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Coal India Ltd.

BSE: 533278 Sector: Metals & Mining
NSE: COALINDIA ISIN Code: INE522F01014
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VOLUME 330410
52-Week high 263.30
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P/E 11.47
Mkt Cap.(Rs cr) 141,034
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OPEN 230.20
CLOSE 230.50
VOLUME 330410
52-Week high 263.30
52-Week low 139.20
P/E 11.47
Mkt Cap.(Rs cr) 141,034
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Coal India Ltd. (COALINDIA) - Auditors Report

Company auditors report

To the Members of Coal India Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the Standalone Financial Statements of Coal IndiaLimited ("the Company") which comprise the Balance Sheet as at March 31 2022the Statement of Profit and Loss (including other comprehensive income) the Statement ofchanges in Equity and the Statement of Cash Flows for the year then ended and notes to theStandalone Financial Statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as the "StandaloneFinancial Statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Financial Statements give theinformation required by the Companies Act 2013 (the "Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2022and its profit and other comprehensive income changes in equity and its cash flows forthe 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 responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Standalone Financial Statements section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the Standalone Financial Statements under the provisions of the Companies Act 2013 andthe Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Emphasis of Matter

We draw attention to the following notes / matters to the StandaloneFinancial Statements. a) Note 38(7)(o) regarding temporary suspension of mining operationsat Tikak Tipong and Tirap colliery at NEC since June 03 2020 due to non-receipt offorest and other statutory clearance. The management is reviewing the impact of suchsuspension on the related assets and liabilities and has not recognized any provision ofimpairment in respect of such assets in the Standalone Financial Statements. HoweverMining operations have been started in Tikak Extension OCP mines from February 10 2022.b) Note 5 in respect of Exploration and Evaluation assets amounting to Rs 2.56 Crorerelated to two mines Tirap OCP and Tikak West extension for which there has not been anyvisible progress or development since long. The management has not recognized necessaryprovision for impairment in respect of such assets in the books of accounts. c) Note 10 inrespect of Capital Advance which includes Compensatory afforestation (CA) and Net presentvalue (NPV) amounting to Rs 42.53 Crore deposited with the Forest Department of theGovernment of Assam against forest lands related to Lekhapani OCP for which withdrawal ofproject was approved by the empowered sub-committee of the Company and application forwithdrawal of the forest clearance was submitted to relevant authority. As explained themanagement is in the process of filing application for refund / adjustment of such CA andNPV amounting to Rs 42.53 Crore and has not recognized any provision of impairment inrespect of such asset in the books of accounts. d) Note 7 regarding Investments amountingto Rs 8926.42 Crore in two wholly owned subsidiary Companies which have been measured atbook value. The management has not made impairment provision against the erosion of Rs3838.94 Crore in the value of the investments as according to the management theinvestment in these subsidiary companies is long term and strategic in nature. e) Note38(3)(b) in respect of certain modifications/rephrasing in the existing SignificantAccounting Policies made during the year in case of intangible assets employee benefitsestimates and assumptions. As explained by the management there is no financial impactdue to such aforesaid modifications/rephrasing. f) During the period from April 01 2021to November 11 2021 the Company had not complied with the provisions of section 149 ofthe Companies Act 2013 in respect of constitution of its Board of Directors which didnot have any Independent Director from September 6 2020. There was also non-compliance ofthe provisions of Section 177 178 188 of Companies Act 2013 and regulations 17 18 1920 24 33 read with Schedule II of SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 in respect of mandatory requirement of Independent Directors and anIndependent Woman Director constitution of Audit committee Nomination and RemunerationCommittee Stakeholders Relationship Committee Corporate Social Responsibility Committeeand the business required to be transacted at these committee meetings. Due to suchnon-compliances Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) had leviedpenalty of Rs 1.28 crore including GST till the quarter ended December 2021.

The Board has constituted the necessary Committees vide the 433rdmeeting of the Board of Directors held on November 12 2021. g) The Company hasimplemented a new ERP Software (SAP) and has migrated from the old accounting software(Coalnet). Our procedu did not identify any material exceptions except certain balancesrelated to vendors customers employees and inventory which are under process ofidentification and necessary reconciliation by the management. Further due to pendency ofsystem audit and migration audit impact if any on the Standalone Financial Statements ispresently unascertainable. h) Wherever physical access was not possible necessaryrecords reports documents and certificates were made available to us by the unit throughdigital medium and emails. To this extent the audit process was carried out on the basisof such documents reports and records made available to us which were relied upon asaudit evidence for conducting the review and reporting for the current period.

