COAL INDIA LIMITED

09 December 2010

India Pharmaceuticals Company Update XOXO

October 8th , 2010 Product Note
Sun Pharma SUNP IB XOXO

Nandita Mehta [email protected]

IPO Details
The Offer Coal India Limited
Sector Mining & Mineral Products
Transaction 100% Book Building
Offer Size 631,636,440 equity shares of Rs 10 each
10% of the fully diluted post offer paid-up capital
IPO Dates Oct 18th 2010 – Oct 20th 2010 (for QIB)
Oct 18th 2010 – Oct 21st 2010 (for Retail / HNI)
Price Band Rs (*) to Rs (*)
Bid Lot (*) equity shares and in multiples of (*)
IPO Grading CRISIL; ICRA & CARE 5/5 – Strong Fundamentals
Exchanges BSE; NSE
Citigroup Global Capital Markets India Private Limited; Deutsche Equities (India) Private
BRLM Limited; DSP Merrill Lynch Limited; Enam Securities Private Limited; Kotak Mahindra
Capital Company Limited; Morgan Stanley India Company Private Limited
Registrar Link Intime India Private Limited

Objects of the Offer

The objects of the Offer are to carry out the divestment of 631,636,440 Equity Shares by the Selling
Shareholder and to achieve the benefits of listing the Equity Shares on the Stock Exchanges. The Company
will not receive any proceeds from the Offer and all proceeds shall go to the Selling Shareholder.

The Business
They have been conferred the “Navratna” status by the GoI (provides them with certain operational and
financial autonomy). They are the largest coal producing company in the world (Source: CRISIL
Research), based on their raw coal production of 431.26 million tons in fiscal 2010. They are also the
largest coal reserve holder in the world (Source: CRISIL Research) based on their reserve base as of April
1, 2010. Coal produced by them accounted for approximately 81.9% of coal production in India in fiscal
2009 (Source: CRISIL Coal Outlook). They produce non-coking coal and coking coal of various grades for
diverse applications.

As of March 31, 2010, they operated 471 mines in 21 major coalfields across 8 states in India
(Chhattisgarh, West Bengal, Jharkhand, Maharashtra, Madhya Pradesh, Assam, Orissa and Uttar
Pradesh) including 163 open cast mines, 273 underground mines and 35 mixed mines (which include
both open cast and underground mines).

As of April 1, 2010 they had:

Resource Categories
Total Resources - 64,218.0 million tons
Measured Resources - 51,326.3 million tons
Indicated Resources - 9,924.4 million tons
Inferred Resources - 2,967.3 million tons
Reserve Categories
Total Reserves - 18,862.9 million tons
Proved Reserves - 10,595.1 million tons
Probable Reserves - 8,267.8 million tons

(Refer to Glossary at the end of the document for terms)

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 Coal India Limited October 8, 2010

Corporate Structure
The company has 9 direct Subsidiaries and 2 indirect Subsidiaries and one Foreign Subsidiary (Coal India
Africana Limitada).

Their Coal Reserves and Resources as of April 1, 2010 (as classified under the JORC code - 2004
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, as audited
by SRK - SRK Mining Services (India) Private Limited and SRK Consulting (UK) Limited.)
Resource Reserve
Coalfield
Measured Indicated Inferred Total Proved Probable Total
(million tons)
Coalfields currently under production
Korba 3,473.70 108.60 990.00 4,572.30 2,006.30 387.10 2,393.40
Singrauli 3,283.60 196.10 - 3,479.70 1,877.80 12.80 1,890.60
Talcher 1 7,972.20 1,830.10 - 9,802.30 2,629.80 2,542.30 5,172.10
IB-Valley 2 3,615.40 198.10 - 3,813.50 1,243.90 1,157.90 2,401.80
Wardha Valley 1,849.90 942.80 58.60 2,851.30 247.00 435.90 682.90
Jharia 5,867.90 1,039.10 117.00 7,024.00 315.20 183.30 498.50
North Karanpura 4,502.00 76.30 - 4,578.30 420.50 1,605.00 2,025.50
Central India Coalfields 3 2,379.80 628.10 138.20 3,146.10 279.30 233.70 513.00
Raniganj 7,344.20 1,130.50 646.70 9,121.40 307.20 25.30 332.50
Rajmahal/Deogarh 4 1,247.90 1,031.00 952.00 3,230.90 455.70 90.00 545.70
East Bokaro 2,063.30 1,150.80 - 3,214.10 84.40 464.60 549.00
West Bokaro 1,483.20 264.00 11.80 1,759.00 309.00 98.80 407.80
Kamptee 755.10 180.90 - 936.00 106.70 39.80 146.50
Mand-Raigarh 1,912.70 156.20 - 2,068.90 37.10 617.30 654.40
Umrer Nand Bander 557.80 0.70 - 558.50 36.80 172.60 209.40
South Karanpura 1,445.00 212.20 6.50 1,663.70 130.20 57.00 187.20
Pench-Kanhan 673.20 201.20 36.00 910.40 8.50 44.30 52.80
Pathakhera 188.20 29.70 - 217.90 28.10 48.50 76.60
Makum 308.40 14.80 10.50 333.70 49.50 1.00 50.50
Ramgarh 382.80 22.00 - 404.80 7.50 50.70 58.20
Giridih - 17.50 - 17.50 14.60 - 14.60
Coalfields currently not under production
Daltonganj 15.70 0.20 - 15.90 - - -
Hutar - - - - - - -
Tatapani-Ramkola - 478.80 - 478.80 - - -
Dilli-Jeypore 4.20 14.70 - 18.90 - - -
Total 51,326.30 9,924.40 2,967.30 64,218.00 10,595.10 8,267.80 18,862.90

