CONTENT Member of the Board 05 Management During 2017-2018 06 Banker, Auditors and Corporate Office 07 Chairman’s Statement 08 Performance of CIL at a glance 12 (Graphical Representation) Operation Statistics 17 Brief Profile of Directors 32 Director’s Report 38 Comments of the Comptroller & Auditor General of India on Standalone Accounts of Coal India Limited 86 Auditor Report on the Standalone Financial Statements for the year ended 31st March 2018 88 Comments of the Comptroller & Auditor General of India on Consolidated Accounts of Coal India Limited 94 Auditor Report on the Consolidated Financial Statements for the year ended 31st March 2018 96 Observation of Auditor on Standalone Financial Statements and Management Explanation 103 Observation of Auditor on Consolidated Financial Statements and Management Explanation 106 Secretarial Auditor Report 145 Report on Corporate Governance 163 Sustainable Development Report 181 Management Discussion and Analysis Report 182 Standalone Accounts of CIL 205 Consolidated Accounts of CIL & its Subsidiaries 269 GREEN INITIATIVE IN CORPORATE GOVERNANCE Dear Shareholder, Pursuant to the initiatives undertaken by the Ministry of Corporate Affairs, encouraging the companies to reduce the carbon footprint by enabling them to send the Annual Report etc to the Shareholders through electronic mode, your company has already taken the following steps:- Emails have been sent to all shareholders who have not exercised the option to receive the Annual Report 2017-18 in physical mode. They have been provided with a link (URL) to the website of COAL INDIA LIMITED for downloading the Annual Report 2017-18. For members who have not registered their email addresses, physical copy of Annual Report 2017-18 is being sent by the permitted mode. In case you have not yet registered your email id, we urge you to furnish your email id to NSDL/CDSL/M/s Alankit Assignments Limited (R&T Agent of Coal India Ltd) at their address indicated in the report elsewhere or email at [email protected]. Please ensure that you have indicated your Folio No/DP & Client ID number as well as your consent to receive future communications from Coal India Ltd including Annual Report etc through email at your registered email address. Please help us to save the environment. Sd/- M.Viswanathan Company Secretary MISSION To produce and market the planned quantity of coal and coal products efficiently and economically in an eco-friendly manner with due regard to safety, conservation and quality. VISION To emerge as one of the global players in the primary energy sector committed to provide energy security to the country by attaining environmentally & socially sustainable growth through best practices from mine to market. BOARD OF DIRECTORS Shri A K Jha Shri R.K.Sinha Smt. Reena Sinha Puri Shri C.K .Dey Shri S N Prasad Shri B Dayal Shri R P Srivastava INDEPENDENT DIRECTORS Ms. Loretta Mary Vas Dr S.B.Agnihotri Dr D.C.Panigrahi Dr. Khanindra Pathak Shri Vinod Jain Shri V K Thakral Shri B L Gajipara PERMANENT INVITEES Shri R R Mishra Shri S Saran Shri Anurag ANNUAL REPORT & ACCOUNTS 2017 - 2018 MEMBERS OF THE BOARD as on 10th July,2018 Functional Directors: Shri A K Jha : Chairman Shri C.K Dey : Finance Shri S.N. Prasad : Marketing Shri B Dayal : Technical Shri R.P Srivastava : Personnel Part-Time Official Directors: Shri R. K. Sinha : Joint Secretary, MoC, New Delhi Smt. Reena Sinha Puri : JS & FA, MoC, New Delhi Independent Directors: Ms. Loretta Mary Vas Dr S.B.Agnihotri Dr. D.C.Panigrahi Dr. Khanindra Pathak Shri Vinod Jain Shri V K Thakral Shri B L Gajipara Permanent Invitees: Shri R R Mishra : Chairman-cum-Managing Director, WCL. Shri S.Saran : Chairman-cum-Managing Director, CMPDIL Shri Anurag : Addl. Member(Traffic Transportation) Railway Board Company Secretary Shri M. Viswanathan 5 COAL INDIA LIMITED A MAHARATNA COMPANY MANAGEMENT DURING 2017-18 Shri Gopal Singh : Chairman [Addl. Charge] (From 01.09.2017) Shri S. Bhattacharya : Chairman (From 05.01.2015 till 31.08.2017) Functional Directors Shri C.K. Dey : Director (Finance) (From 01.03.2015) Shri S.N. Prasad : Director (Marketing) (From 01.02.2016) [Addl. Charge- Director (P) from 31.03.2017 till 18.06.17] Shri B. Dayal : Director (Technical) (From 11.10.2017) Shri R P Srivastava : Director (Personnel) [From 31.01.2018] Shri R R Mishra : Director (Personnel) [Addl. Charge] (From 19.06.17 till 30.01.2018) Shri S. Saran : Director (Technical) [Addl. Charge] (From 31.10.2016 till 10.10.2017) Part Time Official Directors Shri R. K. Sinha : Joint Secretary, MoC (From 05.08.2016) Shri R. Sinha Puri : Joint Secretary, MoC (From 09.06.2017) Shri Vivek Bharadwaj : Joint Secretary, MoC (From 30.8.2016 till 08.06.17) Independent Directors Ms. Loretta