period g period g period
th th th
e e e
pe pe pe
rio rio rio
d d d
Tangible
Assets
Land
a. F 69. 34. (31.85) 72. 5.5 -- (5.58) 0.0 -- -- -- -- 0.01 72. 64.
r 68 90 73 9 1 72 09
e
e
h
o
l
d
b. L 12 99. 31.38 25 33. 13. 5.58 52. -- -- -- -- 52.20 20 91.

e 4.2 33 4.9 25 57 20 2.7 17
a 2 3 3
s
e
h
o
l
d
Building/ 49 20. (0.30) 51 23 17. 13.01 26 -- -- -- -- 264.78 24 25

Water 3.0 54 3.2 4.5 18 4.7 8.4 8.4
Supply/R 2 6 9 8 8 3
oad &
Culverts
Plant & 36 26 (39.55) 38 28 16 (6.36) 29 -- -- -- -- 2993.45 85 79

Equipme 25. 6.3 52. 35. 4.4 93. 9.2 0.5
nts 87 4 66 36 5 45 1 1
Telecom 31. 0.2 -- 31. 18. 1.0 -- 19. -- -- -- -- 19.67 12. 13.
municati 71 8 99 61 6 67 32 10
on
Railway 26. 1.5 -- 28. 19. 0.9 0.94 21. -- -- -- -- 21.78 6.4 6.8
Sidings 75 0 25 91 3 78 7 4
Furniture 10 8.6 -- 11 77. 4.4 4.57 86. -- -- -- -- 86.71 29. 29.
& 7.4 7 6.0 67 7 71 36 73
Fixtures/ 0 7
Office
Tools&
Equipme
nts/Elect
rical Page | 35
Fittings/
Fire
Arms
Vehicle 13. 0.4 (0.26) 14. 11. 0.2 (0.25) 11. -- -- -- -- 11.85 2.2 2.1
96 4 14 84 6 85 9 2
Aircraft -- -- -- -- -- -- -- --
Develop
ment
Assets 9.1 -- (0.99) 8.1 9.1 -- (0.99) 8.1 -- -- -- -- 8.17 -- --

taken on 6 7 6 7
Nationali
sation
Surveyed 36 -- 22.97 38 -- -- -- -- 36 1.2 21.74 38 384.63 -- --

Off 1.6 4.6 1.6 3 4.7
Assets 6 3 6 3
TOTAL 48 43 (18.60) 52 32 20 10.92 34 36 1.2 21.74 38 3843.25 14 12

63. 2.0 76. 45. 1.9 58. 1.6 3 4.7 33. 55.
43 0 83 78 2 62 6 3 58 99
Tangible 42 31 (88.06) 45 31 16 (76.45) 32 -- -- -- -- 3245.78 12 11

Assets 72. 7.0 01. 60. 1.6 45. 55. 24.
(As on 75 8 77 59 4 78 9 94
31.03.20
14)
Intangibl
e Assets
Compute
r
Software
Develop 10 45. -- 11 73 20. -- 75 23 17. 2.62 25 1010.63 12 12

ment 92. 75 38. 8.0 91 8.9 1.7 26 1.6 7.8 2.9
75 50 6 7 8 6 7 1
Prospecti 20 0.6 -- 20 13 1.1 (0.20) 13 61. 0.2 -- 61. 199.43 3.9 4.8
ng & 2.7 4 3.3 6.7 6 7.7 06 6 68 5 9
Boring 4 8 9 5
Total 12 46. -- 13 87 22. (0.20) 89 29 17. 2.62 31 1210.06 13 12

95. 39 41. 4.8 07 6.7 2.8 88 3.3 1.8 7.8
49 88 5 2 4 4 2 0
Intangibl 12 32. (0.06) 12 84 32. 0.01 87 27 15. (0.29) 29 1167.69 12 15
e Assets 62. 75 95. 2.2 57 4.8 7.8 27 2.8 7.8 7.8
(As on 80 49 7 5 6 4 0 3
31.03.20
14)
GRAND 61 47 (18.60) 66 41 22 10.72 43 65 19. 24.36 69 5053.31 15 13

Page | 36
TOTAL 58. 8.3 18. 20. 3.9 55. 4.5 11 7.9 65. 83.
92 9 71 63 9 34 0 7 40 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)
COST PROVISION IMPAIRMENT LOSS TOTAL CARRYIN
PARTI G VALUE
CULA As Ad Adj./Sa As As Ad Adj./Sa As As Ad Adj./Sa As Total As As
RS on diti les/Tra on on diti les/Tra on on diti les/Tra on Depreciat on on
01. on nsfer 31. 01. on nsfer 31. 01. on nsfer 31. ion/Impai 31. 31.
04. du during 03. 04. du during 03. 04. du during 03. rment 03. 03.
14 rin the 15 14 rin the 15 14 rin the 15 Loss 15 14
g period g period g period
the the the
per per per
iod iod iod
Tangi
ble
Asset
s
Buildi 19. 29. (20.62) 28. 5.9 0.0 -- 5.9 -- -- -- -- 5.92 22. 13.
ng/W 46 74 58 1 1 2 66 55
ater
Suppl
y
/Road
&
Culve
rts
Plant 12 32 (196.15 25 36. 0.2 (0.01) 36. -- -- -- -- 36.96 21 85.
& 2.3 7.8 ) 4.0 69 8 96 7.1 68
Equip 7 7 9 3
ment
s
Railw 7.1 17. (1.21) 23. 2.6 -- -- 2.6 -- -- -- -- 2.63 21. 4.5
ay 4 81 74 3 3 11 1
Siding
s
Devel -- 0.0 -- 0.0 -- -- -- -- -- -- -- -- -- 0.0 --
opme 8 8 8
nt
Other 4.0 11. (9.71) 5.8 0.9 0.0 -- 0.9 -- -- -- -- 0.98 4.8 3.1
s 8 49 6 5 3 8 8 3
TOTA 15 38 (227.6 31 46. 0.3 (0.01) 46. -- -- -- -- 46.49 25 10 Page | 37
L 3.0 6.9 9) 2.3 18 2 49 6.8 6.8
5 9 5 6 7
Tangi 10 31 (273.31 15 46. 0.1 -0.05 46. -- -- -- -- 46.18 10 61.
ble 7.4 8.9 ) 3.0 09 4 18 6.8 32
Asset 1 5 5 7
s
(As
on
31.03
.2014
)
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)
COST PROVISION IMPAIRMENT LOSS TOTAL CARRYIN

