journal of management - ganesh chandra chattopadhyay* · 2014-01-23 · dey, a. k. (1993) has...

SIT Journal of Management Vol. 3. No. 2: December 2013, Pp. 73-87

Chattopadhyay ISSN: 2278-9111

An Assessment of Profitability Strength of Eastern Coalfields Limited during 2002-03 to

2011-12.

Ganesh Chandra Chattopadhyay*

Abstract

A company should earn reasonable profits to survive and grow over a long period of time.

When owners invest their funds in the expectation of reasonable return, the management of

the firm is eager to measure its operating efficiency through profit. Thus, the operating

efficiency of a firm and its ability to ensure adequate returns to its shareholders /owners

depends finally on the profits earned by it. Failure to do that will result in loss of creditors’

confidence which may even cause for the closure of the company. Keeping in mind the above

fact, the Profitability Strength of Eastern Coalfields Limited (ECL), a leading subsidiary of

Coal India Limited (CIL) is studied and analyzed for the period 2002-03 to 2011-12 (i.e.10

years) using Profitability Ratios to evaluate the strength of the company in generating profits

during that period. For this purpose company’s annual reports and accounts have been used

as a secondary source. An attempt has been made in this article to find out the strength and

weakness of different aspects of profitability of the company and to suggest remedial

measures if needed to overcome any deficit in this regard.

Keywords: Profitability, Ratio Analysis, Operating Efficiency, Coefficient of Variation,

Industry Average etc.

*Dr. Ganesh Chandra Chattopadhyay, Assistant Professor, Department of Management

Science, Bengal Institute of Technology & Management, Doranda, Santiniketan, West

Bengal, India, Email: [email protected]



I. Introduction

Profitability of a firm refers to the ability of a firm to make profits on a continuous basis. It is

the main objective of each business concern. A company should earn reasonable profits to

survive and grow over a long period of time. Without profits a business will find it difficult to

attract capital and assure its creditors and owners the safety of their funds. Thus, the

operating efficiency of a firm and its ability to ensure adequate returns to its shareholders

/owners depends finally on the profits earned by it. It is extremely significant and essential

for smooth running of the business. Further, for better control and to maintain an optimum

level of profit a firm must ensure that it does not suffer from lack of adequate capital (i.e.

Under-capitalization) and at the same time it does not have excess capital (i.e. over-

capitalization). Thus, there must be a balance between these two opposing situations. In this

paper we have computed certain profitability ratios which are suitable for this company to

measure the efficiency or strength of it in making profits from its operating activities.

II. Profile of Eastern Coalfields Limited (ECL)

Formed on November 1, 1975, ECL is one of the important subsidiaries of Coal India Ltd

(CIL), which is the first holding company for coal in the country. ECL inherited all the

private sector coalmines of Raniganj Coalfields, a coalfield which is the birthplace of coal

mining in India. The registered and corporate office of ECL is at Sanctoria, Asansol, WB. Its

command area is 1620 sq km and is situated in two states, West Bengal and Jharkhand. The

strength of ECL lies in its inventory of premium grade Coal at Raniganj Coalfields, the

average ash content of which is less than 20%. It has a coal reserve of around 44.392 billion

tonne up to a depth of 600 meters as on 01.04.2011. It is the 7th largest producer of coal in

India. It is one of the best quality coal producing companies in India having a reserve of

25.869 Billion Tonne of premium grade Coal at Raniganj Coalfields as on 01.04.2011 (as per

GSI). As on date there are 111 working mines in ECL, 90 being underground mines, 14

opencast mines and 7 mixed mines ( as per Long Term Plan). It is annually producing around

34 MT tonne of coal and catering primarily to the needs of the power sectors besides infinite

industrial units. Existing work force in ECL was 78,009 as on April 1, 2012. The annual

turnover of the company for the year 2011-12 was around Rs. 8262 crore.



III. Objectives of the study.

i) To measure the profitability strength of Eastern Coalfields Limited during the study

period based on some important Profitability Ratios.

ii) To justify profits with the level of activity achieved by ECL during our study period.

iii) To identify the strength and weakness of different aspects of Profitability of ECL.

iv) To suggest certain important factors to improve profitability of the company.

