CIA-3

FINANCIAL MANAGEMENT

REPORT ON COAL INDIA LTD.

SCHOOL OF COMMERCE FINANCE AND ACCOUNTANCY

CHRIST (DEEMED TO BE UNIVERSITY),

DELHI NCR
 COAL INDIA LTD.

ABOUT THE COMPANY

Coal India Limited (CIL) is an Indian central public sector company owned by the Ministry of
Coal, Government of India. We are headquartered in Kolkata. It is the world's largest national
coal producer. He is also the seventh largest employer in India with approximately 272,000
employees. Coal mining in India has been largely a private enterprise.

This changed in September 1956 when the Indian government established its own coal
company, the National Coal Development Corporation (NCDC). Railroad-run mines were at the
core of his NCDC. This was intended to meet the country's burgeoning energy needs to support
its rapidly advancing industrialization through the government's five-year plan. In the same year,
the Singaleni Coal Mine Company, which had been operating in Andhra Pradesh since 1920,
also came under government control, with the central and state governments of Andhra Pradesh
acquiring 45% and 55% shares respectively.

CONCEPTUAL DEFINITIONS

Sales- A transaction between a buyer and a seller in which the seller sells intangible or tangible
goods, assets, or services for money is known as a sale. A sale is made between two or more
parties. In a broader sense, a sale can be understood as a contract between her two or more
parties, a buyer and a seller. A sale can also be defined as an agreement between his two parties
in the financial markets where the buyer and seller agree on a certain price for a security.

Operating Income- Operating profit, also known as operating income or earnings before interest
(EBIT), is the revenue remaining after deducting direct and indirect operating costs from sales
revenue. It can also be calculated from gross income less depreciation and operating expenses
that are not directly attributable to the production of goods. Interest expense, interest income and
other sources of non-operating income are not included in the calculation of operating income.

Earning per share (EPS)- Earnings per share (EPS) is a key financial indicator of a company's
profitability. It is calculated by dividing the company's net income by the total number of
outstanding shares. It is a tool often used by market participants to assess a company's
profitability before buying shares.
Dividend per share (DPS)- Dividend per share (DPS) is the total amount of dividends
attributable to each outstanding share of a company. By calculating the dividend per share, an
investor can determine the income she receives from the company per share. Dividends are
typically cash payments to the company's investors, but other types of payments are possible.

LAST 5 YEARS REPORT

BALANCE SHEET OF MAR 22 MAR 21 MAR 20 MAR 19 MAR 18

COAL INDIA (in Rs.
Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND
LIABILITIES

SHAREHOLDER'S
FUNDS

Equity Share Capital 6,162.73 6,162.73 6,162.73 6,162.73 6,207.41

TOTAL SHARE 6,162.73 6,162.73 6,162.73 6,162.73 6,207.41

CAPITAL

Reserves and Surplus 10,195.2 10,588.9 10,650.5 7,834.66 6,487.30

2 8 7

TOTAL RESERVES 10,195.2 10,588.9 10,650.5 7,834.66 6,487.30

AND SURPLUS 2 8 7

TOTAL 16,357.9 16,751.7 16,813.3 13,997.3 12,694.7

SHAREHOLDERS 5 1 0 9 1
FUNDS

NON-CURRENT
LIABILITIES

Long Term Borrowings 0.00 0.00 0.00 0.00 0.00

Deferred Tax Liabilities 24.52 27.56 0.00 0.00 0.00

[Net]

