INDEPENDENT AUDITOR’S REPORT

To the Members of Essel Mining and Industries Limited.

Report on the Audit of the Standalone Financial Statements.
Opinion
We have audited the accompanying standalone financial statements of Essel Mining and Industries
Limited (“the Company”), which comprise the balance sheet as at March 31 2021, the statement of profit and
loss, (including the statement of other comprehensive income), the cash flow statement and the statement of
changes in equity for the year then ended, and notes to the standalone financial statements, including a
summary of significant accounting policies and other explanatory information (hereinafter referred to as “the
standalone financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
standalone financial statements give the information required by the Companies Act, 2013 (“the Act”) in the
manner so required and give a true and fair view in conformity with the accounting principles generally
accepted in India, of the state of affairs of the Company as at March 31, 2021, its total comprehensive income
(profit and other comprehensive loss), its cash flows and the changes in equity for the year ended on that
date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing
(SAs) specified under section 143(10) of the Act. Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Statements’ section of our
report. We are independent of the Company in accordance with the ‘Code of Ethics’ issued by the Institute of
Chartered Accountants (ICAI) of India together with the ethical requirements that are relevant to our audit of
the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have
fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the standalone financial statements.

Other Information

The Company’s Board of Directors is responsible for the preparation of the other information. The other
information comprises the information included in the Board’s Report including Annexure to Board’s Report,
but does not include the standalone financial statements and our auditor’s report thereon.

Our opinion on the standalone financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
standalone financial statements or our knowledge obtained during the course of our audit or otherwise
appears to be materially misstated. If based on the work we have performed, we conclude that there is a
material misstatement of this other information; we are required to report that fact. We have nothing to report
in this regard.
Responsibilities of Management for the Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with
respect to the preparation of these standalone financial statements that give a true and fair view of the
financial position, financial performance including other comprehensive income, cash flows and changes in
equity of the Company in accordance with the accounting principles generally accepted in India, including the
Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the
design, implementation and maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation
and presentation of the standalone financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these standalone
financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible
for expressing our opinion on whether the Company has adequate internal financial controls system
in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
 • Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the standalone financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financial statements,
including the disclosures, and whether the standalone financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in
aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the
standalone financial statements may be influenced. We consider quantitative materiality and qualitative
factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate
the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s report) Order, 2016 (“the Order”) issued by the Central Government
of India in terms of sub-section (11) of section 143 of the Act, we give in the “Annexure A” a statement on the
matters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143 (3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it
appears from our examination of those books;
(c) The balance sheet, the statement of profit and loss including the statement of other comprehensive
income, the cash flow statement and statement of changes in equity dealt with by this report are in
agreement with the books of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards
specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015,
as amended from time to time;
(e) On the basis of the written representations received from the directors as on March 31, 2021 taken on
record by the Board of Directors, none of the directors is disqualified as on March 31, 2021 from being
appointed as a director in terms of Section 164(2) of the Act;

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and
the operating effectiveness of such controls, refer to our separate Report in “Annexure B”. Our report
expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal
financial controls over financial reporting.
(g) In our opinion, the managerial remuneration for the year ended March 31, 2021 has been paid/ provided
by the Company to its directors in accordance with the provisions of section 197 read with Schedule V to
the Act; and
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our
information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its
standalone financial statements – Note no 42 to the standalone financial statements;

ii. The Company did not have any long-term contracts including derivative contracts for which there
were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company.

For Singhi & Co.

Chartered Accountants
(Firm’s Registration No. 302049E)

Sd/-
Navindra Kumar Surana
Partner
(Membership No. 053816)
UDIN: 21053816AAAAFK2240
Place: Kolkata
Date: June 29, 2021.
ANNEXURE ‘A’ TO THE INDEPENDENT AUDITOR’S REPORT
(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of
our report to the Members of Essel Mining & Industries Limited of even date)
i. In respect of the Company’s Property Plant & Equipments

(a) The Company has maintained proper records showing full particulars, including quantitative
details and situation of Property Plant & Equipments
(b) The Company has a program of verification to cover all the items of fixed assets in a phased
manner over a period of 3 years which, in our opinion, is reasonable having regard to the size
of the Company and the nature of its assets. Pursuant to the program, a portion of property
plant & equipments were physically verified by the management during the year. According to
the information and explanations given to us, no material discrepancies were noticed on such
verification.
(c) According to the information and explanations given to us and on the basis of our examination
of the records of the Company, the title deeds of immovable properties as disclosed in note
no. 3 (i) of the standalone financial statements are held in the name of the Company except in
respect of land valuing Rs 103.46 lacs, whose registration in the name of the Company is
pending.

ii. The physical verification of inventory have been conducted at the year-end by the Management. The
discrepancies noted on physical verification of inventory as compared to book records were not
material.

iii. The Company has not granted any loan to companies, firms, limited liability partnership or other
parties covered in the register maintained under section 189 of the Companies Act, 2013. Therefore,
the provisions of clause 3(iii) of the Order are not applicable to the company
iv. The Company has complied with the provisions of Sections 185 and 186 of the Act in respect of
grant of loans and investments made and guarantees and securities provided by it.
v. The Company has not accepted deposits from public within the meaning of section 73, 74, 75, 76 of
the Act and the Rules framed there under to the extent notified.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain
cost records as specified under section 148(1) of the Act in respect of its product. We have broadly
reviewed such accounts and records and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a detailed examination
of the said records with a view to determine whether they are accurate or complete.

vii. (a) According to the information and explanations given to us and on the basis of our
examination of the books of account, the Company is generally regular in depositing
undisputed statutory dues including Provident Fund, Employee’s State Insurance, Income
Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, and Cess.
Goods and Service Tax and other material statutory dues with the appropriate authorities.
According to the information and explanations given to us and the records of the Company
examined by us, no undisputed statutory dues as above were outstanding as at 31st March,
2021 for a period of more than six months from the date they became payable

(b) According to information and explanation given to us and the records of the Company
examined by us , there are no dues of sales tax , duty of excise, duty of customs , income tax
and value added tax which have not been deposited on account of any dispute. The
particulars of dues of income tax, service tax and purchase tax as at March 31, 2021 which
have not been deposited on account of a dispute, are as follows:
 Name of the Nature of dues Amount Period to which the Forum where
statute amount relates dispute is
(Rs in lacs) pending

Finance Act, Service Tax on freight rebate 244.16 2010-11 to 2012-13 Commissioner
1994 realized from Customer & Appeal, Central
Goods transportation charges Excise & Service
for exports purpose Tax, Bhubaneswar

Orissa Value Non-levy of Purchase Tax 284.08 2012-13 to 2013-14 Hon'ble High Court
Added Tax and penalty on branch of Odisha
Act,2004 transfer of Iron Ore otherwise
than by way of Sales against
declaration form F

Orissa Value Non-levy of Value Added Tax 27.15 01.04.16 to 30.06.17 Additional CCT
Added Tax on purchase/receipt from (Appeal)
Act,2004 unregistered dealer

Income Tax Income tax & Interest thereon 8054.68 2007-08 to 2010-11 & Commissioner of
Act, 1961 2015-16 to 2016-17 Income Tax
(Appeal), Mumbai

Finance Act, Service tax & penalty there 582.85 2009-10 to 2012-13 CESTAT, Kolkata
1994 against

CGST Act Differential tax on royalty rate 7681.77 April 2018 to Dec 2018 Commissionerate
2017 change. Failure to pay tax of CT and GST
and Interest u/s 73 (8) of the Odisha
CGST Act 2017

viii. According to the records of the Company examined by us, and the information and explanations
given to us, the Company has not defaulted in repayment of loans or borrowings to any banks,
financial institution or dues to debenture holders as at the balance sheet date. The Company does
not have any loans or borrowings from Government as at the balance sheet date, therefore the
provisions of Clause 3(viii) of the Order, to the extent, are not applicable to the Company.

ix. In our opinion, and according to the information and explanations given to us, the Company has
utilized the monies raised by way of term loans for the purpose for which the loans were obtained.
Further the Company has not raised any money by way of initial public offer or further public offer
(including debt instruments) during the year.

x. Based upon the audit procedure performed for the purpose of reporting the true and fair view of the
standalone financial statements and according to the information and explanations given to us, no
material fraud by the Company or on the Company by its officers or employees has been noticed or
reported during the year.

xi. The Company has paid/provided for managerial remuneration in accordance with the requisite
approvals mandated by the provisions of section 197 read with Schedule V to the Act.

xii. The Company is not a Nidhi Company. Therefore clause 3 (xii) of the Order is not applicable to the
Company.
xiii. According to the information and explanations given to us, transactions with the related parties are in
compliance with Section 177 and 188 of the Companies Act, 2013 where applicable, and the details
of related party transactions have been disclosed in the standalone financial statements as required
by the Indian Accounting Standard ( Ind AS) 24 Related Party Disclosure.

xiv. The Company has made private placement of fully Compulsorily Convertible Debentures during the
year under review. As per the information and explanations provided to us the requirements of
section 42 of the Companies Act, 2013 have been complied with and the amount raised have been
used for the purposes for which the funds were raised.

xv. The Company has not entered into any non cash transactions with its directors or persons connected
with them to which Section 192 of the Act applies. Accordingly, the provisions of Clause 3(xv) of the
Order are not applicable to the Company

xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act,
1934.Therefore the provisions of Clause 3(xvi) of the Order are not applicable to the company.

For Singhi & Co.

Chartered Accountants
(Firm’s Registration No. 302049E)

Sd/-
Navindra Kumar Surana
Partner
(Membership No. 053816)
UDIN: 21053816AAAAFK2240
Place: Kolkata
Date: June 29, 2021.
ANNEXURE “B” TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 2(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our
report to the Members of Essel Mining and Industries Limited of even date)

Report on the Internal Financial Controls with reference to Standalone Financial Statement under
Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of Essel Mining and Industries
Limited (“the Company”) as of March 31, 2021 in conjunction with our audit of the standalone financial
statements of the Company for the year ended on that date.

Management’s Responsibility for internal financial controls

The Management of the Company is responsible for establishing and maintaining internal financial controls
based on the internal financial control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These
responsibilities include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its business, including
adherence to respective company’s policies , the safeguarding of its assets, the prevention and detection of
frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.

Auditor’s Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting with
reference to these standalone financial statements based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the
“Guidance Note”) issued by the Institute of Chartered Accountants of India and the Standards on Auditing
prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal
financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial
controls with reference to standalone financial statements was established and maintained and if such
controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls over financial reporting system with reference to standalone financial statements and their
operating effectiveness. Our audit of internal financial controls over financial reporting with reference to
standalone financial statements included obtaining an understanding of internal financial controls over
financial reporting with reference to standalone financial statements, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal control based
on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the Company’s internal financial controls over financial reporting with reference to these
standalone financial statements
Meaning of internal financial controls over financial reporting with reference to standalone financial
statements.
A company’s internal financial control over financial reporting with reference to standalone financial
statements is a process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal financial control over financial reporting with reference
to standalone financial statements includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in accordance with
authorisations of management and directors of the company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s
assets that could have a material effect on the financial statements.
Limitations of internal financial controls over financial reporting with reference to standalone
financial statements
Because of the inherent limitations of internal financial controls over financial reporting with reference to
these standalone financial statements, including the possibility of collusion or improper management override
of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of
any evaluation of the internal financial controls over financial reporting with reference to standalone financial
statements to future periods are subject to the risk that the internal financial control over financial reporting
with reference to these standalone financial statements may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls over
financial reporting with reference to standalone financial statements and such internal financial controls over
financial reporting with reference to standalone financial statements were operating effectively as at March
31, 2021, based on the internal financial control over financial reporting with reference to standalone
financial statements criteria established by the Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued
by the Institute of Chartered Accountants of India.

For Singhi & Co.

Chartered Accountants
(Firm’s Registration No. 302049E)

Sd/-
Navindra Kumar Surana
Partner
(Membership No. 053816)
UDIN : 21053816AAAAFK2240
Place: Kolkata
Date: June 29, 2021.
 ESSEL MINING & INDUSTRIES LIMITED
BALANCE SHEET AS AT 31ST MARCH, 2021
CIN: U51109WB1950PLC018728
in Lakhs
As at As at
Particulars Note No. 31st March, 2021 31st March, 2020
I ASSETS
1) Non-Current Assets
a) Property, Plant and Equipment 3(i) 42,625.09 47,324.35
b) Capital Work - in - Progress 3(ii) 950.51 573.53
c) Intangible Assets 4 323.05 1,116.30
d) Financial Assets
i) Investments in Subsidiaries 5(i) 13,90,809.43 13,78,730.86
ii) Other Investments 5(ii) 4,206.47 3,958.60
iii) Loans 6 3.45 2.75
iv) Other Financial Assets 7 9,414.01 10,449.30
e) Deferred Tax Assets 37 16,948.48 47,663.03
f) Other Non-Current Assets 8 587.43 552.75
14,65,867.92 14,90,371.47
2) Current Assets
a) Inventories 9 8,544.41 19,672.11
b) Financial Assets
i) Investments 10 32,453.38 -
ii) Loans 11 1,72,359.12 5,814.65
iii) Trade Receivables 12 29,583.83 41,555.13
iv) Cash and Bank Balances
- Cash and Cash Equivalents 13(i) 2,372.68 2,103.31
- Bank Balances other than Cash and Cash 13(ii) 17,987.00 -
Equivalents 13 (i) above
v) Other Financial Assets 14 44,594.41 4,313.12
c) Current Tax Assets (Net) 15 10,006.24 9,698.82
d) Other Current Assets 16 9,368.95 22,471.36
3,27,270.02 1,05,628.50

Total Assets 17,93,137.94 15,95,999.97

II EQUITY AND LIABILITIES

1) Equity
a) Equity Share Capital 17 1,95,821.09 1,80,757.93
b) Other Equity 18 14,00,852.39 11,24,527.62
Total Equity 15,96,673.48 13,05,285.55

2) Liabilities
i) Non-Current Liabilities
a) Financial Liabilities
-Borrowings 19 1,32,740.11 1,11,154.74
-Other Financial Liabilities 20 1,258.81 1,143.49
b) Provisions 21 142.17 142.17
c) Other Non-Current Liabilities 22 125.00 187.50
1,34,266.09 1,12,627.90
ii) Current Liabilities
a) Financial Liabilities
-Borrowings 23 7.21 90,559.88
- Trade Payables 24
Total outstanding dues of micro enterprises and 56.82 19.84
small enterprises
Total outstanding dues of creditors other than micro 27,236.20 27,299.88
enterprises and small enterprises
-Other Current Financial Liabilities 25 11,787.35 31,844.76
b) Provisions 26 705.33 1,214.62
c) Current Tax Liabilities (Net) 27 4,444.43 3,884.44
d) Other Current Liabilities 28 17,961.03 23,263.10
62,198.37 1,78,086.52

Total Liabilities 1,96,464.46 2,90,714.42

Total Equity and Liabilities 17,93,137.94 15,95,999.97

Summary of Significant Accounting Policies 2.2

The accompanying notes are an integral part of the Financial Statements

As per our report of even date For and on behalf of the Board

For SINGHI & CO. Sd/-

Chartered Accountants Tuhin Kumar Mukherjee
Firm Registration Number: 302049E Managing Director
DIN - 01163569

Sd/- Sd/- Sd/-

Navindra Kumar Surana Sunil Kumar Daga Giriraj Maheswari
Partner Director Director
Membership No.053816 DIN - 00441579 DIN - 00796252

Sd/- Sd/-
Place: Kolkata Arun Garg Dhananjoy Karmakar
Dated: 29th June, 2021 Chief Financial Officer Company Secretary
 ESSEL MINING & INDUSTRIES LIMITED
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2021
CIN: U51109WB1950PLC018728

in Lakhs

Particulars Note No. Year ended 2020-21 Year ended 2019-20

Income
I. Revenue from Operations 29 4,13,229.05 4,22,758.98
II. Other Income 30 16,575.17 6,747.16

III. Total Income - (I + II) 4,29,804.22 4,29,506.14

IV. Expenses
Cost of Raw Materials Consumed 31 8,457.20 9,282.01
(Increase)/Decrease in Inventories of Finished Goods and Work-in- 32 11,091.43 (6,448.27)
Progress
Employee Benefits Expenses 33 9,754.25 11,335.90
Transportation and dispatch expenses 57,946.71 84,583.65
Finance Costs 34 15,858.15 22,787.14
Depreciation & Amortization Expenses 35 5,658.29 23,610.54
Other Expenses 36 1,05,224.66 1,52,530.14
Total Expenses - (IV) 2,13,990.69 2,97,681.11

V. Profit/(Loss) Before Tax - V = [(III) - (IV)] 2,15,813.53 1,31,825.03

VI. Tax Expenses

Current Tax 37 73,942.13 22,375.92
MAT credit entitlement 37 - (19,051.49)
Deferred Tax charge / (credit) 37 664.54 42,232.22
Total Tax Expense /(credit) - (VI) 74,606.67 45,556.65

VII. Profit/(Loss) for the year - VII = [(V) - (VI)] 1,41,206.86 86,268.38

VIII. Other Comprehensive Income (OCI)

Other Comprehensive Income not to be reclassified to
profit/loss in subsequent periods -
Net Gain / (Loss) on FVTOCI Investments 125.56 (51.44)
Income Tax effect on FVTOCI Investments (29.25) 11.99
Re-measurement Gains/ (Losses) on defined benefit plans 191.97 (358.28)
Income Tax effect on re-measurement Gains/ (Losses) (67.08) 125.20

Other Comprehensive Income for the year, net of tax - (VIII) 221.20 (272.53)

IX. Total Comprehensive Income for the year - [(VII) + (VIII)] 1,41,428.06 85,995.85

Earnings per Equity Share 38

(Nominal value of share 10/- each)

- Basic EPS ( ) 7.29 4.77

- Diluted EPS ( ) 7.13 4.77

Summary of Significant Accounting Policies 2.2

The accompanying notes are an integral part of the Financial Statements

As per our report of even date For and on behalf of the Board

For SINGHI & CO. Sd/-

Chartered Accountants Tuhin Kumar Mukherjee
Firm Registration Number: 302049E Managing Director
DIN - 01163569

Sd/- Sd/- Sd/-

Navindra Kumar Surana Sunil Kumar Daga Giriraj Maheswari
Partner Director Director
Membership No.053816 DIN - 00441579 DIN - 00796252

Sd/- Sd/-
Place: Kolkata Arun Garg Dhananjoy Karmakar
Dated: 29th June, 2021 Chief Financial Officer Company Secretary
 ESSEL MINING & INDUSTRIES LIMITED
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST MARCH, 2021
CIN: U51109WB1950PLC018728

in Lakhs
(A) Equity Share Capital
Number Amount
Equity Shares of 10/- each issued, subscribed and fully paid
At 31st March, 2019 9,65,979 96.60
Issued during the year 2,38,271 23.83
Issued Bonus Shares during the year 1,80,63,75,000 1,80,637.50
At 31st March, 2020 1,80,75,79,250 1,80,757.93
Issued during the year 15,06,31,603 15,063.16
At 31st March, 2021 1,95,82,10,853 1,95,821.09

(B) Other Equity

Equity
Reserves and Surplus Items of OCI
Component of
compound
Net Gain /
Particulars Financial Investment Capital Debenture Total
Capital General Securities Retained (Loss) on
Instruments Subsidy Redemption Redemption
Reserve Reserve Premium Earnings FVTOCI
(Convertible Reserve Reserve Reserve
Investments
Debentures)
Balance as on 31st March, 2019 - 28.90 38.44 1,49,600.00 17,250.00 1,87,106.88 4,60,279.85 1,49,298.56 417.05 9,64,019.68
Profit / (Loss) for the year - - - - - - - 86,268.38 - 86,268.38
Net Gain / (Loss) on FVTOCI Investments - - - - - - - - (39.45) (39.45)
Re-measurement Gains/ (Losses) on defined benefit plans - - - - - - - (233.08) - (233.08)
Transfer to General Reserve - - - - (11,875.00) 11,875.00 - - - -
Transfer from Retained Earnings - - - - 8,125.00 - - (8,125.00) - -
Utilised for issue of Bonus Shares during the year (1,49,600.00) (31,037.50) (1,80,637.50)
Premium on issue of Equity Shares - - - - - - 2,55,175.99 - - 2,55,175.99
Payment of Cash Dividend for FY 2018-19 - - - - - - - (21.90) - (21.90)
Payment of Dividend Distribution Tax for FY 2018-19 - - - - - - - (4.50) - (4.50)

Balance as on 31st March, 2020 - 28.90 38.44 - 13,500.00 1,98,981.88 6,84,418.34 2,27,182.46 377.60 11,24,527.62

Profit / (Loss) for the year - - - - - - - 1,41,206.86 - 1,41,206.86

Net Gain / (Loss) on FVTOCI Investments - - - - - - - - 96.31 96.31
Re-measurement Gains/ (Losses) on defined benefit plans - - - - - - - 124.89 - 124.89
Equity component of compound Financial Instruments 65,606.17 - - - - - - - - 65,606.17
(Compulsorily Convertible Debentures)
Transfer to General Reserve - - - - (13,500.00) 13,500.00 - - - -
Premium on issue of Equity Shares - - - - - - 69,290.54 - - 69,290.54

Balance as on 31st March, 2021 65,606.17 28.90 38.44 - - 2,12,481.88 7,53,708.88 3,68,514.21 473.91 14,00,852.39

As per our report of even date For and on behalf of the Board

For SINGHI & CO. Sd/-

Chartered Accountants Tuhin Kumar Mukherjee
Firm Registration Number: 302049E Managing Director
DIN - 01163569

Sd/- Sd/- Sd/-

Navindra Kumar Surana Sunil Kumar Daga Giriraj Maheswari
Partner Director Director
Membership No.053816 DIN - 00441579 DIN - 00796252

Sd/- Sd/-
Place: Kolkata Arun Garg Dhananjoy Karmakar
Dated: 29th June, 2021 Chief Financial Officer Company Secretary
 ESSEL MINING & INDUSTRIES LIMITED
STATEMENT OF CASH FLOWS FOR YEAR ENDED 31ST MARCH, 2021
CIN: U51109WB1950PLC018728

in Lakhs
Year ended 2020-21 Year ended 2019-20
A. Cash Flow from Operating Activities
Profit before tax 2,15,813.53 1,31,825.03

Adjustments to reconcile Profit / (Loss) Before Tax to Net Cash Flows:

Depreciation and Amortization 5,658.29 23,610.54
Loss on sale / discard of Property,Plant & Equipment 327.95 16.18
Capital Work-in-Progress written off - 222.23
Investments written off - 1.00
Irrecoverable Loans / Debts & Advances written off 1.50 -
Dividend Income (0.79) (2.14)
Unrealised Foreign Exchange Loss / (Gain) (15.96) 309.43
Unclaimed Balances written back / Liabilities and Provisions no longer
(1,792.93) (302.74)
required written back
Finance Costs 15,858.15 22,787.14
Financial Guarantee Income (167.59) (398.96)
Interest Income (13,059.70) (4,709.22)
Fair value (Gain) / Loss on financial instruments through profit or loss (156.92) (123.57)
(Profit)/ Loss on sale of Current and Long Term Investments (Net) (391.35) (255.60)

Working capital adjustments:

(Increase) / Decrease in Trade and other Receivables (14,826.96) (36,566.71)
(Increase) / Decrease in Inventories 11,127.70 (4,355.51)
Increase / (Decrease) in Trade Payables, Other Liabilities and Provisions (5,258.34) 22,748.71
2,13,116.58 1,54,805.81
Income Tax Paid (34,500.43) (23,879.81)
Net Cash Flows from / (used in) Operating Activities (A) 1,78,616.15 1,30,926.00

B. Cash Flow from Investing Activities

Sale of Property, Plant and Equipment 558.14 44.82
Purchase of Property, Plant and Equipment (1,573.07) (3,262.41)
Purchase of Investments (2,87,633.69) (6,29,562.62)
Sale of Investments 2,43,292.19 2,99,225.14
Loans & Inter - Corporate Deposits given (3,48,641.00) (1,70,417.73)
Loans & Inter - Corporate Deposits received back 1,82,254.43 2,29,796.58
Fixed Deposits (17,987.00) 0.02
Interest received 11,416.87 5,227.04
Dividend received 0.79 2.14
Net Cash Flows from / (used in) Investing Activities(B) (2,18,312.34) (2,68,947.02)

C. Cash Flow from Financing Activities

Issue of Equity Share Capital (including Securities Premium) 84,353.70 2,55,199.82
Proceeds from issue of Compulsorily Convertible Debentures 82,800.00 -
Proceeds from Non - current borrowings 1,00,000.00 32,500.00
Repayment of Non - current Borrowings (1,19,940.70) (96,356.63)
Net Increase /(Decrease) in Short - Term Borrowings (90,552.67) (29,347.07)
Dividend paid on Equity Shares (including Dividend Tax) - (26.40)
Interest paid (16,694.77) (23,715.64)
Net Cash Flows from / (used in) Financing Activities ( C) 39,965.56 1,38,254.08

Net increase in Cash and Cash Equivalents 269.37 233.06

Cash & Cash Equivalents at the beginning of the year 2,103.31 1,870.25
Cash & Cash Equivalents at the end of the year 2,372.68 2,103.31

For the purpose of the statement of cash flows, cash and cash equivalents comprise the following:
As at As at
31st March, 2021 31st March, 2020
Balances with Banks:
- On Current Accounts 83.62 835.03
- On Cash credit account 1,025.56 815.87
Deposit with Original Maturity less than 3 months 1,203.59 2.87
Cheques, Drafts on hand 57.95 446.02
Cash on hand 1.96 3.52
2,372.68 2,103.31
 ESSEL MINING & INDUSTRIES LIMITED
STATEMENT OF CASH FLOWS FOR YEAR ENDED 31ST MARCH, 2021
CIN: U51109WB1950PLC018728

Accounting Policy
Cash flows are reported using the indirect method as set out in Ind AS 7 prescribed under the Companies Act (Indian Accounting Standard) Rules,
2015 of the Companies Act, 2013, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or
accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows.
The cash flows from operating, investing and financing activities of the Company are segregated. The Company considers all highly liquid
investments that are readily convertible to known amounts of cash to be cash equivalents.

in Lakhs
Changes in Liabilities arising from Financing Activities
Accrued
Non-Current Current
Particulars Interest but Total
Borrowings Borrowings
not due
Balance as at 31st March, 2019 1,99,316.42 1,19,906.95 3,709.92 3,22,933.29
Cash Flow (Net) (63,856.63) (29,347.07) (23,715.64) (1,16,919.34)
Non-cash changes
Fair Value changes (265.94) - 34.02 (231.92)
Forex Movement 984.72 - - 984.72
Others (Arranger Fees) (82.75) - 82.75 -
Finance Costs - - 22,787.14 22,787.14

Balance as at 31st March, 2020 1,36,095.82 90,559.88 2,898.19 2,29,553.89

Cash Flow (Net) 62,859.30 (90,552.67) (16,694.77) (44,388.14)
Non-cash changes
Fair Value changes (961.59) - 842.59 (119.00)
Forex Movement (935.59) - - (935.59)
Others (Arranger Fees) (250.00) - 250.00 -
Finance Costs - - 15,858.15 15,858.15

Balance as at 31st March, 2021 1,96,807.94 7.21 3,154.16 1,99,969.31

As per our report of even date For and on behalf of the Board

For SINGHI & CO.

Chartered Accountants
Firm Registration Number: 302049E
Sd/-
Tuhin Kumar Mukherjee
Managing Director
DIN - 01163569

Sd/- Sd/- Sd/-

Navindra Kumar Surana Sunil Kumar Daga Giriraj Maheswari
Partner Director Director
Membership No.053816 DIN - 00441579 DIN - 00796252

Sd/- Sd/-
Place: Kolkata Arun Garg Dhananjoy Karmakar
Dated: 29th June, 2021 Chief Financial Officer Company Secretary
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021

1. Corporate information

Essel Mining & Industries Limited (the Company) is domiciled in India and is registered under the provisions of the
Companies Act applicable in India. The registered office of the Company is located at Industry House, 18th Floor,
10, Camac Street, Kolkata- 700017, India. The Company is principally engaged in Iron Ore mining and also
produces Noble Ferro Alloys. The Company has operating energy projects in Wind and Solar Power sectors in
India. The equity shares of the Company are not listed.

2.1 Basis of preparation

Statement of Compliance

These standalone financial statements have been prepared in accordance with the Indian Accounting Standards
(“Ind AS”) as prescribed by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (“the
Act”), read with the Companies (Indian Accounting Standards) Rules, 2015, Companies (Indian Accounting
Standards) Amendment Rule, 2016, other relevant provisions of the Act and other accounting principles generally
accepted in India.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

The Ministry of Corporate Affairs (MCA) has issued certain amendments in existing Accounting Standards during
the year ended 31st March, 2020, which are effective from 24th July, 2020.

 Definition of Material – amendments to Ind AS 1 and Ind AS 8 - Amendments are made to Ind AS 1 -
Presentation of Financial Statements and Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and
Errors, which use a consistent definition of materiality, clarify when information is material and incorporate some
of the guidance in Ind AS 1 about immaterial information.

In particular, the amendments clarify: -

that the reference to obscuring information addresses situations in which the effect is similar to omitting or
misstating that information, and that an entity assesses materiality in the context of the financial statements as a
whole, and

- the meaning of ‘primary users of general purpose financial statements’ to whom those financial statements are
directed, by defining them as ‘existing and potential investors, lenders and other creditors’ that must rely on
general purpose financial statements for much of the financial information they need.

 Definition of a Business – amendments to Ind AS 103 - The amended definition of a business requires an
acquisition to include an input and a substantive process that together significantly contribute to the ability to
create outputs. The definition of the term ‘outputs’ is amended to focus on goods and services provided to
customers, generating investment income and other income, and it excludes returns in the form of lower costs and
other economic benefits.

 COVID-19 related concessions – amendments to Ind AS 116 - Amendments to Ind AS 116 Leases, provides a
practical expedient to apply rent concessions occurring as a direct consequence of the COVID-19 pandemic.
Lessee that makes this election shall account for any change in lease payments resulting from the rent
concession the same way it would account for the change applying this Standard if the change were not a lease
modification.
 Interest Rate Benchmark Reform – amendments to Ind AS 109 and Ind AS 107 - The amendments made to
Ind AS 109 Financial Instruments, and Ind AS 107 Financial Instruments: Disclosures provide certain reliefs in
relation to interest rate benchmark reform. The reliefs relate to hedge accounting and have the effect that the
reforms should not generally cause hedge accounting to terminate. However, any hedge ineffectiveness should
continue to be recorded in the income statement.
 Ind AS 10 (Events after the Reporting Period) - An amendment has been made by adding the disclosure for
any non- adjusting events.
 Ind AS 37 (Provisions, Contingent Liabilities and Contingent Assets) - An accounting of restructuring plans
has been substituted.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021

The amendments listed above did not have any impact on the amounts recognized in prior periods and are not
expected to significantly affect the current and future periods.

The standalone financial statements for the year ended 31 st March, 2021 have been approved by the Directors of the
Company in their meeting held on 29th June, 2021.

The financial statements have been prepared on a historical cost convention, on accrual basis, except for certain
financial assets and liabilities which have been measured at fair value as indicated below:
i) Derivative Financial Instruments measured at fair value
ii) Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial
instruments) ; and
iii) Employee’s Defined Benefit Plan as per actuarial valuation

The standalone financial statements of the Company have been presented in Indian Rupee ( ) which is the
Company’s functional currency. All financial information presented in INR have been rounded off to the nearest two
decimal of ‘Lakhs’, unless otherwise stated.

Use of Estimates and Management Judgements while preparing the standalone financial statements in conformity
with accounting principles generally accepted in India, management is required to make estimates & assumptions
that affects reported amount of Assets & Liabilities and the disclosure of Contingent Liabilities as at the date of
standalone financial statements and the amount of revenue and expenses during the reported period. Actual results
could differ from those estimates. Any revision to such estimates is recognised in the period in which the same is
determined.

2.2 Summary of significant accounting policies

a) Basis of classification of Current and Non-Current

Assets and liabilities in the Balance Sheet have been classified as either current or non–current based upon the
requirements of Schedule III to the Companies Act, 2013.

An asset has been classified as current if (a) it is expected to be realized in, or is intended for sale or consumption
in the Company’s normal operating cycle; or (b) it is held primarily for the purpose of being traded; or (c) it is
expected to be realized within twelve months after the reporting date; or (d) it is cash or cash equivalent unless it is
restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date. All
other assets have been classified as non–current.
A liability has been classified as current when (a) it is expected to be settled in the Company’s normal operating
cycle; or (b) it is held primarily for the purpose of being traded; or (c) it is due to be settled within twelve months
after the reporting date; or (d) the Company does not have an unconditional right to defer settlement of the liability
for at least twelve months after the reporting date. All other liabilities have been classified as non–current.
An operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash
equivalents. The Company has considered its operating cycle to be 12 months.

b) Foreign currency transactions and translation

Transactions and Balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of
the transactions. At the year-end, monetary assets and liabilities denominated in foreign currencies are restated at
the year - end exchange rates. The exchange differences arising from settlement of foreign currency transactions
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021

and from the year-end restatement are recognised in profit and loss.
All other foreign exchange gains and losses are presented in the Statement of Profit and Loss on a net basis
within ‘Other Income’/‘Other Expenses’. Non-monetary items that are measured at fair value in a foreign currency
are translated using the exchange rates at the date when the fair value was determined. Translation differences
on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.

c) Derivative Instruments:

The Company uses derivative financial instruments, such as forward contracts, interest rate swaps, etc. to hedge
its foreign currency risks and interest rate risks and are carried as financial assets when the fair value is positive
and as financial liabilities when the fair value is negative. The purchase contracts that meet the definition of a
derivative under Ind AS 109 are recognised in the statement of profit and loss. Any gains or losses arising from
changes in the fair value of derivatives are taken directly to profit or loss, except for the effective portion of cash
flow hedges, which is recognised in OCI and later reclassified to profit or loss when the hedge item affects profit or
loss or treated as basis adjustment if a hedged forecast transaction subsequently results in the recognition of a
non-financial asset or non-financial liability.

d) Fair value measurement

The Company measures certain financial instruments at fair value at each reporting date. Fair value is the price
that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place either:
 In the principal market for the asset or liability, or
 In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or
a liability is measured using the assumptions that market participants would use when pricing the asset or liability,
assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as
explained above.

e) Revenue recognition
The Company derives revenue principally from sale of Iron Ore, Noble Ferro Alloys, Wind & Solar Energy. The
Company recognizes revenue when it satisfies a performance obligation in accordance with the provisions of
contract with the customer. This is achieved when control of the product has been transferred to the customer,
which is generally determined when title, ownership, risk of obsolescence and loss pass to the customer and the
Company has the present right to payment, all of which occurs at a point in time upon shipment or delivery of the
product. The Company considers shipping and handling activities as costs to fulfil the promise to transfer the
related products and the customer payments for shipping and handling costs are recorded as a component of
revenue. In certain customer contracts, shipping and handling services are treated as a distinct separate
performance obligation and the Company recognises revenue for such services when the performance obligation
is completed.

The Company considers the terms of the contract in determining the transaction price. The transaction price is
based upon the amount the entity expects to be entitled to in exchange for transferring of promised goods and
services to the customer after deducting incentive programs, included but not limited to discounts, volume
rebates etc.

For incentives/discount offered to customers, the Company makes estimates related to customer performance
and sales volume to determine the total amounts earned and to be recorded as deductions. The estimate is
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021

made in such a manner, which ensures that it is highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur. The actual amounts may differ from these estimates and are
accounted for prospectively. No element of significant financing is deemed present as the sales are made with a
credit term, which is consistent with market practice.

Export Incentives
Export incentives are recognised when there is reasonable assurance that the Company will comply with the
conditions and the incentive will be received.

Interest income
For all debt instruments measured at amortised cost, interest income is recorded using the effective interest rate
method (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the
expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of
the financial asset or to the amortised cost of a financial liability. When calculating the effective interest rate, the
Company estimates the expected cash flows by considering all the contractual terms of the financial instrument
but does not consider the expected credit losses.

Dividends
Revenue is recognised when the Company’s right to receive the payment is established, which is generally when
shareholders approve the dividend.

Others
Income from Certified Emission Reduction (CER), insurance and other claims etc. is recognised when no
uncertainties exist as regard their realization or subsequent utilisation.

f) Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received and all
attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income
on a systematic basis over the periods that the related costs, for which it is intended to compensate, are
expensed, whereas, grants whose primary condition is that the Company should purchase, construct or otherwise
acquire a non-current asset, are recognised in the balance sheet by setting up the grant as a deferred income.

g) Taxes
Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to
the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted, at the reporting date.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in
other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying
transaction either in OCI or directly in equity. 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 liability method on temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes at the reporting date.
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.
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
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021

utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the
extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

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 relating to items recognised outside profit or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying
transaction either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.

Minimum Alternate Tax

Minimum Alternate Tax (MAT) is recognized as an asset only when and to the extent there is convincing evidence
that the Company will pay normal income tax during the specified period. In the year in which the MAT credit
becomes eligible to be recognized as an asset, the said asset is created by way of credit to the Statement of Profit
and Loss and included in deferred tax assets. The Company reviews the same at each Balance Sheet date and
writes down the carrying amount of MAT entitlement to the extent there is no longer convincing evidence to the
effect that the Company will pay normal income tax during the specified period.

h) Property, plant and equipment

Property, Plant and Equipment is stated at cost, net of accumulated depreciation and accumulated impairment
losses, if any. Cost comprises of purchase price and any attributable cost of bringing the asset to its working
condition for its intended use. When significant parts of plant and equipment are required to be replaced at
intervals, the Company depreciates them separately based on their specific useful lives.
Under the previous GAAP (Indian GAAP), property, plant and equipment were carried in the balance sheet on
cost. The Company has elected to regard those values as deemed cost at the date of transition.
An item of property, plant and equipment and any significant part initially recognised is derecognised upon
disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on
derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) is included in the income statement when the asset is derecognised.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at
each financial year end and adjusted prospectively, if appropriate.
The Company identifies and determines cost of asset significant to the total cost of the asset having useful life
that is materially different from that of the remaining life.
i) Depreciation and Amortization

The classification of plant and machinery into continuous and non-continuous process is done as per technical
certification and depreciation thereon is provided accordingly.
The Company, based on technical assessment made by technical expert and management estimate, depreciates
certain items of building, plant and equipment over estimated useful lives which are different from the useful life
prescribed in Schedule II to the Companies Act, 2013. The management believes that these estimated useful
lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.
Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as mentioned
below:

Class of Assets Useful Lives

Factory Buildings 3 to 60 years
Non - Factory Buildings 3 to 60 years
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021

Railway Siding 5 years

Plant & Machinery 5 to 30 years
Furniture & Fixtures 5 to 10 years
Computers (included under Furniture & Fixtures) 1 to 6 years
Office Equipment 3 to 10 years
Vehicles 8 to 10 years

Leasehold Properties are depreciated over the primary period of lease or their respective useful lives, whichever
is shorter.

Depreciation on property, plant and equipment added/disposed of during the year is provided on prorata basis
with reference to the date of addition/disposal.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at
each financial year end and adjusted prospectively, if appropriate.

j) Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition,
intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses.
Intangible assets with finite lives are amortised over the useful economic life 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 unless such expenditure forms part of carrying value of another
asset.
Gains or losses arising from de-recognition 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 or loss
when the asset is derecognised.

Under the previous GAAP (Indian GAAP), Intangible assets were carried in the balance sheet on cost. The
Company has elected to regard those values as deemed cost at the date of transition.

k) Borrowing costs
Borrowing costs (including other ancillary borrowing cost) 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 capitalised 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 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.

l) Leases
a) The Company as lessor
Leases for which the Company is a lessor are classified as finance or operating leases. Whenever the terms of
the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as
finance lease. All other leases are classified as operating leases.
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease.
Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of
the leased asset and recognised on a straight-line basis over the lease term.

b) The Company as lessee

The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021

recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which
it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases
of low value assets. For these leases, the Company recognises the lease payments as an operating expense on a
straight-line basis over the lease term, unless another systematic basis is more representative of the time pattern
in which economic benefits from the leased assets are consumed. Contingent and variable rentals are recognized
as expense in the periods in which they are incurred.

c) Lease Liability
The lease payments that are not paid at the commencement date are discounted using the interest rate implicit in
the lease. If that rate cannot be readily determined, which is generally the case for leases in the Company, the
lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow
the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment
with similar terms, security and conditions.

Lease payments included in the measurement of the lease liability comprise:

• Fixed lease payments (including in-substance fixed payments) payable during the lease term and under
reasonably certain extension options, less any lease incentives;
• Variable lease payments that depend on an index or rate, initially measured using the index or rate at the
commencement date;
• The amount expected to be payable by the lessee under residual value guarantees;
• The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and
• Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate
the lease.

The lease liability is presented as a separate line in the Balance Sheet.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease
liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments
made.

The Company re-measures the lease liability (and makes a corresponding adjustment to the related right-of-use
asset) whenever:
• The lease term has changed or there is a change in the assessment of exercise of a purchase option, in which
case the lease liability is re-measured by discounting the revised lease payments using a revised discount rate.
• A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case
the lease liability is re-measured by discounting the revised lease payments using a revised discount rate.

d) Right of Use (ROU) Assets

The ROU assets comprise the initial measurement of the corresponding lease liability, lease payments made at
or before the commencement day and any initial direct costs. They are subsequently measured at cost less
accumulated depreciation and impairment losses.

Whenever the Company incurs an obligation for costs to dismantle and remove a leased asset, restore the site
on which it is located or restore the underlying asset to the condition required by the terms and conditions of the
lease, a provision is recognised and measured under Ind AS 37- Provisions, Contingent Liabilities and
Contingent Assets. The costs are included in the related right-of-use asset.

ROU assets are depreciated over the shorter period of the lease term and useful life of the underlying asset. If
the Company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the
underlying asset’s useful life. The depreciation starts at the commencement date of the lease.

The ROU assets are not presented as a separate line in the Balance Sheet but presented below similar owned
assets as a separate line in the PPE note under “Notes forming part of the Financial Statement”.

The Company applies Ind AS 36- Impairment of Assets to determine whether a right-of-use asset is impaired and
accounts for any identified impairment loss as per its accounting policy on ‘property, plant and equipment’.

As a practical expedient, Ind AS 116 permits a lessee not to separate non-lease components when bifurcation of
the payments is not available between the two components, and instead account for any lease and associated
non-lease components as a single arrangement. The Company has used this practical expedient.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021

Extension and termination options are included in many of the leases. In determining the lease term the
management considers all facts and circumstances that create an economic incentive to exercise an extension
option, or not exercise a termination option.

m) Inventories

a) Raw Materials, stores and spares are valued at lower of cost and net realizable value. However, these items
are considered to be realizable at cost if the finished products, in which they will be used, are expected to be
sold at or above cost. Cost includes cost of purchase and other costs incurred in bringing the inventories to
their present location and condition. Cost is determined on first in, first out basis/transaction moving
weightage average method.
b) Work-in-progress and finished goods are valued at lower of cost and net realizable value. Cost includes cost
of direct materials and labour and a proportion of manufacturing overheads based on the normal operating
capacity. Cost of finished goods includes excise duty. Cost is determined on annual weighted average basis.
c) 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.

n) Impairment of non-financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset 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
Company‘s assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is
considered as impaired and is written down to its recoverable amount.
Impairment losses are recognised in the statement of profit and loss.

o) Provisions

General
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects
some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is
recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a
provision is presented in the statement of profit and loss net of any reimbursement.
Liability towards site restoration costs in respect of land used for mining have been recognized based on land
area used for mining but yet to be restored at the year end and quantum of obligations imposed by applicable
regulations. Site restoration is carried out side by side with mining activities and related costs are recognized in
these financial statements but not separately identifiable.
If the effect of the time value of money is material, provisions are discounted at a current pre-tax rate that reflects
the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of
time is recognised as a finance cost.

p) Retirement and other employee benefits

a) Retirement benefit in the form of provident fund is a defined contribution scheme. The company recognizes
contribution payable to the provident fund scheme as an expense, when an employee renders the related
service. If the contribution payable to the scheme for service received before the balance sheet date exceeds
the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the
contribution already paid. The Company has no obligation, other than the contribution payable to the
provident fund.

b) Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation on
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021

projected unit credit method, at the end of each financial year. Remeasurements, comprising of actuarial
gains and losses are recognised immediately in the balance sheet with a corresponding debit or credit to
retained earnings through OCI in the period in which they occur. Such remeasurements are not reclassified
to Statement of Profit and Loss in subsequent periods. Net interest is calculated by applying the discount rate
to the net defined benefit liability or asset. The Company recognises the following changes in the net defined
benefit obligation as an expense in the Statement of Profit and Loss:
(i) Service costs comprising current service costs, past-service costs, gains and losses on curtailments and
non-routine settlements; and
(ii) Net interest expense or income.

