1. Corporate Information
Nagpur Power And Industries Limited ('NPIL' or 'The Company') is a limited Company
incorporated and domiciled in India. The Company is a public limited company and its equity shares
are listed with Bombay Stock Exchange ("BSE") in India. The registered office of the Company is
situated at 20th Floor, Nirmal Building, Nariman Point, Mumbai- 400021.
2. Statement of Compliance
These standalone financial statements are prepared and presented in accordance with the Indian
Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standard) Rules,
2015 as amended by the Companies (Indian Accounting Standard) Rules, 2017 notified under section
133 of the Companies Act, 2013, the relevant provisions of the Companies Act, 2013 and the
guidelines issued by the Securities and Exchange Board of India (SEBI), as applicable.
3. Basis of Preparation
The standalone financial statements of the Company have been prepared and presented on the going
concern basis and at historical cost except for the following assets and liabilities which have been
measure at fair value.
• Certain financial assets and liabilities at fair value (refer accounting policy regarding financial
instruments)
• Employee's Defined Benefit Plan as per actuarial valuation
4. Functional and Presentation Currency
The standalone financial statements are presented in Indian Rupees, which is the functional currency
of the Company and the currency of the primary economic environment in which the Company
operates.
5. Use of Estimates
The preparation of standalone financial statements in conformity with the Indian Accounting
Standards requires judgments, estimates and assumptions to be made that affect the reported amount
of assets and liabilities, disclosures of contingent liabilities on the date of the standalone financial
statements and the reported amount of revenues and expenses during the reporting period.
Difference between the actual results and estimates are recognized in the period in which the results
are known/ materialized.
6. Classification of Assets and Liabilities as Current and Non-Current
All assets and liabilities are classified as current and non-current as per the Company's normal
operating cycle, and other criteria set out in Schedule III of the Companies Act, 2013. Based on the
nature of products and the time lag between the acquisition of assets for processing and their
realization in cash and cash equivalents, 12 months period has been considered by the Company as
its normal operating cycle.
7. Overall Consideration
The standalone financial statements have been prepared applying the significant accounting policies
and measurement bases summarized below.
8. Revenue Recognition
Sale of goods
The Company recognizes revenue from sale of goods measured at the fair value of the consideration
received or receivable, upon satisfaction of performance obligation which is at a point in time when
control of the goods is transferred to the customer, generally on delivery of the goods. Depending on
the terms of the contract, which differs from contract to contract, the goods are sold on a reasonable
credit term.
Sale of services
Sale of services are recognized on satisfaction of performance obligation towards rendering of such
services.
Dividend and interest income
Dividend from investments are recognized in profit or loss when the right to receive payment is
established.
Interest income from a financial asset is recognized when it is probable that the economic benefits
will flow to the Company and the amount of income can be measured reliably.
9. Property Plant and Equipment
Property, plant and equipment are stated at acquisition or construction cost less accumulated
depreciation and impairment loss. Cost comprises the purchase price and any attributable cost of
bringing the assets to its location and working condition for its intended use, including relevant
borrowing costs and any expected costs of decommissioning.
If significant parts of an item of PPE have different useful lives, then they are accounted for as
separate items (major components) of PPE.
The cost of an item of PPE is recognized as an assets if, and only if, it is probable that the economic
benefits associated with the item will flow the Company in future periods and the item can be
measured reliably. However, cost of excludes indirect taxes to the extent credit of the duty or tax is
availed as set off.
Items such as a spare parts, standby equipment and servicing equipment are recognized as PPE when
it is held for use in production or supply of goods or services, or for administrative purpose, and are
expected to be used for more than one year. Otherwise such items are classified as inventory.
An item of PPE is de-recognized upon disposal or when no future economic benefits are expected to
arise from the continued use of assets. Any gain or loss arising on the disposal or retirement of an
item of PPE, is determined as the difference between the sales proceeds and the carrying amount of
the assets and is recognized in the Statement of Profit and Loss.
