XV. Provisions
Provisions are recognised when the Company has a present
obligation (legal or constructive), as a result of past events, and
it is probable that an outflow of resources, that can be reliably
estimated, will be required to settle such an obligation.
The amount recognised as a provision is the best estimate
of the consideration required to settle the present obligation
at the balance sheet date, taking into account the risks and
uncertainties surrounding the obligation. When a provision is
measured using the cash flows estimated to settle the present
obligation, its carrying amount is the present value of those cash
flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle
a provision are expected to be recovered from a third party, a
receivable is recognised as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable
can be measured reliably.
Onerous contracts
Present obligations arising under onerous contracts are
recognised and measured as provisions. However, before a
separate provision for an onerous contract is established, the
Company recognises any write down that has occurred on assets
dedicated to that contract. An onerous contract is considered
to exist where the Company has a contract under which the
unavoidable costs of meeting the obligations under the contract
exceed the economic benefits expected to be received from
the contract. The unavoidable costs under a contract reflect the
least net cost of exiting from the contract, which is the lower
of the cost of fulfilling it and any compensation or penalties
arising from failure to fulfil it. The cost of fulfilling a contract
comprises the costs that relate directly to the contract (i.e., both
incremental costs and an allocation of costs directly related to
contract activities).
XVI. I nvestment in subsidiaries, associates and joint
venture
Investment in subsidiaries, associates and joint ventures are
shown at cost in accordance with the option available in Ind AS
27, 'Separate Financial Statements'. Where the carrying amount
of an investment in greater than its estimated recoverable
amount, it is written down immediately to its recoverable amount
and the difference is transferred to the Standalone Statement
of Profit and Loss. On disposal of investment, the difference
between the net disposal proceeds and the carrying amount
is charged or credited to the Standalone Statement of Profit
and Loss.
XVII. Financial Instruments
Financial assets and financial liabilities are recognised when
an entity becomes a party to the contractual provisions of
the instrument.
Financial assets and financial liabilities are initially measured at
fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities
(other than financial assets and financial liabilities at fair value
through Statement of Profit and Loss (FVTPL) are added to or
deducted from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition. Transaction
costs directly attributable to the acquisition of financial assets
or financial liabilities at fair value through profit and loss are
recognised immediately in Standalone Statement of Profit
and Loss.
A. Financial assets
a) Recognition and initial measurement
A financial asset is initially recognised at fair value and, for an item
not at FVTPL, transaction costs that are directly attributable to
its acquisition or issue. Purchases and sales of financial assets
are recognised on the trade date, which is the date on which
the Company becomes a party to the contractual provisions of
the instrument.
b) Classification of financial assets
Financial assets are classified, at initial recognition and
subsequently measured at amortised cost. fair value through
other comprehensive income (OCI) and fair value through profit
and loss. A financial asset is measured at amortised cost if it
meets both of the following conditions and is not designated
at FVTPL:
• The asset is held within a business model whose objective
is to hold assets to collect contractual cash flows; and
• The contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
A debt instrument is classified as FVTOCI only if it meets both of
the following conditions and is not recognised at FVTPL;
• The asset is held within a business model whose objective
is achieved by both collecting contractual cash flows and
selling financial assets; and
• The contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
Debt instruments included within the FVTOCI category are
measured initially as well as at each reporting date at fair value.
Fair value movements are recognised in the Other Comprehensive
Income (OCI). However, the Company recognises interest income,
impairment losses & reversals and foreign exchange gain or loss
in the Standalone Statement of Profit and Loss. On derecognition
of the asset, cumulative gain or loss previously recognised in OCI
is reclassified from the equity to Standalone Statement of Profit
and Loss. Interest earned whilst holding FVTOCI debt instrument
is reported as interest income using the EIR method.
All equity investments in scope of Ind AS 109 are measured at
fair value. For all other equity instruments, the Company may
make an irrevocable election to present in other comprehensive
income subsequent changes in the fair value. The Company
makes such election on an instrument-by-instrument basis. The
classification is made on initial recognition and is irrevocable.
The equity instruments which are strategic investments and
held for long term purposes are classified as FVTOCI.
If the Company decides to classify an equity instrument as at
FVTOCI, then all fair value changes on the instrument, excluding
dividends, are recognised in the OCI. There is no recycling of the
amounts from OCI to Standalone Statement of Profit and Loss,
even on sale of investment. However, the Company may transfer
the cumulative gain or loss within equity.
Equity instruments included within the FVTPL category are
measured at fair value with all changes recognised in the
Standalone Statement of Profit and Loss.
All other financial assets are classified as measured at FVTPL.
In addition, on initial recognition, the Company may irrevocably
designate a financial asset that otherwise meets the
requirements to be measured at amortised cost or at FVTOCI
as at FVTPL if doing so eliminates or significantly reduces and
accounting mismatch that would otherwise arise.
Financial assets at FVTPL are measured at fair value at the
end of each reporting year, with any gains and losses arising
on remeasurement recognised in Standalone Statement of
Profit and Loss. The net gain or loss recognised in Standalone
Statement of Profit and loss incorporates any dividend or
interest earned on the financial asset and is included in the
'other income' line item. Dividend on financial assets at FVTPL
is recognised when:
• The Company's right to receive the dividends is established,
• It is probable that the economic benefits associated with
the dividends will flow to the entity,
• The dividend does not represent a recovery of part of cost
of the investment and the amount of dividend can be
measured reliably.
c) Derecognition of financial assets
The Company derecognises a financial asset when the
contractual rights to the cash flows from the asset expire, or
when it transfers the financial asset and substantially all the
risks and rewards of ownership of the asset to another party.
d) Impairment
The Company applies the expected credit loss model for
recognising impairment loss on financial assets measured at
amortised cost, debt instruments at FVTOCI, lease receivables,
trade receivables, other contractual rights to receive cash or
other financial asset, and financial guarantees not designated
as at FVTPL.
Expected credit losses are the weighted average of credit losses
with the respective risks of default occurring as the weights.
Credit loss is the difference between all contractual cash flows
that are due to the Company in accordance with the contract
and all the cash flows that the Company expects to receive (i.e.
all cash shortfalls), discounted at the original effective interest
rate (or credit-adjusted effective interest rate for purchased
or originated credit-impaired financial assets). The Company
estimates cash flows by considering all contractual terms of
the financial instrument (for example, prepayment, extension,
call and similar options) through the expected life of that
financial instrument.