Central India Coalfields are comprised of the Jhilimili, Bisrampur, Lakhanpur, Sindurgarh, Umaria, Johilla,
Sohagpur, Sonhat and Chirmiri coalfields.

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 Coal India Limited October 8, 2010

Information relating to their coalfields (they operate and are currently under production):
Type of Mines Rated
Capacity as of
Operating Grades of
Coalfield Location (District/State) UG OC M T 31st Mar 2010
Subsidiary / Division Coal
(mn tons p.a)
Korba SECL Korba/ Chattisgarh 10.00 5.00 - 15.00 B, C, E, F 75.22
Singrauli and Sonebhadra/
Singrauli NCL Madhya Pradesh and Uttar - 10.00 - 10.00 C, D, E 77.36
Pradesh
Talcher MCL Angul/Orissa 4.00 9.00 - 13.00 B, C, E, F 69.30
Jharsugudah and
Ib Valley MCL 5.00 7.00 - 12.00 C, D, E, F 45.30
Sundargarh/Orissa
Chandrapur and Yeotmal/
Wardha Valley WCL 12.00 26.00 - 38.00 B, C, D, E 29.23
Maharashtra
ST I, ST II,
W I, W II,
Jharia BCCL Dhanbad, Bokaro/ Jharkhand 38.00 17.00 23.00 78.00 32.74
W III, W IV,
B, C, D
Ranchi, Hazaribagh, Chatra,
North
CCL Palamu and 2.00 9.00 - 11.00 B, E, F 23.67
Karanpura
Latehar/Jharkhand
Korea, Sarguja Shahdol,
Central India SC II, A, B,
SECL Umaria, Anuppur/Madhya 56.00 15.00 1.00 72.00 28.63
Coalfields C, D, F
Pradesh and Chhattisgarh
Burdwan, Bankura, Purulia,
SC I, ST I
Raniganj ECL/BCCL Birbhum/West Bengal, 84.00 16.00 7.00 107.00 20.97
A, B, C, D
Dhanbad/Jharkhand
Rajmahal/ Deogarh and Godda/
ECL - 4.00 - 4.00 D, F 11.14
Deogarh Jharkhand
W III, W
East Bokaro CCL Bokaro/ Jharkhand 8.00 10.00 1.00 19.00 10.47
IV,E, F
Ramgarh, Hazaribagh/ W III, W
West Bokaro CCL 6.00 9.00 - 15.00 6.57
Jharkhand IV,C, E
Kamptee WCL Nagpur/Maharashtra 9.00 3.00 - 12.00 B, C, D, E 4.78
Mand Raigarh SECL Raigarh/Chhattisgarh 2.00 2.00 - 4.00 D, F 5.24
Umrer Nand
WCL Nagpur/Maharashtra 1.00 2.00 - 3.00 C, D 4.31
Bander
South Ramgarh, Hazaribagh/
CCL 8.00 6.00 1.00 15.00 B, C, D, E 4.98
Karanpura Jharkhand
W II, B,
Pench-Kanhan WCL Chindwara/Madhya Pradesh 15.00 7.00 2.00 24.00 5.00
C,D, E
Pathakhera WCL Betul/ Madhya Pradesh 8.00 - - 8.00 D, E 3.56
Makum NEC5 Tinsukia/Assam 5.00 3.00 - 8.00 A (Assam) 1.16
Ramgarh CCL Ramgarh/Jharkhand - 1.00 - 1.00 W III 1.36
Giridih CCL Giridhih/Jharkhand - 2.00 - 2.00 E 0.93
Total 273.00 163.00 35.00 471.00 461.86

UG: underground mines; OC: open cast mines; M: mixed mines (includes both open cast and underground mines);
T:Total as on April 1, 2010.