The current and non-current bifurcation is done as per Actuarial report.

c) Short term compensated absences are provided for based on estimates. Long term compensated absences
are provided for based on actuarial valuation, as per projected unit credit method.

q) 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.

(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 or loss, transaction costs that are attributable to the acquisition of the financial asset.

Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in three categories:
(a) Debt instruments at amortised cost
(b) Debt instruments, derivatives, equity instruments and mutual fund investments at fair value through profit
or loss (FVTPL)
(c) Equity instruments measured at fair value through other comprehensive income (FVTOCI)

(i) Debt instruments at amortised cost

A ‘debt instrument’ is measured at the amortised cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and
b) 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 interest
income in the profit or loss.

(ii) Debt instruments, derivatives, equity instruments and mutual fund investments at fair value through
profit or loss (FVTPL)
All derivatives and mutual fund investments in scope of Ind AS 109 are measured at fair value. Equity
instruments which are held for trading are classified as at FVTPL. Equity instruments included within the FVTPL
category are measured at fair value with all changes recognized in the P&L.
(iii) Equity instruments measured at fair value through other comprehensive income (FVTOCI)
For all equity instruments other than the ones classified as at FVTPL, 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.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to
P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.
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 balance sheet) when the rights to receive cash flows from the asset
have expired.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and
recognition of impairment loss on the Trade receivables or any contractual right to receive cash or another
financial asset that result from transactions that are within the scope of Ind AS 11 and Ind AS 18. ECL is the
difference between all contractual cash flows that are due to the Company in accordance with the contract and all
the cash flows that the entity expects to receive (i.e.; all cash shortfalls), discounted at the original EIR.

(B) Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans
and borrowings, financial guarantee contract payables, or derivative instruments.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net
of directly attributable transaction costs.

Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:

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 on liabilities held for trading are recognised in the statement of profit or loss.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the
initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair
value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not
subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All
other changes in fair value of such liability are recognised in the statement of profit or loss. The Company has not
designated any financial liability as at fair value through profit and loss.
Loans and borrowings
This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are
subsequently measured at amortised cost using the 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 as finance costs in the statement of profit and loss.
Financial guarantee contracts
Financial guarantee contracts are recognized as a financial liability at the time the guarantee is issued. The liability is
initially measured at fair value and subsequently at the higher of the amount determined in accordance with Ind AS
37 and the amount initially recognized less cumulative amortisation, where appropriate.
The fair value of financial guarantees is determined as the present value of the difference in net cash flows between
the contractual payments under the debt instrument and the payments that would be required without the guarantee,
or the estimated amount that would be payable to a third party for assuming the obligations.
Where guarantees in relation to loans or other payables of subsidiaries, associates or other body corporates are
provided for no compensation, the fair values are accounted for as contribution and recognized as part of the cost of
the investment.
Derivatives financial instruments
Initial recognition and subsequent measurement
The Company uses derivative financial instruments, such as forward currency contracts and interest rate swaps, to
hedge its foreign currency risks and interest rate risks respectively. Derivative financial instruments are re-measured
at fair value at each balance sheet. Derivatives are carried as financial assets when the fair value is positive and as
financial liabilities when the fair value is negative.
Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or 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 or loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to
realise the assets and settle the liabilities simultaneously.
r) Segment Reporting

Identification of Segments
The Company’s operating businesses are organized and managed separately according to the nature of products
and services provided, with each segment representing a strategic business unit that offers different products and
serves different markets. The analysis of geographical segments is based on the areas in which the customers of the
Company are located.

Allocation of Common cost

Common allocable costs are allocated to each segment on case to case basis applying the ratio, appropriate to each
relevant case. Revenues and Expenses, which relate to the enterprise as a whole and which are not allocable to any
segment on a reasonable basis, have been included under the head "Unallocated - Common".
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021

Segment accounting policies

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and
presenting the financial statements of the Company as a whole.
Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise 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.

s) Earnings per share

Earnings per share is calculated by dividing the net profit or loss before OCI for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of
calculating diluted earnings per share, the net profit or loss before OCI for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of
all dilutive potential equity shares.

t) Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present
obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized
because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its
existence in the financial statements.

u) Cash dividend to equity holders

The Company recognises a liability to make cash distributions to equity holders when the distribution is authorised
and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is
authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.
The Company recognises a liability to make cash distributions to equity holders when the distribution is authorised
and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is
authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.
v) New Standards / Amendments to Existing Standard/ New Pronouncement issued but not yet effective upto the
date of issuance of the Company’s Financial Statement :
(A) On 24th March, 2021, the Ministry of Corporate Affairs ("MCA") through notification amended Schedule III of the
Companies Act, 2013. The amendments revise Division I, II and III of Schedule III and are applicable from 1st
April, 2021. Key amendments relating to Division II which relate to companies whose financial statements are
required to comply with Companies (Indian Accounting Standards) Rules 2015 are:
Rounding Off : For the purpose of rounding off the figures appearing in the Financial Statements for financial
year ending 31st March, 2022 the total income of the Company shall be considered instead of Turnover.

Additional Disclosure in Notes to Balance Sheet:

 Shareholding of Promoter: The note on Share Capital in the Financial Statements shall mention details
of the Shareholding of the Promotes along with changes, if any, during the Financial Year.
 Lease liabilities should be separately disclosed under the head ‘financial liabilities’, duly distinguished as
current or non-current.
 Current maturities of Long-term borrowings shall be disclosed separately under the heading ShortTerm
Borrowing.

 Security Deposits to be shown under the head of Other Non-Current Assets instead of Long term Loan &
Advances.
 Certain additional disclosures in the statement of changes in equity such as changes in equity share
capital due to prior period errors and restated balances at the beginning of the current reporting period.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021

 Specific disclosure for title deeds of Immovable Property not held in name of the Company and
disclosure on revaluation of Assets
 Specified format for ageing schedule of trade receivables, trade payables, capital work-in-progress and
intangible asset under development.
 Specific disclosure under ‘additional regulatory requirement’ such as compliance with approved schemes
of arrangements, compliance with number of layers of companies, title deeds of immovable property not
held in name of company, loans and advances to promoters, directors, key managerial personnel (KMP)
and related parties, details of benami property held etc.
 If a company has not used funds for the specific purpose for which it was borrowed from banks and
financial institutions, then disclosure of details of where it has been used.
 Ratios-Following Ratios to be disclosed: - (a) Current Ratio, (b) Debt-Equity Ratio, (c) Debt Service
Coverage Ratio, (d) Return on Equity Ratio, (e) Inventory turnover ratio, (f) Trade Receivables turnover
ratio, (g) Trade payables turnover ratio, (h) Net capital turnover ratio, (i) Net profit ratio, (j) Return on
Capital employed, (k) Return on investment
 Specific Disclosure Borrowing & Wilful Defaulter

Additional Disclosure in Notes to Profit & Loss Account :

 Additional disclosures relating to Corporate Social Responsibility (CSR), undisclosed income and crypto
or virtual currency specified under the head ‘additional information’ in the notes forming part of the
standalone financial statements.

(B) The Ministry of Corporate Affairs (MCA) vide Notification dated 18th June, 2021 has issued new Companies
(Indian Accounting Standard) Amendment Rules, 2021 in consultation with the National Financial Reporting
Authority (NFRA).

The notification states that these rules shall be applicable with immediate effect from the date of the
notification. Consequently amendments are effective for the financial year ended 31st March, 2022.

Major amendments notified in the Companies (Ind AS) Amendment Rules, 2021 are provided below:-

(a) Ind AS 116 - Leases – The amendments extend the benefits of the COVID 19 related rent concession that
were introduced last year (which allowed lessees to recognize COVID 19 related rent concessions as income
rather than as lease modification) from 30th June, 2021 to 30th June, 2022.

(b) Ind AS 109 - Financial Instruments – The amendment provides a practical expedient for assessment of
contractual cash flow test, which is one of the criteria for being eligible to measure a financial asset at
amortized cost, for the changes in the financial assets that may arise as a result of Interest Rate Benchmark
Reform along. An additional temporary exception from applying hedge accounting is also added for Interest
Rate Benchmark Reform.
(c) Ind AS 101 - Presentation of Financial Statements – The amendment substitutes the item (d) mentioned in
paragraph BI as ‘Classification and measurement of financial instruments’. The term ‘financial asset’ has
been replaced with ‘financial instruments’.
(d) Ind AS 102 - Share-Based Payment – The amendments to this standard are made in reference to the
Conceptual Framework of Financial Reporting under Ind AS in terms of defining the term ‘Equity Instrument’
which shall be applicable for the annual reporting periods beginning on or after 1st April, 2021.
(e) Ind AS 103 -Business Combinations – The amendment substitutes the definition of ‘assets’ and ‘liabilities’ in
accordance with the definition given in the framework for the Preparation and Presentation of Financial
Statements in accordance with Ind AS for qualifying the recognition criteria as per acquisition method.
(f) Ind AS 104 -Insurance Contracts – The amendment covers the insertion of certain paragraphs in the
standard in order to maintain consistency with IFRS 4 and also incorporates the guidance on accounting
treatment for amendments due to Interest Rate Benchmark Reform.
(g) Ind AS 105 -Non-current assets held for sale and discontinued operations – The amendment substitutes
the definition of ― “fair value less costs to sell” with “fair value less costs of disposal”
(h) Ind AS 106 - Exploration for and evaluation of mineral resources – The amendment has been made in
reference to the Conceptual Framework for Financial Reporting under Indian Accounting Standards in respect
of expenditures that shall not be recognized as exploration and evaluation assets.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021

(i) Ind AS 107 - Financial Instruments: Recognition, Presentation and Disclosure – The amendment clarifies
the certain additional disclosures to be made on account of Interest Rate Benchmark Reform like
(i) the nature and extent of risks to which the entity is exposed arising from financial instruments subject to
interest rate benchmark reform;
(ii) the entity‘s progress in completing the transition to alternative benchmark rates, and how the entity is
managing the transition.
(j) Ind AS 111 -Joint Arrangements – In order to maintain consistency with the amendments made in Ind AS
103, respective changes have been made in Ind AS 111.
(k) Ind AS 114 - Regulatory Deferral Accounts – The amendment clarifies that an entity may only change its
accounting policies for the recognition, measurement, and impairment & derecognition of regulatory deferral
account balances if the change makes the financial statements more relevant to the economic decision-
making needs of users and no less reliable.
(l) Ind AS 115 -- Revenue from Contracts with Customers – Certain amendments have been made in order to
maintain consistency with number of paragraphs of IFRS 15.
(m) Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors – In order to maintain
consistency with the amendments made in Ind AS 114 and to substitute the word ‘Framework’ with the
‘Conceptual Framework of Financial Reporting in Ind AS’, respective changes have been made in the
standard.
(n) Ind AS 16 - Property, Plant and Equipment –The amendment has been made by substituting the words
“Recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use” with
“Recoverable amount is the higher of an asset’s fair value less costs of disposal and its value in use”.
(o) Ind AS 34 - Interim Financial Reporting –The amendments to this standard are made in reference to the
conceptual framework of Financial Reporting in Ind AS.
(p) Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets – The amendment substitutes the
definition of the term ‘Liability’ as provided in the Conceptual Framework for Financial Reporting under Indian
Accounting Standards.
(q) Ind AS 38 - Intangible Assets – The amendment substitutes the definition of the term ‘Asset’ as provided in
the Conceptual Framework for Financial Reporting under Indian Accounting Standards.

The amendments are extensive and the Company will evaluate the same to give effect to them as required by law.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

3(i). Property, Plant and Equipment in Lakhs

Right of Use
Freehold Land Plant & Furniture & Office
Particulars Leasehold Land Road Buildings (b) Railway Sidings Vehicles Assets - Lease Total (c)
(a) Machinery Fixtures Equipment
hold Land
Cost
As at 1st April, 2019 2,744.56 314.50 - 11,204.27 639.49 60,652.69 1,131.92 762.49 733.79 - 78,183.71
Add: Additions - - - 173.73 3,535.61 925.85 14.68 80.32 197.95 - 4,928.14
Less: Disposal - - - - - 114.54 4.79 4.35 114.50 - 238.18
Less: Transfer/ reclassification - (314.50) - - - - - - - 269.25 (45.25)
As at 31st March, 2020 2,744.56 - - 11,378.00 4,175.10 61,464.00 1,141.81 838.46 817.24 269.25 82,828.42
Add: Additions - - 52.26 2.54 - 873.78 6.48 67.35 101.88 10.08 1,114.37
Less: Disposal - - - - - 4,111.32 520.65 491.27 94.62 - 5,217.86
As at 31st March, 2021 2,744.56 - 52.26 11,380.54 4,175.10 58,226.46 627.64 414.54 824.50 279.33 78,724.93
Depreciation & Impairment
As at 1st April, 2019 - 45.25 - 4,479.89 512.59 23,478.40 793.75 493.88 206.05 - 30,009.81
Add: Charge for the year - - - 1,164.61 1,546.33 2,679.89 173.25 40.26 101.62 10.73 5,716.69
Less: Disposal - - - - - 107.16 3.90 4.13 61.99 - 177.18
Less: Transfer/ reclassification - (45.25) - - - - - - - (45.25)
As at 31st March, 2020 - - - 5,644.50 2,058.92 26,051.13 963.10 530.01 245.68 10.73 35,504.07
Add: Charge for the year - - 9.15 450.04 2,116.18 2,111.13 79.02 47.68 102.81 11.53 4,927.54
Less: Disposal - - - - - 3,450.61 522.40 307.20 51.56 - 4,331.77
As at 31st March, 2021 - - 9.15 6,094.54 4,175.10 24,711.65 519.72 270.49 296.93 22.26 36,099.84
Net Block
As at 31st March, 2020 2,744.56 - - 5,733.50 2,116.18 35,412.87 178.71 308.45 571.56 258.52 47,324.35
As at 31st March, 2021 2,744.56 - 43.11 5,286.00 - 33,514.81 107.92 144.05 527.57 257.07 42,625.09

Notes :

(a) Including 103.46 Lakhs (31st March, 2020 : 103.46 Lakhs) which is yet to be registered in the Company's name.
(b) Including 38.83 Lakhs (31st March, 2020 : 38.83 Lakhs) towards building on leasehold land.
(c) Includes following assets (Company's share) which are held under co-ownership with other Companies :

Particulars Deemed Cost Net Block

As at 31st As at 31st March, As at 31st March, As at 31st March,
March, 2021 2020 2021 2020
Freehold land 207.23 207.23 207.23 207.23
Buildings 217.13 217.13 192.63 196.71
Plant & Machinery 15.31 15.31 1.74 1.74
Furniture, Fixtures & Fittings 13.93 13.93 4.60 6.40
Office Equipment 11.23 11.23 1.53 2.64

(d) For charge created on Property, Plant and Equipment of the Company towards borrowings (Refer Note 19)

ESSEL MINING & INDUSTRIES LIMITED

Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

3(ii). Capital Work-in-Progress in Lakhs

Pre-operative
Particulars Buildings Railway Sidings Plant & Machinery Expenses, pending Total
allocation

As at 1st April, 2019 43.23 3,014.91 399.64 - 3,457.78

Add: Additions - - 308.60 139.48 448.08
Less: Transfer to Property, Plant & Equipment ^ - 3,014.91 95.19 - 3,110.10
Less: Deductions/ adjustments 43.23 - 179.00 - 222.23
As at 31st March, 2020 - - 434.05 139.48 573.53
Add: Additions - - 148.47 667.54 816.01
Less: Transfer to Property, Plant & Equipment ^ - - 439.03 - 439.03
As at 31st March, 2021 - - 143.49 807.02 950.51

^ Represents amount allocated to respective Property, Plant & Equipment during the year.

4. Intangible Assets in Lakhs

Mining Lease &

Particulars Software Total
Mining Rights

Cost
As at 1st April, 2019 24,049.03 84.58 24,133.61
Add: Additions 639.80 2.91 642.71
As at 31st March, 2020 24,688.83 87.49 24,776.32
Add: Additions - - -
As at 31st March, 2021 24,688.83 87.49 24,776.32
Amortisation
As at 1st April, 2019 5,652.20 51.47 5,703.67
Add: Charge for the year 17,950.16 6.19 17,956.35
As at 31st March, 2020 23,602.36 57.66 23,660.02
Add: Charge for the year 788.59 4.66 793.25
As at 31st March, 2021 24,390.95 62.32 24,453.27

Net Block
As at 31st March, 2020 1,086.47 29.83 1,116.30
As at 31st March, 2021 297.88 25.17 323.05
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs
5. Non-current Investments Face Value As at As at
31st March, 2021 31st March, 2020
(i) Investments in Subsidiaries

Investments at Cost / Deemed Cost

A Unquoted Equity Shares (Fully paid)

9,54,60,000 (31st March, 2020: 9,54,60,000) Equity Shares of 10 9,645.61 9,645.61
Bhubaneswari Coal Mining Ltd.
[Includes 99.61 Lakhs (31st March, 2020: 99.61 Lakhs) towards fair
value of Financial Guarantees]
1,70,00,000 (31st March, 2020: 1,70,00,000) Equity Shares of Rajmahal 10 2,288.68 2,357.06
Coal Mining Ltd.
[Includes 588.68 akhs (31st March, 2020: 657.06 Lakhs) towards fair
value of Financial Guarantees]
50,000 (31st March, 2020: 50,000) Equity Shares of Electrotherm 10 5.00 5.00
Renewables Pvt. Ltd.
1,72,79,888 (31st March, 2020: 1,72,79,888) Equity Shares of IGH 10 12,92,297.20 12,92,297.20
Holdings Pvt. Ltd.
2,79,00,000 (31st March, 2020: 2,79,00,000) Equity Shares of Pro Minerals 10 3,485.43 4,879.60
Pvt. Ltd.
[Includes 695.43 Lakhs (31st March, 2020: 2,089.60 Lakhs) towards
fair value of Financial Guarantees]
6,10,000 (31st March, 2020: Nil) Equity Shares of EMIL Mines and Mineral 10 73.94 -
Resources Ltd.
[Includes 12.94 Lakhs (31st March, 2020: Nil) towards fair value of
Financial Guarantees]

B Unquoted Preference Shares (Fully paid)

3,00,00,000 (31st March, 2020: 3,00,00,000) 1% Non-Cumulative 100 60,000.00 60,000.00
Compulsorily Convertible Preference Shares of IGH Holdings Pvt. Ltd.
C Non Convertible Debentures (at Amortised Cost)
1,250 (31st March, 2020: 900) Unsecured Unlisted Redeemable Non- 10,00,000 14,166.53 9,546.39
Convertible Debentures of Pro Minerals Pvt. Ltd.
875 (31st March, 2020: Nil) Unsecured Unlisted Redeemable Non- 10,00,000 8,847.04 -
Convertible Debentures of EMIL Mines and Mineral Ltd.

13,90,809.43 13,78,730.86
(ii) Investments in Others

Investments at fair value through OCI (FVTOCI)

Unquoted Equity Shares (Fully paid)

7,000 (31st March, 2020: 7,000) Equity Shares of Birla Management 10 740.99 615.43
Centre Services Ltd.
3,00,00,000 (31st March, 2020: 3,00,00,000) Equity Shares of Haridaspur 10 3,000.00 3,000.00
Paradeep Railway Co. Ltd.
7,200 (31st March, 2020: 7,200) Equity Shares of Keonjhar Infrastructure 10 0.72 0.72
Development Company Ltd.

Investments at fair value through Profit & Loss (FVTPL)

A Quoted Equity Shares (Fully paid)

85,730 (31st March, 2020: 85,730) Equity Shares of ECE Industries Ltd. 10 289.57 198.81

B Unquoted Preference Shares (Fully paid)

55,00,000 (31st March, 2020: 55,00,000) 6% Cumulative Preference 10 173.89 142.34
Shares of Keonjhar Infrastructure Development Co. Ltd.
Investments at Amortised Cost

Government Securities
In Others
6.17% Govt. of India Loan, 2023 1.00 1.00
National Savings Certificate 0.30 0.30

4,206.47 3,958.60

Total Investments 13,95,015.90 13,82,689.46

Aggregate value of quoted investments 289.57 198.81

Aggregate value of unquoted investments 13,94,726.33 13,82,490.65
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs

6. Non-current Loans As at As at
31st March, 2021 31st March, 2020

Other Loans
- Loans to Employees
- Considered good - Unsecured 3.45 2.75
- Credit impaired - -
- Which have significant increase in Credit Risk - -

3.45 2.75

7. Other Non-current Financial Assets

At Amortised Cost
(Unsecured, considered good, unless stated otherwise)

Bank deposits with original maturity for more than 12 months * 8.15 8.15
Security Deposits 3,659.68 3,611.87
Derivatives not designated as hedges
Assets on Cross currency interest rate Swap 1,478.87 2,414.46
Claims & Refunds Refundable - 78.60
Finance Lease Receivable 4,262.59 4,331.89
Interest Accrued on:
- Fixed Deposits 4.72 4.33
9,414.01 10,449.30

* Receipts lying with mining authorities. These represent deposits towards earmarked accounts.

8. Other Non-current Assets

(Unsecured, considered good, unless stated otherwise)

Capital Advances 586.75 552.07

Advances recoverable in cash or in kind or for value to be received
Considered good 0.68 0.68
Doubtful 67.16 67.16
67.84 67.84
Less: Provision for Doubtful Advances 67.16 67.16
0.68 0.68

587.43 552.75

9. Inventories
(At lower of cost and net realisable value unless stated otherwise)

Raw Materials 307.07 190.19

Work-in-Progress 599.97 961.71
Finished Goods 7,017.55 17,747.24
Stores & Spare Parts 619.82 772.97
8,544.41 19,672.11

Provision against slow moving & non-moving inventory of stores and spares as on 31st March, 2021 is 621.43 Lakhs ( Previous year ended 31st
March, 2020 : 1,136.13 Lakhs). Impact of provision against slow moving & non-moving has been adjusted with carrying value of inventory as on 31st
March, 2021 & 31st March, 2020 respectively. Reversal of provision during the year against slow moving & non-moving inventory of stores and spares is
amounting to 514.70 Lakhs ( Previous year ended 31st March, 2020 : 78.85 Lakhs ) has been adjusted with the consumption.

Inventories are hypothecated against the borrowings obtained by the Company as referred in Note 23.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs
Face Value As at As at
31st March, 2021 31st March, 2020

10. Current Investments

Investments at fair value through Profit & Loss (FVTPL)

Mutual Funds
3,01,685 (31st March, 2020: Nil) ABSL Liquid Fund Direct Growth 1,000 1,000.19 -
4,22,419 (31st March, 2020: Nil) ABSL Overnight Fund Direct Growth 100 4,701.25 -
13,40,410 (31st March, 2020: Nil) ABSL Savings Fund Direct Growth 100 5,721.36 -
7,40,832 (31st March, 2020: Nil) ABSL Floating Rate Fund Direct Growth 100 2,005.31 -

5,65,898 (31st March, 2020: Nil) ABSL Floating Rate Fund Regular Growth 10 1,504.25 -

19,04,564 (31st March, 2020: Nil) ABSL Money Manager Fund Direct 100 5,469.36 -
Growth
84,283 (31st March, 2020: Nil) DSP Liquidity Fund Direct Growth 1,000 2,478.89 -
32,561 (31st March, 2020: Nil) Kotak Liquid Fund Direct Growth 1,000 1,354.22 -
20,144 (31st March, 2020: Nil) IDFC Cash Fund Direct Growth 1,000 500.78 -
82,603 (31st March, 2020: Nil) LIC Mutual Fund Liquid Fund Direct Growth 1,000 3,086.78 -

26,932 (31st March, 2020: Nil) L&T Liquid Fund Direct Growth 1,000 759.20 -
1,64,342 (31st March, 2020: Nil) ICICI Pru Liquid Fund Direct Growth 100 500.81 -
66,983 (31st March, 2020: Nil) Nippon India Liquid Fund Direct Growth 1,000 3,370.98 -

32,453.38 -

11. Current Loans

At Amortised Cost

Loans to Related Parties

- Inter-corporate Deposits to Subsidiary companies (Interest bearing)
- Considered good - Unsecured 1,72,190.00 5,585.00
- Which have significant increase in Credit Risk - -
- Credit impaired - -
1,72,190.00 5,585.00

Other Loans
- Loans to others
- Considered good - Unsecured 166.50 215.00
- Which have significant increase in Credit Risk - -
- Credit impaired - -

166.50 215.00
- Inter Corporate Deposits
- Considered good - Unsecured - -
- Which have significant increase in Credit Risk - -
- Credit impaired 7,000.00 7,000.00
7,000.00 7,000.00
Less - Provision 7,000.00 7,000.00
- -
- Loans to Employees
- Considered good - Unsecured 2.62 14.65

1,72,359.12 5,814.65

12. Trade Receivables

- Considered good - Secured - -

- Considered good - Unsecured 29,583.83 41,555.13
- Which have significant increase in Credit Risk - -
- Credit impaired - -
29,583.83 41,555.13
Provision for Doubtful Debts - -
29,583.83 41,555.13

a. Trade Receivables are non-interest bearing and generally on terms of 0 to 90 days.

b. Trade Receivables are hypothecated against the borrowings obtained by the Company as referred in Note 23.
c. For ageing analysis of Trade Receivable, Refer Note 60 E.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

13. Cash and Bank Balances in Lakhs

13(i). Cash and Cash Equivalents As at As at

31st March, 2021 31st March, 2020
Balances with Banks:
- On Current Accounts 83.62 835.03
- On Cash credit account 1,025.56 815.87
Deposit with Original Maturity less than 3 months 1,203.59 2.87
Cheques, Drafts on hand 57.95 446.02
Cash on hand 1.96 3.52
2,372.68 2,103.31

13(ii). Other Bank Balances :

Deposit with Original Maturity for more than 3 months but not more than 12 17,987.00 -
months
17,987.00 -

14. Other Current Financial Assets

(Unsecured, considered good, unless stated otherwise)
Financial Assets at fair value through Profit or Loss

Financial assets at amortised cost

Security Deposits 42.56 24.46
Claims & Refunds Refundable 5,567.38 3,219.54
Finance Lease Receivable 69.30 62.32

Deposit with Non-Banking Financial Company (NBFC) with initial 37,500.00 -

maturity more than 3 months

Interest Accrued on:

- Fixed Deposits 216.50 -
- Investments 0.02 0.02
- Loans & Inter-corporate Deposits etc. :
Considered good 1,198.65 1,006.78
Considered doubtful 1,066.09 1,066.09
2,481.26 2,072.89
Less: Provision 1,066.09 1,066.09
1,415.17 1,006.80
44,594.41 4,313.12

15. Current Tax Assets (Net)

Advance Payment of Income Tax & Tax Deducted at Source [net of 10,006.24 9,698.82
Provisions of 2,30,755.58 Lakhs (31st March, 2020: 203,520.66
Lakhs)]
10,006.24 9,698.82

16. Other Current Assets

(Unsecured, considered good, unless stated otherwise)

Advances to Subsidiary Companies - 158.60
Advance to Gratuity Funds 51.35 -
Advances recoverable in cash or in kind or for value to be received 1,473.28 1,608.87
1,524.63 1,767.47

Pre-paid Expenses 265.54 428.04

Balance with Government Authorities 7,578.78 20,275.85
9,368.95 22,471.36
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs
17. Share Capital
As at As at
Authorised Share Capital 31st March, 2021 31st March, 2020

Authorised :
4,01,00,00,000 (31st March, 2020: 2,01,00,00,000) Equity Shares of 4,01,000.00 # 2,01,000.00
10/- each
29,90,00,000 (31st March, 2020: 29,90,00,000) Preference Shares of 2,99,000.00 2,99,000.00
100/- each
7,00,000.00 5,00,000.00

Issued, Subscribed and Fully paid up Equity Share capital

Number in Lakhs
Issued and fully paid Equity Shares of 10/- each
As at 31st March, 2019 9,65,979 96.60
Issued during the year 2,38,271 23.83
Issued Bonus Shares during the year 1,80,63,75,000 * 1,80,637.50
As at 31st March, 2020 1,80,75,79,250 1,80,757.93
Issued during the year 15,06,31,603 ** 15,063.16
As at 31st March, 2021 1,95,82,10,853 1,95,821.09

Terms/ rights attached to Equity Shares

The Company has only one class of equity shares having a par value of 10/- per share. Holder of each equity shares is entitled to one vote per share. The
Company declares and pays dividends in Indian Rupees. During the year ended 31st March, 2021, the amount of per share dividend recognized as
distribution to Equity Shareholders was Nil per share (31st March, 2020: 2/- per share). The Board of Directors, in its meeting on 29th June, 2021, have
not recommended any dividend for the financial year ended 31st March, 2021.

In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all
preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.
# On 29th September, 2020, the authorised share capital of the Company was increased from 2,01,00,00,000 no. Equity Shares to 4,01,00,00,000 no.
Equity shares having face value of 10/- per Share.
* During the year FY 2019-20, the Company had allotted 1,806,375,000 no. of equity shares of 10/- each as bonus shares on 23rd March, 2020 in the ratio
of 1500 equity share of 10/- each for every 1 equity share held as on record date fixed for entitlement of Bonus Shares, by utilising 149,600.00 Lakhs
from Capital Redemption Reserve and 31,037.50 Lakhs from Securities Premium. Out of the total Bonus Shares allotted, 18,000 shares could not be
credited for those shareholders who are holding their existing equity shares in physical form and do not have operative demat account. These Bonus
Shares will be transferred once these shareholders open demat account and get their existing equity shares dematerialised.
** During the year FY 2020-21, the Company has allotted 15,06,31,603 no. of equity shares of 10/- each on right issue basis at a premium of 46/- each on
25th May, 2020.

Details of shareholders holding more than 5% shares in the Company

Name of the Shareholder As at As at

31st March, 2021 31st March, 2020
Number % holding in the class Number % holding in the class

Equity Shares of 10 each fully paid :

Surya Abha Investments Pte. Ltd. 95,94,34,697 49.00% 88,56,32,028 49.00%
Birla Group Holdings Pvt.Ltd. 39,07,35,348 19.95% 29,65,42,063 16.41%
Umang Commercial Company Pvt. Ltd. 30,59,71,854 15.63% 20,77,54,911 11.49%
Manav Investment & Trading Co. Ltd. 13,56,25,000 6.93% 13,52,53,609 7.48%

As per records of the Company the above shareholding represents legal ownership of shares.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs
18. Other Equity
As at As at
31st March, 2021 31st March, 2020

(i) Investment Subsidy Reserve

Balance as per last Financial Statements 28.90 28.90

(ii) Capital Reserve

Balance as per last Financial Statements 38.44 38.44

(iii) Capital Redemption Reserve

Balance as per last Financial Statements - 1,49,600.00
Utilised for issue of Bonus Shares during the year - 1,49,600.00
- -

(iv) Debenture Redemption Reserve

Balance as per last Financial Statements 13,500.00 17,250.00
Less: Transferred to General Reserve 13,500.00 11,875.00
- 5,375.00
Add: Transferred from Retained Earnings - 8,125.00
- 13,500.00

(v) General Reserve

Balance as per last Financial Statements 1,98,981.88 1,87,106.88
Add: Transferred from Debenture Redemption Reserve 13,500.00 11,875.00
2,12,481.88 1,98,981.88

(vi) Securities Premium

Balance as per last Financial Statements 6,84,418.34 4,60,279.85
Add: Premium on issue of Equity Shares during the year 69,290.54 2,55,175.99
7,53,708.88 7,15,455.84
Less: Utilised for issue of Bonus Shares during the previous year - 31,037.50
7,53,708.88 6,84,418.34

(vii) Retained Earnings

Balance as per last Financial Statements 2,27,182.46 1,49,298.56
Add: Profit/(Loss) for the year 1,41,206.86 86,268.38
Less: Actuarial Losses on defined benefit obligation, net of taxes (124.89) 233.08

Less: Appropriations:
Equity Dividend ( Nil per share) - 21.90
[ 31st March, 2020: 2/- per share]
Tax on Equity Dividend - 4.50
Transfer to Debenture Redemption Reserve - 8,125.00
Total Appropriations - 8,151.40

Net Surplus in the Statement of Profit & Loss 3,68,514.21 2,27,182.46

(viii) FVTOCI Reserve

Balance as per last Financial Statements 377.60 417.05
Net Gain / (Loss) on FVTOCI Investments 96.31 (39.45)
473.91 377.60

(ix) Equity component of compound Financial

Instruments (Compulsorily Convertible
Debentures)
Balance as per last Financial Statements - -
Changes during the Year [Refer Note:19(v) & (vi)] 65,606.17 -
65,606.17 -

Total 14,00,852.39 11,24,527.62

 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

Notes:
Capital Reserve
This reserve is created on acquisition of Bharat Trading International during FY 2001-02.

Capital Redemption Reserve

This reserve was created upon redemption of Preference Shares issued and on the event of buyback of Equity Shares in
earlier years.

Debenture Redemption Reserve

This reserve is created upon redemption of Non Convertible Debentures, from time to time as per requirement of Companies
Act.

General Reserve
General reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purpose.
General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive
income.

Securities Premium
This reserve has been created on issue of shares by way of preferential issue and right issue.

Retained Earnings
This reserve represents undistributed accumulated earnings of the Company as on the balance sheet date.

FVTOCI Reserve
The Company has elected to recognise changes in the fair value of certain instruments in equity securities and debt
instruments in Other Comprehensive Income. These changes are accumulated with the FVOCI reserve within equity. The
Company transfers amounts from this reserve to retained earnings when the relevant equity securities are de-recognised.

Equity component of compulsorily convertible debentures

The above covers the equity component of the issued compulsorily convertible debentures. Each debentures shall be
compulsorily convertible into 1,35,000 (One Lakh Thirty Five Thousand) equity shares of face value of 10/- (Rupees Ten)
and the price at which Equity Shares will be issued upon conversion (the "Conversion Price") will be 74.07 (Rupees Seventy
Four and paisa Seven Only) including premium of 64.07 (Rupees Sixty Four and paisa Seven Only), for each Equity Share.
The same also includes deferred tax assets created on the timing difference of interest on the above compulsorily convertible
debentures.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs

Non-current Current Maturities (Refer note 25)

As at As at As at As at
19. Borrowings
31st March, 2021 31st March, 2020 31st March, 2021 31st March, 2020

Debentures
Unsecured and privately placed
Nil (31st March, 2020: 1,300), 7.93% Unsecured - - - 13,000.00
Redeemable Non Convertible Debentures of 10 Lakhs
each
Nil (31st March, 2020: 850), 7.90% Unsecured - - - 8,500.38
Redeemable Non Convertible Debentures of 10 Lakhs
each
Nil (31st March, 2020: 1,500), 9.15% Unsecured - 14,970.64 - -
Redeemable Non Convertible Debentures of 10 Lakhs
each
Nil (31st March, 2020: 1,750), 9.15% Unsecured - 17,465.34 - -
Redeemable Non Convertible Debentures of 10 Lakhs
each
780 (31st March, 2020: Nil) 6% Unsecured 2,360.77 - - -
Compulsorily Convertible Debentures of 100.00 Lakhs
each (Series "H") - Partly paid up
750 (31st March, 2020: Nil) 6% Unsecured 22,699.67 - - -
Compulsorily Convertible Debentures of 100.00 Lakhs
each (Series "I")
Term Loans
Secured
From Banks
Rupee Loan 99,762.17 5,050.93 5,057.19 812.44
Foreign Currency Loan 7,917.50 11,482.03 2,639.92 2,628.26
Unsecured
From Banks - 62,185.80 - -

Total 1,32,740.11 1,11,154.74 7,697.11 24,941.08

(i) 7.93% (31st March, 2020: 7.93% p.a.) Unsecured Redeemable Non Convertible Debentures of 10 Lakhs each was repaid on 24th April, 2020. The debentures
carried an effective interest rate of 7.93% p.a.(31st March, 2020: 7.93% p.a.).

(ii) 7.90% (31st March, 2020: 7.90% p.a.) Unsecured Redeemable Non Convertible Debentures of 10 Lakhs each was repaid on 13th April, 2020. The debentures
carried an effective interest rate of 7.91% p.a.(31st March, 2020: 7.91% p.a.).

(iii) 9.15% (31st March, 2020: 9.15%) Unsecured Redeemable Non Convertible Debentures of 10 Lakhs each was prepaid on 28th December, 2020. The debentures
carried an effective interest rate of 9.26% p.a.(31st March, 2020: 9.26% p.a.).

(iv) 9.15% (31st March, 2020: 9.15%) Unsecured Redeemable Non Convertible Debentures of 10 Lakhs each was prepaid on 15th January, 2021. The debentures
carried an effective interest rate of 9.25% p.a.(31st March, 2020: 9.25 p.a.).

(v) 6% (31st March, 2020: Nil) Unsecured Compulsorily Convertible Debentures (Series H) of 100.00 Lakhs each shall be automatically and compulsorily converted on
12th October, 2027 other than such Series H CCDs which remain partly paid up. Any such Series H CCDs that remain unconverted upon expiry of 7 (Seven) years
from the date of allotment shall be automatically and compulsorily converted into equity shares upon such Series H CCDs being fully paid up. The debentures carry
an effective interest rate of 7.95% p.a.(31st March, 2020: Nil). Each Series H - CCD shall be converted into 1,35,000 (One Lakh Thirty Five Thousand) equity shares
of face value of 10/- and the price at which Equity Shares will be issued upon conversion will be 74.07 (Rupees Seventy Four and paisa Seven Only) including
premium of 64.07 (Rupees Sixty Four and paisa Seven Only), for each Equity Share.

(vi) 6% (31st March, 2020: Nil) Unsecured Compulsorily Convertible Debentures (Series I) of 100.00 Lakhs each shall be automatically and compulsorily converted on
12th October, 2027. The debentures carry an effective interest rate of 7.95% p.a.(31st March, 2020: Nil). Each Series I - CCD shall be converted into 1,35,000 (One
Lakh Thirty Five Thousand) equity shares of face value of 10/- and the price at which Equity Shares will be issued upon conversion will be 74.07 (Rupees Seventy
Four and paisa Seven Only) including premium of 64.07 (Rupees Sixty Four and paisa Seven Only), for each Equity Share.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs

(vii) (a) Rupee / Rupee equivalent loan from a bank is secured by First Pari Passu Floating charge on the Current Assets of the Company. The loan is payable in 5 annual
instalments starting 21st. December, 2023. The loan carried an effective interest rate of 8.02% p.a. (31st March, 2020: Nil). The lender has unconditional put option at
the end of 3rd, 4th and 5th year (from the date of 1st disbursement) for 33.33% of the facility amount on each occasion (adjusted for the repayments already made till
such date). Company has entered into a Rupee Term Loan Facility with Bank with FCTL as a sub-limit. Loan was disbursed to the Company in fully hedged FCTL
which will be replaced with Rupee Term Loan at the end of tenure. The loan is repayable in INR in 5 annual instalments starting 21st. December, 2023, hence the
outstanding balance of the term loan as on 31st March, 2021 is classified as rupee loan.

(b) Rupee / Rupee equivalent loan from a bank is secured by First Pari Passu Floating charge on the Current Assets of the Company. The loan is payable in 4 annual
instalments starting 19th November, 2022. The loan carried an effective interest rate of 8.03% p.a. (31st March, 2020: Nil). Company has entered into a Rupee Term
Loan Facility with bank with FCNR (B) as a sub-limit. Part loan was disbursed to the Company as fully hedged FCNR (B) which will be replaced with Rupee Term
Loan at the end of tenure. The loan is repayable in INR in 4 annual instalments starting 19th November, 2022, hence the outstanding balance of the term loan as on
31st March, 2021 is classified as rupee loan.

(c) Rupee loan from a bank is secured by exclusive first charge on all the immovable and movable assets & current assets, both present and future, pertaining to
Company's 22 MW Solar Power project at Bhadla, Rajasthan. The loan is repayable in 51 equal quarterly instalments from 30th September, 2014. The loan carried
an effective interest rate of 9.05% p.a. (31st March, 2020: 9.05% p.a.). The loan has been fully repaid on 5th April, 2021.

(viii) Foreign currency loan from a bank is secured by first ranking exclusive charge on all the present and future immovable properties and movable fixed assets
pertaining to Company's 38.5 MW (DC) Solar Power project at Achampet, Kalwakurthy, Peddashankarampet and Mustyal in Andhra Pradesh. The above Loan
carried interest of 6 month Libor + 236 bps and is repayable in 19 half yearly un-equal instalments from 3rd February, 2015. The loan carried an effective interest rate
of 10.83% p.a. (31st March, 2020: 10.83% p.a.). The effective interest rate includes the effects of related cross currency interest rate swap.

(ix) Rupee Term loans from banks are unsecured and repayable after 3 years 4 months as bullet repayment in FY 2021-22. The loans carried an average effective
interest rate of 8.29% p.a. (31st March, 2020: 8.58% p.a.) and was fully pre-paid within 31st March, 2021.

As at As at
31st March, 2021 31st March, 2020
20. Other Non-current Financial Liabilities
(At amortised cost)

Deposits 1,258.81 1,143.49

Right of Use - Lease Rent Liability 11.58 -

Less : Current maturity of Lease Rent Liability 11.58 -
- -

1,258.81 1,143.49

21. Long Term Provisions

Provision for Site Restoration * 142.17 142.17
142.17 142.17

* The activities of the Company involve mining of land taken under lease. In terms of the provisions of relevant statutes and lease deeds, the mining areas would
require restoration at the end of the mining lease. The future restoration expenses are affected by a number of uncertainties, such as, technology, timing, etc. The
management has estimated such future expenses based on directions of relevant authorities and due provision thereof has been made in the accounts in terms of
relevant statute. The movements in site restoration expenses during the year is as follows :

At the beginning of the year 142.17 142.17

Addition during the year - -
At the end of the year 142.17 142.17
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs
22. Other Non-current Liabilities

Government Grant
At the beginning of the year 187.50 250.00
Less: Recognized in the Statement of Profit & Loss * 62.50 62.50
At the end of the year 125.00 187.50

* 62.50 Lakhs (31st March, 2020 : 62.50 Lakhs) have been adjusted
against Depreciation and Amortisation expenses

23. Short Term Borrowings As at As at

31st March, 2021 31st March, 2020
From Banks
Secured
Cash Credits 7.21 83.95
PCFC Loan - 4,000.00

Unsecured
Short Term Loan from Banks - 76,600.00

Unsecured
Commercial Paper
From Banks - 9,875.93

Total 7.21 90,559.88

(i) Cash Credit is secured by hypothecation of inventories & book debts ranking pari-passu amongst banks. Cash Credit
and Bank Overdraft carries effective interest @ 6.80% p.a. to 8.30% p.a.(31st March, 2020: 7.80% p.a. to 9.20%
p.a.).
(ii) Packing Credit Loan is secured by hypothecation of inventories & book debts ranking pari-passu amongst banks and it
carries effective interest @ 1.59% p.a. on the principal amount denominated in USD (31st March, 2020: 2.52% to
2.82%. for USD denominated Loan).
(iii) Short-Term Loan from a bank carries effective interest @ 5.40% p.a. to 9.00% p.a. (31st March, 2020: 6.92% p.a. to
9.50% p.a.).
(iv) Commercial papers represent short term loans and carries effective interest @ 4.50% p.a. to 7.00% p.a. (31st March,
2020: 6.50% p.a. to 7.75% p.a)

24. Current Trade Payables

Total outstanding dues of micro enterprises and small enterprises 56.82 19.84
(Refer Note 43)
Total outstanding dues of creditors other than micro enterprises and 27,236.20 27,299.88
small enterprises

27,293.02 27,319.72

Trade Payables are non-interest bearing and normally settled on 0 to 45 days terms.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs

As at As at
31st March, 2021 31st March, 2020
25. Other Current Financial Liabilities

Financial Liabilities at Fair value through Profit or Loss

Derivatives not designated as hedges
- Liability on Foreign Exchange Forward Contract 68.36 -
Financial Liabilities at amortised costs
Current maturities of Long Term Borrowings (Refer note 19) 7,697.11 24,941.08
Current maturities of Lease Rent Liability 11.58 -
Deposits 723.82 1,547.61
Interest accrued but not due on borrowings 2,492.85 2,898.19
Financial Guarantees 229.17 1,846.38
Payable against purchase of Property, Plant & Equipment 564.46 611.50

11,787.35 31,844.76

26. Short Term Provisions

Provision for Leave Benefits 705.33 717.47

Provision for Gratuity - 497.15

705.33 1,214.62

27. Current Tax Liabilities

Provision for Taxation [(Net of Advance Tax of 111,374.64 Lakhs 4,444.43 3,884.44
(31st March, 2020: 104,416.56 Lakhs)]
4,444.43 3,884.44

28. Other Current Liabilities

Contract Liability 7,003.89 2,568.08

Statutory dues Payable 5,495.86 2,133.57
Interest payable on income tax 661.31 -
Customer refund Liability * 4,596.75 18,245.90
Other Miscellaneous 203.22 315.55
17,961.03 23,263.10

* Customer refund liability are recognized for discount payable to customers.