G VALUE
PART
ICUL As Ad Adj./Sa As As Ad Adj./Sa As As Ad Adj./Sa As Total As As
ARS on diti les/Tra on on diti les/Tra on on diti les/tra on Depreciat on on
01. on nsfer 31. 01. on nsfer 31. 01. on nsfer 31. ion/Impai 31. 31.
04. du during 03. 04. du during 03. 04. du during 03. rment 03. 03.
14 rin the 15 14 rin the 15 14 rin the 15 Loss 15 14
g period g period g period
the the the
per per per
iod iod iod
Intan
gible
Asset
s
Deve 62. 57. (40.13) 79. 10. 0.0 (2.27) 8.2 22. 1.7 (0.35) 24. 32.22 47. 29.
lopm 70 11 68 47 1 1 58 8 01 46 65
ent
Pros 4.8 32. (0.64) 36. 2.7 -- -- 2.7 1.3 -- -- 1.3 4.11 32. 0.7
pecti 2 66 84 3 3 8 8 73 1
ng &
Borin
g
TOTA 67. 89. (40.77) 11 13. 0.0 (2.27) 10. 23. 1.7 (0.35) 25. 36.33 80. 30.
L 52 77 6.5 20 1 94 96 8 39 19 36
2
Intan 54. 46. (33.16) 67. 13. -- (0.74) 13. 19. 4.0 (0.03) 23. 37.16 30. 20.
gible 12 56 52 94 20 97 2 96 36 21
Asset
s
(As
on Page | 38
31.03
.2014
)
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 Face value per

shares/bonds/secu shares/bonds/securi AS AT AS AT
rities current ty current 31-03- 31-03-
year/(previous year/(previous 2015 2014
year) year)(Rs.)
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)
Equity Shares in
Subsidiaries
Companies (with -- -- -- --
name of
Subsidiaries)
Others (in Co- Page | 39

operative Shares) -- -- 0.08 0.08
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
Total 0.08 0.13
Aggregate of
Quoted -- --
Investment
Aggregate of
Unquoted -- --
Investment
Market Value of
Quoted -- --
Investment Page | 40
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 162.29 88.57
goods
-Doubtful 3.95 4.80
166.24 93.37
Less : Provision for Doubtful 3.95 4.80

Loans and Advances
162.29 88.57
For Revenue
goods
goods
-Doubtful 0.56 0.56
2.79 2.76

Loans and Advances
2.23 2.20
Security Deposits
goods
goods
-Doubtful 1.52 0.66
8.78 8.55
Loans and Advances
7.26 7.89
Deposit for P&T, Electricity
etc.
-Secured considered -- -- Page | 41
goods
goods
-Doubtful 0.44 0.44
0.79 0.81
Loans and Advances
0.35 0.37
LOAN TO EMPLOYEES &
OTHERS
For House Building

-Secured considered 0.56 0.82
goods
-Unsecured considered -- --
goods
-Doubtful -- --
0.56 0.82
For Motorcar and Other
Conveyance
-secured considered 0.02 0.01
goods
goods
-Doubtful -- --
0.02 0.01
For Others
goods
goods
-Doubtful -- --
-- --
Less : Provision for Doubtful
Loans and Advances -- --
-- --
172.71 99.86
LOAN TO SUBSIDIARIES
goods
goods
-Doubtful -- --
172.71 99.86
Note
MAXIMUM AMOUNT
DUE AT ANY TIME
PARTICULARS CLOSING BALANCE DURING
CURRENT PREVIOUS CURRENT PREVIOUS

PERIOD PERIOD PERIOD PERIOD
Page | 42
Due by the Companies in which
directors of the company is also a
director/member (with name of NIL NIL NIL NIL
the Companies)
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
- Unsecured considered -- --
goods
- Doubtful -- --
-- --
Less: Provision for bad and -- --
doubtful
Receivables for Mine
Closure Expenses 1.09 --
Other Receivables
goods
- Unsecured considered 16.32 16.33
goods
- Doubtful 4.98 5.22
21.30 21.55
doubtful Receivables 4.98 5.22
16.32 16.33
Total 17.41 16.33 Page | 43
Note:
CLOSING BALANCE MAXIMUM AMOUNT DUE

AT ANY TIME DURING
PARTICULARS
Due by the Companies in

which directors of the
company is also a NIL NIL NIL NIL
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
NOTE – 14
CURRENT INVESTMENTS - Quoted / Unquoted at Cost
(Rs. In Crores)
Number of Face value Market AS AT AS AT

shares/bonds/s per shares value/NAV per 31.03.2 31.03.2
ecurities current /bonds/sec shares/bonds/s 015 014
year/(previous urities ecurities current
year) current year/(previous
year/(previ year)(Rs.)
ous
year)(Rs.)
NON
TRADE
Mutual
Fund
Investm
ent (
with
name of -- -- -- -- --
mutual
fund )
7.55%
Non
Converti
ble IRFC
Tax Free Page | 44
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
Unquote -- --
d
Investm
ent
Provision
made for Page | 45
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 386.00 299.95
Coal Under Development -- --
Less : Provision 1.76 1.76
A. Stock of Coal (Net)
at lower of cost or 384.24 298.19
net realisable
value
Stock of Stores & Spares 188.06 177.68
(at cost)
Stores -in –transit 0.34 0.06
B. Net Stock of
Stores & Spares 149.59 133.77
(at cost)
C. Workshop Jobs :
Work-in-progress
and Finished Goods 16.50 18.06

Net Stock of Workshop 16.38 17.86
Jobs (at cost)
D. Press :
Work-in-Progress
and Finished Goods -- --
E. Stock of Medicine at
Central Hospital (at 0.81 0.70
cost)
F. Prospecting &
Boring/ Development
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:
Page | 46
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 VENDABLE STOCK

