4,6 Provisions Provisions
Pmv.*i-.mt. aru rvtugni&ed when tt=ere k a present utjiigaTKHi (ley a I of constructive > as contingencies a result of a past event end it fs probable ("more likely Than non that n i* required to settle the obligation, end a reliable estimate can be made of the amount of the abtt^atfcrft.
Th-s amount r eroflftksiKJ as a provision is the hem esi imam of the considerahnn required to settle the present obligation at ihe baidiwe ih*»pt date, taking omo account the risks am] utK&t&n*** surrounding me obligation Where a provision t measured uSthQ the estimated cash flows to settle the present obligation, its anymg amount is th* present Vfllihtf or those cash flows The discount Jure used is a pre-tar rate mat te fleets eurreni market assessments of rtw rimp value of mormy in mat jurisdiction Bind [he risks specific to the lutulny
(a) Restoration, rehabilitation and decommissioning
An obligation to incur restoration, mhabrlication and ^ivircnmenlal costs arises when eflvir on mental dr.tiu brine;? is caitsed by the development w ongoing production ol a mine and othei manufonur >nq facilities Sudi mts,, discounted to net present value, art; provided ter and a corresponding amount is capitalised at the Stan of each project, at soon a* the obligation to ineyi such costs arises These costs are charged m the statement of profit or toss «W th« UTe of the operation thrown Ihe iJeprectatwn of the asset arxj the cmivindtiif) of the discount art thn provision The cost estimates are reviewed penotfirally and are adjust**] to reflect known dev^UjurneuLv winch .nay r.avc an impact on the test estimates or life nr operations. Th* cost of me retausd
Is adjusted fat change* .n the provision due to factory such as undated cost estimate?, changes (a lives of operations, rww dfstur tvunce and levtsrons to discount rati** The adjusted cost of the ussel is depreciated prospectively OVQI the Uves of Ihft asset* to Which they relate The unwinding of the eHscount ls shown as frkintn and other cost In the statements of profit nr loss.
(tO EnTirtiKrtBntat lUbilitie*
Frivironment liabiHhes are retogm'jeiJ when the Company heronies obliged, legally or ^Dnsmittlvdy to rectify en viroomenlai damage or perform r^rMittipr wptlc
(t) Litigation
fteovfipon is recognised once it ha^ been KsiablkSfied that the Cflfn|»fly tins .1 present obligation based on consider ahon ol the information which become* Ýd'.'riiriible up la Ihe date oh which the Com party's fiFiamidl statements are fmafrsed and may in some cases retail seeking expert advice in malting the determination on whether there is a |)nswt ntJlrgahtm
Contingent Liabilities
Contingent iiabiNMe* arsing from post tweets the ealsterv;* of which would be confirmed only on occurrence or i win-occurrence of One Cm more Mure uncertain events not wholly within the control of the Com pony or contingent liabilities where there »S a presort ohllgations but it Is not probahte that er-mnmlc benefits would be requited to settle Ite abiiqations art disclosed In the financial statements unless the possibility of any outflow In settlement I* remote
Contingent Assets
Contingent ore not retugriFced In tfie financial statement, pul are disclosed
where an inflow of economic benefits is probaWe
4.7 Leasing At tho inception ol a lease the lease arrangement is classified as either a finance lease
or An operating lease based on the substance of the lease ananijement
thtLatiitioay-ds.iesiar
Amounts due from lessees under finance leases lira recognised *s receivable? at d>* amount of the Company's net investment in the lease*, finance lease income Is allocated to accounting periods so as to reflect a constant periodic rale of return on the rpmwry's net investment outstanding In respwt of the tease-s fteriral income frr.nn operating leases n recognised on s sfrarijhtÝ Une basis over the term :-.f the relevant Initial direict i.utJs incurred rb negotiating and at ranging an
apenabng lease nra added to tht carryrhg amount ur iik> teased anal and recogmsed on a straight-line basis over tiie ii-n&e ter nv
TUfijjjmasdbyas.leMs:
Asset* held undei finance leases ate initially retngnis**] os assets 0< thfl Company at mcnr fair value ai the Inception nr the lease or. If lower at the presern vatu*3 of the minimum lease payments The corresptaidihq liability to the lessen is included in the balance si wet as d finance lease obLigation
Lease payments are apportioned between Finance expenses and induction of the tease obligati net so -t* to Achieve a coo stunt rate of inter ett on the remaining baPiru.= of Oil; liability Flnarw-e e^pvnses are recognised immediately tn profil or loss, untew tlwy are directly attributable to qualifying assets, in which rase they art capitalised in accordance with the Company's general policy on borrowing costs Cant indent rentals are reeognEied as enpenses in the periods in whim iney are incur mh1
Operating lease payments are recognised as an dcpouse on a straight-line basis over lhe lease except where another systematic basis Is more representative of the
time pattern in which economic benefits from the leased asset are consumed. Contingent rentals urging unite operating leases are recognised as an expense in the period In which they are incurred
In Uie event that it-ase mrentives are received id enter into operating teases, such incentives are recognised os a natality The .jggregate benefit of mcanlives u useogrnsert as o reduction nf rental experts a on ;p straight nr# iwfs^ except where another systematic basrs ts more representative of the time pattern in which economic benefits (Vom the leased asset ore consumed
4.6 Invent ones Inventory of raw material, stores end spares are v/iiu^j at cast net of CEWVA7 Vftl
