4 Significant The financial statements of the Company luve been prepared m sKtortuntid wilh rjw
^counting relevant provisions of Hi* Compands Act, 2Q1 J, Indian Accounting Standards (inti AS ;Ý
pohcm prescribed undar sectiOfi 133 ol the Companies Art, ?0lJ
a.ltos* of Prior to adoption of bid AS, the Cnmiwny liad twtm preparing its financial statements
urcplntltf) and far an periods up tn and inclining the y**c ended 31 March JO It, in prxnrdaiKe twlth
presentation generally a ceptod ^counting principle In the India. Including accounting standards
specified under Section LJ3 of The Comp,ir.tfcs Act, 2013 read with Rote 7 nr the companies (Accounts) Rule',, 201A I “Indian raapt) These financial statements tor VE^r ended il March 2017 are the Company's first financial statements prepared in ji.i.TwilrtrK* with I nil ASs
AH assets and liabilities Have* been classified as cuirant Or concurrent as per Company's operating cycle and olh*H cmprta set Out m Schedule-111 or tl*? Cninp^nies Ail Jot 3 eased or the netlure of business, mo Company has ascertains its operating cycl* as 12 months tor the purpose of Current-noftftirTWt classification of assets and liabilities.
Che Company has adopted all the issued tod ASs and such adoption was earned out in accordance wKh Ind AS 101- First Time Adoption of Indian Accounting Stanoards The Company has transited from Jfflilao GAAP which h, Its previous GAAP as O-iined Hi tod A$ 101
The effect [>n reported financial position arm financial performance tif tht- Company on transition tv Inti A5 h** Bren provided m Note i7 of Ind AS Opening Paiance Shed as an April til, 2Bl5, which alio includes reconcuiatiuns of total equity and total cofflpnlHRitvc income tor compilative year? unaei Indian GAAP lo those requrrod for respective /t'iii under tnct AS
The rin^mhal statements, haws boon prepared on hnftqipcitr cost pasi1:, except far financial instruments thai are measured at Wr values at The end of each repurtiivg pei mo, as explained in the ecciwmng polices below.
mttoiicJl c.ii'tl i? generally based on trie ran value uf the consider at itni given in exchange Fur goods ana services
Fair value is the pnc& that would be received to sell an asset or paid to transfer 3 Ý lability In an ohferty i Ninsactiqn between msrirtt participants et the measc-remedi date. regardless gf whoih~i rhai pric« .s directly observable or afihrrmb?d using another valuation technique In estimating the Ian value nr art asset or a liability, the Company takes mto acroumt the tharortenstits of the asset or iHbifriy if mart nr participants would lake those duraCtcristio into account when pricing the assni or lability at me measurement date teir v^lue fur measurement andy Dr HMurdS in Thes.- financial statements is determined on such a basis, except for share bawd payment trensactions that ari“ within the scope of rnp AS 102 - Sheie based Pavmenrs, leading tranwainns ttuwt ar* within the scope or [nd Ah 17 - Leases, and measorements that nave some simitanties to ran value but art not fan value, such as np| realisable value in Inn AS 3 - Inventories nr value in use In End AS 56 Impairment of Assets.
In addition, tor financial sporting purposes., lair value measurements are caiegansud into Level 1, ? or 1 Uai^d on tfve degree to which the input? Id The fair value
measurements are observable and the significance of du? inputs to the fair value measurement ki its entirety, wnkh are described as follows
• Level 1 mputs aie quoted pnees {uoad]i*t*d'. In active markets for identical assets or Maul lines Thar the Company can access .it the measurement d^i~
- Level 2 Inputs am Inputs, other than quoted prices Included within level 1, that are nCwrvahle rot the wot or UatnlUy., either rtirectEy qr indirectly, and
* Level i inputs arc unobservable inputs for the asset or iiali.-iry Thu principal accounting policies arc set out below
1 2 Propedy, plant Property, plant and equipment hekJ far use in the production an and supply or goods bid Equipment or service?, or tor aonumstTstive puipuscs, an; stated In ihe bafante sheet at cost, less any subsequent accum u'Ated depreciation and subsequent steumuiaii’ri impairment lusses Initial Measurement
The Lnrt'ai cost at cash price equivalent of property, plant end equipment acquired conpitses its purrhase |)ru:or indutimg import (furies and Mein-refundable purchase lanes. any dlrcctry ahncutable cost? or bring inq the assets tD its working condition and luxation and preswit value of any asset restoration obligation or obligatory decommettrqmng costs far Its intended use
Eipemjitun? mcuireq on development o-r frfreiioki land is capitalized pan of the COST of the land
in base of self constructed assets cost Includes the costs or alt materials used in Const) uctron, direct labour. allocation of overheads, directly attributable borrowing costs.
