2.21 Provisions, Contingent Liabilities and Contingent
Assets

Provisions are recognized when the Company has a
present obligation (legal or constructive) as a result of a
past event, and it is probable that an outflow of economic
benefits will be required to settle the obligation and
a reliable estimate of the amount of the obligation can
be made. Where the time value of money is material,
provisions are stated at the present value of the
expenditure expected to settle the obligation.

All provisions are reviewed at each balance sheet date
and adjusted to reflect the current best estimate.

Where it is not probable that an outflow of economic
benefits will be required, or the amount cannot be
estimated reliably, the obligation is disclosed as a
contingent liability, unless the probability of outflow of
economic benefits is remote. Possible obligations, whose
existence will only be confirmed by the occurrence or
non-occurrence of one or more future uncertain events
not wholly within the control of the Company, are also
disclosed as contingent liabilities unless the probability
of outflow of economic benefits is remote.

Contingent assets are possible assets that arise from past
events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the
Company. Contingent assets are disclosed in the financial
statements when inflow of economic benefits is probable
on the basis of the judgment of management. These are
assessed continually to ensure that developments are
appropriately reflected in the financial statements.

2.22 Earnings per share

Basic earnings per share are computed by dividing the net
profit after tax by the weighted average number of equity
shares outstanding during the period. Diluted earnings per
shares is computed by dividing the profit after tax by the
weighted average number of equity shares considered for
deriving basic Earnings per share and also the weighted
average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares.

2.23 Stripping activity provision (Ratio Variance)

Stripping activity provision recognized earlier is based on
the policy followed consistently by CIL since its inception.
Stripping activity provision was recognized or reversed
based on the current ratio of OB to Coal as compared
to the average Stripping ratio (Standard ratio) of the
mine. This accounting method has been substantiated
and validated by a multitude of authoritative bodies and
forums, including income tax authorities.

The carrying amount of the stripping activity provision is
reversed systematically whenever the situation of reversal

arises on extraction of actual volume of overburden over
expected volume thereof. Such reversal is specific to
mines at the rate the said provision has been recognized.

2.24 Judgements, Estimates and Assumptions

The preparation of the financial statements in conformity
with Ind AS requires management to make estimates,
judgments, and assumptions that affect the application
of accounting policies and the reported amounts of
assets and liabilities, the disclosures of contingent assets
and liabilities at the date of financial statements and the
amount of revenue and expenses during the reported
period. Application of accounting policies involving
complex and subjective judgements and the use of
assumptions in these financial statements have been
disclosed. Accounting estimates could change from
period to period. Actual results could differ from those
estimates. Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the
estimates are revised and, if material, their effects are
disclosed in the notes to the financial statements.

2.24.1 Judgements

In the process of applying the Company's accounting
policies, management has made the following
judgments, which have the most significant effect on
the amounts recognised in the financial statements:

2.24.1.1 Formulation of Accounting Policies

Accounting policies are formulated in a manner
that results in financial statements containing
relevant and reliable information about the
transactions, other events and conditions
to which they apply. Those policies need
not be applied when the effect of applying
them is immaterial.

In the absence of an Ind AS that specifically
applies to a transaction, other event or
condition, management has used its judgment
in developing and applying an accounting
policy that results in information that is:

a) relevant to the economic decision-making
needs of users and

b) reliable in that financial statements: and

(i) represent faithfully the financial
position, financial performance and
cash flows of the Company;

(ii) reflect the economic substance
of transactions, other eventsand
conditions, and not merely
the legal form;

(iii) are neutral, i.e. free from bias;

(iv) are prudent; and

(v) are complete in all material respects
on a consistent basis

In making the judgment management
refers to, and considers the applicability of,
the following sources in descending order:

(a) the requirements in Ind ASs dealing
with similar and related issues; and

(b) the definitions, recognition criteria
and measurement concepts for
assets, liabilities, income, and
expenses in the Framework.

In making the judgment, management
considers the most recent pronouncements
of the International Accounting Standards
Board and in the absence thereof those of
the other standard-setting bodies that use
a similar conceptual framework to develop
accounting standards, other accounting
literature, and accepted industry practices,
to the extent that these do not conflict
with the Indian accounting Standard and
accounting policies and practices as stated
in above paragraph.

