ഹോം  »  Company  »  Coal India  »  Quotes  »  Auditor Report
കമ്പനിയുടെ പേരിലെ ആദ്യത്തെ കുറച്ച് അക്ഷരങ്ങള്‍ എന്റര്‍ ചെയ്യൂ, അതിന് ശേഷം 'ഗോ' എന്നതില്‍ ക്ലിക്ക് ചെയ്യൂ

Auditor Report of Coal India Ltd.

Mar 31, 2019

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the standalone financial statements of Coal India Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2019, the Statement of Profit and Loss, Statement of changes in Equity and Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the Accounting Standards prescribed under section 133 of the Act read with the Companies (Accounting Standards) Rules, 2006, as amended (“Accounting Standards”) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2019, and its profit, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current year. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.We have determined the matters described below to be the key audit matters to be communicated in our report.

Key Audit Matter:

1. Adoption of Ind AS 115 “Revenue from Contracts with Customers” in the standalone financial statements in respect of accuracy of revenue recognition and adjustments for coal quality variances involves critical estimates.

The revenue recognized by the Company in a particular contract is dependent on the sale agreement / allotment in e-auction for the respective customer. Subsequent adjustments are made to the transaction price due to grade mismatch/slippage of the transferred coal.

The variation in the contract price if not settled mutually between the parties to the contract is referred to third party testing and the Company estimates the adjustments required for revenue recognition pending settlement of such dispute.

Such adjustments in revenue are made on estimated basis following historical trend.

Refer Note 23to the Standalone Financial Statements

Auditor’s Response:

Principal Audit Procedures:

- We have assessed the application of the provisions of Ind AS 115 in respect of the Company’s revenue recognition and appropriateness of the estimated adjustments in the process.

- We have selected transactions on sample basis and tested for identification of contracts involving disputes relating to grade mismatch/ slippage with respect to the terms of the contract, evaluation of the satisfaction of performance obligation, checking the adjustment to the revenue due to variation in transaction price

- We have performed tests to establish the basis of estimation of the consideration and whether such estimates are commensurate with the accounting policy of the Company

Audit Conclusion:

Our procedures did not identify any material exceptions.

Key Audit Matter:

2. Accuracy of impairment provisions in respect of exploration and evaluation assets which involves critical judgment of the management in respect of feasibility of ongoing projects.

The Company is required to determine an accounting policy in line with the provisions of Ind AS 106, ‘Exploration For and Evaluation of Mineral Resources’specifying the expenditures recognised as exploration and evaluation assets and assess such assets for impairment and apply the policy consistently.

The financial statements include relevant disclosures that identify and explain the amounts arising from exploration for and evaluation of mineral resources with the objective that the amounts, timings and future cash flows from such assets are recognized.

Refer Note 5 to the Standalone Financial Statements.

Auditor’s Response:

Principal Audit Procedures:

- Our audit procedures include considering the facts and circumstances suggesting impairment of exploration and evaluation assets as per Ind AS 106 and to examine whether these are in line with the impairment policy of the company and the consistent application of such policy.

- We have evaluated the design of internal controls relating to assessment of technical feasibility and commercial viability of ongoing projects on the basis of available information and technical assessment reports, approval from Project and Planning Committee (PPC) and other relevant documents.

- We have selected transactions on sample basis and tested for recognition, measurement and disclosures of impairments of exploration and evaluation assets.

Audit Conclusion:

Our procedures did not identify any material exceptions.

Key Audit Matter:

3. Assessment of provisions and contingent liabilities in respect of certain litigations including direct and indirect taxes, various claims filed by other parties not acknowledged as debt.

There is high level of judgment required in estimating the level of provisioning. The Company’s assessment is supported by the facts of matter, their own judgment, past experience, and advice from legal and independent tax consultant wherever considered necessary. Accordingly, unexpected adverse outcomes may significantly impact the company’s reported profit and net assets. Associated uncertainty relating to the outcome requires application of judgment in interpretation of law.

Refer Note 37(4)(a) to the Standalone Financial Statements.

Auditor’s Response:

Principal Audit Procedures:

Our audit was focused on analyzing the facts of subject matter under consideration and judgments/ interpretation of relevant law.

Our Audit approach involved:

- Examining recent orders and/or communication received from various Tax authorities/ judicial forums and follow up action thereon.

- Understanding the current status of the litigation/tax assessments

- Evaluating the merit of the subject matter under consideration with reference to the grounds presented therein and available independent legal / tax advice

- Review and analysis of the contentions of the company through discussion, collection of details of the subject matter under consideration, the likely outcome and consequent potential outflows on those issues.

Audit Conclusion:

Our procedures did not identify any material exceptions.

Information Other than the Financial Statements and Auditors’ Report Thereon

The Company’s Board of Directors is responsible for the preparation of the other information. The other information comprises the draft Directors’ Report including annexures to Directors’ Report, which we obtained prior to the date of this auditors’ report and other reports included in the Annual report, which are expected to be made available to us after that date, but does not include the standalone financial statements and our auditors’ report thereon.

Our opinion on the financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above, and in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditors’ report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

When we read the full Annual report which is expected to be made available to us after the date of this auditors’ report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Responsibilities of the Management and Those Charged with Governance for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit.We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.

- Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Emphasis of Matter

We draw attention to the following matter:

Investment of Rs. 10,262.54 Crores (as at March 31, 2018: Rs. 9,963.52 Crores) in its two wholly owned subsidiary companies has been shown at book value. As explained by the management, the investment in these subsidiary companies is long term and strategic in nature and the performance of these subsidiary companies is improving. Because both companies have earned profit during 2018-19 the management is of the opinion that no provisioning is required against the erosion of Rs.4,148.75 Crores (as at March 31, 2018:Rs. Rs. 5,278.75 Crores) in the value of the investment, as the same is temporary in nature.

Our opinion is not modified in respect of this matter.

Other Matter

a) Our Report on the Standalone Financial Statements dated May 30, 2019 as approved by the Board of Directors of the Company is revised to incorporate observations of the Comptroller and Auditor General of India and amendments made in Para (3)(g)(iii) of “Report on Other Legal and Regulatory Requirements” to replace the words “There has been no delay in transferring the amounts” instead of “There were no amounts which were”and in Para no vii(b) of “Annexure-A” to revise the gross amount under dispute, amount not deposited for dues against Income Tax and Central Excise and to replace the word (AY) in place of FY .This revised Audit Report has no impact on the reported figures in the financial statements of the Company. This audit report supersedes the original audit report dated May 30, 2019.

Our audit procedure on events subsequent to the date of original report is restricted solely to the amendment to para (3)(g)(iii) of “Report on Other Legal and Regulatory Requirements” and para no. vii(b) of”Annexure-A” to the Independent Auditor’s Report.

b) The comparative financial information of the Company for the year ended March 31, 2018 prepared in accordance with Ind AS included in this Ind AS financial statement has been audited by the predecessor auditor. The report of the predecessor auditor on the comparative financial information dated July 06, 2018 expressed an unmodified opinion.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1 As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central Government of India in terms of subsection (11) of section 143 of the Companies Act, 2013, we give in the “Annexure - A”, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2 As required under Section 143 (5) of the Companies Act, 2013, we give in the “Annexure - B”, a statement on the Directions issued by the Comptroller and Auditor General of India after complying with their suggested methodology of audit, the action taken thereon and its impact on the accounts and financial statements of the Company.

3 As required by Section 143(3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit read with matters as reported in “Emphasis of matter” paragraph above.

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, statement of changes in equity and statement of cash flows dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with relevant rules issued thereunder.

e) In pursuance to the Notification No. G.S.R 463 (E) dated 05-06-2015 issued by the Ministry of Corporate Affairs , Section 164 (2) of the Companies Act, 2013 pertaining to disqualification of Directors, is not applicable to the Government Company.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure -C”.

g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 37(4)(a) to the standalone financial statements;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

iii. There has been no delay in transferring the amounts required to be transferred to the Investor Education and Protection Fund by the Company.

(Referred to in Paragraph 1 of “Report on Other Legal and Regulatory requirements” section of our Audit Report)

(i) In respect of Fixed Assets:

a) The Company has generally maintained proper records showing full particulars, including quantitative details and situation of fixed assets except date of commissioning of some old assets, location, identification and codifications which need to be updated.

b) The fixed assets located at Head Office, North Eastern Coalfields (NEC), New Delhi Liaison Office, various Regional Sales offices and other offices have been physically verified periodically as certified by the management. The process should be further improved by having a well-defined programme of physical verification to cover all the assets in phased manner. The reconciliation of physically verified assets with the book records is in progress. According to the information and explanations given by the management discrepancies noticed on the physical verification and consequential adjustments are not material.

c) According to the information and explanations given to us and on the basis of our examination of the title deeds, lease deeds and/ or other evidences of title, freehold land amounting to Rs.12.07 Crores and leasehold land amounting to Rs. 0.92 Crores are held in the name of the Company except for freehold land 5.60 hectares amounting to Rs. 0.03 Crores for which title deeds are not available for North Eastern Coalfields (NEC).

At North Eastern Coalfields (NEC), 946.34 hectares of freehold land and 4,489.82 hectares of leasehold land were acquired by the company or came in the possession of the company on Nationalization, for which ‘nil’ value is recorded in the books of accounts.

Title deeds for buildings at New Delhi Liaison Office and Delhi RSO amounting to Rs. 6.57 Crores (Written down value as on March 31, 2019) are not in the name of the Company.

ii. As informed to us, physical verification of inventories at North Eastern Coalfields, the production unit of the Company has been conducted at reasonable intervals during the year by the management. The inventories of coal have been measured on the basis of volumetric system. In our opinion and according to the information and explanations given to us, discrepancies noticed on physical verification of inventories were not material and have been properly dealt with in the books of account.

iii. According to the information and explanation given to us, the Company had not granted any unsecured loan to companies covered in the register maintained under section 189 of the Companies Act, 2013. Hence reporting under paragraph 3 (iii) of the Order is not applicable to the Company

iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.

v. The company has not accepted any deposit, in terms of the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under.

vi. The maintenance of cost records has been prescribed by the Central Government under Section 148(1) of the Companies Act, 201 3 in respect of Mining activities of the Company. We have broadly reviewed the records and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made any detailed examination of the records with a view to determine whether they are accurate or complete.

vii. a) According to the information and explanations given to us and on the basis of our examination of books of accounts, the Company has generally been regular in depositing the undisputed statutory dues including provident fund, income tax, sales tax, wealth tax, duty of customs, duty of excise, value added tax, goods and services tax, cess and any other statutory dues with the appropriate authorities. As informed to us, employee’s state insurance is not applicable to the company.

