syn-gas, Ammonia & Nitric acid as intermediate products and Ammonium Nitrate as end product. Coal India holds 51% equity stake in the company, while Bharat Heavy Electricals owns 49% in BCGCL.

4.1.7. Investment in Coal Gas India Limited (CGIL)

Coal Gas India Limited (CGIL) has been incorporated on 25.03.2025 under the Companies Act, 2013 as a subsidiary of Coal India Limited (CIL), in which CIL hold 51% and GAIL (India) Limited will hold 49% equity to set up the Coal to Synthetic Natural Gas (SNG) business.

4.1.8. Investment in CIL Rajasthan Akshay Urja Limited

CIL Rajasthan Akshay Urja Limited (CRAUL) has been incorporated on 09.06.2025 under the Companies Act, 2013 as a subsidiary of Coal India Limited (CIL), in which CIL will hold 74% and RRUVNL will hold 26% equity for developing Renewable energy projects in Rajasthan.

4.1.9. Investment in Bharat Coking Coal Limited (BCCL)

The Equity shares of Bharat Coking Coal Limited (BCCL), a subsidiary of Coal India Limited (CIL), listed on the National Stock Exchange of India Limited (NSE) and BSE Limited on 19th January 2026. CIL divested 10% of its equity stake in BCCL through the sale of 46.57 crore equity shares. Post divestment, CIL's shareholding in BCCL stands at 90%, and accordingly, BCCL continues to remain a subsidiary of CIL.

4.1.10. Investment in Central Mine Planning & Design Institute Limited (CMPDI)

The Equity shares of Central Mine Planning & Design Institute Limited (CMPDI), a subsidiary of Coal India Limited (CIL), listed on the National Stock Exchange of India Limited (NSE) and BSE Limited on 30th March 2026. CIL divested 15% of its equity stake in CMPDI through the sale of 10.71 crore equity shares. Post divestment, CIL's shareholding in CMPDI stands at 85%, and accordingly, CMPDI continues to remain a subsidiary of CIL.

4.5.1. Other Bank Balances comprises deposits for specific purposes and bank deposits which are expected to realise in cash within 12 months after the reporting date.

4.5.2. Deposits for specific purposes are bank deposits held under lien/earmarked as per court order, e-procurement account/GeM account, Escrow accounts for MDO contracts and others.

claimed, the yearly reimbursement will not be applicable (Refer Note 9.1 for Provision for Site Restoration/ Mine Closure).

4.6.1. 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. As per MCP guidelines dated 31.01.2025 upto 50% of the total amount deposited excluding interest in the escrow account may be released after every year based on work done towards mine closure and after every five year up to 50% of the total deposit including interest accrued in the escrow account may be released in line with the periodic examination of the closure plan as per the Guidelines. However the year in which 5 yearly reimbursement is

4.6.2. Deposit in Bank under Shifting and Rehabilitation Fund scheme

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

The coal producing subsidiaries of CIL are making a contribution of H6/- per tonne of their respective coal dispatch per annum to this fund, which remains in the custody of CIL as bank deposit for this purpose, till they are disbursed/utilized by subsidiaries/agencies implementing the relevant projects.

4.6.3. Coal India Limited entered into a Consortium Agreement with M/s BEML Limited and M/s Damodar Valley Corporation (DVC) on 08.06.2010 for acquiring specified assets of M/s Mining and Allied Machinery Corporation (under liquidation). The agreement, inter alia, provided for the formation of a joint venture company with a shareholding pattern of 48:26:26 among BEML,CIL, and DVC respectively. CIL has paid its proportionate share towards bid consideration of H 100 Crores towards the said acquisition based on the order passed by Hon'ble High Court of Calcutta. An amount was paid towards bid consideration and other miscellaneous expenditure H 41.39 crore (P.Y. H 40.83 crores). Further a Company in the name of MAMC Industries Limited (MIL) has been formed and incorporated on 25th August 2010 as a wholly owned subsidiary of BEML for the intended purpose of Joint Venture formation. As per the terms and condition of the Consortium Agreement, a shareholders' agreement and joint venture agreement was to be executed. However, shareholders' agreement and joint venture agreement are not yet executed.

