j MATERIAL ACCOUNTING POLICIES
a) Statement of Compliance and Basis of preparation
These Standalone Financial Statements have been
prepared in accordance with Indian Accounting
Standards (Ind AS) as per the Companies (Indian
Accounting Standards) Rules, 2015 and presentation
requirements of Division II of Schedule III notified
under Section 133 of the Companies Act, 2013 (the
Act), as amended from time to time and other relevant
provisions of the Act.
The Standalone Financial Statements have been
prepared on an accrual and going concern basis
using the historical cost except for certain financial
instruments and defined benefit plans which are
measured at fair value or amortised cost.
The accounting policies are applied consistently to
all the periods presented in the Standalone Financial
Statements.
Items included in the Standalone Financial Statements
of the entity are measured using the currency of the
primary economic environment in which the entity
operates ('the functional currency'). The standalone
financial statements are presented in Indian rupee
(INR), which is Company's functional and presentation
currency.
The Standalone Financial Statements were authorised
for issue by the Board of Directors of the Company at
their meeting held on May 1,2025.
b) Property, plant and equipment (PPE)
Property, plant and equipment are stated at cost
comprising of purchase price and any initial directly
attributable cost of bringing the asset to its working
condition for its intended use, less accumulated
depreciation and impairment loss, if any.
Subsequent costs 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.
An item of spare parts that meets the definition of'PPE'
is recognised as "PPE" as on the date of acquisition.
When significant parts of PPE are required to be
replaced at regular intervals, the Company recognises
such parts as separate component of assets. When
an item of PPE is replaced, then its carrying amount
is derecognised with consequent impact in the
Statement of Profit and Loss.
When a major repair 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.
Capital work in progress ('CWIP') is stated at cost,
net of accumulated impairment losses, if any. All
the direct expenditure related to implementation
including interest and incidental expenditure incurred
during the period of implementation of a project, till
it is commissioned, is accounted as CWIP and after
commissioning the same is transferred / allocated to
the respective item of property, plant and equipment.
Pre-operating costs, being indirect in nature, are
expensed to the Statement of Profit and Loss as and
when incurred.
The present value of the expected cost for the
decommissioning of an asset is included in the cost
of the respective asset if the recognition criteria for a
provision are met.
Property, plant and equipment are eliminated from
the Standalone Financial Statements, either on
disposal or when retired from active use. Gains or
Losses arising in the case of retirement of property,
plant and equipment are recognised in the Statement
of Profit and Loss in the period of occurrence.
The Company has a policy of capitalising overburden
cost, if the overburden removal exceeds normal
annual overburden removal by more than 50% and
the total amount of stripping cost related to excess
removal is more than ' 0.50 crores.
Depreciation methods, estimated useful lives and
residual value
Depreciation (other than on mining land & quarry
development) is calculated on a straight-line basis
to allocate the cost of assets, net of their residual
values, over their estimated useful lives. Components
having value significant to the total cost of the asset
and having life different from that of the main asset
are depreciated over its useful life. The useful lives
have been assessed based on technical advice, taking
into account the nature of the PPE and the estimated
usage of the asset on the basis of management's best
estimation of obtaining economic benefits from those
classes of assets. The useful lives so determined are as
follows:
Depreciation on items of property, plant and
equipment acquired / disposed off during the year is
provided on pro-rata basis with reference to the date
of addition / disposal.
The management believes that the estimated useful
lives are realistic and reflect fair approximation of the
period over which the assets are likely to be used.
Residual values, useful life and methods of
depreciation / amortisation of property, pla nt and
equipment are reviewed periodically, with the effect
of any changes in estimate being accounted for on a
prospective basis.
c) Intangible Assets
Intangible assets are recognised when it is probable
that the future economic benefits that are attributable
to the assets will flow to the Company and the cost of
the asset can be measured reliably.
Intangible assets acquired separately are measured
at cost on initial recognition. 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 and accumulated
impairment losses, if any.
Internally generated intangibles, excluding
development costs, are not capitalised and the
related expenditure is reflected in the Statement of
Profit and Loss in the period in which the expenditure
is incurred.