According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, wealth tax, duty of customs, duty of excise, service tax, value added tax, goods and services tax, cess and other material statutory dues were in arrears as at March 31, 2019 for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us and as per the records of the Company examined by us, following dues of income tax and central excise were in arrears as at March 31,2019 :-

(Rs. in crore)

Name of the Statute

Nature of Dues

Gross Amount Under dispute

Period to which the amount relates (FY)

Forum where the dispute is pending

Amount deposited under protest

Amount not deposited

Income Tax Act

Income Tax

41.81

2008-2009

ITAT

0.00

41.81

78.07

2011-2012

ITAT

20.00

58.07

81.58

2012-2013

ITAT

53.00

28.58

90.30

2013-2014

ITAT*

0.00

90.30

Total

291.76

73.00

218.76

Central Excise Act,1944

Central Excise

4.45

2010-11 to 2014-15

CESTAT

0.17

2.05

viii. The Company does not have any loans or borrowings from any financial institution, banks, Government or debenture holders during the year and as such paragraph 3(viii) of the Order is not applicable to the Company.

ix. According to the information and explanations given to us, the Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under paragraph 3 (ix) of the Order is not applicable to the Company.

x. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.

xi. As per notification no. GSR 463(E) dated June 05, 2015 issued by the Ministry of Corporate Affairs, Government of India, Section 197 is not applicable to the Government Company. Accordingly paragraph 3 (xi) of the Order is not applicable to the Company.

xii. According to the information and explanations given to us, the Company is not a Nidhi Company as such paragraph 3(xii) of the Order is not applicable.

xiii. According to the information and explanations given to us and based on our examination of the records of the company, transactions with the related parties are in compliance with Section 177 and Section 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.

xiv. During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under paragraph 3 (xiv) of the Order is not applicable to the Company.

xv. According to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its Directors or persons connected to its directors and hence provisions of Section 192 of the Companies Act, 2013 are not applicable to the Company.

xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of Coal India Limited (hereinafter referred to as ‘the Company’) as of March 31, 2019 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 20 13, to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

According to the information and explanations given to us and based on our audit, in our opinion, the Company has generally mai ntained, in all material respects, an adequate internal financial controls over financial reporting and such internal financial controls over financial reporting were generally operating effectively as of March 31, 2019 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal controls stated in the “Guidance Note on Audit of Internal Financial Controls over Financial Reporting” issued by the Institute of Chartered Accountants of India.

However further improvement is required in i) the documentation of Internal Financial Controls of the Company in respect of its risk assessment process, risk analysis of different functional areas and incorporating the process flows at departmental levels including risk mitigation in respect of insurance coverage, ii) strengthening of the monitoring of controls in respect of expenses and fixed assets, confirmation/ reconciliation/ adjustment of balances of other financial assets, other current & non-current assets, trade payables, other financial liabilities and other current liabilities and iii) inadequate design of information technology system and application controls that prevent the information system from providing complete and integrated information consistent with financial reporting objectives.

Our opinion is not qualified in respect of the above matters.

For RAY & RAY

Chartered Accountants

(Firm’s Registration No. 301072E)

(Nabanita Ghosh)

Place: Kolkata Partner

Date: July 2, 2019 Membership No. 058477

UDIN:19058477AAAAAG2521


Mar 31, 2018

Independent Auditors'' Report

To

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Coal India Limited (hereinafter referred to as ''the Company''), which comprise the balance sheet as at 31st March 2018 and the statement of profit and loss including other comprehensive income, the statement of cash flows and the statement of changes in equity for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with relevant rules issued thereunder. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial position) of the Company as at 31st March 2018, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.

Emphasis of Matters

We draw attention to the followings:-

a) Certain balances of loans, other financial assets, trade receivables, other current & non-current assets, Trade payables, other financial liabilities and other current liabilities have not been confirmed. Consequential impact on confirmation/ reconciliation/ adjustment of such balances (which will not be material as per management), if any is not ascertainable;

b) Note No.7 refers to an aggregate Investment of Rs, 9963.52 Crores (as at 31st March 2017: Rs, 9688.42 Crores) in its two wholly owned subsidiary companies have been shown at book value. As explained by the management, the investment in these subsidiary companies is long term and of strategic in nature and the performance of these subsidiary companies is improving. The management

is of the opinion that no provisioning is required against the erosion of Rs, 5278.75 Crores (as at 31st March 201 7: Rs, 3169.84 Crores) in the value of Investment, as the same is of temporary in nature; c) Note No.38(4) (a) Contingent Liability of the accompanying standalone financial statements, which describes the uncertainty related to the outcome of the lawsuits filed and demands raised against the Company by various parties and Government authorities.

Our opinion is not qualified in respect of the above matters.

Other Matters

Our Audit Report dated 29th May,2018 on financial statement as approved by the Board of Directors of the Company as of even date is revised to consider observation of the Comptroller and Auditor General of India and amendment is made in Para no. vii(b) in Annexure-"A" to include amount of deposits made under protest against the disputed tax amounts.

Our Audit procedure on events subsequent to the date of the original report is restricted solely to the amendment made to the Para no. vii(b) in Annexure-"A" to the Independent Auditors'' Report under Companies(Auditor''s Report) Order 2016.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the "Annexure-A", a statement on the matters specified in the paragraph 3 and 4 of the said order.

2) As required under Section 143(5) of the Companies Act, 2013, we give in the "Annexure-B", a Statement on the Directions issued by the Comptroller and Auditor General of India after complying with their suggested methodology of audit, the action taken thereon and its impact on the accounts and financial statements of the company.

3) As required by Section 143 (3) of the Act, we report that:

a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit read with matters as reported in clause (a) of "Emphasis of Matters" paragraph above.

b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

c) the balance sheet, the statement of profit and loss including other comprehensive income, the statement of cash flows and the statement of changes in equity dealt with by this Report are in agreement with the books of accounts.

d) in our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with relevant rule issued there under;

e) in pursuance to the Notification No. G.S.R 463(E) dated 05-06-2015 issued by the Ministry of Corporate Affairs, Section 164(2) of the Companies Act, 2013 pertaining to disqualification of Directors, is not applicable to the Government Company.

f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness

of such controls, refer to our report in "Annexure -C" and

g) with respect to the other matters to be included in the Auditors'' Report in accordance with Rule 11 of the Companies (Audit and

Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements-[Refer Note No.38(4)(a) to the standalone financial statements];

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

iii. There has been no delay in transferring the amounts, required to be transferred to the Investor Education and Protection Fund by the Company.

(Referred to in Paragraph 1 of "Report on Other Legal and Regulatory requirements" section of our Audit Report)

(i) In respect of Fixed Assets:

(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets except for assets at Regional sales offices. Further certain details as regards to purchase orders reference, date of commissioning, location, identification and codifications etc. of some movable tangible assets needs to be updated. Location details and area of freehold and leasehold land also needs to be updated in the fixed asset register and need to be reconciled with the revenue records maintained by the local authority.

(b) The fixed assets located at Head quarter, North Eastern Coalfields (NEC), various Regional Sales offices and other offices have been physically verified periodically as certified by the management. Pending for reconciliation and adjustment in the books of accounts, discrepancies noticed on such verification were not material as per the management. The process should be further improved by having a well defined Programme of physical verification to cover all the assets in phased manner.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, title deeds, lease deeds and/or other evidences of title of freehold land amounting Rs, 12.15 Crores and for leasehold land amounting Rs, 0.92 Crores have been verified by us and the same are held in the name of the Company. At NEC, 946.51 hectares of freehold land and 4489.82 hectares of leasehold land were acquired by the company or came in the possession of the company on Nationalization, for which ''nil'' value is recorded in the books of accounts. Out of the above, title deeds and other evidences of title for freehold land are available except for 4.23 hectares and incase of leasehold land, documents for title in some cases either not available or could not be properly identified to the concerned leasehold land.

(ii) As informed to us, physical verification of inventories at North Eastern Coalfields, the production unit of the Company has been conducted at reasonable intervals during the year by the management. The inventories of coal have been measured on the basis of volumetric system. In our opinion and according to the information and explanations given to us, discrepancies noticed on physical verification of inventories were not material and have been properly dealt with in the books of account.

(iii) According to the information and explanation given to us, the Company had granted unsecured loan aggregating Rs, 1200 Crores (PY: Rs, 1200 Crores) to three companies covered in the register maintained under section 189 of the Companies Act, 2013 and the balance outstanding in respect of these unsecured loans is Nil as at 31st March 2018.(PY:INR 1200 Crores):-

(a) In our opinion, the rate of interest and other terms and conditions on which the loans had been granted to companies listed in the register maintained under Section 189 of the Act, were prima facie, not prejudicial to the interest of the Company;

(b) The loan has been repaid during the year and as informed to us, there was no specific stipulation of schedule of repayment of principal and payment of interest thereon.

(c) As informed to us, no amount of loan is overdue as at end of the year for a period more than ninety days.

(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.

(v) The company has not accepted any deposits, in terms of the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under.

(vi) The maintenance of cost records has been prescribed by the Central Government under Section 148(1) of the Companies Act, 2013 in respect of Mining activities of the Company. We have broadly reviewed the records and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made any detailed examination of the records with a view to determine whether they are accurate or complete

(vii) (a) According to the information and explanations given to us and on the basis of our examination of books of accounts, the

Company has generally been regular in depositing the undisputed statutory dues including provident fund, income tax, sales tax, wealth Tax, duty of customs, duty of excise, value added tax, goods and services tax, cess and any other statutory dues with the appropriate authorities. As informed to us, employee''s state insurance is not applicable to the company.

According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, wealth tax, duty of customs, duty of excise, service tax, value added tax, goods and services tax, cess and other material statutory dues were in arrears as at 31st March 2018 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and as per the records of the Company examined by us, following dues of income tax and central excise were in arrears as at 31st March 2018 :-

(Rs, in crore)

Name of the Statute

Nature of Dues

Gross Amount Under dispute

Period to which the amount relates (FY)

Forum where the dispute is pending

Amount deposited under protest

Amount

not

deposited

Income Tax Act

Income Tax

55.20

2010-2011

ITAT

20.00

35.20

64.90

2011-2012

ITAT

53.00

11.90

80.00

2006-2007

ITAT

20.00

60.00

110.15

2005-2006

ITAT

54.32

55.83

84.78

2012-2013

CIT (Appeal)

0.00

84.78

115.04

2013-2014

CIT (Appeal)

0.00

115.04

Total

510.07

147.32

362.75

Central Excise Act,1944

Central Excise

2.22

2010-11 to 2014-15

CESTAT

0.17

2.05

(viii) The Company does not have any loans or borrowings from any financial institution, banks, Government or debenture holders during the year as such paragraph 3(viii) of the Order is not applicable to the Company.

(ix) According to the information and explanations given to us, the Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under paragraph 3 (ix) of the Order is not applicable to the Company.

(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.

(xi) As per notification no. GSR 463(E) dated 5 June 2015 issued by the Ministry of Corporate Affairs, Government of India, Section 197 is not applicable to the Government Company. Accordingly paragraph 3 (xi) of the Order is not applicable to the Company.

(xii) According to the information and explanations given to us, the Company is not a Nidhi Company as such paragraph 3(xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on our examination of the records of the company, transactions with the related parties are in compliance with Section 177 and Section 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.

(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under paragraph 3 (xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its Directors or persons connected to its directors and hence provisions of Section 192 of the Companies Act, 2013 are not applicable to the Company.

(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

Sl.

No.

Details/ Directions

Auditors'' Reply

Action Taken and Impact on Accounts & Financial Statements

1.

Whether the company has clear title/lease deeds for freehold and leasehold land respectively? If not, please state the area of freehold and leasehold land for which title/lease deeds are not available?

According to the information and explanations given to us and on the basis of our examination of the records of the Company, title deeds, lease deeds and/or other evidences of title of freehold land amounting INR 12.15 Crores and for leasehold land amounting INR 0.92 Crores have been verified by us and the same are held in the name of the Company. At NEC, 946.51 hectares of freehold land and 4489.82 hectares of leasehold land were acquired by the company or came in the possession of the company on Nationalization, for which ''nil'' value is recorded in the books of accounts. Out of the above, title deeds and other evidences of title for freehold land are available except for 4.23 hectares and incase of leasehold land, documents for title in some cases either not available or could not be properly identified to the concerned leasehold land

Financial impact cannot be ascertainable.

2.

Whether there are any cases of waiver/ write-off of debts/ loans/ interest etc., if yes, the reasons there for and the amount involved.