credit wherever applicable Cost is determined on moving weighted average price on real time basts
inventories of finished quodi win i-finished goods and mule in pioctss at* valued h'. lower of cost and net realizable value Cost ts generally determined alt first Jn Ursr exit basis (FIFO) and includes appropriate share of laboui and related overhead? het realizable value ts the estimated soiling puce in itie ordinary course ot business less estimated cost necessary In make the sale
Net realisable value rtprisenrs the ustimolL’d ^ellmg price for invpntenes ItrvS uil Estimated costs ct comiphvtlon Hind costs necessary to make me; sale riot realizable value 'i laken as pet tfwb lainM available price provided by IBM Provision is made for old/ obsolete; surplus/ non moving inventor** as well as other aniirii itecl losses considered wherever necessary
Where physical stock is mure than, the book stock, book Stock 15 considered formal nation of stock Howovitr, surplus slock Is valued al 1 per LOT for tin- virplos stock available as cm the data of dosing
Tho excise duty paya&ii- »n closing stock or Finished goods as the time or sale is not conquered in valuation of closing stock.
4.9Tntf( Trade receivables are amounts due from customers for goods sold or services
receivable performed In ine 01 u,nary course of business If collection ts expert to be collected
within a period of 12 months or less from the reporting date (or in the normal operating cycle of the business 1! longer). they are classified as current assets otherwise as non-current assets
Trade receivables are measured at men transaction price unless it contains a significant financing component rn accordance with |na AS [ft {w when the entity applies the practical expedient) err pricing adjustments embedded In ttw? contract
l.pirs allowance te expected ufo time credit loss is nrcogntsed an initial 1 ecogruudh 4,i0 Financial All financial assets are recognised on (rarte date when the purchase ur a financial .ts.se' Instrument* is under a contract whose term requires delivery of rhe financial asset within me
tiraplrsnw (rstnblishfid by the market concerned Financial assets ore initially measured al fair value, plus tramaction costs, wept Ini r.h'^ financial assets which are classified as at fair value through profit or loss (FVTPt; at inception, All recognised financial asset? are subsequently measured m their ^ltirety at either amortised cosl or fair value
Classiftcalian of financial asset*
Fin and a( assets ore classified as equity irstr iimenl' if rt Is a 1 hjm "denvati vo and the deflnhan of 'equity" for the Issuer futwter Ind ,AS 32 f-urjoc&I /nstrum^nta AreseujatiCHi} All other non-dtuivanvu financial assets ao:- <tebt infttrummts;-
Financial assets at amortised cost and the effective interest method
Debt instruments ore measured at amarhsed cos1 If both of the following condlbms are met
* The assei is httfrj within a business macM whose qtyectitift .5 to hold &sets m Jft^r to Colltcl .:r'titr*ctual rash flaws; and
- the contractual terms of the instrument give rise on speofiod date* id CBili FtoHS that are solely payments or principal and interest on ilu* pnncipn' jnXHjnf outstanding
Onhi pnstTtifmmu moermg tfwse cnlefia are muasuied initially at Fair value pjus transaction costs They aw subsequently measured at amm-nsed cost using me efface intemt method less any imp^rnwnl, with in-rest r«oqnH£d .-*r, an effective yield basis in Imtcsiment income
Financial assets at fair value through other comprehensive ineom«{ FVTOC1)
tretn instruments or? measured at FvtOO if both of the following tondpfipn* ^ne met
Ý the rtssei is held witfiwi a business model wnos* objective t5 to hokt assets in order to etfJMct contractual cash flows and Mining asset*. and the contractual ter ms or the instrument give rrse on specked petes to cash rtows that art solely payments or principal arid merest on in- nfmidjwl amount outstanding
Debt instilments meeting these criterEd or? measured initially at fair value plus transaction costs They an* subsequent ry measured at fair value with any g^ns or losses arrsmg on remeasure ment rt*engnl$«?d in other iwnprehensive inroma’ except fui impairment gains or kss>es and foreign exctiafiqe gams w iosm*?. interest tabulated using the effective interest method is recugrt^ed m the siaiement of pmm and Ion rn imieainwnl Inconw When the ttebl instrument is demwgnsocl the cumulative gain or tea previously recognised in n-rNer comprehensive income -Ý. reclassified to the slatement of profit and tan account a? a retiassiflcatton adjustment
fll initial recognition, an irrevotidsie election ^ made ;on an instrument by-fiystturtent ba^isj to designate mvostments in equity instruments nthH man held for trading purpose at FVTOO
A financial asset l* held fol trading .r
- It has tieon acquired principally fpr the puipose of selling It m the near term w
* on initial retugn*lon it is part of a portfolio of identified financial instruments that the Company manages together and has evidence of a lecuut acuwi pattern Of Phon-lorm profitÝ tartii>g, tit
- it i5 a derivative that ts not designated and effective as a Judging msirumei’.t dr a financial guarantee
investments m equity mitrumenis at FVTOQ are initially measured at TaLr value phis transaction Casts Subsequently. they an* measured at fair value with gains end invses ansrng from change* m to, value- recognised in other rejfntpreiwislve income and uccufnuiatba in the mvestmthnti revaluation leserv? Where the -ssyet is disposed of the cumulative gafri or loss previously accumulated m the investments revaluation reserve IS dirprtly roefassrFlrf to retBinorl earnings.