8.4.1. During the FY 2025-26 an amount of H 2.14 crore (P.Y. H1.73 crore) in respect of the dividend of FY 2017-18 which has been transferred to Investor Education and 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.

8.4.2. Pu rsuant to the order of the Hon'ble High Court of Jabalpur dated 07 January 2026, the Board of Directors of the CIL approved the upgradation of pay scales of executives (up to mid-level) across the Coal India Limited Group, payable with effect from 23.08.2023.A provision of H 38.70 crore has been recognised towards this revision for the period from 23.08.2023 to 31.12.2025. The revised salary structure has been implemented since 01.01.2026 and payment are being disbursed accordingly. Also refer Note no. 13.3.

9.1.1. Provision for Site Restoration/Mine Closure

The Company'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, so 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 above guidelines for preparation of mine closure plan, an escrow account has been opened. (Refer Note - 4.6.1)

NOTE - 13.3 : EMPLOYEE BENEFITS EXPENSES (Contd..)

13.3.1. Including allowances, bonus, incentives,upgradation of payscale, performance related pay, overtime pay etc.

13.3.2. Disclosures on 'Employee Benefits' in respect of provision made towards various employee benefits except those covered under actuarial valuation, are provided in Note 9.1.2.

13.3.3. Disclosures on 'Employee Benefits' in respect of defined benefit plans and other long term employee benefit plans which are covered under acturial valuation are disclosed in Note 16 (5).

13.3.4. Expense recognised during the period for Provident Fund H 24.81 crores(P.Y. H 24.65 crores), Pension Fund H14.21 crores(P.Y. H13.86 crores) and CIL Executive Defined Contribution Pension Scheme (NPS) H6.81 crores(P.Y. H 6.40 crores).

13.3.5. Refer note no 8.4.2 for revision in executive pay upgradation.

13.3.6. The Company has evaluated the impact of the Code on Wages, 2019 and related labour codes. Based on the assessment, no material impact is expected on the financial statements.

The Company's pending litigation comprises of claim against the company and proceeding pending tax/statutory/Government authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, and disclosed the contingent liabilities, where applicable, in its Standalone Financial Statements. The Company does not expects the outcome of these proceedings to have a material impact on its financial position. Future cash outflows in respect of above are dependent upon the outcome of judgements/decisions.

No interest is expected in the settlement of cases under contingent liabilities, except where management has an adverse view.

II. Guarantee

(a) Term loan by two of the wholly owned subsidiary companies of Coal India Limited namely, Eastern Coalfields Limited and Mahanadi Coalfields Limited to the extent of their obligations under loans (principal and interest) from Export Development Corporation, Canada and Banque Nationale De Paris and Natexis Banque, France respectively are guaranteed by the President of India.The outstanding balance as on 31-03-2026 stood at H 169.53 Crore (P.Y. H154.47 Crore) and H 3.16 Crore (P.Y. H3.35 Crore) respectively.

(b) The bank borrowings of Coal India Limited 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 H420.00 Crore, of which fund based limit is H1 35.00 Crore and non-fund based limit is H285.00 crore. Further, H 10,590.00 crore (P.Y.H 7,850.00 Crore) was set up working capital limit outside consortium of which fund based limit is H5250.00 Crores and non-fund based limit is H5340.00 crores. Coal India Limited is contingently liable to the extent such facility is actually utilised by the Subsidiary Companies.

CIL has been sanctioned a term loan of H 1217.00 crores from NABARD in respect of 300 MW Solar Project in Khavda, Gujarat secured by creating exclusive charge against the non-current assets (like plant & machinery etc.) excluding land of this project.

Further, CIL has also been sanctioned a term loan of H 463.38 crores from Bank of India in respect of 100 MW Solar Project in Bhadramali and Jabadia, Gujarat secured by creating exclusive charge against the non-current assets (like plant & machinery etc.) excluding land of this project.

(c) The Board of Directors of Coal India Limited has approved a 100% corporate guarantee on behalf of CIL for its subsidiary, CIL Rajasthan Akshay Urja Limited. The guarantee is intended to support proposed debt financing of up to H3,160 crore for the development of an 875 MW solar PV plant on a turnkey basis at RVUNL's 2,000 MW solar park located in Pugal, Bikaner district, Rajasthan.