There are no cases of waiver/ write-off of debts / loans / interest etc. during the financial year 17-18.

No impact on the Financial statements.

3.

Whether proper records are maintained for inventories lying with third parties & assets received as gift/grant(s) from the Government or other authorities.

As stated by the management, no inventories are lying with third parties. Further no assets were received as gift/grant(s) from the Government or other authorities

No impact on the Financial statements.

Additional -Directions:- Part-II

Sl.

No.

Details/ Directions

Auditors'' Reply

Action Taken and Impact on Accounts & Financial Statements

1.

Whether coal stock measurement was done keeping in view the contour map. Whether physical stock measurement reports are accompanied by contour map i n all cases? Whether approval of the competent authority was obtained for new heap, if any, created during the year?

The stock measurement was done keeping the view the contour map and the same is available with the reports of stock measurement. The new heap has been created with approval of competent authority.

There is no impact on the financial statements.

2.

Whether the company conducted the physical verification exercise of asset and properties at the time of merger/split/restructure of an area. If so, whether the concerned subsidiary followed the requisite procedure?

As per the information and explanations given to us by the company''s management, there is no such merger/split/ restructure of an area during the year.

There is no impact on the accounts and financial statements.

3.

Whether separate Escrow Accounts for each mine has been maintained in CIL and its Subsidiary companies. Also examine the utilization of the fund of the account.

Yes, separate escrow account for each mine of NEC the production unit of CIL, has been maintained. No such fund as explained by the management has been withdrawn during the year.

There is no impact on the financial statements.

4.

Whether impact of penalty for illegal mining as imposed by the Hon''ble supreme court has been duly considered and accounted for?

According to the information and explanations given to us, no penalty for illegal mining has imposed by the Hon''ble supreme court during the year on the company.

There is no impact on the Financial statements.

5.

If the audittee has computerized its operation or any part of it, you should assess and report, how much of the data in the company is in electronic format. Which of the major areas such as Financial accounting, Sales accounting, Personal information, Pay-roll Materials, Inventory Management etc. have been computerized, and its impact on your work in auditing the accounts.

Financial accounting, Sales accounting, personal information, pay-roll, materials, inventory management have been computerized and day to day transactions data are kept in electronic form, which have facilitated better audit environment. At the year-end hard copies of certain required documents are kept in physical form.

However uniform and comprehensive ERP system needs to be introduced to integrate all offices and units of the company for better management & controls.

No impact on the

Financial

statements.

We have audited the internal financial controls over financial reporting of Coal India Limited (hereinafter referred to as ''the Company'') as of 31st March 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date. Management''s Responsibility for Internal Financial Controls

The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013. Auditors'' Responsibility

Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

According to the information and explanations given to us and based on our audit, in our opinion, the Company has generally maintained, in all material respects, an adequate internal financial controls over financial reporting and such internal financial controls over financial reporting were generally operating effectively as of 31st March 2018 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal controls stated in the "Guidance Note on Audit of Internal Financial Controls over Financial Reporting" issued by the Institute of Chartered Accountants of India. However certain areas need further improvement in designing the "Documentation on Internal Financial Controls" of the Company by way of identifying the significant account balances of expenses, income, assets & liabilities including the fixed assets accounting, incorporating the process flow by which the aforesaid transactions are initiated, authorized, processed, recorded, and reported at departmental level. How the system is integrated to departments to capture the transactions that relates to the financial statements and events/conditions and other transactions that are significant to the financial statements so as to fulfill objectives of control criteria established by the Company. Financial reporting process can be further improved by way of introducing integrated ERP system of accounting especially in case of compilation of information and data for financial reporting process and for better internal controls. Internal audit is concurrently done in the company. Regularity of Internal audit, its reports and follow-up action thereon should be timely ensured.

However, our opinion is not qualified in the above respect.

For CHATURVEDI & CO.

Chartered Accountants

Firm Regn. No.302137E

Sd/-

S.C.Chaturvedi

Partner

Mem.No.012705

Place: Kolkata

Dated: July 6, 2018


Mar 31, 2017

We have audited the accompanying standalone Ind AS financial statements of Coal India Limited (hereinafter referred to as ‘the Company’), which comprise the balance sheet as at 31st March 2017, the statement of profit and loss including other comprehensive income, the statement of cash flows and the statement of changes in equity for the year then ended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Ind AS Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with relevant rules issued thereunder. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the financial position of the Company as at 31st March 2017, and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Emphasis of Matters

We draw attention to the following notes:-

a) Note No.3 (1-Land) refers to title deeds/lease deeds and documentary evidences of freehold land amounting Rs.11.92 Crores and for leasehold land amounting Rs.0.92 Crores have been verified by us and the same are held in the name of the Company. Title deeds/lease deeds and other evidences of title for freehold land for Rs.0.13 Crores are not available for our verification. Further as per the details made available to us, title deeds/lease deeds or other evidences of title for freehold land measuring 1072.97 hectares and leasehold land measuring 5558.23 hectares, for which no value is recorded in the books of accounts, are not available for our verification;

b) Note No.7 refers to an aggregate Investment of Rs.9688.42 Crores (PY: Rs.9433.69 Crores) in its two fully owned subsidiary companies which is for long term and strategic in nature. As these subsidiary companies are turning around, the management has not considered any provision under the changing circumstances against the erosion of Rs.3169.85 Crores (PY: Rs.3042.14 Crores) in the value of Investment.

c) Certain balances of loans, other financial assets, trade receivables, other current & non-current assets, Trade payables, other financial liabilities and other current liabilities have not been confirmed. Consequential impact on confirmation/ reconciliation/adjustment of such balances (which will not be material as per management), if any is not ascertainable;

d) Required number of Independent Director was not appointed in the Board of the Company as per the provisions of Section 149(1) of the Companies Act, 2013 during the year. However the Company meet the number of required Independent Directors as at the date of financial statements;

e) Note No.38(5) (a) Contingent Liability of the accompanying standalone Ind AS financial statements, which describes the uncertainty related to the outcome of the lawsuits filed and demands raised against the Company by various parties and Government authorities.

Our opinion is not qualified in respect of above matters.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor’s Report) Order, 2016 (“the Order’) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the “Annexure-A”, a statement on the matters specified in the paragraph 3 and 4 of the said order.

2) As required under Section 143(5) of the Companies Act, 2013, we give in the “Annexure-B”, a Statement on the Directions issued by the Comptroller and Auditor General of India after complying with the suggested methodology of audit, the action taken thereon and its impact on the accounts and financial statements of the company.

3) As required by Section 143 (3) of the Act, we report that:

a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit read with as reported in clause (a) and (c) of the “Emphasis of Matters” paragraph above.

b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

c) the balance sheet, the statement of profit and loss, the statement of cash flows and the statement of changes in equity dealt with by this Report are in agreement with the books of account.

d) in our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with relevant rule issued thereunder.

e) in pursuance to the Notification No. G.S.R 463(E) dated 05-06-2015 issued by the Ministry of Corporate affairs, Section 164(2) of the Companies Act, 2013 pertaining to disqualification of Directors, is not applicable to the Government Company.

f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our report in “Annexure -C” and

g) with respect to the other matters to be included in the Auditors’ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. the Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - [Refer Note No.38(5)(a) to the standalone Ind AS financial statements];

ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseable losses;

iii. there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

iv. the Company has provided requisite disclosures in its standalone Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8 November, 2016 to 30 December, 2016 and these are in accordance with the books of accounts maintained by the Company.-[Refer Note No.14 to the standalone Ind AS financial statements]

“Annexure-A” to the Independent Auditors’ Report

(Referred to in Paragraph 1 of “Other Legal and Regulatory requirements” of our Audit Report)

(i) In respect of Fixed Assets:

(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets except for assets at Regional sales offices. Further certain details as regards to purchase orders reference, date of commissioning, location, identification and codifications etc. of some movable tangible assets needs to be updated. Location details and area of freehold and leasehold land also needs to be updated in the fixed asset register and need to be reconciled with the revenue records maintained by the local authority.

(b) The fixed assets located at Head quarter, North Eastern Coalfields, various Regional sales offices and other offices have been physically verified periodically as certified by the management. Pending for reconciliation and adjustment in the books of accounts, discrepancies noticed on such verification were not material as per the management. The process should be further improved by having well defined programme of physical verification to cover all the assets in phased manner.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, title deeds, lease deeds and/or other evidences of title of freehold land amounting Rs.11.92 Crores and for leasehold land amounting Rs.0.92 Crores have been verified by us and the same are held in the name of the Company. Title deeds for freehold land for Rs.0.13 Crores are not available for our verification. Further, as per the details made available to us, title deeds/lease deeds or other evidences of title for freehold land measuring 1072.97 hectares and leasehold land measuring 5558.23 hectares, for which no value is recorded in the books of accounts, are not available for our verification.

(ii) In respect of Inventories:

(a) The physical verification of inventories at North Eastern Coalfields, the production unit of the Company has been conducted at reasonable intervals during the year by the management.

(b) The inventories have been measured on the basis of volumetric system.

(c) In our opinion, the procedures and frequency of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.

(iii) According to the information and explanation given to us, the Company has granted unsecured loan aggregating of Rs.1200.00 Crores (PY:Nil) to three bodies corporate (Fully owned subsidiary companies) covered in the register maintained under section 189 of the Companies Act, 2013 and balance outstanding in respect of these unsecured loans is Rs.1200.00 Crores as at 31st March 2017.(PY:Nil)

(a) In our opinion, the rate of interest and other terms and conditions on which the loans had been granted to the bodies corporate listed in the register maintained under Section 189 of the Act, were prima facie, not prejudicial to the interest of the Company.

(b) In the case of the loans granted to the bodies corporate listed in the register maintained under Section 189 of the Act, there is no stipulation of schedule of repayment of principal and payment of interest thereon hence unable to make specific comment on the regularity of repayment of principal & payment of interest, in such cases.

(c) According to the information and explanations given to us, in respect of the said loans, there is no demand raised during the year as such no overdue amounts as at the end of the year.

(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.

(v) The Company has not accepted any deposits from the public.

(vi) The maintenance of Cost records has been prescribed by the Central Government under section 148(1) of the Companies Act, 2013 in respect of Mining activities of the Company. We have broadly reviewed the records and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made any detailed examination of the records.

(vii) (a) According to the information and explanations given to us and on the basis of our examination of books of accounts, the Company is generally regular in depositing the undisputed statutory dues including provident fund, income tax, sale tax, wealth Tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities except few cases of delays noticed in deposit of service tax, provident fund and additional MMDR Royalty State Fund. As informed to us, Employee’s state insurance is not applicable to the company.

According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, wealth tax, duty of customs, duty of excise, service tax, value added tax, cess and other material statutory dues were in arrears as at 31st March 2017, for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, and as per the records of the Company examined by us, there are no dues of sale tax, value added tax, duty of customs, duty of excise, cess and other statutory dues were in arrears as at 31st March 2017, which have not been deposited on account of any dispute. However, according to the information and explanations given to us, the following are the dues of income tax which of Rs.147.32 Crores have been deposited as “Demand under Protest’ and liability of Rs.161.46 Crores have been provided for in the books of accounts.

Name of the Statute

Nature of Dues

Amount (In Crores)

Period to which the amount relates (FY)

Forum where the dispute is pending

Income Tax Act

Income Tax

55.20

2010-2011

CIT(Appeals)

64.90

2011-2012

CIT(Appeals)

80.00

2007-2008

ITAT

110.15

2005-2006

ITAT

Total

310.25

(viii)The Company does not have any loans or borrowings from any financial institution, banks, Government or debenture holders during the year as such paragraph 3(viii) of the Order is not applicable.

