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You can view the entire text of Notes to accounts of the company for the latest year

BSE: 533278ISIN: INE522F01014INDUSTRY: Mining/Minerals

BSE   ` 215.10   Open: 217.90   Today's Range 214.80
217.90
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316.55
Year End :2018-03 

NOTES TO THE FINANCIAL STATEMENTS-STANDALONE

NOTE - 7 (contd.) NON - CURRENT INVESTMENTS - Unquoted at Cost

1. Investment in Eastern Coalfields Limited (ECL) and Bharat Coking Coal Limited (BCCL)

The investment in Equity Shares of BCCL, a wholly owned subsidiary, is long term and strategic in nature. The Book Value of investment in BCCL as on 31.03.2018 is Rs, 2118.00 crore against which the accumulated loss as on 31.03.2018 is Rs,2546.82 crore (Rs,1249.40 crore). The accumulated losses as on 31.03.2018 has come down to Rs,2546.82 crore from Rs,4106.03 crore as on 31.03.2013 (i.e. the end of the year in which it came out of BIFR).

Similarly, the investment in Equity Shares of ECL, a wholly owned subsidiary, is also long term and strategic in nature. The Book Value of investment in ECL as on 31.03.2018 is Rs, 2218.45 crore against which the accumulated loss as on 31.03.2018 is Rs,2731.93 crore (Rs,1907.76 crore). The accumulated losses as on 31.03.2018 has come to Rs,2731.93 crore from Rs,2716.00 crore as on 31.03.2015 (i.e. the end of the year in which it came out of BIFR).

In view of these companies turning around and the investments in these companies being long term and strategic in nature, book value of investment has been considered.

2. Investment in Coal India Africana Limitada (CIAL) (100% owned subsidiary -Overseas)

Coal India Ltd., has formed a 100% owned Subsidiary in Republic of Mozambique, named "Coal India Africana Limitada" to explore noncoking coal properties in Mozambique. The initial paid up capital on such formation (known as "Quota Capital") is Rs, 0.01 crore. The investment by CIL in CIAL is strategic and long term in nature. The advance given by CIL to CIAL has been fully provided for because the expenses incurred till date are for the coal blocks which could not be turned into feasible projects.Pursuant to the directives of CIL Board, a request was made through Govt. of India for allocation of a new prospective coal block, the response for which from Mozambique government is awaited. In view of above, the investment does not have any indication for impairment and as such the same are valued at cost.

3. Investment in International Coal Ventures Pvt. Ltd.

CIL has entered into a Memorandum of Understanding (vide approval from its Board in 237th meeting held on 24th November, 2007) regarding formation of Special Purpose Vehicle (SPV) through joint venture involving CIL/SAIL/RINL/NTPC & NMDC for acquisition of coking coal properties abroad. The formation of the SPV had been approved by the Government of India, vide its approval dated 8th November, 2007.

The aforesaid SPV viz. International Coal Ventures Pvt. Ltd. was incorporated under Companies Act, 1956 on 20th May, 2009 initially with an authorised capital of Rs,1.00 crore and paid up capital of Rs,0.70 crore. The authorised Capital and paid up Capital as on 31.03.2018 stood at Rs,3500.00 Crore and Rs,1450.67 Crore respectively. Out of above paid up capital, Coal India Ltd. is owning 0.19% share i.e. Rs,2.80 crore face value of equity shares.

4. Investment in CIL NTPC Urja Private Ltd.

CIL NTPC Urja Pvt.Ltd., a 50:50 joint venture company was formed on 27th AprilRs, 2010 between CIL & NTPC for setting up of joint integrated power plants along with mining of coal. Coal India Ltd. is presently holding 50% equity shares of face value of Rs, 0.08 crore in the joint venture Company.

5. Investment in Talcher Fertilizers Limited

A Joint venture company named "Talcher Fertilizers Limited" (formerly known as Rashtriya Coal Gas Fertilizers Limited) was incorporated on 13th November, 2015 under the Companies Act, 2013 under a joint venture agreement dated 27th 0ctober,2015, among Coal India Limited (CIL), Rashtriya Chemicals and Fertilizers Limited, GAIL (India) Limited and Fertilizer Corporation of India Limited with an authorised share capital of Rs,50 Crore, out of which CIL shall hold 29.67% share capital. However, presently Coal India Limited has invested Rs, 5.02 crore (i.e. 33.32%) in the joint venture company up to 31.03.2018.