Im i^uny iristitihiHits measured mil fan value through other comprehensiviE rnconw nn l(Ttp jjrment5 are EeeogniMd ih the stalement of profit and
Urvidonds pn these investmern-i in equity instrumerits ere recognised m the statement of profit and k»5 m investment income when \tu? Company's nghf to reeswe the
dividends Ii It Is prutiahir that the eCnncunk: benefit? associated with llw
divtttend w.ii flow to Ifte enniy. and the amount of the dividend tart be moasurraj rcHptoty
Financial assets at FVTPL
Finanaal assets that 'Ltr-r not meet the aliens erf classifying a? amortised cost Of tair value through otbei oomprelicfisivo meomettesentjed above. «r that meet me criteria but Kit entity ha* chosen to designate as ai FV1FL at rmtJai recoanuron, are measured at FVTTl.
Investments in equity instruments ere classified as at FVTpL, unless the Company designates an Investment that is not held (at trading at FYTt>G at initial recogntoon
Financial asseti classified a FVTPL ace initially measured at fair vatue excluding transaciibn oasts
Financial assets at FVTPL ere Subseqtienlly measured at tan value-, with any nai-ns nr tosses Arising wi remeasuFement recognised m the statement of pro Tit ami loss. The
not qain nr lo« r^rognls*- 1 In |he stetemenl of profit and loss cb Included Jn thfc other gains and Josses' Une Item
Interest income on debt instruments at Fvrrn i* included in me net gain or loss described above
Dividend income on investments jn equity instruments at FVTPV Is recognised in the StaiEment of prcft( and ims In investment income when me Company's light to receive the dividends is established, it is probable that the economic benefits associated mtr-the dividend wi.i now to the entity and the amount of the dividend car be measured reliably
Trade nKeJvafciies, Joan* and ether receivables art classified as subsequently measured at Amcrtis«d roil Tr*de jnd other receivable? -vtuch does not OIkILIhI Arty sigmfiwni financing component are stated at their iransacrion vnluf: as rpduc-ed by Irnpfllimwrt Kisses, if any
Loans and other rtscfflvatues are subsequently measured ai amortized cost using me effective mteiesl method less adiy impairment Intend income ts recognised by applyrnq the affective interest, rate {UR, method
impairment Of financial assets
On initial mcogntttori oMfre financial assc-is, a loss allowanco (Or expected credit loss is recognised for debt instruments ar ammtJseil cost and FVTOd For debt instruments that are measured at fVtQCI, the loss allowance is recognised m other comprehensive nenme m The statement of profit and Jew and does not reduce the carrying amount of the financial asset m the baiam ^ sheet
Expected Ctalit losses at a financial instrument s measured ip a way thm sheets
• an unbiased and prgbabLMy weighted amount that is determined by evaluating a range ol possible outcomes;
- the time value of money, and
- reasonable and Supportable Inracrnal^n that IS available Without undue toil Or effort at the reporting date atom past events, current conditions and ft-reods of future ecnnomit conditions
At each reporting date, me Company assess whether the rredst nsk w a financial instrument has mereaped signiRc^ntty since inrnai recognition.
When making the assessment. the Company compares tne ns* e-t a defauN occurring an the financial instrument as at the reporting cfeie with the risk of a default occurring on the Ikancbsi tr^injiwni .as at the date af mni*i rtcugmtion and consider reasonable and supportable infounatkirt, thal ts LivaHabfe without undue ceil of effort, that 15 indicative of significant increases m credit nsk since initial recognition.