 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs

29. Revenue from Operations Year ended 2020-21 Year ended 2019-20

Sale of Products
Domestic
Finished Goods 3,22,002.91 3,29,583.47
Power 7,587.02 8,479.88
Export
Finished Goods 82,380.03 83,318.14

4,11,969.96 4,21,381.49

Other Operating Revenue

Certified Emission Reduction (CER) Credits / Verified Carbon Standard (VCS) 27.78 43.05
Finance Lease Rentals 1,016.34 1,037.95
Sale of Scrap 214.97 296.49
1,259.09 1,377.49

4,13,229.05 4,22,758.98

a) Reconciliation of the Revenue Recognized with the contract price -

Contract Price 4,11,969.96 4,50,716.32
Adjustment for Discount - 29,334.83
Revenue from Operations (Gross) 4,11,969.96 4,21,381.49

b) Refer Note No. 55 for disaggregated revenue information.

c) The Company recognizes revenue at point in time.

30. Other Income

Profit on sale of current investments (Net) 391.35 255.60
Unspent Liabilities, Provision no longer required and Unclaimed balances adjusted 1,792.93 302.74
Claims 38.73 78.05
Foreign Exchange Fluctuations (Net) 10.05 -
Fair value Gain on financial instruments through profit or loss (Net) 156.92 123.57
Financial Guarantee Income 167.59 398.96
Dividend Income on:
- Non-current Investments 0.79 2.14
Interest Income on:
- Non-current Investments 1,315.93 607.16
- Inter-Corporate Loans 10,776.86 3,303.44
- Debts, Deposits & Advances, etc. 966.91 798.62
Miscellaneous Income 957.11 876.88

16,575.17 6,747.16
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs

Year ended 2020-21 Year ended 2019-20

31. Cost of Raw Materials Consumed

Inventory at the beginning of the year 190.19 1,929.68

Add: Purchases 8,574.08 8,764.27 7,542.52 9,472.20
Less: Inventory at the end of the year 307.07 190.19
8,457.20 9,282.01

32. (Increase) / Decrease in Inventories

Inventories at the beginning of the year

Work-in-Progress 961.71 1,721.99
Finished Goods 17,747.24 10,440.69
Saleable Scrap - 18,708.95 98.00 12,260.68

Inventories at the end of the year

Work-in-Progress 599.97 961.71
Finished Goods 7,017.55 17,747.24
Saleable Scrap - 7,617.52 - 18,708.95

11,091.43 (6,448.27)

33. Employee Benefits Expenses

Salaries, Wages and Bonus 8,781.56 10,028.51

[Includes 539.69 Lakhs (Previous year: 1,016.87 Lakhs) to
contractors]
Contribution to Provident & Other Funds (including 367.73 464.25
Administrative charges)
Gratuity Expense (Refer Note 53) 140.62 148.27
Employee Welfare Expenses 464.34 694.87
9,754.25 11,335.90

34. Finance Costs

Interest Expenses 15,066.31 22,678.25

Interest on Income Tax 661.31 -
Bank charges 130.53 108.89
15,858.15 22,787.14
35. Depreciation and Amortization Expenses

Depreciation on Tangible assets 4,927.54 5,716.69

Amortization of Intangible assets 793.25 17,956.35
5,720.79 23,673.04
Less: Government grant (Refer Note 22) 62.50 62.50
5,658.29 23,610.54
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs

Year ended 2020-21 Year ended 2019-20

36. Other Expenses

Iron ore raising (excavation & transport) 2,257.24 6,546.26
Consumption of stores, chemicals and spares 4,546.14 11,106.89
[Including 13.18 Lakhs (Previous year: 164.73 Lakhs) for
Drilling & Blasting]
Power and fuel 794.87 1,494.54
Overburden removal expenses 610.14 1,722.26
Royalty on iron ore 56,461.24 71,768.48
Dead rent and surface rent 12.84 23.42
Screening charges 2,791.37 4,521.59
Export duty 6,263.56 4,218.01
Repairs and Maintenance:
- Buildings 87.34 533.36
- Plant & machinery 2,168.65 4,557.44
- Others 657.24 2,913.23 1,499.26 6,590.06
Periphery Development Expenses 1,110.87 488.32
Rent & hire charges (Net) 1,357.67 3,651.30
Insurance 291.41 249.28
Rates and taxes 104.68 121.50
Sales tax / GST / Entry tax - 2,290.55
Commission - Others 19.03 9.48
Payment to auditors (Refer details below) 51.61 51.90
Legal, professional and consultancy fees 1,748.60 1,946.34
Travelling and conveyance 575.14 1,158.08
Foreign Exchange Fluctuations (Net) - 349.57
Charity and donations 2,000.56 6,750.00
Contribution to District Mineral Fund / National Mineral 18,033.79 22,910.93
Exploration Trust
Loss on Property, Plant & Equipment sold/discarded (Net) 327.95 16.18
Irrecoverable Loans / Debts & Advances written off 1.50 -
Capital Work-in-Progress written off - 222.23
Investments written off - 1.00
Directors' sitting fees 16.15 5.38
Miscellaneous expenses 2,935.07 4,316.59
1,05,224.66 1,52,530.14
Payment to Auditors
As Auditor:
- Audit Fees 29.50 29.50
In Other Capacity:
- For Tax Audit Fees 4.50 4.50
- For Certificates and Other Services 17.58 ** 17.90 *
- For Reimbursement of Expenses 0.03 -
51.61 51.90
* Including Half yearly audit / Limited review fees of 7.30 Lakhs.
** Including Limited review fees of 9.90 Lakhs.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

37. Deferred Tax and Income Tax in Lakhs

a) Deferred Tax
Deferred Tax relates to the following:

As at 31st As at 31st
Particulars
March, 2021 March, 2020
Deferred Tax Assets 19,704.25 50,002.13
Deferred Tax Liabilities (2,755.77) (2,339.10)
Total 16,948.48 47,663.03

Recognised Recognised in Other Recognised MAT

As at 31st Recognised directly in As at 31st
Particulars in Profit and Comprehensive Credit / (Utilized/
March, 2020 Equity March, 2021
Loss Income Adjusted)

A.Deferred Tax Assets

Expenditures falling under section 43B of Income Tax Act, 1961 501.83 (131.13) - - - 370.70
Fair valuation of FVTPL investments (852.15) 425.14 - - - (427.01)
Fair valuation of cross currency interest rate swap (388.65) 326.93 - - - (61.72)
Fair valuation of Financial Liabilities 596.08 (502.68) - - - 93.40
Fair valuation of Loans, Advances and other Financial Assets 903.85 15.87 - - - 919.72
Provision for doubtful debts and advances 396.00 - - - - 396.00
Interest on Compound Financial Instruments - (478.33) - 9,235.45 - 8,757.12
Provision for site restoration 49.68 - - - - 49.68
MAT credit entitlement 48,795.49 - - - (39,189.13) * 9,606.36
Total - A 50,002.13 (344.20) - 9,235.45 (39,189.13) 19,704.25
B. Deferred Tax Liabilities
Fixed assets: Impact of difference between tax depreciation and 2,196.14 320.34 - - - 2,516.48
depreciation/amortisation for financial reporting
Re-measurement Gains/ (Losses) on defined benefit plans- FVTOCI - - 67.08 - - 67.08
Fair valuation of FVTOCI investments 142.96 - 29.25 - - 172.21
Total - B 2,339.10 320.34 96.33 - - 2,755.77

Net Deferred Tax Assets / (Liabilities) [A-B] 47,663.03 (664.54) (96.33) 9,235.45 (39,189.13) 16,948.48

* Represents MAT credit entitlement adjusted with current tax liability on utilisation / adjustment.

Recognised Recognised in Other Recognised MAT

As at 31st Recognised directly in As at 31st
Particulars in Profit and Comprehensive Credit / (Utilized/
March, 2019 Equity March, 2020
Loss Income Adjusted)
A.Deferred Tax Assets
Expenditures falling under section 43B of Income Tax Act, 1961 507.22 (5.39) - - - 501.83
Fair valuation of FVTPL investments (105.74) (746.41) - - - (852.15)
Fair valuation of cross currency interest rate swap (44.55) (344.10) - - - (388.65)
Fair valuation of Financial Liabilities (38.48) 634.56 - - - 596.08
Fair valuation of Loans, Advances and other Financial Assets 894.51 9.34 - - - 903.85
Provision for doubtful debts and advances 396.00 - - - - 396.00
Provision for site restoration 49.68 - - - - 49.68
Payment under voluntary retirement scheme 20.27 (20.27) - - - -
Carried forward unabsorbed depreciation and business losses 47,150.01 (47,150.01) - - - -
MAT credit entitlement 29,744.00 - - - 19,051.49 48,795.49
Total - A 78,572.92 (47,622.28) - - 19,051.49 50,002.13
B. Deferred Tax Liabilities
Fixed assets: Impact of difference between tax depreciation and 7,711.40 (5,515.26) - - - 2,196.14
depreciation/amortisation for financial reporting
Fair valuation of FVTOCI investments 154.95 - (11.99) - - 142.96
Total - B 7,866.35 (5,515.26) (11.99) - - 2,339.10

Net Deferred Tax Assets / (Liabilities) [A-B] 70,706.57 (42,107.02) 11.99 - 19,051.49 47,663.03
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs

i) The Company has not recognised deferred tax on temporary differences relating to depreciation that originates and reverses during
the tax holiday periods.

ii) The Company has not recognised deferred tax assets on following long-term capital loss as presently it is not probable of recovery:

Description AY Amount Tax Impact @23.296% Year of Expiry

Long Term Capital Loss 2013-14 1,906.77 444.20 2021-22
Long Term Capital Loss 2014-15 252.10 58.73 2022-23
Long Term Capital Loss 2016-17 739.14 172.19 2024-25
Long Term Capital Loss 2017-18 234.46 54.62 2025-26
Long Term Capital Loss 2018-19 33,778.73 7,869.09 2026-27
Long Term Capital Loss 2019-20 694.44 161.78 2027-28
37,605.64 8,760.61

b) Income Tax
The major components of income tax expense for the years ended 31st March, 2021 and 31st March, 2020 are:

Year ended 2020-21 Year ended 2019-20

Current Income Tax :
Current income tax charge 73,942.13 22,375.92
MAT credit Entitlement - (19,051.49)

Deferred Tax :
Relating to origination and reversal of temporary differences 664.54 42,232.22
Income tax expense reported in the statement of Profit or Loss 74,606.67 45,556.65

Reconciliation of tax expense and the accounting profit multiplied by India’s domestic tax rate for 31st March, 2021 and 31st March,
2020:

Year ended 2020-21 Year ended 2019-20

Accounting Profit before Income Tax 2,15,813.53 1,31,825.03

At India’s statutory income tax rate of 34.944% (31st March, 2020: 34.944%) 75,413.88 46,064.94
Other non-deductible expenses 250.62 36.85
Difference between tax depreciation and book depreciation estimated to be (399.43) (393.85)
reversed during tax holiday period
Impact of Fair Valuation of Investment sold during the year for which no deferred 136.75 89.32
tax asset recognised in earlier year
Effect of income exempt from taxation (under section 80-IA of the Income Tax Act, (1,353.56) (1,226.64)
1961)
Others 558.41 986.03

74,606.67 45,556.65

Section 115BAA of the Income Tax Act,1961 gives the corporate assessee an option to apply a lower tax rate with effect from 1st April,
2019 subject to certain conditions specified therein. The Company has assessed the impact of the same and believes that it will
continue to remain in the existing tax structure for the foreseeable future based on its forecasted profits. Accordingly, no effect in this
regard has been considered in measurement of tax expenses for the purpose of these financial statements. Management, however,
will continue to review its profitability forecast at regular intervals and make necessary adjustments to tax expenses when there is
reasonable certainty to avail the lower rate of tax.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728
38. Earning per share

The following reflects the profit and Share data used in the basic and diluted EPS computations:
Year ended 2020-21 Year ended 2019-20
in Lakhs in Lakhs
Profit after tax attributable to equity holders for basic earnings 1,41,206.86 86,268.38
Add: Interest on Compulsorily Convertible Debentures (Net of Tax) 623.65 -
Net Profit for calculation of Diluted EPS 1,41,830.51 86,268.38

No. of Shares No. of Shares

Weighted average number of Equity Shares 1,93,59,25,630 1,80,74,75,563
Effect of Dilution:
Weighted average number of Equity Shares issued / to be issued on 5,23,68,164 -
the conversion of Debentures
Weighted average number of Equity shares adjusted for the effect
1,98,82,93,794 1,80,74,75,563
of dilution
Basic Earning per Share ( ) 7.29 4.77
Diluted Earning per Share ( ) 7.13 * 4.77
(Nominal value of share 10/-)

* Without considering the impact of conversion of Convertible Debenture (anti-dilutive effect).

39. Iron ore leases namely Jilling, Langalota Iron and Manganese Mines and Kasia Iron & Dolomite Mines has expired on 31st March, 2020 as per Sec 8A(6) of
MMDR Amendment Act, 2015. As per Rule 12 (1) (gg) of The Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016
six months’ time had been prescribed for removing and dispatching the stock of mineral excavated during the currency of the lease and thereafter handing
over the mines to state government after considering the additional one month provide under the rules 12(1)(hh) of the said rules. Accordingly, dispatches
of material and removal of items continued till October, 2020 and lease handed over to the State Government .

40. The Company had participated in the competitive bidding process invited by Andhra Pradesh Mineral Development Corporation Limited (APMDC) from
experienced Mine Developers and Operators for planning, engineering, financing, construction, development, operation and maintenance on 19th March,
2018. The Company after a competitive bidding process emerged as the successful bidder and agreement to execute the project was signed on 8th March,
2019.

The life of the project is 33 years. This being a greenfield project, the development period as per contract is 840 days. The project is located in Korba district
of Chhattisgarh.

The Company plans to develop the mines and operate with latest technology mining machines and equipment. Currently, project team is in process of
facilitating regulatory clearances such as Environmental Clearances, Forest Clearances, etc. which is required to be undertaken in the development period.
Expenses incurred 136.30 Lakhs during the year (31st March, 2020: 76.07 Lakhs) of development of the project are treated as “Pre-operative expenses,
pending allocation” and shown as Capital Work-in Progress.

41. The Company had participated in the auction process of Bunder Diamond Block (Mining Lease) in Chhatarpur District of Madhya Pradesh and won the
block through competitive bidding. Letter of Intent for Grant of Mining Lease has been issued by Government of Madhya Pradesh in favour of the Company
on 19th December, 2019.

Bunder Diamond Block is a Greenfield Mining Project covering an area of 364 Ha in Buxwaha Protected Forest and located near Village Sagoria of
Buxwaha Tehsil in Chhatarpur District of Madhya Pradesh. The project is about 80 Kms. from Chhatarpur, the district headquarter and 260 Kms. from
Bhopal the state capital. The estimated resources in the block is around 53.70 Million Tonne of Kimberlite Ore containing about 34 Million Carats of rough
Diamonds.

The Company plans to develop a fully mechanized opencast mine and state of the art processing plant for recovery of Diamonds and is currently in the
process of obtaining various regulatory clearances such as approval of Mine Plan, Environment & Forest clearances etc. required for execution of mining
lease. Expenses incurred 531.23 Lakhs during the year (31st March, 2020: 63.41 Lakhs) for development of the project are treated as “Pre-operative
expenses, pending allocation” and shown as Capital Work-in-Progress.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

42. Commitments and Contingencies

As at As at
A. Commitments 31st March, 2021 31st March, 2020
in Lakhs in Lakhs
Estimated amount of contracts remaining to be executed on capital account and not provided for 155.15 119.58
[net of advances 31st March, 2020 : 124.92 Lakhs (31st March, 2020 : 106.52 Lakhs)

B (i) Contingent liabilities not provided for in respect of :

a. Unredeemed Bank Guarantees 20,919.87 29,199.71
b. Excise Duty/Sales Tax matters under dispute
(1). Order passed u/s 43 of the OVAT Act, dated 31st August, 2017, by the JCCT, Jajpur Road, 284.07 284.07
for the period 2012-2014 imposing tax and penalty of 94.69 Lakhs and 189.38 Lakhs
respectively, on so called receipt of minerals from lease hold mines against payment of royalty,
treating the same as purchase/receipt from unregistered dealer, i.e., Government of Odisha. Writ
petition filed before High Court of Orissa which has stayed the demand.

(2). Order passed u/s 12 of the OVAT Act, dated 25th October, 2018, by the DCCT, Barbil, for 27.15 27.15
the period 01.04.2016 to 30.06.2017 imposing tax and penalty of 21.72 Lakhs and 5.43
Lakhs, on so called receipt of minerals from lease hold mines against payment of royalty, treating
the same as purchase/receipt from unregistered dealer, i.e., Government of Odisha. Appeal filed
before the Additional CCT (Appeal) is yet to be disposed off.

c. Service Tax matters under dispute (Including penalty but excluding interest)
(1). Order passed by Joint commissioner of Central tax GST & Central Excise Rourkela dated 244.16 244.16
22nd February, 2018 for 121.68 Lakhs along with penalty of 0.80 Lakhs and penalty of
equivalent amount u/s 78(1) of Finance Act in respect of non-payment of Service tax under RCM
in respect of services availed from GTA; Non-payment of Service tax on TIELS benefit given by
Indian railways, which is passed on to the Notice by their customers. Appeal filed before
CESTAT is pending for disposal.
(2). Demand confirmed by Commissionerate of CT and GST, Odisha (Cuttack) towards short- 8,293.49 -
payment of GST on reverse charge basis on Royalty, DMF NMET paid to State Government for
the period 1st April, 2018 to 31st December, 2018 amounting to 6,117.20 Lakhs u/s 73(8) of
OGST Act 2017 along with interest of 1,564.57 Lakhs and penalty of 611.72 Lakhs.

(3). Demand towards non-payment of Service Tax on “Scientific or Technical Consultancy 605.56 605.56
Services” received from foreign supplier. The matter is pending before the CESTAT Kolkata on
the ground that the activities undertaken by foreign entities on account of technical and due
diligence in relation to mining opportunities/proposed acquisition of mines situated outside India
will fall under the ambit of “Mining Services” and thereby the Place of Provision of Service would
be outside the taxable territory and hence not liable to Service Tax.

d. Claims against the Company by service providers not acknowledged as debt 139.21 274.41
e. Custom Duty on Import under EPCG Scheme against which Export obligation is to be fulfilled 92.26 92.26

f. Corporate Guarantee/Undertaking given for Loans taken by others (net of entitlements) 79,000.00 60,000.00
g. Demand from Railways towards Land Licensing Fees (Refer Note 49) 3,151.53 2,557.77
h. Income Tax demands contested by the Company 14,000.62 14,000.62
i. Demand from Department of Steel & Mines towards Shortages, Royalty etc. 17,507.04 17,507.04
(Refer Note 47)
j. Guarantee obligations towards site restoration 228.81 1,330.23
Financial assurance given to Indian Bureau of Mines in the form of bank guarantee as per Rule
25 towards area put to use for mining and allied activities.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

k. Demands of tax under Orissa Rural Infrastructure and Socio-Economic Development Act, 2004 for the years 2004-05 and 2005-06 stand at 7,377.40
Lakhs. The petition filed by the Eastern Zone Mining Association on behalf of mining companies against the imposition of above tax has been decided in
favour of the mining companies by the Hon'ble Orissa High Court vide its order dated 5th December, 2005. However, the department has filed appeal
against the said order with Hon'ble Supreme Court of India, which is pending disposal for last several years, as a nine judge’s constitutional bench is to be
constituted to hear the matter.

(ii) The Government of Odisha has raised a demand of 21,355.92 Lakhs for Kasia mines for undertaking mining in absence of executed lease deed during the
period 2012-13. The demand has been challenged before the Revisional Authority and the same is pending for adjudication.

(iii) The Company had received demands of 2,75,539.57 Lakhs during the year 2013-14 towards stamp duty pursuant to the enactment of the Indian Stamp
(Odisha Amendment) Act, 2013 w.e.f. 10th May, 2013 in respect of Company’s Mining Leases. The Company has filed writ petition before Hon’ble High
Court of Odisha challenging the constitutional validity of the aforesaid demands and interim stay has been granted by the Hon’ble High Court vide its order
dated 9th July, 2013. In view of above and favourable legal opinion obtained by the Company, the management believes that the Company does not have
any existing obligation in this regard.
(iv) The Company has received a notice from the Joint Director of Mines, Joda vide Letter No.745 / Mines dated 8th February, 2021, wherein the Company has
been directed to deposit 38,413.09 Lakhs towards cost price as compensation on the excess production during the period October, 2019 to March, 2020 in
respect of Kasia mines, under Sec.21(5) of MMDR Act, 1957. The said demand has been raised based on the cost price for the difference between the
actual production and permissible production computed based on lowest of the proportionate production for the period of operations as per the Mining Plan,
Consent to Operate and Environmental clearance. Such computation of permissible production by proportionate method based on period of operation in not
prescribed in any of the Act / Rules. The Company has preferred Revision application before Mines Tribunal, New Delhi, challenging the order of Joint
Director of Mines. The matter is pending before Mines Tribunal, New Delhi for listing. The Company believes such a demand is not tenable as per law.

C. Leases
(i) Company as a lessee
Short term lease payments during the year
Certain office premises, machineries, etc. are obtained on operating lease. The lease term is for 1-3 years and renewable for further period either mutually
or at the option of the Company. There are no restrictions imposed by lease agreements and are cancellable. There are no subleases.
in Lakhs
Particulars Year ended 2020-21 Year ended 2019-20
Lease rentals recognized during the Year 891.01 2,074.81

(ii) Company as a lessor - Finance Lease

The Company has leased out certain renewable energy assets to third party under finance lease arrangement. The Company recognizes a receivable in the
amount of the net investment in the lease. The lease payments made by the lessees are split into an interest component and a principal component using
the effective interest rate method. The lease receivable is reduced by the principal received. The interest component of the payments is recognized as
finance income in the Statement of Profit and Loss. The following table shows how the amount of the net investment in a finance lease is determined:

Year ended 2020-21 Year ended 2019-20

in Lakhs in Lakhs
Minimum Lease Payments 14,539.44 15,536.52
Unguaranteed residual value - -
Gross Investment 14,539.44 15,536.52
Unearned Finance Income 10,207.55 11,142.31
Net Investment (Present Value of the Minimum Lease Payments) 4,331.89 4,394.21

Operating rents recognized and included as income under the head 81.59 88.40
"Finance Lease Rentals" in the year

Following table presents the Gross Investment amounts and the present value of Minimum Lease Payments

As at 31st March, 2021 As at 31st March, 2020

in Lakhs in Lakhs in Lakhs in Lakhs
Present
Present value of value of
Maturity Gross Investment Minimum lease Gross Investment Minimum
payment lease
payment
(i) not later than one year; 990.05 69.30 997.08 62.32
(ii) later than one year and not later than five years; 3,888.50 380.68 3,917.33 333.65
(iii) later than five years. 9,660.89 3,881.91 10,622.11 3,998.24
14,539.44 4,331.89 15,536.52 4,394.21
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

43. Details relating to Micro, Small and Medium Enterprises : As at As at

31st March, 2021 31st March, 2020
in Lakhs in Lakhs

i. The principal amount and the interest due thereon (to be shown separately) 56.82 19.84
remaining unpaid to any supplier at the end of each accounting year.
ii. The amount of interest paid by the buyer in terms of section 16 of the Micro, Small - -
and Medium Enterprises Development Act, 2006, along with amount of the payment
made to the supplier beyond the appointed day during each accounting year.
iii. The amount of interest due and payable for the period of delay in making payment - -
(which have been paid but beyond the appointed day during the year) but without
adding the interest specified under the Micro, Small and Medium Enterprises
Development Act, 2006.
iv. The amount of interest accrued and remaining unpaid at the end of accounting year; - -
and
v. The amount of further interest remaining due and payable even in the succeeding - -
years, until such date when the interest dues as above are actually paid to the small
enterprises, for the purpose of disallowance as a deductible expenditure under
Section 23 of Micro, Small and Medium Enterprises Development Act, 2006.

44. During the current year, donations include contribution of 2,000.00 Lakhs (31st March, 2020: 6,750.00 Lakhs) which was made through
Electoral Bond Scheme, 2018 notified by Government of India.

45. Repairs & Maintenance of Plant & Machinery includes :

Year ended 2020-21 Year ended 2019-20

In Lakhs In Lakhs
Operation & Maintenance charges for Wind Power Mills 308.98 950.74
Operation & Maintenance charges for Solar Power Plant 316.02 242.47
Consumption of Spare Parts 78.96 501.86

46. Expenditure incurred on Corporate Social Responsibility activities, included in Miscellaneous Expenses in the Statement of Profit and Loss is
55.92 Lakhs (31st March, 2020: 105.46 Lakhs).
No amount is required to be spent under Section 135 of the Companies Act, 2013 for the year ended 31st March, 2021 i.e.; 2% of average net
profits for last three financial years, calculated as per Section 198 of the Companies Act, 2013. However, the Board of Directors on
recommendation of CSR Committee have voluntarily approved the same for 50.00 Lakhs (31st March, 2020: 100.00 Lakhs)

47. The Company had received demands of 17,507.04 Lakhs during the year 2011-12 from Department of Steels & Mines, Government of Odisha
for the years 2000-01 to 2010-11 towards shortages, royalty, etc. which has been stayed by the Mines Tribunal of the Central Government by its
interim order dated 5th September, 2012 till the disposal of revision petition filed by the Company. Pending disposal of the said revision petition,
the Company's obligation, if any, is not ascertainable at this stage. On 5th September, 2012, injunction order for not to take any coercive action till
disposal of the matter was issued. The matter is pending adjudication.

48. Trade Payable includes 10,014.47 Lakhs for liability provided during the year 2010-11 towards stacking charges demand from South Eastern
Railways, which has been stayed by the Hon'ble High Court of Calcutta vide its order dated 20th December, 2011. Pending final decision of the
Hon'ble High Court of Calcutta, the said liability is continued in the books by the Company.

49. The Company had received demands of 3,677.60 Lakhs (including 542.13 Lakhs for the period 1st April, 2019 to 31st March, 2021during the
year) from South Eastern Railway towards land licensing fees for railway siding at its Mining Unit. The Company had approached the Railway
Authorities to revise these demands based on the prevailing land rates at respective localities, which are much lower than the land rates
considered in the above demands. Further, the Company has filed a writ petition before the Hon’ble High Court of Calcutta against the circular
published by the Railway Authorities in 2008 imposing such higher rates. Hon’ble High Court has directed to make payment at old rates as per
2005 circular vide its Order dated 18th December, 2014 till the disposal of the above writ petition. During the year the Company has submitted
bank guarantee for 1,592.75 Lakhs to South Eastern Railway towards such land licensing fees. In the opinion of the management, provision of
526.07 Lakhs made in the books of account is sufficient to meet the balance liabilities.

50. The Writ W.P(C) 1599 / 2019 pertaining to stamp duty for Koira mining lease filed challenging the notice issued by Sub-Registrar, Bonai dated
13th December, 2018 wherein 2,559.57 Lakhs was demanded purportedly towards deficit stamp duty and registration fee in respect of
Supplementary Lease deed dated 15th July, 2016. The Company was granted stay in the matter on 24th January, 2019 and the writ is disposed
with a direction to Sub-registrar, Bonai to hear the matter on merits and disposed of the same, hearing is awaited.
51. The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident
Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on 13th November,
2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact
and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code
becomes effective and the related rules to determine the financial impact are published.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

52. Significant accounting judgements, estimates and assumptions

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.

(i) Judgements
The management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

Deferred tax assets on unused tax losses

Deferred tax assets are recognised on unused tax losses to the extent that it is probable that taxable profit will be available against which losses can be
utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing
and the level of future taxable profits together with future tax planning strategies. The Company has decided to recognize deferred tax asset on such unused
tax losses.

(ii) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions
and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments,
however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the
assumptions when they occur.

a) Defined benefit plans

The cost of the employment benefits such as gratuity and leave are determined using actuarial valuations. An actuarial valuation involves making various
assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and
mortality rates. Due to the complexities involved in the valuation and its long-term nature, an employee benefit liability is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each reporting date.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management
considers the interest rates of government bonds.
The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes.
Future salary increases are based on expected future inflation rates.
Further details about gratuity obligations are given in Note 53.

b) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets,
their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where
possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as
liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. See Note 56
and 60 for further disclosures.

c) Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset 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 CGU’s fair value less costs of disposal and its value in use. It 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. Where 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.
An impairment loss is recognized as an expense in the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment
loss recognized in earlier accounting period is reversed if there has been an improvement in recoverable amount.

d) Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in
making these assumptions and selecting the inputs to the impairment calculation, based on Company’s past history, existing market conditions as well as
forward looking estimates at the end of each reporting period.

e) Significant judgments when applying Ind AS 115

Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects the consideration which the
Company expects to receive in exchange for those products or services. Revenue is measured based on the transaction price, which is the consideration,
adjusted for volume discounts and price concessions, if any, as specified in the contract with the customer. The Company exercises judgment in determining
whether the performance obligation is satisfied at a point in time or over a period of time. The Company considers indicators such as how customer
consumes benefits as services are rendered or who controls the asset as it is being created or existence of enforceable right to payment for performance to
date and alternate use of such product or service, transfer of significant risks and rewards to the customer, acceptance of delivery by the customer, etc.

f) Provisions and Contingencies

The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Indian Accounting Standards (Ind AS) 37,
‘Provisions, Contingent Liabilities and Contingent Assets’. The evaluation of the likelihood of the contingent events is applied best judgement by
management regarding the probability of exposure to potential loss.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

53. Gratuity and other post-employment benefit plans

The Company has a defined benefit gratuity plan in India. Every employee who has completed 5 years or more of service is entitled to Gratuity on terms not less favourable than provisions of the The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company. The following tables summarize the components of net benefit
and expenses recognized in the Statement of Profit & Loss and the funded status and amounts recognized in the Balance Sheet for the Gratuity Plan.
in Lakhs
As at 31st March, 2021 As at 31st March, 2020
Defined benefit assets / (obligations) 51.35 (497.15)

51.35 (497.15)

Changes in the defined benefit obligation and fair value of plan assets as at 31st March, 2021:
in Lakhs
Gratuity Expenses charged to the Statement of Profit or Loss Remeasurement gains/(losses) in other Comprehensive Income
Sub-total included in
Return on plan assets
Profit or Loss Actuarial changes Contributions by
Net interest (excluding amounts Experience Sub-total As at 31st March, 2021
As at 31st March, 2020 Service cost Benefits paid arising from changes in employer
expense/income included in net adjustments included in OCI
(Note 33) financial assumptions
interest expense)
Defined benefit obligation (2,659.61) (129.61) (161.09) (290.70) (676.90) - 58.13 103.41 161.54 - (2,111.87)
Fair value of Plan Assets 2,162.46 - 150.08 150.08 676.90 30.43 - - 30.43 497.15 2,163.22
Benefit Liability (497.15) (140.62) 191.97 497.15 51.35

Changes in the defined benefit obligation and fair value of plan assets as at 31 March 2020:

Gratuity Expenses charged to the Statement of Profit or Loss Remeasurement gains/(losses) in other Comprehensive Income

Sub-total included in Return on plan assets

Actuarial changes arising Actuarial gain/loss on
Net interest Profit or Loss (excluding amounts Sub-total included Contributions by
As at 31st March, 2019 Service cost Benefits paid from changes in financial obligations due to As at 31st March, 2020
expense/income included in net interest in OCI employer
assumptions Unexpected Experience
(Note 33) expense)

Defined benefit obligation (2,069.17) (154.11) (131.35) (285.46) (158.19) - (199.27) (263.90) (463.17) - (2,659.61)
Fair value of Plan Assets 2,078.57 - 137.19 137.19 158.19 104.89 - - 104.89 - 2,162.46
Benefit Liability 9.40 (148.27) (358.28) - (497.15)

ESSEL MINING & INDUSTRIES LIMITED

Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

The major categories of plan assets of the fair value of the total plan assets are as follows:
in Lakhs

As at 31st March, 2021 As at 31st March, 2020

Government of India Assets 833.70 635.33
Corporate Bonds 1,122.71 1,199.30
Others 206.81 327.83

2,163.22 2,162.46

The principal assumptions used in determining gratuity for the Company’s plan are shown below:

As at 31st March, 2021 As at 31st March, 2020

Discount rate 6.94% 6.58%
Future salary increases 6.00% 6.00%
Expected average remaining working lives (in years) 14 11
Withdrawal rate (based on grade and age of employees) Varying between 1 per Varying between 1 per
thousand and 10 per thousand thousand and 10 per
employees depending upon thousand employees
duration and age of the depending upon
employees duration and age of the
employees

A quantitative sensitivity analysis for significant assumption is as shown below:

As at 31st March, 2021 As at 31st March, 2020

Assumptions Discount rate Discount rate
Sensitivity level 0.5 % increase 0.5 % decrease 0.5 % increase 0.5 % decrease
Impact on Gratuity 2,035.74 2,193.39 2,556.68 2,769.74

As at 31st March, 2021 As at 31st March, 2020

Assumptions Future Salary Movement Future Salary Movement
Sensitivity level 0.5 % increase 0.5 % decrease 0.5 % increase 0.5 % decrease
Impact on Gratuity 2,193.33 2,035.13 2,769.29 2,556.15

As at 31st March, 2021 As at 31st March, 2020

Assumptions Withdrawal Withdrawal
Sensitivity level 0.5 % increase 0.5 % decrease 0.5 % increase 0.5 % decrease
Impact on Gratuity 2,111.96 2,111.79 2,659.64 2,659.58

As at 31st March, 2021 As at 31st March, 2020

Assumptions Mortality Mortality
Sensitivity level 10% increase 10% decrease 10% increase 10% decrease
Impact on Gratuity 2,112.04 2,111.70 2,659.58 2,659.64

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key
assumptions occurring at the end of the reporting period.

The following payments are expected contributions to the defined benefit plan in future years:

As at 31st March, 2021 As at 31st March, 2020

Within the next 12 months (next annual reporting period) 315.88 286.27
Between 2 and 5 years 770.95 787.74
Between 6 and 10 years 1,043.86 1,674.54
Beyond 10 years 1,926.59 2,314.92
Total undiscounted payments related to past service 4,057.28 5,063.47
Less: Discount for Interest 1,945.41 2,403.86
Total expected payments 2,111.87 2,659.61
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

54. Related Parties Disclosures

a) As per Ind AS 24, the disclosure of transactions with the related parties are given below:

List of related parties where control exists and also related parties with whom transactions have taken place and relationship:

Names of the related parties Relationship

IGH Holdings Pvt. Ltd.
Bhubaneswari Coal Mining Ltd.
Rajmahal Coal Mining Ltd.
Electrotherm Renewables Pvt. Ltd.
Palace Solar Energy Pvt. Ltd. Subsidiaries
Aditya Birla Aerospace and Defence Pvt. Ltd.
Pro Minerals Pvt. Ltd.
EMIL Mines And Mineral Resources Ltd.(w.e.f. 27th February, 2020)

Living Media India Ltd.

Kanishtha Finance & Investment Pvt. Ltd.(w.e.f. 23rd March, 2018 to
29th November, 2019 and became subsidiary of IGH Holdings Pvt.
Ltd. w.e.f. 30th November, 2019)
RKN Retail Pvt. Ltd.(w.e.f. 23rd March, 2018 to 29th November, Associates
2019 and became subsidiary of IGH Holdings Pvt. Ltd. w.e.f. 30th
November, 2019)

Surya Abha Investments Pte. Ltd.

(In respect of which the Company is an investee)
Shri Ashwin Pannalal Kothari
Shri Sunil Kumar Daga
Shri Manish Kumar Newar
Shri Nagendra Chandra Shah Directors
Shri Giriraj Maheswari
Ms. Kalpana Vasantrai Unadkat
Ms. Anita Ramachandran
Shri Tuhin Kumar Mukherjee - Managing Director Key Management
Shri Rajendra Prasad Pansari - Senior President Personnel
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

b) Related Party Transactions in Lakhs

Particulars Key Management Personnel Subsidiary Companies Total

Transactions Transactions Transactions Transactions Transactions Transactions

during 2020-21 during 2019-20 during 2020-21 during 2019-20 during 2020-21 during 2019-20
Sale of Finished Goods
Pro Minerals Pvt. Ltd. # - - 12,172.42 1,343.17 12,172.42 1,343.17
Interest Income
IGH Holdings Pvt. Ltd. - - 10,568.45 2,568.04 10,568.45 2,568.04
Electrotherm Renewables Pvt. - - 174.35 174.35 174.35 174.35
Ltd.
EMIL Mines And Mineral - - 108.28 - 108.28 -
Resources Ltd.
Pro Minerals Pvt. Ltd.# - - 1,531.30 1,140.09 1,531.30 1,140.09
Interest Expenses
Surya Abha Investments Pte. - - 868.32 - 868.32 -
Ltd.
Directors Sitting Fees
Shri Ashwin Kumar Kothari 2.75 0.65 - - 2.75 0.65
Shri Sunil Kumar Daga 4.40 1.90 - - 4.40 1.90
Shri Manish Kumar Newar 0.95 - - - 0.95 -
Shri Nagendra Chandra Shah 2.85 1.23 - - 2.85 1.23
Shri Giriraj Maheswari 3.60 1.33 - - 3.60 1.33
Ms. Kalpana Vasantrai Unadkat 0.80 0.28 - - 0.80 0.28
Ms. Anita Ramachandran 0.80 - - - 0.80 -
Salary & Other Allowances 858.51 909.21 - - 858.51 909.21
(Short Term) *
Reimbursement of Expenses
from Subsidiary Companies #

Bhubaneswari Coal Mining Ltd. - - 258.34 134.51 258.34 134.51

Rajmahal Coal Mining Ltd. - - 216.67 85.22 216.67 85.22
Pro Minerals Pvt. Ltd. - - - 22.25 - 22.25
Palace Solar Energy Pvt. Ltd. - - - 65.87 - 65.87
EMIL Mines And Mineral - - - 2.25 - 2.25
Resources Ltd.
Transfer of Employee related
Liabilities due to transfer of
Employee from
Bhubaneswari Coal Mining Ltd. - - - 15.62 - 15.62
Rajmahal Coal Mining Ltd. - - 0.27 - 0.27 -
Reimbursement of Expenses
to Subsidiary Companies
Bhubaneswari Coal Mining Ltd. - - - 0.39 - 0.39
Rajmahal Coal Mining Ltd. - - 16.54 - 16.54 -

* Excludes provision for gratuity and leave encashment recognised on the basis of actuarial valuation as separate figures are not available.

# Figures includes GST.

 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728
Related Party Transactions (Contd.) in Lakhs

Particulars Key Management Personnel Subsidiary Companies Total

Transactions Transactions Transactions Transactions Transactions Transactions

during 2020-21 during 2019-20 during 2020-21 during 2019-20 during 2020-21 during 2019-20

Purchase of Fixed Assets

Bhubaneswari Coal Mining Ltd. - - - 12.23 - 12.23
Rajmahal Coal Mining Ltd. # - - 0.25 - 0.25 -
Sale of Fixed Assets
Pro Minerals Pvt. Ltd. # - - 203.96 - 203.96 -
Sale of Stores & Spares
Pro Minerals Pvt. Ltd. # - - 45.43 - 45.43 -
Investments made
IGH Holdings Pvt. Ltd.
Equity Shares - - - 3,22,647.57 - 3,22,647.57
Pro Minerals Pvt. Ltd.
Equity Shares * - - (1,394.17) 2,089.60 (1,394.17) 2,089.60
Non Convertible Debentures - - 3,500.00 9,000.00 3,500.00 9,000.00
EMIL Mines And Mineral
Resources Ltd.
Equity Shares * - - 73.94 - 73.94 -
Non Convertible Debentures - - 8,750.00 - 8,750.00 -
Investments written off
Aditya Birla Aerospace Defence - - - 1.00 - 1.00
Pvt. Ltd.
Financial Guarantees issued
Pro Minerals Pvt. Ltd. - - - 60,000.00 - 60,000.00
EMIL Mines And Mineral - - 19,000.00 - 19,000.00 -
Resources Ltd.
Financial Guarantees released

Rajmahal Coal Mining Ltd. - - - 2,500.00 - 2,500.00

Inter-corporate Deposit given
IGH Holdings Pvt. Ltd. - - 3,44,500.00 1,69,000.00 3,44,500.00 1,69,000.00
Pro Minerals Pvt. Ltd. - - 3,000.00 1,092.00 3,000.00 1,092.00
EMIL Mines And Mineral - - 1,141.00 - 1,141.00 -
Resources Ltd.
Inter-corporate Deposit
received back
IGH Holdings Pvt. Ltd. - - 1,82,000.00 2,03,000.00 1,82,000.00 2,03,000.00
Pro Minerals Pvt. Ltd. - - - 26,329.96 - 26,329.96
EMIL Mines And Mineral - - 36.00 - 36.00 -
Resources Ltd.

* Transactions during the year represents investment in Equity Shares along with Financial guarantee valuation.
# Figures includes GST.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728
c) Related Party Balances in Lakhs

Particulars Key Management Personnel Subsidiary Companies Total

As on 31st As on 31st As on 31st As on 31st As on 31st As on 31st
March, 2021 March, 2020 March, 2021 March, 2020 March, 2021 March, 2020
Interest Accrued on Inter-
corporate Deposits
IGH Holdings Pvt. Ltd. - - - 0.89 - 0.89
Electrotherm Renewables Pvt. - - 966.91 805.64 966.91 805.64
Ltd.
Pro Minerals Pvt. Ltd. - - 12.60 - 12.60 -
EMIL Mines And Mineral - - 3.09 - 3.09 -
Resources Ltd.
Interest Accrued and but not
due on Borrowings
Surya Abha Investments Pte. - - 552.10 - 552.10 -
Ltd.
Financial Guarantees
Pro Minerals Pvt. Ltd. - - 60,000.00 60,000.00 60,000.00 60,000.00
EMIL Mines And Mineral - - 19,000.00 - 19,000.00 -
Resources Ltd.
Inter-corporate Deposit given
IGH Holdings Pvt. Ltd. - - 1,66,500.00 4,000.00 1,66,500.00 4,000.00
Electrotherm Renewables Pvt. - - 1,585.00 1,585.00 1,585.00 1,585.00
Ltd.
EMIL Mines And Mineral - - 1,105.00 - 1,105.00 -
Resources Ltd.
Pro Minerals Pvt. Ltd. - - 3,000.00 - 3,000.00 -
Investments made
IGH Holdings Pvt. Ltd.
Equity Shares - - 12,92,297.20 12,92,297.20 12,92,297.20 12,92,297.20
Preference Shares - - 60,000.00 60,000.00 60,000.00 60,000.00
Rajmahal Coal Mining Ltd.
Equity Shares - - 2,288.68 2,357.06 2,288.68 2,357.06
Bhubaneswari Coal Mining Ltd.
Equity Shares - - 9,645.61 9,645.61 9,645.61 9,645.61
Electrotherm Renewables Pvt.
Ltd.
Equity Shares - - 5.00 5.00 5.00 5.00
Pro Minerals Pvt. Ltd.
Equity Shares ** - - 3,485.43 4,879.60 3,485.43 4,879.60
Non Convertible Debentures - - 14,166.53 9,546.39 14,166.53 9,546.39
EMIL Mines And Mineral
Resources Ltd.
Equity Shares ** - - 73.94 - 73.94 -
Non Convertible Debentures - - 8,847.04 - 8,847.04 -
Trade Receivables
Pro Minerals Pvt. Ltd. - - 9,173.98 1,343.17 9,173.98 1,343.17
Receivable against PPE
Pro Minerals Pvt. Ltd. - - 204.27 - 204.27 -
Loans & Advances given
Bhubaneswari Coal Mining Ltd. - - - 83.86 - 83.86
Rajmahal Coal Mining Ltd. - - - 61.24 - 61.24
Pro Minerals Pvt. Ltd. - - - 11.25 - 11.25
EMIL Mines and Mineral - - - 2.25 - 2.25
Resources Ltd.