The Company operates in the mining sector
(a sector where the exploration, evaluation,
and development production phases are
based on the varied topographical and
geo-mining terrain spread over the lease
period running over decades and prone
to constant changes), the accounting
policies whereof have evolved based on
specific industry practices supported by
research committees and approved by the
various regulators owing to its consistent
application over the last several decades.
In the absence of specific accounting
literature, guidance and standards in
certain specific areas which are in the
process of evolution, the Company
continues to strive to develop accounting
policies in line with the development
of accounting literature and any
development therein shall be accounted
for prospectively as per the procedure laid
down above more, particularly in Ind AS 8.

2.24.1.2 Materiality

Ind AS applies to items which are material.
Management uses judgement in deciding
whether individual items or groups of item are

material in the financial statements. Materiality
is judged by reference to the nature or
magnitude or both of the items. The deciding
factor is whether omitting or misstating or
obscuring an information could individually or
in combination with other information influence
decisions that primary users make on the basis
of the financial statements. Management also
uses judgement of materiality for determining
the compliance requirement of the Ind AS.
Further, the Company may also be required
to present separately immaterial items when
required by law.

With effect from 01.04.2019 Errors/omissions
discovered during the year relating to prior
periods are treated as immaterial and adjusted
during the year, if all such errors and omissions
in aggregate does not exceed 1% of total
revenue from Operation (net of statutory levies)
as per the last audited financial statement
of the Company.

2.24.1.3 Operating lease

Company has entered into lease agreements.
The Company has determined, based on an
evaluation of the terms and conditions of
the arrangements, such as the lease term not
constituting a major part of the economic life
of the commercial property and the fair value
of the asset, that it retains all the significant
risks and rewards of ownership of these
properties and accounts for the contracts as
operating leases.

2.24.2 Estimates and assumptions

The key assumptions concerning the future
and other key sources of estimation uncertainty
at the reporting date, that have a significant risk
of causing a material adjustment to the carrying
amounts of assets and liabilities within the
next financial year, are described below. The
Company based its assumptions and estimates
on parameters available when the standalone
financial statements were prepared. Existing
circumstances and assumptions about future
developments, however, may change due
to market changes or circumstances arising
that are beyond the control of the Company.
Such changes are reflected in the assumptions
when they occur.

The estimates, judgements and associated
assumptions are based on historical experience
and other factors that are considered to
be relevant. Actual results may differ from
these estimates.

Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the
period in which the estimate is revised and
future periods affected.

The application of accounting policies that
require critical judgements and accounting
estimates involving complex and subjective
judgements and the use of assumptions in
these standalone financial statements have
been disclosed here in below:

2.24.2.1 Impairment of non-financial assets

There is an indication of impairment if, the
carrying value of an asset or cash generating unit
exceeds its recoverable amount, which is the
higher of its fair value less costs of disposal and
its value in use. Company considers individual
mines as separate cash generating units for the
purpose of test of impairment. The value in use
calculation is based on a DCF model. The cash
flows are derived from the budget for the next five
years and do not include restructuring activities
that the Company is not yet committed to or
significant future investments that will enhance
the asset's performance of the Cash Generating
Unit (CGU) being tested. The recoverable
amount is sensitive to the discount rate used
for the Discounted Cash Flow (DCF) model as
well as the expected future cash-inflows and the
growth rate used for extrapolation purposes.
These estimates are most relevant to other
mining infrastructures. The key assumptions
used to determine the recoverable amount for
the different CGUs, are disclosed and further
explained in respective notes.

2.24.2.2 Income Taxes

Deferred tax assets are recognised for unused tax
losses to the extent that it is probable that taxable
profit will be available against which the losses can
be utilised. Significant management judgement is
required to determine the amount of deferred tax
assets that can be recognised, based upon the
likely timing and the level of future taxable profits
together with future tax planning strategies.

2.24.2.3 Defined benefit plans and long term

employee benefits

The cost of the defined benefit plan and other
post-employment medical benefits and the
present value of the obligations are determined

using actuarial valuations. An actuarial
valuation involves making various assumptions
that may differ from actual developments in
the future. These include the determination of
the discount rate, future salary increases and
mortality rates.

Due to the complexities involved in the
valuation and its long-term nature, a defined
benefit obligation is highly sensitive to
changes in these assumptions. All assumptions
are reviewed at each reporting date. The
parameter most subject to change is the
discount rate. In determining the appropriate
discount rate for plans operated in India, the
management considers the interest rates of
government bonds in currencies consistent
with the currencies of the post-employment
benefit obligation.