Other Long Term 5,348.89 4,937.78 4,617.66 4,099.36 3,700.98

Liabilities

Long Term Provisions 226.22 269.36 297.66 211.93 236.65

TOTAL NON- 5,599.63 5,234.70 4,915.32 4,311.29 3,937.63

CURRENT
LIABILITIES

CURRENT
LIABILITIES

Short Term Borrowings 0.00 0.00 0.00 0.00 0.00

Trade Payables 70.63 101.59 132.94 122.97 111.16

Other Current Liabilities 318.44 302.02 399.82 518.62 1,497.39

Short Term Provisions 93.65 108.52 137.10 90.30 224.03

TOTAL CURRENT 482.72 512.13 669.86 731.89 1,832.58

LIABILITIES

TOTAL CAPITAL AND 22,440.3 22,498.5 22,398.4 19,040.5 18,464.9

LIABILITIES 0 4 8 7 2

ASSETS
NON-CURRENT
ASSETS

Tangible Assets 420.74 348.87 302.39 291.97 300.75

Intangible Assets 2.14 1.35 0.20 0.46 0.44

Capital Work-In-Progress 53.02 85.24 128.33 142.63 119.00

Other Assets 2.56 2.56 8.32 8.32 15.69

FIXED ASSETS 583.60 524.19 496.40 482.08 435.88

Non-Current Investments 13,157.9 13,132.8 12,232.5 12,515.1 12,137.3

0 6 9 6 9

Deferred Tax Assets [Net] 0.00 0.00 0.00 0.00 0.00

Long Term Loans And 0.03 0.07 0.16 0.22 0.40

Advances

Other Non-Current Assets 5,193.88 4,637.60 4,391.95 4,080.72 3,738.67

TOTAL NON- 18,935.4 18,294.7 17,121.1 17,078.1 16,312.3

CURRENT ASSETS 1 2 0 8 4

CURRENT ASSETS

Current Investments 407.14 92.01 93.97 22.74 26.06

Inventories 13.16 1.00 14.98 30.67 21.39

Trade Receivables 2.36 11.99 7.97 0.25 0.27

Cash And Cash 629.69 230.27 1,071.48 253.51 488.08

Equivalents
Short Term Loans And 0.00 0.00 0.00 0.00 1.88
Advances

OtherCurrentAssets 2,452.54 3,868.55 4,088.98 1,655.22 1,614.90

TOTAL CURRENT 3,504.89 4,203.82 5,277.38 1,962.39 2,152.58

ASSETS

TOTAL ASSETS 22,440.3 22,498.5 22,398.4 19,040.5 18,464.9

0 4 8 7 2

FINDINGS

Sales of the company initially decreased from 2017-18, then increased from 2018-19, then
decreased in the next year and increased in the subsequent year.
Operating Income had a huge increase between 2017-18 and 2018-19.

EPS increased from 2017-18 to 2019-20, then decreased from 2020-21 and then had an
increase in 2021-22.
DPS had a continuous decrease from 2017-18 to 2019-20 then an increase in the subsequent
years.

SUGGESTIONS

Coal mining can make coal more competitive by removing minerals from it to produce higher
value products. Energy-dense, cleaner fuels improve boiler operation by reducing boiler ash
formation, minimizing pollution, ash handling and disposal.

NATIONAL MINERAL DEVELOPMENT CORPORATION LTD.

ABOUT THE COMPANY

Incorporated in 1958 as a Government of India public enterprise, National Mineral Development

Corporation (NMDC) is India’s largest producer of iron ore. Since inception, the corporation
under the administrative control of the Ministry of Steel, has been involved in the exploration of
a wide range of minerals including copper, rock phosphate, limestone, magnesite, diamond,
tungsten and beach sands amongst others in some of the most remote corners of the country.

VISION- To emerge as a global Environment friendly Mining Organization and also as a

quality Steel producer with a positive thrust on Social Development.

MISSION- To maintain its leadership as the largest iron ore producer in India, while
establishing itself as a quality steel producer and expanding business by acquiring and operating
various iron ore, coal and other mineral assets in India and abroad, rendering optimum
satisfaction to all its stakeholders.
 CONCEPTUAL DEFINITIONS

SALES-

A sale is a transaction between two or more parties exchanging tangible or intangible goods,
services, or property for money. In some cases, non-cash assets are paid to the seller. In financial
markets, a sale can also refer to an agreement between a buyer and a seller regarding a financial
guarantee, its price and specific arrangements for its delivery.

OPERATING INCOME-

Operating income is an accounting figure that measures the amount of profit a company makes
from its operations after deducting operating expenses such as wages, depreciation, and cost of
goods sold (COGS). Operating income (also known as operating profit) is the company's gross
revenue (gross sales minus his COGS) minus all operating expenses.

EARNINGS PER SHARE (EPS)-

Earnings per share (EPS) is calculated as a company's earnings divided by shares of common
stock outstanding. The resulting numbers serve as an indicator of the company's profitability. It
is common for companies to report his earnings per share adjusted for exceptional items and
potential share dilution. The higher the EPS of a company, the more profitable it is.
DIVIDEND PER SHARE (DPS)-

Dividends per share (DPS) is the sum of declared dividends paid by a company for each
outstanding ordinary share. This figure is calculated by dividing the total dividends paid by the
company over a period of time (usually one year), including interim dividends, by the number of
common shares outstanding. A company's DPS is often derived from the dividends paid in the
most recent quarter. It is also used to calculate dividend yield.