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

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone Financial Statements of thecurrent year. These matters were addressed in the context of our audit of the StandaloneFinancial Statements as a whole and in forming our opinion thereon we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key Audit Matter:

1. Assessment of provisions and contingent liabilities in respect ofcertain litigations including direct and indirect taxes various claims filed by otherparties not acknowledged as debt.

A high level of judgment is required in estimating the level ofprovisioning. The Company's assessment is supported by the facts of matter their ownjudgment past experience and advice from legal and independent tax consultant whereverconsidered necessary. Accordingly unexpected adverse outcomes may significantly impactthe Company's reported profit and net assets. Associated uncertainty relating to theoutcome requires application of judgment in interpretation of law.

Refer Note 38(1)(a) to the Standalone Financial Statements.Auditor's Response: Principal Audit Procedures:

Our audit was focused on analyzing the facts of subject matter underconsideration and judgments/ interpretation of relevant la Our Audit approach involved:

Examining recent orders and/or communication received from various Taxauthorities/ judicial forums and follow up action thereo Understanding the current statusof the litigation/tax assessments.

Evaluating the merit of the subject matter under consideration withreference to the grounds presented therein and available independent legal / tax advice.

Review and analysis of the contentions of the Company throughdiscussion collection of details of the subject matter under consideration review of themanagement assessment of the likely outcome and consequent potential outflows on thoseissues.

Audit Conclusion:

Our procedures did not identify any material exceptions. Key AuditMatter:

2. The Company has implemented new ERP Software (SAP) with effect fromApril 01 2021 in case of HO Kolkata Delhi Office Mumbai and Chennai Regional SalesOffice (RSO) and with effect from August 01 2021 in case of NEC. All the information hasbee migrated from old accounting software Coalnet to SAP on the implementation dates. Postimplementation of SAP accounting of all the transactions is being processed through theSAP except hospital inventory valuation of closing stock of coal and OBR Calculations atNEC which are maintained manually. Further various ageing analysis which are required tobe disclosed in the Standalone Financial Statements as per the Act are also preparedmanually by the management. Migration audit and system audit of SAP ERP software ispending till the reporting date.

Auditor's Response: Principal Audit Procedures:

Considering the voluminous nature of transactions and system ofprocessing of such transactions through the SAP our audit procedures were aimed atanalyzing the integrity propriety and implication of such transaction processing on theStandalone Financial Statements

Our Audit approach involved:

Discussion with the management regarding various procedures followedfor migration of data process and documentation for accounting of transaction under SAP

Performance of procedures on a test check basis to understand therecording flow of transactions its implication and reflection in the StandaloneFinancial Statements Evaluation of the relevant existing system of controls on a testbasis to ascertain the effectiveness accuracy and propriety in respect of automatedrecording of transactions Audit Conclusion: Our procedures did not identify any materialexceptions except certain balances related to vendors customers employees and inventorywhich are under process of identification and necessary reconciliation by the management.Further due to pendency of system audit and migration audit impact if any on theStandalone Financial Statement is presently unascertainable.

Other Matters

Our Report on the Standalone Financial Statements dated May 25 2022 asapproved by the Board of Directors of the Company is revised to incorporate observationsof the Comptroller and Auditor General of India. Pursuant to the observations of theComptroller and Auditor General of India we further report that: a) Para (f) of theEmphasis of Matter has been modified to add the words "Due to such non-compliancesBombay Stock Exchange (BSE) and National Stock Exchange (NSE) had levied penalty of Rs1.28 crore including GST till the quarter ended December 2021". b) Clause (iii)(a)(A) of Annexure A (Referred to in Paragraph 1 of "Report on Other Legal andRegulatory requirements" section of Independent Auditor's Report) has beenamended by adding the words" during the year". c) Under Clause (ix)(c) ofAnnexure A (Referred to in Paragraph 1 of "Report on Other Legal and Regulatoryrequirements" section of Independent Auditor's Report) the line "theCompany does not have any term loans during the year" has been replaced with"the Company has been sanctioned term loan of Rs 364.30 crore which is yet to bedisbursed as at March 31 2022." This revised Audit Report has no material impact onthe reported figures in the standalone financial statements of the Company. This auditreport supersedes the original audit report dated May 25 2022. Our audit proceduresubsequent to the date of original report is restricted solely to the amendments made inPara (f) of the Emphasis of Matter and in Clause (iii)(a)(A) and Clause (ix) (c) ofAnnexure A (Referred to in Paragraph 1 of "Report on Other Legal and Regulatoryrequirements" section of Independent Auditor's Report).

Information Other than the Standalone Financial Statements andAuditors' Report Thereon

The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the draftDirectors' Report including annexures to Directors' Report which we obtainedprior to the date of this auditors' report and other reports included in the Annualreport which are expected to be made available to us after that date but does notinclude the Standalone Financial Statements and our auditors' report thereon.

