Annual Report

2021
Corporate Data
Epiroc Mining Limited Limited
| Board of Directors | Registrar & | Management Team
CONTENTS
Kunal Thakore Transfer Agents Jerry Andersson
Chairman KFin Tech Private Limited Managing Director
XX Corporate Data
Jerry Andersson Karvy Selenlum Tower B,
Shrikant Jog
Managing Director Plot No. 31 & 32, Gachibowli,
CFO
XX Directors’ Report 1
Financial District Nanakramguda,
Vinayak Padwal
Serilingampally,
Arvind Patil
Maria Stedfeldt Hyderabad - 500 032 XX Annexure ‘A’ to ‘C’ of The Directors’ Report 7
Jorgen Ekelow Phone: 040-6716 2222 General Manager-Product
Sami Niiranen Fax: 040-23431551 Company Nasik
E-mail: einward.ris@kfintech.com XX Auditors’ Report 21
Sudhir Deshmukh
| Company Secretary KFin Tech Private Limited General Manager-Product
& Manager Finance Mozaloc building, 3rd Floor, Company Hyderabad XX Balance Sheet 30
Mr. Ashish Jain CTS No - 1216/1, F.C. Road, Chandu Rao
Opp. F.C. College Main Gate, General Manager-CMTEC XX Statement of Profit & Loss 31
| Bankers Above Allahabad Bank,
| Registered Address
Deutsche Bank Shivajinagar, Pune - 411004
XX Cash Flow 32
ICICI Bank Limited Tel. No - 020 66496701 14th Floor, Tower 1,
E-mail: rispune@kfintech.com Fountainhead,
Phoenix Market City, XX Notes to the Financial Statements 35
| Auditors Nagar Road, Viman Nagar,
Deloitte Haskins & Sells LLP Pune - 411 014,
Maharashtra, India
Phone : +91 72197 22200
| Factories
1 Plot No. 90, MIDC Industrial Area, Satpur, Nashik 422 007
2 146/2, Sector-I, Lane 8, IDA, Phase – II, Cherlapally, Hyderabad-500 051
 Vision
Dare to Our mission
think new

In order to keep our leading position, we can’t stand still. We must have the courage to
Drive the productivity and
think new in every area of the company. The world is changing at a fast pace and our
customers are constantly facing new challenges to remain profitable and sustainable. To
sustainability transformation
succeed, we must provide innovations that improve efficiency and safety for the users. It
also requires new ways of looking at sustainability, the aftermarket and equal opportunity
in our industry
• We see opportunities and dare to challenge the status quo. We drive the productivity and sustainability transformation in our industry. As true
• We are curious and not afraid of failure. entrepreneurs, we do this with speed, courage, curiosity and creativity.
• We always try to do things a little better and find new
We work side-by-side with our customers and the industries we choose to be in,
challenges.
combining our expertise and innovative spirit with a thorough understanding of their
• It’s often a matter of continuous, small changes, rather than
great leaps operations. This makes us an invaluable part of their business success.

Our proactive and collaborative approach to make good things better steers the
development of our processes, enabling more efficient use of resources. This will
secure a high-performing organization, where people flourish and we deliver
sustainable business results.

Reliability Proximity Sustainability Expertise

Speed Courage Curiosity Creativity

 Epiroc 2030 goals for
People and Planet

Safe, Healty, Ethical Halve CO2 emissions

Safety and Health Operations

yy No work-related injuries yy Halve CO2 emissions in
operations
Balanced workforce yy 90% renewable energy in own
yy Double the number of women operations
in operational roles
Transport
Walk the talk yy Halve CO2 emissions from
yy Have all employees and business transport
partners Comply with our Code of
Conduct
Products
yy Responsible Sales yy Offer a full range of emission-free products
Assessment Process yy Halve CO2 emissions from
implemented machines sold (in 2030
compared to machines sold in
2019)

Suppliers
yy Require 50% reduction of CO2 emissions
from relevant supplier
| Our Offerings

Mining Equipment and Applications Mining Equipment and Applications

Surface Underground Underground Surface civil Deconstruction

Exploration
mining mining civil engineering engineering and recycling

Service, spare parts and consumables |

Epiroc India
Presence

Product Company
Nashik

NASHIK

Epiroc Mining India Limited PUNE HYDERABAD

Head Office-Pune

BENGALURU Product Company

Hyderabad
Epiroc CMTEC
Bengaluru
Customer Centres in India
Mumbai, Nagpur, Chennai, Hyderabad,
Delhi, Udaipur, Kolkata, Ranchi
 Our Core
Values

| Innovation
Creative, bold, open minded, with
imagination to develop new ideas
and initiatives to bring them to
market

| Commitment
Committed to meet and exceed
expectations by staying connected
to customers, technology and the
environment
| Collaboration
Close cooperation with customers,
colleagues, partners and stakholders

Extended Values

Courageous Caring Savvy Enabling Safety-minded Customer centric

Team-player Ethical Open-minded Transparent Accountable Results-driven

Annual Report
2021
Annual Report 2021 1

DIRECTORS’ REPORT
To The Members:

The Directors of Epiroc Mining India Limited (the “Company”) are pleased to present their Fourth Annual Report
together with the Audited Statement of Accounts for the year ended 31st March 2021.

1. FINANCIAL RESULTS:

(Rs. Million)

For the year ended For the year ended

Particulars
31st March, 2021 31st March, 2020
Total Income 15848.69 13721.18
Profit before interest, depreciation and tax 3187.01 3012.29
Depreciation 282.55 276.53
Finance Charge 43.29 56.62
Provision for tax (including adjustments for prior year’s
745.76 698.99
provision/deferred tax)
Net Profit 2109.94 1980.16

* One Million equals 10 Lakhs rupees.

