1.3. Summary of Material accounting policies

A. Property, plant, and equipment

Property, plant and equipment are stated at their
cost of acquisition / installation / construction net
of accumulated depreciation, and accumulated
impairment losses, if any, except freehold
non-mining land which is carried at cost less
accumulated impairment losses.

Subsequent expenditures are included in the
asset's carrying amount or recognised as a
separate asset, as appropriate, only when it
is probable that future economic benefits
associated with the item will flow to the Company
and the cost of the item can be measured reliably.

When significant parts of plant and equipment
are required to be replaced at intervals, the
Company depreciates them separately based on
their specific useful lives. Likewise, when a major
inspection is performed, its cost is recognised in
the carrying amount of the property, plant and
equipment as a replacement if the recognition
criteria are satisfied. All other repairs and
maintenance are charged to the statement of
profit and loss during the reporting period in
which they are incurred.

The present value of the expected cost for the
decommissioning of an asset after its use is
included in the cost of the respective asset if the
recognition criteria for provisions are met.

Spares which meet the definition of property,
plant and equipment are capitalised as on the

date of acquisition. The corresponding old spares
are derecognised on such date with consequent
impact in the statement of profit and loss.

Property, plant and equipment which are not
ready for their intended use as on the balance
sheet date are disclosed as "Capital work-in¬
progress". Directly attributable expenditure
related to and incurred during implementation
of Capital projects to get the assets ready
for intended use and for a qualifying assets
is included under "Capital work-in-Progress
(including related inventories)”. The same is
allocated to the respective items of Property Plant
and Equipment on completion of construction
(development of projects). Capital work in
progress is stated at cost, net of accumulated
impairment loss, if any. Such items are classified
to the appropriate category of property, plant
and equipment when completed and ready for
their intended use. Advances given towards
acquisition / construction of property, plant and
equipment outstanding at each balance sheet
date are disclosed as Capital Advances under
"Other non-current assets".

Capital expenses incurred by the company on
construction/development of certain assets
which are essential for production, supply of
goods or for the access to any existing Assets of
the company are recognised as enabling Assets
under Property, plant and equipment.

Depreciation on property, plant, and
equipment

a. The Company, based on technical
assessment made by technical expert and
management estimate, depreciates certain
items of building, plant and equipment
over estimated useful lives which are
different from the useful life prescribed in
Schedule II to the Companies Act, 2013.
The management believes that these
estimated useful lives are realistic and
reflect fair approximation of the period
over which the assets are likely to be used.
Depreciation is calculated using "Written
down value method” for assets related to
Captive Power Plant and using "Straight line
method” for other assets.

b. The Company identifies and depreciates
cost of each component / part of the asset
separately, if the component / part have
a cost, which is significant to the total
cost of the asset and has a useful life that
is materially different from that of the
remaining asset.

c. Depreciation on additions to property, plant
and equipment is provided on a pro-rata
basis from the date of acquisition, or
installation, or construction, when the asset
is ready for intended use.

d. Depreciation on an item of property, plant
and equipment sold, discarded, demolished
or scrapped, is provided up to the date on
which the said asset is sold, discarded,
demolished or scrapped.

e. Capitalised spares are depreciated over
their own estimated useful life or the
estimated useful life of the parent asset
whichever is lower.

f. The Company reviews the residual value,
useful lives and depreciation method on each
reporting date and, if expectations differ from
previous estimates, the change is accounted
for as a change in accounting estimate on
a prospective basis. The residual values,
useful lives and methods of depreciation of
property, plant and equipment are reviewed
at each financial year end and adjusted
prospectively, if appropriate.

g. In respect of an asset for which impairment
loss, if any, is recognised, depreciation is
provided on the revised carrying amount of
the asset over its remaining useful life.

h. Property, plant, and equipment, constructed
by the Company, but ownership of which vests
with the Government / Local authorities:

i. Expenditure on Power lines is
depreciated over the period as
permitted in the Electricity Supply Act,
1948 / 2003 as applicable.

ii. Expenditure on Marine structures
is depreciated over the period
of the agreement.

The Management believes that the
useful lives as given above reflect fair
approximation of the period over which the
assets are likely to be used.

Derecognition of property plant and
equipment

An item of Property, Plant and Equipment
and any significant part initially recognised is
derecognised upon disposal or when no future
economic benefits are expected from its use or
disposal. Any gain or loss arising on derecognition
of the asset (calculated as the difference
between the net disposal proceeds and the
carrying amount of the asset) is recognized in
the Statement of Profit and Loss when the asset
is derecognised.

B. Intangible assets

Intangible assets acquired separately are
measured on initial recognition at cost.
Cost comprises the purchase price (net of tax
/ duty credits availed wherever applicable) and
any directly attributable cost of bringing the
assets to its working condition for its intended

of profit and loss unless such expenditure forms
part of carrying value of another asset.