Our opinion on the Standalone Financial Statements does not cover theother information and we do not and will not express any form of assurance conclusionthereon.

In connection with our audit of the Standalone Financial Statementsour responsibility is to read the other information identified above and in doing soconsider whether the other information is materially inconsistent with the StandaloneFinancial Statements or our knowledge obtained during the course of our audit or otherwiseappears to be materially misstated.

If based on the work we have performed on the other information thatwe obtained prior to the date of this auditors' report we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard. When we read the full Annual report which isexpected to be made available to us after the date of this auditors' report if weconclude that there is a material misstatement therein we are required to communicate thematter to those charged with governance.

Responsibilities of the Management and Those Charged with Governancefor the Standalone Financial Statements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these Standalone Financial Statements that give a true and fair view ofthe financial position financial performance including other comprehensive incomechanges in equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the accounting Standards specified undersection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the Standalone Financial Statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

In preparing the Standalone Financial Statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue 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 auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also: Identify andassess the risks of material misstatement of the Standalone Financial Statements whetherdue to fraud or error design and perform audit procedures responsive to those risks andobtain audit evidence that is sufficient and appropriate to provide a basis for ouropinion. The risk of not detecting a material misstatement resulting from fraud is higherthan for one resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control.

Obtain an understanding of internal financial control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company ha adequate internal financial controls system in place and theoperating effectiveness of such controls.

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

Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditors' report to therelated disclosures in the Standalone Financial Statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditors' report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of theStandalone Financial Statements including the disclosures and whether the StandaloneFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the StandaloneFinancial Statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the Standalone FinancialStatements may be influenced. We consider quantitative materiality and qualitative factorsin (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 Standalone FinancialStatements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regardi independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the StandaloneFinancial Statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditors' report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor's Report) Order 2020("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 tothe extent applicable.

2) As required under Section 143 (5) of the Companies Act 2013 wegive in the "Annexure – B" a statement on the Directions issued bythe Comptroller and Auditor General of India after complying with their suggestedmethodology of audit the action taken thereon and its impact on the accounts andStandalone Financial Statements of the Company.

3) As required by Section 143(3) of the Act we report that: a) We havesought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit. b) In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books. c) The Balance Sheet the Statement of Profitand Loss including other comprehensive income statement of changes in equity andstatement of cash flows dealt with by this Report are in agreement with the books ofaccount.

d) In our opinion the aforesaid Standalone Financial Statements complywith the Indian Accounting Standards specified under Section 133 of the Act. e) Inpursuance to the Notification No. G.S.R 463 (E) dated 05-06-2015 issued by the Ministry ofCorporate Affairs Section 164 (2) of the Companies Act 2013 pertaining todisqualification of Directors the same is not applicable to the Company being aGovernment Company. f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure –C"

4) With respect to the matter to be included in the Auditors'Report under Section 197(16) of the Act:

As per notification number G.S.R. 463 (E) dated June 05 2015 issued byMinistry of Corporate Affairs section 197 of the Act regarding remuneration to directorsis not applicable to the Company since it is a Government Company. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) of the Act whichare required to be commented upon by us.

5) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Amendment Rules 2021 in our opinion and to the best of our information and according tothe explanations given to us: i. The Company has disclosed the impact of pendinglitigations on its financial position in its financial statements – Refer note38(1)(a) to the Standalone Financial Statements; ii. The Company did not have anylong-term contracts including derivative contracts for which there were any materialforeseeabl losses; iii. There has been no delay in transferring the amounts required to betransferred to the Investor Education and Protection Fund by the Company; iv. (a) Themanagement has represented that to the best of its knowledge and belief other than asdisclosed in the notes to accounts no funds have been advanced or loaned or invested(either from borrowed funds or share premium or any other sources or kind of funds) by theCompany to or in any other person(s) or entity(ies) including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries; (b) The management has represented that tothe best of its knowledge and belief other than as disclosed in the notes to theaccounts no funds have been received by the Company from any person(s) or entity(ies)including foreign entities ("Funding Parties") with the understanding whetherrecorded in writing or otherwise that the Company shall whether directly or indirectlylend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Funding Part ("Ultimate Beneficiaries") or provide any guaranteesecurity or the like on behalf of the Ultimate Beneficiaries; and (c) Based on such auditprocedures we have considered reasonable and appropriate in the circumstances nothing hascome to our notice that has caused us to believe that the representations under sub-clause(a) and (b) contain any material mis-statement; v. The dividend declared or paid duringthe year by the Company is in compliance with section 123 of the Companies Act 2013except deposit of dividend amounting to Rs 0.02 Crore in a separate account of a scheduledbank within the specified time limit of five days from the date of declaration of suchdividend. It was however explained by the Management of the Company that such dividendamount related to rounding off issue and was deposited immediately thereafter.