IV. Literature Review and Research Gap

It is observed that there have been only few research works in the areas of finance whereas

most of the works relate to technical areas of the coal industry. Thus, seeing the research gap

we have undertaken the study with the conviction that it would help in identifying the

weaknesses and strengths of the Eastern Coalfields Limited in financial affairs that would

contribute to the turnaround of the company on sustainable basis. Accordingly, we have

presented below the essence of a few important and related research works in this part:

Dey, A. K. (1993) has studied working capital position of ECL and reported shortage of

working capital, poor inventory management system, and shortage of cash balances due to

continuous loss from operating activities etc. Debtor’s turnover though improved during the

study period, trend was not satisfactory. Chakraborti, U. K. (1997) has revealed irregular

trend of the production of coal and productivity of labour in ECL during1973 to 1996, no

matching between average costs of production and price of coal, underutilization of new

technologies and also mentioned increase in money wage is one of the main causes for the

operating loss. Dutta, R. (2000) found certain points affecting the growth of ECL as

compared to WCL were: decreasing trend in production and productivity due to under

utilization of assets, unfavorable technologies, very poor relationship between executives and

workers, excess of operating costs over sales etc. Pan, S.K. (2003) observed financial

incentive scheme was the most powerful motivational approach. Study revealed whenever

incentive schemes were introduced in ECL had a favourable effect on cost of production and

performance of the ECL. Mehta & Dasgupta (2003) in their study “Why Long wall in India

has not succeeded as in other developing country like China” have concluded that the basic

factor is the difference in attitude and determination to go ahead with this globally accepted

technology. Kumar, V. et al. (2003) in their article “Hydraulic Stowing of Pond Ash in

Underground Mines of Manuguru, India” have indicated that pond ash is a cost effective and

a good substitute of sand for stowing into underground coal mines. Lahiri-Dutt, K. (2007)



has discovered that causes of illegal coal mining in Eastern India are buried under the layers

of complexities of outdated colonial laws of land acquisition and state-ownership of coal

resources, lack of safeguards and protection of poor people, and the disregard for social

impacts by mining engineers and technologists. Singh, G. (2008) has concluded that in spite

of its environmental problems coal is the only natural resource and fossil fuel, which is

available in abundance in India. Thus, the challenge is to apply the right technology in the

most efficient and environmental friendly way. Rai, S.K. (2010) has investigated the cost

structure of coal production in Gevra Area of SECL and successfully reduced roughly 30 %

of the total cost concentrating on stores cost resulting increase in profit with the help of

certain steps like preparing a material budget etc. especially in opencast mines. Tadeusz, W.

et al (2010) have suggested that current focus on carbon capture and geological sequestration

may be misplaced and the global community should, instead, be devoting its mind to

conservation and increasing efficiency of electrical power generation from coal.

V. Methodology:

We have mainly used secondary data for the study which has been collected from the Annual

Reports of the company for a period of ten years from 2002-03 to 2011-12. However,

Primary data in the form of clarifications from the executives were also collected. Besides

these, we have collected necessary supporting documents and details from books, journals,

company publications and the like. Moreover, we have done editing, classification and

tabulation of financial data as per our requirements. We must confess here that we are very

grateful to the ECL officials for their ungrudging help and co-operations.

For analyzing the data we have used here two types of tools, viz., Accounting tools and

Statistical tools. Under accounting tools, we have mainly used the ratio analysis, which is

universally accepted technique for judging financial performance of a company and under

statistical tools we have used Average, Standard Deviation, Co-efficient of Variation etc. for

analyzing the profitability strength of the company.

Moreover, considering the negative capital employed, negative net worth and time to time

negative profits of the company we have chosen certain profitability ratios that appeared us as

the most appropriate one to arrive at reliable and logical findings bearing in mind the nature,

purpose, objectives of the study.