** Investment in Equity shares includes fair valuation gain on Financial guarantees given by the Company to Subsidiaries.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

55. Segment Information

For management purposes, the Company is organised into business units based on its products and has following reportable business segments:
1.The Iron-Ore segment extracts superior quality Iron-ore with high Fe (Iron) content from its mines.
2. Noble Ferro-Alloys segment produces superior quality Noble Ferro-Alloys consisting of Ferro-Molybdenum, Ferro-Vanadium, Ferro-Titanium, Ferro Alloy Powders and Un-fused
Vanadium Pentoxide.
3. Wind Power and Solar Power segments generate power through its Wind Power & Solar Power plants respectively.
in Lakhs
Year ended 31st March, 2021
Iron Ore Noble Ferro-Alloys Wind Power Mill Solar Power Total
REVENUE (GROSS)
Revenue from Operations 3,91,604.46 12,993.44 1,609.74 7,021.41 4,13,229.05
REVENUE FROM OPERATIONS (GROSS) 3,91,604.46 12,993.44 1,609.74 7,021.41 4,13,229.05

Income/Expenses
Segment Results / Segment Profit /(Loss) 2,18,147.24 1,360.92 810.70 5,378.10 2,25,696.96
Unallocated corporate expenses net of unallocated income 7,085.77
Operating Profit 2,18,611.19
Finance Costs 15,858.15
Interest & Dividend Income 13,060.49
Income Taxes
- Current Tax 73,942.13
- Deferred Tax 664.54

Profit / (Loss) from ordinary activities 1,41,206.86

OTHER INFORMATION
Segment Assets 53,840.42 4,127.03 7,129.01 37,469.38 1,02,565.84
Unallocated Corporate Assets 16,90,572.10
TOTAL ASSETS 17,93,137.94

Segment Liabilities & Provisions 41,478.10 1,546.33 1,768.68 137.35 44,930.46

Unallocated Corporate Liabilities 1,51,534.00
TOTAL LIABILITIES 1,96,464.46

Other Disclosures
Capital Expenditures (Including Capital Work-in-progress) 155.00 310.19 167.44 37.64 670.27
Unallocated Capital Expenditure 821.08
Depreciation/Amortization for the year 4,010.67 71.90 320.00 1,219.07 5,621.64
Unallocated Depreciation 99.15

GEOGRAPHICAL SEGMENTS

REVENUE FROM OPERATIONS (GROSS)

India 3,30,849.02
Overseas 82,380.03

CARRYING AMOUNT OF SEGMENT ASSETS

India 92,911.38
Overseas (Represents Debtors pertaining to Overseas Revenue) 9,654.46

Other Information :
a) Total amount of revenues from customer ( exceeding 10% of total revenues of the Company) is 44,827.98 Lakhs (Previous Year: 52,288.37 Lakhs) represented by one customer
and related to Iron Ore segment.

b) Details of country wise overseas sales : Year ended 2020-21 Year ended 2019-20

Singapore 58,678.90 56,826.71

Hong Kong 21,930.75 17,201.28
Dubai - 2,532.67
Switzerland - 3,003.68
Netherlands 560.12 1,194.72
United Arab Emirates - Sharjah - 318.98
United Arab Emirates - Ajman 1,089.20 964.17
Belgium - 1,260.40
Oman 100.72 15.53
China 16.77 -
Thailand 3.57 -

82,380.03 83,318.14
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728
in Lakhs
Year ended 31st March, 2020
Iron Ore Noble Ferro-Alloys Wind Power Mill Solar Power Total
REVENUE (GROSS)
Revenue from Operations 3,99,320.29 13,877.82 2,524.63 7,036.24 4,22,758.98
REVENUE FROM OPERATIONS (GROSS) 3,99,320.29 13,877.82 2,524.63 7,036.24 4,22,758.98

Income/Expenses
Segment Results/ Segment Profit / (Loss) 1,56,008.01 (428.25) 1,174.61 5,475.66 1,62,230.03
Unallocated corporate expenses net of unallocated income 12,329.22
Operating Profit 1,49,900.81
Finance Costs 22,787.14
Interest & Dividend Income 4,711.36
Income Taxes
- Current Tax 22,375.92
- MAT (19,051.49)
- Deferred Tax 42,232.22

Profit / (Loss) from ordinary activities 86,268.38

OTHER INFORMATION
Segment Assets 91,802.21 3,916.10 6,472.96 40,500.24 1,42,691.51
Unallocated Corporate Assets 14,53,308.45
TOTAL ASSETS 15,95,999.97
Segment Liabilities & Provisions 48,910.59 1,559.34 1,452.97 96.07 52,018.97
Unallocated Corporate Liabilities 2,38,695.45
TOTAL LIABILITIES 2,90,714.42

Other Disclosures
Capital Expenditures (Including Capital Work-in-progress) 2,009.27 294.35 167.44 98.03 2,569.09
Unallocated Capital Expenditure 339.74
Depreciation/Amortization for the year 22,003.06 56.20 307.26 1,216.61 23,583.13
Unallocated Depreciation 89.91

GEOGRAPHICAL SEGMENTS

REVENUE FROM OPERATIONS (GROSS)

India 3,39,440.84
Overseas 83,318.14

CARRYING AMOUNT OF SEGMENT ASSETS

India 1,23,408.69
Overseas (Represents Debtors pertaining to Overseas Revenue) 19,282.82
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

56. Fair values

Set out below is a comparison, by class, of the carrying amounts and fair value of the Company’s financial instruments, other than those with carrying amounts that are reasonable approximations of
fair values:
in Lakhs
31st March, 2021
FVTPL FVTOCI Amortized cost Total Carrying value
Financial Assets
Investments * 32,916.84 3,741.71 23,014.87 59,673.42 59,673.42
Cross currency interest rate swap 1,478.87 - - 1,478.87 1,478.87
Claims & Refunds Refundable - - 95.50 95.50 95.50
Total 34,395.71 3,741.71 23,110.37 61,247.79 61,247.79
Financial Liabilities
Borrowings - - 1,40,437.22 1,40,437.22 1,40,437.22
Forward contracts 68.36 - - 68.36 68.36
Financial Guarantee contracts - - 229.17 229.17 229.17
Total 68.36 - 1,40,666.39 1,40,734.75 1,40,734.75

31st March, 2020

FVTPL FVTOCI Amortized cost Total Carrying value
Financial Assets
Investments * 341.15 3,616.15 9,547.69 13,504.99 13,504.99
Cross currency interest rate swap 2,414.46 - - 2,414.46 2,414.46
Claims & Refunds Refundable - - 178.60 178.60 178.60
Total 2,755.61 3,616.15 9,726.29 16,098.05 16,098.05
Financial Liabilities
Borrowings - - 1,36,095.82 1,36,095.82 1,36,095.82
Financial Guarantee contracts - - 1,846.38 1,846.38 1,846.38
Total - - 1,37,942.20 1,37,942.20 1,37,942.20

* Excludes investments measured at cost / deemed cost (Refer note 5)

 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

The management assessed that cash and cash equivalents, security deposits, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts
largely due to the short-term maturities of these instruments.
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or
liquidation sale. The following methods and assumptions were used to estimate the fair values:
1) The fair values of the quoted equity shares are based on price quotations at the reporting date. The fair value of unquoted instruments, loans from banks and other financial liabilities, as well as
other non-current financial liabilities is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.
2) The fair values of the unquoted equity shares have been estimated using a Discounted Cash Flow (DCF) model or Net Asset Value (NAV), as considered appropriate. The valuation requires
management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility. The probabilities of the various estimates within the range can
be reasonably assessed and are used in management’s estimate of fair value for these unquoted equity investments. In case of instruments having option to convert with the Company, the
management has assigned probable likelihood of conversion depending on equity stake in the target entity, domain of operation and liquidity. Wherever, the probability is low, valuation has been done
based on redemption assumptions. In case of instruments where option to convert is with Issuer, redemption has been assumed.
3) The Company enters into derivative financial instruments with various counterparties, principally financial institutions with investment grade credit ratings. Cross currency interest rate swaps and
foreign exchange forward contracts are valued using valuation received from banks as on the period end.
4) The fair values of the Company’s interest-bearing and non-interest bearing borrowings and loans are determined by using DCF method using discount rate that reflects the issuer’s borrowing rate
as at the end of the reporting period.
The discount for lack of marketability represents the amounts that the Company has determined that market participants would take into account when pricing the investments.

The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy together with a quantitative sensitivity analysis as at 31st March, 2021 and
31st March, 2020 are as shown below:
Description of significant unobservable inputs to valuation:

Particulars Valuation Technique Significant Range Sensitivity of the input

unobservable inputs to fair value
Financial Guarantee obligations DCF method Commission rate 31st March, 2021: 0.15% 0.10% increase (decrease) would result in increase (decrease) in
31st March, 2020: 1% fair value by 152.78 Lakhs [31st March, 2020: 0.25% increase
(decrease) would result in increase (decrease) in fair value by
427.22 Lakhs]
Discount rate 31st March, 2021: 10.33% 1% Increase in the discount rate would decrease the fair value by
31st March, 2020: 11.73 10.36 Lakhs (31st March, 2020 : 65.54 Lakhs).
1% Decrease in the discount rate would increase the fair value by
11.06 Lakhs (31st March, 2020 : 69.78 Lakhs)
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

57. Fair Value Hierarchy

The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities. The financial instruments are categorized into three levels based on the inputs used to arrive
at fair value measurements as described below:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than the quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
in Lakhs
Fair value measurement hierarchy for assets as at 31st March, 2021 :
Fair value measurement using
Date of valuation Quoted prices in active Significant Significant
markets observable inputs unobservable inputs
Total (Level 1) (Level 2) (Level 3)
Assets measured at fair value:

Investments at fair value through PL (Note 56, 5)

Investments in quoted equity shares 31st March, 2021 289.57 289.57
Investments in unquoted preference shares 31st March, 2021 173.89 173.89
Investments in Mutual Funds 31st March, 2021 32,453.38 32,453.38

Investments at fair value through OCI Reserve (Note 56, 5)

Investments in unquoted equity shares 31st March, 2021 3,741.71 3,741.71

Investments measured at Amortised Cost (Note 56, 5)

Others 31st March, 2021 23,014.87 23,014.87

Cross currency interest rate swap 31st March, 2021 1,478.87 1,478.87
Claims & Refunds Refundable 31st March, 2021 95.50 95.50

There have been no transfers between Level 1 and Level 2 during the period.

Fair value measurement hierarchy for liabilities as at 31st March, 2021:

Fair value measurement using
Date of valuation Quoted prices in active Significant Significant
markets observable inputs unobservable inputs
Total (Level 1) (Level 2) (Level 3)
Liabilities measured at fair value:
Liabilities for which fair values are disclosed (Note 56):
Borrowings 31st March, 2021 1,40,437.22 1,40,437.22
Forward contracts 31st March, 2021 68.36 68.36
Financial Guarantee contracts 31st March, 2021 229.17 229.17

There have been no transfers between Level 1 and Level 2 during the period.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

Fair value measurement hierarchy for assets as at 31st March, 2020 : in Lakhs
Fair value measurement using
Date of valuation Quoted prices in active Significant Significant
markets observable inputs unobservable inputs
Total (Level 1) (Level 2) (Level 3)
Assets measured at fair value:

Investments at fair value through PL (Note 56, 5)

Investments in quoted equity shares 31st March, 2020 198.81 198.81
Investments in unquoted preference shares 31st March, 2020 142.34 142.34

Investments at fair value through OCI Reserve (Note 56, 5)

Investments in unquoted equity shares 31st March, 2020 3,616.15 3,616.15

Investments measured at Amortised Cost (Note 56, 5)

Others 31st March, 2020 9,547.69 9,547.69

Cross currency interest rate swap 31st March, 2020 2,414.46 2,414.46
Claims & Refunds Refundable 31st March, 2020 178.60 178.60
There have been no transfers between Level 1 and Level 2 during the period.

Fair value measurement hierarchy for liabilities as at 31st March, 2020 :

Fair value measurement using
Date of valuation Quoted prices in active Significant Significant
markets observable inputs unobservable inputs
Total (Level 1) (Level 2) (Level 3)
Liabilities measured at fair value:
Liabilities for which fair values are disclosed (Note 56):
Borrowings 31st March, 2020 1,36,095.82 1,36,095.82
Financial Guarantee contracts 31st March, 2020 1,846.38 1,846.38
There have been no transfers between Level 1 and Level 2 during the period.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

58. Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity
reserves attributable to the equity holders. The primary objective of the Company’s capital management is to maximise the shareholder
value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of
the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders,
return capital to shareholders or issue new shares. The Company monitors capital using a Current Ratio and Debt Equity ratio.
The Company is not subject to any externally imposed capital requirements.

in Lakhs
As at 31st March, As at 31st March,
Quantitative data
2021 2020
Current Assets 3,27,270.02 1,05,628.50
Current Liabilities 62,198.37 1,78,086.52
Current Ratio 5.26 0.59
Debt * 1,40,444.43 2,26,655.70
Equity 15,96,673.48 13,05,285.55
Debt Equity Ratio 0.09 0.17

* Debt = Non-current Borrowings + Current Borrowings + Current maturities of Long Term Borrowings

In order to achieve this overall objective, the Company’s capital management, amongst other things including working capital
management, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital
structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings.
There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

59. Details of loans given, investment made and guarantee given covered under section 186(4) of the Companies Act. 2013:

Details of investments made have been given as part of Note ‘5(i)’ Investments in Subsidiary and Note ‘5(ii)’ Other Investments.
in Lakhs
Nature of As at As at
Name of the Company Relationship
Transactions 31st March, 2021 31st March, 2020
Details of Loans
IGH Holdings Pvt. Ltd. Subsidiary Loans 1,66,500.00 4,000.00
Pro Minerals Pvt. Ltd. Subsidiary Loans 3,000.00 -
EMIL Mines and Mineral Ltd. Subsidiary Loans 1,105.00 -
Electrotherm Renewables Pvt. Ltd. Subsidiary Loans 1,585.00 1,585.00
Keonjhar Infrastructure Development Co. Ltd. Others Loans 166.50 215.00
Details of Guarantee
Pro Minerals Pvt. Ltd. Subsidiary Financial Guarantee 60,000.00 60,000.00
EMIL Mines And Mineral Resources Ltd. Subsidiary Financial Guarantee 19,000.00 -
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

60. Financial risk management objectives and policies

The Company’s principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables, and financial
guarantee contracts. The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to
support its operations. The Company’s principal financial assets include loans, investments at Fair Value, trade and other receivables,
and cash and cash equivalents.

The Company is exposed to market risk and credit risk. The Company’s senior management oversees the management of these risks
and is supported by professional managers who advise on financial risks and assist in preparing the appropriate financial risk
governance framework for the Company. It provides assurance to the Company’s senior management that the Company’s financial risk
activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in
accordance with the Company’s policies and risk objectives. All derivative activities for risk management purposes are carried out by
specialist teams that have the appropriate skills, experience and supervision. It is the Company’s policy that no trading in derivatives for
speculative purposes can be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks which are
summarized below:

(A) Market risk

Market risk is the risk when the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as commodity price risk. Financial
instruments affected by market risk include borrowings, deposits, derivative financial instruments, FVTPL Investments, etc.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt
obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable
rate loans and borrowings.
(ii) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign
exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating
activities (when revenue or expense is denominated in a foreign currency).
The Company manages its foreign currency risk by hedging transactions as per it's Forex Risk Management Policy.
(iii) Commodity price risk
The Company is affected by the price volatility of key commodities like iron ore, steel, ferro alloys, crude oil, etc. Changes in price of iron
ore in international and domestic markets directly impact the realization. The price movement is being closely monitored by each unit for
taking timely action.
(B) Investment risk
The Company has investments in both equity and debt instruments. Investments in debt instruments are subject to risks like changes in
Interest Rate, credit risk profile of the investee, etc. Investments in equity market are also subject to above risks coupled with business
risks associated with the Industry in which the investee is operating. As the Company has significant investments in unlisted entities,
there is also marketability/liquidity risks.
(C) Regulatory risk
The Company performance may be impacted due to change in Regulatory Environment. Company is closely monitoring the regulatory
developments and risks thereof and proactively implementing course correction for proper compliance commensurate with new
regulatory requirements.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

(D) Liquidity Risk

The Company determines its liquidity requirements in the short, medium and long term. This is done by drawing up cash forecast for short and
medium term requirements and strategic financing plans for long term needs.

The Company manages its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such
risks is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalents position. The
management has arranged for diversified funding sources and adopted a policy of managing assets (including mutual funds) which provide
flexibility to liquidate at short notice and are included in current investments and cash equivalents. Besides, it generally has certain undrawn
credit facilities which can be accessed as and when required, which are reviewed periodically.

The Company has developed appropriate internal control systems and contingency plans for managing liquidity risk. This incorporates an
assessment of expected cash flows and availability of alternative sources for additional funding, if required.

(i) Financing Arrangement

The Company had access to the following undrawn borrowing facilities at the end of the reporting period.
in Lakhs
As at 31st As at 31st
March, 2021 March, 2020
Cash Credit and other facilities 14,492.79 6,816.05

Undrawn limit has been calculated based on the available drawing power and sanctioned amount at each reporting date.

(ii) Maturity Analysis

The Company's financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities.
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances
as the impact of discounting is not significant.

Contractual maturities of financial liabilities as at 31st March, 2021 : in Lakhs

Less than 1 1 year to 2 2 years to 5 More than 5
Total
year years years years Carrying Value

Borrowings * 21,460.11 18,408.13 98,182.25 54,224.72 1,92,275.21 1,42,937.28

Other financial liabilities - - - 1,935.00 1,935.00 1,258.81
Trade payables 27,293.02 - - - 27,293.02 27,293.02

48,753.13 18,408.13 98,182.25 56,159.72 2,21,503.23 1,71,489.11

Contractual maturities of financial liabilities as at 31st March, 2020 :

Less than 1 2 years to 5 More than 5
Total
year 1 year to 2 years years years Carrying Value

Borrowings * 1,28,113.67 70,522.93 43,343.97 2,031.08 2,44,011.65 2,29,553.89

Other financial liabilities - - - 1,935.00 1,935.00 1,143.49
Trade payables 27,319.72 - - - 27,319.72 27,319.72

1,55,433.39 70,522.93 43,343.97 3,966.08 2,73,266.37 2,58,017.10

* Includes Principal and interest payments, short term borrowings and current portion of Non-current borrowings.
 ESSEL MINING & INDUSTRIES LIMITED
Notes to Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

(E) Credit risk

Derivative Instruments and Unhedged Foreign Currency Exposure :

(i) Details of Derivative Instruments: As at 31st March, 2021 As at 31st March, 2020
Currency in Lakhs in Lakhs
Forward contracts to hedge highly probable forecast
transactions in foreign currency :
Probable Receivable US$ - - 78,41,522 5,911.40
Probable Payable US$ 1,16,753 85.82 2,92,707 220.66

Derivative instruments to hedge :

Foreign Currency Loan * US$ 8,64,50,608 63,545.26 1,87,68,074 14,148.48
Trade Receivables US$ 1,30,01,506 9,556.72 2,51,53,455 18,962.16
Trade Receivables EUR - - 1,94,516 161.54

(ii) Foreign Currency exposures are hedged through

Natural Hedge as on the Balance Sheet Date

Trade Payable US$ 1,32,977 97.74 10,39,186 783.40

(iii) Foreign Currency exposures are not hedged as

on the Balance Sheet Date :
Trade Receivables EUR - - 2,801 2.33
Trade Payable # US$ 63,439 46.63 9,22,961 695.78
* Includes forward contracts amounting to US$ 7,20,55,677.33 to fully hedged Foreign Currency Loan taken by the Company as a sub-limit to the Rupee Term
Loan facility. Foreign Currency Loan will be replaced with Rupee Term Loan at the end of tenure [Refer Note No. 19 (vii) (a & b)].
# Natural hedge includes exposures which are netted (i.e. long and short exposures in the same currency).

Trade receivables
Customer credit risk is managed by each business unit subject to the Company’s policy, procedures and control relating to customer credit risk management.
Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this
assessment and performance of the customers. Outstanding customer receivables are regularly monitored.
The ageing analysis of the receivables (before provision) has been considered from the date invoice falls due.
n Lakhs
Trade Receivables < 30 days 31 - 90 days 91 - 180 days > 180 days Total
As at 31st March, 2021 21,491.87 6,065.14 1,242.24 784.58 29,583.83
As at 31st March, 2020 33,781.26 4,909.32 1,546.74 1,317.81 41,555.13

(F) Estimation uncertainty relating to the global health pandemic on COVID-19

The Company has taken into account all the possible impacts of COVID-19 in preparation of these standalone financial statements, including but not limited to
its assessment of, liquidity and going concern assumption, the recoverability of property plant and equipment, receivables, intangible assets, cash and cash
equivalent and investments. The Company has carried out this assessment based on available internal and external sources of information upto the date of
approval of these financial statements and believes that the impact of COVID-19 is not material to these financial statements and expects to recover the carrying
amount of its assets. The impact of COVID-19 on the financial statements may differ from that estimated as at the date of approval of these standalone financial
statements owing to the nature and duration of COVID-19.

61. Previous year figures including those given in the brackets have been re-grouped and/or re-arranged wherever necessary to correspond with current year
classification / disclosure.

As per our report of even date For and on behalf of the Board

For SINGHI & CO. Sd/-

Chartered Accountants Tuhin Kumar Mukherjee
Firm Registration Number: 302049E Managing Director
DIN - 01163569

Sd/- Sd/- Sd/-

Navindra Kumar Surana Sunil Kumar Daga Giriraj Maheswari
Partner Director Director
Membership No.053816 DIN - 00441579 DIN - 00796252

Sd/- Sd/-
Place: Kolkata Arun Garg Dhananjoy Karmakar
Dated: 29th June, 2021 Chief Financial Officer Company Secretary
 INDEPENDENT AUDITOR’S REPORT

To the Members of Essel Mining & Industries Limited

Independent Auditor’s Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the accompanying consolidated financial statements of Essel Mining & Industries Limited (“herein
referred to as the “ Holding Company”), and its subsidiaries (the Holding Company and its subsidiaries together referred
to as “the Group”), and its associate, which comprise the consolidated balance sheet as at March 31 2021, the
consolidated statement of profit and loss, (including the statement of other comprehensive income), the consolidated
cash flow statement and the consolidated statement of changes in equity for the year then ended and notes to the
consolidated financial statements, including a summary of significant accounting policies and other explanatory
information (hereinafter referred to as “the consolidated financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
consolidated financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner
so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the
consolidated state of affairs of the Group, and its associate company as at March 31, 2021, of consolidated total
comprehensive income (comprising of profit and other comprehensive income), consolidated changes in equity and its
consolidated cash flows for the year then ended.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act.
Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements section of our report. We are independent of the Group and associate company in
accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in India
in terms of the Code of Ethics issued by ICAI and the relevant provisions of the Act, and we have fulfilled our other
ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained
and the audit evidence obtained by the other auditors in terms of their reports referred to in other matter paragraph
below, other than the unaudited financial statements/ financial information as certified by the management and
referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our opinion.

Information Other than the Consolidated Financial Statements and Auditor’s Report Thereon
The Holding Company’s Board of Directors is responsible for the preparation of the other information. The other
information comprises the information included in the annual reports, but does not include the consolidated financial
statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial
statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information;
we are required to report that fact. We have nothing to report in this regard.

Responsibilities of management and those charged with the governance for the consolidated financial statements
The Holding Company’s Board of Directors is responsible for the preparation and presentation of these consolidated
financial statements in terms of the requirements of the Companies Act, 2013 (hereinafter referred to as “the Act”) that
give a true and fair view of the consolidated financial position, consolidated financial performance (including other
comprehensive Income ), consolidated cash flows and consolidated changes in equity of the Group including its
associate in accordance with accounting principles generally accepted in India including the Indian Accounting
Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the
Act. The respective Board of Directors of the companies included in the Group and of its associate are responsible for
maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of
the Group and its associates respectively and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and
the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the
consolidated financial statements that give a true and fair view and are free from material misstatement, whether due
to fraud or error, which have been used for the purpose of preparation of the consolidated financial statements by the
Directors of the Holding Company, as aforesaid.
In preparing the consolidated financial statements, the respective Board of Directors of the companies included in the
Group and of its associates are responsible for assessing the ability of Group and of its associates to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the Group or its associates or to cease operations, or has no realistic
alternative but to do so.
The respective Board of Directors of the companies included in the Group and of its associate are responsible for
overseeing the Group’s financial reporting process and of its associates.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism
throughout the audit. We also:

 Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our
opinion on whether the Holding Company has adequate internal financial controls system with respect to
financial statements in place and the operating effectiveness of such controls.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
 Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the ability of the Group and of its associates to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group and its associates to cease to continue as a going
concern.
 Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
disclosures, and whether the consolidated financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
 Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are responsible
for the direction, supervision and performance of the audit of the financial statements of such entities included
in the consolidated financial statements of which we are the independent auditors. For the other entities
included in the consolidated financial statements, which have been audited by other auditors, such other
 auditor remains responsible for the direction, supervision and performance of the audit carried out by them.
We remain solely responsible for our audit opinion.
Materiality is the magnitude of misstatements in the consolidated financial statements that, individually or in
aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the consolidated
financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the
scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified
misstatements in the consolidated financial statements.
We communicate with those charged with governance of the Holding Company and such other entities included in the
consolidated financial statements of which we are the independent auditors regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matters

 We did not audit the financial statements/financial information of two subsidiaries whose financial
statements/ financial information reflect total assets of Rs. 74,828.76 lakhs and net assets Rs. 58,020.05 lakhs
as at March 31, 2021 and total revenues of Rs. 54,747.33 lakhs and total comprehensive income of Rs. 8,607.44
lakhs for the year ended on that date and net cash out flow of Rs. 32.87 lakhs as considered in the consolidated
financial statements. The statement also includes the Group’s share of total comprehensive income of Rs.
2,834.04 lakhs for the year ended March 31, 2021, in respect of one associate, whose financial
statements/financial information have not been audited by us. These financial statements have been audited
by other auditors whose reports have been furnished to us by the Management and our opinion on the
consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of
these subsidiaries and that of associate and our report in terms of sub-section (3) of Section 143 of the Act is
based solely on the reports of the other auditors.

 The consolidated financial statements include the financial statement/ financial information of one subsidiary
which have not been audited by their auditors, whose financial statement/ financial information reflect total
assets of Rs. NIL lakhs as at March 31, 2021, total revenue of Rs. NIL lakhs, total net profit after tax of Rs. NIL
lakhs and total comprehensive income of Rs. NIL lakhs for the year ended March 31, 2021, as considered in the
consolidated financial statements have been approved and furnished to us by the management and our
opinion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these
subsidiary is based solely on such unaudited financial statements and other unaudited financial information
certified by the management of the Holding company. According to the information and explanations given to
us by the Management, these financial statements/ financial information are not material to the Group.
Our opinion on the consolidated financial statements and our report on other legal and regulatory requirements below
is not modified in respect of the above matters with regard to our reliance on the work done and the reports of the
other auditors and management certified financial statements.

Report on Other Legal and Regulatory Requirements

As required by Section 143(3) of the Act, based on our audit and on the consideration of the report of other auditors on
separate financial statements and the other financial information of subsidiaries and its associate, as noted in the
“Other Matter” paragraph, we report to the extent applicable that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit of the aforesaid consolidated financial statements.
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated
financial statements have been kept so far as it appears from our examination of those books and report of other
auditors.
(c) The consolidated balance sheet, the consolidated statement of profit and loss including other comprehensive
income, the consolidated cash flow statement and consolidated statement of changes in equity dealt with by this
 Report are in agreement with the relevant books of account maintained for the purpose of preparation of the
consolidated financial statements.
(d) In our opinion, the aforesaid consolidated financial statements comply with the Accounting Standards specified
under Section 133 of the Act read with companies (Indian Accounting Standards) rules, 2015 as amended.
(e) On the basis of the written representations received from the directors of the Holding Company as on March 31,
2021 taken on record by the Board of Directors of the Holding Company and the reports of statutory auditors of its
subsidiary companies, incorporated in India, none of the directors of the Group companies, incorporated in India is
disqualified as on March 31, 2021 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Group
and the operating effectiveness of such controls; refer to our separate Report in “Annexure A”.
(g) The group and its associate company has paid /provided for managerial remuneration in accordance with the
requisite approval mandated by the provision of section 197 read with schedule V to the Act.
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and
according to the explanations given to us;
I. The consolidated financial statements disclose the impact of pending litigations on the consolidated
financial position of the Group and its associates – Refer Note No. 44 to the consolidated financial
statements ;

II. The group and its associates did not have any material foreseeable losses on long-term contracts including
derivatives contracts during the year ended March 31, 2021.

III. There were no amounts which were required to be transferred to the Investors Education and Protection
Fund by the Holding Company, its subsidiaries and associates incorporated in India during the year ended
March 31, 2021.

For Singhi & Co.

Chartered Accountants
Firm Registration No.302049E

Sd/-
(Navindra Kumar Surana)
Partner
Membership No.053816
UDIN:21053816AAAAGZ7871
Place: Kolkata
Date: August 25, 2021
ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph (f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even
date to the members of the Essel Mining & Industries Limited on the consolidated financial statements for the year
ended March 31, 2021).

Report on the Internal Financial Controls with reference to financial statements under Clause (i) of Sub-section 3 of
Section 143 of the Companies Act, 2013 (“the Act”)

In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended
March 31, 2021, we have audited the internal financial controls over financial reporting of Essel Mining & Industries
Limited (‘the Holding Company’), its subsidiary companies and its associates which are companies incorporated in India,
as of that date.

Management’s Responsibility for Internal Financial Controls

The Respective Board of Directors of the Holding Company, its subsidiary companies and associate company , to whom
reporting under clause (i) of sub section 3 of section 143 of the Act in respect of adequacy of the internal financial
controls over financial reporting with reference to the financial statements is applicable, which are companies
incorporated in India, are responsible for establishing and maintaining internal financial controls based on the internal
control over financial reporting criteria established by the Holding Company considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by
the Institute of Chartered Accountants of India (“ICAI”). These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and
efficient conduct of its business, including adherence to respective company’s policies , the safeguarding of its assets,
the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the
timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditor’s Responsibility
Our responsibility is to express an opinion on the Holding Company’s internal financial controls over financial reporting
with reference to financial statement based on our audit. We conducted our audit in accordance with the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) issued by the ICAI and the
Standards on Auditing deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate
internal financial controls with reference to financial statement was established and maintained and if such controls
operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
over financial reporting with reference to financial statement and their operating effectiveness. Our audit of internal
financial controls over financial reporting with reference to financial statement included obtaining an understanding of
internal financial controls over financial reporting with reference to financial statement, assessing the risk that a
material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on
the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of
material misstatement of the consolidated financial statements, whether due to fraud or error.

We believe that the audit evidence obtained by us and the audit evidence obtained by other auditors of the subsidiaries
and its associate company, which are companies incorporated in India, in terms of their reports referred to in ‘Other
Matter’ paragraph below is sufficient and appropriate to provide a basis for our audit opinion on the Holding
Company’s internal financial controls over financial reporting with reference to financial statements.

Meaning of Internal Financial Controls over financial reporting with reference to financial statements
A company’s internal financial control over financial reporting with reference to financial statements is a process
designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles. A Company’s internal
financial control over financial reporting with reference to financial statement includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions
and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance with generally accepted accounting principles,
and that receipts and expenditures of the Company are being made only in accordance with authorisations of
management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely
detection of unauthorised acquisition, use, or disposition of the Company’s assets that could have a material effect on
the financial statements.

Inherent Limitations of Internal Financial Controls over financial reporting with reference to financial statement

Because of the inherent limitations of internal financial controls over financial reporting with reference to financial
statements, including the possibility of collusion or improper management override of controls, material misstatements
due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial
controls over financial reporting with reference to financial statements to future periods are subject to the risk that the
internal financial control over financial reporting with reference to financial statements may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion
In our opinion, the Holding Company, its subsidiary companies and its associates, which are companies incorporated in
India have, in all material respects, an adequate internal financial controls over financial reporting system with
reference to financial statements and such internal financial controls over financial reporting with reference to financial
statement were operating effectively as at March 31, 2021, based on the internal control over financial reporting
criteria established by the Holding Company considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.

Other Matter
Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal
financial controls over financial reporting with reference to financial statements in so far as it relates to two
subsidiaries and one associate, which are companies incorporated in India, is based on the corresponding reports of the
auditors of such subsidiaries and associate companies incorporated in India. Our Opinion is not modified in respect of
this matter.

For Singhi & Co.

Chartered Accountants
Firm Registration No.302049E

Sd/-
(Navindra Kumar Surana)
Partner
Membership No.053816
UDIN: 21053816AAAAGZ7871
Place: Kolkata
Date: August 25, 2021
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH, 2021
CIN: U51109WB1950PLC018728
in Lakhs
As at As at
Particulars Note No. 31st March, 2021 31st March, 2020
I ASSETS
1) Non-Current Assets
a) Property, Plant and Equipment 3(i) 1,09,292.40 87,858.04
b) Capital Work - in - Progress 3(ii) 11,087.36 23,147.67
c) Intangible Assets 4(i) 332.14 1,133.45
d) Intangible Assets under Development 4(ii) 550.59 -
e) Right of use - Lease Assets 4(iii) 1,862.40 1,920.98
f) Investments in Associates 5(i) 59,066.47 56,232.44
g) Financial Assets
i) Other Investments 5(ii) 22,02,681.10 7,42,247.55
ii) Loans 6 315.26 314.56
iii) Other Financial Assets 7 10,072.01 11,065.34
h) Deferred Tax Assets 37 15,146.77 48,837.20
i) Other Non-Current Assets 8 4,376.12 1,679.41
24,14,782.62 9,74,436.64
2) Current Assets
a) Inventories 9 18,519.99 23,035.70
b) Financial Assets
i) Investments 10 39,645.81 12,183.72
ii) Loans 11 1,39,764.28 45,603.16
iii) Trade Receivables 12 42,368.48 57,772.15
iv) Cash and Bank Balances
- Cash and Cash Equivalents 13(i) 3,314.85 5,096.76
- Bank Balances other than Cash and Cash 25,529.99 380.57
13(ii)
Equivalents 13 (i) above
v) Other Financial Assets 14 54,496.08 6,737.69
c) Current Tax Assets (Net) 15 10,983.73 12,527.69
d) Other Current Assets 16 18,217.87 27,777.09
3,52,841.08 1,91,114.53

Total Assets 27,67,623.70 11,65,551.17

II EQUITY AND LIABILITIES

1) Equity
a) Equity Share Capital 17 1,95,821.09 1,80,757.93
b) Other Equity 18 21,02,867.50 4,96,105.07
Equity attributable to Equity holders of the parent 22,98,688.59 6,76,863.00
c) Non-controlling interests 22,458.50 19,218.85
Total Equity 23,21,147.09 6,96,081.85

2) Liabilities
i) Non-Current Liabilities
a) Financial Liabilities
- Borrowings 19 1,63,155.50 1,36,979.77
- Other Financial Liabilities 20 1,294.52 1,179.91
b) Provisions 21 142.17 142.17
c) Other Non-Current Liabilities 22 2,948.27 3,010.77
1,67,540.46 1,41,312.62
ii) Current Liabilities
a) Financial Liabilities
- Borrowings 23 1,88,933.34 2,18,337.59
- Trade Payables 24
Total outstanding dues of micro enterprises 123.11 66.87
and small enterprises
Total outstanding dues of creditors other than 41,444.54 40,568.63
micro enterprises and small enterprises
- Other Current Financial Liabilities 25 22,240.58 37,827.23
b) Provisions 26 1,601.96 1,742.64
c) Current Tax Liabilities (Net) 27 4,457.02 4,115.11
d) Other Current Liabilities 28 20,135.60 25,498.63
2,78,936.15 3,28,156.70

Total Liabilities 4,46,476.61 4,69,469.32

Total Equity and Liabilities 27,67,623.70 11,65,551.17

Summary of Significant Accounting Policies 2.2

The accompanying notes are an integral part of the Financial Statements

As per our report of even date For and on behalf of the Board

For SINGHI & CO. Sd/-

Chartered Accountants Tuhin Kumar Mukherjee
Firm Registration Number: 302049E Managing Director
DIN - 01163569

Sd/- Sd/- Sd/-

Navindra Kumar Surana Sunil Kumar Daga Giriraj Maheswari
Partner Director Director
Membership No.053816 DIN - 00441579 DIN - 00796252

Sd/- Sd/-
Place: Kolkata Arun Garg Dhananjoy Karmakar
Dated: 25th August, 2021 Chief Financial Officer Company Secretary
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2021
CIN: U51109WB1950PLC018728

in Lakhs

Income Note No. 2020-21 2019-20

I. Revenue from Operations 29 5,13,469.86 5,20,271.28

II. Other Income 30 31,803.44 7,720.88
III. Total Income - (I + II) 5,45,273.30 5,27,992.16

IV. Expenses
Cost of Raw Materials Consumed 31 10,668.66 8,214.67
(Increase)/Decrease in Inventories of Finished Goods and Work-in-Progress 32 3,377.31 (5,888.76)

Employee Benefits Expenses 33 15,275.24 16,516.38

Transportation and dispatch expenses 77,421.42 1,01,280.42
Finance Costs 34 30,949.34 51,825.22
Depreciation & Amortization Expenses 35 13,308.24 30,728.41
Other Expenses 36 1,61,457.00 2,05,426.81
Total Expenses - (IV) 3,12,457.21 4,08,103.15
V. Profit / (Loss) Before Share of Profit / (Loss) in Equity Accounted 2,32,816.09 1,19,889.01
Investments and Tax - V = [(III) - (IV)]
VI. Add: Share of Profit / (Loss) in Equity Accounted Investments 2,804.16 3,273.11
VII. Profit / (Loss) for the year before Tax - VII = [(V) + (VI)] 2,35,620.25 1,23,162.12

VIII. Tax Expenses

1. Current Tax 37 79,477.34 28,652.37
2. MAT credit entitlement 37 (482.43) (19,500.08)
3. Deferred Tax charge / (credit) 37 (5,882.18) 42,174.93
4. For earlier years (434.60) (0.42)
Total Tax Expense / (credit) - (VIII) 72,678.13 51,326.80

IX. Profit / (Loss) for the year - IX = (VII - VIII) 1,62,942.12 71,835.32

X. Other Comprehensive Income (OCI)

Other Comprehensive Income not to be reclassified to Profit / (Loss) in

subsequent periods -
Fair value Gain / (Loss) on FVTOCI Investments (Net) 13,22,070.44 (7,34,573.22)
Net Gain / (Loss) on disposal of FVTOCI Investments - 59,428.09
Income Tax effect on above (10,041.13) (4,638.01)
Re-measurement Gains/ (Losses) on defined benefit plans 164.28 (417.81)
Income Tax effect on above (60.23) 143.14
Share of Other Comprehensive Income of Associate Enterprises 29.88 7.89
Other Comprehensive Income for the year, net of tax - (X) 13,12,163.24 (6,80,049.92)

XI. Total Comprehensive Income for the year - [(IX) + (X)] 14,75,105.36 (6,08,214.60)

Profit / (Loss) for the year 1,62,942.12 71,835.32

Attributable to:
Owners of the Company 1,59,697.34 67,787.84
Non-controlling interests 3,244.78 4,047.48

Other Comprehensive Income for the year 13,12,163.24 (6,80,049.92)

Attributable to:
Owners of the Company 13,12,168.38 (6,80,037.62)
Non-controlling interests (5.14) (12.30)

Total Comprehensive Income for the year 14,75,105.36 (6,08,214.60)

Attributable to:
Owners of the Company 14,71,865.72 (6,12,249.78)
Non-controlling interests 3,239.64 4,035.18

Earnings per Equity Share 38

(Nominal value of share 10/- each)

- Basic EPS ( ) 8.25 3.75

- Diluted EPS ( ) 8.06 3.75

Summary of Significant Accounting Policies 2.2

The accompanying notes are an integral part of the Financial Statements

As per our report of even date For and on behalf of the Board

For SINGHI & CO. Sd/-

Chartered Accountants Tuhin Kumar Mukherjee
Firm Registration Number: 302049E Managing Director
DIN - 01163569

Sd/- Sd/- Sd/-

Navindra Kumar Surana Sunil Kumar Daga Giriraj Maheswari
Partner Director Director
Membership No.053816 DIN - 00441579 DIN - 00796252

Sd/- Sd/-
Place: Kolkata Arun Garg Dhananjoy Karmakar
Dated: 25th August, 2021 Chief Financial Officer Company Secretary
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST MARCH, 2021
CIN: U51109WB1950PLC018728

in Lakhs
(A) Equity Share Capital
Number Amount
Equity Shares of 10/- each issued, subscribed and fully paid
At 31st March, 2019 9,65,979 96.60
Issued during the year 2019-20 2,38,271 23.83
Issued Bonus Shares during the year 1,80,63,75,000 1,80,637.50
At 31st March, 2020 1,80,75,79,250 1,80,757.93
Issued during the year 15,06,31,603 15,063.16
At 31st March, 2021 1,95,82,10,853 1,95,821.09

(B) Other Equity

Equity Component Reserves and Surplus Items of OCI

of compound
Financial Net Gain /
Particulars Investment Capital Debenture Total
Instruments Capital General Amalgamation Securities Retained Special (Loss) on
Subsidy Redemption Redemption
(Convertible Reserve Reserve Reserve Premium Earnings Reserve * FVTOCI
Reserve Reserve Reserve
Debentures) Investments
Balance as on 31st March, 2019 - 28.90 356.75 1,49,850.00 17,250.00 1,87,106.88 - 4,60,279.85 (1,07,034.22) 4,370.92 5,14,449.96 12,26,659.04
Profit / (Loss) for the year - - - - - - - - 67,787.84 - - 67,787.84
Impact on adoption of Ind AS 116 - Leases - - - - - - - - (8.11) - - (8.11)
Net Gain / (Loss) on FVTOCI Investments - - - - - - - - - - (6,79,775.26) (6,79,775.26)
Re-measurement Gains/ (Losses) on defined benefit plans - - - - - - - - (262.37) - - (262.37)
Utilised for issue of Bonus Shares during the year - - - (1,49,600.00) - - - (31,037.50) - - - (1,80,637.50)
Transferred on account of Amalgamation (Refer note 49) - - - - - 41.06 - - (1,96,671.57) 429.03 - (1,96,201.48)
Created on account of Amalgamation (Refer note 49) - - - - - - 3,393.32 - - - - 3,393.32
Transfer to General Reserve - - - - (11,875.00) 11,875.00 - - - - - -
Transfer from FVTOCI Reserve - - - - - - - - 54,778.09 - (54,778.09) -
Transfer from Retained Earnings - - - - 8,125.00 - - - (8,125.00) - - -
Transfer to Reserve Fund under RBI Act, 1934 - - - - - - - - - - - -
Premium on issue of Equity Shares - - - - - - - 2,55,175.99 - - - 2,55,175.99
Payment of Cash Dividend for FY 2018-19 - - - - - - - - (21.90) - - (21.90)
Payment of Dividend Distribution Tax for FY 2018-19 - - - - - - - - (4.50) - - (4.50)

Balance as on 31st March, 2020 - 28.90 356.75 250.00 13,500.00 1,99,022.94 3,393.32 6,84,418.34 (1,89,561.74) 4,799.95 (2,20,103.39) 4,96,105.07

Profit / (Loss) for the year - - - - - - - - 1,59,697.34 - - 1,59,697.34

Net Gain / (Loss) on FVTOCI Investments - - - - - - - - - - 13,12,059.19 13,12,059.19
Re-measurement Gains/ (Losses) on defined benefit plans - - - - - - - - 109.19 - - 109.19
Equity component of compound Financial Instruments (Compulsorily 65,606.17 - - - - - - - - - - 65,606.17
Convertible Debentures)
Transfer to General Reserve - - - - (13,500.00) 13,500.00 - - - - - -
Premium on issue of Equity Shares - - - - - - - 69,290.54 - - - 69,290.54

Balance as on 31st March, 2021 65,606.17 28.90 356.75 250.00 - 2,12,522.94 3,393.32 7,53,708.88 (29,755.21) 4,799.95 10,91,955.80 21,02,867.50

* Created pursuant to Section 45 IC of the Reserve Bank of India Act, 1934.