Amortisation methods, estimated useful lives and
residual value
Intangible assets are amortised on a straight-line basis
over their estimated useful lives based on underlying
contracts where applicable, except for mining rights.
The useful lives of intangible assets are assessed
as either finite or indefinite. The useful lives so
determined are as follows:
Intangible assets with indefinite useful lives are not
amortised, but are tested for impairment annually,
either individually or at the cash-generating unit level.
Useful life and methods of amortisation of Intangible
assets are reviewed periodically, with the effect of
any changes in estimate being accounted for on a
prospective basis.
d) Impairment of non-financial assets
The Company assesses, at each reporting date,
whether there is an indication that non- financial
assets may be impaired. If any indication exists,
or when annual impairment testing for an asset
is required, the Company estimates the asset's
recoverable amount. An asset's recoverable amount is
the higher of an asset's or cash-generating unit's (CGU)
fair value less costs of disposal and its 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 or groups of assets. When the carrying amount
of an asset or CGU exceeds its recoverable amount,
the asset is considered impaired and is written down
to its recoverable amount.
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. 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.
Impairment losses are recognised in the Statement of
Profit and Loss.
Goodwill and intangible assets with indefinite
useful life are tested for impairment annually and
when circumstances indicate that the carrying value
may be impaired. Impairment is determined for
goodwill and intangible assets with indefinite useful
lives by assessing the recoverable amount of each
CGU (or group of CGUs) to which it relates. When
the recoverable amount of the CGU is less than its
carrying amount, an impairment loss is recognised.
Impairment losses relating to goodwill and intangible
assets with indefinite useful lives cannot be reversed
in future periods.
e) Leases:
The Company evaluates each contract or arrangement,
whether it qualifies as lease as defined under Ind AS
116.
The Company as a lessee:
The Company assesses whether the contract is, or
contains, a lease at the inception of the contract or
upon the modification of a contract. A contract is, or
contains, a lease if the contract conveys the right to
control the use of an identified asset for a period of
time in exchange for consideration.
The Company at the commencement of the lease
contract recognises a Right of Use (RoU) assets at cost
and corresponding lease liability, except for leases
with a term of twelve months or less (short-term
leases) and leases for which the underlying asset is of
low value (low-value leases). For these short-term and
low-value leases, the Company recognises the lease
payments as an operating expense on a straight-line
basis over the term of the lease.
The cost of the right-of-use assets comprises the
amount of the initial measurement of the lease
liability, adjusted for any lease payments made at or
prior to the commencement date of the lease, any
initial direct costs incurred by the Company, any lease
incentives received and expected costs for obligations
to dismantle and remove right-of-use assets when
they are no longer used.
Subsequently, the right-of-use assets is measured
at cost less any accumulated depreciation and
accumulated impairment losses, if any. The right-of-
use assets are depreciated on a straight-line basis
from the commencement date of the lease over the
shorter of the end of the lease term or useful life of the
right-of-use asset.
Right-of-use assets are assessed for impairment
whenever there is an indication that the balance sheet
carrying amount may not be recoverable using cash
flow projections for the useful life.
For lease liabilities at commencement date, the
Company measures the lease liability at the present
value of the future lease payments as from the
commencement date of the lease to end of the lease
term. The lease payments are discounted using the
interest rate implicit in the lease or, if not readily
determinable, the Company's incremental borrowing
rate for the asset subject to the lease in the respective
markets.
Subsequently, the Company measures the lease
liability by adjusting carrying amount to reflect
interest on the lease liability and lease payments
made.
The Company remeasures the lease liability (and
makes a corresponding adjustment to the related
right-of-use asset) whenever there is a change to the
lease terms or expected payments under the lease, or
a modification that is not accounted for as a separate
lease.
The portion of the lease payments attributable to the
repayment of lease liabilities is recognised in cash
flows used in financing activities. Also, the portion
attributable to the payment of interest is included in
cash flows from financing activities. Further, short¬
term lease payments and payments for leases for
which the underlying asset is of low-value and variable
lease payments not included in the measurement of
the lease liability is also included in cash flows from
operating activities.
f) Financial instruments
A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability
or equity instrument of another entity. Financial
assets and financial liabilities are recognised when
a Company becomes a party to the contractual
provisions of the instrument.