For RAY & RAY
Chartered Accountants
(Firm's Registration No. 301072E)
Place: Kolkata Sd/-
Date: July 13th 2022
(K. K. Ghosh)
Partner
Membership No. 059781
UDIN: 22059781AMTZRZ6953

"Annexure-A" to the Independent Auditors' Report

(Referred to in Paragraph 1 of "Report on Other Legal andRegulatory requirements" section of our Audit Report) i) a) A) The Company hasgenerally maintained proper records showing full particulars including quantitativedetails and situation of Property Plant and Equipment (PPE).

B) The Company has generally maintained proper records showing fullparticulars of intangible assets. b) According to the information and explanations givento us and on the basis of our examination of the records of the Company the Companyconducts physical verification of its PPE located at Kolkata Head Office North EasternCoalfields (NEC) New Delhi Office Regional Sales Office (RSO) and other offices in sucha manner by which all PPE are verified within a reasonable interval.

Certain PPE were verified during the year at Kolkata Head Office NorthEastern Coalfields (NEC) and Chennai RSO. The process should be further improved by havinga well-defined programme of physical verification to cover all the assets in phasedmanner. In case of NEC the reconciliation of physically verified assets with the bookrecords is in progress. According to the information and explanations given by themanagement discrepancies noticed on the physical verification and consequentialadjustments are not material. c) According to the information and explanations given to usand on the basis of our examination of the title deeds of all the immovable propertiesdisclosed in the Standalone Financial Statements the same appeared to be held in the nameof the Company except th following properties as provided in the format below:

Description of property Gross carrying value (Rs in Crore) Title deeds held in the name of Whether title deed holder is a promoter director or relative of promoter/ director or employee of promoter/director Property held since which date Reason for not being held in the name of the Company
5.60 Ha. freehold lands at Tura Dakopgre (Meghalaya) 0.03 Title deeds are not available NA 08-01-1994 Title deeds are not available.
10.97 Ha. freehold lands at Dilli- Jeypore Colliery - M/S Dilli Colliery No 11-03-1997 Lands were acquired or came in possession by the Company by virtue of Coal Mines Nationalization Act 1973.
132.34 Ha. free hold land at Margherita Town. - Assam Railways and Trading Company Limited No Not available in Fixed Asset Register. Lands were acquired or came in possession by the Company by virtue of Coal Mines Nationalization Act 1973.
9.16 Ha. free hold land at Grnat no.277(F) NLR Namdang. - Assam Railways and Trading Company Limited No Not available in Fixed Asset Register. Lands were acquired or came in possession by the Company by virtue of Coal Mines Nationalization Act 1973.
15.95 Ha. free hold land at W.L.Application No.11 (part/north). - Assam Railways and Trading Company Limited No Not available in Fixed Asset Register. Lands were acquired or came in possession by the Company by virtue of Coal Mines Nationalization Act 1973.
17.27 Ha. free hold land at W.L.Application No.85/1923.24. - Assam Railways and Trading Company Limited No Not available in Fixed Asset Register. Lands were acquired or came in possession by the Company by virtue of Coal Mines Nationalization Act 1973.
3.61 Ha. free hold land at Grnat no.277(c) NLR Namdang. - Assam Railways and Trading Company Limited No Not available in Fixed Asset Register. Lands were acquired or came in possession by the Company by virtue of Coal Mines Nationalization Act 1973.
377.17 Ha. free hold land at Ledo-Tikak NLR Grant No.2. - Assam Railways and Trading Company Limited No Not available in Fixed Asset Register. Lands were acquired or came in possession by the Company by virtue of Coal Mines Nationalization Act 1973.
4.43 Ha. free hold land at Namdang Bah Bari. - Assam Railways and Trading Company Limited No Not available in Fixed Asset Register. Lands were acquired or came in possession by the Company by virtue of Coal Mines Nationalization Act 1973.
21.90 Ha. free hold land at W.L.Application No.20 of 1923-24. - Assam Railways and Trading Company Limited No Not available in Fixed Asset Register. Lands were acquired or came in possession by the Company by virtue of Coal Mines Nationalization Act 1973.
2.10 Ha. free hold land at Tipongpani station site. - Assam Railways and Trading Company Limited No Not available in Fixed Asset Register. Lands were acquired or came in possession by the Company by virtue of Coal Mines Nationalization Act 1973.
64.16 Ha. free hold land at No.1 Baragolai Gaon. - Assam Railways and Trading Company Limited No Not available in Fixed Asset Register. Lands were acquired or came in possession by the Company by virtue of Coal Mines Nationalization Act 1973.
13.17 Ha. free hold land at No.2 Baragolai Gaon. - Assam Railways and Trading Company Limited RIGHT>No Not available in Fixed Asset Register. Lands were acquired or came in possession by the Company by virtue of Coal Mines Nationalization Act 1973.
69.53 Ha. free hold land at 11 no Grant Baragolai. - Assam Railways and Trading Company Limited No Not available in Fixed Asset Register. Lands were acquired or came in possession by the Company by virtue of Coal Mines Nationalization Act 1973.
11.12 Ha. free hold land at Ledo Kol Para. - Assam Railways and Trading Company Limited No Not available in Fixed Asset Register. Lands were acquired or came in possession by the Company by virtue of Coal Mines Nationalization Act 1973.
7.89 Ha. free hold land at 6 No. Grant Lekhapani. - Assam Railways and Trading Company Limited No Not available in Fixed Asset Register. Lands were acquired or came in possession by the Company by virtue of Coal Mines Nationalization Act 1973.
145.46 Ha. free hold land at Ledo town. - Assam Railways and Trading Company Limited No Not available in Fixed Asset Register. Lands were acquired or came in possession by the Company by virtue of Coal Mines Nationalization Act 1973.
13.85 Ha. free hold land at Lekhapani colliery line (Nepali Gaon). - Assam Railways and Trading Company Limited No Not available in Fixed Asset Register. Lands were acquired or came in possession by the Company by virtue of Coal Mines Nationalization Act 1973.
11.38 Ha. free hold land at Tipongpani ward. - Assam Railways and Trading Company Limited No Not available in Fixed Asset Register. Lands were acquired or came in possession by the Company by virtue of Coal Mines Nationalization Act 1973.
10.24 Ha. free hold land at Namdang Special patta. - Assam Railways and Trading Company Limited No Not available in Fixed Asset Register. Lands were acquired or came in possession by the Company by virtue of Coal Mines Nationalization Act 1973.
3.72 Ha. free hold land at Baragolai NC. - Assam Railways and Trading Company Limited No Not available in Fixed Asset Register. Lands were acquired or came in possession by the Company by virtue of Coal Mines Nationalization Act 1973.
0.92 Ha. freehold Lands at Tura Office Meghalaya - Title deeds are not available NA Not available in Fixed Asset Register. Title deeds are not available
4489.82 Ha. Leasehold Lands at NEC - Title deeds are not available NA Not available in Fixed Asset Register. Lands were acquired by virtue of Coal Mines Nationalization Act 1973
Scope Minar at New Delhi 8.21 Title deeds are not available NA 01-12-2004 Buildings are promoted by Standing Committee of Public Enterprises and NBCC on behalf of Ministry of Urban Development (GOI) and CIL has allotment letters only as proof of ownership
Scope Complex at New Delhi 0.37 Title deeds are not available NA 30-09-1989 Buildings are promoted by Standing Committee of Public Enterprises and NBCC on behalf of Ministry of Urban Development (GOI) and CIL has allotment letters only as proof of ownership
Office Building at Kidwainagar New Delhi 60.69 Title deeds are not available NA 23-03-2021 Buildings are promoted by Standing Committee of Public Enterprises and NBCC on behalf of Ministry of Urban Development (GOI) and CIL has allotment letters only as proof of ownership
Guest House at Kidwainagar New Delhi 13.61 Title deeds are not available NA 01-05-2019 Buildings are promoted by Standing Committee of Public Enterprises and NBCC on behalf of Ministry of Urban Development (GOI) and CIL has allotment letters only as proof of ownership

d) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not revalued itsProperty Plant and Equipment and Intangible Assets during the year. e) According to theinformation and explanations given to us and on the basis of our examination of therecords of the Company as provided to us there are no proceedings initiated during theyear or pending against the Company as on March 31 2022 for holding any benami propertyunder the Benami Transaction (Prohibition) Act 1988 as amended and rules made thereunder.ii) a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Compan physical verification of inventories at NorthEastern Coalfields the production unit of the Company has been conducted by themanagement at reasonable intervals during the year as per specified procedure. Nodiscrepancies of 10% or more in the aggregate of each class of inventory were noticed. b)According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company along with its subsidiaries hasbeen sanctioned working capital limits amounting to Rs 430 Crore from consortium of banksduring the year on the basis of the security of current assets. Necessary quarterlyreturns or statements have been filed by th Company with such banks during the year. iii)According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has made investments in and grantedadvances in the nature of loans during the year to other parties. The Company has notprovided any guarantees or securities granted loans and advances in the nature of loansduring the year to companies firms or limited liability partnerships and other partiesexcept above details of which are stated below. a) A) Based on the audit procedurescarried out by us and as per the information and explanations given to us the Company hasnot provided any loans or advances in the nature of loans or has not provided anyguarantee or security to subsidiaries and joint ventures during the year.