As per our report of even date For and on behalf of the Board

For SINGHI & CO. Sd/-

Chartered Accountants Tuhin Kumar Mukherjee
Firm Registration Number: 302049E Managing Director
DIN - 01163569

Sd/- Sd/- Sd/-

Navindra Kumar Surana Sunil Kumar Daga Giriraj Maheswari
Partner Director Director
Membership No.053816 DIN - 00441579 DIN - 00796252

Sd/- Sd/-
Place: Kolkata Arun Garg Dhananjoy Karmakar
Dated: 25th August, 2021 Chief Financial Officer Company Secretary
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST MARCH, 2021
CIN: U51109WB1950PLC018728

2020-21 2019-20
A. Cash Flow from Operating Activities
Profit / (Loss) before tax 2,32,816.09 1,19,889.01

Adjustments to reconcile Profit / (Loss) before tax to net Cash Flows:

Depreciation and Amortization 13,308.24 30,728.41
Loss on sale / discard of Property,Plant & Equipment 382.07 (71.59)
Capital Work-in-Progress written off - 222.23
Irrecoverable Loans / Debts & Advances written off 21.33 -
Contingent provision against Standard Assets 389.18 (211.27)
Dividend Income (5,180.06) (7,382.34)
Unrealised Foreign Exchange Loss / (Gain) (10.85) 309.43
Unclaimed Balances written back / Liabilities and Provisions no longer required written back (1,936.98) (2,157.46)
Finance Costs 30,949.34 51,825.22
Interest Income (14,751.33) (6,939.37)
Fair value (Gain) / Loss on financial instruments through Profit or Loss (22,626.59) 7,900.17
(Profit) / Loss on sale of Current and Long Term Investments (Net) (942.70) (910.25)

Working capital adjustments:

(Increase)/Decrease in Trade and other Receivables (17,419.31) (33,708.81)
(Increase)/Decrease in Inventories 4,515.72 (6,658.62)
Increase/(Decrease) in Trade Payables, Other Liabilities and Provisions (4,252.02) 22,337.59
2,15,262.13 1,75,172.35
Income Tax Paid (37,967.74) (34,325.48)
Net Cash Flows from / (used in) Operating Activities (A) 1,77,294.39 1,40,846.87

B. Cash Flow from Investing Activities

Sale of Fixed Assets 392.73 223.23
Purchase of Fixed Assets (18,955.73) (9,079.79)
Purchase of Investments (5,37,836.72) (6,63,006.53)
Sale of Investments 3,95,614.68 7,01,326.44
Loans & Inter - Corporate Deposits given (4,62,156.00) (2,16,920.00)
Loans & Inter - Corporate Deposits received back 3,67,994.18 2,21,288.46
Fixed Deposits (25,185.26) (393.13)
Interest received 6,859.43 7,138.80
Dividend received 5,180.06 7,382.34
Net Cash Flows from / (used in) Investing Activities(B) (2,68,092.63) 47,959.82

C. Cash Flow from Financing Activities

Issue of Equity Share Capital (including Securities Premium) 84,353.70 2,55,199.82
Proceeds from Compulsorily Convertible Debentures 82,800.00 -
Proceeds from Non - current borrowings 1,07,206.87 58,325.03
Repayment of Non - current Borrowings (1,21,281.73) (3,75,055.85)
Net Increase /(Decrease) in Short - Term Borrowings (29,404.25) (42,569.36)
Dividend paid on Equity Shares (including Dividend distribution tax) - (26.40)
Interest paid (34,658.26) (85,282.83)
Net Cash Flows from / (used in) Financing Activities ( C) 89,016.33 (1,89,409.59)

Net increase / (Decrease) in Cash and Cash Equivalents (1,781.91) (602.90)

Cash & Cash Equivalents at the beginning of the year 5,096.76 4,422.69
Add: Cash and Cash Equivalents on account of amalgamation - 1,276.97
Cash & Cash Equivalents at the end of the year 3,314.85 5,096.76

D. For the purpose of the statement of cash flows, cash and cash equivalents comprise the following:
As at As at
31st March, 2021 31st March, 2020
Balances with Banks:
- On Current Accounts 1,018.86 2,911.39
- On Cash Credit Accounts 1,031.82 815.87
Deposit with Original Maturity for less than 3 months 1,203.59 918.09
Cheques, Drafts on hand 57.95 446.02
Cash on hand 2.63 5.39
3,314.85 5,096.76
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST MARCH, 2021
CIN: U51109WB1950PLC018728

E. Accounting Policy
Cash flows are reported using the indirect method as set out in Ind AS 7 prescribed under the Companies Act (Indian Accounting Standard) Rules, 2015 of the
Companies Act, 2013, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future
operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing
and financing activities of the Group are segregated. The Group considers all highly liquid investments that are readily convertible to known amounts of cash to
be cash equivalents.

in Lakhs
F. Changes in Liabilities arising from Financing Activities

Accrued
Non-Current Current
Items Interest but Total
Borrowings Borrowings
not due
Balance as at 31st March, 2019 3,54,534.37 2,60,896.92 11,350.62 6,26,781.91
Cash Flow (Net) (3,16,730.82) (42,569.36) (85,282.83) (4,44,583.01)
Non-cash changes
Fair Value changes (265.94) - 97.12 (168.82)
Forex Movement 984.72 10.03 - 994.75
Others (Arranger Fees) (76.47) - - (76.47)
Transfer on account of Amalgamation 1,24,815.06 28,188.75 1,53,003.81
Finance Costs Capitalised - - 1,526.07 1,526.07
Finance Costs - - 51,825.22 51,825.22

Balance as at 31st March, 2020 1,63,260.92 2,18,337.59 7,704.95 3,89,303.46

Cash Flow (Net) including proceeds from 68,725.14 (29,404.25) (34,658.26) 4,662.63
Compulsorily Convertible Debentures
Non-cash changes
Fair Value changes (961.60) - 1,088.36 126.76
Forex Movement (935.59) - - (935.59)
Others (Arranger Fees) (249.05) - - (249.05)
Finance Costs Capitalised - - 1,387.28 1,387.28
Finance Costs - - 30,949.34 30,949.34

Balance as at 31st March, 2021 2,29,839.82 1,88,933.34 6,471.67 4,25,244.83

As per our report of even date For and on behalf of the Board

For SINGHI & CO.

Chartered Accountants
Firm Registration Number: 302049E Sd/-
Tuhin Kumar Mukherjee
Managing Director
DIN - 01163569

Sd/- Sd/- Sd/-

Navindra Kumar Surana Sunil Kumar Daga Giriraj Maheswari
Partner Director Director
Membership No.053816 DIN - 00441579 DIN - 00796252

Sd/- Sd/-
Place: Kolkata Arun Garg Dhananjoy Karmakar
Dated: 25th August, 2021 Chief Financial Officer Company Secretary
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021

1. Corporate information

The consolidated financial statements comprises of financial statements of Essel Mining & Industries
Limited (the Company), its subsidiaries (collectively the Group) and its interest in associates for the year
ended 31st March, 2021. The Company is a public Company domiciled in India and is incorporated under
the provisions of the Companies Act 2013.The registered office of the Company is located at Industry
House, 18th Floor, 10, Camac Street, Kolkata-700,017.
The Company is principally engaged in iron ore mining and also produces Noble Ferro Alloys. The
Company has also operating energy projects in Wind and Solar Power sectors in India. Information on the
Group’s structure is provided in Note 64. Information on other related party relationships of the Group is
provided in Note 59.

2. Basis of preparation

Statement of Compliance
These consolidated financial statements have been prepared in accordance with the Indian Accounting
Standards (“Ind AS”) as prescribed by Ministry of Corporate Affairs pursuant to Section 133 of the
Companies Act, 2013 (“the Act”), read with the Companies (Indian Accounting Standards) Rules, 2015,
Companies (Indian Accounting Standards) Amendment Rule, 2016, other relevant provisions of the Act and
other accounting principles generally accepted in India.

Accounting policies have been consistently applied except where a newly issued accounting standard is
initially adopted or a revision to an existing accounting standard requires a change in the accounting policy
hitherto in use.

The Ministry of Corporate Affairs (MCA) has issued certain amendments in existing Accounting Standards
during the year ended 31st March, 2020 -

 Definition of Material – amendments to Ind AS 1 and Ind AS 8 - Amendments are made to Ind AS 1 -
Presentation of Financial Statements and Ind AS 8 - Accounting Policies, Changes in Accounting
Estimates and Errors, which use a consistent definition of materiality, clarify when information is material
and incorporate some of the guidance in Ind AS 1 about immaterial information.

In particular, the amendments clarify: -

- that the reference to obscuring information addresses situations in which the effect is similar to omitting
or misstating that information, and that an entity assesses materiality in the context of the financial
statements as a whole, and

- the meaning of ‘primary users of general purpose financial statements’ to whom those financial
statements are directed, by defining them as ‘existing and potential investors, lenders and other creditors’
that must rely on general purpose financial statements for much of the financial information they need.

 Definition of a Business – amendments to Ind AS 103 - The amended definition of a business requires
an acquisition to include an input and a substantive process that together significantly contribute to the
ability to create outputs. The definition of the term ‘outputs’ is amended to focus on goods and services
provided to customers, generating investment income and other income, and it excludes returns in the
form of lower costs and other economic benefits.

 COVID-19 related concessions – amendments to Ind AS 116 - Amendments to Ind AS 116 Leases,
provides a practical expedient to apply rent concessions occurring as a direct consequence of the COVID-
19 pandemic. Lessee that makes this election shall account for any change in lease payments resulting
from the rent concession the same way it would account for the change applying this Standard if the
change were not a lease modification.
 Interest Rate Benchmark Reform – amendments to Ind AS 109 and Ind AS 107 - The amendments
made to Ind AS 109 Financial Instruments, and Ind AS 107 Financial Instruments: Disclosures provide
certain reliefs in relation to interest rate benchmark reform. The reliefs relate to hedge accounting and
have the effect that the reforms should not generally cause hedge accounting to terminate. However, any
hedge ineffectiveness should continue to be recorded in the income statement.
 Ind AS 10 (Events after the Reporting Period) - An amendment has been made by adding the
disclosure for any non- adjusting events.
 Ind AS 37 (Provisions, Contingent Liabilities and Contingent Assets) - An accounting of restructuring
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021

plans has been substituted.

The amendments listed above did not have any impact on the amounts recognized in prior periods and
are not expected to significantly affect the current and future periods.

The consolidated financial statements for the year ended 31st March, 2021 have been approved by the
Directors of the Company in their meeting held on 25th August, 2021.

The financial statements have been prepared on a historical cost convention, on accrual basis, except for
certain financial assets and liabilities which have been measured at fair value as indicated below:
i) Derivative Financial Instruments measured at fair value
ii) Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial
instruments) ; and
iii) Employee’s Defined Benefit Plan as per actuarial valuation

The consolidated financial statements of the Company have been presented in Indian Rupee ( ) which
is the Company’s functional currency. All financial information presented in INR have been rounded off
to the nearest two decimal of ‘Lakhs’, unless otherwise stated.

Use of Estimates and Management Judgements while preparing the consolidated financial statements
in conformity with accounting principles generally accepted in India, management is required to make
estimates & assumptions that affects reported amount of Assets & Liabilities and the disclosure of
Contingent Liabilities as at the date of consolidated financial statements and the amount of revenue and
expenses during the reported period. Actual results could differ from those estimates. Any revision to
such estimates is recognised in the period in which the same is determined.

Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its
subsidiaries as at 31st March, 2021. Control is achieved when the Group is exposed, or has rights, to
variable returns from its involvement with the investee and has the ability to affect those returns through its
power over the investee. Specifically, the Group controls an investee if and only if the Group has:
 Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities
of the investee)
 Exposure, or rights, to variable returns from its involvement with the investee, and
 The ability to use its power over the investee to affect its returns
Generally, there is a presumption that a majority of voting rights result in control. To support this
presumption and when the Group has less than a majority of the voting or similar rights of an investee,
the Group considers all relevant facts and circumstances in assessing whether it has power over an
investee, including:
 The contractual arrangement with the other vote holders of the investee
 Rights arising from other contractual arrangements
 The Group’s voting rights and potential voting rights
 The size of the group’s holding of voting rights relative to the size and dispersion of the holdings of the
other voting rights holders

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there
are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the
Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary.
Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are
included in the consolidated financial statements from the date the Group gains control until the date the
Group ceases to control the subsidiary.
Consolidated financial statements are prepared using uniform accounting policies for like transactions and
other events in similar circumstances. If a member of the Group uses accounting policies other than those
adopted in the consolidated financial statements for like transactions and events in similar circumstances,
appropriate adjustments are made to that Group member’s financial statements in preparing the
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021

consolidated financial statements to ensure conformity with the Group’s accounting policies.
The financial statements of all entities used for the purpose of consolidation are drawn up to same reporting
date as that of the parent Company, i.e., year ended on 31st March. When the end of the reporting period
of the parent is different from that of a subsidiary, the subsidiary prepares, for consolidation purposes,
additional financial information as of the same date as the financial statements of the parent to enable the
parent to consolidate the financial information of the subsidiary, unless it is impracticable to do so.
Consolidation procedure:
(a) Combine like items of assets, liabilities, equity, income, expenses and cash flows of the parent with
those of its subsidiaries. For this purpose, income and expenses of the subsidiary are based on the
amounts of the assets and liabilities recognised in the consolidated financial statements at the
acquisition date.

(b) The difference between the cost of investment in the subsidiaries and the Company’s share of net
assets at the time of acquisition of shares in the Subsidiaries in recognized in the financial statements as
Goodwill or Capital Reserve as the case may be.
(c) Eliminate in full intra group assets and liabilities, equity, income, expenses and cash flows relating to
transactions between entities of the Group (profits or losses resulting from intragroup transactions that
are recognised in assets, such as inventory and fixed assets, are eliminated in full). Intragroup losses
may indicate an impairment that requires recognition in the consolidated financial statements. Ind AS 12
Income Taxes applies to temporary differences that arise from the elimination of profits and losses
resulting from intragroup transactions.

Profit or Loss and each component of other comprehensive income (OCI) are attributed to the equity holders
of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling
interests having a deficit balance. When necessary, adjustments are made to the financial statements of
subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All intra-group
assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of
the Group are eliminated in full on consolidation.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity
transaction. If the Group loses control over a subsidiary, it:
 Derecognises the assets (including goodwill) and liabilities of the subsidiary
 Derecognises the carrying amount of any non-controlling interests
 Derecognises the cumulative translation differences recorded in equity
 Recognises the fair value of the consideration received
 Recognises the fair value of any investment retained
 Recognises any surplus or deficit in profit or loss
 Reclassifies the parent’s share of components previously recognised in OCI to profit or loss or retained
earnings, as appropriate, as would be required if the Group had directly disposed of the related assets or
liabilities.

2.2 Summary of significant accounting policies

a) Investment in associates
An associate is an entity over which the Group has significant influence. Significant influence is the power
to participate in the financial and operating policy decisions of the investee, but is not control or joint
control over those policies.
The considerations made in determining whether significant influence are similar to those necessary to
determine control over the subsidiaries.
The Group’s investments in its associate are accounted for using the equity method. Under the equity
method, the investment in an associate is initially recognised at cost. The carrying amount of the
investment is adjusted to recognise changes in the Group’s share of net assets of the associate since the
acquisition date. Goodwill relating to the associate is included in the carrying amount of the investment and
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021

is not tested for impairment individually.

The statement of profit and loss reflects the Group’s share of the results of operations of the associate.
Any change in OCI of those investees is presented as part of the Group’s OCI. In addition, when there has
been a change recognised directly in the equity of the associate, the Group recognises its share of any
changes, when applicable, in the statement of changes in equity. Unrealised gains and losses resulting
from transactions between the Group and the associate are eliminated to the extent of the interest in the
associate.
If an entity’s share of losses of an associate equals or exceeds its interest in the associate (which includes
any long term interest that, in substance, form part of the Group’s net investment in the associate), the
entity discontinues recognising its share of further losses. Additional losses are recognised only to the
extent that the Group has incurred legal or constructive obligations or made payments on behalf of the
associate or joint venture. If the associate subsequently reports profits, the entity resumes recognising its
share of those profits only after its share of the profits equals the share of losses not recognised.

The aggregate of the Group’s share of profit or loss of an associate is shown on the face of the statement
of profit and loss.
The financial statements of the associate are prepared for the same reporting period as the Group. When
necessary, adjustments are made to bring the accounting policies in line with those of the Group.
After application of the equity method, the Group determines whether it is necessary to recognise an
impairment loss on its investment in its associate. At each reporting date, the Group determines whether
there is objective evidence that the investment in the associate is impaired. If there is such evidence, the
Group calculates the amount of impairment as the difference between the recoverable amount of the
associate and its carrying value, and then recognises the loss as ‘Share of profit of associates’ in the
statement of profit or loss.
Upon loss of significant influence over the associate, the Group measures and recognises any retained
investment at its fair value. Any difference between the carrying amount of the associate upon loss of
significant influence and the fair value of the retained investment and proceeds from disposal is recognised
in profit or loss.

b) Basis of classification of Current and Non-Current

Assets and liabilities in the Balance Sheet have been classified as either current or non–current based
upon the requirements of Schedule III to the Companies Act, 2013.
An asset has been classified as current if (a) it is expected to be realized in, or is intended for sale or
consumption in the Group’s normal operating cycle; or (b) it is held primarily for the purpose of being
traded; or (c) it is expected to be realized within twelve months after the reporting date; or (d) it is cash or
cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting date. All other assets have been classified as non–current.
A liability has been classified as current when (a) it is expected to be settled in the Group’s normal
operating cycle; or (b) it is held primarily for the purpose of being traded; or (c) it is due to be settled within
twelve months after the reporting date; or (d) the Group does not have an unconditional right to defer
settlement of the liability for at least twelve months after the reporting date. All other liabilities have been
classified as non–current.
An operating cycle is the time between the acquisition of assets for processing and their realization in cash
or cash equivalents. The Group has considered its operating cycle to be 12 months.

c) Foreign currency Transaction and translation

Transactions and Balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the
dates of the transactions. At the year-end, monetary assets and liabilities denominated in foreign
currencies are restated at the year - end exchange rates. The exchange differences arising from
settlement of foreign currency transactions and from the year-end restatement are recognised in profit and
loss.
All other foreign exchange gains and losses are presented in the Statement of Profit and Loss on a net
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021

basis within ‘Other Income’/‘Other Expenses’. Non-monetary items that are measured at fair value in a
foreign currency are translated using the exchange rates at the date when the fair value was determined.
Translation differences on assets and liabilities carried at fair value are reported as part of the fair value
gain or loss.
d) Derivative Instruments:
The Group uses derivative financial instruments, such as forward contracts, interest rate swaps, etc. to
hedge its foreign currency risks and interest rate risks and are carried as financial assets when the fair
value is positive and as financial liabilities when the fair value is negative. The purchase contracts that
meet the definition of a derivative under Ind AS 109 are recognised in the statement of profit and loss. Any
gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss,
except for the effective portion of cash flow hedges, which is recognised in OCI and later reclassified to
profit or loss when the hedge item affects profit or loss or treated as basis adjustment if a hedged forecast
transaction subsequently results in the recognition of a non-financial asset or non-financial liability.

e) Fair value measurement

The Group measures certain financial instruments at fair value at each reporting date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based
on the presumption that the transaction to sell the asset or transfer the liability takes place either:
 In the principal market for the asset or liability, or
 In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would
use when pricing the asset or liability, assuming that market participants act in their economic best
interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another market
participant that would use the asset in its highest and best use.
For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy
as explained above.

f) Revenue recognition
The Group derives revenue principally from sale of Iron Ore, Noble Ferro Alloys, Wind & Solar Energy.
The Company recognizes revenue when it satisfies a performance obligation in accordance with the
provisions of contract with the customer. This is achieved when control of the product has been
transferred to the customer, which is generally determined when title, ownership, risk of obsolescence and
loss pass to the customer and the Group has the present right to payment, all of which occurs at a point in
time upon shipment or delivery of the product. The Group considers shipping and handling activities as
costs to fulfil the promise to transfer the related products and the customer payments for shipping and
handling costs are recorded as a component of revenue. In certain customer contracts, shipping and
handling services are treated as a distinct separate performance obligation and the Group recognises
revenue for such services when the performance obligation is completed.

The Group considers the terms of the contract in determining the transaction price. The transaction price
is based upon the amount the entity expects to be entitled to in exchange for transferring of promised
goods and services to the customer after deducting incentive programs, included but not limited to
discounts, volume rebates etc.

For incentives/discount offered to customers, the Group makes estimates related to customer
performance and sales volume to determine the total amounts earned and to be recorded as deductions.
The estimate is made in such a manner, which ensures that it is highly probable that a significant reversal
in the amount of cumulative revenue recognised will not occur. The actual amounts may differ from these
estimates and are accounted for prospectively. No element of significant financing is deemed present as
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021

the sales are made with a credit term, which is consistent with market practice.

Export Incentives
Export incentives are recognised when there is reasonable assurance that the Company will comply with
the conditions and the incentive will be received.
Sale of service
Revenue on Mining fees is recognised on quantity of coal jointly measured after taking into account
contractually defined terms and condition.

Interest income
For all debt instruments measured at amortised cost, interest income is recorded using the effective
interest rate method (EIR). EIR is the rate that exactly discounts the estimated future cash payments or
receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the
gross carrying amount of the financial asset or to the amortised cost of a financial liability. When
calculating the effective interest rate, the Group estimates the expected cash flows by considering all the
contractual terms of the financial instrument but does not consider the expected credit losses.

Dividends
Revenue is recognised when the Group’s right to receive the payment is established, which is generally
when shareholders approve the dividend.

Others
Income from Certified Emission Reduction (CER), insurance and other claims etc. is recognised when no
uncertainties exist as regard their realization or subsequent utilisation.
One of the subsidiary company follows the prudential norms for income recognition and provides for / write
off non-performing assets as per the prudential norms prescribed by the Reserve Bank of India or earlier
as ascertained by the management.

g) Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received
and all attached conditions will be complied with. When the grant relates to an expense item, it is
recognised as income on a systematic basis over the periods that the related costs, for which it is intended
to compensate, are expensed, whereas, grants whose primary condition is that the Group should
purchase, construct or otherwise acquire a non-current asset, are recognised in the balance sheet by
setting up the grant as a deferred income.

h) Taxes
Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting date.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity). Current tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity. 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 liability method on temporary differences between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
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
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021

forward of unused tax credits and unused tax losses 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. Unrecognised deferred tax assets are re-assessed at each reporting date and are
recognised to the extent that it has become probable that future taxable profits will allow the deferred tax
asset to be recovered.
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 relating to items recognised outside profit or loss is recognised outside profit or loss (either in
other comprehensive income or in equity). Deferred tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity
and the same taxation authority.

Minimum Alternate Tax

Minimum Alternate Tax (MAT) is recognized as an asset only when and to the extent there is convincing
evidence that the Company will pay normal income tax during the specified period. In the year in which the
MAT credit becomes eligible to be recognized as an asset, the said asset is created by way of credit to the
Statement of Profit and Loss and included in deferred tax assets. The Group reviews the same at each
Balance Sheet date and writes down the carrying amount of MAT entitlement to the extent there is no
longer convincing evidence to the effect that the Company will pay normal income tax during the specified
period.

i) Property, plant and equipment

Property, Plant and Equipment is stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any. Cost comprises of purchase price and any attributable cost of bringing the asset
to its working condition for its intended use. When significant parts of plant and equipment are required to
be replaced at intervals, the Group depreciates them separately based on their specific useful lives.

Under the previous GAAP (Indian GAAP), property, plant and equipment were carried in the balance
sheet on cost. The Group has elected to regard those values as deemed cost at the date of transition.

An item of property, plant and equipment and any significant part initially recognised is derecognised upon
disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss
arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and
the carrying amount of the asset) is included in the income statement when the asset is derecognised.

The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate.

The Group identifies and determines cost of asset significant to the total cost of the asset having useful life
that is materially different from that of the remaining life.

j) Depreciation and Amortization

The classification of plant and machinery into continuous and non-continuous process is done as per
technical certification and depreciation thereon is provided accordingly.
The Group, based on technical assessment made by technical expert and management estimate,
depreciates certain items of building, plant and equipment over estimated useful lives which are different
from the useful life prescribed in Schedule II to the Companies Act, 2013. The management believes that
these estimated useful lives are realistic and reflect fair approximation of the period over which the assets
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021

are likely to be used.

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as
mentioned below except for assets of a subsidiary company, with gross value of 36,950.56 Lakhs (31st
March, 2020 : 11,759.51 Lakhs) where Written Down Value method is followed:
Class of Assets Useful Lives
Temporary Shed 1 year
Factory Buildings 3 to 60 years
Non - Factory Buildings 3 to 60 years
Works Station 15 years
Hostel Accommodation 15 years
Railway Siding 5 years
Plant & Machinery 5 to 30 years
Furniture & Fixtures 5 to 10 years
Computers (included under Furniture & Fixtures) 1 to 6 years
Office Equipment 3 to 10 years
Vehicles 8 to 10 years

Leasehold Properties are depreciated over the primary period of lease or their respective useful lives,
whichever is shorter.

Depreciation on property, plant and equipment added/disposed of during the year is provided on prorata
basis with reference to the date of addition/disposal.
The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate.

k) Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated
impairment losses.
Intangible assets with finite lives are amortised over the useful economic life 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 unless such expenditure forms part
of carrying value of another asset.
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 or loss when the asset is derecognised.

Under the previous GAAP (Indian GAAP), Intangible assets were carried in the balance sheet on cost.
The Group has elected to regard those values as deemed cost at the date of transition
l) Borrowing costs
Borrowing costs (including other ancillary borrowing cost) 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 capitalised 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 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.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021

m) Leases
a) The Group as lessor
Leases for which the Group is a lessor are classified as finance or operating leases. Whenever the terms
of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is
classified as finance lease. All other leases are classified as operating leases.
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant
lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the
carrying amount of the leased asset and recognised on a straight-line basis over the lease term.

b) The Group as lessee

The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group
recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements
in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or
less) and leases of low value assets. For these leases, the Group recognises the lease payments as an
operating expense on a straight-line basis over the lease term, unless another systematic basis is more
representative of the time pattern in which economic benefits from the leased assets are consumed.
Contingent and variable rentals are recognized as expense in the periods in which they are incurred.

c) Lease Liability
The lease payments that are not paid at the commencement date are discounted using the interest rate
implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the
Group, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would
have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a
similar economic environment with similar terms, security and conditions.

Lease payments included in the measurement of the lease liability comprise:

• Fixed lease payments (including in-substance fixed payments) payable during the lease term and under
reasonably certain extension options, less any lease incentives;
• Variable lease payments that depend on an index or rate, initially measured using the index or rate at
the commencement date;
• The amount expected to be payable by the lessee under residual value guarantees;
• The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and
• Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to
terminate the lease.

The lease liability is presented as a separate line in the Balance Sheet.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the
lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease
payments made.

The Group re-measures the lease liability (and makes a corresponding adjustment to the related right-of-
use asset) whenever:
• The lease term has changed or there is a change in the assessment of exercise of a purchase option, in
which case the lease liability is re-measured by discounting the revised lease payments using a
revised discount rate.
• A lease contract is modified and the lease modification is not accounted for as a separate lease, in
which case the lease liability is re-measured by discounting the revised lease payments using a
revised discount rate.

d) Right of Use (ROU) Assets

The ROU assets comprise the initial measurement of the corresponding lease liability, lease payments
made at or before the commencement day and any initial direct costs. They are subsequently measured
at cost less accumulated depreciation and impairment losses.

Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the
site on which it is located or restore the underlying asset to the condition required by the terms and
conditions of the lease, a provision is recognized and measured under Ind AS 37- Provisions, Contingent
Liabilities and Contingent Assets. The costs are included in the related right-of-use asset.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021

ROU assets are depreciated over the shorter period of the lease term and useful life of the underlying
asset. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is
depreciated over the underlying asset’s useful life. The depreciation starts at the commencement date of
the lease.

The Group applies Ind AS 36- Impairment of Assets to determine whether a right-of-use asset is
impaired and accounts for any identified impairment loss as per its accounting policy on ‘property, plant
and equipment’.

As a practical expedient, Ind AS 116 permits a lessee not to separate non-lease components when
bifurcation of the payments is not available between the two components, and instead account for any
lease and associated non-lease components as a single arrangement. The Group has used this practical
expedient.

Extension and termination options are included in many of the leases. In determining the lease term the
management considers all facts and circumstances that create an economic incentive to exercise an
extension option, or not exercise a termination option.

n) Inventories
a) Raw Materials, stores and spares are valued at lower of cost and net realizable value. However,
these items are considered to be realizable at cost if the finished products, in which they will be used,
are expected to be sold at or above cost. Cost includes cost of purchase and other costs incurred in
bringing the inventories to their present location and condition. Cost is determined on first in, first out
basis/transaction moving weightage average method.
b) Work-in-progress and finished goods are valued at lower of cost and net realizable value. Cost
includes cost of direct materials and labour and a proportion of manufacturing overheads based on
the normal operating capacity. Cost of finished goods includes excise duty. Cost is determined on
annual weighted average basis.
c) 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.

o) Impairment of non-financial assets

The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired.
If any indication exists or when annual impairment testing for an asset is required, the Group 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 Group‘s assets. When the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered as impaired and is written down to its recoverable amount.
Impairment losses are recognised in the statement of profit and loss.

p) Provisions

General
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Group
expects some or all of a provision to be reimbursed, for example, under an insurance contract, the
reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain.
The expense relating to a provision is presented in the statement of profit and loss net of any
reimbursement.
Liability towards site restoration costs in respect of land used for mining have been recognized based on
land area used for mining but yet to be restored at the year end and quantum of obligations imposed by
applicable regulations. Site restoration is carried out side by side with mining activities and related costs
are recognized in these financial statements but not separately identifiable.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021

If the effect of the time value of money is material, provisions are discounted at a current pre-tax rate that
reflects the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.

q) Retirement and other employee benefits

a) Retirement benefit in the form of provident fund is a defined contribution scheme. The company
recognizes contribution payable to the provident fund scheme as an expense, when an employee
renders the related service. If the contribution payable to the scheme for service received before the
balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is
recognized as a liability after deducting the contribution already paid. The Group has no obligation,
other than the contribution payable to the provident fund.

b) Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation on
projected unit credit method, at the end of each financial year. Remeasurements, comprising of
actuarial gains and losses are recognised immediately in the balance sheet with a corresponding debit
or credit to retained earnings through OCI in the period in which they occur. Such remeasurements
are not reclassified to Statement of Profit and Loss in subsequent periods. Net interest is calculated
by applying the discount rate to the net defined benefit liability or asset. The Group recognises the
following changes in the net defined benefit obligation as an expense in the Statement of Profit and
Loss:
(i) Service costs comprising current service costs, past-service costs, gains and losses on
curtailments and non-routine settlements; and
(ii) Net interest expense or income.

The current and non-current bifurcation is done as per Actuarial report.

c) Short term compensated absences are provided for based on estimates. Long term compensated
absences are provided for based on actuarial valuation, as per projected unit credit method.

r) 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.

(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 or loss, transaction costs that are attributable to the acquisition of the financial asset.

Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in three categories:
(a) Debt instruments at amortised cost
(b) Debt instruments, derivatives, equity instruments and mutual fund investments at fair value through profit or
loss (FVTPL)
(c) Equity instruments measured at fair value through other comprehensive income (FVTOCI)

(a) Debt instruments at amortised cost

A ‘debt instrument’ is measured at the amortised cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and
b) 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.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021

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 interest
income in the profit or loss.

(b) Debt instruments, derivatives, equity instruments and mutual fund investments at fair value through
profit or loss (FVTPL)
All derivatives and mutual fund investments in scope of Ind AS 109 are measured at fair value. Equity instruments
which are held for trading are classified as at FVTPL. Equity instruments included within the FVTPL category are
measured at fair value with all changes recognized in the P&L.
(c) Equity instruments measured at fair value through other comprehensive income (FVTOCI)
For all equity instruments other than the ones classified as at FVTPL, the Group may make an irrevocable
election to present in other comprehensive income subsequent changes in the fair value. The Group makes such
election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.
If the Group decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument,
excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on
sale of investment. However, the Group may transfer the cumulative gain or loss within equity.

De-recognition
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 balance sheet) when the rights to receive cash flows from the
asset have expired.

Impairment of financial assets

In accordance with Ind AS 109, the Group applies expected credit loss (ECL) model for measurement and
recognition of impairment loss on the Trade receivables or any contractual right to receive cash or another
financial asset that result from transactions that are within the scope of Ind AS 11 and Ind AS 18. ECL is the
difference between all contractual cash flows that are due to the Group in accordance with the contract and all the
cash flows that the entity expects to receive (i.e.; all cash shortfalls), discounted at the original EIR.

(B) Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings, financial guarantee contract payables, or derivative instruments.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables,
net of directly attributable transaction costs.

Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:

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 on liabilities held for trading are recognised in the statement of profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at
the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as
FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss
are not subsequently transferred to P&L. However, the Group may transfer the cumulative gain or loss within
equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The Group
has not designated any financial liability as at fair value through profit and loss.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021

Loans and borrowings

This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are
subsequently measured at amortised cost using the 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 as finance costs in the statement of profit and
loss.

Financial guarantee contracts

Financial guarantee contracts are recognized as a financial liability at the time the guarantee is issued. The
liability is initially measured at fair value and subsequently at the higher of the amount determined in accordance
with Ind AS 37 and the amount initially recognized less cumulative amortisation, where appropriate.
The fair value of financial guarantees is determined as the present value of the difference in net cash flows
between the contractual payments under the debt instrument and the payments that would be required without
the guarantee, or the estimated amount that would be payable to a third party for assuming the obligations.
Where guarantees in relation to loans or other payables of subsidiaries, associates or other body corporates are
provided for no compensation, the fair values are accounted for as contribution and recognized as part of the cost
of the investment.
Derivatives financial instruments
Initial recognition and subsequent measurement
The Group uses derivative financial instruments, such as forward currency contracts and interest rate swaps, to
hedge its foreign currency risks and interest rate risks respectively. Derivative financial instruments are re-
measured at fair value at each balance sheet. Derivatives are carried as financial assets when the fair value is
positive and as financial liabilities when the fair value is negative.
Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or 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 or loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis,
to realise the assets and settle the liabilities simultaneously.

s) Segment Reporting

Identification of Segments
The Group’s operating businesses are organized and managed separately according to the nature of
products and services provided, with each segment representing a strategic business unit that offers different
products and serves different markets. The analysis of geographical segments is based on the areas in
which the customers of the Group are located.

Allocation of Common cost

Common allocable costs are allocated to each segment on case to case basis applying the ratio, appropriate
to each relevant case. Revenues and Expenses, which relate to the enterprise as a whole and which are not
allocable to any segment on a reasonable basis, have been included under the head "Unallocated -
Common".

The accounting policies adopted for segment reporting are in line with those of the Group's accounting
policies.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021

Segment accounting policies

The Group prepares its segment information in conformity with the accounting policies adopted for preparing
and presenting the financial statements of the Group as a whole.
Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise 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.

t) Earnings per share

Earnings per share is calculated by dividing the net profit or loss before OCI for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year. For the purpose
of calculating diluted earnings per share, the net profit or loss before OCI for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares.

u) Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Group
or a present obligation that is not recognized because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a
liability that cannot be recognized because it cannot be measured reliably. The Group does not recognize a
contingent liability but discloses its existence in the financial statements.

v) Cash dividend to equity holders

The Group recognises a liability to make cash distributions to equity holders when the distribution is
authorised and the distribution is no longer at the discretion of the Company. As per the corporate laws in
India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is
recognised directly in equity.
w) New Standards / Amendments to Existing Standard/ New Pronouncement issued but not yet effective
upto the date of issuance of the Company’s Financial Statement :
(A) On 24th March, 2021, the Ministry of Corporate Affairs ("MCA") through notification amended Schedule III
of the Companies Act, 2013. The amendments revise Division I, II and III of Schedule III and are
applicable from 1st April, 2021. Key amendments relating to Division II which relate to companies whose
financial statements are required to comply with Companies (Indian Accounting Standards) Rules 2015
are:
Rounding Off : For the purpose of rounding off the figures appearing in the Financial Statements for
financial year ending 31st March, 2022 the total income of the Group shall be considered instead of
Turnover.

Additional Disclosure in Notes to Balance Sheet:

 Shareholding of Promoter: The note on Share Capital in the Financial Statements shall
mention details of the Shareholding of the Promotes along with changes, if any, during the
Financial Year.
 Lease liabilities should be separately disclosed under the head ‘financial liabilities’, duly
distinguished as current or non-current.
 Current maturities of Long-term borrowings shall be disclosed separately under the heading
ShortTerm Borrowing.

 Security Deposits to be shown under the head of Other Non-Current Assets instead of Long term
Loan & Advances.
 Certain additional disclosures in the statement of changes in equity such as changes in equity
share capital due to prior period errors and restated balances at the beginning of the current
reporting period.
 Specific disclosure for title deeds of Immovable Property not held in name of the Company and
disclosure on revaluation of Assets
 Specified format for ageing schedule of trade receivables, trade payables, capital work-in-
progress and intangible asset under development.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021

 Specific disclosure under ‘additional regulatory requirement’ such as compliance with approved
schemes of arrangements, compliance with number of layers of companies, title deeds of
immovable property not held in name of company, loans and advances to promoters, directors,
key managerial personnel (KMP) and related parties, details of benami property held etc.
 If a company has not used funds for the specific purpose for which it was borrowed from banks
and financial institutions, then disclosure of details of where it has been used.
 Ratios-Following Ratios to be disclosed: - (a) Current Ratio, (b) Debt-Equity Ratio, (c) Debt
Service Coverage Ratio, (d) Return on Equity Ratio, (e) Inventory turnover ratio, (f) Trade
Receivables turnover ratio, (g) Trade payables turnover ratio, (h) Net capital turnover ratio, (i)
Net profit ratio, (j) Return on Capital employed, (k) Return on investment
 Specific Disclosure Borrowing & Wilful Defaulter

Additional Disclosure in Notes to Profit & Loss Account :

 Additional disclosures relating to Corporate Social Responsibility (CSR), undisclosed income
and crypto or virtual currency specified under the head ‘additional information’ in the notes
forming part of the standalone financial statements.

(B) The Ministry of Corporate Affairs (MCA) vide Notification dated 18th June, 2021 has issued new
Companies (Indian Accounting Standard) Amendment Rules, 2021 in consultation with the National
Financial Reporting Authority (NFRA).

The notification states that these rules shall be applicable with immediate effect from the date of the
notification. Consequently amendments are effective for the financial year ended 31st March, 2022.

Major amendments notified in the Companies (Ind AS) Amendment Rules, 2021 are provided below:-

(a) Ind AS 116 - Leases – The amendments extend the benefits of the COVID 19 related rent
concession that were introduced last year (which allowed lessees to recognize COVID 19 related rent
concessions as income rather than as lease modification) from 30th June, 2021 to 30th June, 2022.

(b) Ind AS 109 - Financial Instruments – The amendment provides a practical expedient for
assessment of contractual cash flow test, which is one of the criteria for being eligible to measure a
financial asset at amortized cost, for the changes in the financial assets that may arise as a result of
Interest Rate Benchmark Reform along. An additional temporary exception from applying hedge
accounting is also added for Interest Rate Benchmark Reform.
(c) Ind AS 101 - Presentation of Financial Statements – The amendment substitutes the item (d)
mentioned in paragraph BI as ‘Classification and measurement of financial instruments’. The term
‘financial asset’ has been replaced with ‘financial instruments’.
(d) Ind AS 102 - Share-Based Payment – The amendments to this standard are made in reference to
the Conceptual Framework of Financial Reporting under Ind AS in terms of defining the term ‘Equity
Instrument’ which shall be applicable for the annual reporting periods beginning on or after 1st April,
2021.
(e) Ind AS 103 -Business Combinations – The amendment substitutes the definition of ‘assets’ and
‘liabilities’ in accordance with the definition given in the framework for the Preparation and
Presentation of Financial Statements in accordance with Ind AS for qualifying the recognition criteria
as per acquisition method.
(f) Ind AS 104 -Insurance Contracts – The amendment covers the insertion of certain paragraphs in
the standard in order to maintain consistency with IFRS 4 and also incorporates the guidance on
accounting treatment for amendments due to Interest Rate Benchmark Reform.
(g) Ind AS 105 -Non-current assets held for sale and discontinued operations – The amendment
substitutes the definition of ― “fair value less costs to sell” with “fair value less costs of disposal”
(h) Ind AS 106 - Exploration for and evaluation of mineral resources – The amendment has been
made in reference to the Conceptual Framework for Financial Reporting under Indian Accounting
Standards in respect of expenditures that shall not be recognized as exploration and evaluation
assets.
(i) Ind AS 107 - Financial Instruments: Recognition, Presentation and Disclosure – The amendment
clarifies the certain additional disclosures to be made on account of Interest Rate Benchmark Reform
like
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021

(i) the nature and extent of risks to which the entity is exposed arising from financial instruments
subject to interest rate benchmark reform;
(ii) the entity‘s progress in completing the transition to alternative benchmark rates, and how the
entity is managing the transition.
(j) Ind AS 111 -Joint Arrangements – In order to maintain consistency with the amendments made in
Ind AS 103, respective changes have been made in Ind AS 111.
(k) Ind AS 114 - Regulatory Deferral Accounts – The amendment clarifies that an entity may only
change its accounting policies for the recognition, measurement, and impairment & derecognition of
regulatory deferral account balances if the change makes the financial statements more relevant to
the economic decision-making needs of users and no less reliable.
(l) Ind AS 115 -- Revenue from Contracts with Customers – Certain amendments have been made in
order to maintain consistency with number of paragraphs of IFRS 15.
(m) Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors – In order to
maintain consistency with the amendments made in Ind AS 114 and to substitute the word
‘Framework’ with the ‘Conceptual Framework of Financial Reporting in Ind AS’, respective changes
have been made in the standard.
(n) Ind AS 16 - Property, Plant and Equipment –The amendment has been made by substituting the
words “Recoverable amount is the higher of an asset’s fair value less costs to sell and its value in
use” with “Recoverable amount is the higher of an asset’s fair value less costs of disposal and its
value in use”.
(o) Ind AS 34 - Interim Financial Reporting –The amendments to this standard are made in reference
to the conceptual framework of Financial Reporting in Ind AS.
(p) Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets – The amendment
substitutes the definition of the term ‘Liability’ as provided in the Conceptual Framework for Financial
Reporting under Indian Accounting Standards.
(q) Ind AS 38 - Intangible Assets – The amendment substitutes the definition of the term ‘Asset’ as
provided in the Conceptual Framework for Financial Reporting under Indian Accounting Standards.