The mortality rate is based on publicly
available mortality tables of the country. Those
mortality tables tend to change only at interval
in response to demographic changes.

2.24.2.4 Intangible asset under development

The Company capitalises intangible asset
under development for a project in accordance
with the accounting policy. Initial capitalisation
of costs is based on management's judgement
that technological and economic feasibility
is confirmed, usually when a project report is
formulated and approved.

2.24.2.5 Provision for Mine Closure, Site Restoration
and Decommissioning Obligation

In determining the fair value of the provision
for Mine Closure, Site Restoration and
Decommissioning Obligation, assumptions
and estimates are made in relation to discount
rates, the expected cost of site restoration and
dismantling and the expected timing of those
costs. The Company estimates provision using
the Discounted Cash Flow (DCF) method
considering life of the project/mine based on

• Estimated cost per hectare as specified
in guidelines issued by Ministry of Coal,
Government of India

• The discount rate (pre-tax rate) that reflect
current market assessments of the time
value of money and the risks specific
to the liability.

4.1.2. Investment in Eastern Coalfields Limited (ECL)

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

4.1.3. Investment in Coal India Africana Limitada (CIAL)

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

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

CIL has entered into a Memorandum of Understanding
(vide approval from its Board in 237th meeting held
on 24th November, 2007) regarding the formation of a
Special Purpose Vehicle (SPV) through a joint venture
involving CIL/SAIL/RINL/NTPC & NMDC for the acquisition

of coking coal properties abroad. The formation of
the SPV had been approved by the Government of
India, vide its approval dated 8th November, 2007.
The aforesaid SPV viz. International Coal Ventures Private
Limited was incorporated under the Companies Act, 1956
on 20th May, 2009 initially with an authorised capital of
H1.00 crore and paid-up capital of H0.70 crore. Coal India
Limited is owning 0.19% share i.e. H 2.80 crore face value
of equity shares.

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

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

4.1.6. Investment in Talcher Fertilizers Limited (TFL)

A Joint venture company named 'Talcher Fertilizers
Limited' (formerly known as Rashtriya Coal Gas Fertilizers
Limited was incorporated on 13th November,2015 under
the Companies Act, 2013 under a joint venture agreement
dated 27th October,2015, among Coal India Limited (CIL),
Rashtriya Chemicals and Fertilizers Limited, GAIL (India)
Limited and Fertilizer Corporation of India Limited with an
authorised share capital of H4200.00 Crore. Presently Coal
India Limited has invested H902.15 crore (i.e. 33.33%) in
the joint venture company upto 31-03-2025.

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

By virtue of agreement dated 16th May, 2016 made
between CIL and NTPC Limited, a joint venture company
named Hindustan Urvarak and Rasayan Limited
(HURL) was formed under the Companies Act, 2013.
Subsequently, joint venture agreement has been revised
on 31st October, 2016 to include IOCL, FCIL and HFCL
as joint venture partners. The authorised share capital
of the company is H 12000.00 Crore. Presently Coal India
Limited has invested H2642.99 crore (i.e. 33.33%) in the
joint venture company upto 31-03-2025.

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

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

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

Coal India Limited and Bharat Heavy Electricals Limited
jointly established Bharat Coal Gasification & Chemicals
Limited (BCGCL) on 21st May,2024 under the Companies
Act, 2013, a Private Limited Company to engage in
the business of coal gasification to produce syn-gas,
Ammonia & Nitric acid as intermediate products and
Ammonium Nitrate as end product. Coal India holds
51% equity stake in the company, while Bharat Heavy
Electricals owns 49% in BCGCL.

4.1.10 Investment in Coal Gas India Limited (CGIL)

Coal Gas India Limited (CGIL) has been incorporated
on 25.03.2025 under the Companies Act, 2013 as a
subsidiary of Coal India Limited (CIL), in which CIL will
hold 51% and GAIL (India) Limited will hold 49% equity to
set up the Coal to Synthetic Natural Gas (SNG) business.
There is no investment till 31.03.2025.

4.1.11 Investment in CIL Solar PV Limited (CSPVL)

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

4.1.12 Investment in CIL Navikarniya Urja Limited (CNUL)

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

NOTE - 4.6 : OTHER FINANCIAL ASSETS (Contd..)