STOCK
Qty. Value Qty. Value Qty. Value
1.A)Opening stock 23.84 34651 4.71 4656 19.13 29995

as on 01.04.14
B) Adjustment
in Opening Stock 0.00 0 0.00 0 0.00 0
23.84 34651 4.71 4656 19.13 29995
2.Production for the

year 400.08 1019102 0.00 0 400.08 1019102
3. Sub-Total ( 1+2) 423.92 1053753 4.71 4656 419.21 1049097
4. Off- Take for the

year :
A) Outside 382.20 1001853 0.00 0 382.20 1001853

Despatch
B) Coal feed to 0.00 0 0.00 0 0.00 0
Washeries
C) Own 2.50 8644 0.00 0 2.50 8644
Consumption
TOTAL(A) 384.70 1010497 0.00 0 384.70 1010497
5. Derived Stock 39.22 43256 4.71 4656 34.51 38600
6. Measured Stock 38.61 42585 4.71 4656 33.90 37929

Page | 47
7. Difference (5-6) 0.61 671 0.61 671
8. Break-up of
Difference:
A) Excess within 5% 0.07 73 0.00 0 0.07 73

B) Shortage within 0.68 744 0.00 0 0.68 744
5%
C) Excess beyond 0.00 0 0.00 0 0.00 0
5%
D) Shortage beyond 0.00 0 0.00 0 0.00 0
5%
9. Closing stock
adopted in A/c. 39.22 43256 4.71 4656 34.51 38600
(6-8A+8B)
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
good
good
-Doubtful 455.07 423.70
1216.38 1566.44
doubtful trade receivables 455.07 423.70
761.31 1142.74
Other Debts
good
good
-Doubtful 8.07 --
673.64 577.27
doubtful trade receivables 8.07 --
655.57 577.27
Total 1426.88 1720.01
Notes: Page | 48
CLOSING BALANCE MAXIMUM AMOUNT DUE

AT ANY TIME DURING

Due by the companies in

company is also a
director/member (With NIL NIL NIL NIL

the Director(s) of company NIL NIL NIL NIL
is/are interested
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 Rs. In Crore Rs. In Crore
as under: 31.03.15 31.03.14
Opening Provision 423.70 399.39
Less: Settled/Written
off/Adjusted against -- --
opening debtors
Add: New provision during 90.23 92.82

the year
Less: Written back from 50.79 68.51

opening provision
Closing Balance 463.14 423.70
NOTE – 17
CASH & BANK BALANCE
AS AT 31-03-2015 AS AT 31-03-2014
Balances with Scheduled
Banks
-SBI Dividend Account Page | 49
(unpaid/unclaimed dividend
account)
-In Deposit Accounts
with maturity upto 3 318.28 529.32
months
-In Current Accounts 219.09 584.43
-In Cash Credit Accounts -- --
Balances with Non -

Scheduled Banks
In Account with Banks -- --

outside India
Remittance - in transit -- --
Cheques, Drafts and
Stamps on hand 0.83 0.08
Cash on hand 0.57 0.72
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 3877.05 2663.93
with maturity more than 3
months

Banks under Shifting and
Rehabilitation Fund Scheme -- --
with maturity more than 3
months

Banks under Mine Closure 148.06 73.52
Plan Scheme*
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
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.

Page | 50
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
good
good
-Doubtful 0.49 2.50
75.70 76.59
doubtful Advance 0.49 2.50
75.21 74.09
75.21 74.09
ADV PAYMENT OF
STATUTORY DUES
Sales Tax -- --
good
good
-Doubtful -- --
28.03 24.08
doubtful Advance
28.03 24.08
Advance Income Tax / Tax

Deducted at Source -- --
Less : Provision for Income -- --

Tax
-- --
Others
good
good
-Doubtful 0.20 0.44 Page | 51
21.73 20.59
21.53 20.15
49.56 44.23
Advance to Employees
good
good
-Doubtful 1.32 1.32
79.34 81.16
78.02 79.84
Current Account with Coal

India Limited & other -- --
Subsidiaries of Coal India
Limited
Loan Account with

Subsidiaries
good
good
-Doubtful -- --

doubtful Loan
MAT Credit Entitlement 174.62 --

Claims Receivables -- --
-Secured Considered -- --
Good
good
-Doubtful 2.20 2.20
2.21 8.90
doubtful claim receivables 2.20 2.20
0.01 6.70
Prepaid Expenses 0.39 0.39
253.04 86.93
Total 377.81 205.25
Note:
CLOSING BALANCE MAXIMUM AMOUNT
DUE AT ANY TIME
DURING

PERIOD PERIOD PERIOD PERIOD Page | 52
Due by the companies in

company is also a
director/member (with NIL NIL NIL NIL

the Director(s) of company
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 257.35 127.72
-Others -- --
Ex Owner’s Account -- --
Other Advances 0.06 0.06
Less: Provision -- --
0.06 0.06
DEPOSITS
Deposit for Customs Duty, -- --

Port Charges etc.
Deposit with Coal India -- --
Limited
Deposit for Royalty, Cess & -- --
Sales Tax
Others 5.55 3.74
Less: Provision 0.49 0.49
5.06 3.25
Amount Receivable from
Govt of India for
transactions on behalf of -- --
Ex-Coal Board
Other Receivables 84.42 140.75

83.26 139.62 Page | 53
TOTAL 345.73 270.65
NOTES TO STATEMENT OF PROFIT & LOSS CONSOLIDATED:
NOTE – 20
REVENUE FROM OPERATIONS
(Rs. In Crores)
For the year ended For the year ended

31-03-2015 31-03-2014
A. Sales of Coal 13413.84 11945.92
Less: Excise Duty 655.62 595.80
Less: Other Levies

Royalty 350.75 322.83
Cess on Coal 1578.58 1522.89
Stowing Excise Duty 38.22 35.98
Central Sales Tax 192.68 150.20
Clean Energy Cess 374.17 179.89
State Sales Tax/VAT 176.99 238.22
Other Levies 28.29 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 49.58 53.62
Loading and additional

transportation charges 185.57 181.87
Less: Excise Duty 8.42 8.37
Less: Other Levies 4.74 5.46
OTHER OPERATING
REVENUE (B) 221.99 221.66
C. Revenue from 10240.53 9109.45

Operation (A+B)
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 Page | 54
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)

31-03-2015 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) -- 0.01
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)
Income From Others
Interest (Gross)
From deposit with banks 421.89 189.86
From loans and advances to 0.10 0.10
employees
From income tax refunds -- 0.09 Page | 55
From Coal India -- --
Others 0.01 0.01
Central Excise Duty on -- 2.16

closing of coal
Apex Charges -- --
Profit on Sale of Assets 1.10 1.63
Recovery of Transportation -- --
& Loading Cost
Gain on Foreign exchange -- --
Transactions
Exchange Rate Variance -- --
Lease Rent -- --
Liability Write Backs 12.43 124.45
Guarantee Fees from -- --
Subsidiaries
Other non-operating 236.73 172.94
Income
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)