The amendments are extensive and the Company will evaluate the same to give effect to them as
required by law.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

3(i). Property, Plant and Equipment in Lakhs

Exploration and
Freehold Land Mining Sedimentation Electrical Railway Plant & Furniture &
Particulars Leasehold Land Evaluation Assets Road Buildings (c) Office Equipment Vehicles Total (d)
(a) Development Pond Installation Sidings Machinery Fixtures
(b)
Cost
As at 1st April, 2019 3,663.10 2,207.13 - - 16,240.34 224.08 3.33 99.10 639.49 1,17,433.05 1,377.82 901.05 897.39 1,43,685.88
Add: Additions - - - - 224.93 126.07 - 11.99 3,535.61 2,037.21 52.05 205.73 199.95 6,393.54
Less: Transfer/ reclassification - (2,207.13) - - - - - - - - - - - (2,207.13)
Less: Disposal - - - - - - - - - 380.23 6.00 6.84 140.47 533.54
As at 31st March, 2020 3,663.10 - - - 16,465.27 350.15 3.33 111.09 4,175.10 1,19,090.03 1,423.87 1,099.94 956.87 1,47,338.75
Add: Additions - - 5,946.39 485.26 4,218.71 - - 0.99 - 23,830.31 25.47 96.48 105.05 34,708.66
Less: Disposal - - - - - - - - - 3,883.50 520.65 465.84 117.45 4,987.44
As at 31st March, 2021 3,663.10 - 5,946.39 485.26 20,683.98 350.15 3.33 112.08 4,175.10 1,39,036.84 928.69 730.58 944.47 1,77,059.97

Depreciation & Impairment

As at 1st April, 2019 - 251.11 - - 5,469.55 81.62 3.28 22.85 512.59 39,315.97 883.04 568.18 254.07 47,362.26
Add: Charge for the year - - - - 1,575.51 84.94 - 10.76 1,546.33 9,108.98 210.68 93.75 120.51 12,751.46
Less: Transfer/ reclassification - (251.11) - - - - - - - - - - - (251.11)
Less: Disposal - - - - - - - - - 300.56 4.35 5.66 71.33 381.90
As at 31st March, 2020 - - - - 7,045.06 166.56 3.28 33.61 2,058.92 48,124.39 1,089.37 656.27 303.25 59,480.71
Add: Charge for the year - - - 76.17 952.28 89.78 - 11.86 2,116.18 8,904.68 117.32 112.14 119.09 12,499.50
Less: Disposal - - - - - - - - - 3,342.31 522.40 285.96 61.97 4,212.64
As at 31st March, 2021 - - - 76.17 7,997.34 256.34 3.28 45.47 4,175.10 53,686.76 684.29 482.45 360.37 67,767.57
Net Block
As at 31st March, 2020 3,663.10 - - - 9,420.21 183.59 0.05 77.48 2,116.18 70,965.64 334.50 443.67 653.62 87,858.04
As at 31st March, 2021 3,663.10 - 5,946.39 409.09 12,686.64 93.81 0.05 66.61 - 85,350.08 244.40 248.13 584.10 1,09,292.40

(a) Including 103.46 Lakhs (31st March, 2020 : 103.46 Lakhs) which is yet to be registered in the Company's name.
(b) Includes 5,870.84 Lakhs (31st March, 2020 : Nil) towards cost of geologicial report for exploration of Bandha Coal Mine and expenditure towards Exploration and Evaluation Assets 0.26 Lakhs (31st March, 2020 : Nil).
(c) Including 38.83 Lakhs (31st March, 2020 : 38.83 Lakhs) towards building on Leasehold Land.
(d) Includes following assets (Company's share) which are held under co-ownership with other Companies :

Particulars Deemed Cost Net Block

As at 31st March, As at 31st March, As at 31st March, As at 31st March,
2021 2020 2021 2020
Freehold land 207.23 207.23 207.23 207.23
Buildings 217.13 217.13 192.63 196.71
Plant & Machinery 15.31 15.31 1.74 1.74
Furniture, Fixtures & Fittings 13.93 13.93 4.60 6.40
Office Equipment 11.23 11.23 1.53 2.64

(e) For charge created on Property, Plant and Equipment of the Group towards borrowings (Refer Note 19).
(f) A subsidiary of the Company, Pro Minerals Pvt. Ltd., has submitted a request to Odisha Industrial Infrastructure Development Corporation (OIIDC) for surrender of leasehold land (Book value: 156.19 Lakhs) of Byree Project in view of various constraints.

3(ii). Capital Work-in-Progress in Lakhs

Pre-operative
Particulars Road Buildings Railway Sidings Plant & Machinery Office Equipment Expenses, Total
pending allocation
As at 1st April, 2019 380.29 3,497.06 3,014.91 13,278.68 10.70 - 20,181.64
Add: Additions - - - 6,618.00 1.25 139.48 6,758.73
Less: Transfer to Property, Plant & Equipment ^ - - 3,014.91 544.87 10.69 - 3,570.47
Less: Deductions/ adjustments - 43.23 - 179.00 - - 222.23
As at 31st March, 2020 380.29 3,453.83 - 19,172.81 1.26 139.48 23,147.67
Add: Additions 52.71 831.74 - 13,357.39 0.54 667.54 14,909.92
Less: Transfer to Property, Plant & Equipment ^ 433.00 4,210.85 - 22,325.75 0.63 - 26,970.23
As at 31st March, 2021 - 74.72 - 10,204.45 1.17 807.02 11,087.36

^ Represents amount allocated to respective Property, Plant & Equipment during the year.

Essel Mining & Industries Limited

Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

4(i). Intangible Assets in Lakhs

Mining Lease &

Particulars Software Total
Mining Rights
Cost
As at 1st April, 2019 24,049.03 154.48 24,203.51
Add: Additions 639.80 9.12 648.92
As at 31st March, 2020 24,688.83 163.60 24,852.43
Add: Additions - 1.27 1.27
As at 31st March, 2021 24,688.83 164.87 24,853.70

Amortisation
As at 1st April, 2019 5,652.20 95.33 5,747.53
Add: Charge for the year 17,950.16 21.29 17,971.45
As at 31st March, 2020 23,602.36 116.62 23,718.98
Add: Charge for the year 788.59 13.99 802.58
As at 31st March, 2021 24,390.95 130.61 24,521.56

Net Block
As at 31st March, 2020 1,086.47 46.98 1,133.45
As at 31st March, 2021 297.88 34.26 332.14

4(ii). Intangible Assets under Development

Expenditure
towards Intangible Assets
Particulars intangible assets under Development Total
under #
development
As at 1st April, 2019 - - -
Add: Additions - - -
As at 31st March, 2020 - - -
Add: Additions 64.30 486.29 550.59
As at 31st March, 2021 64.30 486.29 550.59 -

# Represent towards cost of geological report for exploration of Radhikapur East Coal Mine.

4(iii). Right of use - Lease Assets

Right of use - Lease

Particulars Leasehold Land Total
Assets
Cost
As at 1st April, 2019 - - -
Add: Additions 1,956.02 32.96 1,988.98
As at 31st March, 2020 1,956.02 32.96 1,988.98
Add: Additions 10.08 - 10.08
As at 31st March, 2021 1,966.10 32.96 1,999.06

Amortisation
As at 1st April, 2019 - - -
Add: Charge for the year 66.50 1.50 68.00
As at 31st March, 2020 66.50 1.50 68.00
Add: Charge for the year 67.16 1.50 68.66
As at 31st March, 2021 133.66 3.00 136.66

Net Block
As at 31st March, 2020 1,889.52 31.46 1,920.98
As at 31st March, 2021 1,832.44 29.96 1,862.40 -
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs
5(i). Non-current Investments Face Value As at As at
31st March, 2021 31st March, 2020
Investments in Associates

Investments at Cost / Deemed Cost

A Unquoted Equity Shares (Fully paid)
77,711 (31st March, 2020: 77,711) Equity Shares of Living Media India Ltd. 10 55,129.81 55,129.81
Add: Proportionate Share of Accumulated Profit / (Loss) # 3,936.66 1,102.63
[Includes Goodwill amounting to 41,041.07 Lakhs (31st March, 2020: 41,041.07
Lakhs)]
59,066.47 56,232.44

# Living Media India Ltd., an associate company has restated its previous year’s figures impacting the reported profit of the previous year by 4.90 Lakhs. Consequently
to give impact of such restatement, the reported proportionate share in profit of the previous year of 3,271.58 Lakhs has been restated to 3,273.11 Lakhs and also
the share of other comprehensive Income of Associate Enterprises of 7.81 Lakhs has been restated to 7.89 Lakhs in the consolidated financial statements. Carrying
value on investment in associates has also been increased by 1.60 Lakhs.
5(ii). Non-current Investments

Investments in Others

Investments at fair value through OCI (FVTOCI)

A Quoted Equity Shares (Fully paid)
5,33,67,810 (31st March, 2020: 4,71,37,810) Equity Shares of Aditya Birla Capital Ltd. 10 63,667.80 19,892.16

9,38,91,880 (31st March, 2020: 8,50,30,930) Equity Shares of Aditya Birla Fashion and 10 1,88,957.41 1,30,224.87
Retail Ltd.
4,24,30,800 (31st March, 2020: Nil) Equity Shares of Aditya Birla Fashion and Retail Ltd. 7.50 71,665.62 -
(PP) $
40,75,28,454 (31st March, 2020: 40,75,28,454) Equity Shares of Vodafone Idea Ltd. 10 37,696.38 12,674.13
(Including right entitlement)
3,79,73,393 (31st March, 2020: 3,36,28,393) Equity Shares of Grasim Industries Ltd. 2 5,50,823.05 1,59,869.38

1,11,50,000 (31st March, 2020: 1,11,50,000) Equity Shares of Century Textiles & 10 51,853.08 32,981.70
Industries Ltd. *
34,99,63,487 (31st March, 2020: 34,99,63,487) Equity Shares of Hindalco Industries Ltd. 1 11,43,855.66 3,34,740.08

1 (31st March, 2020: 1) Equity Shares of UltraTech Cement Ltd. * 10 0.07 0.03
B Unquoted Equity Shares (Fully paid)
7,000 (31st March, 2020: 7,000) Equity Shares of Birla Management Centre Services 10 740.99 615.43
Ltd.
3,00,00,000 (31st March, 2020: 3,00,00,000) Equity Shares of Haridaspur Paradeep 10 3,000.00 3,000.00
Railway Co. Ltd.
7,200 (31st March, 2020: 7,200) Equity Shares of Keonjhar Infrastructure Development 10 0.72 0.72
Company Ltd.
14,000 (31st March, 2020: 14,000) Equity Shares of Naman Finance and Investments 100 1,936.71 1,250.78
Pvt. Ltd.
1,18,68,000 (31st March, 2020: 1,18,68,000) Equity Shares of Azure Jouel Pvt. Ltd. 10 36,569.33 31,362.87
15,05,000 (31st March, 2020: 15,05,000) Equity Shares of Birla Family Investments Pvt. 10 899.02 396.54
Ltd.
21,00,001 (31st March, 2020: 21,00,001) Equity Shares of Svatantra Microfin Pvt. Ltd. 10 328.65 333.06

1,10,40,000 (31st March, 2020: 1,10,40,000) Equity Shares of Svatantra Online Services 10 - -
Pvt. Ltd.
2,26,25,000 (31st March, 2020: 2,26,25,000) Equity Shares of Vighnahara Properties 10 - 126.43
Pvt. Ltd. (Formerly Aditya Birla Natural Resources Ltd.)
44,75,000 (31st March, 2020: 44,75,000) Equity Shares of Antimatter Media Pvt. Ltd. 10 - -

15 (31st March, 2020: 15) Equity Shares of Padmavati Investment Ltd. 10 0.08 0.08

C Unquoted Preference Shares (Fully paid)

5,69,00,000 (31st March, 2020: Nil) 6% Non Cumulative Compulsory Convertible 100 49,833.56 -
Preference shares of Svatantra Holdings Private Ltd.

$ A subsidiary of the Company, IGH Holdings Pvt. Ltd., has subscribed to the Rights issue of Aditya Birla Fashion & Retail Ltd. at ₹ 110/- per share (Face value of ₹ 10/-
and Premium of ₹ 100/-). Final call amounting ₹ 11,668.47 Lakhs (4,24,30,800 shares at ₹ 27.50 per share) is yet to be made.
* A subsidiary of the Company, IGH Holdings Pvt. Ltd., held 1,11,50,000 Equity Shares of Century Textiles and Industries Ltd. Pursuant to the Scheme of demerger of
Cement Division of Century Textiles and Industries Ltd. (“Century Textiles”) and its transfer to UltraTech Cement Ltd. (“UltraTech”) duly approved by their respective
shareholders and creditors and further approved by the Hon'ble National Company Law Tribunal at Mumbai (NCLT) vide its Order dated 3rd July, 2019, the Board of
Directors of Ultratech have allotted equity shares of UltraTech to the Shareholders of Century textiles in the ratio of 1 (One) equity share of 10/- each fully paid up of
UltraTech for every 8 (Eight) fully paid equity shares of face value 10/- each held by shareholders of Century Textiles. Accordingly, the subsidiary of the Company was
allotted 13,93,750 equity shares of UltraTech. Based on the Communication received from Century Textiles, since the net worth of Cement Division of Century Textiles
was negative at the time of demerger, the Cost allocation in accordance with Section 49 (2C) of the Income Tax Act,1961 for the shares of UltraTech received pursuant
to the demerger scheme is determined as Nil. Subsequently, the subsidiary of the Company sold 13,93,749 equity shares out of the above mentioned shares received
by the company and the profit on sale of the same and the corresponding income tax impact has been duly accounted for under Other Comprehensive Income.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs
Face Value As at As at
31st March, 2021 31st March, 2020
Investments at fair value through Profit & Loss (FVTPL)
A Quoted Equity Shares (Fully paid)
85,730 (31st March, 2020: 85,730) Equity Shares of ECE Industries Ltd. 10 289.57 198.81
B Unquoted Preference Shares (Fully paid)
55,00,000 (31st March, 2020: 55,00,000) 6% Cumulative Preference Shares of Keonjhar 10 173.89 142.34
Infrastructure Development Co. Ltd.
Nil (31st March, 2020 : 3,79,00,000) 8% Non Cumulative Non Convertible Redeemable 100 - 14,436.84
Preference shares of Svatantra Holdings Private Ltd.
2,00,000 (31st March, 2020: Nil) 8% Non Cumulative Non- Convertible Redeemable 100 82.60 -
Preference shares of Vighanhara Horticulture Private Ltd.
12,50,000 (31st March, 2020: Nil) 8% Non Cumulative Non- Convertible Redeemable 100 305.61 -
Preference shares of Aditya Birla New Age Private Ltd.

Investments at Amortised Cost

A Government Securities
6.17% Govt. of India Loan, 2023 1.00 1.00
National Savings Certificate 0.30 0.30
Total Investments 22,02,681.10 7,42,247.55

Aggregate value of quoted investments 21,08,808.57 6,90,581.13

Aggregate value of unquoted investments 93,872.53 51,666.42

6. Non-current Loans
At Cost

Other Loans
- Loans to Employees
- Considered good - Unsecured 3.45 2.75
- Credit impaired - -
- Which have significant increase in Credit Risk - -
- Loans to others
- Considered good - Unsecured 311.81 311.81
- Credit impaired - -
- Which have significant increase in Credit Risk - -
315.26 314.56

7. Other Non-current Financial Assets

At Amortised Cost
(Unsecured, considered good, unless stated otherwise)

Bank deposits with original maturity for more than 12 months* 418.43 382.59
Security Deposits 3,834.02 3,780.09
Derivative assets on Cross currency interest rate Swap 1,478.87 2,414.46
Claims & Refunds Refundable - 78.60
Finance Lease Receivable 4,262.59 4,331.89
Interest Accrued on:
- Fixed Deposits 4.72 4.33
- Loans & Inter-corporate Deposits etc. 73.38 73.38
10,072.01 11,065.34

* Receipts for 8.15 Lakhs is lying with mining authorities. These represent deposits towards earmarked accounts. Includes 406.91 Lakhs is held as margin money for
Bank Guarantees given to Government Authorities.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs
As at As at
31st March, 2021 31st March, 2020

8. Other Non-current Assets

(Unsecured, considered good, unless stated otherwise)

Capital Advances 1,777.22 1,678.73

Advances recoverable in cash or in kind or for value to be received
Considered good 1,401.30 0.68
Doubtful 67.16 67.16
1,468.46 67.84
Less: Provision for Doubtful Advances 67.16 67.16
1,401.30 0.68

4,376.12 1,679.41
9. Inventories

(At lower of cost and net realisable value unless stated otherwise)
Raw Materials 341.11 1,571.85
Work-in-Progress 599.97 961.71
Finished Goods 14,268.59 17,284.16
Stores & Spare Parts 3,310.32 3,217.98
18,519.99 23,035.70

Provision against slow moving & non-moving inventory of stores and spares as on 31st March, 2021 is 621.43 Lakhs ( Previous year ended 31st March, 2020 :
1,136.13 Lakhs). Impact of provision against slow moving & non-moving has been adjusted with carrying value of inventory as on 31st March, 2021 & 31st March, 2020
respectively. Reversal of provision during the year against slow moving & non-moving inventory of stores and spares is amounting to 514.70 Lakhs ( Previous year
ended 31st March, 2020 : 78.85 lakhs ) has been adjusted with the consumption.

Inventories are hypothecated against the borrowings obtained by the Group as referred in Note 23.

Face Value
10. Current Investments

Investments at fair value through Profit & Loss (FVTPL)

Mutual Funds

4,92,380 units (31st March, 2020: Nil) ABSL Overnight Fund Direct Growth 100 5,479.87 -
16,91,989 units (31st March, 2020: Nil) ABSL Savings Fund Direct Growth 100 7,222.02 -
7,40,832 units (31st March, 2020: Nil) ABSL Floating Rate Fund Direct Growth 100 2,005.31 -
5,65,898 units (31st March, 2020: Nil) ABSL Floating Rate Fund Regular Growth 10 1,504.25 -
19,04,564 units (31st March, 2020: Nil) ABSL Money Manager Fund Direct Growth 100 5,469.36 -
84,283 units (31st March, 2020: Nil) DSP Liquidity Fund Direct Growth 1,000 2,478.89 -
32,561 units (31st March, 2020: Nil) Kotak Liquid Fund Direct Growth 1,000 1,354.22 -
20,144 units (31st March, 2020: Nil) IDFC Cash Fund Direct Growth 1,000 500.78 -
82,603 units (31st March, 2020: Nil) LIC Mutual Fund Liquid Fund Direct Growth 1,000 3,086.78 -
2,315 units (31st March, 2020: Nil) LIC MF Liquid Fund Regular Plan Growth 1,000 85.73 -
26,932 units (31st March, 2020: Nil) L&T Liquid Fund Direct Growth 1,000 759.20 -
1,64,342 units (31st March, 2020: Nil) ICICI Pru Liquid Fund Direct Growth 100 500.81 -
66,983 units (31st March, 2020: Nil) Nippon India Liquid Fund Direct Growth 1,000 3,370.98 -
30,70,910 units (31st March, 2020: Nil) Kotak Equity Arbitrage Fund Direct Plan Growth 10 929.91 -
40,945 units (31st March, 2020: Nil) Invesco India Money Market Fund Direct Plan Growth 1,000 1,001.07 -
28,88,161 units (31st March, 2020: 12,92,190 units) Sundram Money Fund Regular Plan 10 1,245.41 538.09
Growth
Nil (31st March, 2020: 79,798 units) Aditya Birla Sun Life Overnight Fund - Growth 1,000 - 860.40
Regular Plan
8,02,728 units (31st March, 2020: 22,11,291 units) Aditya Birla Sun Life Liquid Fund - 100 2,651.22 7,066.39
Growth Direct Plan
Nil (31st March, 2020: 92,573 units) Aditya Birla Sun Life Overnight Fund - Growth Direct 1,000 - 1,000.02
Plan
Nil (31st March, 2020: 2,50,971 units) Aditya Birla Sun Life Money Manager Fund - 100 - 679.93
Growth Direct Plan
Nil (31st March, 2020: 54,432 units) DSP Liquid Fund - Regular Growth Plan 10 - 1,536.16
Nil (31st March, 2020: 18,427 units) Invesco India Liquid Fund - Direct Plan Growth 1,000 - 502.73

39,645.81 12,183.72
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs
As at As at
31st March, 2021 31st March, 2020
11. Current Loans
At Amortised Cost

(a) Loans to Related Parties

- Loan to Subsidiary companies (Interest bearing)
- Considered good - Secured - -
- Considered good - Unsecured 290.00 -
- Which have significant increase in Credit Risk - -
- Credit impaired - -
290.00 -
Other Loans
- Loans to others
- Considered good - Unsecured 166.50 215.00
- Which have significant increase in Credit Risk - -
- Credit impaired - -
166.50 215.00
- Inter Corporate Deposits
- Considered good - Unsecured 1,39,298.00 45,371.00
- Which have significant increase in Credit Risk - -
- Credit impaired 7,000.00 7,000.00
1,46,298.00 52,371.00
Less - Provision 7,000.00 7,000.00
1,39,298.00 45,371.00

- Loans to Employees
- Considered good - Unsecured 9.78 17.16

1,39,764.28 45,603.16
12. Trade Receivables

- Considered good - Secured - -

- Considered good - Unsecured 42,368.48 57,772.15
- Which have significant increase in Credit Risk - -
- Credit impaired - -
42,368.48 57,772.15
Provision for Doubtful Debts - -
42,368.48 57,772.15

a. Trade Receivables are non-interest bearing and generally on terms of 0 to 90 days.

b. Trade Receivables are hypothecated against the borrowings obtained by the Group as referred in Note 23.
c. For ageing analysis of Trade Receivable, Refer Note 69 F.
d. Trade Receivables of a subsidiary of the Company, Bhubaneswari Coal Mining Ltd., includes 92.08 Lakhs towards water tax withheld by MCL from running sale
bills. In this regard the subsidiary company has filed civil suit bearing No. 206 of 2019 before the Court of Civil Judge, Sambalpur challenging its legality and praying for
an injuction to be passed for non-deduction of any further sum from the account / bill of the subsidiary company. The matter is pending for hearing.

13. Cash and Bank Balances

13(i). Cash and Cash Equivalents

Balances with Banks:

- On Current Accounts 1,018.86 2,911.39
- On Cash credit account 1,031.82 815.87
Deposit with Original Maturity for less than 3 months 1,203.59 918.09
Cheques, Drafts on hand 57.95 446.02
Cash on hand 2.63 5.39
3,314.85 5,096.76

13(ii). Other Bank Balances :

Deposit with Original Maturity for more than 3 months but not more than 12 months * 25,529.99 380.57
25,529.99 380.57
* Includes 116.22 Lakhs is held as margin money for Bank Guarantees given to
Government Authorities.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs
As at As at
31st March, 2021 31st March, 2020

14. Other Current Financial Assets

(Unsecured, considered good, unless stated otherwise)
Derivatives not designated as hedges
Assets on forward contracts - 13.76

Financial assets at amortised cost

Security Deposits 48.74 29.24
Claims & Refunds Refundable 5,590.59 3,219.54
Finance Lease Receivable 69.30 62.32

Deposit with Non-Banking Financial Company (NBFC) with initial maturity more than 37,500.00 -
3 months

Interest Accrued on:

- Fixed Deposits 327.37 1.74
- Investments 0.39 0.39
- Loans & Inter-corporate Deposits etc. :
Considered good 10,959.69 3,410.70
Considered doubtful 1,066.09 1,066.09
12,353.54 4,478.92
Less: Provision 1,066.09 1,066.09
11,287.45 3,412.83
54,496.08 6,737.69

15. Current Tax Assets (Net)

Advance Payment of Income Tax & Tax Deducted at Source (net of Provision for Tax) 10,983.73 12,527.69

10,983.73 12,527.69
16. Other Current Assets

(Unsecured, considered good, unless stated otherwise)

Advances recoverable in cash or in kind or for value to be received 1,808.21 1,705.16
Pre-paid Expenses 668.46 846.42
Balance with Government Authorities * 15,741.20 25,225.51
18,217.87 27,777.09

* Balance with Government Authorities of a subsidiary of the Company, Bhubaneswari Coal Mining Ltd., includes 314.27 Lakhs (FY 2014-15 146.04 Lakhs & FY
2015-16 168.23 Lakhs) for Refund of Works Contract Tax. The subsidiary company has filed a writ petition bearing No. WP(C )20946 of 2016 pending at Hon'ble High
Court, Odisha against the order of rejection of refund application passed by Deputy Commissioner of Commercial Tax, Angul Circle, Angul.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs

17. Share Capital

As at As at
Authorised Share Capital 31st March, 2021 31st March, 2020

Authorised :
4,01,00,00,000 (31st March, 2020: 2,01,00,00,000) Equity Shares of 4,01,000.00 # 2,01,000.00
10/- each
29,90,00,000 (31st March, 2020: 29,90,00,000) Preference Shares of 2,99,000.00 2,99,000.00
100/- each
7,00,000.00 5,00,000.00

Issued, Subscribed and Fully paid up Equity Share capital

Number in Lakhs
Issued and fully paid Equity Shares of 10/- each
As at 31st March, 2019 9,65,979 96.60
Issued during the year 2,38,271 23.83
Issued Bonus Shares during the year 1,80,63,75,000 * 1,80,637.50
As at 31st March, 2020 1,80,75,79,250 1,80,757.93
Issued during the year 15,06,31,603 ** 15,063.16
As at 31st March, 2021 1,95,82,10,853 1,95,821.09

Terms/ rights attached to Equity Shares

The Company has only one class of equity shares having a par value of 10/- per share. Holder of each equity shares is entitled to one vote per share. The
Company declares and pays dividends in Indian Rupees. During the year ended 31st March, 2021, the amount of per share dividend recognized as distribution
to Equity Shareholders was Nil per share (31st March, 2020: 2/- per share). The Board of Directors, in its meeting on 29th June, 2021, have not
recommended any dividend for the financial year ended 31st March, 2021.
In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all
preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.
# On 29th September, 2020, the authorised share capital of the Company was increased from 2,01,00,00,000 no. Equity Shares to 4,01,00,00,000 no. Equity
shares having face value of 10/- per Share.
* During the year FY 2019-20, the Company had allotted 1,806,375,000 no. of equity shares of 10/- each as bonus shares on 23rd March, 2020 in the ratio
of 1500 equity share of 10/- each for every 1 equity share held as on record date fixed for entitlement of Bonus Shares, by utilising 149,600.00 Lakhs from
Capital Redemption Reserve and 31,037.50 Lakhs from Securities Premium. Out of the total Bonus Shares allotted, 18,000 shares could not be credited for
those shareholders who are holding their existing equity shares in physical form and do not have operative demat account. These Bonus Shares will be
transferred once these shareholders open demat account and get their existing equity shares dematerialised.
** During the year FY 2020-21, the Company has allotted 15,06,31,603 no. of equity shares of 10/- each on right issue basis at a premium of 46/- each on
25th May, 2020.

Details of shareholders holding more than 5% shares in the Company

Name of the Shareholder As at As at

31st March, 2021 31st March, 2020
Number % holding in the class Number % holding in the class

Equity Shares of 10 each fully paid :

Surya Abha Investments Pte. Ltd. 95,94,34,697 49.00% 88,56,32,028 49.00%
Birla Group Holdings Pvt.Ltd. 39,07,35,348 19.95% 29,65,42,063 16.41%
Umang Commercial Company Pvt. Ltd. 30,59,71,854 15.63% 20,77,54,911 11.49%
Manav Investment & Trading Co. Ltd. 13,56,25,000 6.93% 13,52,53,609 7.48%

As per records of the Company the above shareholding represents legal ownership of shares.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

18. Other Equity in Lakhs

As at As at
31st March, 2021 31st March, 2020
(i) Investment Subsidy Reserve
Balance as per last Financial Statements 28.90 28.90

(ii) Capital Reserve

Balance as per last Financial Statements 356.75 356.75
(iii) Capital Redemption Reserve
Balance as per last Financial Statements 250.00 1,49,850.00
Less: Utilised for issue of Bonus Shares during the year - 1,49,600.00
250.00 250.00
(iv) Debenture Redemption Reserve
Balance as per last Financial Statements 13,500.00 17,250.00
Less: Transferred to General Reserve 13,500.00 11,875.00
- 5,375.00
Add: Transferred from Retained Earnings - 8,125.00
- 13,500.00
(v) General Reserve
Balance as per last Financial Statements 1,99,022.94 1,87,106.88
Add: Transferred on account of Amalgamation (Refer note 49) - 41.06
Add: Transferred from Debenture Redemption Reserve 13,500.00 11,875.00
2,12,522.94 1,99,022.94

(vi) Amalgamation Reserve

Balance as per last Financial Statements 3,393.32 -
Add: Transferred on account of Amalgamation (Refer note 49) - 3,393.32
3,393.32 3,393.32

(vii) Securities Premium

Balance as per last Financial Statements 6,84,418.34 4,60,279.85
Add: Premium on issue of Equity Shares during the year 69,290.54 2,55,175.99
7,53,708.88 7,15,455.84
Less: Utilised for issue of Bonus Shares during the previous year - 31,037.50
7,53,708.88 6,84,418.34
(viii) Retained Earnings
Balance as per last Financial Statements (1,89,561.74) (1,07,034.22)
Add: Profit/(Loss) for the year 1,59,697.34 67,787.84
Less: Transferred on account of Amalgamation (Refer note 49) - 1,96,671.57
Less: Impact on adoption of Ind AS 116 - Leases - 8.11
Less: Actuarial Losses on defined benefit obligation , net of taxes (109.19) 262.37

Add: Realised Gain / (Loss) of FVTOCI on Equity transfer from - 54,778.09

FVTOCI Reserve
Less: Appropriations:
Equity Dividend ( Nil per share) - 21.90
[31st March, 2020: 2/- per share]
Tax on Equity Dividend - 4.50
Transfer to Debenture Redemption Reserve - 8,125.00
Total Appropriations - 8,151.40

Closing Balance (29,755.21) (1,89,561.74)

(ix) Special Reserve

Reserve Fund under RBI Act, 1934
Balance as per last Financial Statements 4,799.95 4,370.92
Add: Transferred on account of Amalgamation (Refer note 49) - 429.03
4,799.95 4,799.95

(x) FVTOCI Reserve

Balance as per last Financial Statements (2,20,103.39) 5,14,449.96
Net Gain / (Loss) on FVTOCI Investments 13,12,059.19 (7,34,553.35)
Net Gain / (Loss) on disposal of FVTOCI Investments - 54,778.09
Less: Realised Gain / (Loss) of FVTOCI on Equity - 54,778.09
transfer to Retained Earnings
10,91,955.80 (2,20,103.39)

(xi)
Equity component of compound Financial
Instruments (Compulsorily Convertible Debentures)
Balance as per last Financial Statements - -
Changes during the Year [Refer Note:19(v) & (vi)] 65,606.17 -
65,606.17 -

Total 21,02,867.50 4,96,105.07

 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

Notes:
Capital Reserve
This reserve is created on acquisition of Electrotherm Renewables Private Ltd., Bharat Trading International and Pro Minerals Pvt.
Ltd. in earlier years.

Capital Redemption Reserve

This reserve was created upon redemption of Preference Shares issued and on the event of buyback of Equity Shares in earlier
years.

Debenture Redemption Reserve

This reserve is created upon redemption of Non Convertible Debentures, from time to time as per requirement of Companies Act.

General Reserve
General reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purpose. General
reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.

Amalgamation Reserve
The difference between the amount recorded as share capital issued plus any additional consideration in the form of cash or other
assets and the amount of share capital of the Transferor companies has been transferred to capital reserve captioned as
"Amalgamation Reserve" and is presented separately from other Capital Reserves.

Securities Premium
This reserve has been created on issue of shares by way of preferential issue and right issue.

Retained Earnings
This reserve represents undistributed accumulated earnings of the Company as on the balance sheet date.

Special Reserve - Reserve Fund under RBI Act, 1934

Represents the reserve created pursuant to the Reserve Bank of India Act, 1934 (the "RBI Act"). Appropriation from this Reserve
Fund is permitted only for the purposes specified by RBI.

FVTOCI Reserve
The Group has elected to recognise changes in the fair value of certain instruments in equity securities and debt instruments in
Other Comprehensive Income. These changes are accumulated with the FVOCI reserve within equity. The Group transfers
amounts from this reserve to retained earnings when the relevant equity securities are de-recognised.

Equity component of compulsorily convertible debentures

The above covers the equity component of the issued compulsorily convertible debentures. Each debentures shall be compulsorily
convertible into 1,35,000 (One Lakh Thirty Five Thousand) equity shares of face value of 10/- (Rupees Ten) and the price at
which Equity Shares will be issued upon conversion (the "Conversion Price") will be 74.07 (Rupees Seventy Four and paisa
Seven Only) including premium of 64.07 (Rupees Sixty Four and paisa Seven Only), for each Equity Share. The same also
includes deferred tax assets created on the timing difference of interest on the above compulsorily convertible debentures.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728
in Lakhs

Non-current Current Maturities (Refer note 25)

As at As at As at As at
19. Borrowings
31st March, 2021 31st March, 2020 31st March, 2021 31st March, 2020
Debentures
Unsecured and privately placed
Nil (31st March, 2020: 1,300), 7.93% Unsecured Redeemable - - - 13,000.00
Non Convertible Debentures of 10 Lakhs each
Nil (31st March, 2020: 850), 7.90% Unsecured Redeemable - - - 8,500.38
Non Convertible Debentures of 10 Lakhs each
Nil (31st March, 2020: 1,500), 9.15% Unsecured Redeemable - 14,970.64 - -
Non Convertible Debentures of 10 Lakhs each
Nil (31st March, 2020: 1,750), 9.15% Unsecured Redeemable - 17,465.34 - -
Non Convertible Debentures of 10 Lakhs each
780 (31st March, 2020: Nil) 6% Unsecured Compulsorily 2,360.77 - - -
Convertible Debentures of 100.00 Lakhs each (Series "H") -
Partly paid up
750 (31st March, 2020: Nil) 6% Unsecured Compulsorily 22,699.67 - - -
Convertible Debentures of 100.00 Lakhs each (Series "I")
Term Loans (Secured)
From Banks
Rupee Loan 1,27,729.56 30,875.96 7,621.68 2,152.51
Foreign Currency Loan 7,917.50 11,482.03 2,639.92 2,628.26
Working Capital Term Loan under Guaranteed Emergency 2,448.00 - 52.00 -
Credit Line ECLGS 2.0
Term Loans (Unsecured)
From Banks
Rupee Loan - 62,185.80 - -
Total 1,63,155.50 1,36,979.77 10,313.60 26,281.15

(i) 7.93% (31st March, 2020: 7.93% p.a.) Unsecured Redeemable Non Convertible Debentures of 10 Lakhs each was repaid on 24th April, 2020. The
debentures carried an effective interest rate of 7.93% p.a.(31st March, 2020: 7.93% p.a.).

(ii) 7.90% (31st March, 2020: 7.90% p.a.) Unsecured Redeemable Non Convertible Debentures of 10 Lakhs each was repaid on 13th April, 2020. The
debentures carried an effective interest rate of 7.91% p.a.(31st March, 2020: 7.91% p.a.).

(iii) 9.15% (31st March, 2020: 9.15%) Unsecured Redeemable Non Convertible Debentures of 10 Lakhs each was prepaid on 28th December, 2020.
The debentures carried an effective interest rate of 9.26% p.a.(31st March, 2020: 9.26% p.a.).
(iv) 9.15% (31st March, 2020: 9.15%) Unsecured Redeemable Non Convertible Debentures of 10 Lakhs each was prepaid on 15th January, 2021.
The debentures carried an effective interest rate of 9.25% p.a.(31st March, 2020: 9.25% p.a.).

(v) 6% (31st March, 2020: Nil) Unsecured Compulsorily Convertible Debentures (Series H) of 100.00 Lakhs each shall be automatically and
compulsorily converted on 12th October, 2027 other than such Series H CCDs which remain partly paid up. Any such Series H CCDs that remain
unconverted upon expiry of 7 (Seven) years from the date of allotment shall be automatically and compulsorily converted into equity shares upon
such Series H CCDs being fully paid up. The debentures carry an effective interest rate of 7.95% p.a.(31st March, 2020: Nil). Each Series H - CCD
shall be converted into 1,35,000 (One Lakh Thirty Five Thousand) equity shares of face value of 10/- and the price at which Equity Shares will be
issued upon conversion will be 74.07 (Rupees Seventy Four and paisa Seven Only) including premium of 64.07 (Rupees Sixty Four and paisa
Seven Only), for each Equity Share.
(vi) 6% (31st March, 2020: Nil) Unsecured Compulsorily Convertible Debentures (Series I) of 100.00 Lakhs each shall be automatically and
compulsorily converted on 12th October, 2027. The debentures carry an effective interest rate of 7.95% p.a.(31st March, 2020: Nil). Each Series I -
CCD shall be converted into 1,35,000 (One Lakh Thirty Five Thousand) equity shares of face value of 10/- and the price at which Equity Shares
will be issued upon conversion will be 74.07 (Rupees Seventy Four and paisa Seven Only) including premium of 64.07 (Rupees Sixty Four and
paisa Seven Only), for each Equity Share.
(vii) (a) Rupee / Rupee equivalent loan from a bank is secured by First Pari Passu Floating charge on the Current Assets of the Company. The loan is
payable in 5 annual instalments starting 21st December, 2023. The loan carried an effective interest rate of 8.02% p.a. (31st March, 2020: Nil). The
lender has unconditional put option at the end of 3rd, 4th and 5th year (from the date of 1st disbursement) for 33.33% of the facility amount on each
occasion (adjusted for the repayments already made till such date). Company has entered into a Rupee Term Loan Facility with Bank with FCTL as
a sub-limit. Loan was disbursed to the Company in fully hedged FCTL which will be replaced with Rupee Term Loan at the end of tenure. The loan is
repayable in INR in 5 annual instalments starting 21st December, 2023, hence the outstanding balance of the term loan as on 31st March, 2021 is
classified as rupee loan.

(b) Rupee / Rupee equivalent loan from a bank is secured by First Pari Passu Floating charge on the Current Assets of the Company. The loan is
payable in 4 annual instalments starting 19th November, 2022. The loan carried an effective interest rate of 8.03% p.a. (31st March, 2020: Nil).
Company has entered into a Rupee Term Loan Facility with bank with FCNR (B) as a sub-limit. Part loan was disbursed to the Company as fully
hedged FCNR (B) which will be replaced with Rupee Term Loan at the end of tenure. The loan is repayable in INR in 4 annual instalments starting
19th November, 2022, hence the outstanding balance of the term loan as on 31st March, 2021 is classified as rupee loan.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs
(vii) (c) Rupee loan from a bank is secured by exclusive first charge on all the immovable and movable assets & current assets,
both present and future, pertaining to Company's 22 MW Solar Power project at Bhadla, Rajasthan. The loan is repayable in 51
equal quarterly instalments from 30th September, 2014. The loan carried an effective interest rate of 9.05% p.a. (31st March,
2020: 9.05% p.a.). The loan has been fully repaid on 5th April, 2021.
(d) Rupee Loan of 30,531.88 Lakhs (31st March, 2020: 25,825.03 Lakhs) taken by a subsidiary of the Comany, Pro
Minerals Pvt. Ltd., from a bank is secured by creation of first charge on the movable (excluding current assets) and immovable
assets including leasehold land both present and future and carries effective interest @ 12M MCLR+10 bps payable at monthly
intervals.The rate will be reset every 12 months. Presently rate for RTL-1 is 7.85% p.a. and RTL- 2 is 7.65% p.a. (31st March,
2020: RTL - 1 - 8.80% p.a. and RTL - 2 - 8.65% p.a.). The tenure of the loan is 10 years including moratorium period of 24
months from the date of first disbursement, with put call option at the end of 6 years from the date of first disbursement basis
and repayable in 32 equal quarterly instalments @ 3.125% of the availed limits.The first instalment shall be due at the end of
27th month from date of first disbursement. The loan is also secured by way of Corporate Guarantee given by the Holding
Company.

(viii) Foreign currency loan from a bank is secured by first ranking exclusive charge on all the present and future immovable
properties and movable fixed assets pertaining to Company's 38.5 MW (DC) Solar Power project at Achampet, Kalwakurthy,
Peddashankarampet and Mustyal in Andhra Pradesh. The above Loan carried interest of 6 month Libor + 236 bps and is
repayable in 19 half yearly un-equal instalments from 3rd February, 2015. The loan carried an effective interest rate of 10.83%
p.a. (31st March, 2020: 10.83% p.a.). The effective interest rate includes the effects of related cross currency interest rate
swap.
(ix) Working Capital Term Loan under Emergency Credit Line Guarantee Scheme (ECLGS 2.0) is taken by a subsidiary of the
Company, Pro Minerals Pvt. Ltd., and is secured by creation of second charge over existing primary and collateral security
available for WC and TL facilities. It carries effective interest @ 3M MCLR payable at monthly intervals.The rate will be reset
every 3 months. Present rate is 7.30% p.a. (31st March, 2020: Nil). The tenure of the loan is 5 years including moratorium
period of 12 months from the date of first disbursement and repayable in 48 equal monthly instalments @ 2.08% per month of
the sanctioned / availed limits.The first instalment shall be due at the end of 12th month from date of first disbursement.

(x) Rupee Term loans from banks are unsecured and repayable after 3 years 4 months as bullet repayment in FY 2021-22. The
loans carry an average effective interest rate of 8.29% p.a. (31st March, 2020: 8.58% p.a.) and and was fully pre-paid within
31st March, 2021.

As at As at
31st March, 2021 31st March, 2020
20. Other Non-current Financial Liabilities
(At amortised cost)
Deposits 1,258.81 1,143.49
Right of use - Lease Rent Liability 51.28 40.41
Less : Current maturity of Lease Rent Liability (Refer note 25) 15.57 3.99
35.71 36.42

1,294.52 1,179.91
21. Long Term Provisions

Provision for Site Restoration * 142.17 142.17

142.17 142.17

* The activities of the Company involve mining of land taken under lease. In terms of the provisions of relevant statutes and
lease deeds, the mining areas would require restoration at the end of the mining lease. The future restoration expenses are
affected by a number of uncertainties, such as, technology, timing, etc. The management of the Company has estimated such
future expenses based on directions of relevant authorities and due provision thereof has been made in the accounts in terms
of relevant statute. The movements in site restoration expenses during the year is as follows :

At the beginning of the year 142.17 142.17

Addition during the year - -
At the end of the year 142.17 142.17

22. Other Non-current Liabilities

Export Obligations (Deferred Income) 2,823.27 2,823.27

Government Grant
At the beginning of the year 187.50 250.00
Less: Recognized in the Statement of Profit & Loss * 62.50 62.50
At the end of the year 125.00 187.50

2,948.27 3,010.77

* 62.50 Lakhs (31st March, 2020 : 62.50 Lakhs) have been adjusted against Depreciation and Amortisation expenses.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs
23. Short Term Borrowings As at As at
31st March, 2021 31st March, 2020
Secured
From Banks
Cash Credits 433.34 361.66
PCFC Loan - 4,000.00

Unsecured
From Banks
Short Term Loan - 76,600.00

Unsecured
Commercial Paper
From Banks - 9,875.93
Inter Corporate Deposits
From Others 1,88,500.00 1,27,500.00

Total 1,88,933.34 2,18,337.59

(i) Cash Credit is secured by hypothecation of inventories & book debts ranking pari-passu amongst banks. Cash Credit and Bank
Overdraft carries effective interest @ 6.80% p.a. to 8.30% p.a.(31st March, 2020: 7.80% p.a. to 9.20% p.a.).
Cash credit from HDFC bank (secured)
A subsidiary of the Comany, Rajmahal Coal Mining Ltd., has a sanctioned cash credit limit of 2,500.00 Lakhs from HDFC
Bank against which utilisation as on 31st March, 2021 is 426.13 Lakhs (31st March, 2020: 1.67 Lakhs debit balance). The
same is secured by way of first charge on pari passu basis on the stock in trade, book debts and receivables of the subsidiary
company & carries interest @ 7.55 % p.a i.e. 1 Year MCLR + 35 bps. The interest rate will be reset at every anniversary from
the date of release of overdraft. WCDL/Short term loan - The rate of interest for tranche would be stipulated by the bank at the
time of disbursement of each tranche.
Cash credit from IndusInd Bank (secured)
A subsidiary of the Comany, Rajmahal Coal Mining Ltd., has taken a cash credit limit of 500.00 Lakhs (31st March, 2020:
Nil ) from IndusInd Bank against which there is debit balance of 1.33 Lakhs as on 31st March, 2021 (31st March, 2020: 0.41
debit balance). The same is secured by way of first charge on pari passu basis on the current assets, present and future, of the
subsidiary company & carries interest @ 9.20 % p.a i.e. 1 Year MCLR + 55 bps. The interest rate will be reset at every
anniversary from the date of release of overdraft. WCDL/Short term loan - The rate of interest for tranche would be stipulated
by the bank at the time of disbursement of each tranche.
A subsidiary of the Comany, Rajmahal Coal Mining Ltd., has taken 6,000.00 Lakhs of non fund based limit from IndusInd
bank which is secured by way of exclusive charge on the moveable fixed assets of the subsidiary company.
Cash Credit of a subsidiary of the Company, Pro Minerals Pvt. Ltd., is secured by creation of exclusive charge on the entire
current assets, present and future and exclusive second charge on the entire fixed assets, moveable and immovable property,
present and future. It carries effective interest @ 3M MCLR + 20 bps payable at monthly intervals.The rate will be reset every 3
months. Present rate is 7.50% p.a. (31st March, 2020: 8.016% p.a.) and the loan is repayable on demand.
A subsidiary of the Company, Bhubaneswari Coal Mining Ltd. has availed working capital facilities from HDFC Bank which is
secured by first exclusive charge on the current assets of the subsidiary company.
(ii) Packing Credit Loan is secured by hypothecation of inventories & book debts ranking pari-passu amongst banks and it carries
effective interest @ 1.59% p.a. on the principal amount denominated in USD (31st March, 2020: 2.52% to 2.82%. for USD
denominated Loan).
(iii) Short-Term Loan from a bank carries effective interest @ 5.40% p.a. to 9.00% p.a. (31st March, 2020: 6.92% p.a. to 9.50%
p.a.).
(iv) Commercial papers represent short term loans and carries effective interest @ 4.50% p.a. to 7.00% p.a. (31st March, 2020:
6.50% p.a. to 7.75% p.a)
(v) Inter Corporate Deposits of 1,88,500.00 Lakhs taken by a subsidiary of the Company, IGH Holdings Pvt. Ltd., carries
effective interest @ 7.90% p.a. to 10.15% p.a. (31st March, 2020: 9.00% p.a. to 12.00% p.a.)