(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year.

(x) According to the information and explanations given to us, no material fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.

(xi) Section 197 of the Act regarding managerial remuneration is not applicable to the Company by virtue of Notification No. G.S.R 463(E) dated 05-06-2015 issued by the Ministry of Corporate affairs, Govt. of India.

(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company as such paragraph 3(xii) of the Order is not applicable.

(xiii)According to the information and explanations given to us and based on our examination of the records of the company, transactions with the related parties are in compliance with sections 177 and Section 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.

(xiv)According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with them as such paragraph 3(xv) of the Order is not applicable.

(xvi)The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For CHATURVEDI & CO.

Chartered Accountants

Firm Regn. No.302137E

S.C.Chaturvedi

Partner

Mem.No.012705

Place: Kolkata

Dated: May 29, 2017


Mar 31, 2016

We have audited the accompanying standalone financial statements of Coal India Limited (hereinafter referred to as ''the Company''), which comprise the balance sheet as at 31 March 2016, the statement of profit and loss and the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2016 and its profit and its cash flows for the year ended on that date.

Emphasis of Matters

We draw attention to the following notes:- a) Note 10A (Para-1) which refers to title deeds for freehold land amounting Rs.6.38 Crores and for leasehold land amounting Rs.1.34 Crores have been verified by us and the same are held in the name of the company. Title deeds for freehold land for Rs.5.43 Crores are not available for our verification. Further, as per the details made available to us, title deeds for freehold land measuring 1072.97 hectares and leasehold land measuring 5558.23 hectares, for which no value is recorded in the books of accounts, are not available.

b) Note 10A (Para-2) regarding non-provision for impairment against fixed assets written down value of which is Rs.11.76 Crores of Dankuni Coal Complex let out to South Eastern Coalfields Limited (SECL) for nominal lease rent of Re.1per annum under cancellable operating lease agreement. In the opinion of the management, the actual worth of the assets including land is much higher than the book value and hence no provision is called for.

c) Note No.11 dealing with an aggregate investment of Rs. 8926.42 Crores in its 100% subsidiary companies namely Bharat Coking Coal Limited (BCCL) and Eastern Coalfields Limited (ECL) have come out of Board for Industrial & Financial Reconstruction (BIFR). These subsidiaries are turning around and have started earning profits. In the view of changing circumstances, the management is of the opinion that no provisioning is required against the erosion of Rs.2614.85 Crores (PY: 4243.30 Crores) in the value of Investment as the same is of temporary nature.

d) Note 34(1) (c) Contingent Liability of the accompanying financial statements, which describes the uncertainty related to the outcome of the lawsuits filed and demands raised against the Company by various parties and Government authorities.

e) Pending write off action of certain old account balances against which full provision has been made in the books of accounts.

f) Balances under Long-term loans and advances of Rs.157.04 Crores, Short-term loans and advances Rs.0.39 Crores, Trade receivables of Rs.0.39Crores, Trade payables of Rs.1.51 Croresand Other current liabilities of Rs.207.48 Crores, have not been confirmed. Consequential impact on confirmation/ reconciliation/adjustment of such balances (which will not be material as per management), if any is not ascertainable.

g) Required number of Independent Directors has not been appointed in the Board of the Company as per the provisions of Section 149(1) of the Companies Act, 2013.

Our opinion is not qualified in respect of above matters.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the "Annexure-A", a statement on the matters specified in the paragraph 3 and 4 of the said order.

2) As required under Section 143(5) of the Companies Act, 2013, we give in the "Annexure-B", a Statement on the Directions issued by the Comptroller and Auditor General of India after complying the suggested methodology of audit, the action taken thereon and its impact on the accounts and financial statements of the company.

3) As required by Section 143 (3) of the Act, we report that:

a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

c) the balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account.

d) in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) in pursuance to the Notification No. G.S.R 463(E) dated 05-06-2015 issued by the Ministry of Corporate affairs, Section 164(2) of the Companies Act, 2013 pertaining to disqualification of Directors, is not applicable to the Government Company.

f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our report in "Annexure C" and

g) with respect to the other matters to be included in the Auditors'' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. the Company has disclosed the impact of pending litigations on its financial position in its financial statements – Refer Note 34(1)(c ) to the standalone financial statements;

ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseable losses;

iii. therewere no amounts which were required to be transferred, to the Investor Education and Protection Fund by the Company.

"ANNEXURE-A"TO THE INDEPENDENT AUDITOR''S REPORT

(Referred to in Paragraph 1 of "Other Legal and Regulatory requirements" of our Audit Report)

(i) In respect of Fixed Assets:

(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets except for assets at Regional sales offices. Further certain details as regards to purchase orders reference, date of commissioning, location, identification and codifications etc. of some movable tangible assets needs to be updated. Location details and area of freehold and leasehold land also needs to be updated in the fixed asset register and need to be reconciled with the revenue records maintained by the local authority.

(b) The fixed assets located at Head quarter, North Eastern Coalfields, various Regional sales offices and other offices have been physically verified periodically as certified by the management. Discrepancies noticed on such verification were not material as per the management, pending for reconciliation and adjustment in the books of accounts. The process should be further improved by having well defined programme of physical verification to cover all the assets in phased manner.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, title deeds for freehold land amounting Rs.6.38 Crores and for leasehold land amounting Rs.1.34 Crores have been verified by us and the same are held in the name of the Company. Title deeds for freehold land for Rs.5.43 Crores are not available for our verification. Further, as per the details made available to us, title deeds for freehold land measuring 1072.97 hectares and leasehold land measuring 5558.23 hectares, for which no value is recorded in the books of accounts, are not available.

(ii) In respect of Inventories:

(a) The physical verification of inventories at North Eastern Coalfields has been conducted at reasonable intervals during the year by the management.

(b) The inventories have been measured on the basis of volumetric system.

(c) In our opinion, the procedures and frequency of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.

(iii) According to the information and explanation given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013 as such paragraph 3(iii) of the Order is not applicable.

(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.

(v) The Company has not accepted any deposits from the public.

(vi) The maintenance of Cost records has been prescribed by the Central Government under section 148(1) of the Companies Act, 2013 in respect of Mining activities of the Company. We have broadly reviewed the records and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made any detailed examination of the records.

(vii) (a) According to the information and explanations given to us and on the basis of our examination of books of accounts, the Company is generally regular in depositing the undisputed statutory dues including provident fund, income tax, sale tax, wealth Tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities except few cases of delay noticed in deposit of service tax. As informed to us, Employee''s state insurance is not applicable to the company.

According to the information and explanations given to us, except dues of additional royalty of Rs.28,51,836/-as on March 31,2016 which have not been deposited for reason stated in Note- 34(17) of the accompanying financial statements , no other undisputed amounts payable in respect of provident fund, income tax, sales tax, wealth tax, duty of customs, duty of excise, service tax, value added tax, cess and other material statutory dues were in arrears as at 31 March 2016, for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, and as per the records of the Company examined by us, there are no dues of income tax, duty of customs, duty of excise, cess and other statutory dues except following sales tax, which have not been deposited on account of any dispute are as under:

Name of the statute Nature of Amount Period to which dues (in Rs.) the amount relates

Provincial Sales Tax Act Sales Tax 3,86,234.13 FY:1989-90

Provincial Sales Tax Act Sales Tax 1,79,762.00 FY:1990-91

Provincial Sales Tax Act Sales Tax 48,441.00 FY:1990-91

Provincial Sales Tax Act Sales Tax 2,75,819.00 FY:1991-92

Provincial Sales Tax Act Trade Tax 9040.00 FY:1993-94

Name of the Statute Forum where dispute is pending

Provincial Sales Tax Act Assessing officer

Provincial Sales Tax Act Additional Commissioner (Appeals)-3

Provincial Sales Tax Act Additional Commissioner (Appeals)-3

Provincial Sales Tax Act Additional Commissioner (Appeals)-3

Provincial Sales Tax Act Assessing officer

(viii) The Company does not have any loans or borrowings from any financial institution, banks, government or debenture holders during the year as such paragraph 3(viii) of the Order is not applicable.

(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year.

(x) According to the information and explanations given to us, no material fraud by the Company or on the company by its officers or employees has been noticed or reported during the course of our audit.

(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi Company as such paragraph 3(xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on our examination of the records of the company, transactions with the related parties are in compliance with sections 177 and Section 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with them as such paragraph 3(xv) of the Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For CHATURVEDI & CO.

Chartered Accountants

Firm Regn. No.302137E

S.C.Chaturvedi

Partner

Mem.No.012705

Place:Kolkata

Dated:May 28, 2016


Mar 31, 2015

We have audited the accompanying standalone financial statements of Coal India Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information. These financial statements include figures in respect of Head Quarter (HQ) Kolkata, North Eastern Coalfields (NEC) and GM's office at New Delhi and Marketing office, Kolkata.

2. Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

3. Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and

auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial control system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2015, and its profit and its cash flows for the year ended on that date.

Emphasis of Matters

We draw attention to the following notes:-

(a) Note No. 10A (2) regarding non-provision against fixed assets in Dankuni Coal Complex leased to South Eastern Coalfields Limited (SECL) for lease rent of Re.1 per annum. In opinion of the management the nominal income earning is a temporary policy matter and actual worth of the assets including land is much higher than the book value and hence no provision is called for.

This is a statement of fact referring to the notes on accounts no 10A (2) only.

As mentioned by the Audit, referring to the relevant note, the recoverable value (actual worth), of the assets of Dankuni Coal Complex (given on operating lease to SECL, a 100% subsidiary of CIL on a nominal rent) is considered much higher than its WDV. Hence no provision as per AS-28 (Accounting Standard on Impairment) or otherwise is required.

(b) Note No. 11 and 18, dealing with an aggregate investments of Rs. 8926.42 Crores and loans & advances of Rs. 578.55 Crores (Current Account Debit Balances) in its 100%subsidiaries namely, Bharat Coking Coal Limited (BCCL) and Eastern Coalfields Limited (ECL) have come out of Board for Industrial & Financial Reconstruction (BIFR). These subsidiaries are turning around and have started earning profits. In the view of changing circumstances, the management is of the opinion that no writing down or provisioning is required against the erosion in the value of assets.

This is a statement of fact referring to the notes on accounts only .

Eastern Coalfields Limited (ECL) & Bharat Coking Coal Limited (BCCL) are 100% subsidiary of Coal India Limited. BCCL had come out of BIFR during FY 2012-13. ECL has also come out of BIFR from Jan 2015. Both the companies are earning profits consistently from last few years. Hence, the diminution in value of investment is not considered as permanent in nature and therefore following the provisions of AS 13 (accounting Standard on Investments), no writing down or provision is required. Current account debit balances under "loans & advances" are also on the same analogy considered to be recoverable and hence no provision is required.

(c) Note 34(i) (c) & (d), Contingent Liability of the accompanying financial statements, which describes the uncertainty related to the outcome of the lawsuits filed and demands raised against the Company by various parties and Government authorities;

This being a statement of fact calls for no comments separately.

(d) Note 34(xvii), regarding non consideration of effects of The Mines and Minerals (Development and Regulations) Amendment Act,2015 in the books of accounts as on March 31,2015 in absence of notification of rules by the Central or State government under the said act.

This is a statement of fact referring to the notes on accounts no 34(xvii) only.

As mentioned by the Audit, referring to the relevant note, the effects of The Mines and Minerals (Development and Regulations) Amendment Act,2015 have not been considered in the books of accounts as the rules have not been notified yet by the Central or State government under the said act.

(e) Pending write off action of certain account balances against which full provision has been made in the books of accounts;

Noted, action is being taken to initiate write off.