(d) Coal India Limited has provided Performance Guarantee to BCGCL (proportionate to its share holding of 51%) for coal to ammonium nitrate project for the purpose of availing support of H 1350 crores i.e .H688.50 crores from Ministry of Coal under Category -1 of RFP.

(b) Commitments

i) Capital Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for : H 213.73 Crore (P.Y. H 23.20 Crore) (net of advances H 80.61 crore (P.Y.H 44.14 crore))

ii) Uncalled liability on shares and other investments partly paid; Nil

iii) Other Commitments:

(a) The company has commitment of H 3469.45 crore (P.Y. H 336.49 crore) towards further investment in the joint venture companies.

(b) The company has commitment of H 5764.93crore (P.Y. H 1997.08 crore) towards further investment in the subsidiary companies.

(c) Contingent Assets:- A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. During the normal course of business, several unresolved claims are currently outstanding. The inflow of economic benefits, in respect of such claims cannot be measured due to uncertainties that surround the related events and circumstances.

A brief of each level is given below.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

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. This includes Mutual fund which is valued using closing Net Asset Value (NAV) as at the reporting date.

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 investments, security deposits and other liabilities 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 (NAV) of instruments in respect of investment in Mutual Funds.

(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 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.

4 Financial Risk Management

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.

A. Credit Risk:.

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)

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") under various clauses of Scheme to Harness and Allocate Koyla (Coal) Transparently in India (SHAKTI);

• FSAs with customers in non-power industries (including captive power plants ("CPPs")) as per NonRegulated Sector (NRS) Linkage Policy; 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.

Credit risk arises when a counterparty defaults on contractual obligations resulting in financial loss to the group. Counterparty deafults risk of trade receivables is managed by financial assurances like Secutirty Deposits, Advances, Bank Gaurantee etc.

Provision for expected credit loss: Company provides for expected credit risk loss for doubtful/ credit impaired assets, by lifetime expected credit losses (Simplified approach). Refer Note- 4.3, Trade Receivables

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.Refer Note 16 (1) (II) Guarantee for the bank borrowings within consortium of banks and outside consortium, the fund and non fund based limit for total working capital credit etc.

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 accordance with practice and limits set by the company.

C. Market risk

a) Foreign currency risk

Foreign currency risk arises from future commercial transactions and recognised assets or liabilities denominated in a currency that is not the Company's functional currency(H).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 issued by Department of Public Enterprises (DPE) on 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.

5 Employee Benefits: Recognition and Measurement (Ind AS-19)

(I) Defined Benefit Plans a) Gratuity

The Company provides for gratuity, a postemployment defined benefit plan (""the Gratuity Scheme"") covering the eligible employees. Gratuity payment is made as per policy of the company subject to maximum of H 25 lacs (H 20 lacs prior to 01.10.2025) in case of executives and H 20 lacs in case of non executive at the time of separation from the company considering the provisions of the Payment of Gratuity Act 1972 as amended. The liability or asset recognised in the balance sheet in respect of the Gratuity Scheme is the present value of the defined benefit obligation at the end of the

reporting year less the fair value of plan assets. The defined benefit obligation is calculated at each reporting date by actuaries using the projected unit credit method. Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the year in which they occur, directly in other comprehensive income (OCI).

The Gratuity Scheme is funded through trust maintained with Life Insurance Corporation of India. LIC also provides an insurance coverage (Life Cover Sum Assured- "LCSA") in case of death of a member during service, to compensate the shortfall in gratuity amount from estimated payable at normal retirement date based on last drawn salary subject to ceiling of maximum limit."

b) Post-Retirement Medical Benefit - Executive (CPRMSE)