Capital Advance given towards acquisition or construction of PPE outstanding at each reporting date
are disclosed as Capital Advances under Other Non-current Assets.
Expenditure incurred after the PPE have been put into operations, such as repairs and maintenance
expenses are charged to the Statement of Profit and Loss during the period in which they are
incurred.
10. Depreciation and Amortization
Depreciation is recognized on a straight-line basis, based on the useful life of the assets as prescribed
under Schedule II of the Companies Act, 2013, except in respect of certain category of assets, where
useful life is exceeding those prescribed in Schedule II based on the Chartered Engineer's Valuation
Certificate namely:
Assets where useful life differs from Schedule II:
Depreciation on assets purchased / sold during the period is proportionately charged. The residual
value for all the above assets are retained at 5% of the cost. Residual values and useful lives are
reviewed and adjusted, if appropriate, for each reporting period.
11. Intangible Assets
Intangible assets are stated at cost of acquisition, less accumulated amortization/depletion and
accumulated impairment losses, if any, are amortized over a period of 3 years.
Expenditure incurred on development is capitalized if such expenditure leads to creation of any
intangible assets, otherwise, such expenditure is charged to the Statement of Profit and Loss.
12. Impairment of Assets
At end of each reporting period, the Company reviews the carrying amounts of non-financial assets
to determine whether there is any indication that those assets have suffered an impairment loss. If
any such indication exists, the recoverable amount of the assets is estimated to be less than its
carrying amount, the carrying amount of the assets is reduced to its recoverable amount. An
impairment loss is recognized in the Statement of Profit and Loss.
13. Inventories
Inventories of raw materials are stated at lower of cost or net realizable value. Work in process is
stated at cost. Stores, spares & tools are stated at cost except the obsolete/non usable stores, which
are written off for obsolescence. Finished goods and by-products/waste products where cost is
ascertainable are stated at lower of cost or net realisable value and by-products / waste products
where cost cannot be determined are stated at net realisable value. The reusable waste, which is not
ascertainable, is not accounted.
14. Cash and Cash equivalents and Cash Flow Statement
Cash and cash equivalents comprise cash on hand and demand deposits, together with other short¬
term, highly liquid investments maturing within three months from the date of acquisition and which
are readily convertible into cash and which are subject to only an insignificant risk of changes in
value.
Cash flows are reported using the indirect method, whereby Profit or Loss before tax is appropriately
classified for the effects of transactions of non-cash nature and any deferrals or accruals of past or
future receipts or payments. In the cash flow statement, cash and cash equivalents include cash in
hand, cheques on hand, balances with banks in current accounts and other short- term highly liquid
investments with original maturities of three months or less.
15. Segment reporting
The Company is principally engaged in extraction of 'High / Medium / Low Carbon Ferro
Manganese and Silico Manganese Slag' which is the only Operating reportable segment as per IND
AS 108.
16. Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying
asset are capitalized during the period of time that is necessary to complete and prepare the asset for
its intended use or sale. Other borrowing costs are expensed in the period in which they are incurred
under finance costs.
17. Foreign Exchange Transactions
Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the
date of the transaction.
At end of each reporting period, monetary assets and liabilities denominated in foreign currencies are
translated at the exchange rates prevailing on that date. Non-monetary items that are measured in
terms of historical cost in a foreign currency, are not retranslated.
Exchange difference on monetary items are recognised in the Statement of Profit and Loss in the
period in which these arise.
18. Income Taxes
Tax expense recognized in the Statement of Profit and Loss comprises the sum of deferred tax and
current tax not recognized in other comprehensive income or directly in equity.
Calculation of current tax is based on tax rates in accordance with tax laws that have been enacted or
substantively enacted by the end of the reporting period.
Deferred income taxes are calculated using the Balance Sheet approach on temporary differences
between the carrying amounts of assets and liabilities in standalone financial statements and the
amount used for taxation purposes.