Production by Coalfield
Fiscal 3 months ended Jun
2006 2007 2008 2009 2010 30th 2010
Coalfield Raw Coal % of raw Raw Coal % of raw Raw Coal % of raw Raw Coal % of raw Raw Coal % of raw Raw Coal % of raw
Production coal Production coal Production coal Production coal Production coal Production coal
(mn tons) production (mn tons) production (mn tons) production (mn tons) production (mn tons) production (mn tons) production
Korba 58.24 17.0% 62.72 17.4% 67.42 17.8% 73.35 18.2% 78.46 18.2% 17.99 18.9%
Singrauli 51.52 15.0% 52.16 14.5% 59.62 15.7% 63.65 15.8% 67.67 15.7% 14.81 15.6%
Talcher 45.47 13.2% 50.58 14.0% 53.65 14.1% 57.53 14.3% 59.74 13.9% 11.47 12.1%
Ib Valley 24.13 7.0% 29.42 8.2% 34.35 9.1% 38.80 9.6% 44.34 10.3% 10.43 11.0%
Wardha Valley 28.03 8.2% 27.70 7.7% 27.79 7.3% 28.90 7.2% 29.32 6.8% 7.58 8.0%
Jharia 22.05 6.4% 22.84 6.3% 23.62 6.2% 24.14 6.0% 27.45 6.4% 6.96 7.3%
North Karanpura 20.79 6.1% 21.15 5.9% 22.17 5.8% 21.95 5.4% 23.56 5.5% 4.01 4.2%
Central India Coalfields * 23.63 6.9% 23.35 6.5% 23.40 6.2% 23.35 5.8% 24.72 5.7% 5.99 6.3%
Raniganj 19.64 5.7% 19.27 5.3% 17.34 4.5% 17.57 4.4% 17.02 4.0% 3.45 3.6%
Rajmahal/ Deogarh 12.73 3.7% 12.56 3.5% 8.32 2.2% 11.94 3.0% 13.10 3.0% 2.86 3.0%
East Bokaro 8.80 2.6% 8.78 2.4% 9.98 2.6% 9.91 2.5% 12.70 3.1% 2.34 2.5%
West Bokaro 5.43 1.6% 5.31 1.5% 5.60 1.5% 4.91 1.2% 5.16 1.2% 0.86 0.9%
Kamptee 4.41 1.3% 4.31 1.2% 4.36 1.2% 4.26 1.1% 5.03 1.2% 1.19 1.3%
Mand Raigarh 1.16 0.3% 2.43 0.7% 2.97 0.8% 4.45 1.1% 4.83 1.1% 1.35 1.4%
Umrer Nand Bander 3.68 1.1% 4.21 1.2% 4.26 1.1% 4.50 1.1% 4.27 1.0% 0.95 1.0%
South Karanpura 4.47 1.3% 4.97 1.4% 4.94 1.3% 4.84 1.2% 3.98 0.9% 0.81 0.9%
Pench-Kanhan 3.82 1.1% 3.69 1.0% 3.88 1.0% 3.78 0.9% 3.86 0.9% 0.96 1.0%
Pathakhera 3.27 1.0% 3.31 0.9% 3.23 0.9% 3.26 0.8% 3.26 0.8% 0.74 0.8%
Makum 1.10 0.3% 1.05 0.3% 1.10 0.3% 1.01 0.3% 1.11 0.3% 0.16 0.2%
Ramgarh 0.72 0.2% 0.72 0.2% 0.85 0.2% 1.00 0.3% 1.10 0.3% 0.15 0.2%
Giridh 0.30 0.1% 0.38 0.1% 0.61 0.2% 0.63 0.2% 0.58 0.0% 0.12 0.1%
Total 343.39 100.0% 360.91 100.0% 379.46 100.0% 403.73 100.0% 431.26 100.0% 95.15 100.0%

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Coal Production
Year ended 3 months ended
2006 2007 2008 2009 2010 Jun 30, 2010
Production of:
Raw Coal (mn tons) 343.39 360.91 379.46 403.73 431.26 95.15
Non-Coking Coal (mn tons) 319.23 336.64 353.30 377.19 395.13 86.12
Non-Coking Coal as a % of Raw Coal Production 93.0% 93.3% 93.1% 93.4% 91.6% 90.5%
Non-Coking Coal from mines in Korba, Singrauli, Talcher,
Ib Valley and Wardha Valley (as a % of total non-coking - - 68.7% 69.5% 70.7% 72.3%
coal production)
Coking Coal (mn tons) 24.16 24.27 26.16 26.54 36.13 9.03
Coking Coal as a % of Raw Coal Production 7.0% 6.7% 6.9% 6.6% 8.4% 9.5%
.
Beneficiated Coal (mn tons) 15.42 14.12 14.29 14.96 14.59 3.24
Beneficiated Non-Coking Coal (mn tons) 10.53 10.31 10.46 11.28 11.62 2.47
Beneficiated Non-Coking Coal as a % of Beneficiated
68.3% 73.0% 73.2% 75.4% 79.6% 76.2%
Coal Production
Beneficiated Coking Coal (mn tons) 4.89 3.81 3.83 3.68 2.97 0.77
Beneficiated Coking Coal as a % of Beneficiated Coal
31.7% 27.0% 26.8% 24.6% 20.4% 23.8%
Production