6. Investment in Hindustan Urvarak and Rasayan Limited

By virtue of agreement dated 16th May, 2016 made between CIL and NTPC Ltd., a joint venture company named Hindustan Urvarak and Rasayan Limited (HURL) was formed. Subsequently, joint venture agreement has been revised on 31st October, 2016 to include IOCL, FCIL and HFCL as joint venture partners. The authorised share capital of the company is Rs,1000.00 Crore, out of which CIL shall hold 29.67% share capital. However, presently Coal India Limited has invested Rs,333.25 crore (i.e. 33.33%) in the joint venture company up to

31.03.2018.

7. During the year Northern Coalfields Limited (NCL), Mahanadi Coalfields Limited (MCL), South Eastern Coalfields Limited (SECL) and Coal Mine Planning and Designing Institute Limited (CMPDIL) issued Bonus shares in the ratio of 4:1, 4:1, 7:5 and 1:1 respectively. No. of shares issued as Bonus Shares by NCL, MCL, SECL and CMPDIL are 5462372 equity shares of Rs,1000 each, 5649064 equity shares of Rs,1000 each, 41,82,850 equity shares of Rs,1000 and 1,90,400 equity shares of Rs,1000 each respectively.

CIL invests in liquid schemes (daily dividend) of the above mutual funds. In the daily dividend schemes, dividends are received on daily basis in the form of units of mutual fund scheme and the value of the NAV of the scheme remain constant.

Refer note 38 (1) for classification

1. Deposit with bank under Mine Closure Plan

Following the guidelines from Ministry of Coal, Government of India for preparation of Mine Closure Plan, an Escrow Account has been opened. The interest earned/accrued during the year on such Escrow Account for Rs, 2.41 crore (Rs, 0.71 crore) is included in interest income from deposit with banks disclosed in Note-25. (Refer Note 21 for Provision for Site Restoration/Mine Closure)

2. Receivable for Exploratory Drilling Work

In view of critically weak financial position of ECL, which was under BIFR till 31st Dec 2014, expenditure incurred by CMPDIL on exploratory drilling works, falling under the command area of ECL was paid by CIL and shown as advance. Amount of advance, lying unadjusted for more than five years is being written off. Therefore, as an abundant precaution, advance made on this account up to 31s1 Dec 2014 was fully provided for.

1. Current accounts with Subsidiaries: The balances of the current account with the Subsidiaries are reconciled at regular intervals, and the same as on 31.03.2018 has also been reconciled. Adjustments arising out of reconcilation are carried out continuously.

2. Other receivables of Rs, 50.32 crore includes Rs, 29.72 crore (Rs, 24.47 crore) for interest receivable on deposits made on account of Shifting & rehabilitation fund.

Refer note 38 (1) for classification

2 During the period, there is no change in the number of shares.

3 Listing of shares of Coal India Ltd. in Stock Exchange :

The shares of Coal India Ltd. is listed in two major stock exchanges of India, viz. Bombay Stock Exchange and National Stock Exchange on and from 4th November,2010.

Hence, the number of shares held by Govt of India stood at 4,87,56,71,716 i.e. 78.546% of the total 6,20,74,09,1 77 number of shares outstanding as on 31.03.2018.

4 The Company has only one class of equity shares having a face value Rs,10/- per share. The holders of the equity shares are entitled to receive dividends as declared from time to time and are entitled to voting rights proportionate to their share holding at the meeting of shareholders.

5 Refer Note 38 (5) (c) also for Authorised Share capital of the company.

1. Interim Dividend- During the year the company has paid interim dividend of Rs,16.50 (Rs,19.90) per equity share of face value of Rs,10/- each for the year 201 7-18 amounting to Rs,10,242.24 crore (Rs,12,352.76 crore) .

The Board of Directors of the company decided to recommend such interim dividend already paid as final dividend and no additional dividend has been recommended for the year 2017-18.

2. Corporate Dividend Tax - The above represents the Dividend Distribution Tax pertaining to the Dividend paid over and above the utilization of Dividend received from Subsidiaries, as per provisions of Income Tax Act,1961.

