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 Assets

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 ? 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.