i. Provisions and contingent liabilities

The company creates a provision when there is present
obligation as a result of a past event that probably requires
an outflow of resources and a reliable estimate can be made
of the amount of obligation. A disclosure for a contingent
liability is made when there is a possible obligation or a
present obligation that probably will not require an outflow
of resources or where a reliable estimate of the obligation
cannot be made.

j. Employee benefits

The company has not provided for Gratuity and Leave
encashment benefits till 31.03.2020. The retirement
benefits will be debited as and when paid.

k. Cash and cash equivalents

Cash and cash an equivalent includes cash on hand, demand
deposits with banks, other short-term highly liquid
investments with original maturities of three months or less.

l. Earnings per share

Basic Earnings Per Share ('EPS') is computed by dividing the
net profit attributable to the equity shareholders by the
weighted average number of equity shares outstanding
during the year. Diluted earnings per share is computed by
dividing the net profit by the weighted average number of
equity shares considered for deriving basic earnings per
share and also the weighted average number of equity
shares that could have been issued upon conversion of all
dilutive potential equity shares. Dilutive potential equity

m. Cash flow statement

Cash flows are reported using indirect method, whereby
net profits before tax is adjusted for the effects of
transactions of a non-cash nature and any deferrals or
accruals of past or future cash receipts or payments and
items of income or expenses associated with investing or
financing cash flows. The cash flows from regular revenue
generating (operating activities), investing and financing
activities of the Company are segregated.

n. Foreign Exchange Transactions

a) Transactions in Foreign Currency are accounted at the
exchange rate prevailing on the date of Transactions.
Exchange fluctuations between the transaction date and
the settlement date in respect of Revenue Transactions
are recognized in Profit & Loss Account.

b) All export proceeds not realised at the year-end are
restated at the rate prevailing at the year end. The
exchange difference arising there from has been
recognised as income / expenses in the Current Year's
Profit & Loss A/c along with underlying transaction.

c) The premium or discount arising at the inception of
forward exchange contract is amortised as expense or
income over the life of the contract. Exchange differences
on such contracts are recognised in the statement of
profit and loss in the year in which the exchange rates
change. Any profit or loss arising on cancellation or
renewal of forward exchange contracts is recognised as
income or as expense for the year. None of the forward
exchange contracts are taken for trading or speculation
purpose.

Note 40: Financial Risk Management Objectives and Policies

The Company's financial risk management is an integral part of how to plan and execute its business strategies
Capital management

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximizing
the return to stakeholders through optimization of debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in note 15 offset by cash and bank
balances) and total equity of the Company.

The Company is subject to externally imposed capital requirements.

(i) Debt is defined as long-term and short-term borrowings, as described in note 16 & 19.

Market risk

The Company's activities expose it primarily to the financial risk of changes in interest rates.

Foreign currency risk management

The Company does not undertake any transactions denominated in foreign currencies; consequently there is no exposure to
exchange rate fluctuations.

Equity risk

The company is exposed to equity risk due to its investments in listed shares. Any adverse market movement may lead to a
decline in the value of these investments. This could impact the company's financial performance and net worth.

Interest risk

The company is exposed to interest rate risk on its cash credit facility from the bank. Since the borrowing carries a floating interest
rate, any increase in market rates may raise the company's finance cost. This could adversely affect its profitability and cash
flows.

If the interest rate decrease/(increase) by 50 basis point, the interest expense would decrease by Rs.2.28 lakhs (increase by
Rs.2.28 lakhs) (as at 31 March 2024: decrease by Rs. 5.58 lakhs (increase by Rs. 5.58 lakhs )).

Credit risk management

Credit risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss to the Company.
The Company uses its own transaction records to evaluate the credit worthiness of its customers. The Company's exposure are
continuously monitored and the aggregate value of transactions concluded are spread amongst approved counter parties (refer
note 8 - Trade Receivables).

Financial guarantees/Performance Guarantees

The Company has furnished a Performance Guarantee in favor of the Nominated Authority, Ministry of Coal, as a commitment
to fulfill its obligations under the coal mine allocation agreement. This guarantee ensures that the Company will achieve the
specified development milestones, maintain production timelines, and comply with the performance criteria stipulated by the
Ministry.

Liquidity risk management

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The objective of
liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as and when required.

Ultimate responsibility for liquidity risk management rests with the Board of Directors which has established an appropriate
liquidity risk management framework for the management of the Company's short-term, medium term and long-term funding
and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking
facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows any by matching the maturity
profiles of financial assets and liabilities.