VI. Limitations of the study:

i) The study is limited to 10 years performance of ECL from 2002-03 to 2011-12.

ii) The data used in the study are collected mainly from published annual reports of ECL

and further as per requirements and necessity some data are grouped and sub-grouped.

iii) We know that ratios are an aid to analysis and interpretation but not a substitute for

sound thinking. Thus, the financial analyst needs to use his own judgment on the basis

of the combined effects of two or more ratios to assess the profitability of the company.

VII. Analysis of Profitability Ratios of ECL during 2002-03 to 2011-12.

For easy explanation and analysis we have presented below two Tables. Table 1 contains

different components of Profitability Ratios and Table 2 contains relevant Profitability

Ratios. Under Profitability Ratios we have considered Gross Profit Ratio (GPR), Net Profit

Ratio (NPR), Cash Profit Ratio (CPR) and Return on Total Assets Ratio (ROTA) and one

expense ratio that is Salary & Wages to Total Expenses Ratio (SWTER) which we consider

more relevant here for measuring Profitability strength of ECL during our study period. The

analysis of these ratios is done after presentation of the Profitability Ratios.

Table 1 Different components of Profitability Ratios

Name of the Components 2002-03 2003-04 2004-05 2005-06 2006-07

Net Sales 2729.06 2746.24 3048.19 3417.68 3518.21

Gross Profit -295.51 -322.24 -678.39 382.01 118.53

Profit before Tax (PBT) -338.78 -326.38 -679.20 371.96 118.12

Profit after Tax (PAT) -338.78 -326.38 -679.20 363.86 110.60

Cash Profit 36.12 28.94 -444.10 623.19 356.05

Annual Operating Expenses 3356.90 3638.75 4016.71 3530.56 3742.29

Salary & Wages 1911.93 2227.36 2625.71 1981.69 2160.87

Total Assets 3573.70 3253.09 2945.90 3478.07 3021.75

Capital Employed Negative Negative Negative Negative Negative

Name of the Components 2007-08 2008-09 2009-10 2010-11 2011-12

Net Sales 3187.61 3837.40 5227.78 5882.60 8262.90

Gross Profit -1026.37 -2105.63 333.41 167.25 1083.81



Profit before Tax (PBT) -1026.66 -2105.70 333.40 106.57 962.13

Profit after Tax (PAT) -1029.94 -2109.09 333.40 106.57 962.13

Cash Profit -764.95 -1701.83 648.37 565.25 1600.21

Annual Expenses 4433.61 6251.23 5494.12 6130.40 7598.58

Salary & Wages 2750.71 4308.64 3423.16 4042.04 5087.34

Total Assets 2728.87 2803.43 3586.16 3894.47 6009.75

Capital Employed Negative Negative Negative Negative Negative

Source: Annual Reports and Accounts of ECL

Table 2: Profitability Ratios for Examining Profitability Strength of ECL

Source:

Computed from the data given in Table 1

Analysis of the Profitability Strength of ECL on the basis of Profitability Ratios:

i) Gross Profit Ratio (GPR): This ratio is calculated based on the following formula:

Gross Profit Ratio = (Gross Profit / Net Sales) * 100.

Gross Profit is the result of the relationship between sales price, sales volume, and costs. This

ratio indicates the proportion of cost of production to sales. A high gross profit margin is a

sign of good management as it implies that cost of production of the firm is relatively low.

Alternatively, a low margin is definitely a danger signal.

YEAR GPR NPR CPR ROTA SWTER

2002-03 -6.76 -12.41 1.32 -9.48 56.96

2003-04 -18.25 -11.88 1.05 -10.03 61.21

2004-05 -19.95 -22.28 -14.57 -23.06 65.37

2005-06 8.10 10.88 18.23 10.70 56.13

2006-07 1.34 3.36 10.12 3.91 57.74

2007-08 -33.35 -32.21 -24.00 -37.61 62.04

2008-09 -55.86 -54.87 -44.35 -75.11 68.92

2009-10 5.48 6.38 12.40 9.30 61.24

2010-11 2.84 1.81 9.69 2.74 65.93

2011-12 13.12 11.65 19.37 16.81 66.95

Trend Upward Upward Upward Upward Upward

MEAN -10.33 -9.96 -1.07 -11.18 62.25

SD 21.65 21.49 20.56 27.96 4.44

|C. V.| (%) 209.64 215.86 1914.26 249.99 7.14

Industry Avg 25.99 25.5 35.55 17.36 47.52



Table 2 shows that the gross profit ratio has fluctuated from -55.86 being the lowest ratio in