31-03-2015 31-03-2014
Explosives 147.58 126.14
Timber 5.04 4.33
POL 280.09 277.57
HEMM Spares 134.26 140.79
Other Consumable Stores & 230.85 186.53

Spares
TOTAL 797.82 735.36

NOTE – 23
CHANGE IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND

STOCK IN TRADE
Page | 56
(Rs. In Crore)

31-03-2015 31-03-2014
Opening Stock of Coal / 297.19 307.06
Coke
Add : Adjustment of -- --
Opening Stock
Less : Deterioration of 1.76 1.76
Coal/Coke
Total (1) 295.43 305.30
Less : Closing Stock of 383.51 297.19
Coal/Coke
Less: Deterioration of 1.76 1.76
Coal/Coke
Total (2) 381.75 295.43
A) Change in Inventory (86.32) 9.87
of Closing Stock (1-2)
Opening Stock of Workshop

made finished goods and 18.06 13.83
WIP
Total (3) 17.86 13.63
Closing Stock of Workshop 16.50 18.06
made finished goods and
WIP
Total (4) 16.38 17.86
B) Change in Inventory 1.48 (4.23)
of Closing Stock of
workshop (3-4)
Press Opening Job

i) Finished Goods -- --
ii) Work in Progress -- --
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) -- --
-- --
-- --
-- --
Total Change in
Inventory of Stock (84.84) 5.64
(A+B+C )
NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.) CONSOLIDATED: Page | 57
NOTE – 24
EMPLOYEE BENEFIT EXPENSES
(Rs. In Crores)

31-03-2015 31-03-2014
Salary, Wages, Allowances 4177.68 4056.42
& Benefits
Exgratia 296.44 231.96
PRP 65.82 64.02
Contribution to P.F. & Other 489.96 468.03

Funds
Gratuity 339.79 264.43
Leave Encashment 170.36 145.82
VRS 1.85 3.12
Workman Compensation 5.29 4.13
Medical Expenses for 36.41 33.43
existing employees
Medical Expenses for retired 29.62 13.41
employees
Grants to Schools & 6.61 5.96
Institutions
Sports & Recreation 1.45 1.42
Canteen & Creche 0.24 0.13
Power – Township 111.21 113.63
Hire Charges of Bus, 5.33 5.36
Ambulance eyc.
Other Employee Benefits 112.44 101.30
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.
NOTE – 25
Corporate Social Responsibility Expenses
(Rs. In Crores) Page | 58

31-03-2015 31-03-2014
CSR Expenses 24.85 --
TOTAL 24.85 --
NOTE – 26
REPAIRS
(Rs. In Crores)

31-03-2015 31-03-2014
Building 6.42 4.24
Plant & Machinery 92.66 69.60
Others 2.14 2.63
TOTAL 101.22 76.47
NOTE – 27
CONTRACTUAL EXPENSES
(Rs. In Crores)

31-03-2015 31-03-2014
Transportation Charges:
-Sand 54.54 53.58
-Coal & Coke 230.58 223.23
-Stores & Others etc. 1.66 1.76
Wagon Loading 19.96 7.42
Hiring of P & M 540.91 379.16
Other Contractual Work 177.38 155.38

TOTAL 1025.03 820.53
NOTE – 28
FINANCE COSTS
(Rs. In Crores)
For the year ended For the year ended Page | 59

31-03-2015 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)

31-03-2015 31-03-2014
A) PROVISION MADE
FOR
Doubtful debts 90.23 92.82
Doubtful advances & Claims 0.04 0.03
Foreign exchange -- --
transaction
Reclamation of Land/Mine 66.49 71.03
Closure Expenses
Surveyed of Fixed Assets 1.56 4.01
/Capital WIP
Others 0.09 --
TOTAL (A) 158.96 168.64
B) PROVISION WRITTEN
BACK
Doubtful Debts 50.79 68.51
Doubtful advances & Claims 2.49 0.62
Foreign Exchange -- --
Transaction
Reclamation of Land/Mine -- 271.38
Closure Expenses
Surveyed of Fixed Assets 0.36 1.12
/Capital WIP Page | 60
Others 0.03 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)

31-03-2015 31-03-2014
Doubtful debts 68.66 127.70
Doubtful advances 2.49 --
Others 2.27 --
TOTAL 73.42 127.70
NOTE – 31
OTHER EXPENSES
(Rs. In Crores)

31-03-2015 31-03-2014
Travelling expenses
-Domestic 11.11 12.05
-Foreign 0.13 0.54
Training Expenses 2.94 2.65
Telephone & Postage 1.79 1.78
Advertisement & Publicity 3.37 4.21
Freight Charges 0.08 0.03
Demurrage 0.70 0.38
Donation/Subscription 0.03 0.13
Security Expenses 73.81 62.30
Service charges of CIL 7.46 --
Hire Charges 17.88 16.22
CMPDI Expenses 20.57 9.59
Legal Expenses 2.28 1.30
Bank Charges 0.24 0.12
Guest House Expenses 1.76 1.72
Consultancy Charges 4.88 0.65
Under Loading Charges 22.37 10.59
Loss on Sale/Discard/Surveyed 0.01 --
of Assets Page | 61
Auditor’s Remuneration &
Expenses
-For Audit Fees 0.14 0.14
-For Taxation Matters 0.07 0.09
-For Company Law Matters -- --
-For Management Services -- --
-For Other Services 0.10 0.09
-For Reimbursement of 0.14 0.24
Expenses
Internal Audit Fees & Expenses 2.28 1.48
Rehabilitation Charges 6.84 --
Royalty & Cess 3.26 1.91
Central Excise Duty 7.55 --
Rent -- --
Rates & Taxes 1.92 4.29
Insurance 0.08 0.03
Loss on Exchange Rate Variance 9.61 13.46
Lease Rent -- --
Rescue/Safety Expenses 3.31 2.82
Dead Rent/Surface Rent 14.44 8.47
Siding Maintenance Charges 2.06 2.93
Land/Crops Compensation 0.01 0.98
R & D Expenses 7.50 --
Environmental & Tree plantation 2.52 2.42
Expenses
Miscellaneous Expenses 116.75 100.48
TOTAL 349.99 264.09
NOTE – 32
PRIOR PERIOD ADJUSTMENT
(Rs. In Crores)

