Presented By:

Himanshu Jain

913003

Presentation on

Intro. About Company

Coal India Limited (CIL) as anorganized state owned coalmining corporate came into beingin November 1973 with thegovernment taking over privatecoal mines.

Coal India Ltd. today is the singlelargest coal producer in the world.

CIL also manages 200 otherestablishments like workshops,hospitals etc. It also owns 26technical & management traininginstitutes.

Intro. About Industry

The Indian coal industry is the

fourth largest in terms of coal

reserves and third largest in

terms of coal production in the

world.

The Indian coal industry needs

more investment and private

players to raise its production level.

Coal has been recognized as

the most important source of

energy for electricity,generation and industries.

History

1951 the Working Party for the coal

Industry was set up which included

representatives of coal industry,

labour unions and government

which suggested the amalgamation

of small and fragmented producing

units. Thus the idea for a nationalized

unified coal sector was born.

National Coal Development

Corporation was formed with 11

collieries with the task of exploring

new coalfields and expediting

development of new coal mines.

Achievement

Coal India Limited bagged first

prize of Official language

Implementation Award

Coal India wins

India Pride Award 2011

Company of the Year Award

to Coal India on

19 September 2011

Coal India Limited was granted the

'Maharatna' status on 11 April,

2011 by the Government of India.

Achievement

Produces around 81.1% of

India's overall coal production

In India where approximately 52% of

primary commercial energy is coal

dependent, CIL alone meets to the tune

of 40% of primary commercial energy

requirement

Feeds 82 out of 86 coal based

thermal power plants in India

Commands nearly 74% of the

Indian coal market

Products

COKING

COAL :

Products

NON-COKING COAL:

By Products

Facet

(Q4) January - March

2013

(Q4) January - March

2012

Increase in

absolute terms

Growth %

Full Year April

2012 -March 2013

Full Year April 2011

March 2012

Increase in

absolute terms

Growth %

Production

143.3 MTs

144.60 MTs

- 1.30 MTs -0.9%452.21

MTs435.84

MTs16.37 MTs

3.8%

Coal Off-take

129.95 MTs

122.83MTs

7.12 MTs 5.8%465.18

MTs433.08

MTs32.10 MTs

7.4%

Coal Supplies to Power Utilities

98.65 MTs

89.93 MTs

8.72 MTs 9.7%345.43

MTs312.07

MTs33.36 MTs

10.7%

Coal Supply to

NTPC TPPs

37.76 MTs

35.27 MTs

2.49 MTs 7.1%132.74

MTs115.84

MTs16.90 MTs

14.6%

Average Loading

of 213.6 191.3 22.3 11.7% 186.4 167.7 18.7 11.2%

Performance Highlights

Financial Highlights

ParticularsApril'12 to March'13

(Cr.)April'11 to March'12

(Cr.)Growth %

Gross Sales 88,281.32 78,410.38 12.59%

Net Sales 68,302.74 62,415.43 9.43%

Profit Before Tax (PBT)

24,979.04 21,272.66 17.42%

PBT/Sales (%) 36.57% 34.08% -

Profit After Tax (PAT) 17,356.36 14,788.20 17.37%

PAT/Sales (%) 25.41% 23.69% -

Net Worth 48,471.99 40,453.02 19.82

Particulars April'12 to March'13 April'11 to March'12 Growth %

Export of Coal

India exports coal to the

neighbouring countries to meet

their demand of coal.

The traditional buyers of Indian

coal are Nepal, Bangladeshand Bhutan.

During 2010-2011 the quantity

of coal exported by CIL was 65,831 tonnes (Provisional)

Policies

New R&R policy of CIL 2012

Coal India Whistle blower policy 2011

Uniform Deposit Policy for CIL and its subsidiaries

CIL’s Corporate Environmental Policy

SWOT Analysis

World's largest producer of mica

Third largest producer of coal and

lignite & barytes

Ranks among the top producers of

iron ore, bauxite, manganese ore

and aluminum.

Labour easily available

Strength

Large quantity of high quality reserves

SWOT Analysis

Coal mining in India is associated

with poor employee productivity.

The output per miner per annum in

India varies from 150 to 2,650

tonnes compared to an average of

around 12,000 tonnes in the U.S.

and Australia

Historically, opencast mining has

been favored over underground

mining. This has led to land

degradation, environmental

pollution and reduced quality of

coal as it tends to get mixed with

other matter

Weakness:

SWOT Analysis

Potential areas for exploration ventures include gold, diamond,

copper, lead, zinc, nickel, cobalt, molybdenum, lithium, tin, tungsten, silver, platinum group of metals and other rare metals, chromites and manganese ore,

and fertilizer minerals.

Considerable potential exists for

setting up manufacturing units for value added products.

Opportunities:

SWOT Analysis

Large integrated international

metal manufacturers including

POSCO, Mittal Steel and Alcan

have announced plans for

expansion in India

Mining companies and

equipment suppliers are under

the constant threat of being taken

over by foreign Companies.

Threats:

Politicians undervalue the industry's

contributions to the economy.

Conclusion

Despite the above Risks, We

think that Coal India is one of

the best quality stocks to come

out in India’s Primary Markets.

However investors should be

wary of the risks which will be

glossed over by the mainstream

media and brokerages.

It is by being aware of the risks,

that prudent risk management can

be done which is essential to

successful investing.

Suggestion

Need to Review Railway

Freight Charges

Rationalization of

Cess/ Royalty Structure

Need to Curb

Coal Mafia Activities