Company has post-retirement medical benefit scheme known as Contributory Post Retirement Medicare Scheme for Executive of CIL and its Subsidiaries (CPRMSE), to provide Medicare to the executives, their spouses and fully financially dependent Divyang child(ren) suffering from not less than 40% of any disability in Company hospital/ empanelled hospitals or outpatient/Domiciliary only in India subject to ceiling limit, on account of retirement on attaining the age of superannuation or are separated by the Company on medical ground or retirement under Voluntary Retirement Scheme under common coal cadre or Voluntary Retirement Scheme formulated and made applicable from time to time. Membership is not extended to the executives who resigns from the services of the CIL and its subsidiaries. The maximum amount reimbursable during the entire life for the retired executives, spouse and dependent Divyang child (ren) taken together jointly or severally is H 25 lakhs except for specified diseases with no upper limit. The Scheme is funded through trust for company, maintained with Life Insurance Corporation of India . The liability for the scheme is recognised based on actuarial valuation done at each reporting date.

C) Post-Retirement Medical Benefit - Non Executive (CPRMS -NE)

As a part of social security scheme under wage agreement, Company is providing Contributory Post-Retirement Medicare Scheme for nonexecutives (CPRMSE-NE) to provide medical care to

the non-executives and their spouses and Divyang Child(ren) in Company hospital/empanelled hospitals or outpatient/Domiciliary only in India subject to ceiling limit, on account of retirement on attaining the age of superannuation or are separated by the Company on medical ground or retirement under Voluntary Retirement Scheme formulated and made applicable from time to time or resigns from the company at the age of 57 Years or above or on death to the spouse and Divyang Child(ren). The maximum amount reimbursable during the entire life for the retired non-executives and spouse taken together jointly or severally is H 8 lakhs except for specified diseases with no upper limit. The maximum amount reimbursable during the entire life of Divyang child would be H 2.5 lakh. The Scheme is funded through trust for company, maintained with Life Insurance Corporation of India . The liability for the scheme is recognised based on actuarial valuation done at each reporting date.

(II) Defined Contribution Plans

a) Provident Fund and Pension

Company pays fixed contribution towards Provident Fund and Pension Fund at pre-determined rates based on a fixed percentage of the eligible employee's salary i.e. 12% and 7% of Basic salary and Variable Dearness Allowance towards Provident Fund and Pension Fund respectively. These funds are governed by a separate statutory body under the control of Ministry of Coal, Government of India, named Coal Mines Provident Fund Organisation (CMPFO).The contribution towards the fund for the period is recognized in the Statement of Profit and Loss.

b) CIL Executive Defined Contribution Pension Scheme (NPS)

The company provides a post-employment contributory pension scheme to the executives of the Company known as "CIL Executive Defined Contribution Pension Scheme -2007" (NPS). The Scheme is funded through trust for company, maintained with Life Insurance Corporation of India. The obligation of the Company is to contribute to the trust to the extent of amount not exceeding 30% of basic pay and dearness allowance less employer's contribution towards provident fund, gratuity, post-retirement medical benefits -Executive i.e. CPRMSE or any other retirement benefits. The current employer contribution of 6.99% of basic and Dearness Allowance is being charged to statement of profit and loss.

upon their superannuation on or after 31.10.2010. The Board of Directors of Coal India Limited in its 481st meeting held on 31st July 2025 approved the enhanced amount of H20,000/- from the existing H12,000/-. The liability under this scheme is borne by the Company based on actuarial valuation at each reporting date.

d) Group Personal Accident insurance (GPAIS)

Coal India Limited (CIL) has taken group insurance scheme from United India Insurance Company Limited to cover the executives of the CIL against personal accident known as "Coal India Executives Group Personal Accident Insurance Scheme" (GPAIS). GPAIS covers all types of accident on 24 hour basis worldwide. Premium for the scheme is borne by the CIL.

e) Travel Allowance Scheme

As a part of wage agreement, Non-executive employees are entitled to travel assistance for visiting their home town and for "Bharat Bhraman" once in a block of 4 years. A lump sum amount of H 10,000/- and H 15,000/- is paid for visiting Home town and "Bharat Bhraman", respectively. The liability for the scheme is recognised based on actuarial valuation at each reporting date.

f) Workmen's Compensation Benefits in Mine Accident

As a part of social security scheme, the company provide the benefits admissible under The Employee's Compensation Act, 1923 to the next of kin of an employee in case of a fatal mine accident

w.e.f 07.1 1.2019. The Board of Directors of Coal India Limited in its 480th meeting held on 26th June 2025 approved the enhanced amount of H25 lacs from the existing H15 lacs to all employees (executive, non executives and contract workers). In addition, w.e.f 01.06.2023 an exgratia amount of H 90,000/- is also paid in case of death or permanent total disablement The expected cost of the benefits is recognised when an event occurs that causes the benefit payable under the scheme.