31-03-2015 31-03-2014
A) Expenditure
Sale of Coal & Coke -- --

Stock of Coal & Coke -- --
Other Income -- --
Consumption of Stores & -- --
Spares
Employees Remuneration & -- --
Benefits
Power & Fuel -- --
Welfare Expenses -- --
Repairs -- --
Contractual Expenses -- 2.41
Other Expenditure -- --
Interest and other financial -- --
charges Page | 62
Depreciation -- --
TOTAL (A) -- 2.41
B) Income
Sale of Coal & Coke -- --

Stock of Coal & Coke -- --
Other Income 0.45 (1.14)
Consumption of Stores & -- 0.19
Spares
Employees Remuneration & -- --
Benefits
Power & Fuel -- --
Welfare Expenses -- --
Repairs -- --
Contractual Expenses -- --
Other Expenditure 0.59 --
Interest and other financial -- --
charges
Depreciation 1.14 --
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
estimate is recognized in the period in which the same is
determined.
2.0 Subsidies / Grants from Government:

Page | 63
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
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 Page | 64
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:
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 Page | 65
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.
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 Page | 66
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
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 Page | 67
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.
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 Page | 68
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:-
Permissible limits of variance.
Annual Quantum of
OBR of the Mine.
Page | 69
I II
% Quantum
(in Mill.Cu.Mtr.)
Less than 1 Mill.Cu.M. +/- 5% 0.03
Between 1 and 5 Mill. Cu. +/- 3% 0.20

M.
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
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.

Page | 70
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:
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: Page | 71
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 25334144509
Acquisition Adjustment 0
Interest Cost 1815831560
Past Service Cost 0
Current Service Cost 1282602212
Curtailment cost 0
Settlement Cost 0
Benefits Paid 5272500000
Actuarial gain/loss on Obligations 2937260348
Present Value of Obligation at end of Year 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 101805000000
Acquisition Adjustment 0
Expected Return on Plan Asset 814440000
Contributions 17650200000
Benefits Paid 5272500000
Actuarial gain/loss on Plan Asset 159160000
Fair Value of Plan Asset at End of year 23531800000
Table 3: DISCLOSURE ITEM 120(f): Table showing Funded Status
As at 31/03/2015
Present Value of Obligation at end Year 26097338630
Fair Value of Plan Asset at end Year 23531800000
Funded Status -2565538630
Unrecognized actuarial gain/loss at end of the year 0
Net Asset(Liability) Recognized in Balance Sheet -2565538630
Table 4:- DISCLOSURE ITEM 120(g): Table showing Expense Recognized
in Statement of Profit/Loss
As at 31/03/2015
Current Service Cost 1282602212
Past Service Cost 0
Interest Cost 1815831560 Page | 72
Expected Return on Plan Asset 814440000
Curtailment cost 0
Settlement Cost 0
Actuarial gain/loss recognized in the year 2778100349
Expense Recognized in Statement of Profit/Loss 5062094121
Table 7: DISCLOSURE ITEM 120(1): Table showing Actuarial Assumptions

As at 31/03/2015
Mortality Table IALM(2006-08)ULT.
Superannuation Age 60
Early Retirement & Disablement 10 Per Thousand P.A
6 above age 45
3 between 29 and 45
1 below age 29
Discount Rate 8.25%
Inflation Rate 6.25%
Return on Asset N.A
Remaining Working Life 12 Years
Formula Used : 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 0
Expenses as above 1703607893
Contributions 0
Closing Net Liability 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.
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- Page | 73
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 Photocopy Machine 4
2 Fax Machine 3
3 Mobile Phone 3
4 Digitally enhance cordless telephone 3
5 Computer (including printer & scanner) 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 6
Dumper Up to 35T 6
Dumper Up to 50T 7
Hydraulic Shovels up to 1.2 CUM 7
Hydraulic Shovels up to > 1.2 to 2.2 7
Hydraulic Shovels up to >2.2 to 5.0 CUM 7
Hydraulic Shovels up to > 5.0 to 10.0 CUM 7
B.H.Drill < 160mm 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:
Page | 74
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 Plant & Machineries 123.80
2 Building 3.85
3 Road & Culverts 0.86
4 Railway Siding 91.97
5 Development (Prospecting & Boring) 1.94
6 Mines Development 18.08
7 Other Development 1.68
8 Water Supply 1.21
9 Others 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 19.13 21.14 299.95 309.74
Adjust / seized coal -- -- -- --
Sales(*) 382.20 359.78 10018.54 8887.90
Closing Stock (**) 34.51 19.13 386.00 299.95
(*) 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 -- --
Components, Stores & 6.71 10.11
Spares
Capital Goods 176.25 --
11.0 Expenditure in Foreign Currency:

(Rs. In Crores)
Particulars Current Year Previous Year Page | 75
Travelling Expenses 0.13 0.54
Expenses on Know - How & Nil Nil
Foreign Consultancy.
Pension to Foreigners Nil Nil
Others 106.52 12.91
12.0 Total consumption of Stores:

(Rs. In Crores) (Percentage)
Current Year Previous Year Current Year Previous Year
Total
consumption of
imported 11.68 10.11 1.46% 1.37%
materials.
Indigenous 786.14 725.25 98.54% 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
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 Page | 76
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
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”.
Page | 77
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.
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 Page | 78
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)
d. Shri Ramesh Chandra Director (Technical) P&P (Up to
30.06.14)
e. Shri B. R. Reddy Director (Technical) P&P (w.e.f.
30.09.14)
f. Shri K. S. Patro Director (Personnel)
Page | 79
Part-time Official Director:
a. Shri A. Chatterjee Director (Finance), CIL (Up to
28.02.15)
b. Shri V. Peddanna Director, MoC
c. Shri K. K. Gautam Special Director appointed by
BIFR(Upto 28.02.15
Non-Official Part-time Director

a. Shri Subrata Chaudhuri (Up to 23.06.2014)
b. Shri S. K. Mohanti (Up to 23.06.2014)
c. Shri S. M. Lodha (Up to 23.06.2014)
d. Shri S. M. Sharma (Up to 08.09.2014)
Company Secretary
a. Shri V. R. Reddy
Details of transactions during the year