4.6.2. Deposit in Bank under Shifting and Rehabilitation
Fund scheme

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

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

4.6.3. Coal India Limited entered into a Consortium
Agreement with M/s BEML Limited and M/s Damodar
Valley Corporation (DVC) on 08.06.2010 for acquiring
specified assets of M/s Mining and Allied Machinery
Corporation (under liquidation). The agreement, inter
alia, provided for the formation of a joint venture
company with a shareholding pattern of 48:26:26
among BEML,CIL, and DVC respectively. CIL has paid its
proportionate share towards bid consideration of H 100
Crores towards the said acquisition based on the order
passed by Hon'ble High Court of Calcutta. An amount was
paid towards bid consideration and other miscellaneous
expenditure H 40.83 crore (P.Y. H 37.65 crores). Further a
Company in the name of MAMC Industries Limited (MIL)
has been formed and incorporated on 25th August 2010
as a wholly owned subsidiary of BEML for the intended
purpose of Joint Venture formation. However as covered
in the terms and condition of the Consortium Agreement,
a shareholders' agreement and joint venture agreement
has not yet executed in this respect.

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

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

9.1.1 Provision for Site Restoration/Mine Closure

The Company's obligation for land reclamation and
decommissioning of structures consists of spending at
both surface and underground mines in accordance
with the guidelines from Ministry of Coal, Government
of India. The estimate of obligation for Mine Closure, Site
Restoration and Decommissioning based upon detailed
calculation and technical assessment of the amount
and timing of the future cash spending to perform the
required work. Mine Closure expenditure is provided
as per approved Mine Closure Plan. The estimates of
expenses are escalated for inflation, and then discounted
at a discount rate (@8%) that reflects current market
assessment of the time value of money and the risks, so
that the amount of provision reflects the present value of
the expenditures expected to be required to settle the
obligation. The value of the provision is progressively
increased over time as the effect of discounting unwinds;
creating an expense recognised as financial expenses.
In reference to above guidelines for preparation of
mine closure plan, an escrow account has been opened.
(Refer Note - 4.6.1)

NOTE - 16: ADDITIONAL NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED
31-03-2025 (Contd..)

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

(c) The bank borrowings of Coal India Ltd. has been secured by creating charge against stock of coal , stores and spare parts and
book debts of CIL and its Subsidiary Companies within consortium of banks. The total working capital credit limit available to
CIL is H430.00 Crore, of which fund based limit is H140.00 Crore and non-fund based limit is H290.00 crore. Further, H7850.00
crore(P.Y.H6740.00 Crore) was set up as non-fund based limit outside consortium in order to facilitate import of HEMM. Coal
India Limited is contingently liable to the extent such facility is actually utilised by the Subsidiary Companies.

(b) Commitments

i) Capital Commitments:

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

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

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

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

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

A brief of each level is given below.

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

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

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

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

c) Valuation technique used in determining fair value

Valuation techniques used to value financial instruments
include the use of quoted market prices (NAV) of
instruments in respect of investment in Mutual Funds.

d) Fair value measurements using significant unobservable
inputs

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

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

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

The Company considers that the Security Deposits
does not include a significant financing component.
The security deposits coincide with the company's

performance and the contract requires amounts to
be retained for reasons other than the provision of
finance. The withholding of a specified percentage
of each milestone payment is intended to protect the
interest of the company, from the contractor failing to
adequately complete its obligations under the contract.
Accordingly, transaction cost of Security deposit is
considered as fair value at initial recognition and
subsequently measured at amortised cost.

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

4 Financial Risk Management

Financial risk management objectives and policies

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

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

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

A. Credit Risk:.

Credit risk management:

Receivables arise mainly out of sale of Coal. Sale of
Coal is broadly categorized as sale through fuel supply
agreements (FSAs) and e-auction.

Macro - economic information (such as regulatory
changes) is incorporated as part of the fuel supply
agreements (FSAs) and e-auction terms

Fuel Supply Agreements (FSAs)

The company enters into legally enforceable FSAs with
customers or with State Nominated Agencies that in turn
enters into appropriate distribution arrangements with
end customers. Our FSAs can be broadly categorized into:

• FSAs with customers in the power utilities sector,
including State power utilities, private power utilities
("PPUs") and independent power producers ("IPPs")
under various clauses of Scheme to Harness and
Allocate Koyla (Coal) Transparently in India (SHAKTI);

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

• FSAs with State Nominated Agencies.

