the balance sheet based on current/ non-current
classification. An asset is classified as current when it is:

- expected to be realised or intended to be sold or
consumed in normal operating cycle;

- held primarily for the purpose of trading;

- expected to be realised within twelve months after
the reporting period; or

- cash or a cash equivalent unless restricted from
being exchanged or used to settle a liability for at
least twelve months after the reporting period.
Terms of a liability that could, at the option of the
counterparty, result in its settlement by the issue of
equity instruments do not affect its classification.

All other assets are classified as non-current.

A liability is current when it is:

- expected to be settled in normal operating cycle;

- held primarily for the purpose of trading;

- 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.

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

The operating cycle is the time between the
acquisition of assets for processing and their
realisation in cash or cash equivalents. The company
has identified twelve months as its operating cycle.

b) Fair Value Measurement

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. Normally at initial recognition,
the transaction price is the best evidence of fair
value.

However, when the Company determines that
transaction price does not represent the fair value,
it uses inter-alia valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximising the use of relevant observable inputs
and minimising the use of unobservable inputs.

All financial assets and financial liabilities for which
fair value is measured or disclosed in the financial
statements are categorised within the fair value
hierarchy. This categorisation is based on the
lowest level input that is significant to the fair value
measurement as a whole:

- Level 1 - Quoted (unadjusted) market prices in
active markets for identical assets or liabilities

- Level 2 - Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is directly or indirectly observable

- Level 3 - Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is unobservable

Financial assets and financial liabilities that are
recognised at fair value on a recurring basis, the
Company determines whether transfers have
occurred between levels in the hierarchy by re¬
assessing categorisation at the end of each reporting
period.

c) Property, Plant and Equipment (PPE)

i) On transition to Ind AS, the Company has
elected to continue with the carrying value
of all of its property, plant and equipment
recognised as at April 1, 2015, measured as
per the previous GAAP, and use that carrying
value as the deemed cost of such property,
plant and equipment.

ii) An item of PPE is recognized as an asset if
it is probable that future economic benefits
associated with the item will flow to the
Company and the cost of the item can be
measured reliably.

iii) The cost of an item of property, plant and
equipment is measured at :

- its purchase price, including import duties
and non-refundable purchase taxes, after
deducting trade discounts and rebates.

- any costs directly attributable to bringing
the asset to the location and condition
necessary for it to be capable of operating
in the manner intended by management.

the initial estimate of the costs of dismantling
and removing the item and restoring the site
on which it is located, the obligation which is

to be incurred either when the item is acquired
or as a consequence of having used the item
during a particular period for purposes other
than to produce inventories during that period.

iv) Expenditure incurred on renovation and
modernization of PPE on completion of the
originally estimated useful life resulting in
increased life and/or efficiency of an existing
asset, is added to the cost of the related asset.
In the carrying amount of an item of PPE, the
cost of replacing the part of such an item is
recognized when that cost is incurred if the
recognition criteria are met. The carrying
amount of those parts that are replaced
is derecognized in accordance with the
derecognition principles.

v) After initial recognition, PPE is carried at cost
less accumulated depreciation/amortization
and accumulated impairment losses, if any.

vi) Spare parts procured along with the Plant
& Machinery or subsequently which meet
the recognition criteria are capitalized and
added in the carrying amount of such item.
The carrying amount of those spare parts that
are replaced is derecognized when no future
economic benefits are expected from their use
or upon disposal. Other machinery spares are
treated as "stores & spares” forming part of the
inventory.

vii) If the cost of the replaced part or earlier
inspection is not available, the estimated cost
of similar new parts/ inspection is used as an
indication of what the cost of the existing part/
inspection component was when the item was
acquired or inspection carried out.

viii) An item of property, plant and equipment
is derecognized upon disposal or when no
future economic benefits are expected from
its use or disposal. Any gain or loss arising on
derecognition of the asset (calculated as the
difference between the net disposal proceeds
and the carrying amount of the asset) is
included in the Statement of Profit and Loss
when the asset is derecognized.

ix) The company has continued the policy adopted
for accounting for exchange differences arising
from translation of long term foreign currency

monetary items recognized in financial
statements for the period ending immediately
before the beginning of the first Ind AS
financial reporting period as per the previous
GAAP, as permitted under Ind AS 101, 'First
time adoption of Indian Accounting Standards'.
Accordingly, the exchange differences arising
on translation/settlement of long term foreign
currency monetary items pertaining to the
acquisition of a depreciable asset have been
adjusted to the cost of the asset and are
depreciated over the remaining life of the
asset.

d) Capital Work in Progress

i) Expenditure incurred on assets under
construction (including a project) is carried at
cost under Capital Work in Progress. Such costs
comprises purchase price of asset including
import duties and non-refundable taxes after
deducting trade discounts and rebates and
costs that are directly attributable to bringing
the asset to the location and condition
necessary for it to be capable of operating in
the manner intended by management.

