Note 2: Material Accounting Policies
2.1 Basis of Accounting
The financial statements are prepared under historical
cost convention from the books of accounts maintained
under accrual basis except for certain financial instruments
which are measured at fair value and in accordance
with the Indian Accounting Standards prescribed under
Companies Act, 2013.
2.2 Application of Indian Accounting Standards (Ind-AS)
The Company adopted Indian Accounting Standards
(Ind AS) from April 1, 2016 and accordingly the financial
statements have been prepared in accordance with the
recognition and measurement principles as notified by
MCA under the Companies (Indian Accounting Standards)
Rules, 2015 (“Ind AS Rules”), as amended and other
relevant provisions of the Companies Act, 2013.
The Company has complied all the Ind AS as applicable
and relevant to the Company.
2.3 (i) Use of Estimates
The preparation of the Company’s financial statements
requires management to make judgements, estimates
and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and
the accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of
assets or liabilities affected in future periods. Revision
to accounting estimates are recognised in the period
on which the estimates are revised and, if material
their effects are disclosed on the notes to the financial
statements.
(ii) Changes in Accounting Policies and Errors
a) Any change in Accounting Policy is applied
retrospectively, unless impracticable, adjusting the
opening balance of each affected component of
equity for the earlier prior period presented and the
other comparative amount disclosed for each period
presented.
b) Errors/omissions discovered in the current year
relating to prior periods are adjusted during the
current year, if all such errors and omissions in
aggregate does not exceed 1% of total Revenue from
Operation (Net of statutory levies) as per the last
audited financial statement of the company.
2.4 Current and Non-current Classification
The Company presents Assets and Liabilities in the
Balance sheet based on current/non-current classification.
An asset is treated as current by the company when:
a) its expects to realize the asset, or intends to sell or
consume it in its normal operating cycle;
b) it holds the assets primarily for the purpose of trading;
c) it expects to realize the asset within twelve months
after the reporting date; or
d) the asset is cash or cash equivalent (as defined under
Ind AS 7) unless the asset is restricted from being
exchanged or used to settle a liability for at least
twelve months after the reporting period.
Except the above, all other assets are classified as Non¬
current.
A Liability is treated as current by the company when:
a) it expects to settle the liability in its normal operating
cycle;
b) the liability is due to be settled within twelve months
after the reporting period; or
c) it does not have an unconditional right to defer
settlement of the liability for at least twelve months
after the reporting period.
Except the above, all other liabilities are classified as
non-current.
2.5 Revenue Recognition
Revenue is measured at the consideration received
or receivable and contractually as per defined terms
of payment. Operating revenue recognized is net
of discounts, rebates and/or any other incentive to
customers.
(i) Sale of Products
An entity shall account for a sale contract with a customer
only when all of the following criteria are met:
(a) the parties to the contract have approved the
contract (in writing, orally or in accordance with other
customary business practices) and are committed to
perform their respective obligations;
(b) the entity can identify each party's rights regarding the
goods to be transferred;
(c) the entity can identify the payment terms for the goods
to be transferred;
(d) the contract has commercial substance i.e the risk,
ownership, timing or amount of the entity's future
cash flows etc is expected to change as a result of
the contract; and
(e) it is probable that the entity will collect the consideration
to which it will be entitled in exchange for the goods
that will be transferred to the customer.
Performance obligation is satisfied when customer
obtains control of the goods or services promised
as per the contract. The control of the goods or
services are transferred to the customer when legal
title, physical possession, significant risk and rewards
of ownership passes to the customer, customer has
accepted the goods in accordance with the sales
contract or there is an objective evidence that all
criteria for acceptance have been satisfied, and the
Company has the present right to payment, all of
which generally occurs upon shipment or delivery of
the goods or services.
In case of sale of Copper Concentrate, Copper
Reverts, Anode Slime etc., sales at the end of the
accounting period are recorded on provisional
basis as per standard parameters for want of actual
specifications and differential sales value are recorded
only on receipt of actual Assay report. This is as per
consistent practice followed by the company.
(ii) Sale of Services
Income from conversion of job work is accounted for
on the basis of actual quantity dispatched. When the
outcome of a transaction involving the rendering of
services can be estimated reliably, revenue associated
with the transaction shall be recognized by reference
to the stage of completion (Percentage of Completion
Method) of the transaction at the end of the reporting
period.