The Company measures the loss allowance for a financial
instrument at an amount equal to the lifetime expected
credit losses if the credit risk on that financial instrument has
increased significantly since initial recognition. If the credit risk
on a financial instrument has not increased significantly since
initial recognition, the Company measures the loss allowance
for that financial instrument at an amount equal to 12-month
expected credit losses. 12-month expected credit losses are
portion of the life-time expected credit losses and represent the
lifetime cash shortfalls that will result if default occurs within
the 12 months after the reporting date and thus, are not cash
shortfalls that are predicted over the next 12 months.
If the Company measured loss allowance for a financial
instrument at lifetime expected credit loss model in the previous
period, but determines at the end of a reporting period that the
credit risk has not increased significantly since initial recognition
due to improvement in credit quality as compared to the previous
year, the Company again measures the loss allowance based on
12-month expected credit losses.
When making the assessment of whether there has been a
significant increase in credit risk since initial recognition, the
Company uses the change in the risk of a default occurring
over the expected life of the financial instrument instead of
the change in the amount of expected credit losses. To make
that assessment, the Company compares the risk of a default
occurring on the financial instrument as at the reporting date
with the risk of a default occurring on the financial instrument
as at the date of initial recognition and considers reasonable and
supportable information, that is available without undue cost
or effort, that is indicative of significant increases in credit risk
since initial recognition.
For trade receivables or any contractual right to receive cash or
another financial asset that result from transactions that are
within the scope of Ind AS 115, the Company always measures
the loss allowance at an amount equal to lifetime expected
credit losses.
Further, for the purpose of measuring lifetime expected credit
loss allowance for trade receivables, the Company has used a
practical expedient as permitted under Ind AS 109. This expected
credit loss allowance is computed based on a provision matrix
which takes into account historical credit loss experience and
adjusted for forward-looking information.
The impairment requirements for the recognition and
measurement of a loss allowance are equally applied to debt
instruments at FVTOCI except that the loss allowance is
recognised in other comprehensive income and is not reduced
from the carrying amount in the balance sheet.
The Company has performed sensitivity analysis on the
assumptions used and based on current indicators of future
economic conditions, the Company expects to recover the
carrying amount of these assets.
e) Effective interest method
The effective interest method is a method of calculating the
amortised cost of a debt instrument and of allocating interest
income over the relevant period. The effective interest rate is
the rate that exactly discounts estimated future cash receipts
(including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and
other premiums or discounts) through the expected life of the
debt instrument, or, where appropriate, a shorter period, to the
net carrying amount on initial recognition.
Income is recognised on an effective interest basis for debt
instruments other than those financial assets classified as
at FVTPL. Interest income is recognised in profit or loss and is
included in the 'Other income' line item.
B. Financial liabilities and equity instruments
a) Classification as debt or equity
Debt and equity instruments issued by a company are classified
as either financial liabilities or as equity in accordance with the
substance of the contractual arrangements and the definitions
of a financial liability and an equity instrument.
b) Equity instruments
An equity instrument is any contract that evidences a residual
interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by the Company are
recognised at the proceeds received, net of direct issue costs.
Repurchase of the Company's own equity instruments is
recognised and deducted directly in equity. No gain or loss is
recognised in Standalone Statement of Profit and Loss on the
purchase, sale, issue or cancellation of the Company's own
equity instruments.
c) Financial liabilities
Financial liabilities are classified as either financial liabilities 'at
FVTPL' or 'other financial liabilities'.
Financial liabilities at FVTPL:
Financial liabilities are classified as at FVTPL when the financial
liability is either held for trading or it is designated as at FVTPL.
A financial liability is classified as held for trading if:
• It has been incurred principally for the purpose of
repurchasing it in the near term; or
• on initial recognition it is part of a portfolio of identified
financial instruments that the Company manages together
and has a recent actual pattern of short-term profit¬
taking; or
• it is a derivative that is not designated and effective as a
hedging instrument.
• A financial liability other than a financial liability held
for trading may be designated as at FVTPL upon initial
recognition if:
• such designation eliminates or significantly reduces a
measurement or recognition inconsistency that would
otherwise arise;
• the financial liability forms part of a group of financial
assets or financial liabilities or both, which is managed
and its performance is evaluated on a fair value basis,
in accordance with the Company's documented risk
management or investment strategy, and information
about the grouping is provided internally on that basis; or
• it forms part of a contract containing one or more embedded
derivatives, and Ind AS 109 permits the entire combined
contract to be designated as at FVTPL in accordance with
Ind AS 109.
Financial liabilities at FVTPL are stated at fair value, with any gains
or losses arising on remeasurement recognised in Standalone
Statement of Profit and Loss. The net gain or loss recognised
in Standalone Statement of Profit and Loss incorporates any
interest paid on the financial liability and is included in Standalone
Statement of Profit and Loss. For Liabilities designated as FVTPL,
fair value gains/losses attributable to changes in own credit risk
are recognised in OCI.
The Company derecognises financial liabilities when, and only
when, the Company's obligations are discharged, cancelled
or they expire. The difference between the carrying amount of
the financial liability derecognised and the consideration paid
and payable is recognised in Standalone Statement of Profit
and Loss.
Other financial liabilities:
The Company enters into deferred payment arrangements
(acceptances) whereby overseas lenders such as banks and
other financial institutions make payments to supplier's banks
for import of raw materials and property, plant and equipment.
The banks and financial institutions are subsequently repaid by
the Company at a later date providing working capital benefits.
These arrangements are in nature of credit extended in normal
operating cycle and these arrangements for raw materials are
recognised as part of trade payables and the arrangements for
property, plant and equipment are recognised as other financial
liabilities. Interest borne by the company on such arrangements
is accounted as finance cost. Other financial liabilities are
subsequently measured at amortised cost using the effective
interest method.