E-Auction Scheme

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

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

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

Significant estimates and judgments for Impairment of
financial assets

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

B. Liquidity Risk

Prudent liquidity risk management implies maintaining
sufficient cash and marketable securities and the availability
of funding through an adequate amount of committed
credit facilities to meet obligations when due. Due to the
dynamic nature of the underlying businesses, Company
treasury maintains flexibility in funding by maintaining
availability under committed credit lines.Refer Note 16 (1)
(II) Guarantee for the bank borrowings within consortium
of banks and outside consortium, the fund and non fund
based limit for total working capital credit.

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

C. Market risk

a) Foreign currency risk

Foreign currency risk arises from future commercial
transactions and recognised assets or liabilities
denominated in a currency that is not the Company's
functional currency(INR).The Company is exposed to
foreign exchange risk arising from foreign currency
transactions. Foreign exchange risk in respect of
foreign operation is considered to be insignificant. The
Company also imports and risk is managed by regular
follow up. Company has a policy which is implemented
when foreign currency risk becomes significant.

b) Cash flow and fair value interest rate risk

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

Company manages the risk using guidelines issued by
Department of Public Enterprises (DPE) on diversification
of bank deposits credit limits and other securities.

Capital management

The company being a government entity manages
its capital as per the guidelines of Department of
Investment and Public Asset Management under
Ministry of Finance.

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

(I) Defined Benefit Plans

a) Gratuity

The Company provides for gratuity, a post¬
employment defined benefit plan (""the Gratuity
Scheme"") covering the eligible employees.
Gratuity payment is made as per policy of the
comapny subject to maximum of H 20 lacs at the
time of separation from the company considering
the provisions of the Payment of Gratuity Act 1972
as amended. The liability or asset recognised in the
balance sheet in respect of the Gratuity Scheme is
the present value of the defined benefit obligation
at the end of the reporting year less the fair value
of plan assets. The defined benefit obligation is
calculated at each reporting date by actuaries using
the projected unit credit method. Re-measurement
gains and losses arising from experience
adjustments and changes in actuarial assumptions
are recognised in the year in which they occur,
directly in other comprehensive income (OCI).

The Gratuity Scheme is funded through trust
maintained with Life Insurance Corporation of India.
LIC also provides an insurance coverage (Life Cover
Sum Assured- "LCSA") in case of death of a member
during service, to compensate the shortfall in
gratuity amount from estimated payable at normal
retirement date based on last drawn salary subject
to ceiling of maximum of H 20 lacs.

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

Company has post-retirement medical benefit
scheme known as Contributory Post Retirement
Medicare Scheme for Executive of CIL and its
Subsidiaries (CPRMSE), to provide Medicare to
the executives, their spouses and fully financially
dependent Divyang child(ren) suffering from not
less than 40% of any disability in Company hospital/
empanelled hospitals or outpatient/Domiciliary
only in India subject to ceiling limit, on account of
retirement on attaining the age of superannuation or
are separated by the Company on medical ground
or retirement under Voluntary Retirement Scheme
under common coal cadre or Voluntary Retirement
Scheme formulated and made applicable from
time to time. Membership is not extended to the
executives who resigns from the services of the
CIL and its subsidiaries. The maximum amount
reimbursable during the entire life for the retired
executives, spouse and dependent Divyang child

(ren) taken together jointly or severally is H 25 lakhs
except for specified diseases with no upper limit.
The Scheme is funded through trust for group,
maintained with Life Insurance Corporation of India .
The liability for the scheme is recognised based on
actuarial valuation done at each reporting date.

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

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

(II) Defined Contribution Plans

a) Provident Fund and Pension

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

b) CIL Executive Defined Contribution Pension
Scheme (NPS)

The company provides a post-employment
contributory pension scheme to the executives of
the Company known as "CIL Executive Defined
Contribution Pension Scheme -2007" (NPS).

The Scheme is funded through trust for group,
maintained with Life Insurance Corporation of India.
The obligation of the Company is to contribute to
the trust to the extent of amount not exceeding
30% of basic pay and dearness allowance less
employer's contribution towards provident fund,
gratuity, post-retirement medical benefits -Executive
i.e. CPRMSE or any other retirement benefits. The
current employer contribution of 6.99% of basic and
Dearness Allowance is being charged to statement
of profit and loss.