Subsequent expenditure
Subsequent e±gendlture on day- to- day servicing of in Rent of property, plant and equipment ti recognised Fn profit w los% as incur Fed However, expenditure on rpa|sf maintenance or repaiis mrhitling cost of replacing the parts of assets and overhaul costs wfwrt tt is probable mat future economic benefits associated with the Hem win be available to tht Company, are capitattseri and the carrying amount or the Hem » replaced it, dejttioqnjserJ.
Insurance spares (hat *m* specific to a (toed asset and valuing mart than fc I takb pet unit are capitalised along with the main assets All other spares are recognised as inventory, ^vrepl for “ipares which are having a useful bte greater than * year and can tn h-1 ndFnpfied as components in an asset arc capitalised Capital work in progress
Assets In the course of consfruaion for production or/antE supply of goods or services or admiotetrotke purposes, or for purposes not yet deteimined, are included under capital wor* ai progr as.'? and are carried ar cost, 'ess any recognised rmpoirrnent 'oss.Cost inciudes professional fee, and for qualiryhog asset, borrowings coits Cipltalbed in accordence with the CnmpafFy's accounting polity 5uth capital work in praqreSs,, i? trap erred to the appropriate category of property, plant and equipment when completed or starts npcialmg as pw inauag*fment\ branded use
Costs associated with the commissioning of an asset are capitalised where lh* asset is available lor use hut incapable of operating at normal levels until a period of coFremissibhirLg has been completod depreeWen
DUpreciitLon on assets are provided over their estimated useful lives or in thr- case or leased assets (Including leasehold improvements}, over the lease teem if shutter the lease period is considtred by excluding any lease renewals options, unPi*$s (he renewals are reasonably certain Depredation on as^ss are provided on a straight line basis ovtr the useful life of the asset ifi the manner prescribed utidor Schedule 11 of the Companies act, J0i3.
the estimated uwhii lives am) residual values are reviewed ai each year end, with the effect or any changes m estimate accounted for on a prospective base tilth component of an Item of property, plant and equipment with a cost (hat Is significant In relation to the total cost of that item Is depreciated separately if its useful iffe differs from trie others components at the asset
Property, plant and equipment which ah? subject to comptioentisatlnn, cumpriHH ot mam assets, coniponentised assets and remaJfii<Jers, ii any Thy usehii Hfe oi renviiliners carry the life of main assets unless t!>- Time based On technical evaluation rs considered to be lower than that of the main asset, m which case, such 1 owtr useful lift? is considered
The residual value or property. ptem and equipment ate maiiiittiwd at 5% .,f the imoinai cost
Subsequent expend^ure related to an item of property plant and equipment is pr&spertlu(Hy depreciated Over the revised useful life ot retpechvo assets
rttG estimated range of useful live are a?, follows Vears
Buildings id - 60
Plant and machinery 8 - Ifl
Railway SWlng 15
Motor Vehicles B
Furniture and fixtures IB
CcimpuUfs 3 - |0
freehold land is not depreciated
Depreciation commences when the .nc ru;jdy fur rheh intended use
Depreciated assets fin property, plant and equipment Anti accumulated dept sK.ia( inn thereon are retained fully until they ere deterogmsed or dessmed at non-current assets held tor sale
Disposal Of assets
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are ^vppctetf to arise front the continued use Of the asset Any gam or loss emsmg on th* dispersal or reUiemenl <>r an Kern uf property, plant and equipment H determined as the different!} between net disposal proceeds and me rflfrying aniLHint nf the Sss U and 15 retfjfplised truin' sratHHWpl of profit and Inis
Deemed cu?1 on transition to Ind AS
For transition ut ]nd Ai, the Company has elected to continue with the carrying v&H** of all ns proper!v, P1*™ equipment recogin/ed a> uf J April, 2015 (jtfWVitfun dale] measured as per the prevloui GAAP Jincl use that catiykng value as its deemed cost as of the transition date .