Derecognition of financial liabilities:
The Company derecognises financial liabilities when, and only
when, the Company's obligations are discharged, cancelled
or have expired. An exchange between with a lender of debt
instruments with substantially different terms is accounted for
as an extinguishment of the original financial liability and the
recognition of a new financial liability. Similarly, a substantial
modification of the terms of an existing financial liability
(whether or not attributable to the financial difficulty of the
debtor) is accounted for as an extinguishment of the original
financial liability and the recognition of a new financial liability.
The difference between the carrying amount of the financial
liability derecognised and the consideration paid and payable
is recognised in the Standalone Statement of Profit and Loss.
C. Derivative instruments and Hedge Accounting:
a) Derivative financial instruments
The Company enters into a variety of derivative financial
instruments to manage its exposure to interest rate, commodity
price and foreign exchange rate risks, including foreign exchange
forward contracts, commodity forward contracts, interest rate
swaps and cross currency swaps.
Derivatives are initially recognised at fair value at the date the
derivative contracts are entered into and are subsequently
remeasured to their fair value at the end of each reporting
year. The resulting gain or loss is recognised in Standalone
Statement of Profit and Loss immediately unless the derivative
is designated and effective as a hedging instrument, in which
event the timing of the recognition in Standalone Statement of
Profit and Loss depends on the nature of the hedge item.
b) Embedded derivatives
An embedded derivative is a component of a hybrid (combined)
instrument that also includes a non-derivative host contract -
with the effect that some of the cash flows of the combined
instrument vary in a way similar to a stand-alone derivative. An
embedded derivative causes some or all of the cash flows that
otherwise would be required by the contract to be modified
according to a specified interest rate, financial instrument price,
commodity price, foreign exchange rate, index of prices or rates,
credit rating or credit index, or other variable, provided in the
case of a non-financial variable that the variable is not specific
to a party to the contract. Reassessment only occurs if there is
either a change in the terms of the contract that significantly
modifies the cash flows that would otherwise be required or a
reclassification of a financial asset out of the fair value through
profit and loss.
If the hybrid contract contains a host that is a financial asset
within the scope of Ind AS 109, the Company does not separate
embedded derivatives. Rather, it applies the classification
requirements contained in Ind AS 109 to the entire hybrid
contract. Derivatives embedded in all other host contracts are
accounted for as separate derivatives and recorded at fair value
if their economic characteristics and risks are not closely related
to those of the host contracts and the host contracts are not
held for trading or designated at fair value though profit and
loss. These embedded derivatives are measured at fair value
with changes in fair value recognised in profit and loss, unless
designated as effective hedging instruments.
c) Hedge accounting
The Company designates certain hedging instruments, which
include derivatives, embedded derivatives and non-derivatives
in respect of foreign currency, interest rate and commodity risk,
as either cash flow hedge, fair value hedge. Hedges of foreign
currency risk on firm commitments are accounted for as cash
flow hedges.
At the inception of the hedge relationship, the entity documents
the relationship between the hedging instrument and the hedged
item, along with its risk management objectives and its strategy
for undertaking various hedge transactions. Furthermore, at the
inception of the hedge and on an ongoing basis, the Company
documents whether the hedging instrument is highly effective
in offsetting changes in fair values or cash flows of the hedged
item attributable to hedged risk.
(i) Fair value hedges
Changes in fair value of the designated portion of derivatives that
qualify as fair value hedges are recognised in the Standalone
Statement of Profit and Loss immediately, together with any
changes in the fair value of the hedged asset or liability that are
attributable to the hedged risk. The change in the fair value of the
designated portion of hedging instrument and the change in the
hedged item attributable to hedged risk are recognised in profit
or loss in the line item relating to the hedged item.
The Company designates only the spot component for derivative
instruments in fair value Hedging relationship. The Company
defers changes in the forward element of such instruments in
hedging reserve and the same is amortised over the period of
the contract.
When the Company designates only the intrinsic value of the
option as the hedging instrument, it account for the changes
in the time value in OCI. This amount is be removed from OCI
and recognised in PSL, either over the period of the hedge if the
hedge is time related, or when the hedged transaction affects
PSL if the hedge is transaction related.
Hedge accounting is discontinued when the hedging instrument
expires or is sold, terminated, or exercised, or when it no longer
qualifies for hedge accounting. For fair value hedges relating to
items carried at amortised cost, the fair value adjustment to the
carrying amount of the hedged item arising from the hedged risk
is amortised to profit and loss from that date.
(ii) Cash flow hedges
The effective portion of changes in fair value of derivatives and
non-derivatives that are designated and qualify as cash flow
hedges is recognised in other comprehensive income and
accumulated under the heading of cash flow hedging reserve.
The gain or loss relating to the ineffective portion is recognised
immediately in Standalone Statement of Profit and Loss.
Amounts previously recognised in other comprehensive income
and accumulated in equity relating to effective portion as
described above are reclassified to profit and loss in the years
when the hedged item affects profit and loss, in the same line as
the recognised hedged item. However, when the hedged forecast
transaction results in the recognition of a non-financial asset or
a non-financial liability, such gains or losses are transferred from
equity (but not as a reclassification adjustment) and included in
the initial measurement of the cost of the non-financial asset or
non-financial liability.
Hedge accounting is discontinued when the hedging instrument
expires or is sold, terminated, or exercised, or when it no longer
qualifies for hedge accounting. Any gain or loss recognised in
other comprehensive income and accumulated in equity at that
time remains in equity and is recognised when the forecast
transaction is ultimately recognised in profit and loss. When a
forecast transaction is no longer expected to occur, the gain or
loss accumulated in equity is recognised immediately in profit
and loss.
XVIII. Cash and cash equivalents:
Cash and cash equivalent in the Balance Sheet comprise
cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject to
insignificant risk of changes in value.
For the purpose of the Standalone Statement of cash flows, cash
and cash equivalent consists of cash and short term deposits,
as defined above.
XIX. Segment reporting:
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision maker.
The Board of directors of the Company has been identified as
the Chief Operating Decision Maker which reviews and assesses
the financial performance and makes the strategic decisions.
XX. Earnings Per Share:
Basic Earnings per share is computed by dividing the net profit or
loss after tax for the year attributable to the equity shareholders
by the weighted average number of equity shares outstanding
during the year.
Diluted Earnings per share is computed by dividing the net profit
or loss for the year by the weighted average number of equity
shares outstanding during the year as adjusted for the effects
of all dilutive potential equity shares, except where the results
are anti-dilutive.
