4.1.2.    Investment in Eastern Coalfields Limited (ECL)

The investment in Equity Shares of ECL, a wholly owned subsidiary, is long term and strategic in nature. The investment at cost in ECL is H4269.42 crore (P.Y. H4269.42 crore). The accumulated loss in reserves and surplus has come to H1 168.95 crore (H1291.78 crore in P.Y.) from H2716.00 crore as on 31.03.2015 (i.e. the end of the year in which it came out of BIFR). In view of ECL turning around and the investments in the company being long term and strategic in nature, book value of investment has been considered.

4.1.3.    Investment in Coal India Africana Limitada (CIAL)

Coal India Limited formed a wholly owned Subsidiary in the Republic of Mozambique, named "Coal India Africana Limitada" to explore non-coking coal properties in Mozambique. The paid-up capital (known as "Quota Capital") is H 0.53 crore. Coal India Africana Limitada has been approved for closure by the competent authority. . In view of the same, the investment in Coal India Africana Limitada has been fully impaired.

4.1.4.    Investment in International Coal Ventures Private Limited (ICVPL)

CIL has entered into a Memorandum of Understanding (vide approval from its Board in 237th meeting held on 24th November, 2007) regarding the formation of a Special Purpose Vehicle (SPV) through a joint venture involving CIL/SAIL/RINL/NTPC & NMDC for the 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 Private Limited was incorporated under the Companies Act, 1956 on 20th May, 2009 initially with an authorised capital of H1.00 crore and paid-up capital of Rs.0.70 crore. Coal India Limited is owning 0.19% share i.e. Rs. 2.80 crore face value of equity shares.

4.1.5.    Investment in CIL NTPC Urja Private Limited (CNUPL)

CIL NTPC Urja Private Limited, a 50:50 joint venture company was formed on 27th April'2010 between CIL & NTPC under the Companies Act, 1956 for setting up of joint integrated power plants along with mining of coal. Coal India Limited is presently holding 50% equity shares of face value of H0.08 crore in the joint venture Company.

4.1.6.    Investment in Talcher Fertilizers Limited (TFL)

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 October,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.4200.00 Crore. Presently Coal India Limited has invested Rs. 902.15 crore (i.e. 33.33%) in the joint venture company upto 31-03-2025.

4.1.7.    Investment in Hindustan Urvarak and Rasayan Limited (HURL)

By virtue of agreement dated 16th May, 2016 made between CIL and NTPC Limited, a joint venture company named Hindustan Urvarak and Rasayan Limited (HURL) was formed under the Companies Act, 2013. 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.12000.00 Crore. Presently Coal India Limited has invested H2642.99 crore (i.e. 33.33%) in the joint venture company upto 31-03-2025.

4.1.8.    Investment in Coal Lignite Urja Vikas Private Limited (CLUVPL)

A joint venture company named 'Coal Lignite Urja Vikas Private Limited' was incorporated on 10th November 2020 under the Companies Act, 2013 under a joint venture agreement dated 08th October 2020 with NLCIL as a joint venture partner. The authorized share capital of the company is H0.10 Crore. Presently Coal India Limited has invested H 0.01 Crore (i.e. 50%) in the joint venture company upto 31-03-2025.

4.1.9    Investment in Bharat Coal Gasification & Chemicals Limited (BCGCL)

Coal India Limited and Bharat Heavy Electricals Limited jointly established Bharat Coal Gasification & Chemicals Limited (BCGCL) on 21st May,2024 under the Companies Act, 2013, a Private Limited Company to engage in the business of coal gasification to produce 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.

4.1.10    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 will hold 51% and GAIL (India) Limited will hold 49% equity to set up the Coal to Synthetic Natural Gas (SNG) business. There is no investment till 31.03.2025.

4.1.11    Investment in CIL Solar PV Limited (CSPVL)

CIL Solar PV Limited have been approved for closure by the competent authority. There is no transaction yet with the company.Since, the company was yet to commence operation.

4.1.12    Investment in CIL Navikarniya Urja Limited (CNUL)

CIL Navikarniya Urja Limited (CNUL), a wholly owned subsidiary of Coal India Limited, was established on 16th April 2021,under the Companies Act,2013 to develop projects in the New and Renewable Energy sector. Currently, CNUL provides Project Management Consultancy to CIL subsidiaries for Captive Solar Projects.

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

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 40.83 crore (P.Y. H 37.65 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. However as covered in the terms and condition of the Consortium Agreement, a shareholders' agreement and joint venture agreement has not yet executed in this respect.

4.6.4.    For dues from directors - Refer Note 16(2)(a)(vii)

4.6.5 The details of movement in Allowance for doubtful deposits and receivables and

4.4.1.    ICDs with Primary Dealers are Inter-Corporate Deposits accepted by the Primary Dealers with an original maturity between 7 to 31 Days from the date of investment.

4.4.2.    Cash and cash equivalents comprise cash at the bank, sweep accounts,ICD and term deposits held with banks with original maturities upto three months.

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 and for other specific purposes.

6.2.1    Includes deposit under protest and refund yet to be received for Income tax H 20 crore (P.Y. H 20 crore).

6.2.2    Includes H84.33 crore (P.Y. H 76.15 crore) for gratuity fund (incl. amount recoverable from the gratuity trust for benefit paid) and leave fund net of liabilities.