(f) Balances under Long Term Loans and advances of Rs. 134.78 Crores, Trade Receivables of Rs. 9.76 Crores, Other Current assets of Rs. 199.82 Crores, Trade Payables of Rs. 2.28 Crores and Other Current Liabilities of Rs. 235.14 Crores, have not been confirmed. Consequential impact on confirmation/ reconciliation of such balances, if any is not ascertainable.

Trade receivables are periodically reconciled on regular basis. In respect of trade payables & other current Liabilities, system for obtaining confirmation is there, although in most of the cases response from the creditors are not received. However, efforts will be taken to increase the coverage area.

(g) The Independent Directors have not been appointed in the Board of the Company as per the provisions of Section 149(1) of the Companies Act, 2013.

The matter has been taken up with Ministry of Coal, Govt. of India which is the appointing authority of Independent Directors .

Our opinion is not qualified in respect of above matters.

Report on Other Legal and Regulatory Requirements

1. As required under Section 143(5) of the Companies Act, 2013, we give in the Annexure I, a Statement on the Directions issued by the Comptroller and Auditor General of India after complying the Suggested methodology of Audit, the action taken thereon and its impact on the accounts and financial statements of the company.

2. As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure II, a statement on the matters specified in paragraphs 3 and 4 of the Order.

3. As required by Section 143 (3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

(b) In our opinion, proper books of account as required by law have been kept by the company so far as it appears from our examination of those books.

(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

(e) On the basis of written representations received from the directors as on March 31,2015, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2015 from being appointed as director under sub- section (2) of Section 164 of the Companies Act.

(f) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements.[Refer Note No.34(i)(c )&(d)]

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

ANNEXURE II TO THE AUDITORS' REPORT (Referred to in Paragraph 2 of "Other Legal and Regulatory requirements" of our Audit Report)

i) In respect of Fixed Assets:

a) The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets. However certain details as regards to purchase orders reference, date of commissioning and location, identification and codifications of fixed assets are absent in some cases.

These are related to old items of fixed assets which are fully depreciated.

b) The Fixed assets located at Head quarter, North Eastern Coalfields, the production unit of the Company and offices at New Delhi and Kolkata Marketing office have been physically verified substantially by the management periodically. Discrepancies noticed on such verification were not material are pending for reconciliation and adjustment in the accounts.

This being a statement of fact calls for no comments separately. Necessary adjustments for discrepancies, if required after reconciliation, will be made in the accounts.

ii) In respect of Inventories:

a) The Physical verification of inventories at North Eastern Coalfields has been conducted at reasonable intervals during the year by the management.

The inventories have been measured on the basis of volumetric system.

This being a statement of fact calls for no comments separately.

b) In our opinion, the procedures and frequency of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.

This being a statement of fact calls for no comments separately.

c) On the basis of our examination of inventory records, in our opinion, the Company is maintaining proper records of its inventories and no material discrepancies were noticed on physical verification.

This being a statement of fact calls for no comments separately.

iii) According to the information and explanation given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Hence provisions to Para 3 (iii)(a) and (b) of the said order are not applicable.

This being a statement of fact calls for no comments separately.

iv) In our opinion and according to the information and explanations given to us, there are in general, adequate internal control systems commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness in internal control has been noticed except in the following cases where the Internal control mechanism needs to be further strengthened:-

a) Identification and Codification of fixed assets with respect to their current locations at different units

b) The control over maintenance of records related to payment of salary and wages at certain units;

c) Non receipt of confirmations of outstanding balances from customers, suppliers and contractors and reconciliation of balances in case of difference if any;

Noted, action is being taken to further strengthen the same.

Noted, action is being taken to further strengthen the same.

Noted, action is being taken to further strengthen the same.

v) According to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of directives issued by the Reserve Bank of India and provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under.

vi) The maintenance of Cost records has been prescribed by the Central Government under section 148(1) of the Companies Act, 2013 in respect of Mining activities of the Company. We have broadly reviewed the records and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made any detailed examination of the records.

This being a statement of fact calls for no comments separately.

vii) (a) According to the information and explanations given to us and on the basis of our examination of the books of accounts, the Company is regular in depositing the undisputed statutory dues including Provident fund, Income Tax, Sale tax, Wealth Tax, Service Tax, Duty of customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities. There were no un-disputed statutory dues as at the end of the year concerned outstanding for a period of more than six months from the date they became payable. As informed to us, Employee State Insurance is not applicable to the Company.

This being a statement of fact calls for no comments separately.

(b) According to the information and explanations given to us, and as per the records of the Company examined by us, there are no dues of income tax, Duty of customs, Duty of excise, Cess and other statutory dues except following sales tax, which have not been deposited on account of any dispute are as under:-

These cases are very old and pending before assessing officer /sales tax departmental appellate authority. Pending verdict of these appeal cases, no deposit has been made. However, these have been disclosed as contingent liability.

Sl. Name of the Statute Nature of Amount No. dues (In) Rs.

1 Provincial Sales Tax Act Sales Tax 3,86,234.13

2 Provincial Sales Tax Act Sales Tax 1,79,762.00

3 Provincial Sales Tax Act Sales Tax 48,441.00

4 Provincial Sales Tax Act Sales Tax 2,75,819.00

5 Provincial Sales Tax Act Trade Tax 9040.00



Name of the Statute Period to Forum where which the pending amount relates

Provincial Sales Tax Act FY:1989-90 Assessing officer

Provincial Sales Tax Act FY:1990-91 Additional Commissioner (Appeals)-3

Provincial Sales Tax Act FY:1990-91 Additional Commissioner (Appeals)-3

Provincial Sales Tax Act FY:1991-92 Additional Commissioner (Appeals)-3

Provincial Sales Tax Act FY:1993-94 Assessing officer

1(c) According to the information and explanations given to us, there is no amount required to be transferred to investor education and protection fund in accordance with the relevant provisions of the CompaniesAct,1956(1 of 1956) and rules made there under during the year.

This being a statement of fact calls for no comments separately.

viii) The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the current financial year as well as in the immediately preceding financial year.

This being a statement of fact calls for no comments separately.

ix) In our opinion and according to the information and explanations given to us, the Company has not taken any term loan from any financial institutions or banks or debenture holders.

x) In our opinion and according to the information and explanations given to us, the terms and conditions on which the company has given guarantees for loans taken by its subsidiaries from banks and financial institutions are not prima-facie prejudicial to the interest of the Company.

This being a statement of fact calls for no comments separately.

xi) As per the information and explanations given to us by the management and on the basis of the examination of the records, the Company has not taken any term loan during the year.

This being a statement of fact calls for no comments separately.

xii) To the best of our knowledge and belief and according to the information and explanations given to us, no frauds on or by the Company has been noticed by us during the year. However, according to the information and explanation given to us, a case of misappropriation of Company's fund for personal gain had come to the notice of the management in earlier years, which is still under investigation by different agencies; the impact of such misappropriation cannot be ascertained at this stage.

As stated by the Audit, the matter is under investigation by different agencies.

For CHATURVEDI & CO.

Chartered Accountants Firm Regn. No.302137E S.C.Chaturvedi

Partner

Mem.No.012705

Date : 28th May, 2015 Place : Kolkata


Mar 31, 2014

We have audited the accompanying financial statements of COAL INDIA LIMITED, which comprise the Balance Sheet as at 31st March, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the Year then ended, and a summary of significant accounting policies and other explanatory information. These financial statements include figures in respect of Head Quarter (HQ), Kolkata, North Eastern Coalfields (NEC) GM''s Office at New Delhi and Marketing Division.

2. Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash fl ows of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956 ("the Act") read with the General circular15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

3. Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected, depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial statements, read together with Significant Accounting Policies and Additional Notes to Accounts as referred in Note 33 and 34 respectively give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) In the case of Balance Sheet, the state of affairs of the Company as at 31st March, 2014;

b) In the case of Statement of Profit and Loss Account, the profit/ loss for the year ended on that date; and

c) In the case of Cash Flow Statement, the cash fl ows for the year ended on that date.

Emphasis of Matter

Without qualifying our opinion, we draw your attention to:

a) Notes No.11 (1), 12(2) and 18 dealing with investments in and loans & advances (Short term / Long term, Current Account debit balances) to sick subsidiary of the company, that is, Eastern Coalfields Limited (ECL) which is under the Board of Industrial & Financial Reconstruction (BIFR). Revival plans have been approved by BIFR and vetted by the concerned ministry. On implementation of revival schemes the subsidiary is turning around and has started earning profits. In view of the changing circumstances, the management is of the opinion that no writing down or provisioning is required.

This is a statement of fact referring to the notes on accounts only.

Eastern Coalfields Ltd is a 100% subsidiary of Coal India Limited. The revival scheme of BIFR is under implementation and ECL is earning substantial profit since 2009-10, by which its negative net worth is getting reduced. Hence, the diminution in value of investment is not considered as permanent in nature and therefore following the provisions of AS 13 ( Accounting Standard on Investments ), no writing down or provisions is required. The Loans & Advances and Current Account debit balances etc are also on the same analogy considered to be recoverable and hence no provision is required.

b) Not e No. 10A(2) regarding non-provision against fixed assets in Dankuni Coal Complex leased to South Eastern Coalfields Limited (SECL) for lease rent of Re.1 per annum. In the opinion of the management the nominal income earning is a temporary policy matter and actual worth of the assets including land is much higher than the book value and as such no provision is called for.

This is a statement of fact referring to the notes on accounts no 10A (2) only.

As mentioned by the Audit, referring to the relevant Note, the recoverable value (actual worth), of the assets of Dankuni Coal Complex (given on operating lease to SECL, a 100% subsidiary of CIL on a nominal rent) is considered much higher than its WDV. Hence no provision as per AS-28 (Accounting Standard on Impairment) or otherwise is required.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 (''the Order'') issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by Section 227(3) of the Act, we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

b. In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.

c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d. In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards notified under the Companies Act, 1956 read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

e. In terms of Notification No. GSR 829(E) Dated 21st October, 2003, of the Government of India, Department of Company Affairs, Government Companies are exempted from the applicability of provisions of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

f. Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act, 1956, nor had it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

Annexure to the Auditors'' Report (Referred to in paragraph 1 of our report on Other Legal and Regulatory Requirements of even date to the members of Coal India Limited on the financial statements ended on 31st March, 2014)

On the basis of checks carried out during the course of audit and as per information and explanations furnished to us and to the best of our knowledge and belief we report that:

i. (a) The company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets. However, certain details as regards purchase order reference; date of commissioning and locations; identification marks are absent in some cases of old items.

Few old items of fixed assets mentioned by the audit are fully depreciated

(b) The Fixed Assets located at Head Quarter, North eastern Coalfields, the production unit of the company and GM''s office at New Delhi, have been physically verified by the management periodically in a phased manner. In respect of assets physically verified discrepancies noticed were not material and have been properly dealt with in the books of account.

This being a statement of fact calls for no comments separately.

(c) No substantial part of fixed assets has been disposed of during the year.

This being a statement of fact calls for no comments separately.

ii. (a) Physical verification of inventory at North Eastern Coalfields has been conducted at reasonable intervals during the year by the management. However, identification of obsolete items of stores & spares were not carried out during the year.

Efforts for identification of obsolete items of stores & spares, if any, as mentioned by the Audit will be done in 2014-15.

However, inventory at stockyards of West Bengal Regional Sales Office has not been physically verified. The inventories being very old have been provided for.

The said Stockyards of West Bengal Regional Sales Office are not operative since long. The book stock is not significant and their value has been fully provided for since long.