3. KEY SOURCES OF ESTIMATION UNCERTAINTY AND
RECENT ACCOUNTING PRONOUNCEMENT
In the course of applying the policies outlined in all notes under
section 2 above, the Company is required to make judgements,
estimates and assumptions about the carrying amount of
assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based
on historical experience and other factors that are considered
to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised
in the year in which the estimate is revised if the revision affects
only that year, or in the year of the revision and future year, if the
revision affects current and future year.
A) Key sources of estimation uncertainty
i) Useful lives of property, plant and equipment
Management reviews the useful lives of property, plant and
equipment at least once a year. Such lives are dependent upon
an assessment of both the technical lives of the assets and
also their likely economic lives based on various internal and
external factors including relative efficiency and operating costs.
This reassessment may result in change in depreciation and
amortisation expected in future periods.
ii) Impairment of investments in subsidiaries, Joint ventures
and associates
Determining whether the investments in subsidiaries, joint
ventures and associates are impaired requires an estimate in
the value in use of investments. In considering the value in use,
Management have anticipated the future commodity prices,
capacity utilisation of plants, operating margins, mineable
resources and availability of infrastructure of mines, discount
rates and other factors of the underlying businesses/ operations
of the investee companies etc. for arriving at the future cash
flows expected to arise from the cash generating units, and
discount rates in order to calculate the present value of such
cash flows. Any subsequent changes to the cash flows due
to changes in the above mentioned factors could impact the
carrying value of investments.
iii) Provisions and liabilities
Provisions and liabilities are recognised in the period when it
becomes probable that there will be a future outflow of funds
resulting from past operations or events that can reasonably
be estimated. The timing of recognition requires application of
judgement to existing facts and circumstances which may be
subject to change. The amounts are determined by discounting
the expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money and the
risks specific to the liability. Potential liabilities that are remote
are neither recognised nor disclosed as contingent liability.
The management decides whether the matters needs to be
classified as 'remote,' 'possible' or 'probable' based on expert
advice, past judgements, terms of the contract, regulatory
provisions etc.
iv) Contingencies
In the normal course of business, contingent liabilities may arise
from litigation and other claims against the Company. Potential
liabilities that are possible but not probable of crystalising or
are very difficult to quantify reliably are treated as contingent
liabilities. Such liabilities are disclosed in the notes but are not
recognised. The cases which have been determined as remote
by the Company are not disclosed.
Contingent assets are neither recognised nor disclosed in the
Standalone Financial Statements unless when an inflow of
economic benefits is probable.
v) Fair value measurements
When the fair values of financial assets or financial liabilities
recorded or disclosed in the Standalone Financial Statements
cannot be measured based on quoted prices in active markets,
their fair value is measured using valuation techniques including
the Discounted Cash Flows model. The inputs to these models are
taken from observable markets where possible, but where this
is not feasible, a degree of judgment is required in establishing
fair values. Judgements include consideration of inputs such as
liquidity risk, credit risk and volatility.
vi) Provision for mine restoration
Provision for mine restoration are estimated case by-case based
on available information, taking into account applicable local legal
requirements. The estimation is made using existing technology,
at current prices, and discounted using an appropriate discount
rate where the effect of time value of money is material.
Management reviews all assumptions annually and any changes
is accounted accordingly.
vii) Taxes
Pursuant to the announcement of the changes in the corporate
tax regime, the Companies have an option to either opt for the
new tax regime or continue to pay taxes as per the old applicable
tax structure together with the other benefits available to the
Companies including utilisation of the MAT credit available. This
requires significant estimation in determining in which year the
company would migrate to the new tax regime basis future year's
taxable profits including the impact of ongoing expansion plans
of the Company and consequential utilisation of available MAT
credit. Accordingly, in accordance with IND AS 12 - Income Taxes,
deferred tax assets and liabilities are required to be measured
at the tax rates that are expected to apply to the year when the
asset is realised or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted at
the reporting date.
viii) Leases
If an arrangement contains a lease, the parties to the
arrangement shall apply the requirements of Ind AS 116 to the
lease element. Therefore, the Company is required to separate
payments and other consideration required by the arrangement
into those for the lease and for other elements on the basis of
their relative fair values. However, Management has concluded
that it is impracticable to separate both the elements reliably
and has recognised an asset and a liability at an amount equal
to the carrying value of the specified asset in the books of the
lessor. Subsequently, the liability has been reduced as payments
are made and an imputed finance charges on the liability
recognised using the Company's incremental borrowing rate of
interest over the tenure of the arrangement. The total payments
less payments made towards lease obligation and imputed
finance charges have been considered to be the consideration
for elements other than lease.
In case of arrangements which are identified to be in the
nature of finance lease, the management concluded that it is
impracticable to derive the relative fair values of lease and other
elements of the arrangement and has accordingly determined
the consideration for elements other than lease as a residual
post appropriation of lease payments derived based on lessee's
incremental borrowing rate of interest on the lease obligation
corresponding to the respective gross asset values in the books
of lessor.
ix) Defined benefits plans
The cost of defined benefit plan and other post employment
benefits and the present value of such obligations are
determined using actuarial valuations. An actuarial valuation
involves making various assumptions that may differ from actual
development in the future. These include the determination of
the discount rate, future salary escalations and mortality rates
etc. 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.
x) Expected credit loss
The policy for expected credit loss allowances for financial
assets is based on the evaluation of collectability and the
management's judgement considering external and internal
sources of information. A considerable amount of judgement
is required in assessing the ultimate realisation of the amount
receivable having regard to, the past collection history of each
party, ongoing dealings with these parties, and assessment of
their ability to pay the debt on designated dates.
B) Critical accounting judgements in applying
accounting policy
i) Joint control over JSW Cement FZC (Formerly known as 'JSW
Cement FZE')
During the previous year, Aquarius Global Fund PCC has acquired
additional stake in JSWFZC, resulting in dilution of JSWCL's stake
in JSWFZCL. Accordingly, JSWCL stake is reduced to effective
shareholding of 55.05% in JSWFZC. Pursuant to the Shareholder's
agreement, JSW Cement Limited (JSWCL) and Aquarius Global
Fund PCC ('AGFP') will jointly control JSW Cement FZC ('JSWFZC')
(formerly known as 'JSW Cement FZE').