Advances received from the customers are reported
as customer's deposits unless the above conditions for
revenue recognition are met.
(iii) Other Operating Revenues
a. Sale of Scrap
Sale of Scrap is accounted for on delivery of material.
b. Interest from Customers
In case of credit sales, interest up to the date of
Balance Sheet on all outstanding bills is accounted
for on accrual basis.
c. Interest from Contractors against mobilisation
advance for mining operations
Interest up to the date of Balance Sheet on all
mobilisation advances for mining operations is
accounted for on accrual basis.
d. Penalty and Liquidated Damages
Penalty and liquidated damages are accounted for as
and when these are realised by the company as per
contract terms.
(iv) Other Income
a. Claims
Claims are recognized in the Statement of Profit
& Loss (net of any payable) including receivables
from Government towards subsidy, cash incentives,
reimbursement of losses, etc, when there is certainty
of realisation of such claim and that can be measured
reliably.
b. Dividend and Interest from Investments
Dividend income from Investments is recognised in the
Statement of Profit and Loss when the right to receive
the dividend has been established and it is certain that
the economic benefits will flow to the company and the
amount of income can be measured reliably.
Interest Income from a financial asset is recognised
using Effective Interest Method. When it is probable that
the economic benefits will flow to the Company and the
amount of income can be measured reliably.
c. Profit on Sale of Investment
Profit on sale of investment is recognised upon transfer of
title by the company and is determined as the difference
between the sales price and the then carrying value of
the investment.
d. Provisions not required
Provisions/Liabilities created from business activities in
earlier years no longer required, are accounted for as
balances no longer required and are written back.
e. Others
Any other income is recognised on accrual basis.
2.6 Employees Benefit
Retirement benefit costs and termination benefits
Defined Contribution Plan
Payments to defined contribution retirement benefit plans
are recognized as an expense when employees have
rendered service entitling them to the contributions.
Defined Benefit Plan
For defined benefit retirement benefit plans, the cost of
providing benefits is determined using the projected unit
credit method, with actuarial valuations being carried
out at the end of each annual reporting period. Re¬
measurement, comprising actuarial gains and losses, the
effect of the changes to the asset ceiling (if applicable)
and the return on plan assets (excluding interest),
is reflected immediately in the statement of financial
position with a charge or credit recognized in other
comprehensive income in the period in which they occur.
Re-measurement recognized in other comprehensive
income is reflected immediately in retained earnings and
will not be reclassified to Statement of Profit or Loss.
Past service cost is recognized in Statement of Profit or
Loss in the period of a plan amendment. Net interest is
calculated by applying the discount rate at the beginning
of the period to the net defined benefit liability or asset.
Defined benefit costs are categorized as follows:
i. Service cost (including current service cost, past
service cost, etc.);
ii. Net interest expense or income; and
iii. Re-measurement.
The company presents the first two components of
defined benefit costs in profit or loss in the line item
‘employee benefits expense’.
The retirement benefit obligation recognized in the
statement of financial position represents the actual
deficit or surplus in the company defined benefit plans.
Any surplus resulting from this calculation is limited to
the present value of any economic benefits available in
the form of refunds from the plans or reductions in future
contributions to the plans.
A liability for a termination benefit is recognized at the
earlier of when the company can no longer withdraw the
offer of the termination benefit and when the company
recognises any related restructuring costs.
The company maintains an approved gratuity fund for
eligible employees in accordance with the provisions of
the applicable laws. The Gratuity liability is determined
on the basis of actuarial valuation at the reporting date
and contributions are made accordingly. In case of
any deficiency in the Gratuity Fund Assets vis-a-vis
the accrued gratuity liability, the company is statutorily
obligated to make good such shortfall as and when
required.
Short-term and other long-term employee benefits
A liability is recognized for benefits accruing to employees
in respect of wages and salaries, annual leave and sick
leave in the period the related service is rendered at the
undiscounted amount of the benefits expected to be paid
in exchange for that service.
Liabilities recognized in respect of short-term employee
benefits are measured at the undiscounted amount of the
benefits expected to be paid in exchange for the related
service.
Liabilities recognized in respect of other long-term
employee benefits are measured at the present value
of the estimated future cash outflows expected to be
made by the company in respect of services provided by
employees up to the reporting date.