The inventories have been measured on the basis of volumetric system.

(b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

This being a statement of fact calls for no comments separately.

(c) The Company has maintained proper records of inventory. No material discrepancies were noticed on physical verification.

This being a statement of fact calls for no comments separately.

iii. (a) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of The Companies Act, 1956. However, interest has been waived on loans and advances to its subsidiaries Bharat Coking Coal Limited (BCCL) and Eastern Coalfields limited (ECL). In other cases clauses 4(iii)(b) to 4(iii) (d) of the Order are not applicable.

These are 100% subsidiaries of CIL. ECL is sick and referred to BIFR. Out of certain loans to ECL and BCCL, interest on such loans to ECL were waived since 2003-04.

During the year, CIL Board approved to make such loans interest free upto 31st March, 2013 i.e. the date upto which BCCL was under BIFR.

Interest has been fully charged on such loans to BCCL for the year 2013-14.

(b) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956 except some surplus funds of the subsidiaries parked with this holding company where reasonable interest has been paid except for a part of such fund parked by Northern Coalfields Limited and Mahanadi Coalfields Limited, where no interest has been paid as these funds were transferred to Eastern Coalfields Limited and Bharat Coking Coal Limited for specific purposes as interest free advance. In our opinion, on the basis of explanations provided to us, the terms and conditions of these advances are not prejudicial to the interest of the Company.

BCCL has returned the non-interest bearing fund by 31.12.2013,thereafter such surplus fund parked by NCL and MCL to the extent returned by BCCL were made interest bearing.

iv. There is, in general, an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit no major weakness in internal control has been noticed except the following:

(a) The control over activities within the processing of payroll and disbursement of salary and wages in some units needs to be strengthened.

Noted, action is being taken to further strengthen the same in 2014-15.

(b) The control over procurement of service related to travelling at New Delhi office needs to be strengthened.

Noted, action is being taken to further strengthen the same in 2014-15.

v. There are no contracts and arrangements as referred to in Section 301 of the Companies Act, 1956, particulars of which needs to be entered into a register maintained under section 301 of the said Act. Accordingly, clause 4 (v) (b) of the Order is not applicable.

This being a statement of fact calls for no comments separately.

vi. The Company has not accepted any deposits from the public within the meaning of the provisions of Section 58A and 58AA or any other relevant provision of the Companies Act, 1956 and rules made there-under.

This being a statement of fact calls for no comments separately.

vii. The Company has an Internal Audit system commensurate with the size and nature of its business, but it requires continuing improvement in respect of timeliness of reporting together with risk based analysis of the inadequacies. Further, no Information System Audit has been carried out.

Noted. Efforts will be taken to improve in the areas of inadequacies mentioned by the audit.

viii. The maintenance of cost records has been prescribed by the Central Government under Section 209 (1) (d) of the Companies Act, 1956 vide Notification dated 3rd June, 2011 in respect of mining activities of the company. We have checked the records and are prima facie of the opinion that the same are properly maintained.

This being a statement of fact calls for no comments separately.

ix. (a) The Company is regular in depositing undisputed statutory dues including Provident Fund, Investor''s Education and Protection Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues with the appropriate authorities. There were no undisputed arrears of statutory dues outstanding as on 31.03.2014 for a period of more than six months from the date they became payable.

This being a statement of fact calls for no comments separately.

(b) There are no dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty, Cess and Other Statutory dues which have not been deposited on account of any dispute except the following:

These cases are very old and pending before assessing Officer / Sales Tax Departmental Appellate Authority. Pending verdict of these appeal cases, no deposit has been made. However, these have been shown as contingent liability.

Period Forum where SL Name of the Nature of to which dispute is No Statute dues Amount Rs. relates pending

1. Provincial Sales Tax 3,86,243.13 F.Y. Assessing Sales Tax Act 1989-90 Officer

2 Provincial Sales Tax 1,79,762.00 F.Y. Additional Sales Tax Act 1990-91 Commissioner (Appeals)- 3

3 Provincial Sales Tax 48,441.00 F.Y Additional Sales Tax Act 1990-91 Commissioner (Appeals)- 3

4 Provincial Sales Tax 2,75,819.00 F.Y. Additional Sales Tax Act 1991-92 Commissioner (Appeals)- 3

5 Provincial Trade Tax 9,040.00 F.Y. Assessing Trade Tax Act. 1993-94 Officer

x. The Company does not have any accumulated losses at the end of financial year and has not incurred cash losses in the current financial year and in the immediately preceding financial year.

This being a statement of fact calls for no comments separately.

xi. The Company has not defaulted in repayment of dues to Financial Institutions or Banks.

This being a statement of fact calls for no comments separately.

xii. The Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

This being a statement of fact calls for no comments separately.

xiii. The Company is not a Chit Fund or a Nidhi / Mutual Benefit Fund / Society.

This being a statement of fact calls for no comments separately.

xiv. The Company is not in the business of dealing or trading in shares. The Company has investments in shares of its wholly owned subsidiaries, SPV Joint Venture and in Mutual Funds only and has maintained proper records of transactions and contracts in respect thereof and timely entries have been made therein. The company, in its own name, has held all these shares.

This being a statement of fact calls for no comments separately.

xv. The terms and conditions on which the Company has given guarantees for loans taken by its subsidiaries from banks and financial institutions are not prima facie prejudicial to the interest of the Company.

This being a statement of fact calls for no comments separately.

xvi. No term loan has been availed during the year. However, the term loans availed by the Company in earlier years had been utilized for the purposes for which the said loan had been taken.

This being a statement of fact calls for no comments separately.

xvii. The funds raised on short-term basis have not been used for long-term investments.

This being a statement of fact calls for no comments separately.

xviii. During the year under audit, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act.

This being a statement of fact calls for no comments separately.

xxi. The Company has not issued any debentures during current or earlier year.

This being a statement of fact calls for no comments separately.

xx. The company, during the year, has not raised any money through Public Issue of shares.

This being a statement of fact calls for no comments separately.

xxi. No fraud, on or by the Company has been noticed by us during the year. However, according to the information and explanations given to us, a case of misappropriation of Company''s funds for personal gain has come to the notice of the management which is under investigation by different agencies, the impact of such misappropriation cannot be ascertained at this stage.

As stated by the Audit, the matter is under intense investigation by different agencies.

For De Chakraborty & Sen

Chartered Accountants

F.R. No. 303029E

(Srijit Chakraborty)

Place: Camp New Delhi Partner

Date : 29th May, 2014 Membership No.: 055317


Mar 31, 2013

1. Report on the Financial Statements

We have audited the accompanying financial statements of COAL INDIA LIMITED which comprise the Balance Sheet as at 31st March, 2013, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. These financial statements include figures in respect of HQ Kolkata, North Eastern Coalfields (NEC), CGMs office at Delhi and Kolkata Marketing Office.

2. Managements Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error,

3. Auditors Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Standards on Auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the Auditors judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risks assessments the auditor considers internal control relevant to the Companys preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

4. Without qualifying our report, attention is drawn to :

a) Notes No.11(1), 12(2) and 18 dealing with investments in and loans and advances (Short term/Long term, Current Account debit balances) to sick subsidiary of the company, that is, Eastern Coalfields Limited (ECL) which is under the Board of Industrial & Financial Reconstruction (BIFR). Revival plans have been approved by BIFR and vetted by the concerned ministry, On implementation of revival schemes the subsidiary is turning around and has started earning profits. In view of the changing circumstances, the management is of the opinion that no writing down or provisioning is required.

b) Note No. 21(1) dealing with non-recognition of income of apex charges and interest from ECL, a sick subsidiary company and also Apex Charges of BCCL (subsidiary of CIL) has been waived off by CIL Board. BCCL is still having accumulated losses, interest on other loans and advances has been deferred.

c) Note No. 10A(2) regarding non-provision against fixed assets in Dankuni Coal Complex leased to South Eastern Coalfields Limited (SECL) for lease rent of Rs. 1 per annum. In the opinion of the management the nominal income earning is a temporary policy matter and actual worth of the assets including land is much higher than the book value and as such no provision is called for.

5. Opinion

In our opinion and to the best of our information and according to the explanations given to us, the said financial statements read together with Significant Accounting Policies and Additional Notes to Accounts as referred in Notes 33 and 34 respectively give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2013;

(b) in the case the Statement of Profit & Loss, of the profit for the year ended on that date; and

(c) in the Cash Flow Statement, of the Cash Flows for the year ended on that date.

6. Report on Other Legal and Regulatory Requirements

(1) As required by the Companies (Auditors Report) Order, 2003, as amended, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraph 4 and 5 of the Order.

(2) As required by section 227(3) of the Act, we report that:

- We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

- In our opinion proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books.

- The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of accounts.

- In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3c) of section 211 of the Companies Act,1956; and

- In terms of Government of India, Department of Company Affairs Notification No.GSR 829(E) Dated 21st October,2003, Government Companies are exempted from the applicability of provisions of section 274(1)(g) of the Companies Act,1956.

- Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act,1956 nor had it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the company.

(Referred to in paragraph 6.1 of our report of even date).

On the basis of checks carried out during the course of audit and as per information and explanations furnished to us and to the best of our knowledge and belief we report that:

i. (a) The company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets. However, certain details as regards purchase order reference; date of commissioning and locations, identification marks are absent there in some cases of old items.

(b) Fixed Assets located at North Eastern Coalfields, the production unit of the company, has been physically verified by the management periodically in a phased manner and no material discrepancies have been noticed as confirmed by the Management. Verification of fixed assets located elsewhere was inadequate.

(c) No substantial part of fixed assets has been disposed of during the year, which has bearing on the going concern assumption.

ii. (a) Physical verification of inventory at North Eastern Coalfields has been conducted at reasonable intervals during the year by the management.

However, inventory at Stock-yard of West Bengal Regional Sales Office has not been physically verified. The inventories being very old have been provided for.

The inventories have been measured on the basis of volumetric system.

(b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The company has maintained proper records of inventory. No material discrepancies were noticed on physical verification.

iii. (a) The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956 except advances to its subsidiaries BCCL and ECL where interest has been deferred / waived. In other cases, clause 4 (iii) (b) to (d) of the Order are not applicable.

(b) The company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956 except some surplus funds of the subsidiaries parked with this holding company where reasonable interest has been paid except two cases of Northern Coalfields Limited and Mahanadi Coalfields Limited where no interest has been paid as these funds were transferred to Eastern Coalfields Limited and Bharat Coking Coal Limited for specific purposes as interest free advance. The terms and conditions of these advances are not prejudicial to the interest of the company.

iv. There is an adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit no major weakness in internal control has been noticed except for certain old advances / receivable accounts where detail schedules are absent for a long time and the adjustments made there-against are basically effected on adhoc basis leading to the emergence of credit balances in some cases.

v. There are no contracts and arrangements as referred to in section 301 of the Companies Act, 1956, particulars of which needs to be entered into a register maintained under section 301 of the said Act. Accordingly, clause 4 (v) (b) of the Order is not applicable.

vi. The company has not accepted any deposits from the public within the meaning of the provisions of Section 58A and 58AA or any other relevant provision of the Companies Act , 1956 and rules made there under,

vii. The Company has an Internal Audit system commensurate with the size and nature of its business. But it requires substantial revamping in respect of timeliness and teeth of reporting together with risk based analysis of the inadequacies.

viii. The maintenance of cost records has been prescribed by the Central Government under section 209 (1) (d) of the Companies Act, 1956 vide Notification dated 3rd June, 2011 in respect of mining activities of the company. We have checked the records and are prima facie of the opinion that the same are properly maintained.

ix. (a) The company is regular in depositing undisputed statutory dues including Provident Fund, Investors Education and Protection Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues with the appropriate authorities. There were no undisputed arrears of statutory dues outstanding as on 31.03.2013 for a period of more than six months from the date they became payable.

