ix. Provisions & Contingent Liability:

All the provisions are recognized as per Ind AS 37.
Provisions (including mine closure) are recognized
when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable
that an outflow of economic benefits will be required
to settle the obligation and a reliable estimate can be
made of the amount of the obligation.

The amount recognized as a provision is the best
estimate of the consideration required to settle the
present obligation at the end of the reporting period,
taking into account the risks and uncertainties
surrounding the obligation.

When some or all of the economic benefits required
to settle a provision are expected to be recovered
from a third party, the receivable is recognized as an
asset, if it is virtually certain that reimbursement will
be received and the amount of the receivable can be
measured reliably.

Provisions for onerous contracts are recognized when
the expected benefits to be derived by the Company
from a contract are lower than the unavoidable costs
of meeting the future obligations under the contract.
Provisions for onerous contracts are measured at
the present value of lower of the expected net cost
of fulfilling the contract and the expected cost of
terminating the contract.

Contingent liabilities are possible obligations that
arises from past events, the existence of which
would be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events
not wholly within the control of the company or a
present obligation for which payment is not probable
or the amount cannot be measured reliably. These
are disclosed in the financial statements unless the
possibility of any outflow in settlement is remote.

x. Revenue recognition

Revenue from contracts with customers is recognized
when control of the goods or services is transferred
to the customer at an amount that reflects the
consideration which is net off discounts and price
concessions to which the Company expects to be
entitled in exchange for those goods or services.

If the consideration in a contract includes a variable
amount, the Company estimates the amount of
consideration to which it will be entitled in exchange

for transferring the goods to the customer. The
variable consideration is estimated at contract
inception and constrained until it is highly probable
that a significant revenue reversal in the amount of
cumulative revenue recognised will not occur when the
associated uncertainty with the variable consideration
is subsequently resolved.

All revenue from sale of goods is recognised at a point
in time. Revenue from wind power and services is
recognised over time.

The timing of transfer of control in case of sale of
goods varies depending upon individual transfer terms
of the contract.

Export sales: In Export sales control passes to the
customer on the date of Bill of Lading.

Domestic sales: Control passes to the customer on
the date of delivery which is generally the forwarding
note (rail dispatches)/ lorry receipt/ delivery challan.
However, in case of spot auction under electronic
mode, control passes to the customer on conclusion
of the auction and receipt of money.

Obsolete stores & scrap: Control passes to the
customer on the date of realisation.

Contract asset:

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 that is conditional.

Trade receivables

A receivable represents the Company’s right to an
amount of consideration that is unconditional (i.e., only
the passage of time is required before payment of the
consideration is due).

Contract liability

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.

xi. Finance income and expense

Finance income consists of interest income on funds
invested, dividend income and gains on the disposal
of Fair value through profit and loss account financial
assets. Interest income is recognized as it accrues in
the statement of profit and loss, using the effective
interest method.

Dividend income is recognized in the statement of
profit and loss on the date the Company’s right to
receive payment is established.

Finance expenses consist of interest expense on loans
and borrowings. Borrowing costs are recognized in
the statement of profit and loss using the effective
interest method.

Foreign currency gains and losses are reported on a
net basis. This includes changes in the fair value of
foreign exchange derivative instruments, which are
accounted at fair value through profit or loss.

xii. Income tax

Tax comprises current and deferred tax. Income
tax expense is recognized in the statement of
profit and loss except to the extent it relates to
items directly recognized in equity or in other
comprehensive income.

a) Current income tax

Current income tax for the current and prior
periods are measured at the amount expected
to be recovered from or paid to the taxation
authorities based on the taxable income for
the period. The tax rates and tax laws used to
compute the current tax amount are those that
are enacted or substantively enacted by the
reporting date and applicable for the period. The
Company offsets current tax assets and current
tax liabilities, where it has a legally enforceable
right to set off the recognized amounts and
where it intends either to settle on a net basis or
to realize the asset and liability simultaneously.

b) Deferred income tax

Deferred income tax is recognized using the
balance sheet approach. Deferred income
tax assets and liabilities are recognized for

deductible and taxable temporary differences
arising between the tax base of assets and
liabilities and their carrying amount in financial
statements, except when the deferred income
tax arises from the initial recognition of goodwill
or an asset or liability in a transaction that is
not a business combination and affects neither
accounting nor taxable profits or loss at the time
of the transaction. Deferred income tax asset
are recognized to the extent that it is probable
that taxable profit will be available against which
the deductible temporary differences, and the
carry forward of unused tax credits and unused
tax losses can be utilized. Deferred income
tax liabilities are recognized for all taxable
temporary differences. The carrying amount of
deferred income tax assets is reviewed at each
reporting date and reduced to the extent that
it is no longer probable that sufficient taxable
profit will be available to allow all or part of the
deferred income tax asset to be utilized. Deferred
income tax assets and liabilities are measured
at the tax rates that are expected to apply in the
period when the asset is realized or the liability
is settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at
the reporting date.

xiii. Earnings per share (EPS)

Basic earnings per share is computed using
the weighted average number of equity shares
outstanding during the year.