A. Financial assets
Initial recognition and measurement
All financial assets are recognised initially at
fair value plus, in the case of financial assets
not recorded at fair value through profit and
loss, transaction costs that are attributable to
the acquisition of the financial asset. However,
trade receivables that do not contain a
significant financing component are measured
at transaction price.
Subsequent measurement
For purposes of subsequent measurement,
financial assets are classified in two broad
categories:
1. Financial assets at amortised cost
2. Financial assets at fair value
Where assets are measured at fair value,
gains and losses are either recognised in the
Statement of Profit and Loss (i.e. fair value
through profit and loss) (FVTPL), or recognised
in other comprehensive income (i.e. fair value
through other comprehensive income) (FVTOCI)
Financial asset at amortised cost
A financial asset is measured at amortised cost, if
following two conditions are met:
1. The asset is held within a business model
whose objective is to hold assets for
collecting contractual cash flows, and
2. The 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.
After initial measurement, such financial assets
are subsequently measured at amortised cost
using the effective interest rate (EIR) method.
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.
The EIR amortisation is included in finance
income in the profit or loss. The losses arising
from impairment are recognised in the profit or
loss.
Financial assets at fair value
Equity investments
All equity investments in scope of Ind AS 109
are measured at fair value. Equity instruments
which are held for trading and contingent
consideration, recognised by an acquirer in
a business combination to which Ind AS 103
applies are classified as at fair value through
profit or loss. For all other equity instruments,
the Company may make an irrevocable election
to present in other comprehensive income
subsequent changes in the fair value. The
Company makes such election on an instrument
by instrument basis. The classification is made
on initial recognition and is irrevocable.
If the Company decides to classify an equity
instrument as at fair value through other
comprehensive income, then all fair value
changes on the instrument, excluding dividends,
are recognised in the OCI. There is no recycling
of the amounts from OCI to Profit and loss, even
on sale of investment. However, the Company
may transfer the cumulative gain or loss within
equity.
Equity instruments included within the fair value
through profit or loss category are measured at
fair value with all changes recognised in the
Statement of Profit and Loss.
Derecognition
A financial asset (or, where applicable, a part
of a financial asset or part of a group of similar
financial assets) is primarily derecognised (i.e.
removed from the Company's statement of
financial position) when:
1. The rights to receive cash flows from the
asset have expired, or
2. The Company has transferred its 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.
When the Company has transferred its rights to
receive cash flows from an asset or has entered
into a pass-through arrangement, it evaluates
if and to what extent it has retained the risks
and rewards of ownership. When it has neither
transferred nor retained substantially all of the
risks and rewards of the asset, nor transferred
control of the asset, the Company continues to
recognise the transferred asset to the extent of
the Company's continuing involvement. In that
case, the Company also recognises an associated
liability. The transferred asset and the associated
liability are measured on a basis that reflects the
rights and obligations that the Company has
retained.
Impairment of financial assets
The Company assesses impairment based
on expected credit loss (ECL) model to the
following:
1. Financial assets measured at amortised
cost;
2. Debt Financial instruments measured at
fair value through other comprehensive
income (FVTOCI);
Expected credit losses are measured through a
loss allowance at an amount equal to:
1. The 12-months expected credit losses
(expected credit losses that result from
those default events on the financial
instrument that are possible within 12
months after the reporting date); or
2. Full lifetime expected credit losses
(expected credit losses that result from all
possible default events over the life of the
financial instrument).
The Company follows 'simplified approach' for
recognition of impairment loss allowance on
trade receivables.
Under the simplified approach, the Company
does not track changes in credit risk. Rather, it
recognises impairment loss allowance based on
lifetime ECLs at each reporting date, right from
its initial recognition.
The Company uses a provision matrix to
determine impairment loss allowance on the
portfolio of trade receivables. The provision
matrix is based on its historically observed
default rates over the expected life of the trade
receivable and is adjusted for forward looking
estimates. At every reporting date, the historical
observed default rates are updated and changes
in the forward-looking estimates are analysed.