Deferred taxes pertaining to items recognized in other comprehensive income (OCI) are disclosed
under OCI.
Deferred tax assets are recognized to the extent that it is probable that the underlying tax loss or
deductible temporary difference will be utilized against future tax liability. This is assessed based on
the Company's forecast of future earnings, excluding non-taxable income and expenses and specific
limits on the use of any unused tax loss or credit.
Deferred tax liabilities are generally recognized in full, although Ind AS 12 'Income Taxes' specifies
some exemptions.
Minimum Alternate Tax (MAT) Credit are in the form of unused tax credits that are carried forward
by the Company for specified period of time, hence, it is presented as Deferred Tax Assets.
As a result of these exemptions the Company does not recognize deferred tax liability on temporary
differences relating to goodwill, or to its investments in subsidiaries.
19. Employee Benefits
Short-term obligations:
Short term obligations are those that are expected to be settled fully within 12 months after the end of
the reporting period. They are recognised up to the end of the reporting period at the amounts
expected to be paid at the time of settlement.
Other Long-term obligations:
The liabilities for earned leave are not expected to be settled wholly within 12 months after end of the
period in which the employees render the related service.
Long-term compensated absences are provided for on the basis of an actuarial valuation at the end of
each financial year. Actuarial gains / losses, if any, are recognised immediately in Statement of Profit
and Loss.
Defined Contribution Plans:
Contribution payable to recognised provident funds, which are substantially defined contribution
plans, is recognised as expense in the Statement of Profit and Loss, as they are incurred.
Defined Benefit Plan:
The obligation in respect of defined benefit plan, which covers Gratuity, is provided for on the basis
of an actuarial valuation at the end of each financial year. Gratuity is funded with an approved trust.
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 net interest), is reflected immediately in the
Balance Sheet with a charge or credit recognised in other comprehensive income in the period in
which they occur.
Re-measurement recognised in other comprehensive income is reflected immediately in OCI Reserve
and will not be reclassified to Statement of Profit and Loss.
The Company recognised a liability and an expense for bonus. The Company recognised a provision
where contractually obliged or where there is a past practice that has created a constructive
obligation.
20. Lease:
The Company, at the inception of a contract, assesses whether the contract is a lease or not lease. A
contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset
for a time in exchange for a consideration. This policy has been applied to contracts existing and
entered into on or after April 1, 2019 as per Ind As 116.
The Company recognises a right-of-use asset and a lease liability at the lease commencement date.
The right-of use asset is initially measured at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or before the commencement date, plus any initial
direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to
restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the
commencement date to the end of the lease term.
The lease liability is initially measured at the present value of the lease payments that are not paid at
the commencement date, discounted using the Company's incremental borrowing rate. It is
remeasured when there is a change in future lease payments arising from a change in an index or
rate, if there is a change in the Company's estimate of the amount expected to be payable under a
residual value guarantee, or if the Company changes its assessment of whether it will exercise a
purchase, extension or termination option. When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in
profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases
that have a lease term of 12 months or less and leases of low-value assets. The Company recognises
the lease payments associated with these leases as an expense over the lease term.
In the comparative period, leases under which the Company assumes substantially all the risks and
rewards of ownership are classified as finance leases. When acquired, such assets are capitalized at
fair value or present value of the minimum lease payments at the inception of the lease, whichever is
lower. Lease payments and receipts under operating leases are recognised as an expense and income
respectively, on a straight-line basis in the statement of profit and loss over the lease term except
where the lease payments are structured to increase in line with expected general inflation.
21. Trade receivable
Trade receivables are amounts due from customers for goods sold or services performed in the
ordinary course of business. If the receivable is expected to be collected within a period of 12 months
or less from the reporting date (or in the normal operating cycle of the business, if longer), they are
classified as current assets otherwise as non-current assets.
Trade receivables are measured at their transaction price unless it contains a significant financing
component or pricing adjustments embedded in the contract.
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