As per the agreement, all the relevant activities of JSWFZC that
affect its variable returns will be decided unanimously by the
representatives of JSWCL and AGFP. Thus, the Company has
concluded that it has joint control over JSWFZC.
ii) Joint control over JSW One Platforms Limited
Pursuant to the Shareholder's agreement, JSW Steel Limited
(JSWSL), JSW Paints Limited (formerly known as JSW Paints
Private Limited) and JSW Cement Limited (JSWCL) have been
jointly controlling JSW One Platforms Limited ('JOPL'). JSWCL
has made an investment of Rs. 37.40 crores through equity
shares having an effective shareholding of 13.68% in JOPL. As
per the revised shareholder's agreement among JSWSL, JSW
Paints Limited, JSWCL and Mitsui, all the relevant activities of
JOPL that affect its variable returns will continue to be decided
unanimously by the representatives of JSWSL, JSWCL & JSW
Paints Limited. However, Mitsui has certain protective rights
under this shareholder's agreement. Thus, the Group has
concluded that it has joint control over JOPL.
iii) Determining the lease term of contracts with renewal and
termination options - Company as lessee.
The Company determines the lease term as the non-cancellable
term of the lease, together with any periods covered by an option
to be exercised, or any periods covered by an option to terminate
the lease, if it is reasonably certain not to be exercised. The
Company has several lease contracts that include extension
and termination options. The Company applies judgement in
evaluating whether it is reasonably certain whether or not to
exercise the option to renew or terminate the lease. That is, it
considers all relevant factors that create an economic incentive
for it to exercise either the renewal or termination. After the
commencement date, the Company reassesses the lease term
if there is a significant event or change in circumstances that
is within its control and affects its ability to exercise or not to
exercise the option to renew or to terminate.
iv) Incentives under the State Industrial Policy
a. Industrial Promotional Assistance for Salboni Grinding Unit
The Company had applied for Industrial Promotional Assistance
for Salboni Grinding Unit from Government of West Bengal
under the West Bengal State Support for Industries Scheme,
2013 (WBSSIS, 2013) and was granted preliminary registration
certificate (RC-I) on June 28, 2017 as an eligible unit. Even after
complying with all the conditions and filing of application for
grant of final registration certificate (RC-II) within stipulated time,
the authorities rejected the application for grant of RC Part-II on
the alleged ground that Company had not filed the application
for grant of RC -II within stipulated time of commencement of
commercial production. Pursuant to which, the Company filed
Writ Petition Application (WPA) with Honorable High Court of
Kolkata against the Government of West Bengal and others
on February 23, 2021 and December 6, 2022. The High Court
has ordered the authorities to comply with the steps under the
policy/ scheme and consider the documents shared by the
Company, however the authorities have rejected the Company's
application. The third WPA is filed on April 27, 2023 for which
hearing is awaited. The Kolkata High Court vide order dated
11.09.2024 gave direction to authorities to file their affidavit-in
opposition within a period of four weeks and reply within a week
thereafter. The authorities have filed affidavit-in opposition on
27.02.2025 and the Company had filed its reply on 20.03.2025.
The matter is ready for final hearing which is awaited.
The Government of West Bengal has introduced the Revocation
of West Bengal Incentives Schemes and Obligation in the Nature
of Grants and Incentives Bill, 2025 ("Revocation Bill") in the
West Bengal Legislature Assembly and vide Notification dated
19.03.2025. The Revocation Bill withdraws, rescinds, revokes
and discontinues ten incentive schemes introduced during 1993
to 2021 which includes the WBSSIS, 2013. The Revocation Bill
overrides any existing law, judgement, decree, order, arbitral
award of any court or tribunal or direction of any authority which
contradicts its provisions. The Revocation Bill has not yet been
enacted into law, and accordingly the Company continues to
be eligible to avail incentives under WBSSIS 2013 as on March
31, 2025.
Based on the Company's assessment coupled with the advice
/ opinion obtained from independent / external legal counsel,
the Company is confident to recover the outstanding claim
balance as on March 31, 2025 of ' 339.87 crore (March 31, 2024:
' 331.44 crore) (including the claim accrued during the year of
' 8.43 crore (previous year: ' 62.55 crore)).
b. Industrial Policy Resolution 2015 for Jajpur Grinding Unit
The Company has applied for provisional Priority Sector certificate
to the Regional Industry Centre (RIC) for its Jajpur Grinding Unit
under Industrial Policy Resolution, 2015 ("IPR 2015 Scheme") on
August 16, 2017. While the approval in respect of this application
was pending, the Government of Odisha vide resolution no. IND-
HI2-POL-0003-2016- 5248/I dated 18.08.2020 ('Amendment
Resolution') amended IPR 2015 Scheme with retrospective
effect to exclude cement manufacturing / grinding units from
availing financial incentives in the form of SGST reimbursements.
The Company has challenged the constitutional validity of the
retrospective change in the scheme and has filed writ petition
before the Hon'ble Orissa High Court on December 21, 2020.. The
Company has filed affidavits and matter is ready for final hearing.
Based on the Company's assessment coupled with the advice /
opinion obtained from independent / external legal counsel, the
Company is confident to recover the outstanding claim balance
as on March 31, 2025 of ' 93.08 crore (March 31, 2024: ' 71.43
crore) (including the claim accrued during the year of ' 21.65
crore (previous year ' 26.53 crore)).
Considering the timing of the recovery, the incentive amounts
have been classified as non-current financial asset for Salboni
and Jajpur grinding units with the corresponding expected credit
loss provision of ' 60.36 crores as on March 31, 2025 (March 31,
2024: ' 54.78 crores).
c. Incentive Scheme Under IIPP 2010-15 for Nandyal Integrated
Unit
At Andhra Pradesh, the Company was eligible for incentives under
the Industrial Investment Promotion Policy (IIPP 2010-15) and
Industrial Development Policy 2015-20 for Nandyal Integrated
Unit and ' 93.57 crore were recognised in books of account.
The Company has received ' 51.27 crores in prior years and
balance sum of ' 42.30 crore remains recoverable. Aggrieved
by the delay in receipt of these incentives, The Company has
approached Hon'ble High Court by way of filing Writ Petition
on 14 February, 2021. The High court vide its order dated 31st
March, 2022 has instructed the State Government to clear the
incentives due to the Company.