ii) Cost directly attributable to projects under
construction include costs of employee
benefits, expenditure in relation to survey
and investigation activities of the projects,
cost of site preparation, initial delivery and
handling charges, installation and assembly
costs, professional fees, expenditure on
maintenance and up-gradation etc. of common
public facilities, depreciation on assets used
in construction of project, interest during
construction and other costs if attributable
to construction of projects. Such costs are
accumulated under "Capital works in progress”
and subsequently allocated on systematic
basis over major assets, other than land and
infrastructure facilities, on commissioning of
projects.

iii) Capital Expenditure incurred for creation
of facilities, over which the Company does
not have control but the creation of which
is essential principally for construction of
the project is capitalized and carried under
"Capital work in progress” and subsequently
allocated on systematic basis over major
assets, other than land and infrastructure
facilities, on commissioning of projects,
keeping in view the "attributability” and the
"Unit of Measure” concepts in Ind AS 16-
"Property, Plant & Equipment”. Expenditure of
such nature incurred after completion of the
project, is charged to Statement of Profit and
Loss.

e) Intangible Assets

i) Intangible assets acquired separately are
measured on initial recognition at cost. After
initial recognition, intangible assets are carried
at cost less any accumulated amortisation and
accumulated impairment losses.

ii) Software (not being an integral part of the
related hardware) acquired for internal use, is
stated at cost of acquisition less accumulated
amortisation and impairment losses, if any.

iii) An item of Intangible asset is derecognised
upon disposal or when no future economic
benefits are expected from its use or disposal.
Gains or losses arising from derecognition
of an intangible asset are measured as the
difference between the net disposal proceeds
and the carrying amount of the asset and are
recognised in the Statement of Profit and Loss
when the asset is derecognised.

f) Leases

The Company assesses at contract inception
whether a contract is or contains a lease. That is, if
the contract conveys the right to control the use of
an identified asset for a period of time in exchange
for consideration.

Company as a Leasee

The Company applies a single recognition and
measurement approach for all leases, except for
short-term leases and leases of low-value assets.
The Company recognises lease liabilities to make
lease payments and right-of-use assets representing
the right to use the underlying assets.

- Right-of-use assets

The Company recognises right-of-use assets at the
commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use

assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted
for any remeasurement of lease liabilities. The
cost of right-of-use assets includes the amount
of lease liabilities recognised, initial direct costs
incurred, and lease payments made at or before
the commencement date less any lease incentives
received. Right-of-use assets are depreciated on
a straight-line basis over the shorter of the lease
term and the estimated useful lives of the assets, as
follows:

- Leasehold properties - 5 years to 29 years

If ownership of the leased asset transfers to the
Company at the end of the lease term or the
cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated useful
life of the asset.

- Lease liabilities

At the commencement date of the lease, the
Company recognises lease liabilities measured at
the present value of lease payments to be made over
the lease term. The lease payments include fixed
payments (including in substance fixed payments)
less any lease incentives receivable, variable lease
payments that depend on an index or a rate, and
amounts expected to be paid under residual value
guarantees. The lease payments also include the
exercise price of a purchase option reasonably
certain to be exercised by the Company and
payments of penalties for terminating the lease, if
the lease term reflects the Company exercising the
option to terminate. Variable lease payments that
do not depend on an index or a rate are recognised
as expenses (unless they are incurred to produce
inventories) in the period in which the event or
condition that triggers the payment occurs.

In calculating the present value of lease payments,
the Company uses its incremental borrowing rate at
the lease commencement date because the interest
rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made.
In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change
in the lease term, a change in the lease payments
(e.g., changes to future payments resulting from a

change in an index or rate used to determine such
lease payments) or a change in the assessment of an
option to purchase the underlying asset.

- Short-term leases and leases of low-value assets

The Company applies the short-term lease
recognition exemption to its short-term leases of
machinery and equipment (i.e., those leases that
have a lease term of 12 months or less from the
commencement date and do not contain a purchase
option). It also applies the lease of low-value assets
recognition exemption to leases of office equipment
that are considered to be low value. Lease payments
on short-term leases and leases of low-value assets
are recognised as expense on a straight-line basis
over the lease term.

g) Mining Assets

i) Exploration and Evaluation Assets

Upon obtaining the legal rights to explore a
specific area but before the technical feasibility
and commercial viability of extracting a mineral
resource are demonstrable, the expenditure
incurred on finding specific mineral resources
are capitalised as Exploration and Evaluation
Assets. These expenditure include expenses on
acquisition of rights to explore; topographical,
geological, geochemical and geophysical
studies; exploratory drilling; trenching;
sampling; activities in relation to evaluating the
technical feasibility and commercial viability of
extracting a mineral resource and such other
related expenses. When the technical feasibility
and commercial viability of extracting a mineral
resource are demonstrated, the Exploration
and Evaluation Assets are reclassified as part
of the right to mine.