Stripping Cost - Stripping costs are allocated
and included as a component of the mine asset
when they represent significantly improved
access to limestone, provided all the following
conditions are met:

a. it is probable that the future economic
benefit associated with the stripping
activity will be realised.

b. the component of the limestone body for
which access has been improved can be
identified; and

C. Impairment of non-financial assets

The carrying amounts of other non-financial
assets, other than inventories and deferred tax
assets are reviewed at each balance sheet date
if there is any indication of impairment based
on internal / external factors. An impairment
loss, if any, is recognised in the statement of
profit and loss wherever the carrying amount
of an asset exceeds its recoverable amount.
The recoverable amount is the higher of the
asset's fair value less cost of disposal and value
in use. Recoverable amount is determined
for an individual asset, unless the asset does
not generate cash inflows that are largely
independent of those from other assets of or
group of assets. In assessing value in use, the
estimated future cash flows are discounted to
their present value using a pre-tax discount rate
that reflects current market assessments of the
time value of money and risks specific to the
assets. In determining fair value less costs of
disposal, recent market transactions are taken
into account. If no such transactions can be
identified, an appropriate valuation model is used.
A previously recognised impairment loss, if any, is

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

Derecognition of intangible assets

An intangible asset is derecognised on disposal, or
when no future economic benefits are expected
from its use or disposal. Gains or losses arising
from derecognition of an intangible asset, if any,
are measured as the difference between the net
disposal proceeds and the carrying amount of
the asset and are recognised in the statement of
profit and loss when the asset is derecognised.

reversed when there is an indication of reversal,
however, the carrying value after reversal is not
increased beyond the carrying value that would
have prevailed by charging usual depreciation /
amortisation if there was no impairment.

D. Inventories

I nventories are valued at lower of cost and net
realisable value. Costs incurred in bringing each
product to its present location and condition are
accounted for as follows:

I. Raw materials, stores and spare parts,
fuel and packing material:

Cost includes purchase price, other costs
incurred in bringing the inventories to their
present location and condition, and includes
non-refundable taxes. Materials and other
items held for use in the production of
inventories are not written down below cost
if the finished products in which they will be
incorporated are expected to be sold at or
above cost. Cost is determined on a moving
weighted average basis.

The Company conducts regular reviews
of stores and spares inventory ageing to
identify slow-moving and non-moving items.
Inventories with limited movement and low
anticipated future utility are appropriately
identified. The Company applies established
provisioning norms to write down the
value of such inventories, based on the
ageing analysis.

II. Work-in-progress, finished goods and
stock in trade:

Cost includes direct materials and labour
and a proportion of manufacturing
overheads based on normal operating
capacity but excluding borrowing costs.
Cost of Stock-in-trade includes cost of
purchase and other cost incurred in bringing
the inventories to the present location and
condition. Cost is determined on a moving
weighted average basis.

Net realisable value is the estimated selling
price in the ordinary course of business,
less estimated costs of completion and
estimated costs necessary to make the sale.

E. Investment in subsidiaries, associates, and
joint ventures

Investments in subsidiaries, associates and
joint ventures are accounted for at cost, net of
impairment, if any. Cost includes transaction
cost which is directly attributable to the cost of
acquisition of the investments.

F. Fair value measurement

The Company measures financial instruments,
such as, government securities and mutual funds
at fair value at each balance sheet date.

The fair value measurement is based on the
presumption that the transaction to sell the asset
or transfer the liability takes place either:

a. In the principal market for the asset
or liability, or

b. I n the absence of a principal market, in
the most advantageous market for the
asset or liability.

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
the statement of profit and loss are recognised
immediately in the statement of profit and loss.

I. Financial assets

a. Initial recognition and measurement of
financial assets

The Company recognises a financial asset in
its balance sheet when it becomes party to
the contractual provisions of the instrument.
All financial assets are recognised initially
at fair value, plus in the case of financial
assets not recorded at fair value through
profit or loss, transaction costs that are
attributable to the acquisition of the
financial asset. All regular way purchases or
sales of financial assets are recognised and
derecognised on a trade date basis, i.e., the
date that the Company commits to purchase
or sell the asset. Regular way purchases or
sales are purchases or sales of financial
assets that require delivery of assets within
the time frame established by regulation or
convention in the marketplace.

The classification of financial assets at
initial recognition depends on the financial
asset's contractual cash flow characteristics
and the Company's business model
for managing them.

Trade receivables that do not contain a
significant financing component or for
which the Company has applied the practical
expedient are measured at the transaction
price determined under Ind AS 115.
Refer to the accounting policies in section
(I) Revenue from contracts with customers.

b. Subsequent measurement of
financial assets

All recognised financial assets are
subsequently measured in their entirety at
either amortised cost or fair value, depending
on the classification of the financial assets.

Classification and measurement of
Financial assets

For purposes of subsequent measurement,
financial assets are classified in the
following categories:

Financial assets measured at amortised cost

Financial assets that meet the following
conditions are subsequently measured at
amortised cost using effective interest
method ("EIR") (except for debt instruments
that are designated as at fair value through
profit or loss on initial recognition):

Ý The asset is held within a business model
whose objective is to hold assets for
collecting contractual cash flows, and

Ý Contractual terms of the asset give
rise on specified dates to cash flows
that are solely payments of principal
and interest (SPPI) on the principal
amount outstanding.