Ifr at the reporting dale, the credit risk on a financial instrument has n01 ™ rawed Significantly since Inktul rerngnitton, the company m mil ires the kiss allowance foi that financial instrument at an amount equal to u--month expected credit IT.
the credit rhk on that financial instrument has increased significantly since initial recognition. the Company measures the low *Umrtnre for a financial instrument at an amrwni. equar lo the lifetime expected credit losses
The amount Df expected credit losses (or reversal; that is required to adjust ihc loss allowance at the reporting date t% rrtugfesed as an Impairment gain or loss in the statement of profit and k»s
Derecognition of financial aetets
The Company dorecognisei a financial asset on trade dat* only when the contractual rights to the cash flows bom tin? ass# expire. or when it transfer* the financial asset and substantially an the nsks and rewards of ownership of the Fjwsjt to another entity if me Company neither uansfw*; nor retains substantially ell the risks and rewards at uwrarSfils afP continues to control rte transferred asset, the Company recognises Its retained Interest in the asset and an associated liability Tor amount* It may have tn pay if the Company retaint substantially all the risks and rewards of ownership of a Transfer™! financial aswi the Company continues to recognis* the financial asset and aiw r« .qnh*& a collateral ised ho flawing for the proceeds recetvedi
On deFecognitJOrt of a financial asset other than in rts entirety (e g when the Company retains an option to repurchase pan: of a transferred asset), the OomiHny aUooites the previous carrying amount of the financial asset between the part It conttnups tig recognise under cnrtiniiing involvement, and tne part it no kmgef lecogo&es on the pftsjs of the relative t*ir values of those parts cm the date of the transfer The difference between the tarrying amount allocated tn the part lha! « no longer recognised and the sum of the nensmeratwn received for the part no longer recognised and any Ýcymiilatlvc gain or loss allocated us H that had boon rr^ogntsed m other comprehensive income ts recognised in the stafemeni uf profit and toss A -cumulative gain or lass that had been recoqnlsee m other compiandnsiv* Income is allocated between the part thyi continues to be reargniwdi and the pad that ts no longer recngrtlsed cm me hash of the relative fair values of those parts
Financial liabilities and equity in*trumnnt# retued by the Company
Classification a* debt or equity
Debt and equity instruments 4re classihed as erther Financial liabilities or as equity In accordance with (he sut^iTKe of the contractual arrengummi
Equity instruments
An equity instrument is any contract that evidences a residual interest in the osm^s of an enur.v after deducting all of 'ts liabilities Equity inJtrtJmoots issued hy the Company are nngpised at the proceeds received, nrt of direct trarf costs.
Financial llahilmec
Financial ItaphlltF^s ace classified as eiiner financial Inabilities M F-VTPL or other
Financial llabtlitwt financial liabilities at fvtpl
nnanaal labilities an t.Jessifted as at fVTPL when me financial I'JtniFty ts fritlisr Meld UK trading or il is designated as at FVTPL
ft financWt hatHlrty is classEfioa as r*?td Tor (radtog if
Ý it nas been aftjgmeii or incurred principally tor the purpose of repurrnastng it in the near term: or
Ý wi initial reengretlon it is part of 4 jrortfnHu of identified finanaal instruments that the Company manages lusher and (or vtfiich there s evidence of a TW* actual pattern of short term profit-taklm. or
- It ii a derivative that to not designated and effective as a hedging instrument
ft fiiwncwi HaMMy nlfiet than a finanaar liapilily held for tradinn may also be designated as « fvtpl upon initial recognition if
' stJt l designation eliminates or agnifieantty reduces a measurement or recognition inconsistency that would otherwise amrf-, or
" Eh* Nobility forms part of a group oi financial assets or financial
liabilities or both, which is managed and it* perform .hics is evaluated on a fail value basis, tn at cord ants- «nh tlw Company s documented risk management or investment strategy, and information about the grouping ts provided internally an that basis; or
11 it farms part of a oontiact containing one or more embedded derivatives and I fid AS 159 Financial Instruments permits the entire combined conhart to be designated as at FVTPL.