[III) Other Long Term Employee Benefits

a) Leave encashment

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

b) Life Cover Scheme (LCS)

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

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

c) Settlement Allowances

As a part of wage agreement, a lump sum amount
of H 12000/- is paid to all the non-executive cadre
employees governed under NCWA on their
superannuation on or after 31.10.2010 as settling-in
allowance. The liability under the scheme is borne
by the Company as per actuarial valuation at each
reporting date.

d) Group Personal Accident Insurance (GPAIS)

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

e) Travel Allowance Scheme

As a part of wage agreement, Non-executive
employees are entitled to travel assistance for
visiting their home town and for "Bharat Bhraman"
once in a block of 4 years. A lump sum amount of H
10000/- and H 15000/- is paid for visiting Home town
and "Bharat Bhraman", respectively. The liability
for the scheme is recognised based on actuarial
valuation at each reporting date.

f) Workmen's Compensation Benefits in Mine Accident

As a part of social security scheme under wage
agreement, the company provide the benefits
admissible under The Employee's Compensation
Act, 1923. An amount of H 15 lakhs is paid to the next
of kin of an employee in case of a fatal mine accident
w.e.f 07.11.2019. In addition, w.e.f 01.06.2023 an
exgratia amount of H 90,000/- is paid in case of death
or permanent total disablement The expected cost
of the benefits is recognised when an event occurs
that causes the benefit payable under the scheme.

Funding status of defined benefit plans and other
long term employee benefits plans are as under:

(i) Funded

• Gratuity

• Leave Encashment

• Post-Retirement Medical Benefit -

Executive (CPRMSE)

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

(ii) Unfunded

• Life Cover Scheme

• Settlement Allowance

• Group Personal Accident Insurance

• Leave Travel Concession

• Compensation to dependent on Mine
Accident Benefits

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

(C) CIL has leased out the office premises in Delhi
to Coal Controller Organisation (CCO) at H 0.08
crore per months w.e.f. 01.1 1.2021. The rent is
enhanced by 5% every year.

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

(e) Insurance and escalation claims

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

(f) Current Assets, Loans and Advances etc.

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

(g) Balance Confirmations

The Company has a procedure for obtaining periodic
confirmation of balances from banks. There are no
unconfirmed balances in respect of bank accounts and
borrowings from banks & financial institutions. With
regard to other parties, reconciliations are made and
the balance confirmation letters/emails are also sent on
a periodic basis. Some of such balances are subject to
confirmation/reconciliation. Adjustments, if any will be
accounted for on confirmation/reconciliation of the same,
and are not anticipated to materially affect the results.

(h) Benami Property:

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

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

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

(j) Wilful Defaulter:

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

(k) Relationship with Struck off Companies:

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

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

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

(m) Compliance with number of layers of companies:

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

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

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

(o) Utilisation of Borrowed funds and share premium:

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

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

(p) Crypto Currency or Virtual Currency

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

(q) Undisclosed Income:

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

(t) During the financial year 2013-14, a case of
misappropriation of Company's fund for personal gain
came to the notice of the management. The matter has
been investigated by different agencies and appropriate
action for recovery is underway. As per the estimate of
the internal audit department of Coal India Limited, the
amount involved is H1.17 crores approximately.

(u) Suspension of mines

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

(v) Seized Stock of Coal

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

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

Further, on the direction of Divisional Forest Officer,
Digboi Division NEC has deposited amounting H 2.26
Crores under the custody of Margherita Treasury. The
management has also recognised the provision against
such deposit in the Financial Statement.

(w) CIL and ONGC have entered into agreement for CBM
development and operation in Jharia and Raniganj North
CBM Blocks as joint operation as per GoI CBM policy under
the aegis of Directorate General of Hydrocarbons (DGH).
Participating Interest (PI) of CIL in both the operations is
26% as on 31.03.2025. As per DGH communication even
though the period of development phase of Jharia CBM
Block was mentioned from April, 2013 to May 28, 2021, the
project work at site in Jharia CBM Block pending completion
thereof has been considered under development stage
and the matter has been referred back to DGH for review
and necessary regularisation. Raniganj North CBM Block is
also under development stage as on 31.03.2025.

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

7 Miscellaneous Informations

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

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

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

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

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