At the initial recognition the Exploration and
Evaluation Assets are measured at cost. After
recognition, the company continues to use the
cost model.

Exploration and Evaluation Assets are assessed
for impairment when facts and circumstances
suggest that the carrying amount of such
assets may exceed its recoverable amount.

After the reclassification of the Exploration
and Evaluation Assets as part of the Right

to Mine, the cost is then amortised over the
remaining useful life of the mining rights.

ii) Stripping Activity

During the development phase of the mine (before
production begins), stripping costs are capitalised
as part of the cost of right to mine.

During the production phase, two benefits accrue
from the stripping activity: usable ore that can be
used to produce inventory and improved access to
further quantities of material that will be mined in
future periods.

To the extent that the benefit from the stripping
activity is realised in the form of inventory produced,
the costs of that stripping overburden removal
activity is accounted for in accordance with the
principles of Ind AS 2, Inventories.

To the extent the benefit is improved access to ore,
these costs are recognised as Stripping Activity
Asset, if the following criteria are met:-

it is probable that the future economic benefit
(improved access to the ore body) associated with
the stripping activity will flow;

the component of the ore body for which access has
been improved can be identified; and

- the costs relating to the stripping activity associated

with that component can be measured reliably.

The Stripping Cost capitalised during the
development phase or during the production phase
is amortised using the units or production method.

h) Revenue recognition

A. Revenue from Contracts with Customers

The Company recognises revenue when
control over the promised goods or services
is transferred to the customer at an amount
that reflects the consideration to which the
Company expects to be entitled in exchange
for those goods or services. The Company has
generally concluded that it is the principal in its
revenue arrangements as it typically controls
the goods or services before transferring them
to the customer.

Revenue is adjusted for variable consideration
such as discounts, rebates, refunds, credits,
price concessions, incentives, or other similar

items in a contract when they are highly
probable to be provided. The amount of
revenue excludes any amount collected on
behalf of third parties.

The Company recognises revenue generally
at the point in time when the products are
delivered to customer or when it is delivered
to a carrier for export sale, which is when the
control over product is transferred to the
customer.

Revenue from sale of by products are included
in revenue.

Contract Balances

Contract Assets:

A contract asset is the right to consideration
in exchange for goods or services transferred
to the customer. If the Company performs by
transferring goods or services to a customer
before the customer pays consideration or
before payment is due, a contract asset is
recognised for the earned consideration.

Trade Receivables:

A receivable is recognised when the goods
are delivered and to the extent that it has an
unconditional contractual right to receive cash
or other financial assets (i.e., only the passage
of time is required before payment of the
consideration is due).

Contract Liabilities:

A contract liability is the obligation to transfer
goods or services to a customer for which
the Company has received consideration (or
an amount of consideration is due) from the
customer. If a customer pays consideration
before the Company transfers goods or
services to the customer, a contract liability is
recognised when the payment is made or the
payment is due (whichever is earlier). Contract
liabilities are recognised as revenue when
the Company performs under the contract
including Advance received from Customer.

Refund Liabilities:

A refund liability is the obligation to refund
some or all of the consideration received (or
receivable) from the customer and is measured

at the amount the Company ultimately expects
it will have to return to the customer including
volume rebates and discounts. The Company
updates its estimates of refund liabilities at the
end of each reporting period.

B. Interest income

Interest income from a financial asset is
recognised when it is probable that the
economic benefits will flow to the Company
and the amount of income can be measured
reliably. Interest income is accrued on a
time basis, by reference to the principal
outstanding and at the effective interest
rate applicable, which is the rate that exactly
discounts estimated future cash receipts
through the expected life of the financial asset
to that asset's net carrying amount on initial
recognition.

C. Rendering of services

Income from services rendered is recognised
based on agreements/arrangements with the
customers as the service is performed and
there are no unfulfilled obligations.

i) Depreciation on Property, Plant & Equipment

and Amortization of Intangible Asset

i) Depreciation on Property, Plant & Equipment
is provided on Straight Line Method based on
estimated useful life of the assets which is same
as envisaged in schedule II of the Companies
Act, 2013 with the exception of the following:

- spares classified as plant and equipment are
depreciated over 3 to 15 years based on the
technical evaluation of useful life done by the
management.