The Company is confident of recovering the amount within
next twelve months; accordingly, these incentives have been
classified as current financial asset.
C) Recent Accounting Pronouncements
Standards issued but not yet effective
Ministry of Corporate Affairs ("MCA") notifies new standards or
amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. MCA
has notified amendments to the existing standard IND AS 21:
The Effects of changes in Foreign Exchange rates applicable to
the Company w.e.f. April 01, 2025 to address concerns about
currency exchangeability and provide guidance on estimating
spot exchange rates when a currency is not exchangeable. There
is no significant impact on the Company in the current year.
Impact of the initial application of new and amended IndAS
that are effective in the current year that begins on or after
April 1, 2024
Ministry of Corporate Affairs ("MCA") notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to
time. For the year ended March 31, 2025, MCA has notified Ind
AS - 117 Insurance Contracts and amendments to Ind AS 116 -
Leases, relating to sale and leaseback transactions, applicable
to the Company w.e.f. April 1, 2024. The Company has reviewed
the new pronouncements and based on its evaluation has
determined that it does not have any significant impact in its
financial statements.
1. Terms of 1% Optionally Convertible, cumulative, redeemable preference shares (OCCRPS) of ' 100 each of Shiva
Cement Limited:
The Company had invested in OCCRPS in month of February 2021 . The tenure of OCCRPS is 9 years, however it is convertible into
Equity Shares at the option of the holder within a period of 18 months from the date of allotment, in one or more tranches, at a price
determined on the date of conversion. In case, OCCRPS are not converted into equity shares within the period of 18 months, OCCRPS
shall be redeemable at par upon maturity of 9 years or redeemed early at the option of the issuer after 18 months, at 12 monthly
intervals from the date of allotment. The company chose not to exercise the conversion option within a period of 18 months.
2. Terms of 8% non convertible, non cumulative redeemable preference shares (NCRPS) of ' 10 each of Everbest
Consultancy Service Private Limited:
The Preference shares were alloted in the month of November, 2020 and are redeemable at par after completion of 10 years from
the date of allotment. The Issuer has an option to redeem all / part of NCRPS at any time after completion of 3 years from the date of
allotment at par on the Face Value of the preference shares. The issuer has redeemed the entire NCPRS in FY 2024-25.
3. Terms of 0.001% Compulsory convertible debentures (CCD) of ' 100 each of Algebra Endeavour Private Limited:
The Company had invested in CCDs in the month of November 2021.The term of CCD shall be 10 years from allotment of CCDs. For
tranche A, 1,950,000 CCDs shall be converted into equity shares at the earlier of 30th June, 2025 or acquisition of an entity as defined
in agreement. For tranche B, 6,000,000 CCDs shall be converted into equity shares on acquisition of an entity as defined in agreement.
If the entity is not acquired the holder shall have an option to convert the CCDs into equity shares on or after 30th June, 2025 till end
of tenure. The conversion ratio is defined in agreement for tranche A and tranche B. The Management expects to fully realise the
recognised fair value of investment through transfer in the near future basis discussion with interested parties.
4. Terms of Zero Coupon optionally convertible debentures (OCD) of ' 100,000 each redeemable at premium of
JSW Sports Limited:
The Company had invested in OCD in the month of March 2020. Issuer shall have right to redeem the OCD any time during the tenure
of 10 years, either in part or full and in one or more tranches, at face value along with accumulated premium @ 9.50% p.a. from date
of allotment till date of redemption for such number of OCD as it intends to redeem. Any time during the tenure of 10 years , the issuer
may, convert all or part of the outstanding OCD at face value along with accumulated premium @ 9.50% from date of allotment till
the date of conversion such number of OCD as it intends to convert, into such number of equity shares as may be derived based on
market value as on date of conversion. The issuer has redeemed the entire OCD in FY 2024-25.
Trade receivables are secured by the funds received from Del credere agent (refer note 21).
Trade receivables have been pledged as security against certain bank borrowings of the Company as at 31st March, 2025 (refer note 24).
There are no outstanding receivables due from directors or other officers of the Company.
Debts amounting to ' 62.43 crore (previous year: ' 30.38 crore) are due from private companies in which director of the Company is
a director.
Trade receivables from related parties details has been described in note 38.
The credit period on sales of goods ranges from 7 to 120 days with or without security.
The Company does not generally hold any collateral or other credit enhancements over these balances nor does it have a legal right of
offset against any amounts owed by the Company to the counterparty.
Terms of Compulsory convertible preference shares
160,000,000 Compulsorily Convertible Preference Shares (CCPS) of face value ' 100 each and carries dividend of 0.01% to be paid as cumulative
preference dividend as when declared by board of directors of the Company in accordance with applicable laws. CCPS shall be compulsorily
convertible into equity shares having a face value of Rs 10 each and carrying one vote per equity share within a period that is earlier of a) mutually
agreed date b) QIPO date c) Expiry of 30 business days from issuance of conversion notice d) Expiry of 10 business days from issuance of transfer
conversion notice . The CCPS held by the Investors pursuant to their respective share subscription agreements shall be converted into such
number of equity shares which shall be adjusted and linked to certain specified internal rate of returns thresholds. Since CCPS are convertible
into variable number of shares it has been classified as financial liability.
MAT is assessed on book profits adjusted for certain items as compared to the adjustments followed for assessing regular income tax under
normal provisions. MAT for the fiscal year 2024-25 is charged at 15% plus a surcharge and education cess. MAT paid in excess of regular
income tax during a year can be set off against regular income taxes within a period of fifteen years succeeding the fiscal year in which
MAT credit arises subject to the limits prescribed.
Business loss can be carried forward for a maximum period of eight assessment years immediately succeeding the assessment year to
which the loss pertains. Unabsorbed depreciation can be carried forward for an indefinite period.
The amount spent under CSR is mainly for projects relating to improving living conditions, promoting social development, rural development
projects, educational infrastructure, addressing social inequalities and promotion of sports.
In respect of the yet to be paid in cash amount of ' 2.14 crore for FY 2025, (FY 2024: ' Nil), the Company has deposited amount of ' 2.14
crore (FY 2024: ' Nil) in CSR unspent escrow account.