6.2.3    Represents provisions of H 2.27 crore (P.Y. H 2.27 crore) against deposit of realisation from sale of seize coal stock in the custody of Margherita Treasury. )

6.2.4    Input tax credit (ITC) relating to GST paid on input materials/services available for utilisation against the GST on output has been accumulated to Rs. 93.78 crore as on 31-03-2025 (as on 31-03-2024 Rs. 78.75 crore) refer note

6.1 & 6.2. This to a large extent includes GST on royalty against mining operations paid under Reverse Charge Mechanism (RCM) at a rate of 18% against which the recovery is limited to 5% being the rate of duty payable on coal. The amount getting accumulated due to inverted tax structure even though currently not utilised and as ITC is not refundable as per notification issued in this respect, has been carried forward for possible utilisation including on account of revision in tax structure and increase in amount of sales in the near future considering that there is no time limit for utilising the same.

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)

13.3.1    Including allowances, bonus, incentives, performance related pay, overtime pay, sitting fees to independent directors 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 year for Provident Fund Rs. 24.65 crores(P.Y. H 25.21 crores), Pension Fund Rs.13.86 crores(P.Y. Rs.14.13 crores) and CIL Executive Defined Contribution Pension Scheme (NPS) Rs. 6.40 crores(P.Y. Rs. 6.05 crores).

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 31-03-2025 stood at H 154.47 Crore (P.Y. H1 57.99 Crore) and H 3.35 Crore (P.Y. H3.95 Crore) respectively.

(b)    Coal India Limited has provided corporate 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.

(c)    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 H430.00 Crore, of which fund based limit is H140.00 Crore and non-fund based limit is H290.00 crore. Further, H7850.00 crore(P.Y.H6740.00 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.

(b)    Commitments

i)    Capital Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for : H 23.20 Crore (P.Y. H 25.1 Crore) (net of advances H 44.14 crore (P.Y.H 47.18 crore)).

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

iii)    Other Commitments:    H 311.35 Crore (P.Y H 471.65 Crore)

Mainly related to investment in Subsdiary/JV/ projects/Land Compensation and other exceptional items in nature not covered in (i) and (ii)

(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.

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.

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 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 Non-Regulated 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.

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(INR).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 comapny subject to maximum of H 20 lacs 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 of H 20 lacs.

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 group, 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 group, 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 group, 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.

(III) Other Long Term Employee Benefits

a)    Leave encashment

The company provides benefit of total Earned Leave (EL) of 30 days and Half Paid Leave (HPL) of 20 days to the executives of the company, accrued and credited proportionately on half yearly basis on the first day of January and July of every year. During the service, 75% EL credited balance is one time encashable in each calendar year subject to ceiling of maximum 60 days EL encashment. Accumulated HPL is not permitted for encashment during the period of service. On superannuation, EL and HPL together is considered for encashment subject to the overall limit of 300 days without commutation of HPL. In case of non-executives, Leave encashment is governed by the National Coal Wage Agreement (NCWA) and at present the workmen are entitled to get encashment of earned leave at the rate of 15 days per year and on discontinuation of service due to death, retirement, superannuation and VRS, the balance leave or 150 days whichever is less, is allowed for encashment. Therefore, the liabilities for earned leave are expected to be settled during the service as well as after the retirement of employee. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. The scheme is funded by qualifying insurance policies from Life Insurance Corporation of India. The liability under the scheme is borne by the Company as per actuarial valuation at each reporting date.

b)    Life Cover Scheme (LCS)

As a part of the social security scheme, the Group has a Life Cover Scheme known as "Life Cover Scheme of Coal India Limited" (LCS) which covers all the executive and non-executive cadre employees. In case of death in service, an amount of H 1,56,250

is paid to the nominees under the scheme w.e.f 01.10.2017. The expected cost of the benefits is recognized when an event occurs that causes the benefit payable under the scheme.

c)    Settlement Allowances

As a part of wage agreement, a lump sum amount of H 12000/- is paid to all the non-executive cadre employees governed under NCWA on their superannuation on or after 31.10.2010 as settling-in allowance. The liability under the scheme is borne by the Company as per 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 Group 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 10000/- and H 15000/- 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 under wage agreement, the company provide the benefits admissible under The Employee's Compensation Act, 1923. An amount of H 15 lakhs is paid to the next of kin of an employee in case of a fatal mine accident w.e.f 07.11.2019. In addition, w.e.f 01.06.2023 an exgratia amount of H 90,000/- is 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.

6 Other Information

(a) Segment Reporting

The Company's main business is Coal mining. All other activities of the company revolve around the main business. As such, there are no separate reportable segments for the company.

(d) (i) Lease - as a lessee

CIL has taken a Guest House at Hailey Road, New Delhi on a short-term lease for a monthly rent of H 0.02 crore. The monthly lease payments associated 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 0.08 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. Some of such balances are subject to confirmation/reconciliation. Adjustments, if any will be accounted for on confirmation/reconciliation of the same, and are not anticipated to materially affect the results.

(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.

(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 amounting H 2.26 Crores under the custody of Margherita Treasury. The management has also recognised the provision against such deposit in the Financial Statement.

(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 31.03.2025. 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. Raniganj North CBM Block is also under development stage as on 31.03.2025.

Management certified provisional expenditure for CBM Jharia and Raniganj Block has been considered for FY 2024-25.

7 Miscellaneous Informations

(i)    Recent Accounting pronouncements applicable in Financial Year 2024-25

The Ministry of Corporate Affairs (MCA) has issued several amendments to the Companies (Indian Accounting Standards) Rules, 2015, introducing significant changes to various Indian Accounting Standards (Ind AS) applicable from 1st April 2024. These amendments covers Introduction of Ind AS 117 - Insurance Contracts with Consequential modifications to Ind AS 101, 103, 105, 107, 109, 1 15; Amendments to Ind AS 116 - Leases and Continuation of Ind AS 104 for Certain Insurers. The company has evaluated these amendment and find no material impact on its financial statements.

(ii)    Figures for the previous year have been regrouped wherever necessary, in order to make them comparable.

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

(iv)    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.