FmpnciaE liabilities at FVTPL are slated at fair value, with *>y gams or losses rising on r^measurement recognised jn the statement of profit and toss except ro< the amouin of change in the iftir value dl the financial liability ttiai n *rhmutable to Cannes in me credit rush of (ha* liability which is recognieed tn ruber compiehensivc income
mn net gain or loss recognised in the statement of profit and Jess incorporates any mierest pay: on the finance liability
Other financier liabilities
Oiiwr Tlnarvjfll liabilities, including Cfomovnrujs. aier mtisliv measured dl fair value, net of transaction costs
Other financial liabilities are subsequently measured at amurttsed tosL using the effective inreitsi ttfothod with Intwi^i expense recognised on an effective yield basis
The effective interest method is a method or calculating [he amortised cost of a financial liability and of ailccabng interest expense oyer tin* relevant jjcrlod Th* offoorve interest rate it the rate thai exactly discounts estimated future cash payments through the exported life of the Financial liability, or (where appropriate) a shorter period, tai this net carrying amount 00 initial reosgnmpn
iradi- arid other payables dm r^ugntwid at their transaction cost, which if ns fab value, and subsequently measured 4t ^mortised cost
Rndncifl.1 assets arid UabHlbe* *re offset and the net amount repoitmJ to the balance Sli^i when there is a legally enforceable right to offset t!w recognised amount* am) then? ts an intention (a settle on a net basis or realise the asset und settle the liability iimuttahOOu-Stv, The iiniiifiy rmfinrreable fHjW mList not bo Contingent rvr future eviant, ?nd must fre enlarceabto lit the normal course of business ana ro the event or default, in^vency w bankruptcy of the Company or the counterparty
4,1 iCflsh and Cash and cash equivalents comp n vs cash at bant and m hand and short-h?rm deposits cash equivalent* with an original maturity of three mnnth* or less
4.12 Accounting Government grants are reoognfcred when there is reasonabto assurance fhctl we wU tor government damply wtti rhe bondmans Attaching to them and that the grant* will be received grants
Government grants are recognised in the statement of profit ano loss on a systematic basu over (he penods m which the Company uxogniipj as expenses lf>e related costa tor which the grants are Intended to camptrisate Government grants whose primary condition is that the Company should purchase. construct or otherwise acquire non-curfeot assets ai e recognised m the bdWnti she** by netting up the grant as .J*?fFrre<f income.
other government grants {grants related to Incoino) are reeognLied as Income avei the perioas riOOe*.sarY to match them with the cotes for which they are intended to Comi^nMW. ori a systematic basis. Government grants that are receivable as compensation for expenses tn losses already Incurred or for the puqro$t< of providing immediate financial support with no hitun- relatM costs are recotjni/ed m (he statement of profit and loss in the period in which they become receivable
Grant* related in income an* nresenbid under other ihcrnne m the stare m^nf ol profn and loss except fpr grant received in the form or rebate nr exempBon which are deducted m reporbng the reteteo ewHmse.
4.11 Employee Retirement benefit, medical coses and KimmatiDn benefits Benefits A defined cmtnlhitliin plan is a pension plan under which the Company pays fiMjd
conlrihutiuns into a Separate -'ntity Ihe Company ha* ns legal or condrudivc obligations to pay further contnbuhun* if the fund does not hold sutfkient asset* to pay an employees the benefit* relating to *M7>ployee service m the current mm prior perods. Payments to defined ccrntnbution retirement benefit plan* ore recognised as an expense when employees Pave rendered service entitling them ra (be contnbutlofis
far defined benefil retirement and mediral ptans, the msT o| providing benefits i* determined using the prpJ^cTJjd UhlE credit method, wffh ^ctoarutl valuations beiny carried out at the end of each annual reporting period The preienl value nr rh^ defined benefit uLiiigatieih l* rferermined by discounting the esumated future rash outflows using interest rate ?# government bonds. In countries wh^m there n a deep ruorfcei In high guilty corporate r*>Pds, Hie market rare on those bonds I hat art dGnoerunaied In the currency in which the benefits will do paid, and mat have terms tu marprrty apprommai mg to the terms of the retaiecr pension obligation are used
Remeasure men t. comprising actuarial gains and tosses, ih* effect of die change to the asset selling (if applicable) end the return on plan Jiieb icmdudinr, interest), is reflected in the balance sheet with a charge or credit recognised m nmer comprehensive income In the period m which they occur RertiefliuramerU recuqr.tsed in otlrcr rampri’hensrive income is reflected imnnidiuteiy in retained eacrirngs and will Pul be reclassified tu tftc flutement uf ptont and Ins* Pa>! service cost t* recognised In tht statement u! prefir and lou in the period of a plan amendment Met interest is ralcutated by apply UK) Ihe discount iat^ at the beginning of the period to the ™?t defined beoefii liatuNiy ot asset [defined benefit costs are categorised as follows
Ý service cost {including tuffonl cast, post servicti cmt, as well as y*ns
and ibises w curtailments and settlemenls)!
* rn*t i merest expert of income; and
Ý fte measurement
rue Company presents Mre lira rym componenis of defined benefit costs tn the-statement of profit and 1ms in the line Hem employee benefit* expense Cuilaiimtnt gains and Ims» are accounted for as past service costs
tlw’ retirement t»rwfH obligation recognised m tno balance shenl represents the iituul
diflcn Dr Surplus in the Company's defined benefit plans Any surplus rebutting from HifS calculation is limited to the present value of any miHKinnc beneiiia available in the form of refunds from the plahs or reductions in future cantjjijutioi \s to the plans.