Raw Coal: Non-Coking Coal includes NEC (Assam grade) coal; Coking Cola includes semi-coking coal and
weakly coking coal.
They produce a significant proportion of their non-coking coal from mines operated in the Korba,
Singrauli,Talcher, Ib Valley and Wardha Valley coalfields.
Most of their coking (metallurgical) coal is produced at the Jharia coalfield.

Raw Coal
They continue to expand their raw coal production capacities. As of March 31, 2010:
77 projects with an aggregate proposed capacity addition of 184.78 million tons per annum, involving
an aggregate proposed capital expenditure of Rs.110,064.60 million had received project investment
approval from their Board and the Board of Directors of the relevant Subsidiaries for the
implementation of these projects.
- Of the 77 projects for which requisite investment approval had been received as of March 31,
2010, 32 projects, with an aggregate capacity of 104.00 million tons per annum had been
implemented by March 31, 2010, and had contributed 57.0 million tons towards their production
during fiscal 2010.
- 45 projects (comprising 22 capacity expansion projects for existing mines and 23 new mine
projects) had received relevant investment approval (of their Board and the board of directors of
relevant Subsidiary companies) and were in various stages of mine planning and development:
(i) 25 projects, with an aggregate estimated capacity of 47.51 million tons per annum,
and involving an aggregate estimated capital expenditure of Rs.33,857.10 million,
were at various stages of implementation as of March 31, 2010, and are expected to
become operational by the end of fiscal 2012;
(ii) 20 projects, with an aggregate estimated capacity of 33.27 million tons per annum,
and involving an aggregate estimated capital expenditure of Rs.25,762.79 million,
involve longer gestation periods and are expected to become operational during the
12th Five-Year Plan (2013-2018) period.

Beneficiated Coal
Some of the raw coal they produce is used as feedstock for the production of beneficiated coal. They
currently operate 17 coal beneficiation facilities. They operate 5 non-coking coal beneficiation facilities
with an aggregate designed feedstock capacity as of March 31, 2010 of 17.22 million tons per annum and
12 coking coal beneficiation facilities with an aggregate designed feedstock capacity as of March 31, 2010
of 22.18 million tons per annum.

They also intend to develop an additional 20 coal beneficiation facilities with an aggregate additional
proposed feedstock capacity of 111.10 million tons per annum to increase their production of beneficiated
non-coking coal and beneficiated coking coal.

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Coal Sales
They have 12 regional sales offices across India.
Year ended 3 months ended
2006 2007 2008 2009 2010 Jun 30, 2010
Dispatch of:
Raw Coal (mn tons) 332.20 350.30 374.57 400.75 415.22 100.93
Non-Coking Coal (mn tons) 309.49 326.20 349.32 373.24 381.09 91.00
Non-Coking Coal as a % of Raw Coal Dispatch 93.0% 93.1% 93.3% 93.1% 91.8% 90.2%
Coking Coal (mn tons) 23.23 24.10 25.25 27.51 34.13 9.93
Coking Coal as a % of Raw Coal Production 7.0% 6.8% 6.6% 6.8% 8.2% 9.8%
Raw Coal - under the E-Auction Scheme (mn tons) 28.79 48.87 45.73 9.30
8.1% 12.9% 11.6% 9.6%

Beneficiated Coal (mn tons) 15.42 14.15 14.46 14.91 14.60 3.46
Beneficiated Non-Coking Coal (mn tons) 10.53 10.25 10.58 11.21 11.66 2.70
Beneficiated Non-Coking Coal as a % of Beneficiated
68.3% 72.4% 73.2% 75.2% 79.9% 78.0%
Coal Dispatch
Beneficiated Coking Coal (mn tons) 4.89 3.90 3.88 3.70 2.94 0.76
Beneficiated Coking Coal as a % of Beneficiated Coal
31.7% 27.6% 26.8% 24.8% 20.1% 22.0%
Dispatch

Coal is sold to their customers pursuant to long-term FSAs (Fuel Supply Agreements), separate memoranda
of understanding entered into with customers or under their E-Auction scheme.