Deficit in Provident Fund
Deficit, if any, in the accounts of Provident Fund of each
Trust is accounted for as a charge to Revenue.
2.7 Borrowing Cost
Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily
takes a substantial period of time to get ready for its
intended use or sale are capitalized as part of the cost
of the asset. All other borrowing costs are expensed in
the period in which they occur. Borrowing costs consist of
interest expenses calculated using the effective interest
method and other costs that an entity incurs in connection
with the borrowing of funds. Borrowing cost also includes
exchange differences to the extent regarded as an
adjustment to the borrowing costs
2.8 Taxation
Income tax expense represents the sum of current tax
and deferred tax.
Current tax
The current tax payable is based on taxable profit for
the year as determined from net profit before tax as
represented in Statement of Profit and Loss and Other
Comprehensive Income, in line with different provisions
under Income Tax Act 1961.Current tax is calculated
using tax rates that have been enacted or substantively
enacted by the end of the reporting period.
Deferred tax
Deferred tax is recognized on temporary differences
between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax
bases used in the computation of taxable profit. Deferred
tax liabilities are generally recognized for all taxable
temporary differences. Deferred tax assets are generally
recognized for all deductible temporary differences to
the extent that it is probable that taxable profits will be
available against which those deductible temporary
differences can be utilized.
The carrying amount of deferred tax assets is reviewed
at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable
profits will be available to allow all or part of the asset to
be recovered.
Deferred tax liabilities and assets are measured at the tax
rates that are expected to apply in the period in which the
liability is settled or the asset realised, based on tax rates
(and tax laws) that have been enacted or substantively
enacted by the end of the reporting period.
Current and Deferred Tax for the year
Current and deferred tax are recognized in Statement of
Profit or Loss, except when they relate to items that are
recognized in other comprehensive income or directly
in equity, in which case, the current and deferred tax
are also recognized in other comprehensive income or
directly in equity respectively.
2.9 (a) Property Plant and Equipments (PPE)
The cost of an item of PPE is recognized as an asset if
and only if, it is probable that future economic benefits
associated with the item will flow to the company and the
cost of the item can be measured reliably. The cost of an
item of PPE is the cash price equivalent at the recognition
date. The cost of an item of PPE comprises:
i. Purchase price, including import duties and non¬
refundable purchase taxes, after deducting trade
discounts and rebates.
ii. Costs directly attributable to bringing the PPE to the
location and condition necessary for it to be capable
of operating in the manner intended by management.
iii. The initial estimate of the costs of dismantling and
removing the item and restoring the site on which it is
located, the obligation for which the company incurs
either when the PPE is acquired or as a consequence
of having used the PPE during a particular period for
purposes other than to produce inventories during
that period.
iv. The amount of expenditure incurred in connection
with the acquisition of Land and Building is capitalized
along with the stamp duty, registration charges and
other charges (applicable on date of acquisition)
incidental to and in relation to transfer. The necessary
adjustment for the difference in the stamp duty and
other charges paid and already capitalized is made in
the year of payment/ execution of title deed.
The company has chosen the cost model of recognition
and this model is applied to the entire class of PPE.
After recognition as an asset, an item of PPE is carried
at its cost less any accumulated depreciation and any
accumulated impairment losses.
Pending reconciliation/receipt of the final bills against
capital items, capitalization is done on the basis of cost
booked and depreciation is charged accordingly. Price
differences, if any, are adjusted in the year of finalization
of bills.
In respect of expenditure during construction/development
of a new unit/project in a new location, all direct capital
expenditure as well as all indirect expenditure incidentals
to construction are capitalized allocating to various items
of PPE on an appropriate basis. Expansion programme
involving construction concurrently run with normal
production activities in an existing unit, all direct capital
expenditure in relation to such expansion are capitalized
but indirect expenditure are charged to revenue.
Borrowing costs that are attributable to the acquisition
or construction of qualifying asset are capitalized as part
of the cost of such assets. A qualifying asset is one that
necessarily takes substantial period of time to get ready
for its intended use.
Expenses incurred for implementation of new projects are
carried forward against respective projects till execution.
Expenses rendered in fructuous projects abandoned
subsequently are provided for in the Statement of Profit
& Loss.