24. Current Trade Payables

Total outstanding dues of micro enterprises and small enterprises 123.11 66.87
(Refer Note 45)
Total outstanding dues of creditors other than micro enterprises and small 41,444.54 40,568.63
enterprises

41,567.65 40,635.50

Trade Payables are non-interest bearing and normally settled on 0 to 45 days terms.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs
As at As at
31st March, 2021 31st March, 2020

25. Other Current Financial Liabilities

Financial Liabilities at Fair value through Profit or Loss

Derivatives not designated as hedges
- Liability on Foreign Exchange Forward Contract 108.12 -
Financial Liabilities at amortised costs
Current maturities of Long Term Borrowings (Refer note 19) 10,313.60 26,281.15
Current maturities of Lease Rent Liability (Refer note 20) 15.57 3.99
Deposits 745.56 1,555.54
Interest accrued but not due on borrowings 5,810.37 7,704.95
Payable against purchase of Property, Plant & Equipment 5,247.36 2,281.60
22,240.58 37,827.23

26. Short Term Provisions

Provision for Leave Benefits 1,029.72 1,013.75

Provision for Gratuity 102.00 647.84
Contingent provision against Standard Assets 470.24 81.05

1,601.96 1,742.64

27. Current Tax Liabilities

Provision for Taxation (Net of Advance Tax) 4,457.02 4,115.11

4,457.02 4,115.11

28. Other Current Liabilities

Contract Liability 7,017.26 2,611.21

Statutory dues Payable 7,457.85 4,154.84
Interest payable on income tax 661.30 -
Customer refund Liability * 4,596.75 18,245.90
Other Miscellaneous 402.44 486.68
20,135.60 25,498.63

* Customer refund liability are recognized for discount payable to customers.

 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs

29. Revenue from Operations 2020-21 2019-20

Sale of Products
Domestic
Finished Goods 3,16,770.11 3,28,314.27
Power 11,145.79 11,979.16
Export
Finished Goods 82,380.03 83,318.14

4,10,295.93 4,23,611.57

Other Operating Revenue

Mining fees on coal production 86,069.57 83,942.66
Income from Financial Services 15,859.12 10,920.64
Certified Emission Reduction (CER) Credits 29.15 43.05
Finance Lease Rentals 934.75 949.55
Lease Rent from Operating Lease 81.59 88.40
Sale of Scrap 176.89 333.88
Other Operating Income 22.86 381.53
1,03,173.93 96,659.71

5,13,469.86 5,20,271.28

a) Reconciliation of the Revenue Recognised with the contract price -

Contract Price 4,10,295.93 4,52,946.40
Less: Adjustment for Discount - 29,334.83
Revenue from Operations (Gross) 4,10,295.93 4,23,611.57

b) Refer Note No.60 for disaggregated revenue information.

c) The Group recognises revenue at point in time.

30. Other Income

Profit on sale of Current Investments (Net) 942.70 910.25
Profit on Property, Plant & Equipment sold/discarded (Net) - 71.59
Unspent Liabilities, Provision no longer required and Unclaimed balances adjusted 1,936.98 2,157.46
Claims 116.51 78.05
Foreign Exchange Fluctuations (Net) 4.30 -
Fair value Gain on financial instruments through Profit or Loss (Net) 23,589.60 -
Contingent provision against Standard Assets no longer required written back - 211.27
Dividend Income on:
- Non-current Investments 0.79 2.14
Interest Income on:
- Non-current Investments 88.79 0.06
- Inter-Corporate Loans 2,999.07 2,443.54
- Debts, Deposits & Advances, etc. 983.62 955.33
Miscellaneous Income 1,141.08 891.19

31,803.44 7,720.88
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs

31. Cost of Raw Materials Consumed 2020-21 2019-20

Inventory at the beginning of the year 1,571.85 1,929.68

Add: Purchases 11,293.40 12,865.25 7,856.84 9,786.52
Less: Inventory at the end of the year 341.11 1,571.85
Less: Inventory Consumed for Pellet Plant - Trial Run 1,855.48 -
10,668.66 8,214.67

32. (Increase) / Decrease in Inventories

Inventories at the beginning of the year

Work-in-Progress 961.71 1,721.99
Finished Goods 17,284.16 10,537.12
Saleable Scrap - 18,245.87 98.00 12,357.11

Less: Inventories at the end of the year

Work-in-Progress 599.97 961.71
Finished Goods 14,268.59 17,284.16
Saleable Scrap - 14,868.56 - 18,245.87

3,377.31 (5,888.76)

33. Employee Benefits Expenses

Salaries, Wages and Bonus 13,766.73 14,709.65

[Includes 539.69 Lakhs (Previous year: 1,016.87 Lakhs) to
contractors]
Contribution to Provident & Other Funds (including 704.43 758.39
Administrative charges)
Gratuity Expense (Refer Note 58) 259.15 245.82
Employee Welfare Expenses 544.93 802.52
15,275.24 16,516.38

34. Finance Costs

Interest Expenses [Net of interest expenses Capitalised during 29,295.88 51,405.44

the year 1,478.78 Lakhs (Previous year: 1,526.07 Lakhs)]
Interest Expenses on Lease liability 3.28 3.34
Interest on Income Tax 661.30 30.90
Bank charges 988.88 385.54
30,949.34 51,825.22
35. Depreciation and Amortization Expenses

Depreciation on Tangible assets 12,568.16 12,819.46

Amortization of Intangible assets 802.58 17,971.45
13,370.74 30,790.91
Less: Government grant (Refer Note 22) 62.50 62.50
13,308.24 30,728.41
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs

2020-21 2019-20
36. Other Expenses

Iron ore raising (excavation & transport) 2,257.24 6,546.26

Explosive consumed 3,185.40 2,549.29
Consumption of stores, chemicals and spares 8,157.63 12,642.98
[Including 750.00 Lakhs (Previous year: 870.59 Lakhs) for
Drilling & Blasting]
Power and fuel 29,269.98 24,227.40
Overburden removal expenses 610.14 1,722.26
Royalty on iron ore 56,461.24 71,768.48
Dead rent and surface rent 12.84 23.42
Screening charges 2,791.37 4,521.59
Export duty 6,263.56 4,218.01
Repairs and Maintenance:
- Buildings 110.27 552.99
- Plant & machinery 11,826.10 12,302.69
- Others 1,110.85 13,047.22 1,756.75 14,612.43
Rent & hire charges (Net) 2,157.98 4,484.47
Insurance 505.88 393.39
Rates and taxes 272.69 209.08
Sales tax / GST / Entry tax - 2,290.55
Commission - Others 19.03 9.48
Payment to auditors (Refer details below) 82.38 88.15
Legal, professional and consultancy fees 2,663.38 2,817.63
Crushing and Conveying Charges 2,188.54 2,182.05
Rehabilitation & Resettlement 501.08 653.02
Quality Claims 508.22 558.80
Claims Paid [Refer Note 44B(k)] 542.16 1,581.04
Travelling and conveyance 1,112.74 1,758.46
Foreign Exchange Fluctuations (Net) - 309.46
Charity and donations 2,555.86 7,463.31
Contribution to District Mineral Fund / National Mineral 18,033.79 22,910.93
Exploration Trust
Loss on Property, Plant & Equipments sold/discarded (Net) 382.07 -
Irrecoverable Loans / Debts & Advances written off 21.33 -
Capital Work-in-Progress written off - 222.23
Fair value loss on Financial Instruments at fair value through 963.01 7,900.17
Profit & Loss
Directors' sitting fees 22.54 11.43
Contingent provision against Standard Assets 389.18 -
Periphery Development Expenses 1,110.87 488.32
Miscellaneous expenses 5,367.65 6,262.72
1,61,457.00 2,05,426.81

Payment to Auditors

As Auditor:
- Audit Fees 49.01 51.18
In Other Capacity:
- For Tax Audit Fees 8.54 7.45
- For Certificates and Other Services 24.80 ** 28.13 *
- For Reimbursement of Expenses 0.03 1.39
82.38 88.15

* Including Half yearly audit / Limited review fees of 8.06 Lakhs.

** Including Limited review fees of 10.65 Lakhs.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

37. Deferred Tax and Income Tax in Lakhs

a) Deferred Tax
Deferred Tax relates to the following:

As at 31st As at 31st
Particulars
March, 2021 March, 2020
Deferred Tax Assets 20,149.13 52,569.92
Deferred Tax Liabilities (5,002.36) (3,732.72)
Total 15,146.77 48,837.20

Recognised Recognised in Other Recognised MAT

As at 31st Effect due to Recognised directly in As at 31st
Particulars in Profit and Comprehensive Credit / (Utilized/
March, 2020 Amalgamation Equity March, 2021
Loss Income Adjusted)

A.Deferred Tax Assets

Expenditures falling under section 43B of Income Tax Act, 1961 501.83 (131.13) - - - - 370.70
Fair valuation of FVTOCI investments 62,206.89 - - (72,218.89) - - (10,012.00)
Fair valuation of FVTPL investments 64,028.95 (4,694.75) (59,520.87) - - - (186.67)
Fair valuation of cross currency interest rate swap (388.65) 326.93 - - - - (61.72)
Fair valuation of Financial Liabilities 596.08 (502.68) - - - - 93.40
Fair valuation of Loans, Advances and other Financial Assets 903.85 15.87 - - - - 919.72
Contingency provision against Standard Assets 20.40 97.95 - - - - 118.35
Provision for doubtful debts and advances 396.00 - - - - - 396.00
Interest on Compound Financial Instruments - (478.33) - - 9,235.45 - 8,757.12
Provision for site restoration 49.68 - - - - - 49.68
Unrealised profit on stock - 2,550.24 - - - - 2,550.24
Carried forward unabsorbed depreciation and business losses 4,509.88 (36.26) - - - - 4,473.62
Others 65.39 15.59 - - - - 80.98
MAT credit entitlement 51,306.41 - - - - (38,706.70) * 12,599.71
1,84,196.71 (2,836.57) (59,520.87) (72,218.89) 9,235.45 (38,706.70) 20,149.13
Less: Net Deferred Tax Assets not recognised ** 1,31,626.79 (9,899.03) (59,520.87) (62,206.89) - - -
Total - A 52,569.92 7,062.46 - (10,012.00) 9,235.45 (38,706.70) 20,149.13
B. Deferred Tax Liabilities
Fixed assets: Impact of difference between tax depreciation and 3,590.14 1,179.12 - - - - 4,769.26
depreciation/amortisation for financial reporting
Fair valuation of FVTOCI investments 142.96 - 29.25 - - 172.21
Re-measurement Gains/ (Losses) on defined benefit plans- FVTOCI - 1.66 - 60.23 - - 61.89
Others (0.38) (0.50) - (0.12) - - (1.00)
Total - B 3,732.72 1,180.28 - 89.36 - - 5,002.36

Net Deferred Tax Assets / (Liabilities) [A-B] 48,837.20 5,882.18 - (10,101.36) 9,235.45 (38,706.70) 15,146.77

* Represents MAT credit entitlement adjusted with current tax liability on utilisation / adjustment.
** In the absence of probability of sufficient future taxable income, few subsidiaries of the Company has recognised deferred tax assets only to the extent of deferred tax liabilities as at 31st March, 2021.

Recognised Recognised in Other Recognised MAT

As at 31st Effect due to Recognised directly in As at 31st
Particulars in Profit and Comprehensive Credit / (Utilized/
March, 2019 Amalgamation Equity March, 2020
Loss Income Adjusted)
A.Deferred Tax Assets
Expenditures falling under section 43B of Income Tax Act, 1961 507.22 (5.39) - - - - 501.83
Fair valuation of FVTOCI investments 20,095.68 42,111.21 - - - - 62,206.89
Fair valuation of FVTPL investments 61,092.63 2,936.32 - - - - 64,028.95
Fair valuation of cross currency interest rate swap (44.55) (344.10) - - - - (388.65)
Fair valuation of Financial Liabilities (38.48) 634.56 - - - - 596.08
Fair valuation of Loans, Advances and other Financial Assets 894.51 9.34 - - - - 903.85
Contingency provision against Standard Assets 81.33 (60.93) - - - - 20.40
Provision for doubtful debts and advances 396.00 - - - - - 396.00
Provision for site restoration 49.68 - - - - - 49.68
Payment under voluntary retirement scheme 39.62 (39.62) - - - - -
Carried forward unabsorbed depreciation and business losses 53,297.37 (48,787.49) - - - - 4,509.88
Others 32.96 32.43 - - - - 65.39
MAT credit entitlement 31,806.33 - - - - 19,500.08 51,306.41
1,68,210.30 (3,513.67) - - - 19,500.08 1,84,196.71
Less: Net Deferred Tax Assets not recognised ** 87,678.06 43,948.73 - - - - 1,31,626.79
Total - A 80,532.24 (47,462.40) - - - 19,500.08 52,569.92
B. Deferred Tax Liabilities
Fixed assets: Impact of difference between tax depreciation and 9,172.53 (5,582.39) - - - - 3,590.14
depreciation/amortisation for financial reporting
Fair valuation of FVTOCI investments - 154.95 - (11.99) - - 142.96
Others 2.79 (3.17) - - - (0.38)
Total - B 9,175.32 (5,430.61) - (11.99) - - 3,732.72

Net Deferred Tax Assets / (Liabilities) [A-B] 71,356.92 (42,031.79) - 11.99 - 19,500.08 48,837.20

** In the absence of probability of sufficient future taxable income, few subsidiaries of the Company has recognised deferred tax assets only to the extent of deferred tax liabilities as at 31st March, 2020.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

in Lakhs

i) The Group has not recognised deferred tax on temporary differences relating to depreciation that originates and
reverses during the tax holiday periods.

ii) The Group has not recognised deferred tax assets on following long-term & short term capital loss, unabsorbed
depreciation and business loss as presently it is not probable of recovery:

Description AY Amount Tax Impact Year of Expiry

Long Term Capital Loss 2013-14 1,906.77 444.20 2021-22
Long Term Capital Loss 2014-15 252.10 58.73 2022-23
Unabsorbed Depreciation 2014-15 3,780.85 1,321.03 Indefinite Period
Business Loss 2014-15 262.28 91.64 2022-23
Unabsorbed Depreciation 2015-16 3,122.31 1,090.93 Indefinite Period
Business Loss 2015-16 5,151.49 1,799.93 2023-24
Long Term Capital Loss 2016-17 739.14 172.19 2024-25
Unabsorbed Depreciation 2016-17 1,762.75 615.90 Indefinite Period
Business Loss 2016-17 3,320.28 1,160.11 2024-25
Long Term Capital Loss 2017-18 234.46 54.62 2025-26
Unabsorbed Depreciation 2017-18 1,443.72 504.43 Indefinite Period
Business Loss 2017-18 731.07 255.44 2025-26
Long Term Capital Loss 2018-19 33,778.73 7,869.09 2026-27
Unabsorbed Depreciation 2018-19 1,223.49 427.49 Indefinite Period
Business Loss 2018-19 1,554.76 543.23 2026-27
Business Loss 2018-19 3.61 0.91 2026-27
Business Loss 2019-20 13,573.11 3,416.08 2027-28
Unabsorbed Depreciation 2019-20 1,048.14 366.22 Indefinite Period
Business Loss 2019-20 8,559.51 2,990.69 2027-28
Long Term Capital Loss 2019-20 694.44 161.78 2027-28
Unabsorbed Depreciation 2020-21 940.02 328.13 Indefinite Period
Business Loss 2020-21 3,122.37 1,079.82 2028-29
Unabsorbed Depreciation 2021-22 4,657.89 1,627.47 Indefinite Period
Business Loss 2021-22 3,002.74 1,049.16 2029-30
94,866.03 27,429.22

b) Income Tax

The major components of income tax expense for the years ended 31st March, 2021 and 31st March, 2020 are:

2020-21 2019-20
Current Income Tax :
Current income tax charge 79,477.34 28,652.37
MAT credit Entitlement (482.43) (19,500.08)
For earlier years (434.60) (0.42)

Deferred Tax :
Relating to origination and reversal of temporary differences (5,882.18) 42,174.93
Income tax expense reported in the statement of Profit or Loss 72,678.13 51,326.80

Section 115BAA of the Income Tax Act,1961 gives the corporate assessee an option to apply a lower tax rate with effect
from 1st April, 2019 subject to certain conditions specified therein. The Company has assessed the impact of the same
and believes that it will continue to remain in the existing tax structure for the foreseeable future based on its forecasted
profits. Accordingly, no effect in this regard has been considered in measurement of tax expenses for the purpose of these
financial statements. Management, however, will continue to review its profitability forecast at regular intervals and make
necessary adjustments to tax expenses when there is reasonable certainty to avail the lower rate of tax.

Some subsidiaries of the Company has exercised the option permitted under section 115BAA of the Income Tax Act, 1961
to compute the income tax at lower rate of 22% (plus applicable surcharge and cess) instead of normal tax rate of 30%
(plus applicable surcharge and cess) from the current financial year and resultant impact has been shown in the financial
statements.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

38. Earning per share

The following reflects the profit and Share data used in the basic and diluted EPS computations:

2020-21 2019-20
in Lakhs in Lakhs

Profit / (Loss) after tax attributable to equity holders for basic earnings 1,59,697.34 67,787.84
Add: Interest on Convertible Debentures (Net of Tax) 623.65 -
Net Profit / (Loss) after tax 1,60,320.98 67,787.84

2020-21 2019-20
No. of Shares No. of Shares
Weighted average number of Equity Shares 1,93,59,25,630 1,80,74,75,563
Effect of Dilution:
Weighted average number of Equity Shares issued / to be issued 5,23,68,164 -
on the conversion of Debentures
Weighted average number of Equity shares adjusted for the
1,98,82,93,794 1,80,74,75,563
effect of dilution
Basic Earning per Share ( ) 8.25 3.75
Diluted Earning per Share ( ) 8.06 * 3.75
(Nominal value of share 10/-)

* Without considering the impact of conversion of Convertible Debenture (anti-dilutive effect).

39. Iron ore leases namely Jilling, Langalota Iron and Manganese Mines and Kasia Iron & Dolomite Mines has expired on 31st March, 2020 as per
Sec 8A(6) of MMDR Amendment Act, 2015. As per Rule 12(1)(gg) of The Minerals (Other than Atomic and Hydro Carbons Energy Minerals)
Concession Rules, 2016 six months’ time had been prescribed for removing and dispatching the stock of mineral excavated during the currency
of the lease and thereafter handing over the mines to State Government after considering the additional one month provide under the rules
12(1)(hh) of the said rules. Accordingly, dispatches of material and removal of items continued till October, 2020 and lease handed over to the
State Government .

40. The Company had participated in the competitive bidding process invited by Andhra Pradesh Mineral Development Corporation Limited (APMDC)
from experienced Mine Developers and Operators for planning, engineering, financing, construction, development, operation and maintenance on
19th March, 2018. The Company after a competitive bidding process emerged as the successful bidder and agreement to execute the project was
signed on 8th March, 2019.

The life of the project is 33 years. This being a greenfield project, the development period as per contract is 840 days. The project is located in
Korba district of Chhattisgarh.

The Company plans to develop the mines and operate with latest technology mining machines and equipment. Currently, project team is in
process of facilitating regulatory clearances such as Environmental Clearances, Forest Clearances, etc. which is required to be undertaken in the
development period. Expenses incurred 136.30 Lakhs during the year (31st March, 2020: 76.07 Lakhs) of development of the project are
treated as “Pre-operative expenses, pending allocation” and shown as Capital Work-in Progress.

41. The Company had participated in the auction process of Bunder Diamond Block (Mining Lease) in Chhatarpur District of Madhya Pradesh and
won the block through competitive bidding. Letter of Intent for Grant of Mining Lease has been issued by Government of Madhya Pradesh in
favour of the Company on 19th December, 2019.

Bunder Diamond Block is a Greenfield Mining Project covering an area of 364 Ha in Buxwaha Protected Forest and located near Village Sagoria
of Buxwaha Tehsil in Chhatarpur District of Madhya Pradesh. The project is about 80 Kms. from Chhatarpur, the district headquarter and 260
Kms. from Bhopal the state capital. The estimated resources in the block is around 53.70 Million Tonne of Kimberlite Ore containing about 34
Million Carats of rough Diamonds.

The Company plans to develop a fully mechanized opencast mine and state of the art processing plant for recovery of Diamonds and is
currently in the process of obtaining various regulatory clearances such as approval of Mine Plan, Environment & Forest clearances etc. required
for execution of mining lease. Expenses incurred 531.23 Lakhs during the year (31st March, 2020: 63.41 Lakhs) for development of the project
are treated as “Pre-operative expenses, pending allocation” and shown as Capital Work-in-Progress.

42. The Company through its wholly owned subsidiary, EMIL Mines and Mineral Resources Ltd.("EMMRL"), had participated in the auction of coal
blocks for sale of coal conducted by Ministry of Coal, Government of India. EMMRL had emerged as “Successful bidder” for following blocks :
1. Bandha Coal Mine, Madhya Pradesh
2. Radhikpur (East) Coal Mine, Odisha
EMMRL has signed Coal Block Development & Production Agreement (CBDPA) for Bandha Coal Mine and Coal Mine Development & Production
Agreement (CMDPA) for Radhikapur (East) Coal Mine on 11th January, 2021.
During development period, EMMRL will have to complete the balance exploration and prepare Geological Report for Bandha Coal Mine and will
have to obtain various statutory clearances i.e. Mine plan approval, Environment clearances, Forest clearance etc., land acquisition and
Rehabilitation & resettlement, and mine opening permission for both the blocks.
Expenses pertaining to Exploration and evaluation of Bandha Coal Mine incurred during the year is shown under the head “Exploration and
Evaluation Assets” amounting to 5,946.39 Lakhs and expenses pertaining to development of Radhikapur (East) Coal Block incurred during the
year is shown as "Intangible assets under development" amounting to 550.59 Lakhs.

43. During the year 2019-20, Mahanadi Coalfields Ltd. (MCL) issued a notice demanding 23,343.00 Lakhs towards provisional cost of backlog
overburden (OB) volume upto 31st March, 2019. A subsidiary of the Company, Bhubaneswari Coal Mines Ltd.(BCML), has filed a writ petition
bearing No. WP (C) 16909 of 2019 before the Odisha High Court challenging the said notice, pursuant to which MCL has withdrawn the demand
notice. However, MCL has maintained its stand that BCML is required to extract the total stipulated quantity of OB (including backlog OB) within
the contract period, failing which there will be a subtractive impact on the mining fee payable to the subsidiary company. Considering that MCL
had already levied and deducted penalty from bills for annual shortfall of OB as per the terms of the contract and based on the legal opinion
obtained by the subsidiary company in this regard, BCML is of the view that MCL’s stand on the backlog of OB removal is not in accordance with
the Contract.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728
44. Commitments and Contingencies

A. Commitments As at As at
31st March, 2021 31st March, 2020
in Lakhs in Lakhs
(i) Estimated amount of contracts remaining to be executed on 3,621.52 10,767.18
capital account and not provided for [net of advances as on 31st
March, 2021 : 7,833.70 Lakhs (31st March, 2020 : 8,757.98
Lakhs)]
(ii) Estimated amount of contracts remaining to be executed on 4,198.86 -
other commitments and not provided for (net of advances as on
31st March, 2021 : 1,399.62 Lakhs; 31st March, 2020 : Nil)

(iii) A subsidiary, IGH Holding Pvt. Ltd., of the Company has subscribed to the Rights issue of Aditya Birla Fashion & Retail Ltd. at ₹ 110/- per
share (Face value of ₹ 10/- and Premium of ₹ 100/-). Final call amounting ₹ 11,668.47 Lakhs (4,24,30,800 shares at ₹ 27.50 per share) is yet to
be made.
As at As at
31st March, 2021 31st March, 2020
in Lakhs in Lakhs
B (i). Contingent liabilities not provided for in respect of :
a. Unredeemed Bank Guarantees 34,762.10 31,017.80
b. Excise Duty/Sales Tax matters under dispute
(1). Order passed u/s 43 of the OVAT Act, dated 31st August, 2017, by the JCCT, Jajpur 284.07 284.07
Road, for the period 2012-2014 imposing tax and penalty of 94.69 Lakhs and 189.38
Lakhs respectively, on so called receipt of minerals from lease hold mines against payment
of royalty, treating the same as purchase/receipt from unregistered dealer, i.e., Government
of Odisha. Writ petition filed before High Court of Orissa which has stayed the demand.

(2). Order passed u/s 12 of the OVAT Act, dated 25th October, 2018, by the DCCT, Barbil, 27.15 27.15
for the period 01.04.2016 to 30.06.2017 imposing tax and penalty of 21.72 Lakhs and
5.43 Lakhs, on so called receipt of minerals from lease hold mines against payment of
royalty, treating the same as purchase/receipt from unregistered dealer, i.e., Government of
Odisha. Appeal filed before the Additional CCT (Appeal) is yet to be disposed off.

(3). Matters relating to Orissa Entry tax with sales tax authorities pending with the Odisha 101.73 101.73
Sales Tax Tribunal
c. Service Tax matters under dispute (Including penalty but excluding interest)
(1) Appeal filed before Appellate Tribunal u/s 86(1) of Finance Act, 1994 (Customs, Excise 86.49 86.49
and Service Tax Appellate Tribunal, Kolkata) appeal against rejection of appeal before
Commissioner (Appeals), CGST & Central Excise filled u/s 85 of Finance Act, 1994 against
notice of demand under section 73(2),75,77(2) &78 of the Finance Act 1994, against which
4.29 Lakhs (31st March, 2020: 4.29 Lakhs) has been paid.
(2). Order passed by Joint commissioner of Central tax GST & Central Excise Rourkela 244.16 244.16
dated 22nd February, 2018 for 121.68 Lakhs along with penalty of 0.80 Lakhs and
penalty of equivalent amount u/s 78(1) of Finance Act in respect of non-payment of Service
tax under RCM in respect of services availed from GTA; Non-payment of Service tax on
TIELS benefit given by Indian railways, which is passed on to the Notice by their customers.
Appeal filed before CESTAT is pending for disposal.
(3). Demand confirmed by Commissionerate of CT and GST, Odisha (Cuttack) towards 8,293.49 -
short-payment of GST on reverse charge basis on Royalty, DMF NMET paid to State
Government for the period 1st April, 2018 to 31st December, 2018 amounting to 6,117.20
Lakhs u/s 73(8) of OGST Act 2017 along with interest of 1,564.57 Lakhs and penalty of
611.72 Lakhs.
(4). Demand towards non-payment of Service Tax on “Scientific or Technical Consultancy 605.56 605.56
Services” received from foreign supplier. The matter is pending before the CESTAT Kolkata
on the ground that the activities undertaken by foreign entities on account of technical and
due diligence in relation to mining opportunities/proposed acquisition of mines situated
outside India will fall under the ambit of “Mining Services” and thereby the Place of
Provision of Service would be outside the taxable territory and hence not liable to Service
Tax.
(5). Service tax input credit disallowed U/S 14 of the Cenvat Credit Rules,2004 read with 228.31 228.31
Sec 11A(4) of the Central Excise Act,1944 for the period 1st April, 2011 to 28th January,
2014.
d. Claims against the Company by service providers not acknowledged as debt 139.21 274.41
e. Custom Duty on Import under EPCG Scheme against which Export obligation is to be 92.96 92.26
fulfilled
f. Corporate Guarantee/Undertaking given for Loans taken by others (net of entitlements) 79,000.00 60,000.00
g. Demand from Railways towards Land Licensing Fees (Refer Note 52) 3,151.53 2,557.77
h. Income Tax demands contested by the Company 14,000.62 14,000.62
Appeal filed before CIT (Appeals-3) against assessment u/s 154 and notice of demand u/s 6.22 6.22
156 of Income Tax Act, against which 1.25 Lakhs already has been paid
Appeal filed before CIT (Appeals) against assessment u/s 143(3) for AY 2017-18. 24.21 24.21
i. Demand from Department of Steel & Mines towards Shortages, Royalty etc. (Refer Note 50) 17,507.04 17,507.04

j. Guarantee obligations towards site restoration

Financial assurance given to Indian Bureau of Mines in the form of bank guarantee as per 228.81 1,330.23
Rule 25 towards area put to use for mining and allied activities.
Mahanadi Coalfields Limited (MCL) issued a show cause notice demanding 5,492.00 5,492.00 -
Lakhs towards excess payment by MCL towards power component during the period from
01.04.2012 to 30.06.2020. A subsidiary of the Company, Bhubaneswari Coal Mining Ltd.
has filed a writ petition bearing No. WP(C)/0020932/2020 dated 24th August, 2020 before
the Odisha High Court challenging the alleged excess payment of 5,492.00 Lakhs.

Asst. Commissioner, GST & Central Excise, Angul Division issued a demand cum show 5.67 -
cause notice demanding 5.67 Lakhs towards irregular availment of transitional CGST
Credit through TRAN-1. A subsidiary of the Company, Bhubaneswari Coal Mining Ltd. has
filed an appeal before the Addl. Commissioner (Appeals), GST, Central Excise & Customs,
Revenue Building, & other forums against the said notice, however the payment of 5.67
Lakhs has been made.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

k. The Transferor Companies (Refer note 49) had sold on 28th March, 2019 all the equity shares (i.e. 367,60,80,070 Equity Shares) held in Aditya
Birla Retail Ltd.(“ABRL”) in terms of Share Purchase Agreement dated 19th September, 2018 (SPA) executed between Kanishtha Finance and
Investment Pvt. Ltd.(Kanishtha), RKN Retail Pvt. Ltd.(RKN), Witzig Advisory Services Pvt. Ltd.(Purchaser) and More Retail Ltd. (formerly
known as Aditya Birla Retail Ltd.). In terms of Clause 9 of the SPA, the Transferor Companies had agreed to indemnify jointly & severally the
Purchaser for an amount not exceeding 4,000.00 Lakhs against any loss suffered by the Purchaser or More Retail Ltd. towards Operational
Warranties mentioned in the SPA.
During the previous year, the Transferor Companies were in receipt of a Claim Notice dated 15th May, 2020 from the Purchaser under Clause 9
of the SPA (herein after referred as “Notice”) claiming 2,108.05 Lakhs towards estimated differential minimum wages payable to employees of
More Retail Ltd. pursuant to Karnataka Government’s notification dated 30th December, 2017 which notification was upheld by the Hon’ble
Karnataka High Court vide its order dated 13th April, 2020.
In terms of the said clause of the SPA, the management was principally of the view that the above claim was maintainable, subject to certain
clarification and information sought from the Purchaser and finalisation of the settlement amount. Pending final settlement, on a prudent basis,
the management had estimated total claim liability of 1,581.04 Lakhs (75% of the Claim amount) which has been provided for in the books in
the previous year. However, final claim amount as per the Settlement agreement dated 21st January, 2021 is 2,123.20 Lakhs. Hence, the
difference amount of 542.16 Lakhs has been charged to Statement of Profit and Loss in the current year.
The Transferor Companies are now in receipt of a Claim Notice dated 24th March, 2021 from the Purchaser under Clause 9 of the SPA (herein
after referred as “Notice”) claiming 1,045.00 Lakhs towards Breach or misrepresentation of Operational Warranties by the Transferor
Companies. On receipt of the notice, the subsidiary of the Company has started deliberations and has sought certain clarification and
information sought from the Purchaser. These deliberations are at an initial stage and therefore the amount of 1,045.00 Lakhs is considered
as Contingent Liability as on 31st March, 2021.

l. Demands of tax under Orissa Rural Infrastructure and Socio-Economic Development Act, 2004 for the years 2004-05 and 2005-06 stand at
7,377.40 Lakhs. The petition filed by the Eastern Zone Mining Association on behalf of mining companies against the imposition of above tax
has been decided in favour of the mining companies by the Hon'ble Orissa High Court vide its order dated 5th December, 2005. However, the
department has filed appeal against the said order with Hon'ble Supreme Court of India, which is pending disposal for last several years, as a
nine judge’s constitutional bench is to be constituted to hear the matter.

(ii) The Government of Odisha has raised a demand of 21,355.92 Lakhs for Kasia mines for undertaking mining in absence of executed lease
deed during the period 2012-13. The demand has been challenged before the Revisional Authority and the same is pending for adjudication.

(iii) The Company had received demands of 2,75,539.57 Lakhs during the year 2013-14 towards stamp duty pursuant to the enactment of the
Indian Stamp (Odisha Amendment) Act, 2013 w.e.f. 10th May, 2013 in respect of Company’s Mining Leases. The Company has filed writ
petition before Hon’ble High Court of Odisha challenging the constitutional validity of the aforesaid demands and interim stay has been granted
by the Hon’ble High Court vide its order dated 9th July, 2013. In view of above and favourable legal opinion obtained by the Company, the
management believes that the Company does not have any existing obligation in this regard.
(iv) The Company has received a notice from the Joint Director of Mines, Joda vide Letter No.745 / Mines dated 8th February, 2021, wherein the
Company has been directed to deposit 38,413.09 Lakhs towards cost price as compensation on the excess production during the period
October, 2019 to March, 2020 in respect of Kasia mines, under Sec.21(5) of MMDR Act, 1957. The said demand has been raised based on the
cost price for the difference between the actual production and permissible production computed based on lowest of the proportionate
production for the period of operations as per the Mining Plan, Consent to Operate and Environmental clearance. Such computation of
permissible production by proportionate method based on period of operation in not prescribed in any of the Act / Rules. The Company has
preferred Revision application before Mines Tribunal, New Delhi, challenging the order of Joint Director of Mines. The matter is pending before
Mines Tribunal, New Delhi for listing. The Company believes such a demand is not tenable as per law.
(v) During the year a subsidiary of the Company, Rajmahal Coal Mining Ltd., received a demand of 5,559.93 Lakhs towards dispute of sales tax
on utilisation of HSD for the financial years 2017-18 to 2020-21 (Q1 & Q2) from the Commercial tax department of Jharkhand State. Also
108.74 Lakhs collected by the Commercial tax department of Jharkhand State on 31st March, 2021 by way of bank attachment against the
above Demand Orders. The subsidiary of the Company has filed an appeal to the Joint Commissioner (Appeal) against these orders and a
favorable appeal order dated 2nd June, 2021 obtained from the office of Joint Commissioner (Appeal).
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

C. Leases
(i) Group as a lessee
Short term lease payments during the year
Certain office premises, machineries, etc. are obtained on operating lease. The lease term is for 1-3 years and renewable for further period
either mutually or at the option of the Group. There are no restrictions imposed by lease agreements and are cancellable. There are no
subleases.
in Lakhs
Particulars Year ended 2020-21 Year ended 2019-20
Lease rentals recognized during the year 1,589.80 2,882.48

(ii) Group as a lessor - Finance Lease

The Group has leased out certain renewable energy assets to third party under finance lease arrangement. The Group recognizes a
receivable in the amount of the net investment in the lease.The lease payments made by the lessees are split into an interest component and
a principal component using the effective interest rate method. The lease receivable is reduced by the principal received. The interest
component of the payments is recognized as finance income in the Statement of Profit and Loss. The following table shows how the amount
of the net investment in a finance lease is determined:

Year ended 2020-21 Year ended 2019-20

in Lakhs in Lakhs
Minimum Lease Payments 14,539.44 15,536.52
Unguaranteed residual value - -
Gross Investment 14,539.44 15,536.52
Unearned Finance Income 10,207.55 11,142.31
Net Investment (Present Value of the Minimum Lease 4,331.89 4,394.21
Payments)

Operating rents recognised and included as income under the

head "Finance Lease Rentals" in the year 81.59 88.40

Following table presents the Gross Investment amounts and the present value of Minimum Lease Payments

As at 31st March, 2021 As at 31st March, 2020

in Lakhs in Lakhs in Lakhs in Lakhs
Present value of Present value
Maturity Gross Investment Minimum lease Gross Investment of Minimum
payment lease payment
(i) not later than one year; 990.05 69.30 997.08 62.32
(ii) later than one year and not later than five years; 3,888.50 380.68 3,917.33 333.65
(iii) later than five years. 9,660.89 3,881.91 10,622.11 3,998.24
14,539.44 4,331.89 15,536.52 4,394.21

45. Details relating to Micro, Small and Medium Enterprises :

As at As at
31st March, 2021 31st March, 2020
in Lakhs in Lakhs

(i). The principal amount and the interest due thereon (to be shown separately) remaining 123.11 66.87
unpaid to any supplier at the end of each accounting year.
(ii). The amount of interest paid by the buyer in terms of section 16 of the Micro, Small and - -
Medium Enterprises Development Act, 2006, along with amount of the payment made to
the supplier beyond the appointed day during each accounting year.
(iii). The amount of interest due and payable for the period of delay in making payment - -
(which have been paid but beyond the appointed day during the year) but without adding
the interest specified under the Micro, Small and Medium Enterprises Development Act,
2006.
(iv). The amount of interest accrued and remaining unpaid at the end of accounting year; and - -

(v). The amount of further interest remaining due and payable even in the succeeding years, - -
until such date when the interest dues as above are actually paid to the small
enterprises, for the purpose of disallowance as a deductible expenditure under Section
23 of Micro, Small and Medium Enterprises Development Act, 2006.

46. During the current year, donations include contribution of 2,000.00 Lakhs (Previous year: 6,750.00 Lakhs) which was made through
Electoral Bond Scheme, 2018 notified by Government of India.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

47. Repairs & Maintenance of Plant & Machinery includes :

As at As at
31st March, 2021 31st March, 2020
in Lakhs in Lakhs
Operation & Maintenance charges for Wind Power Mills 308.98 950.74
Operation & Maintenance charges for Solar Power Plant 491.25 368.07
Consumption of Spare Parts 78.96 501.86

48. Expenditure incurred on Corporate Social Responsibility activities, included in Miscellaneous Expenses in the Statement of Profit
and Loss is 437.41 Lakhs (31st March, 2020: 426.14 Lakhs).
The amount required to be spent under Section 135 of the Companies Act, 2013 for the year ended 31st March, 2020 is 431.18
Lakhs (31st March, 2020 : 420.07 Lakhs) i.e.; 2% of average net profits for last three financial years, calculated as per Section
198 of the Companies Act, 2013.

49. Scheme of Amalgamation :

(i) The respective Board of Directors of the subsidiary companies, Kanishtha Finance and Investment Pvt. Ltd. ("Transferor Company
1"), RKN Retail Pvt. Ltd. (“Transferor Company 2”) and IGH Holdings Pvt. Ltd. ("Transferee Company") had approved the Scheme
of Amalgamation ("Scheme") of Transferor Company 1 and Tranferor Company 2 with Transferee Company and their respective
shareholders pursuant to Section 230 to 232 and other applicable provisions of The Companies Act, 2013. The Appointed Date of
the Scheme is 1st April, 2019. As required by law, the Company had filed an application with the Hon’ble National Company Law
Tribunal, Mumbai Bench (NCLT) in connection with the aforesaid amalgamation which has been approved by NCLT vide its Order
dated 15th February, 2021.
(ii) Pursuant to the Scheme sanctioned by the NCLT vide its order dated 15th February, 2021, all the assets, rights, obligations,
liabilities, etc and entire business of each of the aforesaid Transferor Companies were transferred to and vested at book value in
the Transferee Company on 14th June, 2021 (Effective Date i.e. the date of filing of the certified copy of the order dated 15th
February, 2021 in Form No. INC - 28 with the Registrar of Companies by IGH Holdings Pvt. Ltd. and the Transferor Companies) as
a going concern with effect from 1st April, 2019 (Appointed Date) and accordingly the sanctioned Scheme has been given effect to
in these financial statements for FY 2019-20.
(iii) All the equity shares of Transferor Companies were held by the Transferee Company. Thus, Transferor Companies were direct
wholly owned subsidiaries of the Transferee Company and therefore no issue of shares has been done by the Transferee Company
as consideration for the amalgamation of the Transferor Companies with the Transferee Company. On effectiveness of this
Scheme, all equity shares of the Transferor Companies held by the Transferee Company inter se have been cancelled without any
further application, act or deed. There has been no change in the issued Equity Share Capital of the Transferee Company.

(iv) There has been a change in the Authorised Equity Share Capital of the Transferee Company. The Authorised Equity Share Capital
of the Transferor Companies amounting to 6,550.00 Lakhs has been added to the existing Authorised Equity Share Capital of
5,250.00 Lakhs of the Transferee Company. Thus, the final total Authorised Equity Share Capital of the Transferee Company w.e.f.
1st April, 2019 is 11,800.00 Lakhs.
(v) There has been a change in the Authorised Preference Share Capital of the Transferee Company. The Authorised Preference
Share Capital of the Transferor Companies amounting to 611.00 Lakhs has been added to the existing Authorised Preference
Share Capital of 30,250.00 Lakhs of the Transferee Company. Thus, the final total Authorised Preference Share Capital of the
Transferee Company w.e.f. 01.04.2019 is 30,861.00 Lakhs.
(vi) The difference between the amount recorded as share capital issued plus any additional consideration in the form of cash or other
assets and the amount of share capital of the Transferor Companies amounting to 3,393.32 Lakhs has been transferred to capital
reserve and is presented separately from other capital reserves (captioned as "Amalgamation reserve") with disclosure of its nature
and purpose in the note.
(vii) The Transferee Company has accounted for the amalgamation of the Transferor Companies in its books of account under pooling
of interest method in accordance with Appendix C to Indian Accounting Standard - 103 prescribed under Section 133 of the Act read
with the Companies (Indian Accounting Standards) Rules, 2015, as amended. Further, in accordance with Ind AS 103 ‘Business
Combinations’, the subsidiary of the Company has restated the financial statements for the previous year presented in these
financial statements even though the title, obligations and compliances related to these balances till the effective date remain with
Transferor Companies.

50. The Company had received demands of 17,507.04 Lakhs during the year 2011-12 from Department of Steels & Mines,
Government of Odisha for the years 2000-01 to 2010-11 towards shortages, royalty, etc. which has been stayed by the Mines
Tribunal of the Central Government by its interim order dated 5th September, 2012 till the disposal of revision petition filed by the
Company. Pending disposal of the said revision petition, the Company's obligation, if any, is not ascertainable at this stage. On 5th
September, 2012, injunction order for not to take any coercive action till disposal of the matter was issued. The matter is pending
adjudication.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

51. Trade Payable includes 10,014.47 Lakhs for liability provided during the year 2010-11 towards stacking charges demand from
South Eastern Railways, which has been stayed by the Hon'ble High Court of Calcutta vide its order dated 20th December, 2011.
Pending final decision of the Hon'ble High Court of Calcutta, the said liability is continued in the books by the Company.

52. The Company had received demands of 3,677.60 Lakhs (including 542.13 Lakhs for the period 1st April, 2019 to 31st March,
2021during the year) from South Eastern Railway towards land licensing fees for railway siding at its Mining Unit. The Company had
approached the Railway Authorities to revise these demands based on the prevailing land rates at respective localities, which are
much lower than the land rates considered in the above demands. Further, the Company has filed a writ petition before the Hon’ble
High Court of Calcutta against the circular published by the Railway Authorities in 2008 imposing such higher rates. Hon’ble High
Court has directed to make payment at old rates as per 2005 circular vide its Order dated 18th December, 2014 till the disposal of
the above writ petition. During the year the Company has submitted bank guarantee for 1,592.75 Lakhs to South Eastern Railway
towards such land licensing fees. In the opinion of the management, provision of 526.07 Lakhs made in the books of account is
sufficient to meet the balance liabilities.
53. The Writ W.P(C) 1599 / 2019 pertaining to stamp duty for Koira mining lease filed challenging the notice issued by Sub-Registrar,
Bonai dated 13th December, 2018 wherein 2,559.57 Lakhs was demanded purportedly towards deficit stamp duty and registration
fee in respect of Supplementary Lease deed dated 15th July, 2016. The Company was granted stay in the matter on 24th January,
2019 and the writ is disposed with a direction to Sub-registrar, Bonai to hear the matter on merits and disposed of the same, hearing
is awaited.