Cash Credit

The bank borrowings of Coal India Ltd. has been secured by creating charge against stock of coal, stores and spare parts and book debts of CIL and its Subsidiary Companies within consortium of banks.

The total working capital credit limit available to CIL is Rs,550.00 Crore, of which fund based limit is Rs,250.00 Crore and non-fund based limit is Rs,300.00 crore. Further, Rs,2000.00 crore was set up as non-fund based limit outside consortium in order to facilitate import of HEMM. Coal India Limited is contingently liable to the extent such facility is actually utilised by the Subsidiary Companies.

1. Current Accounts of Subsidiaries

The current account balances of the Subsidiary Companies are reconciled on regular intervals, and the same as on 31.03.2018 has been reconciled. Adjustment arising out of reconcilation are carried out continuously.

2. Current Account of Indian Institute of Coal Management (IICM)

Current account balance of IICM represents the fund accumulated by receiving Rs, 0.50 per tonne (up to June 2017) of productions of NEC and the Subsidiaries, net of expenditure made / fund remitted on behalf of IICM.

During this period total contribution received from NEC and the Subsidiaries on this account amounted to Rs,5.94 Crore. Further Rs,13.67 Crore (net) were remitted to IICM during the period; and hire charges/ lease rent recovered from IICM amounted to Rs,1.80 Crore (excluding service tax/ GST applicable thereon).

3. Unpaid dividend includes interim dividend of Rs,11.12 crore (Rs,68.77 crore) declared but 30 days have not been lapsed so as to transfer in Unpaid Dividend account.

During the year, an amount of Rs,0.48 crore in respect of interim dividend of FY 2010-11 has been transferred to Investor Education & Protection Fund (IEPF) as the same remained unpaid and unclaimed for a period of seven years from the date of transfer of such dividend to unpaid dividend account.

There is no other amount due to be transferred to IEPF within 31.03.2018.

Refer note 38 (1) for classification

1. Provision for Site Restoration/Mine Closure

The companyRs,s obligation for land reclamation and decommissioning of structures consists of spending at both surface and underground mines in accordance with the guidelines from Ministry of Coal, Government of India. The estimate of obligation for Mine Closure, Site Restoration and Decommissioning based upon detailed calculation and technical assessment of the amount and timing of the future cash spending to perform the required work. Mine Closure expenditure is provided as per approved Mine Closure Plan. The estimates of expenses are escalated for inflation, and then discounted at a discount rate (@8%) that reflects current market assessment of the time value of money and the risks, such that the amount of provision reflects the present value of the expenditures expected to be required to settle the obligation. The value of the provision is progressively increased over time as the effect of discounting unwinds; creating an expense recognised as financial expenses. In reference to the above guidelines for preparation of mine closure plan, an escrow account has been opened. (Refer Note 9 for deposit with banks under Mine Closure Plan)

2. Provision- Other Employee Benefits-Current includes Rs,51.53 crore (Rs,45.09 crore) provided for Superannuation benefits @9.84%.

3. National Coal Wage Agreement (NCWA)-X for non-executive employees effective from 01.07.2016 was finalized on 10th October 201 7 and payment of salary as per the agreement has been started from the month of October, 2017. Provision against arrear salary for NCWA-X amounting to Rs,21.26 crore has been made for the period from 01.04.201 7 to 30.09.201 7 resulting total provision of Rs,36.45 crore for the period from 01.07.2016 to 30.09.201 7. An adhoc amount of Rs,9.55 crore has been paid in October, 201 7 against above arrear which is net off with the provision as shown in Note-21. (Refer footnote 1 of Note 28)

4. Department of Public Enterprises (DPE) vide Office Memorandum (OM) NO. W-02/0028/2017-DPE(WC)-GL-XIII/1 7 dated 3rd August, 2017 has circulated the approval of the Government of India regarding the guidelines of the revision of pay and allowances of Board level and below Board level Executives and non-unionized supervisors of Central Public Sector Enterprises (CPSEs) w.e.f 01.01.2017.

Pending final implementation of these guidelines, the provision for executive pay revision of Rs,32.84 crore, considering estimated impact of increase in all elements of executive salary (including the employer's PF contribution), other employee benefits and all superannuation benefits as per DPE guidelines, covering the period 01.01.2017 to 31.03.2018, has been made/kept in the financial statements.