37. FINANCIAL INSTRUMENTS
A. Capital management
The objective is to maintain a strong credit rating, healthy capital ratios and establish a capital structure that would maximise the return
to stakeholders through optimum mix of debt and equity.
The Company's capital requirement is mainly to fund its capacity expansion and strategic acquisitions. The principal source of funding
of the Company has been, and is expected to continue to be, cash generated from its operations supplemented by funding from bank
borrowings and the capital markets. The Company is not subject to any externally imposed capital requirements.
The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest cost and align
maturity profile of its debt commensurate with life of the asset and closely monitors its judicious allocation amongst competing capital
expansion projects and strategic acquisitions, to capture market opportunities at minimum risk.
The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes, interest bearing loans
and borrowings less cash and cash equivalents, bank balances other than cash and cash equivalents and current investments.
The sensitivity analyses below have been determined based on the exposure to interest rates for floating rate loans given assuming
the amount of the loans given outstanding at the year-end was outstanding for the whole year.
If interest rates had been 100 basis points higher / lower and all other variables were held constant, the Company's profit for the
year ended 31st March 2025 would increase / decrease by ' 10.92 crore (for the year ended 31st March 2024: increase / decrease by
' 10.15 crore). This is mainly attributable to the Company's exposure to interest rates on its variable rate loan given.
iii) Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.
Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration
risks. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where
appropriate, as a means of mitigating the risk of financial loss from defaults.
The Company is exposed to credit risk for trade receivables, cash and cash equivalents, investments, other bank balances, loans,
other financial assets, financial guarantees and derivative financial instruments.
Financial guarantee:
In respect of financial guarantees provided by the Company to banks and financial institutions, the maximum exposure which the
Company is exposed to is the maximum amount which the Company would have to pay if the guarantee is called upon. Based on the
expectation at the end of the reporting period, the Company considers that it is more likely than not that such an amount will not be
payable under the guarantees provided.
Incentives receivable from the Government
The Company units at Salboni in West Bengal & Jajpur in Odisha are eligible for incentives under the respective state government
policy/ scheme for availing incentives in the form of VAT/ SGST reimbursement. The Company accrued these incentives as refund
claims in respect of VAT/GST paid, on the basis that all attaching conditions were fulfilled by the Company and there was reasonable
assurance that the incentive claims will be disbursed by the State Governments.
For expected credit loss refer note 3B(iv).
The Company is confident about the ultimate realisation of the dues from the State Governments and there is no risk of default.
Trade receivables
Customer credit risk is managed centrally by the Company and subject to established policy, procedures and control relating to
customer credit risk management. Before accepting any new customer, the Company has internal standard operating practice
of assessing the credit worthiness based on experience in cement business, securities offered and credit risk covered by sales
promoters. The Company also has the practice of periodically assessing the performance of customer and rerating the customer.
Trade receivables consist of a large number of customers spread across diverse industries and geographical areas with no significant
concentration of credit risk. No single customer accounted for 10.0% or more of revenue in any of the years indicated. The outstanding
trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables.
As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix
to mitigate the risk of default payments and makes appropriate provision at each reporting date wherever outstanding is for longer
period and involves higher risk.
Our historical experience of collecting receivables indicate a low credit risk. Hence, trade receivables are considered to be a single
class of financial assets.
The Company has a practice of periodically reviewing outstanding receivables for recoverability and making provisions for expected
credit losses and also on case to case basis wherever required. As per policy receivables are classified into different buckets based
on the overdue period ranging from 6 months - one year to more than three year. There are different provisioning norms for each
bucket which are ranging from 3% to 55%.
Cash and cash equivalents :
Credit risks from balances with banks and financial institutions are managed in accordance with the Company policy. For derivative
and financial instruments, the Company attempts to limit the credit risk by only dealing with reputable banks and financial institutions
having high credit-ratings assigned by credit-rating agencies.
The Company's maximum exposure to the credit risk for the components of balance sheet as 31st March 2025 and 31st March 2024
is the carrying amounts mentioned in Note no 16.
Loans and investment
The Company's centralised treasury function manages the financial risks relating to the business. The treasury function focusses on
capital protection, liquidity and yield maximisation. Investments of surplus funds are made only in approved counterparties within
credit limits assigned for each of the counterparty. The limits are set to minimise the concentration of risks and therefore mitigate
the financial loss through counter party's potential failure to make payments.
iv) Liquidity risk management
Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid funds in a
situation where business conditions unexpectedly deteriorate and requiring financing. The Company requires funds both for short
term operational needs as well as for long term capital expenditure growth projects. The Company generates sufficient cash flow
for operations, which together with the available cash and cash equivalents provide liquidity in the short-term and long-term. The
Company has acceptances in line with supplier's financing arrangements which might invoke liquidity risk as a result of liabilities
being concentrated with few financial institutions instead of a diverse group of suppliers. The Company has established an appropriate
liquidity risk management framework for the management of the Company's short, medium and long-term funding and liquidity
management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve
borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial
assets and liabilities.
The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed
repayment periods and its non-derivative financial assets. The tables have been drawn up based on the undiscounted cash flows
of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and
principal cash flows.
To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the
reporting year. The contractual maturity is based on the earliest date on which the Company may be required to pay.
Notes:
1 The Company has accrued ' 4.07 crore in respect of employee stock options granted to key managerial personnel. The same has not
been considered as managerial remuneration of the Current year as defined under Section 2(78) of the Companies Act, 2013 as the
options have not been exercised.
2 As the future liability for gratuity is provided on an actuarial basis for the company as a whole, the amount pertaining to individual is
not ascertainable and therefore not included above.
Terms and Conditions
Sales:
The sales to related parties are made on terms equivalent to those that prevail in arm's length transactions and in the ordinary course of
business. Sales transactions are based on prevailing price lists and memorandum of understanding signed with related parties. For the
year ended 31st March 2025, the Company has not recorded any loss allowances of trade receivable from related parties.
Purchases:
The purchases from related parties are made on terms equivalent to those that prevail in arm's length transactions and in the ordinary
course of business. Purchase transactions are based on normal commercial terms and conditions and market rates.