Physical verification of PPE is conducted every year
so that all the units/offices are covered once in a block
of three years interval. Shortage/(Excesses), if any,
identified on such physical verification is duly adjusted in
the books of accounts in the year of identification.
Mining Properties (Mine Development Expenditure)
In case of underground mines: The expenditure on
development of a new mine in all cases and subsequent
development of a working mine, is capitalized and
depleted on the basis of ore raised during the year and
the mineable ore reserves estimated at end of every
financial year based on actual average percentage of
ore recovered, considering level-wise production from
stopes.
In case of working mines, where development
activities are going on simultaneously: Expenses are
apportioned between capital and revenue on the basis of
in-house technical estimates. Once a level is declared as
ready for production any ore generated from that level is
considered as production ore level.
In respect of open cast mines: The expenditure on
removal of waste and overburden, is capitalized and
the same is depleted in relation to actual ore production
during the year on the stripping ratio which is re-assessed
periodically based on the estimated ore reserve as well
as the quantity of waste excavation in respect of open
cast mines. Subsequently, If any ore is reclaimed from
overburden, the same is included in inventory at a value
based on opening rate of mine development expenditure
with a corresponding credit in Mining Properties (Mine
Development Expenditure).
Expenditure incurred on development of new deposits
are capital in nature and is included in mine development
expenditure. If subsequently the development activities
are found to be not viable, the expenditure on such
development work included in Mining Properties (mine
development expenditure) is written off in the year in
which it is decided to abandon the project.
If a working mine is closed due to economic reasons,
the un-depleted value of Mine Development Expenditure
related to that mine is provided in the books of accounts
in the year in which it is decided to close or suspend
operation of the mine. If later on, the closed / suspended
mines are re-opened and the company remains the owner
of the mines, the unamortized Mining Properties (Mine
Development Expenditure) which was fully provided
in the year of closure will be written back in the books
of accounts in the year of re-opening and the company
will be depleting it year wise based on the estimated
remaining life of that mine.
De-recognition of Property, Plant and Equipment:
An item of property, plant, and equipment is derecognised
upon disposal or when no future economic benefits are
expected to arise from the use of the asset or its disposal.
Any gain or loss arising on the disposal/de-recognition is
recognised in the statement of profit and loss.
Depreciation and Amortization
The company has used the exemption available in Ind
AS 101 with respect to recognition of Plant, Property and
Equipment (PPE) and Intangible Assets at their carrying
value being deemed cost.
The depreciable amount of an item of PPE is allocated on
a straight line basis over its useful life prescribed in Part C
of Schedule II of the Companies Act,2013 or actual useful
life of assets assessed by the Technical Committee of the
company, whichever is lower. The residual value and
the useful life of an asset are reviewed, at each financial
year-end. Component of an item of PPE with a cost that
is significant in relation to the total cost of that item is
depreciated separately if its useful life differs from that of
the asset. The Company has chosen a benchmark of ^
100 lakh as material value for identification of a separate
component. Depreciation on all such items have been
provided from the date they are 'available for use' till the
date of sale and includes amortization of intangible assets
and lease hold assets. Freehold land is not depreciated.
The residual value of all such items is taken at 5% of the
original cost of individual asset.
An item of PPE is derecognized upon disposal or when
no future economic benefits are expected to arise from
the continued use of the asset. Certain consumable items
of small value whose useful life is very limited are directly
charged to revenue in the year of purchase.
From the date Ind AS came into effect, the carrying
amount of an asset is depreciated over the remaining
useful life of the asset as per estimate of remaining useful
life. Wherever, the remaining useful life of an asset is nil,
the carrying amount is recognized in the opening balance
of retained earnings after retaining the residual value.
2.9 (b) Intangible Assets
Intangible assets acquired separately are measured on
initial recognition at cost. The cost of intangible assets
acquired in a business combination is their fair value
at the date of acquisition. Following initial recognition,
intangible assets are carried at cost less any accumulated
amortisation (calculated on a straight-line basis over their
useful lives) and accumulated impairment losses, if any.
Internally generated intangibles, excluding capitalised
development costs, are not capitalised. Instead, the
related expenditure is recognised in the statement of profit
and loss and other comprehensive income in the period in
which the expenditure is incurred. An internally generated
intangible asset arising from development is recognized
if all the conditions stipulated in “Ind AS 38-Intangible
Asset” are met. The useful lives of intangible assets are
assessed as either finite or indefinite. Intangible assets
with finite lives are amortised over their useful economic
lives and assessed for impairment whenever there is
an indication that the intangible asset may be impaired.