[ i intangible Intangible assets acquired separately
tsscti Intangible assets acquired are reported at cost less accumulated amortisation ana
accumulati-d impairment losses Intangible assets Having Ante usoful llle are amortised over thmr estimated useful lives. The estimated useful We and amortisation method are jeviewetl ai the end of each annual sporting period, with the i=flert or =tny changes in estimate tming accounted fnr an ^ |wusp«tivo basis
Mining Rights
The costs of mining rights includes amounts paid for afforestation and wild life conversation as determined by the regulatory authorities *re capitalised iis "M.nirtq rights' in (he year in which they are incurred Cosl of pre production primary devckipmem expenditure isfhei than und. buildings plant .imi equffnerti capitalised as part of the cost of fhr? mining property until (he mining property iz capaljin of cornrne= naI iirixludlDi Napitafised mining properties are amortised on a umr of-production basis way the total estimated remaining commercial reserves or mining property and are subject i* iinpaiimrnt review
Dtfecognition of intangible assrfs
An lotangsplt1 asset is derecognised on dispersal or when no fuUmfr etonumic benefits are expected from u$e or disposal dims or toss?', arising from (fereoqfiition of an intamjioio asstt. measured as the difference between the net disposal proceeds and the carrying amount ot the asset are recognised in the statement of profit and loss When the asset IS rter^oymsed
AimftlHlion
The estimated useful lives for the main categories a\ intiingtbk-s assets having finite useful life are as follows.
(d) Acquired computer software are Classified as intangibly assets and tames, a useful life of Ý* years
(&} Mining Rights comprising of HFV and related payments made to government authorities tor irqp ore apn rnanqangsa mines are amortised over the period of rease from the date of payment nr Lidte of rei^ei/ deemed renewal or mining lease whichever is earner
Deemed cost on trinsltion to ImJ AS
for transition In Ind AS, The Company has elected to continue wfth the csrrjnnq vaJmr of ill Its intangible assets retogolRO as of 1 April. JQiS (haiisJtion date) measured as per (he previous GAAP and use ttul carrying value as its deemed cost as of the tranjitkin dare
4 4 impairment impairment or tangible and intangible uhh
At UMf end Of each reporting period, the fitrfnpany review* the earring Amounts of Rs tangible and intangible assets to determine whether there ts any indjtatmn that (time assets have suffered an impair muni loss If any such indication exists, the recoverable amount ef th* a^spl t* estimated 1H order In determine tfi^ extent cit the impairment Idss t any) White it i& not possible tu estimate the recoverable amount of an iirtJhmJudl 4«e|. ihe Company esiimrif^s in* recoverable amount of the cashgenerating umrt to which the asset belongs
Recoverable- amount is llw higher or fair value Jess casts to sell and valmr in u-,« Tn assessing value in use, the rshmated future cash flows an-1 discounted to their present waiue using .. pre-LOx discount rate mat reflects current market assessments flr me time value or money end the nsks specific to Lhe usset far which the estimate tif future cash flows have not (wen adjusted
If the recoverable amount uf an asset (nr castwameratlfig unii, is estimated to be less Than ds carrying amour*, the tan-yln^ Amount of the asset ior cash-gisieralinu unit) ih educed to its recoverable amount An impairment loss is recognised immediately In the statement of profit and loss
Where? an impairment irts subsequently reverses, the carrying amount of the ior cash generating unit) is increased to the revtsrt estimate of Us recoverable amount, but so that the increased carrying amount floes not exceed the tanying amount that wnuld haw been determined hid no impair mem toes benn recognised Tor the **** tor -wsh-genecaipnfl unit] m prror yo-ira. A reversal of an Intpskiiiatt loss is renLijmsed immediately in the stai emootof profit and lc.ss
*5 Investments in IK joint vtniuTe is a mint arrangement whereby thp parties that have joir-r control or joint ventures the arrangement ha^ rights to the net greets of the joint rtrnwKwmwit Joint control is the contractually agreed sharing of control of art arrangement winch exists only when decisions about the relevant adivlttos require unanimous consent of the parties sharing Cdhtrui,
Investment m lofitf venture are acrouited far at r.usi
|