(b) There are no dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty, Cess and Other Statutory dues which have not been deposited on account of any dispute.

x. The company does not have any accumulated losses at the end of financial year and has not incurred cash losses in the current financial year and in the immediately preceding financial year,

xi. The company has not defaulted in repayment of dues to Financial Institutions or Banks.

xii. The company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii. The company is not a Chit Fund or a Nidhi / Mutual Benefit Fund / Society,

xiv. The company is not in the business of dealing or trading in shares. The company has investments in shares of its wholly owned subsidiaries, SPV Joint Venture and in Mutual Funds only and has maintained proper records of transactions and contracts in respect thereof and timely entries have been made therein. The company, in its own name, has held all these shares.

xv. The terms and conditions on which the company has given guarantees for loans taken by its subsidiaries from banks and financial institutions are not prima facie prejudicial to the interest of the company,

xvi. No term loan has been availed during the year. However, the term loans availed by the company in earlier years had been utilized for the purposes for which the said loan had been taken.

xvii. The funds raised on short-term basis have not been used for long-term investments.

xviii. During the year under audit the company has not made any preferential allotment of shares.

xix. The company has not issued any debentures during current or earlier year (s).

xx. The company has not made any Initial Public offering (IPO) of shares during the year as the same was carried out during the year 2010-11.

xxi. No fraud, on or by the company has been noticed or reported during the year.

For De Chakraborty & Sen

Chartered Accountants

F.R. NO.303029E

Raktim Kumar Chattopadhyay

(Partner)

Membership No. 052225

Place: Kolkata

Date: 20th May, 2013


Mar 31, 2012

1. We have audited the attached Balance Sheet of COAL INDIA LIMITED as at 31st March, 2012, the Statement of Profit and Loss and also the Cash Flow Statement of the Company for the year ended on that date annexed thereto in which are incorporated the accounts of North Eastern Coalfields (NEC), CGMs office at Delhi and Kolkata Marketing office which have been visited by us. Accounts of twelve regional Sales Offices (RSO) are included in the accounts of the said Kolkata marketing Office on the basis of monthly returns sent by the RSOs. The said Balance Sheet, Statement of Profit & Loss and the Cash Flow Statement have been signed by us under reference to this report. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 (as amended) issued by the Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, on the basis of such checks as considered appropriate and according to the information and explanations given to us during the course of the audit, we give in the Annexure hereto, a statement on the matters specified in the paragraphs 4 and 5 of the said order.

4. Without qualifying our report, attention is drawn to :

(a) Notes No.11 (1), 12(2) and 18(2) dealing with investments in and short term Loans & Advances (Current Account debit Balances) respectively to two sick Subsidiaries of the Company, that is, Bharat Coking Coal Limited (BCCL) and Eastern Coalfields Limited (ECL) which are under the Board of Industrial & Financial Reconstruction (BIFR). Revival plans have been approved by BIFR and vetted by the concerned Ministry. On implementation of revival schemes these Subsidiaries are turning around and have started earning Profit and have also started repaying old advances. In view of the changing circumstances, the management is of the opinion that no writing down or provisioning is required.

(b) Note No. 21(1) dealing with non-recognition of interest income from BCCL one of the said sick Subsidiaries.

(c) Note No. 10A (2) regarding non-provision against fixed assets in Dankuni Coal Complex leased to South Eastern Coalfields Limited (SECL) for lease rent of Rs 1 per annum. In the opinion of the management the nominal income earning is a temporary policy matter and actual worth of the assets including land is much higher than the book value and as such no provision is called for.

5. Further to our comments in the Annexure referred to above, we report that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit;

(ii) In our opinion, proper books of account as required by law have been kept by the Company, so far as it appears from our examination of those books and proper returns adequate for the purpose of our audit have been received from the RSOs not visited by us;

(iii) The Balance Sheet, the Statement of Profit & Loss and Cash Flow statement dealt with by this report are in agreement with the books of account;

(iv) In our opinion, the Balance Sheet, the Statement of Profit & Loss and Cash Flow statement read with Significant Accounting Policy and Additional Notes to Accounts as referred in Notes 33 and 34 respectively comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies act,1956.

(v) As per Notification No.GSR 829 (E) dated 21.10.2003 provisions of clause (g) of sub-section (1) to section 274 regarding disqualification of directors are not applicable to the Company.

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said Statements of Account read together with Significant Accounting Policies and Additional Notes to Accounts as referred in Notes 33 and 34 respectively give the information required by the Companies Act,1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India :

(a) in the case of Balance Sheet of the state of affairs of the Company as at 31st March, 2012;

(b) in the case of Statement of Profit & Loss, of the profit for the year ended on that date; and

(c) in the Cash Flow Statement, of the Cash Flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

(Referred to in paragraph 3 of our report of even date).

On the basis of checks carried out during the course of audit and as per information and explanations furnished to us and to the best of our knowledge and belief we report that:

i. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets. However, certain details as regards purchase order reference, date of commissioning and locations are absent in some cases of old items.

(b) Fixed Assets located at North Eastern Coalfields, the production unit of the company, has been physically verified by the management periodically in phased manner and no material discrepancies have been noticed as confirmed by the Management. Fixed assets located elsewhere remain unverified.

(c) No substantial part of fixed assets has been disposed off during the year, which has bearing on the going concern assumption.

ii. (a) Physical verification of Inventory has been conducted at reasonable intervals during the year by the management, except for Stock- yard of West Bengal Regional Sales Office, the inventories of which is very old and has been provided for. The inventories have been measured on the basis of volumetric system.

(b) In our opinion, the procedures of physical verification of Inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The Company has maintained proper records of Inventory. No material discrepancies were noticed on physical verification.

iii (a) The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act,1956 except advances to its subsidiaries BCCL and ECL where interest has been deferred / waived. In other cases, clause 4 (iii) (b) to (d) of the order are not applicable.

(b) The company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under section 301 of the Companies act,1956 except some surplus funds of the subsidiaries parked with this holding company where reasonable interest has been paid except two cases of Northern Coalfields Limited and Mahanadi Coalfields Limited where no interest has been paid as these funds were transferred to Eastern Coalfields Limited and Bharat Coking Coal Limited for specific purposes as interest free advance. The terms and conditions of these advances are not prejudicial to the interest of the company.

iv. There is an adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit no major weakness in internal control has been noticed except for certain advances / receivable accounts where detail schedules are absent for a long time and the adjustments made there- against are basically effected on adhoc basis leading to the emergence of credit balances often.

v. There are no contracts and arrangements as referred to in section 301 of the Companies Act,1956, particulars of which needs to be entered into a register maintained under section 301 of the said Act. Accordingly, clause 4 (v)(b)of the order is not applicable.

vi. The Company has not accepted any deposits from the public within the meaning of the provisions of section 58A and 58AA or any other relevant provision of the Companies Act, 1956 and rules made there under.

vii. The Company has an Internal Audit system commensurate with the size and nature of its business. But it requires substantial revamping in respect of timeliness and teeth of reporting together with risk based analysis of the inadequacies.

viii. The maintenance of cost records has been prescribed by the Central Government under section 209 (1) (d) of the Companies Act, 1956 vide notification dt 3rd June, 2011 in respect of mining activities of the company. We have checked the records and are prima facie of the opinion that the same are properly maintained.

ix. (a) The Company is regular in depositing undisputed statutory dues including Provident Fund, Investors Education and Protection Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other Statutory dues with the appropriate authorities. There were no undisputed arrears of statutory dues outstanding as on 31.03.2012 for a period of more than six months from the date they became payable.

(b) There are no dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty, Cess and Other Statutory dues which have not been deposited on account of any dispute.

x. The Company does not have any accumulated losses at the end of financial year and has not incurred cash losses in the current financial year and in the immediately preceding financial year.

xi. The Company has not defaulted in repayment of dues to Financial Institutions or Banks.

xii. The Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii. The Company is not a Chit Fund or a Nidhi / Mutual Benefit Fund / Society.

xiv. The Company is not in the business of dealing or trading in shares. The Company has investments in shares of its wholly owned subsidiaries, SPV Joint Venture and in Mutual Funds only and has maintained proper records of transactions and contracts in respect thereof and timely entries have been made therein. The Company, in its own name, has held all these shares.

xv. The terms and conditions on which the Company has given guarantees for loans taken by its subsidiaries from banks and financial institutions are not prima facie prejudicial to the interest of the Company.

xvi. No term loan has been availed during the year. However, the term loans availed by the Company in earlier years had been utilized for the purposes for which the said loan had been taken.

xvii. The funds raised on short-term basis have not been used for long-term Investments.

xviii. During the year under audit the Company has not made any preferential allotment of shares.

xix. The Company has not issued any debentures during current or earlier year(s).

xx. The Company had made an Initial Public offering (IPO) of shares in October, 2010 and the shares were listed on Bombay Stock Exchange and National Stock Exchange on 04.11.2010. Since this was a divestment made by the Govt, of India, the proceeds of the same were used by Govt, of India and not by the Company.

xxi. No fraud, on or by the Company has been noticed or reported during the year.

For De Chakraborty & Sen

Chartered Accountants

FRNO.303029E

Sd/-

(Hrishikesh Chakraborty)

Partner

Membership No. 005660

Place: Kolkata

Date: the 18th day of May, 2012.


Mar 31, 2009

We have audited the attached Balance Sheet of COAL INDIA LIMITED as at 31st. March, 2009 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies ( Auditors Report ) Order, 2003 as amended by the Companies ( Auditors Report ) ( Amendment ) Order, 2004, issued by the Central Government in terms of sub-section (4A ) of section 227 of the Companies Act, 1956, we enclose as annexure, a statement on the matters specified in the paragraphs 4 and 5 of the said order.

Further to our comments in the Annexure referred to above, we report that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit.

(ii) In our opinion, proper books of accounts as required by law have been kept by the Company so far as appears from our examination of those books.

(iii) The Balance Sheet, Profit & Loss Account and Cash Flow statement dealt with by this report are in agreement with the books of accounts.

(iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement read with significant Accounting Policy and Notes to Accounts as referred in Schedule - M comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies act, 1956.

(v) As per Notification No. GSR 829 (E) dated 21-10-2003, provisions of clause (g) of sub-section (1) to Section 274 is not applicable to the company.

(vi) Subject to :

(a) Non provision for investments in, loans to and other receivables from two subsidiaries - namely, Bharat Coking Coal Limited and Eastern Coalfields Limited aggregating to Rs. 4,77,268.76 Lakhs and Rs. 5,91,021.75 Lakhs respectively as they have been declared sick under the Sick Industrial Companies (Special Provision) Act, 1985 and were referred to BIFR.

(b) As referred in item no. 13.13 of Notes to Accounts - Schedule - M, the provision against backfilling is not based on any technical evaluation.

(c) As referred in item no. 9.5 of Notes to Accounts - Schedule - M, we relied upon the actuarys certificate for disclosure of funded liability only. The actuarial liability against V.R.S (non-executives) and exgratia in lieu of employment on death in harness for employees has not been provided in the accounts. We are unable to quantify the impact in the accounts.

(d) As refer in item no. 9.7 of Notes to Accounts - Schedule - M, the information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMEDA) have not been made. In absence of non- identification of such units we are unable to quantify the impact, if any, in the accounts.