H3e_ Company urpyktes ..tstirtpu [*nn:itti_ln the nature uf provident fund, iitpstann^tipn and graumcv.tQ its employees,
Ob!J£iatJWtt lor contribution to provident fund and superar>puac.an fund are ciassilicu as def'fi™ Wttftm whtreas retirma arafajftv ta. daasffled as dcflmtf bmen: daps,
A liability far a termination benelH is recognised at the earlier of whon the entity can ho longer withdrew the offer of the IcrmlraCKtn benefit and wln>n the entity recognises any related restructuring costs tn the ewe of an offer made to encourage voluntary 'edundancy tlw termination benefits are measured bawd on in* numbd of empiuyM* expected tn accept the oWf* Benefits failing doe more than J3 month* after the ehd of the reporting period ar* discounted to lh*ir present value.
Short-term and other long-term employee benefits
A liability Is recognised for benefits * mung lu employees m respect <il wages and salaries, annual leave and sick leave In the period the rented service «s rendered a; Ihe undLscounted *mo.m nf the benefits expected to he paid in nclunge for that service
i irtfuiiMes recognised tn respect of short-term employee benefits are measured at the tindtscQimreb amount of the benefits expected to be paid in exchange for the related service
Other long‘term employee benefits
Liabilities recognised In respeo of othei long-term employee bene-tiis are measurer! at the i;rwent value of the estimated fulure cash outflows expected 10 be made by lit* Company in respect of services provided t>y employ eet up to the reporting date hie erpiictifd costs of these benefits are accrued over the per sod of employment using the tame accounling methodology as used far defined benefil retirement plans Actuarial ^flrns and losses arising from experience adjust mu nrs and changes in actuarial assumptions are Charged or tr&diLed to ihe statement of profit ami Inst III Hie period in which they arise These obligations are valued annually by rndepondont qualified actuaries
The Company is providing benefits in Ihe nature of compenpn absences tc Us employees which are classified as other long term employee benefits A. td Income Te* expense represents the sum of current tax and rfcfsrret) tax Taxes
Current lax is provided 41 Amounts expected to be paid lor recovered) ifSing lluMsi retes and laws that have been unacn?d or *ubstantivefy anacted oy the reporting dais atw inelutKr* arty adjustment tn tax payable in respect nf previous years $ub}«i to exceptions betoiv, deferred re* nroviried, using the balance sheet method, on 4II minporary diffarenOBS at rue lepiirt-ng oale between the ta^ bates or ^nsct* jnd liabilities and (Heir rarrymu amounts for financial importing purposes
* tax paynbte On the future rwrUttahOf cxf (he ws-t earnings erf subsidiaries whets the timing of the reversal of hit; temporary differences can by controlled ^rte il is nrnliatirt' that the tempurary differences wUf not r*-utin,e* m the foreseeable future and
* deferred lax assets are wogntsed only to the extent that ft to more lively than tun that they will be rWrjvered
Deterred Tax asset-* and liabilrtiqs are measured at the ta* rates that am expected iu apply to the year when the asset H realized1 or Mw irabiNty ft Settled, based wi lax rates {and tax idws) that have been enaaed « substantively enacted ^1 tte? repotting date Tax relating to Items recognized dlreclJy Lo other cqrnprehensrvo Income & recognised In the statement of comprehensive mcome and not in I he statement qf profit or toss.