B) Based on the audit procedures carried out by us and as per theinformation and explanations given to us the Company has not granted advances in thenature of loans to any other parties or employees during the year. However employeeadvances amounting to Rs 0.03 Crore is outstanding at the balance sheet date. The Companyhas not provided any guarantee or security to other parties during the year. b) Accordingto the information and explanations given to us and based on the audit proceduresconducted by us in our opinion the Investments made and the terms and conditions of thegrant of advances in the nature of loans during the year to various employ are primafacie not prejudicial to the interest of the Company. c) In our opinion and according tothe information and explanations given to us and on the basis of our examination of therecords of the Company in the case of advances in the nature of loans given to variousemployees the repayment of principal and payment of interest has been stipulated and therepayments and receipts are regular. d) According to the information and explanationsgiven to us and on the basis of our examination of the records of the Company there is nomaterial overdue amount for more than ninety days in respect of advances in the nature ofloans given to various employee e) According to the information and explanations given tous and on the basis of our examination of the records of the Company there is no loan oradvance in the nature of loans granted falling due during the year which has been renewedor extended or fresh l granted to settle the overdue of existing loans or advances in thenature of loans given to same parties. f) According to the information and explanationsgiven to us and on the basis of our examination of the records of the Company the Companyhas not granted any loans or advances in the nature of loans either repayable on demand orwithout specifying any terms or period of repayment. iv) According to the information andexplanations given to us the Company has complied with the provisions of Sections 185 and186 of the Act in respect of grant of loans making investments and providing guaranteesand securities as applicable. v) According to the information and explanations given tous the Company has not accepted any deposit in terms of the directives issued by theReserve Bank of India and the provisions of Sections 73 to 76 or any other relevantprovisions of the Companies Act and the rules framed there under. vi) The maintenance ofcost records has been specified by the Central Government under Section 148(1) of theCompanies Act 2013 in respect of Mining activities of the Company. We have broadlyreviewed the records and are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. However we have not made any detailed examinationof the records with a vi to determine whether they are accurate or complete. vii) a)According to the information and explanations given to us and on the basis of ourexamination of books of accounts the Company has generally been regular in depositing theundisputed statutory dues including Goods and Services Tax provident fund income taxsales-tax service tax duty of customs duty of excise value added tax cess and anyother material statutory dues with the appropriate authorities. As informed to usemployee's state insurance is not applicable to the Company.

According to the information and explanations given to us noundisputed amounts payable in respect of Goods and Services Tax provident fundemployees' state insurance income tax sales-tax service tax duty of customs dutyof excise value added ta cess and any other material statutory dues were in arrears asat March 31 2022 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 theCompany examined by us following due of income tax and central excise were in arrears asat March 31 2022 on account of various disputes:

Name of the Statute Nature of Dues Gross Amount Under dispute Period to which the amount relates Forum where the dispute is pending Amount deposited under protest Amount not deposited
ncome Tax Act Income Tax 78.07 AY 2011-12 TAT 20.00 58.07
81.58 AY 2012-13 TAT 0.00 81.58
90.30 AY 2013-14 TAT 0.00 90.30
29.09 AY 2018-19 CIT (A) 0.00 29.09
Total 279.04 20.00 259.04
Central Excise Act1944 Central excise 4.45 FY 2010-11 to FY 2014-15 CESTAT 0.17 4.28