DIRECTORS’ REMUNERATION:
(Rs. In Crores)
Current Year Previous Year
Salary & Allowances 0.86 0.93
Provident Fund 0.11 0.11
Perquisites 0.16 0.19
Retirement Benefit 0.00 NIL
Leave Encashment 0.06 0.04
Medical 0.02 0.11
Special Director’s sitting fee 0.03 NIL
TA/DA & Others 0.06 NIL
TOTAL 1.30 1.38
Salary and Allowances includes PRP of Rs. NIL
Perquisites do not include value/charges for House Rent / Electrical

Energy which has been recovered as per rules of the Company and value
of Free Medical facilities in Company Hospital/Dispensary
Besides the above, Directors have been allowed to use car for private
journey up to a ceiling of 750 Kms. per month on payment of Rs. 400/-
per month as per service rules.
Balance with Subsidiaries of Coal India Limited:
Name of Company Amount (Debit) Amount (Credit)
Bharat Coking Coal Limited 17,48,146.60 --
Central Coalfields Limited 13,32,382.45 --
Western Coalfields Limited 8,12,213.08 --
CMPDIL 2,46,85,124.00 --
Northern Coalfields Limited 4,62,681.10 --
South Eastern Coalfields 27,99,07,314.56 --
Limited
Mahanadi Coalfields Limited 18,47,729.25 --
Balance with Coal India Limited (Holding Company): Rs.
1,29,01,16,099.58 (Credit).
Page | 80
3. AS – 20 Earning per share: Earnings per share is calculated by
dividing the profit earned by the company for the year with the
weighted average number of equity share of the company
outstanding during the year as per details given below :-
i) Profit during year ended 31ST March, 2015 – Rs. 1,139.40
Crore
ii) Weighted average number of shares - 22184500 Nos.
EPS - (Basic & diluted) (a/b) – Rs. 513.60
4. AS - 22 Deferred Tax Asset: Deferred Tax Asset is accounted for by

computing the tax effect of timing differences which arise during the
year and reversed in subsequent periods. The detailed calculations
are given below:
(Rs. In Crores)
Particulars Deferred Tax Adjustment Deferred Tax
Asset/(Liability) during the Asset/(Liability)
As on 01.04.14 year As on 31.03.15
2014-15
Deferred Tax Assets:
i) Provision for
Gratuity 1518.73 -1423.70 95.03
ii) Provision for
superannuation 123.12 25.16 148.28
benefit
iii) Provision for Mine 71.03 66.50 137.53
Closure
1712.88 -1332.04 380.85
Deferred Tax Liability

i) Difference
between Tax & -209.52 99.20 -110.32
Book depreciation
Net 1503.36 -1232.84 270.52
Net Deferred Tax Asset 510.99 -419.04 91.95
Impact of change in tax
rates in current year
Net Amount debited to Profit
and Loss Account
Deferred Tax Asset (Net) 510.99 -419.04 91.95
In the opinion of the management there is a reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realised.
5. AS-24: There is no discontinuation in operation of any activity in
any mines during the year.
6. AS- 28: Impairment loss of Rs. 19.66 crores (Rs. 19.29 crores) on
prospecting & boring and other mines development cost, including
Capital WIP, for the year has been debited to Statement of Profit
and Loss under the head "impairment of assets " as per company's Page | 81
accounting policy.
7. AS-29: In respect of Provision, Contingent Liabilities the information
is given below.
a. Details of Provision :
(Rs. In Crores)
Details Opening Provision Provision Closing
Provision as made during Written Provision as
on the Back on
31.03.2014 year/period During the 31.03.2015
year
Unserviceable/Damaged/ 12.54 -- 2.07 10.47
Obsolete Stores
Non moving Stores 31.43 0.55 3.64 28.34
Loans and Advances

and Other Current 19.76 0.04 2.49 17.31
Assets
Mine Closure Plan 73.52 74.54 -- 148.06
Actuarial provision for 2533.42 76.32 -- 2609.74

Gratuity

Leave encashment

LTC/ LLTC

Life Cover Scheme

Settlement Allowances
Actuarial Provision for

Fatal Mine Accident 46.92 -- 3.36 43.56
Policy Benefit

Gross Personal Accident 0.15 -- -- 0.15
Policy

Post Retirement Medical 114.29 27.30 -- 141.59
benefit
TOTAL 3455.79 227.45 11.56 3671.68

b. Contingent Liabilities:
(Rs. In Crores)
Current Year Previous Year
Sales tax 219.16 154.80
Royalty & Cess 589.70 596.42
Others 999.87 565.20 Page | 82
TOTAL 1808.73 1316.42
15.0 The figures in the parenthesis represent those of the corresponding

previous year.
16.0 Figures of the previous year have been regrouped, re-arranged and
recast wherever necessary in conformity with those of the current year.
Analysis and Interpretation of Ratio
1. Current Ratio:
This ratio indicates the rupees of current assets available for each rupee
Page | 83
of current Liability. By this ratio we can see the stability of the firm or
short term financial position of the firm.
The ratio is calculated as follows;
Current Ratio= Current Assets/Current Liability
SL No. Year Current Current Ratio (In

Assets Liability Times)
1 2014-15 7265.35 4587.05 1.583
2 2013-14 6498.46 5491.33 1.183
Ratio
1.6
1.4
1.2
1
Ratio
0.8
0.6
0.4
0.2
0
2014-15 2013-14
Interpretation:
According to the standards the Current Ratio of the company should be

2:1.
2. Quick /Liquid/Acid Test Ratio:

It shows the relationship between quick assets & quick liabilities. It
shows the business solvency or strength of liquidity.
That are calculated as follows:
Liquid Ratio =Current Assets-Stock-Prepaid

Expenses/Current Liability-Bank overdraft
SL Year Curren Stock Prepaid Current Bank Ratio
No t Expense Liabilitie Overdraf (In
. Assets s s t Times
)
1 2014 7265.3 551.0 0 4587.05 0 1.464
-15 5 2
2 2013 6498.4 450.5 0 5491.33 0 1.101
-14 6 2
Page | 84
Ratio
1.6
1.4
1.2
1
0.8 Ratio
0.6
0.4
0.2
0
2014-15 2013-14
Interpretation:
The ideal ratio of the company should be 1:1.
3. DEBT-EQUITY RATIO:
It measures the relation between debt and equity in the capital
structure of the firm. In other words, this ratio shows the
relationship between the borrowed capital and owner’s capital, this
ratio shows relative claim of the creditors and shareholders against
the assets of the company.
This ratio is calculated as follows,
Debt Equity Ratio=Long Term Debt/Shareholder’s Fund
SL No. Year Long Term Shareholder’s Ratio (In