- assets costing 0 5,000 or less are fully
depreciated in the year of purchase.

ii) Depreciation on additions to /deductions from
Property, Plant & Equipment during the year is
charged on pro-rata basis from / up to the date
on which the asset is available for use / disposal

iii) The residual values, useful lives and method of
depreciation of property, plant and equipment
is reviewed at each financial year end and
adjusted prospectively, if appropriate.

iv) Where the life and / or efficiency of an
asset is increased due to renovation and
modernization, the expenditure thereon along
with its unamortized depreciable amount
is charged prospectively over the revised /
remaining useful life determined by technical
assessment.

v) Spares parts procured along with the Plant
& Machinery or subsequently which are
capitalized and added in the carrying amount
of such item are depreciated over the residual
useful life of the related plant and machinery
or their useful life whichever is lower.

vi) Leasehold land is amortised annually on the
basis of tenure of lease period. Freehold land
is not depreciated.

vii) Expenditure incurred on Mining Rights are
amortised over useful life of the mines or lease
period whichever is shorter.

viii) Other Intangible assets i.e. Computer
Softwares are amortized on a straight line
basis over technically useful life i.e. 10 years.

j) Inventories :

i) Inventories are valued at lower of cost and net
realizable value, after providing for obsolences,
if any.

ii) Cost of Raw Materials, Stores & Spares, Work
in Progress, Finished Goods and Stock-in¬
Trade are computed on Moving Average basis.

iii) Cost of Work in Progress and Finished Goods
includes direct materials, labour, conversion
and proportion of manufacturing overheads
incurred in bringing the inventories to their
present location and condition.

iv) The cost is determined using moving average
cost formula and net realizable value is the
estimated selling price in the ordinary course
of business, less the estimated costs necessary
to make the sale.

k) Borrowing Cost

Borrowing costs directly attributable to the
acquisition, construction or production of an asset
that necessarily takes a substantial period of time to
get ready for its intended use or sale are capitalised
as part of the cost of the asset. All other borrowing

costs are expensed in the period in which they occur.
Borrowing costs consist of interest and other costs
that the company incurs in connection with the
borrowing of funds. Borrowing cost also includes
exchange differences to the extent regarded as an
adjustment to the borrowing costs.

l) Income Taxes

Income tax expense represents the sum of current
and deferred tax. Tax is recognised in the Statement
of Profit and Loss, except to the extent that it
relates to items recognised directly in equity or
other comprehensive income. In which case the
tax is also recognised directly in equity or in other
comprehensive income.

i) Current tax

Current tax assets and liabilities are measured
at the amount expected to be recovered from
or paid to the taxation authorities, based
on tax rates and laws that are enacted or
substantively enacted at the Balance sheet
date.

ii) Deferred tax

Deferred tax is recognised on temporary
differences between the carrying amounts of
assets and liabilities in the financial statements
and the corresponding tax bases used in the
computation of taxable profit.

Deferred tax liabilities and assets are measured
at the tax rates that are expected to apply in
the period in which the liability is settled or
the asset realised, based on tax rates (and tax
laws) that have been enacted or substantively
enacted by the end of the reporting period.
The carrying amount of Deferred tax liabilities
and assets are reviewed at the end of each
reporting period.

m) Foreign Currency Transactions

i) Transactions in foreign currency are initially
recorded at exchange rate prevailing on the
date of transaction. At each Balance Sheet
date, monetary items denominated in foreign
currency are translated at the exchange rates
prevailing on that date.

ii) Exchange differences arising on translation or
settlement of monetary items are recognised

as income or expenses in the period in which
they arise in the Statement of Profit and loss.

n) Employee Benefits Expense

Short Term Employee Benefits

The undiscounted amount of short term employee
benefits expected to be paid in exchange for the
services rendered by employees are recognised as
an expense during the period when the employees
render the services.

Post-Employment Benefits

Defined Contribution Plans

A defined contribution plan is a post-employment
benefit plan under which the Company pays
specified contributions to a separate entity. The
Company makes specified monthly contributions
towards Provident Fund and Contributory Pension
Fund. The Company's contribution is recognised
as an expense in the Statement of Profit and Loss
during the period in which the employee renders the
related service.

Defined Benefits Plans

The cost of the defined benefit plan and other
post-employment benefits and the present value
of such obligation are determined using actuarial
valuations. An actuarial valuation involves making
various assumptions that may differ from actual
developments in the future. These include the
determination of the discount rate, future salary
increases, mortality rates and future pension
increases. Due to the complexities involved in the
valuation and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each
reporting date.

The company has recognized the gratuity payable
to the employees as per the Payment of Gratuity
Act,1972. Leave encashment benefit is a long term
benefit plan whereas Gratuity is a post retirement
benefit plan. The liability in respect of these benefits
is calculated using the Projected Unit Credit Method
and spread over the period during which the benefit
is expected to be derived from employees' services

Re-measurement of defined benefit plans in respect
of post-employment are charged to the Other
Comprehensive Income.