Description of Plan Characteristics and Associated Risks

The Gratuity scheme is a final salary Defined Benefit Plan that provides for a lump sum payment made on exit either by way of retirement, death, disability or voluntary withdrawal. The benefits are defined on the basis of final salary and the period of service and paid as lump sum at exit. The Plan design means the risks commonly affecting the liabilities and the financial results are expected to be:

1 Interest rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase

2 Salary Inflation risk: Higher than expected increases in salary will increase the defined benefit obligation

3 Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

Description of Funding Arrangements and Policies

There are no Statutory minimum funding requirements for such plans mandated in India. However a company can fund the benefits by way of a separate irrevocable Trust to take advantage of tax exemptions and also to ensure security of benefits.

The scheme is funded by way of a separate irrevocable Trust and the company is expected to make regular contributions to the Trust. The fund is managed by an insurance company and the assets are invested in their conventional group gratuity product. The fund provides a capital guarantee of the balance accumulated and declares interest periodically that is credited to the fund account. Although we know that the fund manager invests the funds as per products approved by IRDA and investment guidelines as stipulated under section 101 of IT Act, the exact asset mix is unknown and not publicly available.

The Trust assets managed by the fund manager are highly liquid in nature and we do not expect any significant liquidity risks.

The Trustees are responsible for the investment of the assets of the Trust as well as the day to day administration of the scheme. Administrative expenses of the trust are met by the company. The Trustees are required to conduct necessary business e.g. Approval of Trust's Financial Statements, Review Investment performance.

Description of Plan Characteristics and Associated Risks

The Leave scheme is a final salary Defined Benefit Plan that provides for a lump sum payment made on exit either by way of retirement, death, disability or voluntary withdrawal. The benefits are defined on the basis of final salary and the accumulated leave balances and paid as lump sum at exit. The Plan design means the risks commonly affecting the liabilities and the financial results are expected to be:

1 Interest rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined. benefit obligation will tend to increase

2 Salary Inflation risk: Higher than expected increases in salary will increase the defined benefit obligation

3 Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

4 Change in Leave Balances: This is the risk of variability of results due to a significant variation from expected accumulation of leave balances. All other aspects remaining same, higher than expected increase in the leave balances will increase the defined benefit obligation.

Description of Funding Arrangements and Policies

There are no Statutory minimum funding requirements for such plans mandated in India. However a company can fund the benefits by way of a separate irrevocable Trust or Qualifying Insurance Plan (QIP) to ensure security of benefits.

The scheme is funded by way of a qualifying insurance plan and the company is expected to

make regular contributions to the plan. The plan is managed by an insurance company and the assets are invested in their conventional product. The plan provides a capital guarantee of the balance accumulated and declares interest periodically that is credited to the plan account. Although we know that the fund manager invests the funds contributed under the plan as per products approved by IRDA and investment guidelines as stipulated under section 101 of IT Act, the exact asset mix is unknown and not publicly available.

The plan assets managed by the fund manager are highly liquid in nature and we do not expect any significant liquidity risks.

Employees of Master Policyholders are considered memeber for receipt of benefits of the plan. Insurance Company reimburse the master policyholder, the appropriate benefit in respect of the members on proof to the complete satisfaction of it of the benefit having become payable or paid.

1 Interest rate risk: The defined benefit obligation calculated uses a discount rate based on govemment bonds. If bond yields fall, the defined benefit obligation will tend to increase

2 Medical Inflation risk: Higher than expected increase in premium can lead to increase in defined benefit obligation. Although, this risk is mitigated by capping the benefit paid by the insurance company (limiting the premium amount for the company).

3 Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

Description of Funding Arrangements and Policies

There are no Statutory minimum funding requirements for such plans mandated in India. However a company can fund the benefits by way of a separate irrevocable Trust to take advantage of tax exemptions and also to ensure security of benefits.