For recognition of impairment loss on
other financial assets and risk exposure, the
Company determines whether there has been
a significant increase in the credit risk since
initial recognition. If credit risk has not increased
significantly, 12-month ECL is used to provide
for impairment loss. However, if credit risk has
increased significantly, lifetime ECL is used. If,
in a subsequent period, credit quality of the
instrument improves such that there is no
longer a significant increase in credit risk since
initial recognition, then the entity reverts to
recognising impairment loss allowance based
on 12-month ECL.
B. Financial liabilities
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.
All financial liabilities are recognised initially
at fair value and, in the case of trade and other
payables, loans and borrowings 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.
Subsequent measurement
The measurement of financial liabilities depends
on their classification, as described below:
1. Financial liabilities at fair value through
profit or loss
2. Loans and borrowings measured at
amortised cost
Financial liabilities at fair value through profit or
loss
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.
Gains or Losses, including any interest expense
on liabilities held for trading are recognised in
the Statement of Profit and Loss.
Loans and borrowings measured at amortised cost
After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and
losses are recognised in profit or loss when the
liabilities are derecognised as well as through
the EIR amortisation process.
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. The EIR amortisation is included as finance
costs in the statement of profit and loss.
Derecognition
A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. 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.
g) Investment in subsidiaries and joint venture
The Company accounts for investment in subsidiaries
and Joint venture at Cost in its Standalone Financial
Statements.
h) Inventories
Inventories are valued at the lower of cost and Net
Realisable Value (NRV).
Raw materials: cost includes cost of purchase and
other costs incurred in bringing the inventories to their
present location and condition. However, these items
are considered to be realisable at cost, if the finished
products, in which they will be used, are expected
to be sold at or above cost. Cost is determined on
weighted average basis.
Finished goods and work in progress: cost includes
cost of direct materials and labour and a proportion
of manufacturing overheads based on the actual level
of production which approximates normal operating
capacity, but excluding borrowing costs.
Stores, spares and other supplies: cost includes cost
of purchase and other costs incurred in bringing the
inventories to their present location and condition.
Cost is determined on weighted average basis. An item
of stores and spares that does not meet the definition
of 'property, plant and equipment' is recognised as a
part of inventories.
Traded goods: cost includes cost of purchase and
other costs incurred in bringing the inventories to their
present location and condition. Cost is determined on
weighted average basis.
Net Realisable Value is the estimated selling price in
the ordinary course of business, less estimated costs
of completion and the estimated costs necessary to
make the sale.
i) Cash and cash equivalents
Cash and cash equivalents in the balance sheet
comprises of cash at banks and on hand and short¬
term deposits with an original maturity of three
months or less, which are subject to an insignificant
risk of changes in value.
j) Revenue Recognition
Revenue from contract with customers:
Revenue from the sale of the goods is recognised
when dispatch delivery has taken place and control
of the goods has been transferred to the customer
according to the specific delivery term that have
been agreed with the customer and when there
are no longer any unfulfilled obligations. Revenue
towards satisfaction of a performance obligation is
measured at the amount of transaction price (net of
variable consideration) allocated to that performance
obligation. The transaction price of goods sold and
services rendered is net of variable consideration on
account of various discounts and schemes offered
by the Company as part of the contract. Revenue is
recognised net of returns and allowances, related
discounts, incentives and volume rebates.
Returns, allowances, incentives, volume rebates,
discounts etc. are estimated at contract inception
considering the terms of various schemes with
customers using expected value method and revenue
is only recognised to the extent that it is highly
probable that significant reversal will not occur.
No element of financing is deemed present as the
sales are made with credit terms largely ranging
between 30 days and 60 days depending on the
specific terms agreed with customers.
An entity collects Goods and Services Tax ("GST") on
behalf of the government and not on its own account
and therefore it is excluded from revenue.
Income from services rendered is recognised based
on agreements / arrangements with the customers as
the services is performed and there are no unfulfilled
obligations.