Loan to Related Party:
a) Loan to subsidiary/Joint venture -
The Company had given loans to subsidiaries/Joint venture for business purposes. The loan balances as at March 31, 2025 was
amounting ' 1,092.31 crore. These loans are unsecured and carry an interest rate ranging from 8.70% to 9.00% per annum and
repayable within a period of one to three years.
Guarantees to subsidiaries/joint venture
Guarantees provided to the lenders of the subsidiaries/joint venture are for availing term loans and working capital facilities from its banks.
Lease rent paid to Related Party:
For Vijayanagar Plant-
Lease rent paid to JSW Steel Limited, Vijaynagar Works towards land taken on lease under sub-lease agreements, for 150 Acres of land
situated at Tornagallu village, District Bellary Karnataka at an annual rent of ' 0.60 crore.
For Dolvi Plant-
Lease rent paid to JSW Steel Limited, Dolvi Works towards land taken on lease under sub-lease agreements, for 28.89 Acres of land situated
at Dolvi, District Raigad, Maharashtra at an annual rent of ' 2.40 crore.
The Company had entered into arrangement with JSW Bengal Steel Limited to take on rent Guest House & accommodation facility for
business purpose amounting to ' 2.02 crore p.a. for period of 10 years, renewable at the option of both the parties.
The Company had entered into arrangement with JSW Realty Infrastructure Private Limited for period of 25 years to take on rent accommodation
facility for business purpose in its integrated township amounting to ' 0.67 crore, renewable at the option of both the parties.
The transactions other than guarantees given to subsidiaries/joint venture are in the ordinary course of business and at arms' length basis.
d) Employee Benefits:
1) Defined contribution plan:
The Company operates defined contribution retirement benefit plans for all qualifying employees. Under these plans, the Company is
required to contribute a specified percentage of payroll costs
Company's contribution to provident fund & family pension scheme and National pension scheme recognised in Statement of Profit
and Loss of ' 8.96 crore (31st March, 2024: ' 8.62 crore),? 1.50 crore (31st March, 2024: ' 1.16 crore) respectively (included in
note 33).
2) Defined benefit plans
Under the Gratuity plan, the eligible employees are entitled to post-retirement benefit at the rate of 15 days salary for each year
of service until the retirement age of 58 and 60 without any payment ceiling. The vesting period for Gratuity as payable under The
Payment of Gratuity Act, 1972 is 5 years.
The fund is managed by JSW Cement Employee Gratuity Trust and it is governed by the Board of trustees. The Board of trustees are
responsible for the administration of the plan assets and for defining the investment strategy.
During the financial year 2022-2023, the compensated absence plans were revised as detailed below:
1. Privileged Leave (PL) - Unutilised PL balance at the end of the calendar year (31st December) shall be encashed at the prevailing
basic pay and no carry forward is allowed.
2. Contingency Leave (CoL) - The existing casual leave and sick leave were clubbed together and shall be called as CoL. The
annual credit of a contingency leave shall be 14 days for plant locations and 8 days for Corporate and other locations. Maximum
accumulation of 30 days is allowed and cannot be encashed.
h. The Company expects to contribute ' 6.99 crore (Previous year ' 6.25 crore) to its gratuity plan for the next year.
i. The average duration of the defined benefit plan obligation at the end of the reporting period is 5 years (31st March, 2024: 5
years)
j. The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet date for
the estimated term of the obligations.
k. The salary growth rate indicated above is the Company's best estimate of an increase in salary of the employees in future years,
determined in actuarial valuation considering the general trend in inflation, seniority, promotions, past experience and other
relevant factors such as demand and supply in employment market, etc.
l. Expected return on plan assets is based on expectation of the average long term rate of return expected on investments of the
fund during the estimated term of obligation after considering several applicable factors such as composition of plan assets,
investment strategy, market scenario etc.
Sensitivity Analysis
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase
and mortality. The sensitivity analysis below has been determined based on reasonably possible changes of the assumptions
occurring at the end of the reporting period, while holding all other assumptions constant.
h) As at 31st March, 2025; the current liabilities exceeds current assets of the Company by ' 1,175.94 crore. Basis predicted cash flows from
operations for the financial year 2025-26 and sanctions received from lenders for the long-term borrowings, the management is confident
that the Company would be in a position to service its liabilities in the foreseeable future.
i) The Company has been maintaining its books of account in the SAP which has feature of recording audit trail of each and every transaction,
creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the
audit trail cannot be disabled, throughout the year as required by proviso to sub rule (1) of rule 3 of The Companies (Accounts) Rules, 2014
known as the Companies (Accounts) Amendment Rules, 2021. The Company did not come across any instance of audit trail feature being
tampered with, in respect of accounting software for the period for which the audit trail feature was operating.
The Audit trail has been preserved by the Company as per the statutory requirements for record retention.
j) The Kolkata Bench of the National Company Law Tribunal (NCLT), through its order dated 12th March 2024 and the Mumbai Bench of the NCLT,
through its order dated 6th May 2024, had approved the scheme of Amalgamation of its wholly-owned subsidiaries, Springway Mining Private
Limited and NKJA Mining Private Limited with the Company effective from 10th October 2022. Accordingly, the Company had accounted for
the amalgamation as per approved scheme. The Impact of the amalgamation on these standalone financial statements is as under:
k) Other statutory information:
1. The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for
holding any benami property.
2. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
3. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company
(ultimate beneficiaries) or
b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries
4. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding
party (ultimate beneficiaries) or
b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
5. The Company does not have any such transaction which is not recorded in the books of account that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961.
6. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies
(Restriction on number of Layers) Rules, 2017.
7. The Company is not declared wilful defaulter by any bank or financials institution or lender during the year.
8. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
9. Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the
books of account.
10. The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.
m) Previous year's figures have been regrouped / reclassified wherever necessary to make them comparable.
For and on behalf of the Board of Directors
Seshagiri Rao M.V.S Parth Sajjan Jindal
Chairman Managing Director
DIN: 00029136 DIN: 06404506
Nilesh Narwekar Narinder Singh Kahlon
Whole-Time Director and CEO Director Finance and Commercial
DIN: 06908109 DIN: 03578016
Sneha Bindra
Company Secretary
Place: Mumbai
Date: 16th May 2025
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