Note: 1 CORPORATE INFORMATION
Coal India Limited (CIL) is a Maharatna Company having registered office at Kolkata, West Bengal and listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The Company is mainly engaged in mining and production of Coal and also operates Coal washeries. The major consumers of the company are power and steel sectors. Consumers from other sectors include cement, fertilisers, brick kilns etc.
CIL is an apex body with 8 wholly-owned subsidiaries in India out of which 7 subsidiaries are coal producing and 1 subsidiary is engaged in mine planning, designing and related consultancy services. The operations of the Company are spread across 8 states in India. CIL also has a fully owned mining company in Mozambique known as ‘Coal India Africana Limitada’ which is yet to commence operations. Further some of the subsidiaries of CIL, are also having another layer of subsidiaries. There are also Joint Ventures/Associates of CIL.
a. 5487.825 hectares of total land is in the possession of NEC, out of which 998.005 hectares constitutes of free hold land and remaining 4489.82 hectares as leasehold land. Out of above, 946.34 hectares of free hold land and the entire 4489.82 hectares of leasehold land were acquired by the company in the process of Nationalisation for which nil value was recorded in the books.
b. Land amounting to Rs. 0.08 crore related to Western Coalfields LImited has been transferred.
c. Land acquired in pursuance to Coal Mines (Nationalisation) Act 1973, does not require title deeds separately for corresponding land. All other title deeds for land acquired are in possession and are mutated in favour of company except in few cases of freehold lands, where same is under progress pending legal formalities.
d. Land- Others also includes Land acquired under Coal Bearing Areas (Acquisition and Development) Act, 1957 and Land Acquisition Act, 1894.
2. Dankuni Coal Complex / Indian Institute of Coal Management :
a. Fixed assets comprising plant & machinery and related building and other assets having written down value as on 31.03.2019 of Rs.10.21 Crore, continue to be let out to South Eastern Coalfields Ltd. for a lease rent of Rs. 1.80 Crore per annum under cancellable operating lease agreement. The above written down value of Rs. 10.21 Crore includes land of Rs. 3.73 Crore (at cost) and building of Rs. 4.41 Crore (at WDV).
b. Fixed assets comprising plant & machinery and related building and other assets having written down value as on 31.03.2019 of Rs. 12.51 Crore have been let out to Indian Institute of Coal Management, a registered society under Societies Registration Act, 1860 for an annual lease rent of Rs. 1.80 Crore under cancellable operating lease agreement.
3. Land Reclamation/Site Restoration cost comprises of estimated cost to be incurred at the stage of mine closure duly escalated for inflation (5% p.a.) and then discounted at 8 % discount rate that reflects current market rate of fair value and the risk.
4. Depreciation has been provided based on useful life as mentioned in Note 2.7. However, pending completion of technical assessment to segregate the value of certain assets embedded within a different class of asset, depreciation has been provided on these assets on the basis of useful life of the un-segregated class of assets.
NOTE - 2 NON - CURRENT INVESTMENTS - Unquoted at Cost
1 Investment in Eastern Coalfields Limited (ECL) and Bharat Coking Coal Limited (BCCL)
a) 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 31.03.2019 is Rs. 2118.00 (Rs.2118.00) crore against which the accumulated loss as on 31.03.2019 is Rs. 1751.76 crore (Rs.2546.82 crore). The accumulated losses as on 31.03.2019 has come down to Rs. 1751.76 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 31.03.2019 is Rs. 2218.45 (Rs. 2218.45) crore against which the accumulated loss as on 31.03.2019 is Rs. 1439.29 crore (Rs. 2731.93 crore). The accumulated losses as on 31.03.2019 has come to Rs. 1439.29 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.
b) Investments also includes preference share which have been classified as compound financial instrument by such companies as the dividend on them is payable at the discretion of ECL and BCCL.
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 shown under current account 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 31.03.2019 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 Uria 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 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. 50 Crore. Presently Coal India Limited has invested Rs. 16.34 crore (i.e. 33.33%) in the joint venture company upto 31.03.2019.
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. 5300.00 Crore. Presently Coal India Limited has invested Rs. 440.33 crore (i.e. 33.33%) in the joint venture company upto 31.03.2019.
7 During the year 2018-19 Northern Coalfields Limited (NCL), South Eastern Coalfields Limited (SECL) and Mahanadi Coalfields Limited (MCL) sanctioned Buy-back of shares upto 7.59%, 6.834% and 6.27% respectively. Number of shares bought back by NCL, SECL and MCL are 5,18,560 equity shares of Rs. 1000 each, 4,90,039 equity shares of Rs. 1000 each and 4,42,967 equity shares of Rs. 1000 each respectively.
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. 2.68 crore (Rs.2.41 crore) is included in interest income from deposit with banks disclosed in Note-24. Up to 80% of the total deposited amount including interest accrued in the ESCROW account may be released after every five years in line with the periodic examination of the closure plan as per the Guidelines. (Refer Note 20 for Provision for Site Restoration/Mine Closure).