5. A provision as Coal Quality Variance of Rs,4.88 Crore (Nil) is recognised For sampling results awaited from refree samplers.

Shifting and Rehabilitation Fund

1- Following the direction of the Ministry of Coal, the Company has setup a fund for implementation of action plan for shifting & rehabilitation, dealing with fire & stabilization of unstable areas of Eastern Coal Fields Ltd. & Bharat Coking Coal Ltd. The fund is utilized (by ECL and BCCL) based on implementation of approved projects in this respect.

The subsidiaries of CIL except CMPDIL and Coal India Africana Limitada are making a contribution of Rs,6/- per tonne of their respective coal dispatch per annum to this fund, which remains in the custody of CIL, till they are disbursed/utilised by subsidiaries/agencies implementing the relevant projects. (Refer Note 9 for deposits with bank under Shifting & Rehabilitation Fund scheme)

2- Interest earned (Net of TDS) on bank deposits earmarked for this fund is credited to this fund.

Other liabilities include Rs,1 77.00 crore (Rs,154.82 crore) towards TDS on interest earned on deposits made against Shifting & Rehabilitation fund as refered in Note-22.

1. Government of India introduced Goods and Services Tax (GST) w.e.f 1st July,2017. Consequently revenue from operations for the period from 01.07.201 7 to 31.03.2018 is presented net of GST.

2. Revenue from operations for the period prior to 01.07.2017 is inclusive of Excise duty. Sale of coal includes excise duty of Rs,5.80 Crore (Rs,21.03 crore). Sales of coal (Net) exclusive of excise duty is Rs,357.13 crore (Rs,285.37 crore).

Loading and additional transportation charges includes excise duty of Rs,0.07 Crore (Rs,0.27 crore). Loading and additional transportation charges net of excise duty is Rs,5.10 crore (Rs,4.43 crore).

3. Subsidy for Sand Stowing & Protective Works includes Rs,0.07 received from Ministry of Coal, Government of India in terms of Coal Mines (Conservation & Development) Act, 1974 towards reimbursement of expenditure incurred for the Sand Stowing & Protective Works by NEC.

4. Clean energy Cess has been repealed w.e.f 01.07.2017, and GST compensation cess has been introduced w.e.f. 01.07.2017.

1. Interim Dividend of 2017-18 received from CCL Rs,531.10 crore (Rs,3634.04 crore), NCL Rs,1 750.00 crore (Rs,1680.00 crore), SECL Rs,2202.58 crore (Rs,2133.47 crore), MCL Rs,4350.00 crore (Rs,2982.00 crore) and CMPDIL Rs,19.50 crore (Nil) has been accounted for during the year.

2. Interest income from deposits with Banks and dividend income from investment in mutual fund includes interest/dividend income on investments of amount lying in Current Account of IICM. (Refer Note 20)

3. Miscellaneous income includes incomes like receipt on account of holiday home bookings, RTI fees, application money for recruitments, misc. receipts from banks etc.

1. National Coal Wage Agreement (NCWA)-X for non-executive employees effective from 01.07.2016 was finalized on 10th October 201 7 and

payment of salary as per the agreement has been started from the month of October, 201 7. The provision for such wage revision was made in Accounts up to 30.09.2017.

The NCWA -X for the year ended 31.03.2018 above includes Rs,6.68 Crore relating to the Period 01.07.2016 to 31.03.2017. (Refer footnote

3 of Note 21)

2. As per the Payment of Gratuity (Amendment) Act, 2018 and the notification issued thereafter, the ceiling for maximum gratuity has been

increased from Rs,10 lakh to Rs,20 lakh w.e.f. 29.03.2018. Gratuity for the year ended 31.03.2018 above includes Rs,97.55 Crore for impact of above change in gratuity ceiling.

In pursuance of section 135 of Companies Act 2013, an amount of Rs,7.88 crore (being 2% of the average net profit of the company made during the three immediately preceding financial years - considered from the audited financial statements of the respective years prepared as per previous GAAP/Ind-AS) was required to be spent during 2017-18 towards CSR activities. The company has spent Rs,24.31 crore during the year.