the year 2008-09 to 13.12, the highest ratio in the year 2011-12. In the year 2008-09 the cost

of production was the highest during the period under study and this was 155.86 % (i.e. Total

cost = Sales price + Loss = 100 + 55.86 = 155.86) of the sale price of the coal per tonne

whereas, cost of production was the lowest in the year 2011-12 which was nearly 91.90 %

(i.e. Sales price - Profit) of the sales price of coal per tonne. It may be noted here that the

highest cost of production of the year 2008-09 was due to heavy expenditure on remuneration

of the employees on account of pay revision as per National Coal Wage Agreement (NCWA)

- VIII and provision for actuarial gratuity and leave encashment. It is observed around 56 to

69 % of the total expenditure is usually incurred for the salary & wages of the employees.

However, in totality the company has to reduce its cost of production to make a turnaround in

reality. The mean of this ratio is -10.33 % with standard deviation 21.65 % and coefficient of

variation 209.64 %. The high degree of C.V. indicates high volatility in this ratio.

Figure 1 showing the graphical representation of this ratio reflects the above fact. However,

it has started improving after 2008-09 onward and has an upward trend indicating a

favourable signal to the company though it was greatly affected in the year 2008-09.

ii) Net Profit Ratio (NPR): This ratio is calculated based on the following formula:

Net Profit Ratio = (Profit before Tax / Net Sales) * 100.

The net profit margin is an indicator of management’s ability to operate the business with

sufficient surplus. By net profit we have considered here Profit before Tax (PBT). Reason is

that Profit before Tax can highlight on the operating efficiency of the company which is very

important for a sick company like ECL and further this formula is followed by the industry

(CIL) and hence it is useful for comparing its performance with the industry.

Table 2 exhibits that this ratio has fluctuated from -54.87 % being the highest loss figure in

the year 2008-09 to 11.65 % being the highest profit figure in the year 2011-12. The year

2011-12 has given us the highest ever performance followed by 2005-06, the second highest

and the year 2009-10 being the third highest performing year during our study period. The

mean value of this ratio is 9.96 % with standard deviation 21.49 % and coefficient of

variation 215.86 %. The mean value implies that the company has incurred loss of around 10

paisa for every rupee of sale during our study period. The high degree of C.V. indicates that

there is much volatility in this ratio.

From the Annual Reports of the company and from consultation with company officials, we

have found that a part of loss for the year 2003-04 and 2004-05 and 2007-08 was for pay



revision as per NCWA-VII and NCWA-VIII negotiation respectively. A huge loss for the

year 2008-09 was mainly due to enormous provision for pay revision as well as for actuarial

gratuity and leave encashment. But, the loss for the year 2002-03 was mainly due to decrease

in production followed by decrease in sales revenue. Further, we came to know from our

analysis that profit for the year 2009-10 would have been increased had there been no

provision for pay revision as per NCWA-VIII negotiation. However, it has started improving

after 2008-09 which is a good signal for the company for its turnaround. Moreover, one

interesting thing may be observed from the Table that net profit ratio of the years 2003-04

and from 2005-06 to 2009-10 has been better than gross profit ratio which is very unusual.

Our enquiry reveals that this happened due to waiver of interest in 2003-04, waiver of

electricity charges and for interest received from Term Deposit with bank in 2005-06 and

2006-07 whereas it is due to interest received in the years 2007-08 to 2009-10. Figure 2 at

the end showing the graphical presentation of the net profit ratio exhibits that though it

deteriorated in 2007-08 and 2008-09, there is much improvement in the curve after 2008-09

onward and overall it has an upward trend over the study period, a good signal for ECL.

iii) Cash Profit Ratio (CPR): This ratio is calculated based on the following formula:

Cash Profit Ratio = (Cash Profit / Net Sales) * 100.