Diluted EPS is computed by dividing the net
profit after tax by the weighted average number
of equity shares considered for deriving basic
EPS and also weighted average number of
equity shares that could have been issued upon
conversion of all dilutive potential equity shares.
Dilutive potential equity shares are deemed
converted as of the beginning of the year, unless
issued at a later date. Dilutive potential equity
shares are determined independently for each
year presented. The number of equity shares and
potentially dilutive equity shares are adjusted for
bonus shares, as appropriate.

xiv. Borrowing costs

Borrowings costs directly attributable to
acquisition or construction 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 it occur. Borrowing costs consists of
interest and other costs that an entity incurs in
connection with the borrowing of funds.

xv. Government Grants

Grants from the government are recognised
when there is reasonable assurance that:(i)
the Company will comply with the conditions
attached to them; and (ii) the grant will be
received. Government grants related to revenue
are recognised on a systematic basis in the
statement of profit and loss over the periods
necessary to match them with the related costs
which they are intended to compensate. Such
grants are deducted in reporting the related
expense. When the grant relates to an asset, it is
recognized as income over the expected useful
life of the asset. Where the Company receives
non-monetary grants, the asset is accounted
for on the basis of its acquisition cost. In case
a non-monetary asset is given free of cost it is
recognised at a fair value. When loan or similar
assistance are provided by government or related
institutions, with an interest rate below the
current applicable market rate, the effect of this
favorable interest is recognized as government
grant. The loan or assistance is initially
recognized and measured at fair value and the
government grant is measured as the difference
between the initial carrying value of the loan and
the proceeds received.

Grant related to income are presented as
part of profit or loss, as a deduction to the
related expenses.

xvi. Lease

a. Lease liability is initially recognised and
measured at an amount equal to the present
value of minimum lease payments during
the lease term that are not yet paid.

b. Right of use asset is recognised and
measured at cost, consisting of initial
measurement of lease liability plus any lease
payments made to the lessor at or before
the commencement date less any lease

incentives received, initial estimate of the
restoration costs and any initial direct costs
incurred by the lessee.

c. The lease liability is measured in
subsequent periods using the effective
interest rate method. The right-of-use asset
is depreciated over the lease term.

d. The following leases are fully
charged to expense:

i) Leases for which the underlying asset
value is H 20 Lakhs or less

ii) Short term leases of 12 months or less

xvii. Exploration and Evaluation

Exploration and evaluation expenditure comprise
costs that are directly attributable to:

- researching and analysing existing
exploration data;

- conducting geological studies, exploratory
drilling and sampling;

- examining and testing extraction and
treatment methods; and/or

- compiling pre-feasibility and
feasibility studies.

Exploration expenditure relates to the
initial search for deposits with economic
potential. Evaluation expenditure relates to
a detailed assessment of deposits or other
projects that have been identified as having
economic potential.

All evaluation and exploration expenses till high
degree of confidence is achieved are expensed.
Evaluation expenditure are capitalised as Intangible
assets when there is a high degree of confidence
that the Company will determine that a project is
commercially viable, that is the project will provide
a satisfactory return relative to its perceived risks,
and therefore it is considered probable that future
economic benefits will flow to the Company.

The carrying values of capitalized evaluation
expenditure are reviewed for impairment every
year by management.

xviii. Stripping cost

Development stripping cost:

Overburden and other mine waste material
removed during the initial development of a
mine in order to access mineral deposit are
capitalized as Intangible Asset. Amortization of
the same is done based on the life estimated by
the management.

Production stripping cost:

During the Production phase, the stripping
activity cost is charged to revenue to the extent
the benefit from the stripping activity is realized in
the form of inventory produced.

To the extent the benefit is improved access to
ore, the entity shall recognise these costs as a
non-current asset ie Stripping Activity Asset, if
and only if all the following conditions are met:

a) It is probable that the future economic
benefits associated with the stripping
activity will be realized

b) The component of the ore body for
which access has been improved can
be identified and

c) The costs relating to the stripping activity
associated with the improved access can
be reliably measured.

To the extent the current period stripping ratio exceeds
the planned stripping ratio as per mine plan, shall be
considered as “Stripping Activity Asset’

The “Stripping Activity Asset” is subsequently
depreciated on a unit of production basis over the
life of the identified component of the ore body that
become more accessible as a result of the stripping
activity and is then stated at cost less accumulated
depreciation and impairment loss, if any.

xix. Prepaid Expenses

Expenses are accounted under prepaid expenses
only when the amount relating to the unexpired
period exceeds rupees Two crore in each case.

xx. Restatement of earliest prior period financials
on material error/omissions

The value of error and omissions is construed to
be material for restating the opening balances of
assets and liabilities and equity for the earliest
prior period presented if the amount in each case
of earlier period income/expenses exceeds 1.00%
of the previous year turnover of the company.