2. Coal India Ltd. entered into a Consortium Agreement with M/s BEML Ltd 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 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 Rs 100 Crores towards the said acquisition based on the order passed by Hon’ble High Court of Calcutta. As on 31st March 2019 an amount of Rs 33.56 Crores (Rs. 31.31 Crores) was paid towards bid consideration and other miscellaneous expenditure. Further a Company in the name of MAMC Industries Limited (MIL) has been formed and incorporated on 25 August 2010 as a wholly owned subsidiary of BEML for the intended purposed of JV formation. As per 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.
3. Deposit in Bank under Shifting & Rehabilitation Fund scheme 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 6/- 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.
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.
1. Sale of Coal is net of Provision for Coal Quality Variance amounting is Rs. 2.91 Crore (Rs. 4.88 Crore)
2. Government of India introduced Goods and Services Tax (GST) w.e.f 1st July, 2017. Consequently revenue from operations for the period from 01.07.2017 to 31.03.2019 is presented net of GST.
3. Revenue from operations for the period prior to 01.07.2017 is inclusive of Excise duty. Sale of coal includes excise duty of Rs.5.87 Crore for the period 01.04.2017 to 30.06.2017. Loading and additional transportation charges includes excise duty of Rs. 0.07 Crore.
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 Net Asset Value (NAV) as at the reporting date.
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 investments, 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(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.
2. 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.
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 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.
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 company.
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
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 accordance with practice and limits set by the Company. 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.535.00 Crore (Rs.550.00 Crore), of which fund based limit is Rs.240.00 Crore (Rs.250.00 Crore)and non-fund based limit is Rs.295.00 crore (Rs.300.00 Crore). Further, Rs.5000.00 crore (Rs.5000.00 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.
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 from Department of public enterprises (DPE), diversification of bank deposits credit limits and other securities.
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.
3. Employee Benefits: Recognition and Measurement (Ind AS-19)
Gratuity is maintained as a defined benefit retirement plan and contribution is made to the Life Insurance Corporation of India. The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income.
b) Leave encashment
The liabilities for earned leave are expected to be settled 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. Re-measurements as a result of experience adjustments and changes in actuarial assumptions are recognised in other comprehensive income.
c) 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 Rs.53.63Crore (Rs.28.61Crore)has been recognized in the Statement of Profit & Loss (Note 27).
d) The Company operates some defined benefit plans as follows which are valued on actuarial basis:
o Gratuity o Leave Encashment o Medical Benefits o Pension Scheme
o Life Cover Scheme o Settlement Allowance o Group Personal Accident Insurance o Leave Travel Concession
o Compensation to dependent on Mine Accident Benefits Total liability as on 31.03.2019 based on valuation made by the Actuary, details of which are mentioned below is Rs.456.49 Crore.
Medical Benefits for retired Employees
The Company provides Post-Retirement Medical Facility to the retired employees and their spouse. The facilityis covered by separate PostRetirement Medical scheme for executive and non-executive. Scheme for the medical benefit for executive retired prior to 01.01.2007 is administered through separate “Contributory Post-Retirement Medical Scheme for Executive Trust”. Liability for the medical benefits are recognized based on actuarial valuation.
For executive retired prior to 01.01.2007 - funded status as on 31.03.2019 Rs.5.47crore (Nil) and liability for the same as on 31.03.2019 is Rs.33.52 crore (Rs.39.43crore).
The company has a defined contribution pension scheme for its employees, which is administered through CIL Executive Defined Contribution Pension Scheme - 2007 trust. Funded status as on 31.03.2019 Rs.58.54 crore (Nil) and liability for the same as on 31.03.2019 is Rs.53.70 crore (Rs.51.53crore).
4. Unrecognized items
a) Contingent Liabilities
I. Claims against the companynot acknowledged as debt
The management believes that the outcome of the above will not have any material adverse effect on the company.
The company has given guarantee on behalf of subsidiaries namely, Eastern Coalfields Limited and Mahanadi Coalfields Limited to the extent of their obligations under loans (principal and interest) made to Export Development Corporation, Canada and Natexis Banque (for purchase of Machinery from Liebherr France). The outstanding balance as on 31.03.2019 stood at Rs.165.55 Crore (Rs.161.20 Crore) and Rs.6.29 Crore (Rs.7.09 Crore) respectively. Other bank guarantee issued is Rs.0.84 Crore (Rs.0.84 Crore).
III. Letter of Credit:
As on 31.03.2019 outstanding letters of credit is Nil(Nil).
Estimated amount of contracts remaining to be executed on capital account and not provided for: as on 31.03.2019 is Rs.322.61 Crore (Rs.19.38 Crore).