This ratio is more reliable indicator of performance and efficiency of operation in terms of

cash generation as it is not affected by the method of depreciation. It is very essential for a

company to earn cash profit from operations for smooth running of its day to day operating

activities and for its survival. Table 2 clearly shows that the ratio has varied from -44.35 %

being the lowest ratio in the year 2008-09 to 19.37 % being the highest ratio in the year 2011-

12 during our study period. The year 2005-06 has given the second highest ratio of 18.23 %

and so on. The reasons for negative ratios are mainly due to increase in remuneration and

retirement benefits of the employees which are already discussed.

The mean value of this ratio is -1.07 % with standard deviation 20.56 % and the highest value

of coefficient of variation 1914.26 %. The mean value implies that the company has incurred

cash loss of around 1 paisa for every rupee of sale value during our study period. The highest

degree of C.V. indicates that the ratio has the highest volatility and inconsistency as

compared to other profitability ratios. Figure 3 at the end showing the graphical

representation of the cash profit ratio exhibits that the company has improved the situation

after 2008-09 onward and has an upward trend, a good signal for the turnaround of ECL.



iv) Return on Total Assets (ROTA): It is calculated based on the following formula:

Return on Total Assets = (Profit before Tax / Total Assets) * 100.

This ratio is a central measure of the overall profitability and operational efficiency of a firm.

It shows the interaction of profitability and activity ratios. Table 2 shows that this ratio for

ECL has fluctuated between -75.11 % being the highest negative return in the year 2008-09

and 16.81 % being the highest positive return in the year 2011-12. The reasons are already

mentioned earlier in net profit ratio. This fact implies that though there has been proper

utilization of assets confirmed from efficiency ratios, there have been losses because of heavy

provisions charged against profit. Thus, if this trend is checked it would give impressive

results in the years to come. The highest positive return of the year 2011-12 is because of

overall improvement in the performance of the company and so in 2005-06, and 2009-10.

The mean value of this ratio is -11.18 % with S.D. 27.96 % and C.V. 25 %. The high degree

of C.V. ratio indicates high volatility in this ratio. We also observe that the ratios for the year

2004-05, 2007-08 and 2008-09 are poorer than the average whereas rest of the years are

having ratios better than the average. Figure 4 at the end viewing the graphical presentation

of the ‘return on total assets’ ratio shows that the curve has turned upward after 2008-09.

Further we came to know from the Annual Report & Accounts as well as company officials

that there is further improvement in the performance of the company in the year 2012-13 and

thereafter.

v) Salary and Wages to Total Expenses Ratio (SWTER): This ratio is calculated as:

Salary and Wages to Operating Expenses Ratio =

(Total Salary and Wages for the period / Total Expenses) * 100.

This ratio answers to what portion of total expenses is represented by salary and wages. A

high ratio which is above the standard or industry average is a cause of concern for a firm.

From analysis we have understood that a lion’s share of operating expenses is incurred for the

remuneration of the employees of the company. For that we have computed this particular

expense ratio to find out the impact of salary and wages on total expenses and particularly on

operating expenses and on profit of the company during the study period.

Table 2 exhibits that the ratio has ranged between 56.13 % in the year 2005-06 to 68.92 % in

the year 2011-12. On an average the company pays around 62 % of the total expenses for

remuneration of the employees. Thus, we understand from the analysis of the data that a

lion’s share of expenses is spent on account of remuneration. The highest ratio of the year



2008-09 is mainly due to same reason, the fact that we have already discussed. In case

number of employees decrease and certain payments related to overtime wages etc. are

controlled then this expenses can be brought down to an optimum level. The lowest value of

C.V. (7.14 %) confirms the least variability in this ratio implying that the proportion of salary

and wage expenses to total expenses is nearly stable. Hence, this ratio at present is very

unsatisfactory. Figure 5 at the end showing the graphical presentation of this ratio exhibits

that the ratio just has an upward trend. Interestingly, though number of employees has

reduced over the study period, proportion of salary to total expenses has not reduced to that

extent because of enhancement and revision in pay structure as per different wage

negotiations (i.e. National Coal Wage Agreements). If this area improves in the coming years

overall profitability of the company would also improve further.