Interest income
Interest income from a financial asset is recognised
when it is probable that the economic benefits will
flow to the Company and the amount of income can
be measured reliably. Interest income is accrued on a
time basis, by reference to the principal outstanding
and at the effective interest rate applicable, which is
the rate that exactly discounts estimated future cash
receipts through the expected life of the financial
asset to that asset's net carrying amount on initial
recognition.
k) Government grants
Government grants are recognised where there is
reasonable assurance that the grant will be received,
and all the conditions attached will be complied with.
Government grants relating to income under State
Investment Promotion schemes linked with GST
payment are recognised as income in the statement
of profit or loss over the period to which it relates
and presented as other operating income. Where the
grant relates to an asset, it is presented in the balance
sheet by setting up the grant as deferred income and
recognised in the Statement of Profit and Loss on a
systematic basis over the useful life of the related
asset and presented as other operating income.
Government grants receivable are disclosed under
financial assets.
l) Borrowing costs
Borrowing costs that are attributable to the
acquisition, construction or production of a qualifying
asset are capitalised as part of the cost of the asset
till such time the asset is ready for its intended use
or sale. A qualifying asset is an asset that necessarily
requires a substantial period of time (generally over
twelve months) to get ready for its intended use or
sale.
Investment income earned on the temporary
investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the
borrowing costs eligible for capitalisation. All other
borrowing costs are expensed in the period in which
they are incurred.
Borrowing costs consist of interest and other costs that
a Company incurs in connection with the borrowing
of funds.
m) Income tax
The Income tax expense or credit for the period is the
tax payable on the current period's taxable income
based on the applicable income tax rate for each
jurisdiction adjusted by changes in deferred tax assets
and liabilities attributable to temporary differences.
Current income tax assets and liabilities are measured
at the amount expected to be recovered from or
paid to the taxation authorities, based on the rates
and tax laws enacted or substantively enacted, at
the reporting date in the country where the entity
operates and generates taxable income.
Current income tax relating to items recognised
directly in equity is recognised in equity and not in the
statement of profit and loss.
Management periodically evaluates positions taken
in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation
and establishes provisions where appropriate.
Deferred Tax
Deferred tax is provided using the balance sheet
approach on temporary differences at the reporting
date between the tax bases of assets and liabilities
and their corresponding carrying amounts for the
financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable
temporary differences, except:
a. When the deferred tax liability arises from the
initial recognition of goodwill or an asset or
liability in a transaction that is not a business
combination and, at the time of the transaction,
affects neither the accounting profit nor taxable
profit or loss
b. In respect of taxable temporary differences
associated with investments in subsidiaries,
associates and interests in joint arrangements,
when the timing of the reversal of the temporary
differences can be controlled and it is probable
that the temporary differences will not reverse in
the foreseeable future.
Deferred tax assets are recognised for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax
assets are recognised to the extent that it is probable
that taxable profit will be available against which
the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses
can be utilised, except:
a. When the deferred tax asset relating to the
deductible temporary difference arises from
the initial recognition of an asset or liability in a
transaction that is not a business combination
and, at the time of the transaction, affects
neither the accounting profit nor taxable profit
or loss
b. In respect of deductible temporary differences
associated with investments in subsidiaries,
associates and interests in joint arrangements,
deferred tax assets are recognised only to the
extent that it is probable that the temporary
differences will reverse in the foreseeable future
and taxable profit will be available against which
the temporary differences can be utilised
The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit
will be available to allow all or part of the deferred tax
asset to be utilised.
Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based
on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
Deferred tax items are recognised in correlation to the
underlying transaction either in other comprehensive
income or directly in equity.
Minimum alternate tax (MAT) paid in a period is
charged to the Statement of Profit and Loss as current
tax. The Company recognises MAT credit available as
an asset only to the extent that there is convincing
evidence that the Company will pay normal income
tax during the specified period, i.e., the period for
which MAT credit is allowed to be carried forward. The
Company reviews the "MAT credit entitlement" asset
at each reporting date and writes down the asset to
the extent the Company does not have convincing
evidence that it will pay normal income tax during the
specified period.