Mary Vas : (From 17.11.15) Dr S.B. Agnihotri : (From 17.11.15) Dr D.C.Panigrahi : (From 17.11.15) Dr. Khanindra Pathak : (From 17.11.15) Shri Vinod Jain : (From 17.11.15) Shri V K Thakral : (From 06.09.17) Shri B L Gajipara : (From 22.09.17) Permanent Invitees Shri R.R. Mishra : CMD, WCL (From 06.11.15) Shri S. Saran : CMD, CMPDI (From 01.01.16) Shri A. K. Gupta : Addl.Member (Traffic Transportation), Railway Board (From 05.08.16 till 31.01.2018) Company Secretary: Shri M.Viswanathan : (From 14.12.2011) 6 ANNUAL REPORT & ACCOUNTS 2017 - 2018 BANKERS, AUDITORS AND REGISTERED OFFICE LIST OF BANKS AS ON 31.03.2018 1. STATE BANK OF INDIA 2. PUNJAB NATIONAL BANK 3. UNITED BANK OF INDIA 4. CANARA BANK 5. ALLAHABAD BANK 6. UNION BANK OF INDIA 7. BANK OF BARODA 8. BANK OF INDIA 9. ORIENTAL BANK OF COMMERCE 10. HDFC BANK 11. ICICI BANK 12. CORPORATION BANK 13. STANDARD CHARTERED BANK 14. ANDHRA BANK 15. CITI BANK 16. DEUTSCHE BANK 17. IDBI BANK 18. UCO BANK 19. SYNDICATE BANK Statutory Auditor Registered Office Website Registrar & Share Transfer Agent M/s Chaturvedi and Co Coal Bhawan, Premises No-04 www.coalindia.in M/s. Alankit Assignment Limited Chartered Accountants MAR, Plot No-AF-III, Action Alankit Height, 1E/13, Jhandewalan 60, Bentick Street, Kolkata- Area-1A, New town, Rajarhat, Extension, 700069 Kolkata-700156 New Delhi – 110 055 Phone No: 011-4254-1234/2354-1234 Phone-033-23245555 Fax No: 011-4154-3474 Fax-033-23246510 E-mail id: [email protected] Website: www.alankit.com Toll free no-1860-121-2155 7 COAL INDIA LIMITED A MAHARATNA COMPANY CHAIRMAN’S STATEMENT Dear Members, I am delighted to welcome you to the 44th Annual General Meeting of Coal India Limited (CIL). The Directors’ Report and the Financial Statement for the year ended 31st March’ 2018 together with the report of Statutory Auditors and report and review of Comptroller & Auditor General of India are already with you. 1. Importance of coal and Coal India Limited India is on a high orbit growth trajectory expanding industrially and economically. Concurrently, with this exponential transformation, the country’s energy need is also on the increase. This is where coal steps in. You all are aware that in India Coal is the ready answer to escalating energy demand as around 56% of the India’s primary commercial energy is met by coal alone. Around 73% of the entire power generated in the country is coal based. The country’s planners however are alternatively exploring to shift from being a largely fossil driven energy economy to one that is powered by clean and renewable energy especially solar. This is certainly a welcome move as it would supplement coal’s role if not entirely substitute it. As an industry and nation, we will have to reconcile to the fact that both coal and renewables will coexist and complement each other in the years to come. Only then, we will be able to chart the course, which is sustainable, efficient, effective and competitive for India. On one hand, it will require us to reduce the development risks and constraints to coal mining and on the other, ensuring that the coal industry in India continues its focus on environment and sustainability practices. There has been significant growth on all parameters of environment and sustainability in coal mining in India – land reclamation, water conservation, forest and wildlife conservation, adoption of renewables, safety, community development and R&R, etc. However, more needs to be done and as one of the leading players in the Indian coal industry, CIL is committed to do more than what expected from it. But as base fuel for power, coal is expected to retain its position in the foreseeable future. What make coal such a preferred energy fuel is its abundance, availability and affordability. The estimated geological resource of India coal stood at 315.15 Billion tones as on 1st Apr’17. With the rural electrification programme and 24 *7 power for all, your company is poised to play a greater and more responsible role as energy supplier in fulfilling the noble cause of the government. Against this backdrop, you will be proud to know that your company, CIL, spearheads the country’s coal production and produce around 84% of the country’s entire coal output. It is only CIL, which virtually fuels and empowers the power sector in the country. It would not be an exaggeration to state that CIL is synonymous with India’s energy scenario. Notwithstanding the extraneous factors, CIL is committed to increase its coal supply and meet the coal demand in the country. We plan to do better on all fronts and are committed to make a difference. 2. Notable Achievements of 2017-18 The performance of Coal India Limited was amply satisfying in more than one during financial year 2017-18.