viii) According to the information and explanations given to us and onthe basis of our examination of the records of the Company th Company has not surrenderedor disclosed any transactions previously unrecorded as income in the books of account inthe tax assessments under the Income Tax Act 1961 as income during the year. ix) a)According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company does not have any loans orborrowings during the year. b) According to the information and explanations given to usand on the basis of our examination of the records of the Company the Company has notbeen declared a wilful defaulter by any bank or financial institution or other lender. c)According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has been sanctioned term loan of Rs364.30 crore which is yet to be disbursed as at March 31 2022. d) According to theinformation and explanations given to us and on the basis of our examination of therecords of the Company funds raised on short-term basis have been used for long-termpurposes by the Company. e) According to the information and explanations given to us andon the basis of our examination of the records of the Company the Company has not takenany funds from any entity or person on account of or to meet the obligations of itssubsidiaries and joint ventures f) According to the information and explanations given tous and on the basis of our examination of the records of the Company the Company has notraised loans during the year on the pledge of securities held in its subsidiaries or jointventures. x) a) According to the information and explanations given to us the Company hasnot raised moneys by way of initial public offer or further public offer (including debtinstruments) or term loans and hence reporting under paragraph 3(x)(a) of the Order is notapplicable to the Company. b) During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures andhence reporting under paragraph 3(x)(b) of the Order is not applicable to the Company. xi)a) To the best of our knowledge and according to the information representation andexplanations given to us no fraud by th Company or no material fraud on the Company hasbeen noticed or reported during the year. b) According to the information and explanationsgiven to us no report under sub-section (12) of Section 143 of the Act has been filed byus in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government. c) According to the information and explanations given to usand on the basis of our examination of the records of the Company cases were received bythe Company till December 2021 under Whistle Blower Policy of the Company. xii) Accordingto the information and explanations given to us the Company is not a Nidhi Company.Accordingly clause 3(xii) of the Order is not applicable. xiii) According to theinformation and explanations given to us and based on our examination of the records ofthe Company during the period from April 01 2021 to November 11 2021 transactions withthe related parties are not in compliance with Section 177 and Sect on 188 of the Actwherever applicable and details of such transactions have been disclosed in the StandaloneFinancial Statements as required by the applicable accounting standards. xiv) a) Based oninformation and explanations provided to us and based on our audit procedures it appearsthat the Company has an internal audit system commensurate with the size and nature of itsbusiness. b) We have been provided and have considered the internal audit reports of theCompany for the year 2021-22 except the internal audit reports of the Mumbai and ChennaiRegional Sales Office (RSO) since such documents were not made available for ourverification xv) According to the information and explanations given to us the Companyhas not entered into any non-cash transactions during the year with its Directors orpersons connected to its Directors and hence the provisions of Section 192 of theCompanies Act 2013 is not applicable to the Company.

xvi) a) The Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934. Therefore clause (xvi) (a) (xvi) (b) and(xvi) (c) of paragraph 3 of the Order is not applicable to the Company. b) According tothe information and explanations given to us the Group does not have any Core InvestmentCompany (CIC). xvii) According to the information and explanations given to us and on thebasis of our examination of the records of the Company th Company has not incurred cashlosses in the financial year and in the immediately preceding financial year. xviii) Therehas been no resignation of the statutory auditors during the year. Accordingly clause3(xviii) of the Order is not applicable. xix) According to the information andexplanations given to us and on the basis of the financial ratios ageing and expecteddates of realisation of financial assets and payment of financial liabilities otherinformation accompanying the Standalone Financial Statements our knowledge of the Boardof Directors and management plans and based on our examination of the relevant evidencenothing has come to our attention which causes us to believe that any materialuncertainty exists as on the date of the audit report that the Company is not capable ofmeeting its liabilities existing at the date of balance sheet as and when they fall duewithin a period of one year from the balance sheet date. We however state that this isnot an assurance as to the future viability of the Company. We further state that ourreporting is based on the facts up to the date of the audit report and we neither give anyguarantee nor any assurance that all liabilities falling due within a period of one yearfrom the balance sheet date will get discharged by the Company as and when they fall due.xx) a) There are no unspent amounts towards Corporate Social Responsibility (CSR) onother than ongoing projects requiring transfer of such unspent amount to a Fund specifiedin Schedule VII to the Companies Act within a period of six months of the expiry of thefinancial year in compliance with second proviso to sub-section (5) of section 135 of thesaid Act. b) There are no ongoing projects under CSR where amount remaining unspent undersub-section (5) of section 135 of the Companies Act is required to be transferred tospecial account in compliance with the provision of sub-section (6) of section 135 of thesaid Act.

For RAY & RAY
Chartered Accountants
(Firm's Registration No. 301072E)
Place: Kolkata Sd/-
Date: July 13th 2022
(K. K. Ghosh)
Partner
Membership No. 059781
UDIN: 22059781AMTZRZ6953

"Annexure-B" to the Independent Auditors' Report

(Referred to in Paragraph 2 of "Report on Other Legal andRegulatory requirements" section of our Audit Report) Part I

(i) Whether the Company has system in place to process all theaccounting transactions through IT System? If yes the implications of processing ofaccounting transactions outside IT system on the integrity of the accounts along with thefinancial implications if any may be stated.