ANALYSIS AND INTERPRETATION

BALANCE SHEET OF MAR 22 MAR 21 MAR 20 MAR 19 MAR 18

NMDC (in Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND
LIABILITIES

SHAREHOLDER'S
FUNDS

Equity Share Capital 293.07 293.07 306.19 306.19 316.39

TOTAL SHARE 293.07 293.07 306.19 306.19 316.39

CAPITAL

Reserves and Surplus 34,550.9 29,463.0 27,227.7 25,645.3 24,037.4

0 7 6 4 4
TOTAL RESERVES 34,550.9 29,463.0 27,227.7 25,645.3 24,037.4
AND SURPLUS 0 7 6 4 4

TOTAL 34,843.9 29,756.1 27,533.9 25,951.5 24,353.8

SHAREHOLDERS 7 4 5 3 3
FUNDS

NON-CURRENT
LIABILITIES

Long Term Borrowings 1,668.22 546.43 0.00 0.00 0.00

Deferred Tax Liabilities 0.00 0.00 0.00 0.00 0.00

[Net]

Other Long Term 156.13 4.57 5.51 0.00 0.00

Liabilities

Long Term Provisions 1,092.00 945.16 827.88 768.39 714.12

TOTAL NON- 2,916.35 1,496.16 833.39 768.39 714.12

CURRENT
LIABILITIES

CURRENT
LIABILITIES

Short Term Borrowings 1,815.13 1,448.04 565.57 364.15 500.09

Trade Payables 967.22 360.26 225.55 202.74 159.54

Other Current Liabilities 4,134.88 3,626.30 1,763.01 2,453.91 2,854.14

Short Term Provisions 14.39 98.00 222.47 41.26 27.40

TOTAL CURRENT 6,931.62 5,532.60 2,776.60 3,062.06 3,541.17

LIABILITIES
TOTAL CAPITAL AND 44,691.9 36,784.9 31,143.9 29,781.9 28,609.1
LIABILITIES 4 0 4 8 2

ASSETS

NON-CURRENT
ASSETS

Tangible Assets 3,522.13 2,677.28 2,616.84 2,554.49 2,507.53

Intangible Assets 443.90 441.17 399.89 166.20 164.17

Capital Work-In-Progress 18,294.6 17,076.6 15,471.5 13,792.4 12,519.9

9 8 6 5 0

Other Assets 0.00 0.00 0.00 0.00 0.00

FIXED ASSETS 22,265.7 20,246.5 18,517.9 16,513.1 15,191.6

2 5 3 4 0

Non-Current Investments 987.43 984.88 985.59 939.32 786.45

Deferred Tax Assets [Net] 530.95 408.28 397.06 582.73 385.71

Long Term Loans And 682.99 901.16 866.16 796.49 779.68

Advances

Other Non-Current Assets 4,449.79 3,695.91 3,075.48 2,986.32 2,626.23

TOTAL NON- 28,916.8 26,236.7 23,842.2 21,818.0 19,769.6

CURRENT ASSETS 8 8 2 0 7

CURRENT ASSETS

Current Investments 0.00 0.00 0.00 0.00 0.00

Inventories 2,164.90 921.72 723.51 666.17 571.69

Trade Receivables 2,954.30 2,139.89 2,223.71 1,424.51 1,472.74

Cash And Cash 7,940.17 5,806.01 2,392.34 4,607.72 5,438.22

Equivalents

Short Term Loans And 0.00 0.00 0.00 0.00 0.00

Advances

OtherCurrentAssets 2,715.69 1,680.50 1,962.16 1,265.58 1,356.80

TOTAL CURRENT 15,775.0 10,548.1 7,301.72 7,963.98 8,839.45

ASSETS 6 2

TOTAL ASSETS 44,691.9 36,784.9 31,143.9 29,781.9 28,609.1

4 0 4 8 2

The sales over the years have been constantly rising, earlier at a decreasing rate and then
on an increasing rate after 2019-20.
The earning per share (EPS) rose till 2018-19, but decreased in the subsequent year. From
2019-20, the EPS tends to increase at an increasing rate till date.

The dividend per share (DPS) is increasing over the years 2017-18 till 2021-22, again
earlier at a decreasing rate, but later on an increasing rate. There was a very minor
deviation where the DPS decreased after 2018-19, but right after that it rose.