Debt Fund Times)
1 2014-15 3318.48 1553.42 2.136
2 2013-14 4741.83 (1586.37) NIL
Ratio
2.5
Page | 85
2
1.5 Ratio
1
0.5
0
2014-15 2013-14
Interpretation:
General Standard of Debt Equity ratio is 2:1.
4. Total Assets to Debt Ratio:

It measures the share of total assets financed by outside funds. It’s
an indicator of financial leverage. It tells the percentage of total
assets that were financed by creditors, liabilities, debt.
Total Assets to Debt Ratio = Total Assets / Long Term Loan
SL No. Year Total Long Term Ratio (In

Assets Loan Times)
1 2014-15 9458.95 3318.48 2.850
2 2013-14 8646.79 4741.83 1.824
Ratio
3
2.5
2
Ratio
1.5
1
0.5
0
2014-15 2013-14
Interpretation:
A ratio is greater than 1 shows that a considerable proportion of assets

are being funded with debt, while a low ratio indicates that the bulk of
asset funding is coming from equity.
Page | 86
5. Proprietary Ratio:
It indicates the proportion of total assets financed by the owners. It
establishes relationship between the proprietor or shareholder’s
funds & total tangible assets.
It may be expressed as:
Proprietary Ratio = Shareholder’s Fund / Total Assets *100
SL No. Year Shareholder’s Total Ratio ( In

Fund Assets %)
1 2014-15 1553.42 9458.95 16.42
2 2013-14 (1586.37) 8646.79 NIL
Ratio
20.00%
15.00%
Ratio
10.00%
5.00%
0.00%
2014-15 2013-14
Interpretation:
Higher ratio, say more than 75% shows lesser dependence on external
sources.
Lower ratio, say less than 60% shows more dependence on external
sources.
6. Debtors Turnover Ratio:

It indicates the average number of times the debtors make
payment in a year. This ratio expresses how quickly cash is
collected from customers.
Debtors Turnover Ratio = Net Credit Sales / Average Debtors
SL No. Year Net Credit Average Ratio( In

Sales Debtors Times )
1 2014-15 10018.54 1426.88 7.02 Page | 87
2 2013-14 8887.79 1720.01 5.17
Ratio
8
7
6
5
Ratio
4
3
2
1
0
2014-15 2013-14
Interpretation:
It shows number of times the receivables rotate in a year in times of

sales. It shows how quickly debtors are converted in to cash.
7. Working Capital Turnover Ratio:

The working capital turnover ratio measures how well a company is
utilizing its working capital to support a given level of sales.
Working capital is current assets minus current liabilities.
Working Capital Turnover Ratio = Net Sales / Working

Capital
SL No. Year Current Current Working Net Ratio (

Asset Liability Capital Sales In Times
)
1 2014-15 7265.35 4587.05 2678.3 10018.54 3.74
2 2013-14 6498.46 5491.33 1007.13 8887.79 8.82
Ratio
9
Page | 88
8
7
6
5 Ratio
4
3
2
1
0
2014-15 2013-14
Interpretation:
A high turnover ratio indicates that management is being extremely

efficient in using a firm’s short term assets and liabilities to support sales.
Conversely, a low ratio indicates that a company is investing in too many

accounts receivable and inventory assets to support its sales, which could
eventually lead to an excessive amount of bad debts and obsolete
inventory.
8. Return on Investment:
This ratio helps indicate how much return the company has earned
per rupee of capital invested in the business. Here return refers to
net profit and investment to capital employed in the company.
Return on Investment = Profit before interest, tax &

dividend / Capital Employed
= Profit before interest, tax &
dividend / Fixed Assets + Current Assets – Current
Liability*100
SL Year Profit Fixed Current Current Capital Ratio

No. before Assets Assets Liability Employed (In
interest, %)
tax &
dividend
1 2014- 1782.41 1911.45 7265.35 4587.05 4589.75 38.83
15
2 2013- 1299.28 1521.02 6498.46 5491.33 2528.15 51.39
14
Ratio Page | 89
60
50
40
Ratio
30
20
10
0
2014-15 2013-14
Interpretation:
A higher return on investment means that investment gains compare

favourably to investment costs.
9. Net Profit Ratio:

It is the ratio between net profit and sales. This ratio indicates
company’s capacity to withstand adverse economic conditions. This
ratio is also known as net margin. Depending on the concept of net
profit employed, it is calculated as follows:
Net Profit Ratio = Net Profit / Net Sales * 100
SL No. Year Net Profit Net Sales Ratio ( In %

)
1 2014-15 1139.40 10018.54 11.37
2 2013-14 872.23 8887.79 9.81
Ratio
11.5
Page | 90
11
10.5
Ratio
10
9.5
9
2014-15 2013-14
Interpretation:
A company with high net margin ratio would ensure adequate return to
the owners as well as enable a firm to withstand adverse economic
condition when selling price is declining, cost of production is rising and
demand for the product is falling. It would really be difficult for a low net
margin ratio company to withstand these advantageous.
10. Return on Equity:

The ratio indicates the rate of return that equity shareholder’s earn
on their investment.
Return on Equity = Profit after Tax / Share Capital*100
SL No. Year Profit After Share Ratio ( In

Tax Capital %)
1 2014-15 1139.40 4269.42 26.69
2 2013-14 872.23 2218.45 39.32
Ratio
40
Page | 91
30
Ratio
20
10
0
2014-15 2013-14
Interpretation:
The higher the ratio percentage, the more efficient management is in

utilizing its equity base and the better return is to investors.
11. Capital Employed Turnover Ratio:

The capital employed turnover ratio shows how efficiently the sales
are generated from the capital employed by the firm. This ratio
helps the investors or the creditors to determine the ability of a firm
to generate revenues from the capital employed and act as a key
decision factor for lending more money to the asking firm.
Capital Employed Turnover Ratio = Net sales / Capital Employed
SL No. Year Net Sales Capital Ratio ( In