A brief of each level is given below.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes Mutual fund which is valued using closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, preference shares borrowings, security deposits and other liabilities taken included in level 3.

(c) Valuation technique used in determining fair value

Valuation techniques used to value financial instruments include the use of quoted market prices of instruments.

(d) Fair value measurements using significant unobservable inputs

At present there are no fair value measurements using significant unobservable inputs.

(e) Fair values of financial assets and liabilities measured at amortised cost

^ The carrying amounts of trade receivables, short term deposits, cash and cash equivalents, trade payables are considered to be the same as their fair values, due to their short-term nature.

^ The Company considers that the Security Deposits does not include a significant financing component. The milestone payments (security deposits) coincide with the company's performance and the contract requires amounts to be retained for reasons other than the provision of finance. The withholding of a specified percentage of each milestone payment is intended to protect the interest of the company, from the contractor failing to adequately complete its obligations under the contract. Accordingly, transaction cost of Security deposit is considered as fair value at initial recognition and subsequently measured at amortised cost.

Significant estimates: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Company uses its judgment to select a method and makes suitable assumptions at the end of each reporting period.

Financial risk management objectives and policies

The Company's principal financial liabilities comprise trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations and to provide guarantees to support its operations. The Company's principal financial assets include loans, trade and other receivables, and cash and cash equivalents that is derived directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of these risks. The Company's senior management is supported by a risk committee that advises, inter alia, on financial risks and the appropriate financial risk governance framework for the Company. The risk committee provides assurance to the Board of Directors that the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.

The Company is exposed to market risk, credit risk and liquidity risk.This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements.

The Company risk management is carried out by the board of directors as per DPE guidelines issued by Government of India. The board provides written principles for overall risk management as well as policies covering investment of excess liquidity.

A. Credit Risk: Credit risk arises from cash and cash equivalents, investments carried at amortised cost and deposits with banks and financial institutions, as well as including outstanding receivables.

Credit risk management:

Receivables arise mainly out of sale of Coal. Sale of Coal is broadly categorized as sale through fuel supply agreements (FSAs) and e-auction. Macro - economic information (such as regulatory changes) is incorporated as part of the fuel supply agreements (FSAs) and e-auction terms Fuel Supply Agreements (FSAs)

As contemplated in and in accordance with the terms of the New Coal Distribution Policy (NCDP), the company enters into legally enforceable FSAs with customers or with State Nominated Agencies that in turn enters into appropriate distribution arrangements with end customers. Our FSAs can be broadly categorized into:

- FSAs with customers in the power utilities sector, including State power utilities, private power utilities ("PPUs") and independent power producers ("IPPs");

- FSAs with customers in non-power industries (including captive power plants ("CPPs")); and

- FSAs with State Nominated Agencies.

E-Auction Scheme

The E-Auction scheme of coal has been introduced to provide access to coal for customers who were not able to source their coal requirement through the available institutional mechanisms under the NCDP for various reasons, for example, due to a less than full allocation of their normative requirement under NCDP, seasonality of their coal requirement and limited requirement of coal that does not warrant a long-term linkage. The quantity of coal to be offered under E-Auction is reviewed from time to time by the Ministry of Coal.

Expected credit loss: The Company provides for expected credit risk loss for doubtful/ credit impaired assets, by lifetime expected credit losses (Simplified approach).

Expected Credit losses for trade receivables under simplified approach.

Provision of ' 4.88 Crores (Nil) has been recognized as Coal Quality Variance for sampling results awaited from referee samplers and disclosed separately in Note 21 Provisions.

Significant estimates and judgments for Impairment of financial assets

The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Company's past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

B. Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors forecasts of the Company's liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in the operating companies of the Company in accordance with practice and limits set by the Company.

C. Market risk

a) Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions. Foreign exchange risk in respect of foreign operation is considered to be insignificant. The Company also imports and risk is managed by regular follow up. Company has a policy which is implemented when foreign currency risk becomes significant.

b) Cash flow and fair value interest rate risk

The Company's main interest rate risk arises from bank deposits with change in interest rate exposes the Company to cash flow interest rate risk. Company policy is to maintain most of its deposits at fixed rate.

Company manages the risk using guidelines from Department of public enterprises (DPE), diversification of bank deposits credit limits and other securities.