The Government of India, on September 20, 2019,
vide the Taxation Laws (Amendment) Ordinance 2019,
inserted a new Section 115BAA in the Income Tax
Act, 1961, which provides an option to the Company
for paying Income Tax at reduced rates as per the
provisions / conditions defined in the said section. The
Company is continuing with a higher income tax rate
option, based on the available outstanding MAT credit
entitlement and different exemptions and deductions
enjoyed by the Company. However, the Company has
estimated and applied the lower income tax rate on
the deferred tax assets / liabilities to the extent these
are expected to be realised or settled in the future
period when the Company may be subjected to lower
tax rate.
n) Employee benefits
All employee benefits payable wholly within
twelve months of rendering services are classified
as short term employee benefits. Benefits such as
salaries, wages, short-term compensated absences,
performance incentives etc., and the expected cost of
bonus, ex-gratia are recognised during the period in
which the employee renders related service.
Liability in respect of compensated absences
becoming due or expected to be availed more than
one year after the balance sheet date is estimated on
the basis of an actuarial valuation performed by an
independent actuary using the projected unit credit
method. The Company presents the entire leave as a
current liability in the balance sheet since it does not
have an unconditional right to defer its settlement for
12 months after the reporting date.
Retirement benefit in the form of provident fund,
Superannuation Fund, Employees State Insurance
Corporation and Labour Welfare Fund are a defined
contribution plan. The Company has no obligation,
other than the contribution payable under these
plans. The Company recognises contribution payable
under respective plan as an expense, when an
employee renders the related service.
The Company operates a defined benefit gratuity plan
in India, which requires contributions to be made to a
separately administered fund (funded). The Company
also has additional death benefit scheme for specific
set of employees which is unfunded.
The cost of providing benefits under the defined
benefit plan is determined using the projected
unit credit method by an independent actuary. The
Company recognises the following changes in the
net defined benefit obligation as an expense in the
Statement of Profit and Loss:
a. Service costs comprising current service
costs, past service costs, gains and losses on
curtailments and non-routine settlements; and
net interest expense or income.
b. Re-measurements, comprising of actuarial
gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on
the net defined benefit liability and the return
on plan assets, are recognised immediately in
the balance sheet with a corresponding debit
or credit to retained earnings through other
comprehensive income in the period in which
they occur. Re-measurements are not reclassified
to profit or loss in subsequent periods.
Past service costs are recognised in profit or loss on
the earlier of:
• The date of the plan amendment or curtailment,
and
• The date that the Company recognises related
restructuring costs
Other Long-term employee benefits
Other long term employee benefits are recognised as
an expense in the Statement of Profit and Loss for the
period in which the employee has rendered services.
The expenses are recognised at the present value
of the amount payable determined using actuarial
valuation technique. Actuarial gains and loss in
respect of other long term benefits are charged to the
statement of profit and loss.
o) Foreign currency translation
Transactions and balances
Transactions in foreign currencies are initially recorded
at functional currency, using the foreign exchange
rate at the date the transaction first qualifies for
recognition.
At each balance sheet date, foreign currency
monetary assets and liabilities are translated at the
functional currency using the foreign exchange
rate at the reporting date. Foreign exchange gains
and losses resulting from the settlement of such
transactions and from translation of monetary assets
and liabilities denominated at foreign currencies at
year end exchange rates are generally recognised in
profit and loss.
Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial
transaction.
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p) Provision for Mines Restoration
An obligation for restoration, rehabilitation and
environmental cost arises when environmental
disturbance is caused by the development or ongoing
extraction from mines. Costs arising from restoration
at closure of the mines and other site preparation
work are provided based on their discounted net
present value, with a corresponding amount being
capitalised at the start of each project. The amount
provided for is recognised, as soon as the obligation
to incur such cost arises. These costs are charged to
the statement of profit and loss account over the life
of the operation through the depreciation of the asset
and the unwinding of the discount on the provision.
The costs are reviewed periodically and are adjusted
to reflect known developments which may have
an impact on the cost or life of operations. The cost
of the related asset is adjusted for changes in the
provision due to factors such as changes in mining
plan and updated cost estimates. The adjusted cost of
the asset is depreciated prospectively over the lives of
the assets to which they relate. The unwinding of the
discount is shown as a finance cost in the statement of
profit and loss.
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