Thp carrying amount ol defened tax assets is renewed at eacfi reporting dale and .-> adjusted to the extent that it is no longer probate that sufficient taxable profrt wit oe Available to allow alt or part or the asset to he ioj.uvered
fteferned tax asvrfs and labilities are offset when moy relate to Joconve taxes levied by (In- h™ taxation authority and the relevant entity incurtes to settle its current ta? Users and liabilities on a net bun
4-15 Revenue Revenue hs measured at Thff rap value uf the consteer atlon received or receivable recognition Revenues are leduced for estimated rebates and othirr similar allowances
Kates of Goods
The Company derives revenue principally from -wale of Lrpn. manganese and sponge iron. I he Less* rights of all the six mines huy* expired Presently, all ibp six mines are inoperative du^ to non-ava liability of Forest -md ffivnotiment cieaiwnco and hence the Company dues not has any revenue trnm $ak; of goods
Income from dividend, interest arte rents Dividend
Orv.Licrtes income finm Investments am to be recognised when fht; nght lo receive the drvictend is a-'BpNshrt
interest
Interest mtume from a financial ^ssel Is r iitoy nriied when « ,s probable rtut me economic benefits will flow to the Company and the amount of im-oms can be measured jelpatHy. interest intome ft accrued on a nmv basis, by reference to the principal outstanding and at The effective Interest rate applicable, which is the mtxt [liar exactry discounts estimated Mure cash receipts through the expectc-d life of me financial asset to that asset s net carrying amomt on initial recognition
Consideration leceived from the authorities flu use of a part of [fie available tentinm or the Company k recognized as revenue m Hte vear of receipt/ reaUHtten
V .. y. ;
Oaims are atroiiirtetl for m the statement of Profit and i.i?s5 based on certainty of Hieir raa&aoon
4,16 Firsl lime adoption mandatory exception!, Optional exemption*
4 .tv.l.Ov.ewliiirl^tip'e
The Lrfm,p*ny tw prepared |he opening balance sheet OS l>f?r Ind AS or t April1, 2tllS the transition date; by recognizing a Cl aswis and liabilities whose recognition ls required by Lid AS. not recognizing items or assets and liatwHdes winch are not permitted by ind AS, by rectas^Ffying Items from devious GAAP ta Ind AS as rwquiiud under tnd AS, and applying tnd AS in measurement of recognized assets and liabilities However, yog principle .', nuject is the certain ein?ptiun and certain optional exemptions jvailed by hm* Company as detailed below
h lfr.2 PeiaggatoPP of, financial #&stL3«f flnatKJ^i Mitte
me Company has applied the dpmttjoihan roquirementt of financial assets arm fnunitwil liabilities
(wnspectivelv tor Iwsachms occurring on Ý it after 1 April, 2015 frtu? transition dar,>;i
4J&I Ctassincatinrr of debt instruments
The Company has determined iht- classification of defcn instrument* m terms of whether they meet the amortised cost criteria or the FVroci criteria based an the facts anti circumstance? that existed as ur the transition date
4.IM Impair mm of financial assets
The Company has Applied the inipakinrmE itqu'remenls of md AS 109 retrLispeclively. however, permitted by tnd AS IU1. it has used reasonable 3«d supportable information drat re available without undue cost or sfTorT to detwrmine the Ý man ri^k. at the dale ’.tun financial instruments weft initially recognized m order to compare it with the ci-edit ngk m the rrarrsrtion date- Further. the Company has nm undertaken an exhaustive sieapth far lnfcrinjEiurt when determining, at the date of transition to Ind A5i, whither irwre have been gigniFTcani increases m credit risk since imtiat recognition, as perminud by Ind AS 101
'Ll*. ^..AssiSfiniflnE oi.smtesFueu dgr>vt&ic«&
The Company has assessed whether an embedded derivative ts required to tie separated Pram the host contract and accounted for at a derivative on the basis of the conditions that existed at the late? of Hit Aiiu n h-st became a party to the conn act and the date when there pas bean a change in the terms o< the contract that significantly modiFIes the cash flows diet otherwise would be Ý I '.iuired unde? the contract
J_L6.6..LWmv i aMpj-jwnif. P^nt aid equipment ana umnaibh? assets
The Company has elected to continue with trie carrying value ur ail nr ns pdam and equipment and intangible awetn necogniraej as of 1 April, 2015 Itransihofr date-l measured as per the previous GAAl* and use that carrying value as ils deemed cost as of the tinosilitm datH.
'Ý If f Doteimuting wnether an arrangement contains a mas*
The Company nas applied Appendix C <rF Incf AS 17 Determining Ltftefhei sn .4flv^emenf si'jif,aui5 a tease to detqnhlne wtethei j11 arrangement existing at the date al transmoo date contains s tearid on the basis of facts and circumstances existed at fitet date
S. Critical iccounting judgements and key source? of estimation uncertainty:
1'n the application of the Company's arcpuntirig polices which aie described nr. note 3. the management erf me Lumpony is requirifrd to make judgements, estimates and assumption* about the carrying amounts of assets am; I'atHlitipt that are nor r^^cTjly aptiarem from other sources Ihe estimates and associated assumptions are based on historical experience and other Factors that are considered in be relevanl Actual results may dlher from these estimate
estimates and underlying assumptions ary reined on an ongoing basis ftavttfons to accounting estimates ant reeogr1[Wd (n the period m which the estimate is re visas if rbe rtvtekm affecb only that period, or in the period of lh« revision and future periods if the revision alfem hath current and future periods
5.1 CrlttOl judgements In applying accounting policies:
the following are the o-rbcai judgements, apart from those involving estimations (sea note 4 2 beiow), thai the management haw made In the ptatess of applying Ltw Company's accounting pqJ.u-- on ] that havt U>y mi^r significant eltet-t (Mi (he amounts recognised in the rinaricjal sialjfrnents
j..l 1. Finarloa] .asserts .at omoCUsed cost ;
-}i« managemem Hat i eviemed tin* Company's financial assets at amomsed cost in the light of m busings marfci and nave confirmed the Company's positive intention and abritry to hrtd uw« financial assets tn collect uMiuacruat cash Hows The tarrying amount of these financial assets Es Rs i.ukfe iMatth Ji, zoifc
Rs S? if-] 97 Lakhs) Details orttw*sn assets are set suLin note J3
s_i. i P^i^n.fnrJ^i^auijM and rtlwfaHHatiwi of mining sites *
Prnuisions ate regonisaJ lor costs associated with rabhttlMt and rrtiabditaUon of mining situs as soon the obifgdtjon to incur such costs arises. Such restoration end tfmore costs are typical of extractive industries nrid they art normally tneum'd at the end of 1he irre. of the mines. TH& rosK are estimated on the basis of mine closure plans and life estimated discounted costs of dismantling and removing these facilities Md tut costs oi restoration are capitalised when incurred ^effecting thy Company's obirgatiQns at trial time.