Amortised cost is calculated by taking
into account any discount or premium on
acquisition and fees or costs that are an
integral part of the EIR.

Financial Assets at Fair Value through
Other Comprehensive Income (FVTOCI)

Financial assets that meet the criteria
for initial recognition at FVTOCI are
remeasured at fair value at the end
of each reporting date through other
comprehensive income (OCI).

Financial assets at fair value through profit
or loss (FVTPL)

Financial assets that do not meet the
amortised cost criteria or FVTOCI criteria
are measured at FVTPL.

c. Derecognition of financial assets

A financial asset (or, where applicable, a part
of a financial asset or part of a Company
of similar financial assets) is primarily
derecognised when:

i. The rights to receive cash flows from
the asset have expired, or

ii. The Company has transferred its
contractual rights to receive cash
flows from the asset or has assumed
an obligation to pay the received cash
flows in full without material delay to
a third party under a 'pass-through'
arrangement and either (a) the
Company has transferred substantially
all the risks and rewards of the asset, or
(b) the Company has neither transferred
nor retained substantially all the risks
and rewards of the asset, but has
transferred control of the asset.

On derecognition of a financial asset in
its entirety, the difference between the
asset's carrying amount and the sum of the
consideration received and receivable and
the cumulative gain or loss that had been
recognised in other comprehensive income
and accumulated in equity is recognised
in the statement of profit and loss if such
gain or loss would have otherwise been
recognised in the statement of profit and
loss on disposal of that financial asset.

d. Impairment of financial assets

The Company applies the expected credit
loss model for recognising impairment
loss on financial assets measured at
amortised cost, trade receivables and other
contractual rights to receive cash or other
financial asset.

The Company measures the loss allowance
for a Trade Receivables and Contract
Assets by following 'simplified approach' at
an amount equal to the lifetime expected
credit losses. In case of other financial
assets 12-month ECL is used to provide for
impairment loss and where credit risk has
increased significantly, lifetime ECL is used.

The Company considers a financial asset in
default when contractual payments are 90
days past due. However, in certain cases, the
Company may also consider a financial asset
to be in default when internal or external

information indicates that the Company
is unlikely to receive the outstanding
contractual amounts in full before taking
into account any credit enhancements held
by the Company. A financial asset is written
off when there is no reasonable expectation
of recovering the contractual cash flows.

II. Financial liabilities and equity
instruments

a. Financial liabilities

i. Initial recognition and measurement

The Company recognises a financial
liability in its balance sheet when it
becomes party to the contractual
provisions of the instrument.
The Company's financial liabilities
majorly includes trade payables and
payable towards purchase of Property,
Plant and Equipment.

All financial liabilities are recognised
initially at fair value and, in the case of
payables, net of directly attributable
transaction costs.

Financial liabilities are classified, at
initial recognition, as financial liabilities
at fair value through profit or loss or at
amortised cost as appropriate.

ii. Subsequent measurement of financial
liabilities at amortised cost

Financial liabilities that are not held-for-
trading and are not designated as at
FVTPL are measured at amortised
cost at the end of subsequent
reporting periods. The carrying
amounts of financial liabilities that are
subsequently measured at amortised
cost are determined based on the
effective interest rate method.

iii. Subsequent measurement of financial
liabilities at fair value through profit
or loss (FVTPL)

Financial liabilities at fair value through
profit or loss include financial liabilities
held for trading and financial liabilities

designated upon initial recognition as
at fair value through profit or loss.

Financial liabilities are classified as
held for trading if they are incurred
for the purpose of repurchasing in the
near term. This category also includes
derivative financial instruments
entered into by the Company that are
not designated as hedging instruments
in hedge relationships as defined by
Ind AS 109. Separated embedded
derivatives are also classified as held
for trading unless they are designated
as effective hedging instruments.

Gains or losses on liabilities held for
trading are recognised in the statement
of profit and loss.

Financial liabilities designated upon
initial recognition at fair value through
profit or loss are designated as such at
the initial date of recognition, and only
if the criteria in Ind AS 109 are satisfied.

iv. Derecognition of financial liabilities

A financial liability is derecognised
when the obligation under the liability
is discharged or cancelled or expired.
When an existing financial liability is
replaced by another from the same
lender on substantially different terms,
or the terms of an existing liability
are substantially modified, such an
exchange or modification is treated
as the derecognition of the original
liability and the recognition of a new
liability. The difference in the respective
carrying amounts is recognised in the
statement of profit and loss.

III. Offsetting of financial instruments

Financial assets and financial liabilities
are offset, and the net amount is reported
in the balance sheet if there is a currently
enforceable legal right to offset the
recognised amounts and there is an intention
to settle on a net basis, to realise the assets
and settle the liabilities simultaneously.