The Company has implemented a new ERP Software (SAP) with effect fromApril 01 2021 in case of HO Kolkata Delhi Office Mumba and Chennai Regional SalesOffice (RSO) and with effect from August 01 2021 in case of NEC. All the information hasbeen migrated from old accounting software Coalnet to SAP on the implementation dates.Post implementation of SAP accounting of all the transactions is being processed throughthe SAP except hospital inventory valuation of closing stock of coal and OBR Calculationsat NEC which are maintained manually. Further various ageing analysis which are requiredto be disclosed in the financials as per the Act are also prepared manually by themanagement.

Further due to pendency of system audit and migration auditimplications of processing of such accounting transactions outside SAP and any consequenteffect on integrity of the accounts along with related financial implications if any areunascertainable.

(ii) Whether there is any restructuring of an existing loan or cases ofwaiver/write off of debts/loans/interest etc. made by a lender to the Company due to theCompany's inability to repay the loan? If yes the financial impact may be stated.

As per the information and explanations given by the management thereis no restructuring of loan or cases of waiver/write off of debts/ loans/interest etc.made by a lender to the Company.

(iii) Whether funds received/receivable for specific schemes fromCentral / State agencies were properly accounted for /utilized as per its term andconditions? List the cases of deviation.

According to the information and explanations given to us and on thebasis of our examination of the records of the Company th following grants/funds werereceived/accounted for during the year: During the financial year 2021-22 NEC hasreceived Rs 0.41 Crore from Ministry of Coal as "assistance for sand stowing andprotective works" done by NEC and were properly accounted for under "OtherOperating Revenue" as ‘Subsidy for Sand Stowing & Protective Works'Further grant for railway siding amounting to Rs 1.72 Crore received by NEC from CentralGovernment in the FY 2019-20 is also properly accounted for as per its terms andconditions on the basis of deferral of income recognition.

Part II - Additional Directions:

(i) Whether coal stock measurement was done keeping in view the contourmap. Whether physical stock measurement reports are accompanied by contour maps in allcases? Whether approval of the competent authority was obtained for new heap if anycreated during the year.

According to the information and explanations given to us and on thebasis of our examination of the records of the Company only year-end coal stockmeasurement is done keeping in view the contour map. Physical stock measurement report ofcoal stock as on March 31 2022 at NEC is accompanied by contour maps. Approval of thecompetent authority was obtained for new heap created at NEC during the year.

(ii) Whether the Company has conducted physical verification exerciseof assets and properties at the time of merger/split/re-structure of an area. If sowhether the concerned subsidiary followed the requisite procedure?

As per the information and explanations given by the management thereis no such merger/split/restructure of any area during the year.

(iii) Whether separate Escrow Accounts for each mine has beenmaintained in CIL and its subsidiary companies. Also examine the utilization of the fundof the account.

Separate escrow account for each mine (Tikak extension Lekhapani OCPTipong Ledo OCP Tikak OCP and Tirap OCP) of North East Coalfields (NEC) the productionunit of Coal India Limited has been maintained. No such fund as explained by themanagement has been withdrawn during the year.

(iv) Whether the impact of penalty for illegal mining as imposed by theHon'ble Supreme Court has been duly considered and accounted for?

According to the information and explanations given to us no penaltyfor illegal mining has imposed by the Honorable Supreme Court during the year on theCompany.

For RAY & RAY
Chartered Accountants
(Firm's Registration No. 301072E)
Place: Kolkata Sd/-
Date: July 13th 2022
(K. K. Ghosh)
Partner
Membership No. 059781
UDIN: 22059781AMTZRZ6953

"Annexure-C" to the Independent Auditors' Report

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of Coal India Limited (hereinafter referred to as ‘the Company') as ofMarch 31 2022 in conjunction with our audit of the Standalone Financial Statements of theCompany for the year ended on that date

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

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

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

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

Meaning of Internal Financial Controls over Financial Reporting

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

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

According to the information and explanations given to us and based onour audit in our opinion the Company has generally maintained in all material respectsadequate internal financial controls over financial reporting and such internal financialcontrols over financial reporting were generally operating effectively as of March 312022 based on the internal control over financial reporting criteria established by theCompany 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 ofInternal Financial Controls of the Company in respect of its risk assessment process riskanalysis of different functional areas and incorporating the process flows at departmentallevels including risk mitigation in respect of insurance coverage ii) strengthening ofthe monitoring of controls in respect of expenses and fixed assets confirmation/reconciliation/adjustment of balances of other financial assets other current andnon-current assets trade payables other financial liabilities and other currentliabilities.

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

For RAY & RAY
Chartered Accountants
(Firm's Registration No. 301072E)
Place: Kolkata Sd/-
Date: July 13th 2022
(K. K. Ghosh)
Partner
Membership No. 059781
UDIN: 22059781AMTZRZ6953

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