Open Cast Mines and Underground Mines

As of March 31, 2010, they operated 163 open cast mines, 273 underground mines and 35 mixed mines
(which include both underground mines and open cast mines). Most of their current raw coal production is
from their open cast mines.
Fiscal 3 months ended Jun 30,
2006 2007 2008 2009 2010 2010
Particulars Raw Coal % of raw Raw Coal % of raw Raw Coal % of raw Raw Coal % of raw Raw Coal % of raw Raw Coal % of raw
Production coal Production coal Production coal Production coal Production coal Production coal
(mn tons) production (mn tons) production (mn tons) production (mn tons) production (mn tons) production (mn tons) production
Open Cast Mine
297.57 86.7% 317.59 88.0% 335.92 88.5% 359.77 89.1% 388.01 90.0% 85.50 89.8%
Production
Underground
45.82 13.3% 43.32 12.0% 43.54 11.5% 43.96 10.9% 43.25 10.0% 9.65 10.2%
Mine Production
Total 343.39 100.0% 360.91 100.0% 379.46 100.0% 403.73 100.0% 431.26 100.0% 95.15 100.0%

They intend that all new open cast mines with coal production capacities greater than 2.5 million tons per
annum not linked to pit head customers will eventually be equipped with dedicated coal beneficiation
facilities.

Mining Rights and acquisition of land

The mines in which they carry out mining activities were granted to them pursuant to either
(i) The grant of deemed mining lease pursuant to the Coal Mines (Nationalisation) Act, 1973: They
enjoy the status of a deemed lessee of the concerned State Government in relation to all the
nationalized coal mines.
(ii) The grant of mining rights pursuant to the Coal Bearing Areas (Acquisition & Development) Act,
1957 (CBA Act): They acquire ownership on the surface rights and mining rights on the coal-
bearing areas. In certain circumstances where the rights, which are originally granted through a
mining lease, are acquired pursuant to the CBA Act, they are deemed to have become the lessee of
the state government from the date of such vesting.
A majority of the mines they inherited during nationalization of the coal industry were underground mines
leased under the MMDR Act. However, currently, a majority of their production is derived from open cast
mines that were acquired pursuant to the CBA Act, for which they own the surface rights and the mining
rights.

Exploration Activities
Exploration of coal deposits in India is carried out in 2 stages: regional exploration and detailed
exploration.

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Regional exploration - Carried out by government organizations such as Geological Survey of India
("GSI") of the MoM,
Detailed Exploration - The relevant coal companies typically undertake detailed exploration. They
conduct their detailed exploration and drilling activity through CMPDIL (Central Mine Planning &
Design Institute Limited)

3 months ended
Rs mn 2008 2009 2010
Jun 30, 2010
Exploration and Drilling Expenses 988.82 1,738.63 2,486.51 647.60

They are currently conducting detailed exploration activities in 12 coalfields through CMPDIL and
exploring potential open cast deposits (including expansion projects) in 14 blocks. In addition, they are
studying the feasibility of mining underground coal deposits in 14 coal blocks.

Transportation, Infrastructure and Logistics

Fiscal 3 months ended June 30,
2006 2007 2008 2009 2010 2010
Raw Coal Raw Coal Raw Coal Raw Coal Raw Coal Raw Coal
% of Coal % of Coal % of Coal % of Coal % of Coal % of Coal
Production (mn Production (mn Production Production Production Production
Dispatch Dispatch Dispatch Dispatch Dispatch Dispatch
tons) tons) (mn tons) (mn tons) (mn tons) (mn tons)
Rail (1) 165.78 49.8% 180.69 51.6% 188.94 50.5% 191.87 47.9% 193.77 46.7% 47.66 47.2%
MGR 80.61 24.2% 78.82 22.5% 81.02 21.6% 82.68 20.6% 86.57 20.8% 19.81 19.6%
Road 73.50 22.1% 77.82 32.2% 91.45 24.4% 113.14 28.2% 122.33 29.5% 30.81 30.5%
Others (2) 12.83 3.9% 12.96 3.7% 13.17 3.5% 13.06 3.3% 12.55 3.0% 2.65 2.6%
Total 332.72 100.0% 350.30 100.0% 374.57 100.0% 400.75 100.0% 415.22 100.0% 100.93 100.0%

MGR – Merry go round, rail circuit

(1) Includes movement of coal by rail to ports for coastal shipment.
(2) Includes coal transported directly through conveyor belts / rope ways to pit head customers.