54. The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Group towards
Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020
on 13th November, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The
Group will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial
statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

55. A subsidiary of the Company, IGH Holdings Pvt. Ltd. ("company") is registered with the Reserve Bank of India (RBI) as a Non
Deposit taking Non Banking Financial Company. The company has negative Net Owned Funds (NOF) as at 31st March, 2021 and
the company’s investments / loans to group companies is in excess of the limits prescribed by the RBI. However, at the same time,
the company is a Systemically Important Core Investment Company (CIC) as per the provisions of Core Investment Companies
(Reserve Bank) Directions, 2016 issued by the Reserve Bank of India vide Notification dated 25th August, 2016. The company is in
compliance with all the parameters applicable to a CIC. In this respect, the company had made an application on 23.10.2019 to the
Reserve Bank of India (RBI) for registration as a Core Investment Company (CIC). In this respect, RBI has sought certain
information and the company is in the process of providing the same.

56. During the previous year Kanishtha Finance and Investment Pvt. Ltd. and RKN Retail Pvt. Ltd. became the 100% subsidiary of IGH
Holdings Pvt. Ltd.(wholly owned subsidiary of the Company) with effect from 30th November, 2019 accordingly the consolidated
financial statements for the previous year ended 31st March, 2020 were prepared after giving the impact of acquired subsidiaries
effective 30th November, 2019. The IGH Holdings Pvt. Ltd. filed a scheme of arrangement with NCLT for merger of Kanishtha
Finance and Investment Pvt. Ltd. and RKN Retail Pvt. Ltd. with IGH Holdings Pvt. Ltd. with appointed date 1st April, 2019. The
scheme has been approved by the NCLT and certified copy of the order has been filed with ROC Mumbai. To give impact of the
approved scheme the IGH Holdings Pvt. Ltd. has restated its financial statements for the period 1st April, 2019 to 31st March, 2020
considering business combination under Common Control as per Ind AS 103 "Business Combination”. Consequently the
consolidated financial statements for the previous year ended 31st March, 2020 have been restated. The impact of the restatement
on assets & liabilities are given below.
in Lakhs
Amount reported
as on 31st March, Restated amount
Particulars 2020 as per as on 31st March,
audited financial 2020
statements
Non-Current Assets 9,74,435.69 9,74,435.04
Current Assets 1,91,114.80 1,91,114.53
Total Assets 11,65,550.49 11,65,549.57
Equity (Including Other Equity & Non-Controlling
6,96,081.09 6,96,080.25
Interest)
Non-Current Liabilities 1,41,312.62 1,41,312.62
Current Liabilities 3,28,156.78 3,28,156.70
Total Equity & Liabilities 11,65,550.49 11,65,549.57
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

57. Significant accounting judgements, estimates and assumptions

The preparation of the Group'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.

(i) Judgements
The management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

Deferred tax assets on unused tax losses

Deferred tax assets are recognised on unused tax losses to the extent that it is probable that taxable profit will be available against which losses can be utilised. Significant
management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits
together with future tax planning strategies.

(ii) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next financial year, are described below. The Group based its assumptions and estimates on parameters available when
the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances
arising that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

a) Defined benefit plans

The cost of the employment benefits such as gratuity and leave are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may
differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in
the valuation and its long-term nature, an employee benefit liability is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates
of government bonds.
The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary
increases are based on expected future inflation rates.
Further details about gratuity obligations are given in Note 58.

b) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is
measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a
degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions
about these factors could affect the reported fair value of financial instruments. See Note 61 and 69 for further disclosures.
c) Impairment of non-financial assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is
required, the Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value
in use. It 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. Where
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.
An impairment loss is recognized as an expense in the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in
earlier accounting period is reversed if there has been an improvement in recoverable amount.

d) Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Group uses judgement in making these assumptions
and selecting the inputs to the impairment calculation, based on Group’s past history, existing market conditions as well as forward looking estimates at the end of each reporting
period.

e) Significant judgments when applying Ind AS 115

Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects the consideration which the Group expects to receive in
exchange for those products or services. Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts and price concessions, if
any, as specified in the contract with the customer. The Group exercises judgment in determining whether the performance obligation is satisfied at a point in time or over a period
of time. The Group considers indicators such as how customer consumes benefits as services are rendered or who controls the asset as it is being created or existence of
enforceable right to payment for performance to date and alternate use of such product or service, transfer of significant risks and rewards to the customer, acceptance of
delivery by the customer, etc.

f) Provisions and Contingencies

The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Indian Accounting Standards Ind AS 37, ‘Provisions, Contingent
Liabilities and Contingent Assets’. The evaluation of the likelihood of the contingent events is applied best judgement by management regarding the probability of exposure to
potential loss.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

58. Gratuity and other post-employment benefit plans

The Group has a defined benefit gratuity plan in India. Every employee who has completed 5 years or more of service is entitled to Gratuity on terms not less favourable than provisions of the The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company. The following tables summarize the components of net benefit and expenses recognized in the Statement of Profit & Loss
and the funded status and amounts recognized in the Balance Sheet for the Gratuity Plan.
in Lakhs
As at 31st March, 2021 As at 31st March, 2020
Defined benefit assets / (obligations) (102.00) (647.84)

(102.00) (647.84)

Changes in the defined benefit obligation and fair value of plan assets as at 31st March, 2021:

in Lakhs
Gratuity Cost charged to the Statement of Profit or Loss Remeasurement gains/(losses) in other Comprehensive Income
Sub-total included in
Return on plan assets
Profit or Loss Actuarial changes Contributions by
(excluding amounts Experience Sub-total As at 31st March, 2021
As at 31st March, 2020 On acquisition of a subsidiary Service cost Net interest expense Benefits paid arising from changes in employer
included in net interest adjustments included in OCI
(Note 33) financial assumptions
expense)

Defined benefit obligation (3,311.63) - (238.10) (206.06) (444.16) (719.95) - 91.13 26.60 117.73 - (2,918.11)
Fair value of Plan Assets 2,663.79 - - 185.01 185.01 719.95 36.67 - - 36.67 650.59 2,816.11
Benefit Liability (647.84) - (259.15) 154.40 650.59 (102.00)

Changes in the defined benefit obligation and fair value of plan assets as at 31 March 2020:

Gratuity Cost charged to the Statement of Profit or Loss Remeasurement gains/(losses) in other Comprehensive Income

Sub-total included in Return on plan assets

Actuarial changes Contributions by
Profit or Loss (excluding amounts Experience Sub-total As at 31st March, 2020
As at 31st March, 2019 On acquisition of a subsidiary Service cost Net interest expense Benefits paid arising from changes in employer
included in net interest adjustments included in OCI
financial assumptions
(Note 33) expense)

Defined benefit obligation (2,543.09) - (252.24) (162.41) (414.65) (174.12) - (178.03) (349.98) (528.01) - (3,311.63)
Fair value of Plan Assets 2,553.58 - - 168.83 168.83 174.12 110.21 - - 110.21 5.29 2,663.79
Benefit Liability 10.49 - (245.82) (417.80) 5.29 (647.84)
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

The major categories of plan assets of the fair value of the total plan assets are as follows:
in Lakhs

As at 31st March, 2021 As at 31st March, 2020

Government of India Assets 1,066.02 834.64
Corporate Bonds 1,419.79 1,395.48
Life Insurance Corporation of India 63.08 60.59
Others 267.22 373.08

2,816.11 2,663.79

The principal assumptions used in determining gratuity liability are shown below:

As at 31st March, 2021 As at 31st March, 2020

Discount rate 6.94% 6.58%
Future salary increases 6.00% 6.00%
Expected average remaining working lives (in years) 14 11
Withdrawal rate (based on grade and age of employees) Varying between 1 per thousand Varying between 1 per thousand
and 10 per thousand employees and 10 per thousand employees
depending upon duration and depending upon duration and age
age of the employees of the employees

A quantitative sensitivity analysis for significant assumption is as shown below:

As at 31st March, 2021 As at 31st March, 2020

Assumptions Discount rate Discount rate
Sensitivity level 0.5 % increase 0.5 % decrease 0.5 % increase 0.5 % decrease
Impact on Gratuity 2,787.93 3,054.98 3,161.92 3,471.20

Assumptions Future Salary Movement Future Salary Movement

Sensitivity level 0.5 % increase 0.5 % decrease 0.5 % increase 0.5 % decrease
Impact on Gratuity 3,053.40 2,791.91 3,467.15 3,164.07

Assumptions Withdrawal Withdrawal

Sensitivity level 0.5 % increase 0.5 % decrease 0.5 % increase 0.5 % decrease
Impact on Gratuity 2,833.61 2,834.20 3,252.24 3,250.94

Assumptions Mortality Mortality

Sensitivity level 10% increase 10% decrease 10% increase 10% decrease
Impact on Gratuity 2,833.67 2,834.15 3,254.97 3,248.21

The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions
occurring at the end of the reporting period.

The following payments are expected contributions to the defined benefit plan in future years:

As at 31st March, 2021 As at 31st March, 2020

Within the next 12 months (next annual reporting period) 339.19 331.52
Between 2 and 5 years 914.26 865.33
Between 6 and 10 years 1,293.62 1,839.95
Beyond 10 years 3,954.83 4,105.97
Total undiscounted payments related to past service 6,501.90 7,142.77
Less: Discount for Interest 3,583.79 3,831.14
Total expected payments 2,918.11 3,311.63
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

59. Related Parties Disclosures

a) As per Ind AS 24, the disclosure of transactions with the related parties are given below:

List of related parties where control exists and also related parties with whom transactions have taken place and relationship:

Names of the related parties Relationship

Living Media India Ltd.
Surya Abha Investments Pte. Ltd. Associates
(In respect of which the Company is an investee)

Shri Ashwin Kumar Kothari

Shri Sunil Kumar Daga
Shri Manish Kumar Newar
Shri Nagendra Chandra Shah Directors
Shri Giriraj Maheswari
Ms. Kalpana Vasantrai Unadkat
Ms. Anita Ramachandran
Shri Tuhin Kumar Mukherjee - Managing Director Key Management
Shri Rajendra Prasad Pansari - Senior President Personnel

b) Related Party Transactions in Lakhs

Particulars Key Management Personnel Associate Companies Total

Transactions Transactions Transactions Transactions Transactions Transactions during

during 2020-21 during 2019-20 during 2020-21 during 2019-20 during 2020-21 2019-20
Interest Expenses
Surya Abha Investments Pte. Ltd. - - 868.32 - 868.32 -
Directors Sitting Fees
Shri Ashwin Kumar Kothari 2.75 0.65 - - 2.75 0.65
Shri Sunil Kumar Daga 4.40 1.90 - - 4.40 1.90
Shri Manish Kumar Newar 0.95 - - - 0.95 -
Shri Nagendra Chandra Shah 2.85 1.23 - - 2.85 1.23
Shri Giriraj Maheswari 3.60 1.33 - - 3.60 1.33
Ms. Kalpana Vasantrai Unadkat 0.80 0.28 - - 0.80 0.28
Ms. Anita Ramachandran 0.80 - - - 0.80 -
Salary & Other Allowances (Short Term) * 858.51 909.21 - - 858.51 909.21

* Excludes provision for gratuity and leave encashment recognised on the basis of actuarial valuation for Company as a whole and consequently separate figures are
not available.

c) Related Party Balances in Lakhs

Particulars Associate Companies Total

As on 31st As on 31st As on 31st As on 31st
March, 2021 March, 2020 March, 2021 March, 2020
Interest Accrued but not due on Borrowings
Surya Abha Investments Pte. Ltd. 552.10 - 552.10 -
Investments made
Living Media India Ltd.
Equity Shares # 55,129.81 55,129.81 55,129.81 55,129.81

# Excluding proportionate share of accumulated Profit / (Loss).

 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

60. Segment Information

For management purposes, the Group is organised into business units based on its products and has following reportable business segments:
1.The Iron-ore segment extracts superior quality Iron-ore with high Fe (Iron) content from its mines.
2. Noble Ferro Alloys segment produces superior quality Noble Ferro-Alloys consisting of Ferro-Molybdenum, Ferro-Vanadium, Ferro-Titanium, Ferro Alloys Powders and Un-fused Vanadium Pentoxide.
3. Wind Power and Solar Power segments generate power through its Wind Power & Solar Power plants respectively.
4. Financial Services is engaged in the activity of granting of loan/making of investments.
5. Contract Mining business is engaged as Mine Developer and Operator (MDO).
6. Pro Minerals Pvt. Ltd. (PMPL) is engaged in iron-ore beneficiation and pelletisation etc.
7. Aditya Birla Aerospace and Defence Pvt. Ltd. is incorporated for the purpose of providing services pertaining to research and development, design, fabricating, assembling & manufacturing and dealing in all types of aircrafts, helicopters, commercial
aeroplanes, spacecraft, etc.
8. EMIL Mines And Mineral Resources Ltd is incorporated as a wholly Owned Subsidiary for participating in various project opportunities for mineral concessions including commercial mining with support of Holding Company’s Net worth, Technical
Knowhow and Experience.
in Lakhs

Year ended 31st March, 2021

Iron Ore
Iron Ore Noble Ferro-Alloys Wind Power Mill Financial Services Contract Mining Solar Power Beneficiation & Total
Pelletisation

REVENUE (GROSS)

REVENUE FROM OPERATIONS 3,91,604.46 12,993.44 1,609.74 15,859.12 86,092.43 10,581.99 6,359.98 5,25,101.16
Inter Segment Revenue (11,631.30) - - - - - - (11,631.30)
REVENUE FROM EXTERNAL CUSTOMERS 3,79,973.16 12,993.44 1,609.74 15,859.12 86,092.43 10,581.99 6,359.98 5,13,469.86

Income/Expenses
Segment Results / Segment Profit /(Loss) 2,09,320.99 1,360.92 810.70 37,285.47 10,930.07 8,094.32 (928.19) 2,66,874.28
Unallocated corporate expenses net of unallocated income 7,181.12
Operating Profit 2,59,693.16
Finance Costs 30,949.34
Interest & Dividend Income 4,072.27
Profit / (Loss) from ordinary activities before Tax and Share of Profit 2,32,816.09
/ (Loss) in Equity Accounted Investments
Share of Profit / (Loss) in Equity Accounted Investments 2,804.16
Income Taxes
- Current Tax 79,477.34
- MAT (482.43)
- Deferred Tax (5,882.18)
- For earlier years (434.60)

Profit / (Loss) from ordinary activities 1,62,942.12

OTHER INFORMATION
Segment Assets 46,455.70 4,127.03 7,129.01 23,62,364.41 55,799.14 48,008.65 45,871.26 25,69,755.20
Unallocated Corporate Assets 1,97,868.50
TOTAL ASSETS 27,67,623.70
Segment Liabilities & Provisions 41,478.10 1,546.33 1,768.68 1,141.24 18,861.56 350.86 4,766.81 69,913.58
Unallocated Corporate Liabilities 3,76,563.03
TOTAL LIABILITIES 4,46,476.61

Other Disclosures
Capital Expenditure (Including Work-in-progress) 155.00 310.19 167.44 - 10,693.70 135.29 4,430.81 15,892.43
Unallocated Capital Expenditure 7,317.85
Depreciation/Amortization for the year 4,010.67 71.90 320.00 - 4,552.66 1,704.29 2,612.07 13,271.59
Unallocated Depreciation 99.15
Investments in Associates and a Joint Venture 59,066.47

GEOGRAPHICAL SEGMENTS

REVENUE FROM OPERATIONS (GROSS)

India 4,42,721.13
Overseas 82,380.03

CARRYING AMOUNT OF SEGMENT ASSETS

India 25,60,100.74
Overseas (Represents Debtors pertaining to Overseas Revenue) 9,654.46

Other Informations :
a) Total amount of revenues from customer, exceeding 10% of total revenues of the Group is 44,827.98 Lakhs (Previous Year: 52,288.37 Lakhs) represented by one customer and
related to Iron Ore segment.
b) Details of Country wise overseas sales : 2020-21 2019-20

Singapore 58,678.90 56,826.71

Hong Kong 21,930.75 17,201.28
Dubai - 2,532.67
Switzerland - 3,003.68
Netherlands 560.12 1,194.72
United Arab Emirates - Sharjah - 318.98
United Arab Emirates - Ajman 1,089.20 964.17
Belgium - 1,260.40
Oman 100.72 15.53
China 16.77 -
Thailand 3.57 -
82,380.03 83,318.14
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728
in Lakhs

Year ended 31st March, 2020

Iron Ore
Iron Ore Noble Ferro-Alloys Wind Power Mill Financial Services Contract Mining Solar Power Beneficiation & Total
Pelletisation
REVENUE (GROSS)

REVENUE FROM OPERATIONS 3,99,320.29 13,877.82 2,524.63 10,920.64 84,361.58 10,535.52 10.01 5,21,550.49
Inter Segment Revenue (1,279.21) - - - - - - (1,279.21)
REVENUE FROM EXTERNAL CUSTOMERS 3,98,041.08 13,877.82 2,524.63 10,920.64 84,361.58 10,535.52 10.01 5,20,271.28

Income/Expenses
Segment Results/ Segment Profit / (Loss) 1,53,917.28 (428.25) 1,174.61 1,591.64 19,048.27 8,202.80 (2,233.55) 1,81,272.80
Unallocated corporate expenses net of unallocated income 12,959.64
Operating Profit 1,68,313.16
Finance Costs 51,825.22
Interest & Dividend Income 3,401.07
Profit / (Loss) from ordinary activities before Tax and Share of Profit 1,19,889.01
/ (Loss) in Equity Accounted Investments
Share of Profit / (Loss) in Equity Accounted Investments 3,273.11
Income Taxes
- Current Tax 28,652.37
- MAT (19,500.08)
- Deferred Tax 42,174.93
- For earlier years (0.42)

Profit / (Loss) from ordinary activities 71,835.32

OTHER INFORMATION
Segment Assets 90,459.04 3,916.10 6,472.96 8,12,811.82 44,000.67 51,480.52 38,834.25 10,47,975.36
Unallocated Corporate Assets 1,17,575.81
TOTAL ASSETS 11,65,551.17
Segment Liabilities & Provisions 48,910.59 1,559.34 1,452.97 2,224.64 13,960.31 223.87 4,170.78 72,502.50
Unallocated Corporate Liabilities 3,96,966.82
TOTAL LIABILITIES 4,69,469.32

Other Disclosures
Capital Expenditure (Including Work-in-progress) 2,009.27 294.35 167.44 - 1,974.78 98.03 5,347.12 9,890.99
Unallocated Capital Expenditure 339.73
Depreciation/Amortization for the year 22,003.06 56.20 307.26 - 5,011.77 1,702.26 1,620.45 30,701.00
Unallocated Depreciation 89.91
Investments in Associates and a Joint Venture 56,232.44

GEOGRAPHICAL SEGMENTS

REVENUE FROM OPERATIONS (GROSS)

India 4,38,232.35
Overseas 83,318.14

CARRYING AMOUNT OF SEGMENT ASSETS

India 10,28,692.54
Overseas (Represents Debtors pertaining to Overseas Revenue) 19,282.82
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

61. Fair values

Set out below is a comparison, by class, of the carrying amounts and fair value of the Group’s financial instruments, other than those with carrying amounts that are reasonable
approximations of fair values:
in Lakhs
31st March, 2021
FVTPL FVTOCI Amortized cost Total Carrying value
Financial Assets
Investments * 40,497.48 22,01,828.13 1.30 22,42,326.91 22,42,326.91
Cross currency interest rate swap 1,478.87 - - 1,478.87 1,478.87
Claims & Refunds Refundable - - 95.50 95.50 95.50
Total 41,976.35 22,01,828.13 96.80 22,43,901.28 22,43,901.28
Financial Liabilities
Borrowings 1,73,469.10 1,73,469.10 1,73,469.10
Forward contracts 108.12 - - 108.12 108.12
Total 108.12 - 1,73,469.10 1,73,577.22 1,73,577.22

31st March, 2020

FVTPL FVTOCI Amortized cost Total Carrying value
Financial Assets
Investments * 26,961.71 7,27,468.26 1.30 7,54,431.27 7,54,431.27
Cross currency interest rate swap 2,414.46 - - 2,414.46 2,414.46
Claims & Refunds Refundable - - 178.60 178.60 178.60
Forward contracts 13.76 - - 13.76 13.76
Total 29,389.93 7,27,468.26 179.90 7,57,038.09 7,57,038.09
Financial Liabilities
Borrowings - - 1,63,260.92 1,63,260.92 1,63,260.92
Total - - 1,63,260.92 1,63,260.92 1,63,260.92

* Excludes investments measured at cost / deemed cost [Refer note 5(i)]

 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

The management assessed that cash and cash equivalents, security deposits, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due
to the short-term maturities of these instruments.
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation
sale. The following methods and assumptions were used to estimate the fair values:
1) The fair values of the quoted equity shares are based on price quotations at the reporting date. The fair value of unquoted instruments, loans from banks and other financial liabilities, as well as other non-
current financial liabilities is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.
2) The fair values of the unquoted equity shares, preference shares and bonds have been estimated using a Discounted Cash Flow (DCF) model or Net Asset Value (NAV), as considered appropriate. The
valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility. The probabilities of the various estimates within the
range can be reasonably assessed and are used in management’s estimate of fair value for these unquoted equity investments. In case of instruments having option to convert with the Group, the
management has assigned probable likelihood of conversion depending on equity stake in the target entity, domain of operation and liquidity. Wherever, the probability is low, valuation has been done based
on redemption assumptions. In case of instruments where option to convert is with issuer, redemption has been assumed.
3) The Group enters into derivative financial instruments with various counterparties, principally financial institutions with investment grade credit ratings. Cross currency interest rate swaps and foreign
exchange forward contracts are valued using valuation received from banks as on the period end.
4) The fair values of the Group’s interest-bearing and non-interest bearing borrowings and loans are determined by using DCF method using discount rate that reflects the issuer’s borrowing rate as at the
end of the reporting period.
The discount for lack of marketability represents the amounts that the Group has determined that market participants would take into account when pricing the investments.

The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy together with a quantitative sensitivity analysis as at 31st March, 2021 and 31st
March, 2020 are as shown below:
Description of significant unobservable inputs to valuation:

Particulars Valuation Technique Significant Range Sensitivity of the input

unobservable inputs to fair value
Investments in unquoted Debt Instruments (Preference Shares) DCF method Discount rate 31st March, 2021: 9.84% 1% Increase in the discount rate would decrease the fair value by
31st March, 2020: 11.36% 45.62 Lakhs (31st March, 2020 - 1,109.90 Lakhs).
1% Decrease in the discount rate would increase the fair value by
52.40 Lakhs (31st March, 2020 - 1,214.10 Lakhs)
Investments in Equity Instruments (Preference Shares) DCF method Discount rate 31st March, 2021: 9.84% 1% Increase in the discount rate would decrease the fair value by
31st March, 2020: 11.36% 4,161.14 Lakhs (31st March, 2020 - Nil).
1% Decrease in the discount rate would increase the fair value by
4,436.45 Lakhs (31st March, 2020 - Nil)
Investments in unquoted Equity Instruments Combination of DCF Discount rate as per 31st March, 2021: 14.17% & 1% Increase in the discount rate would decrease the fair value by
method & other Capital Asset Pricing 20.50% 119.41 Lakhs (31st March, 2020- 69.31 Lakhs).
methods Model 31st March, 2020: 14.44% & 1% Decrease in the discount rate would increase the fair value by
20.10% 131.74 Lakhs (31st March, 2020- 82.03 Lakhs)
Financial Guarantee obligations DCF method Commission rate 31st March, 2021: 0.15% 0.10% increase (decrease) would result in increase (decrease) in fair
31st March, 2020: 1% value by 152.78 Lakhs [31st March, 2020: 0.25% increase
(decrease) would result in increase (decrease) in fair value by
427.22 Lakhs]
Discount rate 31st March, 2021: 10.33% 1% Increase in the discount rate would decrease the fair value by
31st March, 2020: 11.73 10.36 Lakhs (31st March, 2020 : 65.54 Lakhs).
1% Decrease in the discount rate would increase the fair value by
11.06 Lakhs (31st March, 2020 : 69.78 Lakhs)
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

62. Fair Value Hierarchy

The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities. The financial instruments are categorized into three levels based on the inputs used to arrive at fair
value measurements as described below:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than the quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
in Lakhs
Fair value measurement hierarchy for assets as at 31st March, 2021 :
Fair value measurement using
Date of valuation Quoted prices in active Significant Significant
markets observable inputs unobservable inputs
Total (Level 1) (Level 2) (Level 3)
Assets measured at fair value:

Investments at fair value through PL [Note 61, 5(ii) &10]

Investments in quoted equity shares 31st March, 2021 289.57 289.57
Investments in unquoted preference shares 31st March, 2021 173.89 173.89
Investments in unquoted preference shares 31st March, 2021 388.21 388.21
Investments in Mutual Funds 31st March, 2021 39,645.81 33,388.40 6,257.41

Investments at fair value through OCI Reserve [Note 61, 5(ii)]

Investments in quoted equity shares 31st March, 2021 21,08,519.07 21,08,519.07
Investments in unquoted equity shares 31st March, 2021 3,741.71 3,741.71
Investments in unquoted equity shares 31st March, 2021 39,733.79 39,733.79
Investments in unquoted preference shares 31st March, 2021 49,833.56 49,833.56

Investments measured at Amortised Cost [Note 61, 5(ii)]

Others 31st March, 2021 1.30 1.30

Cross currency interest rate swap 31st March, 2021 1,478.87 1,478.87
Claims & Refunds Refundable 31st March, 2021 95.50 95.50

There have been no transfers between Level 1 and Level 2 during the period.

Fair value measurement hierarchy for liabilities as at 31st March, 2021:

Fair value measurement using
Date of valuation Quoted prices in active Significant Significant
markets observable inputs unobservable inputs
Total (Level 1) (Level 2) (Level 3)
Liabilities measured at fair value:
Liabilities for which fair values are disclosed (Note 61):
Borrowings 31st March, 2021 1,73,469.10 1,73,469.10
Forward contracts 31st March, 2021 108.12 108.12

There have been no transfers between Level 1 and Level 2 during the period.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

Fair value measurement hierarchy for assets as at 31st March, 2020 : in Lakhs
Fair value measurement using
Date of valuation Quoted prices in active Significant Significant
markets observable inputs unobservable inputs
Total (Level 1) (Level 2) (Level 3)
Assets measured at fair value:

Investments at fair value through PL [Note 61, 5(ii) &10]

Investments in quoted equity shares 31st March, 2020 198.81 198.81
Investments in unquoted preference shares 31st March, 2020 142.34 142.34
Investments in unquoted preference shares 31st March, 2020 14,436.84 14,436.84
Investments in Mutual Funds 31st March, 2020 12,183.72 4,372.84 7,810.88

Investments at fair value through OCI Reserve [Note 61, 5(ii)]

Investments in quoted equity shares 31st March, 2020 6,90,382.35 6,90,382.35
Investments in unquoted equity shares 31st March, 2020 3,616.16 3,616.16
Investments in unquoted equity shares 31st March, 2020 33,469.75 33,469.75

Investments measured at Amortised Cost [Note 61, 5(ii)]

Others 31st March, 2020 1.30 1.30

Cross currency interest rate swap 31st March, 2020 2,414.46 2,414.46
Claims & Refunds Refundable 31st March, 2020 178.60 178.60
Forward contracts 31st March, 2020 13.76 13.76

There have been no transfers between Level 1 and Level 2 during the period.

Fair value measurement hierarchy for liabilities as at 31st March, 2020 :

Fair value measurement using
Date of valuation Quoted prices in active Significant Significant
markets observable inputs unobservable inputs
Total (Level 1) (Level 2) (Level 3)
Liabilities measured at fair value:
Liabilities for which fair values are disclosed (Note 61):
Borrowings 31st March, 2020 1,63,260.92 1,63,260.92

There have been no transfers between Level 1 and Level 2 during the period.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

63. Capital Management

For the purpose of the Group’s capital management, capital includes issued equity capital, securities premium and all other
equity reserves attributable to the equity holders. The primary objective of the Group’s capital management is to maximise the
shareholder value.

The Group manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Group may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares.The Group monitors capital using a Current
Ratio and Debt Equity ratio.
The Group is not subject to any externally imposed capital requirements.

in Lakhs
As at 31st March, As at 31st March,
Quantitative data
2021 2020
Current Assets 3,52,841.08 1,91,114.53
Current Liabilities 2,78,936.15 3,28,156.70
Current Ratio 1.26 0.58
Debt * 3,62,402.44 3,81,598.51
Equity 23,21,147.09 6,96,081.85
Debt Equity Ratio 0.16 0.55

* Debt = Non-current Borrowings + Current Borrowings + Current maturities of Long Term Borrowings

In order to achieve this overall objective, the Group’s capital management, amongst other things including working capital
management, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that
define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call
loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing
in the current period.

64. Group Information

Information about subsidiaries

The consolidated financial statements of the Group includes Subsidiaries listed in the table below:

% Equity Interest
Country of As at As at
Name
incorporation 31st March, 2021 31st March, 2020

IGH Holdings Pvt. Ltd. India 100 100

Bhubaneswari Coal Mining Ltd. India 74 74
Rajmahal Coal Mining Ltd. India 85 85
Electrotherm Renewables Pvt. Ltd. India 100 100
Palace Solar Energy Pvt. Ltd. India 74 74
Aditya Birla Aerospace and Defence Pvt. Ltd. India 100 100
Pro Minerals Pvt. Ltd. India 100 100
EMIL Mines And Mineral Resources Ltd.(w.e.f. 27th India 100 100
February, 2020)

The consolidated financial statements of the Group includes Associates listed in the table below:

Living Media India Ltd. India 41.50 41.50

 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

65. The following disclosure is required pursuant to RBI Circular No. RBI/2019-20/170 DOR/ (NBFC).CC.PD. No. 109/ 22.10.106/ 2019-20 dated 13th March, 2020 related to subsidiaries of
the Company, IGH Holdings Pvt. Ltd. and Kanistha Finance & Investment Pvt. Ltd. :

in Lakhs
Difference
Loss
Asset between Ind
Gross Carrying allowances
Classification Net Carrying Provision as per ICARP AS 109 and
Asset Classification as per RBI Norms value as per Ind (Provisions) as
as per Ind AS Value norms provisions as
AS required under
109 per ICARP
Ind AS 109
norms
(A) (B) (C) (D) (E) = (C )-(D) (F) (G) = (D)-(F)
Performing Assets Standard
FY 2020-21 Stage 1 1,17,559.33 470.24 1,17,089.09 470.24 -
FY 2019-20 Stage 1 20,263.52 81.05 20,182.47 81.05 -

66. Disclosure pursuant to RBI notification on “COVID-19 Regulatory Package – Asset Classification and Provisioning” dated 17th April, 2020 related to subsidiaries of the Company, IGH
Holdings Pvt. Ltd. :
in Lakhs
Particulars 2020-21 2019-20
(i) Respective amounts in SMA/overdue categories, where the moratorium/deferment was extended Nil Nil
(ii) Respective amount where asset classification benefits is extended Nil Nil
(iii) Provisions made during the Q4 FY2019-20 / Q1 FY 2020-21 as per RBI circular dated 17th April, 2020 norms Nil Nil
(iv) Provisions adjusted during the respective accounting periods against slippages and the residual provisions Nil Nil

67. Details of loans given, investment made and guarantee given covered under section 186(4) of the Companies Act, 2013:

Details of investments made have been given as part of Note ‘5(i)’ & ‘5(ii)'.
in Lakhs
As at As at
Nature of
Name of the Company Relationship 31st March, 31st March,
Transactions
2021 2020
Details of Loans
Vighnahara Properties Pvt. Ltd. Others Loans 23,300.00 27,800.00
B G H Properties Pvt. Ltd. Others Loans 7,500.00 -
Lend Lease Company (India) Ltd. Others Loans 600.00 -
Keonjhar Infrastructure Development Co. Ltd. Others Loans 166.50 215.00
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

68. Additional information as required by Paragraph 2 of the General Instructions for Preparation of Consolidated Financial Statements to Schedule III to the Companies Act, 2013:
in Lakhs
Net Assets Share in Profit or (Loss) Share in Other Comprehensive Income Share in Total Comprehensive Income
As at 31st March, 2021 As at 31st March, 2020 2020-21 2019-20 2020-21 2019-20 2020-21 2019-20
As % of As % of As % of As % of As % of As % of As % of
Name of the Entity As % of Consolidated Consolidate Consolida Consolidat Consolidat Consolida Consolida Consolida
Amount Amount Amount Amount Amount Amount Amount Amount
Net Assets d Net ted Profit ed Profit or ed Profit ted Profit ted Profit ted Profit
Assets or (Loss) (Loss) or (Loss) or (Loss) or (Loss) or (Loss)

Parent Essel Mining & Industries Ltd. 68.79% 15,96,673.48 187.52% 13,05,285.55 86.66% 1,41,206.86 120.09% 86,268.38 0.02% 221.20 0.04% (272.53) 9.59% 1,41,428.06 -14.14% 85,995.85

Subsidiaries Indian

1 IGH Holdings Private Ltd. 86.47% 20,07,168.83 97.66% 6,79,772.18 9.49% 15,464.12 -41.18% (29,580.47) 99.98% 13,11,962.41 99.95% (6,79,735.95) 89.99% 13,27,426.53 116.62% (7,09,316.42)
2 Bhubaneswari Coal Mining Ltd. 1.85% 42,929.43 5.25% 36,547.28 3.93% 6,396.40 10.06% 7,228.82 0.00% (14.25) 0.00% (29.25) 0.43% 6,382.15 -1.18% 7,199.57
3 Rajmahal Coal Mining Ltd. 0.85% 19,745.18 2.61% 18,146.26 0.98% 1,600.29 6.65% 4,774.79 0.00% (1.36) 0.00% (11.47) 0.11% 1,598.93 -0.78% 4,763.32
4 Electrotherm Renewables Pvt. Ltd. -0.05% (1,184.13) -0.14% (1,007.82) -0.11% (174.88) -0.24% (174.75) 0.00% - - - -0.01% (174.88) 0.03% (174.75)
5 Palace Solar Energy Pvt. Ltd. 0.44% 10,305.60 1.19% 8,268.87 1.25% 2,034.99 2.63% 1,892.73 0.00% 0.31 - - 0.14% 2,035.30 -0.31% 1,892.73
6 Aditya Birla Aerospace and Defence Pvt. Ltd. 0.00% - 0.00% - 0.00% - 0.00% (0.55) 0.00% - - - 0.00% - 0.00% (0.55)
7 EMIL Mines And Mineral Resources Ltd.(became 0.00% 41.67 - (2.25) -0.01% (17.08) 0.00% (2.25) 0.00% - - - 0.00% (17.08) 0.00% (2.25)
Subsidiary w.e.f. 27th February, 2020)
8 Pro Minerals Pvt. Ltd. -0.33% (7,575.84) -0.28% (1,963.37) -3.44% (5,612.54) -6.52% (4,682.48) 0.00% 0.07 0.00% 11.58 -0.38% (5,612.47) 0.77% (4,670.90)

Non-controlling interests in all subsidiaries 0.97% 22,458.50 2.76% 19,218.85 1.99% 3,244.78 5.63% 4,047.48 0.00% (5.14) 0.00% (12.30) 0.22% 3,239.64 -0.66% 4,035.18
Associates

1 Living Media India Ltd. 2.54% 59,066.47 8.08% 56,232.44 1.72% 2,804.16 4.56% 3,273.11 0.00% - - - 0.19% 2,804.16 -0.54% 3,273.11

Consolidation Eliminations and Adjustments -61.54% (14,28,482.10) -204.63% (14,24,416.14) -2.46% (4,004.98) -1.68% (1,209.49) 0.00% - - - -0.27% (4,004.98) 0.20% (1,209.49)

Total 100.00% 23,21,147.09 100.00% 6,96,081.85 100.00% 1,62,942.12 100.00% 71,835.32 100.00% 13,12,163.24 100.00% (6,80,049.92) 100.00% 14,75,105.36 100.00% (6,08,214.60)
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

69. Financial risk management objectives and policies

The Group’s principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables, and financial guarantee
contracts. The main purpose of these financial liabilities is to finance the Group’s operations and to provide guarantees to support its
operations. The Group’s principal financial assets include loans, investments at Fair Value, trade and other receivables, and cash and
cash equivalents.

The Group is exposed to market risk and credit risk. The Group’s senior management oversees the management of these risks and is
supported by professional managers who advise on financial risks and assist in preparing the appropriate financial risk governance
framework for the Group. It provides assurance to the Group’s senior management that the Group’s financial risk activities are
governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with
the Group’s policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that
have the appropriate skills, experience and supervision. It is the Group’s policy that no trading in derivatives for speculative purposes
can be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks which are summarized below:

(A) Market risk

Market risk is the risk when the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as commodity price risk.
Financial instruments affected by market risk include borrowings, deposits, derivative financial instruments, FVTPL Investments, etc.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s long-term debt
obligations with floating interest rates. The Group manages its interest rate risk by having a balanced portfolio of fixed and variable rate
loans and borrowings.
(ii) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign
exchange rates. The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the Group’s operating
activities (when revenue or expense is denominated in a foreign currency).
The Group manages its foreign currency risk by hedging transactions as per it's Forex Risk Management Policy.
(iii) Commodity price risk
The Company is affected by the price volatility of key commodities like iron ore, steel, ferro alloys, crude oil, etc. Changes in price of
iron ore in international and domestic markets directly impact the realization. The price movement is being closely monitored by each
unit for taking timely action.
(B) Investment Risks
The Group has investments in both equity and debt instruments. Investments in debt instruments are subject to risks like changes in
interest rate, credit risk profile of the investee, etc. Investments in equity market are also subject to above risks coupled with business
risks associated with the industry in which the investee is operating. As the Group has significant investments in unlisted entities, there
is also marketability/liquidity risks.
(C) Regulatory risk
The Group's performance may be impacted due to change in Regulatory Environment. Group is closely monitoring the regulatory
developments and risks thereof and proactively implementing course correction for proper compliance commensurate with new
regulatory requirements.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

(D) Liquidity Risk

The Group determines its liquidity requirements in the short, medium and long term. This is done by drawing up cash forecast for short and medium
term requirements and strategic financing plans for long term needs.

The Group manages its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such risks is
managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalents position. The management
has arranged for diversified funding sources and adopted a policy of managing assets (including mutual funds) which provide flexibility to liquidate at
short notice and are included in current investments and cash equivalents. Besides, it generally has certain undrawn credit facilities which can be
accessed as and when required, which are reviewed periodically.

The Group has developed appropriate internal control systems and contingency plans for managing liquidity risk. This incorporates an assessment of
expected cash flows and availability of alternative sources for additional funding, if required.

Maturity Analysis
The Group's financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities. The
amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the
impact of discounting is not significant.

Contractual maturities of financial liabilities as at 31st March, 2021 : in Lakhs

Less than 1 1 year to 2 2 years to 5 More than 5 Carrying
year years years years Total Value

Borrowings* 1,38,752.20 69,965.47 1,55,449.96 63,900.24 4,28,067.87 3,68,212.81

Other financial liabilities - - - 1,935.00 1,935.00 1,294.52
Trade payables 41,567.65 - - - 41,567.65 41,567.65

1,80,319.85 69,965.47 1,55,449.96 65,835.24 4,71,570.52 4,11,074.98

Contractual maturities of financial liabilities as at 31st March, 2020 :

1 year to 2 2 years to 5 More than 5 Carrying
Less than 1 year Total
years years years Value

Borrowings * 2,64,025.87 74,993.52 62,303.75 14,238.51 4,15,561.65 3,89,303.46

Other financial liabilities - - - 1,935.00 1,935.00 1,179.91
Trade payables 40,635.50 - - - 40,635.50 40,635.50

3,04,661.37 74,993.52 62,303.75 16,173.51 4,58,132.15 4,31,118.87

* Includes Principal and interest payments, short term borrowings and current portion of Non-current borrowings.

(E) Estimation uncertainty relating to the global health pandemic on COVID-19

The Group has taken into account all the possible impacts of COVID-19 in preparation of these consolidated financial statements, including but not
limited to its assessment of, liquidity and going concern assumption, the recoverability of property plant and equipment, receivables, intangible assets,
cash and cash equivalent and investments. The Group has carried out this assessment based on available internal and external sources of
information upto the date of approval of these financial statements and believes that the impact of COVID-19 is not material to these financial
statements and expects to recover the carrying amount of its assets. The impact of COVID-19 on the financial statements may differ from that
estimated as at the date of approval of these consolidated financial statements owing to the nature and duration of COVID-19.
 ESSEL MINING & INDUSTRIES LIMITED AND ITS SUBSIDIARIES
Notes to Consolidated Financial Statements as at and for the year ended 31st March, 2021
CIN: U51109WB1950PLC018728

(F) Credit risk

Derivative Instruments and Unhedged Foreign Currency Exposure :

(i) Details of Derivative Instruments: As at 31st March, 2021 As at 31st March, 2020
Currency in Lakhs in Lakhs
Forward contracts to hedge highly probable forecast
transactions in foreign currency :
Probable Receivable US$ - - 78,41,522 5,911.40
Probable Payable US$ 19,71,753 1,449.33 2,92,707 220.66
Payable against import of goods EUR 30,533 26.29 - -

Derivative instruments to hedge :

Foreign Currency Loan * US$ 8,64,50,608 63,545.26 1,87,68,074 14,148.48
Trade Receivables US$ 1,30,01,506 9,556.72 2,51,53,455 18,962.16
Trade Receivables EUR - - 1,94,516 161.54
Trade Payables EUR 7,24,192 623.38 7,18,000 596.30
Trade Payables US$ 5,27,580 387.80 - -

(ii) Foreign Currency exposures are hedged through

Natural Hedge as on the Balance Sheet Date :

Trade Payable US$ 1,32,977 97.74 10,39,186 783.40

(iii) Foreign Currency exposures are not hedged as on

the Balance Sheet Date :
Trade Receivables EUR - - 2,801 2.33
Trade Payables # US$ 63,439 46.63 9,22,961 695.78
Payable against services EUR - - 2,70,890 224.97
Payable against import of goods EUR - - 41,319 34.32

* Includes forward contracts amounting to US$ 7,20,55,677.33 to fully hedged Foreign Currency Loan taken by the Company as a sub-limit to the Rupee Term Loan facility.
Foreign Currency Loan will be replaced with Rupee Term Loan at the end of tenure [Refer Note No. 19 (vii) (a & b)].
# Natural hedge includes exposures which are netted (i.e. long and short exposures in the same currency).

Trade receivables
Customer credit risk is managed by each business unit subject to the Group’s policy, procedures and control relating to customer credit risk management. Credit quality of a
customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment and performance of the
customers. Outstanding customer receivables are regularly monitored.
The ageing analysis of the receivables (before provision) has been considered from the date of invoice falls due.

n Lakhs
Trade Receivables < 30 days 31 - 90 days 91 - 180 days > 180 days Total
As at 31st March, 2021 30,424.04 6,626.88 1,642.98 3,674.58 42,368.48
As at 31st March, 2020 47,159.39 5,695.99 1,556.68 3,360.09 57,772.15

70. Previous year figures including those given in the brackets have been re-grouped and/or re-arranged wherever necessary to correspond with current year classification /
disclosure.

As per our report of even date For and on behalf of the Board

For SINGHI & CO. Sd/-

Chartered Accountants Tuhin Kumar Mukherjee
Firm Registration Number: 302049E Managing Director
DIN - 01163569

Sd/- Sd/- Sd/-

Navindra Kumar Surana Sunil Kumar Daga Giriraj Maheswari
Partner Director Director
Membership No.053816 DIN - 00441579 DIN - 00796252

Sd/- Sd/-
Place: Kolkata Arun Garg Dhananjoy Karmakar
Dated: 25th August, 2021 Chief Financial Officer Company Secretary