2. Significant Accounting Policies:

2.1 Basis of preparation

The financial statements of the company have been prepared in accordance with Indian accounting
standards (Ind AS) as notified under Section 133 of the Companies Act, 2013 read with the Companies
(Indian Accounting Standards) Rules, 2015 (as amended from time to time) and presentation
requirements of Division II of Schedule III to the Companies Act, 2013.

2.2 Use of Estimates

The preparation of the financial statements in conformity with IND AS requires the Management to
make estimates and assumptions that affect the reported balances of assets and liabilities and
disclosures relating to contingent liabilities as at the date of the financial statements and reported
amounts of income and expenses during the period. The Company believes that the estimates used in
the preparation of the financial statements as prudent and reasonable. Accounting estimates could
change from period to period. Actual results could differ from those estimates.

2.3 Revenue Recognition:

i) Revenue is recognized to the extent that is probable that the economic benefits will flow to
the company and the revenue can be reliably measured.

ii) Sale of products is recognized when the significant risk and reward of ownership of the
goods have been passed to the buyer. Revenue is measured at fair value of the
consideration received or receivable, after deduction of any taxes or duties collected on
behalf of the government which are levied on sales such as VAT, GST, etc.

iii) Dividend income, if any, is recognized when the company's right to receive dividend is
established by the reporting date.

iv) Interest income from financial assets is recognized at the effective interest rate applicable
on initial recognition.

v) Scrap sales is recognized at the fair value of consideration received or receivable upon
transfer of significant risk and rewards. It comprises of invoice value of goods and after
deducting applicable taxes on sale.

vi) Operating Lease rentals are accounted on the straight-line basis over the lease term.

2.4 Depreciation:

Depreciation on Tangible assets is provided on the straight-line method over the useful lives of assets
as per the rates specified under Schedule II of the Companies Act, 2013 on pro-rata basis.

2.5 Property, Plant and Equipment (PPE) :

i) Property, Plant and Equipment are stated at cost of acquisition net of accumulated
depreciation/amortization and impairment losses if any, except free hold land which is
carried at cost less impairment losses if any. The cost comprises purchase prices, borrowing
cost if capitalization criteria are met and directly attributable cost of bringing the asset to
its working condition for the intended use.

ii) The Company identifies the significant parts of plant and equipment separately which are
required to be replaced at intervals. Such parts are depreciated separately based on their
specific useful lives. The cost of replacement of significant parts are capitalized and the
carrying amount of replaced parts are de-recognized. When each major inception/
overhauling is performed, its cost is recognized in the carrying amount of the item of
property, plant and equipment as a replacement if the recognition criteria are satisfied. Any
remaining carrying amount of the cost of the previous inspection/ overhauling (as distinct
from physical parts) is de- recognized.

iii) Other expenses on fixed assets, including day-to-day repair and maintenance expenditure
and cost of replacing parts that does not meet the capitalization criteria in accordance with
IND AS 16 are charged to the Statement of Profit and Loss for the period during which such
expenses are incurred.

iv) PPEs are eliminated from the financial statements on disposal or when no further benefit is
expected from its use or disposal. Gains or losses arising from disposal of plant, property
and equipment are measured as the difference between the net disposal proceeds and the
carrying amount of such assets are recognized in the statement of profit and loss.

v) During the course of the year, the company has revalued its Property, plant and equipment
based on the valuation report issued by the Valuer as defined by the Companies Act Rules.

2.6 Impairment of Non - Financial Assets:

i) The carrying values of non-financial assets are reviewed for impairment at each Balance
Sheet date, if there is any indication of impairment based on internal and external factors.

ii) Non-financial assets are treated as impaired when the carrying amount of such asset
exceeds its recoverable value. After recognition of impairment loss, the depreciation
/amortization for the said assets is provided for remaining useful life based on the revised
carrying amount, less its residual value if any, on straight line basis.

iii) An impairment loss is charged to the Statement of Profit and Loss in the year in which an
asset is identified as impaired.

iv) An impairment loss is reversed when there is an indication that the impairment loss may no
longer exist or may have decreased.

2.7 Foreign Exchange Transactions:

Foreign Currency Transactions are translated into the functional currency using exchange rates at the
date of the transaction. Foreign exchange gains and losses from settlement of these transactions and
from translation of monetary assets and liabilities at the reporting date exchange rates are recognized
in the statement of Profit and Loss. Non- monetary items which are carried at historical cost
denominated in foreign currency are reported using the exchange rates at the time of transaction.

During the year, the company has not entered into any foreign exchange contract under review.

2.8 Borrowing Cost:

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying
assets, which are capitalized. During the year under review, there was no borrowing attributable to
qualifying assets and hence no borrowing cost was capitalized.

2.9 Segment Accounting:

The company is principally engaged in a single business segment viz., Trading of coal.

2.10 Current versus non-current classification:

The Company presents assets and liabilities in the balance sheet based on current/ non-current
classification.

An asset is treated as current when it is:

- Expected to be realized or intended to be sold or consumed in normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realized within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading;

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve
Months after the reporting period.

All other liabilities are classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realization in
cash and cash equivalents. The Company has evaluated and considered its operating cycle as 12 months.

Deferred tax assets/ liabilities are classified as non-current assets/ liabilities.

2.11 Inventories:

i) Inventories are valued at cost or net realizable value whichever is lower. Cost includes the
cost incurred in bringing the inventories to their present location and condition.

ii) Raw materials, stores and spares are valued at cost or net realizable value whichever is
lower. Cost includes the cost incurred in bringing the inventories to their present location
and condition. For cost calculation of Raw materials as it is not ordinarily inter changeable
specific identification method is used. For cost calculation of stores and spares weighted
average method is used.

iii) For valuation of finished goods / stock-in-process, cost includes material, direct labour,
overheads (other than abnormal amount of wasted materials, storage costs, selling and
Administrative overheads) wherever applicable.

2.12 Taxes on Income:

Provision for current tax is made in accordance with the Income Tax Act, 1961.

In accordance with the IND AS 12, Deferred Tax Liability / Asset arising from timing differences between
book and income tax profits is accounted for at the current rate of tax to the extent these differences
are expected to crystallize in later years. However, Deferred Tax Assets are recognized only if there is a
reasonable / virtual certainty of realization thereof.