Other Commitment: as on 31.03.2019 Rs.306.85 Crore (Rs.391.02 Crore)
5. Other Information
The position and movement of various provisions as per Ind AS-37 except those relating to employee benefits which are valued actuarially, as on 31.03.2019 are given below :
b) Authorised Preference Share capital
c) Earnings per share
d)Related Party Disclosures A. List of Related Parties
i) Subsidiary Companies
1) Eastern Coalfields Limited (ECL)
2) Bharat Coking Coal Limited (BCCL)
3) Central Coalfields Limited (CCL)
4) Western Coalfields Limited (WCL)
5) South Eastern Coalfields Limited (SECL)
6) Northern Coalfields Limited (NCL)
7) Mahanadi Coalfields Limited (MCL)
8) Central Mine Planning and Design Institute Limited (CMPDIL)
9) Coal India Africana Limitada, Mozambique (CIAL)
ii) Joint Venture Companies
1) International Coal Venture Private Limited (ICVL)
2) CIL NTPC Urja Private Limited
3) Talcher Fertilizers Limited (TFL)
4) Hindustan Urvarak and Rasayan Limited (HURL)
iii) Post Employment Benefit Fund:
1) Group Gratuity Cash Accumulation Plan with LICI.
2) New Group Gratuity Cash Accumulation Plan with LICI (for employees joining after 01.04.2014).
3) New Group Leave Encashment Scheme with LICI.
4) Coal Mines Provident Fund (CMPF).
5) Contributory Post-Retirement Medical Scheme for Executive Trust
6) CIL Executive Defined Contribution Pension Scheme-2007
DANKUNI COAL COMPLEX
Coal India Ltd. (Holding Company) has given on lease land, building and structures, plant and machinery of Dankuni Coal Complex at Kolkata from 01.04.1995, with absolute right to manufacture, sell its products including gas and by-products. The lease rent payable from 01.04.2016 onward to Coal India Ltd. is Rs.1.80 Crore per annum.
C. Entities under the control of the same government:
The Company is a Central Public Sector Undertaking (CPSU) controlled by Central Government by holding majority of shares (Refer Note-16). The Company being a Government entity is exempt from the general disclosure requirements in relation to related party transactions and outstanding balances with the controlling Government and another entity under same Government. The following transactions have been entered at arm’s length price with entities under the control of the same Government.
e) Recent AccountingPronouncements
i) Ind AS, 116- Leases
Ministry Of Corporate Affairs vide notification dated 30th March 2019 has notified Indian Accounting Standard (Ind AS) 116, Leases which shall come into force on the 1st day of April 2019.
This Standard sets out the principles for the recognition, measurement, presentation, and disclosure of leases. The objective is to ensure that lessees and lessors provide relevant information in a manner that faithfully represents those transactions.
The standard permits two possible methods of transition:
Retrospectively to each prior reporting period presented applying IND AS 8 i.e. 1 April 2018.
Retrospectively with the cumulative effect of initially applying the standard on application date i.e. 1 April 2019.
Management is in the process of selecting the appropriate method of transition and estimating the impact in the Financial Statement.
ii) Amendment to Ind AS 19 - plan amendment, curtailment or settlement-
Ministry of Corporate Affairs vide notification dated 30th March 2019 has notified amendments to Ind AS 19, ‘Employee Benefits’, in connection with accounting for plan amendments, curtailments and settlements. The amendments require an entity:
- to use updated assumptions to determine current service cost and net interest for the remainder of the period after a plan amendment, curtailment or settlement; and
- to recognise in profit or loss as part of past service cost, or a gain or loss on settlement, any reduction in a surplus, even if that surplus was not previously recognised because of the impact of the asset ceiling.
Effective date for application of this amendment is annual period beginning on or after 1 April 2019. Management is in the process of estimating the impact of the above in the Financial Statement.
f) CIL AND IICM
CIL has leased out the assets viz. land, building, structures, furniture and fixtures and other assets to IICM. The existing lease agreement is valid from 01.04.2015 to 31.03.2020. The lease rent of IICM payable to CIL is Rs.1.80 Crore per annum.
Excess amount collected on behalf of IICM from subsidiaries Rs. 180.94 Crores during earlier years has been recognised as liability write back in current year as the same is no longer payable to IICM.
g) 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.
h) Insurance and escalation claims
Insurance and escalation claims are accounted for on the basis of admission/final settlement.
i) 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.
j) 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.
k) Current Liabilities
Estimated liability has been provided where actual liability could not be measured.
l) Disaggregated revenue information:
The table below presents disaggregated revenues from contract with customers information as per requirement of Ind AS 115,Revenue From Contract with Customer:
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 Rs. 1.17 Crore approximately. n) 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.
i. Previous year figures have been restated, regrouped and rearranged wherever considered necessary.
ii. Previous Year figures in Note No. 3 to 37 are in brackets.
iii. Note - 1 and 2 represents Corporate information and Significant Accounting Policies respectively, Note 3 to 22 form part of the Balance Sheet as at 31st March, 2018 and 23 to 36 form part of Statement of Profit & Loss for the year ended on that date. Note -37 represents Additional Notes to the Financial Statements.
Signature to Note 1 to 37.