The scheme is funded by way of a separate irrevocable Trust and the company is expected to make regular contributions to the Trust. The fund is managed by an insurance company and the assets are invested in their conventional group gratuity product. The fund provides a capital guarantee of the balance accumulated and declares interest periodically that is credited to the fund account. Although we know that the fund manager invests the funds as per products approved by IRDA and investment guidelines as stipulated under section 101 of IT Act, the exact asset mix is unknown and not publicly available.

The Trust assets managed by the fund manager are highly liquid in nature and we do not expect any significant liquidity risks.

The Trustees are responsible for the investment of the assets of the Trust as well as the day to day administration of the scheme. Administrative expenses of the trust are met by the company. The Trustees are required to conduct necessary business e.g. Approval of Trust's Financial Statements, Review Investment performance.

with the lease for the period are recognised as an

expense in the Statement of Profit and Loss.

(ii) Lease - as a lessor

(A) CIL has leased out the assets viz. land, building, structures, furniture and fixtures and other assets of Dankuni Coal Complex to South Eastern Coalfields Limited. The lease rent payable by SECL to CIL is H 0.15 crore per month.

(B) CIL has leased out the assets viz. land, building, structures, furniture and fixtures and other assets to IICM, Ranchi (Jharkhand). The lease rent payable by IICM to CIL is H 0.001 crore per month w.e.f. 01.04.2020.

(C) CIL has leased out the office premises in Delhi to Coal Controller Organisation (CCO) at H 0.13 crore per months w.e.f. 01.1 1.2021. The rent is enhanced by 5% every year.

(D) CIL (North Eastern Coalfields) has leased out land in Assam at nominal rent of H 0.0002 crore Per annum.

(e) Insurance and escalation claims

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

(f) Current Assets, Loans and Advances etc.

In the opinion of the Management and to the best of their knowledge and belief , the value on realisation on current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance sheet.

(g) Balance Confirmations

The Company has a procedure for obtaining periodic confirmation of balances from banks. There are no unconfirmed balances in respect of bank accounts and borrowings from banks & financial institutions. With regard to other parties, reconciliations are made and the balance confirmation letters/emails are also sent on a periodic basis.

(h) Benami Property:

No proceedings have been initiated or pending against the Company under the Benami Transactions (Prohibition) Act,1988.

(i) Returns or statements filled with banks or financial institutions:

The quarterly returns / statement of current assets filed by the Company with banks / financial institutions are generally in agreement with the books of accounts.

(j) Wilful Defaulter:

Company has not been declared as a wilful defaulter by any bank or financial institution or any other lender.

(k) Relationship with Struck off Companies:

Company has not undertaken any material transactions with struck-off companies.

(l) Registration of charges or satisfaction with Registrar of Companies:

No charges or satisfaction is pending for registration with Registrar of Companies beyond the statutory period by the Company.

(m) Compliance with number of layers of companies:

The provisions of clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 are not applicable to the Company as per Section 2(45) of the Companies Act, 2013.

(n) Compliance with approved Scheme(s) of Arrangements:

There were no scheme of Arrangements approved by the competent authority during the year in terms of sections 230 to 237 of the Companies Act,2013.

(o) Utilisation of Borrowed funds and share premium:

(A) Company has not advanced or loaned or invested any fund to any entity (Intermediaries) with the understanding that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

(B) Company has not received any fund from any party with the understanding that the Company shall whether, directly or indirectly lend or invest in other entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(p) Crypto Currency or Virtual Currency

Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(q) Undisclosed Income:

Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

In the case of the Raniganj Joint Operation, the Ministry of Petroleum and Natural Gas, Government of India, has terminated the Contract for Exploration and Production of Coal Bed Methane dated 06.02.2003 for the Raniganj (North) CBM block of the ONGC-CIL Consortium, vide letter No. Expl.-11 01 9(1 8)/41 1/201 7-EXPL.-I-PNG (E 3194) dated 2 March 2026. The project was in the development stage at the time of termination. Accordingly, the value of development work classified under Capital Work-in-Progress has been impaired during the year. The future course of action for the joint operation is currently under review by the management.