Customers
Their customers include large companies, including thermal power generating companies, steel producers
and industrial companies both in the public and the private sector with whom they have long-standing
relationships.
Fiscal 3 months ended June
2006 2007 2008 2009 2010 30, 2010
Raw Coal % of raw Raw Coal % of raw Raw Coal % of raw Raw Coal % of raw Raw Coal % of raw Raw Coal % of raw
Dispatch coal Dispatch coal Dispatch coal Dispatch coal Dispatch coal Dispatch coal
(mn tons) dispatch (mn tons) dispatch (mn tons) dispatch (mn tons) dispatch (mn tons) dispatch (mn tons) dispatch
Power (including captive
280.74 84.4% 289.56 82.7% 309.83 82.7% 326.06 81.4% 331.94 79.9% 78.87 78.2%
power plants)
Steel (including sponge
18.87 5.7% 19.29 5.5% 22.12 5.9% 19.74 4.9% 21.51 5.2% 5.16 5.1%
iron)
Cement 9.87 3.0% 9.40 2.7% 7.03 1.9% 6.62 1.7% 6.44 1.6% 1.71 1.7%
Other industries 8.11 2.4% 6.63 1.9% 8.32 2.2% 7.19 1.8% 8.84 2.1% 2.59 2.6%
Small and medium
15.13 4.5% 25.42 7.3% 27.27 7.3% 41.14 10.3% 46.49 11.2% 12.60 12.5%
enterprises (1)
Total 332.72 100.0% 350.30 100.0% 374.57 100.0% 400.75 100.0% 415.22 100.0% 100.93 100.0%

(1) Includes coal sold to small customers through state and central agencies and e-auction, open sales scheme and
brick sector

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 Coal India Limited October 8, 2010

Other than certain insignificant quantities of coal sold in Nepal and Bangladesh, they sell all of their coal in
India.
Non-coking coal used in the thermal power industry constitutes most of their coal production. Coal sold to
government-owned and controlled power generation companies and utilities contribute a substantial
majority of their total sales.
3 months
2008 2009 2010 ended June 30,
2010
Volume of Raw Coal sold to 5 largest
customers as a % of total volume of coal 50.8% 49.9% 47.9% 45.1%
dispatched
Volume of Raw Coal sold to NTPC as a %
27.7% 26.7% 26.7% 24.9%
of total volume of coal dispatched

Distribution of Coal
Coal Distribution through FSAs and through State Nominated Agencies
The NCDP (New Coal Distribution Policy) stipulates that customers with coal requirements more than
4,200 tons per annum are required to enter into FSAs with the Company.
(i) Valid linked existing customers as of the date of introduction of the NCDP with annual
coal requirements up to 4,200 tons per annum were provided with an option to either:
- Enter into FSAs with the Company directly for the supply of coal;
- Access their coal requirements through the applicable agencies and associations
nominated by the respective State Governments ("State Nominated Agencies").
(ii) All new customers with coal requirement up to 4,200 tons per annum will receive coal
through State Nominated Agencies only.
E-Auction Scheme
The E-Auction scheme of coal has been introduced to provide access to coal for customers who were
not able to source their coal requirement through the available institutional mechanisms under the
NCDP for various reasons.

Pricing of Coal
The principal factors that affect the price of their raw coal and beneficiated coal are the quality of their raw
coal (grade of coal) and the mode of sale, i.e. whether such coal is sold under their FSAs, under their E-
Auction scheme or under specific memoranda of understanding entered into with the customer.

International Initiatives
Coal Videsh – a special division to streamline their activities related to sourcing of coal from
international sources to bridge the demand-supply gap in India has been established.
They have successfully bid in a global tender floated by the Government of Mozambique and acquired
prospecting licenses in August 2009 for 2 coal blocks in Mozambique for further exploration and
development of these coal blocks over a period of 5 years. They have established a wholly owned
subsidiary CIAL in Mozambique.
They have initiated the process of selecting coal companies as prospective strategic partners for their
international initiatives in Australia, the United States, South Africa and Indonesia, countries from
which coal is currently imported into India.
They have commenced the due diligence process for and are currently evaluating the proposals for
acquisition of coal assets in Australia, Indonesia and the United States.
In their annual plan for fiscal 2011, they have earmarked Rs.60,000 million for the acquisition of
international coal assets.
They have established a joint venture company, ICVL, with NTPC, SAIL, RINL and NMDC for the
acquisition of metallurgical and thermal coal assets outside India to provide supply of coal from
international sources to meet part of the requirements of SAIL and RINL.