Employed Times )
1 2014-15 10018.54 4589.75 2.183
2 2013-14 8887.79 2528.15 3.516
Ratio
3
Ratio
2
0
2014-15 2013-14
Interpretation:
Higher the ratio better is the utilization of capital employed and shows the
ability of the firm to generate maximum profits with the minimum amount
of capital employed.
Page | 92
12. Return on Net Worth:
This ratio is similar to Return on equity share capital ratio, the only
difference is that the denominator should not be restricted to paid
up capital alone. It should include Reserves and surplus as well.
Return on Net Worth = Profit after interest & tax / Net

Worth*100
= Profit after interest & tax / Equity
share capital + Reserve & Surplus*100
SL No. Year Profit Equity Reserve Net Ratio (

after Share & Worth In % )
interest Capital Surplus
& tax
1 2014-15 1139.40 4269.42 (2716.00) 1553.42 73.35
2 2013-14 872.23 2218.45 (3804.82) (1586.37) NIL
Ratio
80
60
Ratio
40
20
0
2014-15 2013-14
Interpretation:
An excessively high net worth ratio may indicate that a company is

funding its operations with a disproportionate amount of debt and trade
payables. If so, a decline in its company could result in the inability to pay
back the debt, which increases the risk of bankruptcy; this means that
the shareholder’s may lose their investment in the company.
LIMITATIONS
Page | 93
1. Ratios become reliable only when they are based on correct data.
2. Since ratios based only on data of two years cannot reveal much,
they are not found to be much useful.
3. They cannot help much in decision making as they are based on the
past. Sometimes standard ratios are used for budgeting.
4. Accounting data should be compiled on uniform basis, otherwise
meaningful inter-firm and inter-period comparison will not be
available.
5. It may appear from the ratios that, as if, a particular factor is
responsible for the ups and downs in a business. But financial
results are the outcome of various factors, like general economic
condition, Changes in price level, local factors, specific competition,
management policy.
FINDINGS
Page | 94
1. The Current ratio is below the standard ratio and it is not good from
company’s point of view. It shows that it is not good position to
meet the short term liabilities.
2. The liquidity ratio is according to standard ratio (1:1) and it is good
from company’s point of view. It shows the company is able to meet
its liabilities is short period.
3. The debtor turnover ratio is good. It shows the collection of debtors
is very prompt.
4. Net profit Ratio in the 2013-14 was 9.81% but in the 2014-15
increased 11.37% it shows favourable of the company.
SUGGESTIONS
Page | 95
1. The current ratio of the company doesn’t reach standard ratio so

company need to concentrate on increasing the current ratio by
increasing in current assets.
2. Debt ratio of the company has been increased to subsequent year.
High debt ratio is unfavourable of the company.
3. The company needs to maintain good capital employed turnover
ratio by increasing the sales.
4. The company needs to increases the working capital turnover ratio
for efficiency utilization of working capital.
CONCLUSION
Page | 96
Study of the ratio analysis of Eastern Coalfield Limited reveals the

performance of the company in terms of financial aspects. It is found that
there is an increase in sales, net profit, during 2014-15 the cash balance
is also increased for the above said year. It is also observed that the
current ratio is not satisfactory. Net working capital ratio is also increasing
for the above said year.
Further the company performance and efficiency can be improved by

above mentioned points in the suggestion.
BIBLIOGRAPHY
Page | 97
 ANNUAL REPORT & ACCOUNTS 2014-15
BOOKS
 FINANCIAL & MANAGEMENT ACCOUNTING (Sikkim Manipal

University Studymate)
 ACCOUNTING THEORY AND MANAGEMENT ACCOUNTANCY (GOKUL
SINHA)
WEBSITES
 www.google.com
 www.easterncoal.gov.in
 www.coalindia.org.nic

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Entitled: A Brief Study on Ratio Analysis in Eastern

I hereby declare that the Project Report

A Brief Study on Ratio Analysis in Eastern Coalfield Limited

Date: ___________ Name: Srabani Dutta

Place: ___________ Roll No.: 1411004502

This is to certify that project report entitled:

A Brief Study on Ratio Analysis in Eastern Coalfield Limited

Student Name: Srabani Dutta

Roll No. : 1411004502

Dr. Shakti Prasad Tiwari

The project report of

Roll No.- 1411004502

is approved and is acceptable in quality and format.

I am using this opportunity to express my gratitude to everyone who

Data Analysis and Interpretation.......................................................................................20

Analysis and Interpretation of Ratio.................................................................................83

Ratio Analysis is one of the techniques of financial analysis where ratios

Objective of the study:

1. To help the management in its planning and forecasting activities.

Ratio Analysis is a technique of analyzing the financial statement of

Ratio Analysis is one of the most powerful tools of financial analysis

With the help of ratio we can determine

 The ability of the firm to meet its current obligations.

Ratios can be classified into different categories depending upon the

Traditional classification has been on the basis of financial

1. Profit & loss account ratios.

2. Balance sheet ratio.

II. FUNCTIONAL CLASIFICATION OF RATIOS

Functional ratios Page | 9

III. PROBABILITY RATIOS

IV. ACTIVITY RATIO

Eastern Coalfield Limited (ECL) is a coal producer based in India. The

It at present owns 105 numbers of operating mines out of which 81 are

 Eastern Coalfields Limited (The Company) was incorporated as a

Fixed Assets and Capital-Work-in-Progress

 Building includes Roads & Culverts situated in the

 The enquiry proceedings by CBI, Dhanbad for shortage of coal at

Provision for Sundry Debtors is made on case to case basis. Normally no

Corporate Structure and Subsidiary Companies

1. Eastern Coalfields Limited (ECL), Sanctoria, West Bengal

Origin of Eastern Coalfields Limited (ECL)

Eastern Division of earlier Coal Mines Authority Limited (CMAL) was

Nationalisation and After

Geographic Location & Area

Total command area of ECL is 1620 Sq.km. covering different coalfields as

Table 1: Command Area of ECL for Operations

Raniganj & Mugma 1530 Sq. Km Located in Burdwan,

The study is conducted at Eastern Coalfield Limited, CMD's Office,

Sources of Data Collection

The data is collected in two types

Name of the company: Eastern Coalfields Limited

Address : Sanctoria, P.O. - Disergarh Dist.- Burdwan ( W.B.)

Burdwan, Pin – 713333

Mission Statement : To produce and market the planned quantity of

Vision Statement : To emerge as a global player in the primary

Bankers During 2014-15:

Primary Line of Company:

Research is nothing but systematic investigation and study of sources &