In our opinion and to the best of our information and according to the explanations given to us, the said Accounts read with the Notes in Schedule - M give the information required by the Companies Act, 1956 (as amended) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of Balance Sheet of the state of affairs of the Company as at 31st. March, 2009;

(b) in the case of Profit & loss Account of the profit for the year ended on that date; and

(c) in the Cash Flow Statement of the Cash Flows for the year ended on that date.

Annexure to The Auditors Report

1 (a) The Company has- maintained records showing full particulars including quantitative details and situation of Fixed Assets. However, certain details as purchase order reference; date of commissioning etc. are absent there. Records for the current years purchases/ sales are not incorporated in full. Reconciliation of the said Register with General Ledger is under progress.

(b) Fixed Assets located at North Eastern Coalfields, the production unit of the company, has been physically verified by the management periodically in phased manner and no material discrepancies have been noticed as confirmed by the Management. Other fixed assets located elsewhere remains unverified.

(c.) No substantial part of fixed assets has been disposed off during the year, which has bearing on the going concern assumption.

2.(a) Physical verification of Inventory has been conducted at reasonable intervals during the year by the management, except for inventories kept at stockyard of Regional Sales Offices.

(b) In our opinion, the procedures of physical verification of Inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The Company has maintained proper records of Inventory. No material discrepancies were noticed on physical verification.

3.(a) According to information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly clause 4 (III) (b) to (d) of the Order are not applicable.

(b) According to information and explanations given to us, the Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly clause 4 (III) (f) to (g) of the Order are not applicable.

4. On the basis of checks carried out during the course of audit and as per explanations given to us, we are of the opinion that there is adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of Inventory and Fixed Assets and for the Sale of goods and services. During the course of our audit no major weakness in internal control has been noticed except for certain advance / receivable accounts where details/ schedules are absent for a long time and the adjustments made thereagainst are basically effected on adhoc basis leading to the emergence of credit balances often.

5. In our opinion and according to the information and explanations given to us, there are no contracts and arrangements as referred to in section 301 of the Companies Act, 1956, particulars of which need to be entered into a register maintained under section 301 of the said Act. Accordingly, clause 4 (V) (b) of the Order is not applicable.

6. The Directives issued by the Reserve Bank of India and the provisions of section 58 A or any other relevant provisions of the Companies Act, 1956 and the rules framed there under have been complied with in respect of deposits accepted from the public.

7. The Company has an Internal Audit system, the coverage whereof needs to be widened,

8. The maintenance of cost records has not been prescribed by the Central Government under section 209 (1) (d) of the Companies Act, 1956, for the Company.

9.(a) According to the information and explanations given to us and on the basis of our examination of the books of accounts, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other Statutory dues with the appropriate authorities except in certain instances where the delays were noticed.

(b) According to the information and explanations given to us, there are no dues of Sales Tax, Income Tax. Custom Duty, Wealth Tax, Excise Duty, Cess and Other Statutory dues which have not been deposited on account of any dispute.except for the following:

Particulars of Disputed Amount Forum where Dispute Libility Rs. In Lakhs is Pending

Municipal Tax 619.20 Kolkata Municipal Corpn./ Tribunal

10. The Company does not have any accumulated losses and has not incurred cash losses in the current financial year and in the immediately preceding financial year.

11. The Company has not defaulted in repayment of dues to Financial Institutions or Banks.

12. According to information and explanations given to us, the company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The Company is not a Chit Fund or a Nidhi / Mutual Benefit Fund / Society.

14. The Company is not in the business of dealing or trading in shares. The Company has investments in shares of its wholly owned subsidiaries only and maintained proper records of transactions and contracts in respect thereof and timely entries have been made therein. The Company, in its own name, has held all these shares.

15. In our opinion and according to the information and explanations given to us, the terms and conditions on which the Company has given guarantees for loans taken by its subsidiaries from banks and financial institutions are not prima facie prejudicial to the interest of the Company.

16. Based on information and explanations given to us by the management, no term loan has been applied for during the year. However, the term loans availed by the company in earlier years have been utilized for the purposes for which the said loan has been taken.

17. On the basis of our overall examination of the Cash Flow Statement, the funds raised on short-term basis have not been used for long-term Investment

18. During the year under audit the Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956.

19. The Company has not issued any debenture during current or earlier year (s).

20. The Company has not raised any money by way of Public Issue during the year.

21. Based upon the audit procedures performed and on the basis of information and explanations provided by the management, we report that no fraud, on or by the Company has been noticed or reported during the year.

Place : Kolkata For Mitra Kundu & Basu

Dated : The 19th June, 2009 Chartered Accountants

(S. Das)

Partner

Membership No. 051391


Mar 31, 2008

We have audited the attached Balance Sheet of COAL INDIA LIMITED as at 31st. March, 2008 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express ah opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a lest basis, evidence supporting- the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Wc believe that our audit provides a reasonable basis for our opinion.

As required by the Companies ( Auditors Report ) Order, 2003 as amended by the Companies ( Auditors Report ) (Amendment ) Order, 2004, issued by the Central Government in terms of sub-section (4A ) of section 227 of the Companies Act, 1956, we enclose as annexure, a statement on the matters specified in the paragraphs 4 and 5 of the said order.

Furtherto our comments in the Annexure referred to above, we report that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit.

(ii) In our opinion, proper books of accounts as required by law have been kept by the Company so far as appears from our examination of those books(iii) The Balance Sheet, Profit & Loss Account and Cash Flow statement dealt with by this report are in agreement with the books of accounts.

(iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement read with significant Accounting Policy and Notes to Accounts as referred in Schedule — M comply with the Accounting Standards referred to in sub-section (3C) of section 21 1 of the Companies act, 1956.

(v) As per Notification No. GSR 829 (E) dated 21-10-2003, provisions of clause (g) of sub-section (1) to Section 274 is not applicable to the company.

(vi) Subject to :

(a) Non provision for investments in, loans to and other receivables from two subsidiaries - namely, Bharat Coking Coal Limited and Kaslern Coalfields Limited aggregating to Rs. 4,49,368.47 Lakhs and Rs. 6.13,399.70 Lakhs respectively as they have been declared sick under the Sick Industrial Companies (Special Provision) Act, 1985 and were referred to BIFR.

(b) As referred in item no. 13.13 of Notes to Accounts - Schedule- M the provision against back filling is not based on any technical evaluation.

(c) As referred in item no. 9.5 and 10.6 of Notes to Accounts - Schedule - M certain items are not considered for actuarial liability provision, the quantum of which is not ascertainable.

(d) As referred in item no. 9.5 of Notes to Accounts - Schedule - M, we relied upon the Actuarys certificate for disclosure of funded liability against Defined Benefit Plan under AS - 15 issued by the Institute of Chartered Accountants of India.

In our opinion and to the best of our information and according to (he explanations given to us, the said Accounts read with the Notes in Schedule - M give the information required by the Companies Act, 1956 (as amended) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of Balance Sheet of the state of affairs of the Company as at 31st. March, 2008;

(b) in the case of Profit & loss Account of the profit for the year ended on that date; and

(c) in the Cash Flow Statement of the Cash Flows for the year ended on that date.

Annexurc to The Auditors Report

1 (a) The Company has maintained records showing full particulars including quantitative details and situation of Fixed Assets. However, certain details as purchase order reference; date of commissioning etc. are absent there. Records for the current years purchases/ sales are not incorporated in full. Reconciliation of the said Register with General Ledger is under progress.

(b) Fixed Assets located at North Eastern Coalfields, the production unit of the Company has been physically verified by the management periodically in a phased manner and no material discrepancies have been noticed as confirmed by the management. Other fixed assets located elsewhere remains unverified. Certain surveyed-off assets still remain in the Asset Register.

(c.) No substantial part of fixed assets has been disposed off during the year, which has bearing on the going concern assumption.

2.(a) Physical verification of Inventory has been conducted at reasonable intervals during the year by the management, except for inventories kept at stockyard of Regional Sales Offices.

(b) In our opinion, the procedures of physical verification of Inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The Company has maintained proper records of Inventory. No material discrepancies were noticed on physical verification.

3.(a) According to information and explanations given to us, the Company has not

granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act. 1956. Accordingly clause 4 (III) (b) to (d) of the Order are not applicable.

(b) According to information and explanations given to us, the Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly clause 4 (111) (I) to (g) of the Order are not applicable.

4. On the basis of checks arried out during the course of audit and as per

explanations given to us, we are of the opinion that there is adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of Inventory and Fixed Assets and for the Sale of goods and services. During the course of our audit no major weakness in internal control has been noticed except for certain advance accounts where details/ schedules are absent for a long time and the adjustments made thereagainst are basically effected on adhoc basis leading to the emergence of credit balances often.

5. In our opinion and according to the information and explanations given to us, there are no contracts and arrangements as referred lo in section 301 of the Companies Act, 1956, particulars of which need to he entered into a register maintained under section 301 of the said Act. Accordingly, clause 4 (V) (b) of the Order is not applicable.

6. The company does not have any deposits accepted from the public.

7. The Company has an Internal Audit system the coverage whereof needs to be widened.

8. The maintenance of cost records has not been prescribed by the Central Government under, section 209 (1) (d) of the Companies Act, 1956. for the Company.

9.(a) According to the information and explanations given to us and on the basis of our examination of the books of accounts, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income Tax, Sales Tax, Wealth Tax. Service Tax, Custom Duty, Excise Duty, Cess and other Statutory dues with the appropriate authorities except in certain instances where the delays were noticed,

According to information and explanations given to us, undisputed dues in respect Sales / Income Tax aggregating to Rs. 0.08 lakhs is outstanding at the year end for more than six months from the dale they became payable.

(b) According to the information and explanations given to us, there are no dues of Sales Tax, Income Tax. Custom Duty, Wealth Tax, Excise Duty. Cess and Other Statutory dues which have not been deposited on account of any dispute except for the following:

Particulars of Disputed Amount Forum where Dispute Libility Rs. In Lakhs is Pending

Municipal Tax 109.40 Kolkata Municipal Corpn. Tribunal

10. The Company does not have any accumulated losses and has not incurred cash losses in the current financial year and in the immediately preceding financial year.

11. The Company has not defaulted in repayment of dues to Financial Institutions or Banks.

12. According lo information and explanations given to us, the company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The Company is not a Chit Fund or a Nidhi /Mutual Benefit Fund / Society.

14. The Company is not in the business of dealing or trading in shares. The Company hurt investments in shares of its wholly owned subsidiaries only mid maintained proper records of transactions and contracts in respect thereof and timely entries have been made therein. The Company, in its own name, has held all these shares.

15. In our opinion and according to the information and explanations given to us, the terms and conditions on which the Company has given guarantees for loans taken by its subsidiaries from banks and financial institutions are not prima facie prejudicial to the interest of the Company.

16. Based on information and explanations given to us by the management, no term loan has been applied for during the year. However, the term loans availed by the company in earlier years have been utilized for the purposes for which the said loan has been taken.

17. On the basis of our overall examination of the Cash Flow Statement, the funds raised on short-term basis have not been used for long-term Investment

18. During the year under audit the Company has not made any preferential allotment of shares to parlies or companies covered in the register maintained under section 301 of the Companies Act, 1956.

19. The Company has not issued any debenture during current or earlier year (s).

20. The Company has not raised any money by way of Public Issue during the year.

21. Based upon the audit procedures performed and on the basis of information and explanations provided by the management, we report that no fraud, on or by the Company has been noticed or reported during the year.

Place: Kolkata For Mitra Kundu & Basu

Dated: 2008 Chartered Accountants

( S. Das) Partner Membership No: 051391

വാർത്തകൾ അതിവേഗം അറിയൂ
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
X