A corresponding provision is coated on the liability side, fhe capitalised asset is recognised (n (he Statement of Profit Of Loss ovei the iiof rfie nsset through dvpre: latJnu over the life or the operation and the provision -s inor-ased each period through unwinding me discount on the prevision. Wanagemenl esii mains ar* tiased on local ieglsiatfon and/or other agreements The actual Owls and cash amffaws may differ Frtwn estimates ber-iut* or Change in laws and reguJatrons. changes in prices, analysis of s.te condition.* and ct>in,j« in restoration technology
5 1J Q« re^rve and nOtratai resource estimates
I fie Company estimates and reports we reserves undei the principles contained wrttiki the guidelines issued bv the Indian Bureau <iT Mines (ifJM) - including'
* future production estimate* - which include proved and probable reserves, resource estimate and commuted expansions.
LA 'I Deferred stripping exp^UllMK
The Company defer? stripping (waste removal) costs incurred during the production phase of ns operations TTns calculation retires the use of lodgements ano estimates relating to tiv expected tonra of waste to he removitd over the life ol die mining ar« and the expected economically recovet able reserves to t>e extracted as a result This information ts used tu rafculate the average life of mine strip ratio (expected waste n? expected mineral reserve ratioj, Changes in a mine's rife arid design will usually result in changes ip the average life of mine strip ratio These changes are at roundel For prospective y
5.2 Key sources pf esttmadon uncertainly:
The follnviing ar*; tne key jiSunnpdon? concerning the future, and other key source uf estimatiort LnK.r:n.rtinfy at tfiv enrj (if Ih f reporting period Ihat may have a significant r&k of causing a matEnar wjusiukkh tn the carrying anKwnta ol assets and liabilities within the neat financial year
III g«*fgi iiygs qf.fKqp&rty^jjanLaFijl. egu ipragoL
A* described tn note 4.J abovf, the Company reviews the estimated useful lives of pioperty, plant and ÝQUIPth*i* at the end of each neportmg penort However, since The fea.se or mines liave expired -tnd not rtnewr-d Ml dace, the corn parry ls not in j position io review and assess lt>e usefel life of the assets constructed over such leases
Fair, ualue meaaui ements end valuation prpceaaes
Stum of The Company's Jssets and llafeMies measured at fau vhIlih fo< finarnriai repcrtlng r'qrpnses In estimating the lair value of an assets at a liability, the company uses market reiservable data to [h^ exterA n is availabfe. Where fevei i inputs ari? r»i dvaiidble, the compariy engager third party qualified valuers to perform the valuation.
39. The accounts have been prepared on Going Concern Basis. The Bagiaburu Iron Mines started operating from 14.12.2023. The Company is constantly following up for renewal of mining leases for remaining two mines i.e. Belhundi and Bhadrasai Mines.
40. Confirmation of balances in respect of advances, receivables etc. are sent on quarterly basis and annually. The effect of any adjustment, as may be required, on reconciliation with the confirmation of the parties will be done in future years, after receipt of confirmation.
41. The effective date for adoption of Ind-AS 116 is annual period beginning on or after April 1, 2019. From the classification of applicability, in respect of OMDC, Ind-AS 116 can not be made applicable.
42. Previous year's figures have been re-grouped and rearranged wherever necessary to confirm to this year's classification.
For & On Behalf of Board of Directors
As per our report of even date attached.
For O. M. Kejriwal & Co. Sd/- Sd/-
Chartered Accountants (Atul Bhatta) (A. K. Bagchi)
frn No.314144E Chairman Managing Director
DIN:07639362 DIN:09835584
Sd/- Sd/-
(CA Swati Kejriwal) (Ramakanta Behera) (S Raja Babu)
Partner CFO Company Secretary
M. No.067891
UDIN:24061891BKBEDA5228 Place: Bhubaneswar Dated:12/08/2024
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