The amortisation period and the amortisation method for
an intangible asset with a finite useful life are reviewed
at least at the end of each reporting period. Changes
in the expected useful life or the expected pattern of
consumption of future economic benefits embodied in the
asset are considered to modify the amortisation period
or method, as appropriate, and are treated as changes
in accounting estimates. The amortisation expense on
intangible assets with finite lives is recognised in the
statement of profit and loss.
An intangible asset with an indefinite useful life is not
amortised but is tested for impairment at each reporting
date and its useful life is reviewed in each reporting period
to determine whether events and circumstances continue
to support an indefinite useful life estimate.
Gains or losses arising from derecognition of an intangible
asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset
and are recognised in the statement of profit and loss.
Mining rights are treated as intangible assets and all
related costs thereof are amortised over their respective
estimated useful life on straight line basis.
Intangible Assets other than Software are amortized over
estimated useful life which is equivalent to license period,
generally not more than 5 years.
Cost of Software recognized as intangible asset, is
amortised on straight line method over a period of legal
right to use with a nil residual value. Otherwise the cost
of software will be charged in the year of incurrence.
2.10 Capital Work in Progress
Assets in the course of construction are included under
capital work -in-progress and are carried at cost, less
any recognized impairment loss. Such capital work-in¬
progress, on completion, is transferred to the appropriate
category of property, plant and equipment.
2.11 Accounting Policy for Accounting of Incidental Ore
raised during construction/ expansion/ development
of Mines
In case of Sale of Products processed out of Incidental
Ore raised during Mine construction / expansion/
development, the derived realiasable value of ore raised
is credited to Capital Work in Progress / Mining Properties
(Mine Development Expenditure) as the case may be,
with a corresponding charge to the Statement of Profit/
(Loss), under the head 'Cost of Materials Consumed' with
sub-head “Value of Ore Raised during Mine construction/
expansion/development” by the same amount. The sale
proceeds of such sale is included in aggregate Turnover
in the Statement of Profit /(Loss).
In case of Incidental Ore raised during Mine
construction /expansion/ development not processed
and is held as stock on the closing date, the cost of
ore or derived realiasable value whichever is lower, is
credited to Capital Work in Progress/Mining Properties
(Mine Development Expenditure) with corresponding
debit to cost of Inventory as the case may be. However,
Inventory under this head should not be accumulated for
a period more than six months.
2.12 Overhauling Expenses
Revenue expenditure attributable to overhaul of smelter
and/ or refinery is charged off to the Statement of Profit &
Loss in the year of incurrence.
2.13 Mine Closure Expenditure
The Company has a progressive and final Mine Closure
Plan as per IBM guidelines.
Financial Implications towards Mine Closure liability is
created on the basis of above guidelines and also on the
basis of the estimated life of the mines.
2.14 Non-Current Assets Held for Sale
The company classifies a non-current asset (or disposal
group of assets) as held for sale if its carrying amount
will be recovered principally through a sale transaction
rather than through continuing use. Immediately before
the initial classification of the asset (or disposal group) as
held for sale, the carrying amounts of the asset (or all the
assets and liabilities in the group) are to be measured in
accordance with applicable Indian Accounting Standards.
The sale should be expected to qualify for recognition
as a completed sale within one year from the date of
classification except as permitted by Ind AS 105.
2.15 Inventories
Stocks of stores and spare parts, loose tools and
materials-in-transit are valued at the lower of the net
realizable value and cost. The raw materials are also
valued at the lower of the net realizable value and
weighted average cost to the unit if the finished goods in
which they will be incorporated are expected to be sold
below cost. Loose tools when issued are charged off to
revenue.
Finished goods and work-in-process are valued at the
lower of the net realizable value and weighted average
cost to the unit. The cost is exclusive of financing cost,
such as, interest, bank charges, administration overhead,
etc. Ore is valued at cost since its realisable value cannot
be ascertained.
The value of slag under work-in-process is taken at
equivalent value to the extent credited to the process,
where the said products have been generated. The
reverts under work- in-process are valued at lower of
cost (equivalent value of concentrate) and net realizable
value.