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 Coal India Limited October 8, 2010

Strengths Growth Strategies

The largest coal producer and reserve holder Continue to increase production and capitalize
in the world on the significant demand-supply gap for coal
Well positioned to capitalize on the high in India
demand for coal in India Improve realizations through increased sales of
Track record of growth and cost efficient beneficiated coal and higher quality coal, and
operations the use of E-auction pricing mechanisms
Strong track record of financial performance Enhance their profitability and maintain their
Strong capabilities for exploration, mine competitiveness by improving operating and
planning, research and development cost efficiencies
Experienced senior management team and Continue to increase their reserve base in India
large pool of skilled employees Acquire strategic international resources or
mining rights and identify joint development
opportunities
Continue to focus on developing
environmentally and socially sustainable
operations
Offer Size
(Rs in crores)
# of Shares Amount
Category (*) (*) Retail Discount and Employee
Public Offer 631,636,440 (*) (*) Discount will be declared
Employee Reservation 63,163,644 (*) (*) atleast 2 days prior to the issue
Net Issue 568,472,796 (*) (*)
QIBs 284,236,398 (*) (*)
Non Institutional 85,270,919 (*) (*)
Retail 198,965,479 (*) (*)

Pre Offer Shares 6,316,364,400

Post Offer Shares 6,316,364,400

Registered Office: Coal Bhawan, 10, Netaji Subhas Road, Kolkata 700 001, West Bengal;

Shareholding Pattern (%)

Pre-Offer Post-Offer (*)
Category No. of Shares % Holding No. of Shares % Holding
Promoter 6,316,363,800 99.99% 5,684,727,360 89.99%
Others 600 Negligible 600 Negligible
Public - - 631,636,440 10.00%
Total 6,316,364,400 100.00% 6,316,364,400 100.00%
(*) Assuming that the Offer is fully subscribed.

Promoters
The President of India acting through the MoC (Ministry of Coal, Government of India).

Financials
Extracts of the Restated Consolidated Statement of Profit & Loss Account
(Rs in millions)
For the year ended March 31st Quarter ended Jun
Particulars 2005-06 2006-07 2007-08 2008-09 2009-10 30, 2010
Sales 287,018.31 296,021.85 326,338.60 387,888.30 446,152.51 114,356.36
Total Income 340,087.99 350,054.07 386,166.97 460,640.65 525,922.92 131,100.32
Expenditure 252,831.33 264,412.28 305,374.07 403,531.12 385,737.04 93,632.54
Profit before tax 87,541.62 85,862.35 81,904.18 57,386.71 139,649.28 37,356.71
PAT 61,136.01 42,052.69 42,850.07 40,626.23 98,336.99 25,217.78
(Source: Red Herring Prospectus)

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 Coal India Limited October 8, 2010

Extracts of the Restated Consolidated Statement of Assets and Liabilities

(Rs in millions)
As at 31st March As at Jun
Particulars 2006 2007 2008 2009 2010 30th 2010
Fixed Assets 114,514.61 116,543.31 120,070.56 129,282.72 142,589.60 142,976.07
Investments 22,445.20 20,258.77 17,179.01 15,051.79 12,821.40 12,764.12
Net Interest in Joint Venture - - - 2.00 2.00
Deferred Tax Asset 7,280.76 6,602.16 7,877.52 9,548.29 9,657.55 9,850.88
Current Assets, Loans and Advances
Inventories 29,134.45 31,250.08 34,073.57 36,665.91 44,014.96 45,350.33
Sundry Debtors 18,840.52 16,822.29 16,571.58 18,474.84 21,686.48 20,265.25
Cash and Bank balances 134,272.37 159,292.66 209,614.80 296,950.09 390,777.60 380,463.35
Loan and Advances 65,004.26 78,184.36 102,662.87 117,270.50 86,654.64 86,490.12
Total Current Assets 247,251.60 285,549.39 362,922.82 469,361.34 543,133.68 532,569.05
Total 391,492.17 428,953.63 508,049.91 623,244.14 708,204.23 698,162.12
Less: Liabilities and Provisions
Secured Loans 2,477.18 3,327.05 2,247.07 1,804.63 4,669.08 1,002.80
Unsecured Loans 20,712.72 18,111.93 16,592.03 19,680.17 16,199.43 16,791.73
Current Liabilities and Provisions 216,437.77 236,171.42 305,944.58 399,422.33 413,846.87 380,703.03
Minority Interest - - - 18.97 236.07 236.07
Shifting and Rehabilitation Fund 4,859.46 6,880.78 9,458.78 12,238.43 14,774.27 15,548.70
Deferred Tax Liabilities 4,468.65 2,331.22 1,800.62 - - -
Total 248,955.78 266,822.40 336,043.08 433,164.53 449,725.72 414,282.33
Net Worth 142,536.39 162,131.23 172,006.83 190,079.61 258,478.51 283,879.79

Represented by
Share Capital 63,163.64 63,163.64 63,163.64 63,163.64 63,163.64 63,163.64
Reserves and Surplus 79,372.75 98,967.59 108,843.19 126,916.21 195,330.22 220,731.50
Miscellaneous Expenditure - - - 0.24 15.35 15.35
Net Worth 142,536.39 162,131.23 172,006.83 190,079.61 258,478.51 283,879.79

(Source: Red Herring Prospectus)

