An Analysis of Financial Performance of the Coal Mining Industries: A Case Study of Raniganj Coalfield of Eastern Coalfield Limited

The leading coalfield of India, the Raniganj coalfield under Eastern Coalfield Limited is recognised as the birth place of the Indian coal mining industry and one of the most prominent coalfields not only in India but also in the world. It is also the second largest supplier of superior quality of coal in the nation at present subsequent to Jharia coalfield. Raniganj and Jharia Coalfields (RCF & JCF) can be recognised as mirror image in the history of coal mining in India. Both the coal mining areas are witnessing mining of coal for more than 230 years. With the shifting of economic structure of the country, the cold filed region has registered quite a lot of ups and down in its financial performance. From this point of view the current paper is an attempt to assess the financial performance in the field of mining segment of Raniganj Coal Field, the most important coal producer in West Bengal. The whole study is entirely based on secondary data. A period of five year from 2014-15 to 2019-20 has been determined for the study. The data have been tabulated, analysed and interpreted with the help of Z Score Model and Economic Value Added (EVA) based on financial ratios. It is observed from the analysis of various financial ratios that the revenue earning capability, liquidity condition and long-standing solvency situation of RCF, is to a certain extent good during the entire study period and the level of bankruptcy situation is also very low.