The stock of anode slime arising from treatment and
refining processes are stated at realizable value based
on the year end London Metal Exchange price for gold
and silver after making due adjustments of their physical
recovery and the treatment and refining charges.
The inventories out of inter-unit transfers (material in
transit) at the close of the year are valued and accounted
in the books of the transferor unit on the basis of cost-
plus transportation to the transferee unit or net realisable
value whichever is lower.
Imported materials are valued at the lower of the net
realizable value and weighted average cost. In the event
where final price is not determined valuation is made on
provisional cost. Variations are accounted for in the year
of finalization.
Provision is made in the accounts every year, for non¬
moving stores and spares (other than insurance spares)
which have not moved for more than five years. Insurance
spares are fully provided for on the expiry of the life of the
relevant Property Plant and Equipments.
Physical verification of Semi-Finished and In-Process
(WIP) and Finished Goods is conducted departmentally
in all the units at reasonable intervals during the year
by a duly approved committee. Also, physical stock
verification of WIP and Finished Goods is undertaken by
a duly approved committee at the end of every financial
year alongwith an independent agency once in a block
of three years. In respect of Stores and Spares, physical
verification is carried out by external agencies once in
every year covering all the units. Shortage/(Excesses), if
any, identified on such physical verification is duly adjusted
in the books of accounts in the year of identification
2.16 Government Grants
All government grants are recognized as deferred income
and it will be taken to Statement of Profit and Loss over
the period of time in accordance with the pattern in which
the obligations are met.
2.17 Impairment of Assets (other than Financial Assets)
The Company assesses at the end of each reporting
period whether there is any indication that an asset may
be impaired. If any such indication exists, the Company
estimates the recoverable amount of the asset. If the
recoverable amount of an asset (or cash-generating
unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is
reduced to its recoverable amount. An impairment loss
is recognized immediately in Statement of Profit and
Loss, unless the relevant asset is carried at a revalue
amount, in which case the impairment loss is treated as a
revaluation decrease.
Recoverable amount is the higher of fair value less costs
of disposal and value in use. 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 the risks specific to the asset for which the estimates
of future cash flows have not been adjusted.
When an impairment loss subsequently reverses, the
carrying amount of the asset (or a cash-generating unit)
is increased to the revised estimate of its recoverable
amount, but so that the increased carrying amount does
not exceed the carrying amount that would have been
determined had no impairment loss been recognized
for the asset (or cash-generating unit) in prior years. A
reversal of an impairment loss is recognized immediately
in profit or loss, unless the relevant asset is carried at
a revalued amount, in which case the reversal of the
impairment loss is treated as a revaluation increase.
2.18 Foreign Exchange Transactions
Transactions in currencies other than the company's
functional currency (foreign currencies) are recognized
at the rates of exchange prevailing at the dates of the
transactions.
At the end of each reporting period, monetary items
denominated in foreign currencies are retranslated at the
rates prevailing at that date. Non-monetary items carried
at fair value that are denominated in foreign currencies
are re-translated at the rates prevailing at the date when
the fair value was determined. Non-monetary items that
are measured in terms of historical cost in a foreign
currency are not retranslated.
Foreign currency monetary items (except overdue
recoverable where realizability is uncertain) are converted
using the closing rate as defined in the Ind AS-21- The
effects of changes in Foreign Exchange Rates. Non¬
monetary items are reported using the exchange rate at
the date of the transaction. The exchange difference gain/
loss is recognized in the Statement of Profit and Loss.
In case of long term foreign currency monetary items
outstanding as of 31st March 2016, liability in foreign
currency loans relating to acquisition of fixed assets is
converted using the closing rate as defined in Ind AS
21-The effects of changes in Foreign Exchange Rates
and the difference in exchange is recognized in terms of
exemptions given in paragraph D13AA of Appendix D to
Ind AS-101, where the effect of exchange differences on
foreign currency loans of the company is accounted for
by addition or deduction to the cost of the assets so far
it relates to the depreciable capital assets and shall be
depreciated over the balance life of the assets.
Other long term foreign currency monetary items are
accumulated in 'Equity Component of Foreign Currency
asset/liability Account' and amortized over the balance
period of the asset/liability by recognition as income or
expense in each of such periods as stated under Para
29A of Ind As 21.
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