Extracts of the Restated Consolidated Statement of Cash Flows

(Rs in millions)
Particulars For the year ended March 31 As at Jun
2006 2007 2008 2009 2010 30th 2010
Net Cash Flow from /(used in) Operating Activities 83,676.53 59,932.60 88,689.97 117,193.50 133,199.41 (4,494.95)
Net Cash from / (used in) Investing Activities (12,445.78) (15,342.00) (18,349.83) (16,618.90) (17,746.56) (3,519.75)
Net Cash from / (used in) Financing Activities (16,827.86) (19,570.30) (20,018.00) (13,239.31) (21,625.34) (2,299.55)
Net increase / (decrease) in Cash and Cash Equivalents 54,402.90 25,020.29 50,322.14 87,335.29 93,827.51 (10,314.25)
Cash and Cash Equivalents at the beginning of the period/year 79,869.48 134,272.37 159,292.66 209,614.80 296,950.09 390,777.60
Cash and Cash Equivalents at the end of the period/year 134,272.37 159,292.66 209,614.80 296,950.09 390,777.60 380,463.35

(Source: Red Herring Prospectus)

Ratios
Particulars Year ended March 31 As at Jun
2006 2007 2008 2009 2010 30th 2010
Earnings per Share 9.68 6.66 6.78 6.43 15.57 3.99
Net Asset Value per Share- (Rs) 22.57 25.67 27.23 30.09 40.92 44.94
Return on Net Worth (%) 0.43 0.26 0.25 0.21 0.38 0.09

(Source: Red Herring Prospectus)

Peer Comparison
They are a coal mining company and there is no other listed peer in India with which they can be compared with.

(Source: Red Herring Prospectus)

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 Coal India Limited October 8, 2010

Glossary
Measured Resources - That part of a mineral resource for which quantity, grade or quality, densities, shape, physical
characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate
application of technical and economic parameters, to support production planning and evaluation of the economic
viability of the deposit.

Indicated Resources - That part of a mineral resource for which quantity, grade or quality, densities, shape and
physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of
technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit

Inferred Resources -That part of a mineral resource for which tonnage, densities, shape, physical characteristics,
grade and mineral content can be estimated with a low level of confidence.

Proved Reserves -The economically mineable part of a Measured Mineral Resource

Probable Reserves -The economically mineable part of an Indicated Mineral Resource, and in some cases
Measured Mineral Resource

Beneficiation / washing – Process for cleaning of coal

Please refer to the Red Herring Prospectus for Risk Factors

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 Coal India Limited October 8, 2010

Disclaimer

This document has been prepared for your information only. In rendering this information, we assumed and
relied upon, without independent verification, the accuracy and completeness of all the data that was publicly
available to us. The information has been obtained from the sources we believe to be reliable as to the accuracy
or completeness. This should not be construed as an offer to sell or buy the securities and the information
contained herein is meant for the authorized recipients only and is not for public distribution. No part or portion
of this document shall be duplicated, reproduced, reprinted or redistributed to any person or persons. This
information is given in good faith and we make no representations or warranties, express or implied, as to the
accuracy or completeness of the information and shall have no liability to you or your representatives arising
from use of this information.

We shall not be liable for any direct or indirect losses arising from the use of the information contained herein
and accept no responsibility for statements made otherwise issued or any other source of information received by
you and you would be doing so at your own risk. The investment as mentioned in the document may not be
suitable for all investors. Investors may take their own decisions based on their specific investment objectives
and financial position and using such independent advisors, as they believe necessary. You are advised to
carefully read the entire offer document including all the Risk Factors mentioned in the offer document issued by
the Issuer before making any investment decisions. Neither we, nor our directors or employees are responsible
for any loss that you may incur by the use of information contained in this document.

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 Coal India Limited October 8, 2010

Our Network

Mumbai Hyderabad
Ahmedabad
Corporate Office 9-10, Uma Chambers, 3rd Floor,
Ashram Road Road No 1, Banjara Hills, (Nagarjuna Hills),
Apeejay House.
G - 10, Chinubhai Center,
Dinshaw Vachha Road, Hyderabad - 500 034
Near Nehru bridge Corner, Ashram Road,
Churchgate, Mumbai – 400020 Tel : +91 40 66360009
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Tel : + 91 22 67040404
Tel : + 91 79 2657 6666, 079-30013722
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Atira Branch
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Tel : +91 11 30925500 (011) 4130 5650 Door No: 9-1-224/4/3, 1st floor
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Visakhapatnam - 530 003.
Secunderabad - 500 003
Tel : +91 891 3983737
Tel : +91 40 39825200

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NSE - Capital Market INB 231054835 | F&O Segment INF 231054835 | BSE - Cash Market INB 011054831
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