Capital management

The company being a government entity manages its capital as per the guidelines of Department of investment and public asset management under ministry of finance.

a) Provident Fund:

Company pays fixed contribution towards Provident Fund and Pension Fund at pre-determined rates to a separate trust named Coal Mines Provident Fund (CMPF). The contribution towards the fund during the year is ' 28.61.Crore (' 27.71 Crore)has been recognized in the Statement of Profit & Loss (Note 28).

b) The Company operates some defined benefit plans as follows which are valued on actuarial basis:

(i) Funded

- Gratuity

- Leave Encashment

- Medical Benefits

(ii) Unfunded

- Life Cover Scheme

- Settlement Allowance

- Group Personal Accident Insurance

- Leave Travel Concession

- Compensation to dependent on Mine Accident Benefits

e) Related Party Disclosures A. Key Managerial Personnel

Mr. A. K. Jha, Chairman-Cum-Managing Director (w.e.f 18.05.2018)

Mr. Suresh Kumar,Chairman-Cum-Managing Director(Addl. Charge (w.e.f 23.04.2018 to 17.05.2018) Mr. Gopal Singh, Chairman-Cum-Managing Director (Addl. Charge)(w.e.f. 01.09.2017 to 20.04.2018) Mr. S. Bhattacharya, Chairman-Cum-Managing Director (w.e.f 05.01.2015 to 31.08.2017)

Mr. C.K. Dey, Director (Finance)

Mr. S.N. Prasad, Director (Marketing)

Mr. Binay Dayal, Director (Technical)

Mr. Shekhar Saran, Director (Technical) - Additional Charge (up to 10.10.2017)

Mr. R. P. Srivastava, Director (P&IR)

Mr. R. R. Mishra, Director (P&IR) - Additional Charge (up to 30.01.2018)

Mr. M Viswanathan, Company Secretary

Independent Directors (appointed on 17.11.2015)

Ms. Loretta M. Vas Mr. Vinod Jain Dr. D.C. Panigrahi Prof. Khanindra Pathak Dr. S.B. Agnihotri

Mr. Vinod Kumar Thakral (appointed on 06.09.2017)

Mr. Bharatbhai Laxmanbhai Gajipara (appointed on 22.09.2017)

f) Goods procured by Coal India Ltd. on behalf of Subsidiaries

As per existing practice, goods purchased by Coal India Ltd. on behalf of subsidiary companies are accounted for in the books of respective subsidiaries directly.

g) Insurance and escalation claims

Insurance and escalation claims are accounted for on the basis of admission/final settlement.

h) Provisions made in the Accounts

Provisions made in the accounts against slow moving/non-moving/obsolete stores, claims receivable, advances, doubtful debts etc. are considered adequate to cover possible losses.

i) Current Assets, Loans and Advances etc.

In the opinion of the Management, assets other than fixed assets and non-current investments have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated. j) Current Liabilities

Estimated liability has been provided where actual liability could not be measured. k) Balance Confirmations

Balance confirmation/reconciliation is carried out for cash & bank balances, certain loans & advances, long term liabilities and current liabilities. Provision is taken against all doubtful unconfirmed balances. m) During the financial year 2013-14, a case of misappropriation of Company's fund for personal gain came to the notice of the management. The matter has been investigated by different agencies and appropriate action for recovery is underway. As per the estimate of the internal audit department of Coal India Limited, the amount involved is ' 1.17 Crore approximately.

u) Significant accounting policy

Significant accounting policy (Note-2) has been drafted to elucidate the accounting policies adopted by the Company in accordance with Indian Accounting Standards (Ind ASs) notified by Ministry of Corporate Affairs (MCA) under the Companies (Indian Accounting Standards) Rules, 2015.

v) Others

i. Previous year's figures have been restated, regrouped and rearranged wherever considered necessary.

ii. Previous Year's figures in Note No. 3 to 38 are in brackets.

iii. Note - 1 and 2 represents Corporate information and Significant Accounting Policies respectively, Note 3 to 23 form part of the Balance Sheet as at 31st March, 2018 and 24 to 37 form part of Statement of Profit & Loss for the year ended on that date. Note - 38 represents Additional Notes to the Financial Statements.