Management certified provisional expenditure for CBM Jharia and Raniganj Block has been considered for FY 2025-26.

7 Regrouping for the year ended 31st March 2025

(a) Historically, the company treated levies on coal production and sales imposed by central, state and local

authorities as amounts collected in an agency capacity. Pursuant to observations of the audit, the company reassessed the accounting treatment of such levies based on their underlying nature, relevant accounting standards, legal provisions and opinions obtained from accounting experts. Based on this assessment, the company concluded that for levies where it acts as a principal has been presented through regrouping the same in the Financial Statement.

(b) Figures for the previous period(s) have been regrouped wherever necessary, in order to make them comparable. Accordingly, certain items within employee benefit expenses have also been reassessed and regrouped in previous year.

The impact across various heads in the financial statement has been presented below in the reconciliation.

(t) 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 H1.17 crores approximately.

(u) Suspension of mines

The committee of functional director of Coal India Limited vide its 229th meeting dated 05th June, 2020 has ratified the decision to temporarily suspend the mining operation at NEC (in Tikak, Tipong and Tirap Colliery) from 03rd June, 2020 till forestry and other statutory clearances are obtained and mines are made operational. However Mining operations have been started in Tikak Extension OCP mines from 10th February, 2022.

(v) Seized Stock of Coal

As per the direction given by Dy. Director of Forests, Regional Office, MoEF Shillong on 24th October, 2019, 4810.76 tonnes of coal lying in the Tikak colliery was seized and directed not to carry out any mining operation at Tikak Colliery. NEC Protested the seizure of coal at Tikak Colliery and filed a case in the SDJM's Court, Margherita. The Hon'ble court has taken cognizance of the matter and case is pending till date. Based on, order of the Hon'ble court, Divisional Forest Officer, Digboi Division has directed to sell the coal and deposit

the money under the custody of Margherita Treasury. Based on the above order, NEC sold 906.46 tonnes of coal amounting to H 0.37 Crore in FY 2020-21 and 3904.30 tonnes of coal amounting to H 1.93 Crore in FY 2019-20 and collected Royalty of H 0.04 Crore in FY 2020-21 and H 0.25 Crore in FY 2019-20 on this sale. The inventory of FY 2019-20 includes stock of seized coal 906.46 tonnes valued H 0.32 Crore.

Further, on the direction of Divisional Forest Officer, Digboi Division NEC has deposited & provided amounting H 2.26 Crores under the custody of Margherita Treasury.

(w) CIL and ONGC have entered into agreement for CBM development and operation in Jharia and Raniganj North CBM Blocks as joint operation as per GoI CBM policy under the aegis of Directorate General of Hydrocarbons (DGH). Participating Interest (PI) of CIL in both the operations is 26% as on 31.03.2026 (26% as on 31.03.2025) .

In case of Jharia Joint Operation, as per DGH communication even though the period of development phase of Jharia CBM Block was mentioned from April, 2013 to May 28, 2021, the project work at site in Jharia CBM Block pending completion thereof has been considered under development stage and the matter has been referred back to DGH for review and necessary regularisation.

8 Miscellaneous Informations

(i) Recent Accounting pronouncements applicable in Financial Year 2025-26

The Ministry of Corporate Affairs (MCA) has issued several amendments during the year to the Companies (Indian Accounting Standards) Rules, 2015, introducing changes to various Indian Accounting Standards (Ind AS) applicable from the date of publication in the Official Gazette. These amendments issued on 7th May, 2025 and 13th August, 2025 cover amendments or consequential amendments to Ind AS 1,7,10, 12, 21, 28, 32, 101,

107, 1 08, 1 09, 1 15 and 11 6. The Group has evaluated these amendment and find no material impact on its financial statements.

(ii) The material accounting policies have been updated to enhance clarity for users of the financial statements. These updates do not carry any financial implications.

(iii) Note - 1 and 2 represents Corporate information and Material Accounting Policies respectively, Note 3 to 11 form part of the Balance Sheet and 12 to 15 form part of Statement of Profit & Loss . Note - 16 represents Additional Notes to the Financial Statements.