VIII. Findings of the Study:

Our detailed findings based on the above analysis are presented below:

i) Gross Profit Ratio has been though unstable in the earlier years of our study period, now

started improving after 2008-09 with upward trend. Thus it is satisfactory and gives a good

signal to the company. However, the trend is to be maintained in the coming years. In the

year 2008-09 the cost of production was as high as 155.86 % of the sale price of the coal per

tonne whereas, cost of production was the lowest in the year 2011-12 which was nearly 87 %

of the sales price of coal per tonne. The most important factor dominating the cost of

production is the remuneration of the employees.

ii) Net Profit Ratio has also shown an upward movement indicating much improvement in

this ratio over the study period. This improvement gives a good signal for the survival of the

company but from our enquiry and analysis we find that a part of this improvement was due

to waiver of interest and electricity charges and interest received from Term Deposit in the

earlier years which are non-operating extraordinary incomes and non-operating income.

However, the year 2011-12 has achieved the highest performance for overall improvement

where as huge loss for the year 2008-09 is due to heavy provision for pay revision as stated.

iii) The Cash Profit Ratio has shown much improvement during study period and is having

upward trend. Earning cash profit from operations is very vital for a concern for smooth

running of its daily operating activities and survival. Thus, this ratio gives a pleasing result.



iv) The upward trend of Return on Total Assets Ratio again represents improvement in this

ratio. At the present situation the ratio is satisfactory. We also realize from our analysis that,

though there have been proper utilization of assets there have been losses because of heavy

provisions mainly for enhanced remuneration. Thus, any control over remuneration and / or

proper utilization of manpower would improve overall profitability of the company.

v) From Salary and Wages to Total Expenses Ratio we understand that a lion’s share of

operating expenses is spent for remuneration of the employee. It is around 56 % to 69 % of

the total expenses. The just upward trend of this ratio implies that though number of

employees has gone down over the study period, proportion of salary to operating expenses

has not decreased to that extent because of enhancement and revision in pay structure as per

different wage negotiations under various National Coal Wage Agreements. Thus, this

situation calls for corrective measures to improve the overall profitability of the company.

vi) From comparative study on profitability we observe that though ECL has shown a great

improvement in its profitability strength in the recent years, it is far behind the industry

average (CIL). The main reason is the higher proportion of its operating cost and mainly it is

due to higher salary and wages expenses for its larger size of work force, less mechanizes

system or lack of modern cost saving technology and less number of opencast mines as

compared to the industry. On an average, when ECL has spent around 62 percent of total

expenses for salary and wages during the study period, industry (CIL) has spent around 48

percent, i.e.14 percent less than the ECL. Usually cost of production of coal from

underground mines is more than the cost of production of coal from the open cast mines

because of less mechanization and less productivity of underground mines. Thus, cost of

production of ECL is naturally more and hence its profit from sale of coal per tonne is less.

vii) We also realize from our study that reserve of 25.869 Billion Tonne of premium grade

Coal as on 01.04.2011 (as per GSI) at Raniganj Coalfields with average ash content less than

20% which can be blended with high ash coal from other subsidiaries to satisfy MoEF

stipulations can easily be sold at higher prices which would help to improve profits further.

Again, reserves of 18.523 Billion Tonne of Coal down to a depth of 600 meter at Jharkhand

have a scope for comparatively easy extraction by open cast mining. As demand is more than

the supply position and ECL’s workmen is capable of working in difficult conditions there is

a great hope of increasing production as well profits in due course of time.



IX. Suggestions for improving Profitability:

Following procedures may be suggested for improving the Profitability of the company:

1) For the survival of ECL in the long run either salary & wages has to be controlled by

taking different measures or volume of sales has to be increased by enhancing productivity

and production through more mechanized processes with proper utilization of manpower.

2) Cost transparency and proper classification of cost may be done for cost reduction further.

3) Number of opencast mines in ECL has to be increased.

4) Investment is essential for more mechanization in the production process to improve

production, productivity and hence profitability. Though production from opencast mines has

increased, production from underground mines of ECL especially Raniganj coalfield which

produces premium grade coal and gets a better market price has not increased to that extent.

This needs further mechanization. We know productivity is far better in countries like the

USA, China etc. and further there is significant shortage of supply for coal in India. Thus,

there is enough scope for improvement in production and profitability.

5) To take care of mechanism like e-marketing, e-auction & e-booking and further to have

control on pilferage and to secure full co-operation from Governments, various Trade Unions,

employees and other stake holders and so on for fulfilling this dream.

X. Conclusions.

We can conclude that all the profitability ratios of ECL are very satisfactory and the company

is performing well at the present time as compared to earlier years. They have shown radical

improvements especially after 2008-09 and further they all have shown upward movements.

We also observe that the company has made profits in the years 2005-06 and 2006-07 and

then four years at stretch from 2009-10 to 2012-13. However, the year 2012-13 is beyond our

study period. The year 2011-12 has made a profit of Rs. 962.13 crore and amusingly in the

year 2012-13 the company has crossed all the earlier barriers and records of performances

and made highest ever profit of Rs. 1655.54 crore after deduction of tax. Thus, overall

performance of the company is very satisfactory at the present time.

However, it may be remembered that though all the profitability ratios have improved

extremely well in recent time, are yet lagging behind the industry and thus need further

improvements to be at par with the industry. For that, the company has to improve its profits

consistently by increasing production and productivity with proper utilization of both human

and non-human resources. If this happens and further the suggestions as are stated in Point

No. IX above are given a thought with others, the company certainly would make a



turnaround and come out of the sickness sooner than expected and become a commendable

subsidiary of Coal India Limited. However, these findings are applicable only for ECL and

similar concerns again based on the company reports for the period 2002-03 to 2011-12.

However, the company needs further improvements to be at par with the industry.

References:

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Reprint.

5. Kishore, R.M. (2007): “Financial Management”, Taxman Allied Services (P) Ltd., New Delhi, 6th

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The International Conference on Fly Ash Utilization., VI, Manuguru, India.

12. Mehta, S. R., & Dasgupta, S. (2003). Why Longwall in India has not Succeeded as in other

Developing Country Like China. IE(I) Journal-MN , 17-20.



13. Pan, S.K. (2003). An Analysis of Different Incentive Schemes and Their Effect on Human

Resources Develoupment - A case study in the Eastern Coalfields Limited.: Unpublished PhD.

Thesis submitted to The University of Burdwan, Burdwan.

14. Rai, S. K. (2010). An Exercise in Cost Reduction in Coal Industry. Coal Mining Technology and

Management , 14 (1-4), 28-29.

13. Singh, G. (2007). Assesment of Environmental Impacts of Over Burden Dumps in Mining Areas.

The Indian Mining & Engineering Journal , 46 (07), 18 - 22.

15. Tadeusz, W., & Gregory, D. (2010). A global coal production forecast with multi-Hubbert cycle

analysis. Elsevier , 3109-3122.

C. Journals & Reports

16. Annual Report & Accounts (2002-03 to 2011-12), Eastern Coalfields Limited.

17. Annual Report & Accounts (2000-01 to 2009-10), Coal India Limited.

18. Coal Directory of India (2007-08), Govt. of India, Ministry of Coal, Coal Controller’s

Organisation, Kolkata.

19. Glimpses of Coal India (2006), CIL, Kolkata.

20. The Management Accountant, Journal for CMAs, The Institute of Cost Accountants of India

(Various issues).

D. Website

21. http//www.coalindia.in.

22. http//www.easterncoal.gov.in.

Annexure: List of Figures

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