There are no changes and/or commitments materially affecting the financial position of the Company that have
occurred between the financial period ended on 31st March, 2020 and the date of this report.

2. OPERATIONS:

During the year 2020-21, the total revenue was Rs. 15848 million against Rs. 13721 million for the corresponding
previous year. The profit before tax for the year was at Rs. 2,861 million as against Rs. 2,679 million for the
corresponding previous year.

3. ECONOMIC SCENARIO:

India continues to be one of the growing economy in the world till Q4 of the fiscal. However the spread of COVID
pandemic has left the entire world grappling with negative impact on socioeconomic front and India is not an
exception. The outlook is now heavily contingent upon the intensity, spread and duration of the pandemic.
However the Pandemic has no significant impact on the financial for the FY 20-21. The economic activities
started showing signs of normalcy with easing of restrictions.

4. CHANGE IN THE NATURE OF BUSINESS, IF ANY:

During the period in review, there has been no change in nature of business of the Company.

5. INFORMATION ABOUT SUBSIDIARY / JOINT VENTURES / ASSOCIATE COMPANIES:

Your Company does not have any subsidiaries, joint ventures or associate companies.

6. FIXED DEPOSITS:

During the year under review, your Company has not accepted any fixed deposits within the meaning of Section
73 of the Companies Act, 2013 (the “Act”) read together with the Companies (Acceptance of Deposits) Rules,
2014.

United. Inspired.
Annual Report 2021 2

7. CAPITAL REDUCTION

Members of the Company by way of Postal Ballot on 16th April, 2021 approved a special resolution for reduction
of Company’s issued, subscribed and paid-up equity share capital from 225.62 Million comprising 22.56 Million
fully paid up equity shares of Rs. 10 each to 217.32 Million by cancelling and extinguishing 3.68% i.e. 8,29,617
fully paid up equity shares of Rs. 10 each which are held by the public shareholders of the Company (all equity
shareholders of the Company other than the promoter and promoter related entities holding shares of the
Company).

The Company has already filed a petition before the National Company Law Tribunal, Mumbai Bench (“NCLT”)
under Section 66 of the Companies Act, 2013 seeking its approval for the proposed capital reduction. However,
the petition is yet to come up for hearing before the NCLT as of date of this report. The Company will keep
members updated for any further developments in the process.

8. DIVIDEND:

Your Directors in their meeting held on 28th July, 2021 have recommended final dividend of Rs. 50/- per equity
share of Rs. 10/- each fully paid-up for the year ended March 31, 2021. The same will be paid to all eligible
shareholders after approval in the forthcoming annual general meeting.

The paid up share capital of the Company is Rs. 225,615,640/- divided in to 22,561,564 equity shares of Rs. 10/-
each.

Your Company has not come out with any issue (public, rights or preferential) during the year.

9. DIRECTORS:

No change in composition of the Board during the period in review.

10. DECLARATION BY INDEPENDENT DIRECTORS:

All Independent Directors have submitted their disclosures to the Board that they fulfill all the requirements as
stipulated in Section 149 of the Act so as to qualify themselves to be appointed as Independent Directors under
the provisions of the Act and the relevant rules.

11. KEY MANAGERIAL PERSONNEL

Pursuant to the provisions of Section 203 of the Act, read with Rule 8 of Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, the Board has appointed following persons as Key
Managerial Personnel (KMP) during the period in review:

Name of Employee Designation

Mr. Jerry Andersson Managing Director (w.e.f 7th December, 2017)
Mr. Ashish Jain Company Secretary (w.e.f. 6th March, 2018)
Mr. Shrikant Jog Chief Financial Officer (w.e.f. 1st January, 2020)

12. MEETINGS OF THE BOARD:

During the year under review, your Board of Directors held five (5) Board Meetings i.e. 6th July 2020, 27th July
2020, 23rd October 2020, 18th February 2021 and 15th March 2021.
Annual Report 2021 3

13. INFORMATION PURSUANT TO SECTION 134 (3) (m) OF THE COMPANIES ACT, 2013, READ WITH RULE 8(3) OF
COMPANIES (ACCOUNTS) RULES, 2014:

a) Conservation of Energy, Technology absorption and Foreign Exchange Earnings & Outgo:

Information in accordance with Section 134 (3) (m) of the Act, read with Rule 8 (3) of the Companies
(Accounts) Rules, 2014 is given in Annexure A to this report.

b) Particulars of employees:

Particulars required to be given under Rule (5) (2) the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, are available for inspection at the Registered Office of the Company
on any working day during normal business hours. Shareholders who wish to have a copy of the same
are advised to contact the Company Secretary.

14. AUDIT COMMITTEE:

The Board has constituted an Audit Committee as per provisions of Section 177 of the Act read with the
Companies (Meetings of Board and its Powers) Rules, 2014. The committee comprises of the following Directors:

Mr. Vinayak Padwal – Chairman

Mr. Kunal Thakore – Member

Mr. Jerry Andersson – Member

15. NOMINATION AND REMUNERATION COMMITTEE:

The Board has constituted a Nomination and Remuneration Committee as per provisions of Section 178 of the
Act read with the Companies (Meetings of Board and its Powers) Rules, 2014. The committee comprises of the
following Directors:

Mr. Vinayak Padwal - Chairman

Mr. Kunal Thakore - Member

Mr. Jorgen Ekelow - Member

Ms. Maria Stedfeldt - Member

16. REMUNERATION POLICY:

The Company follows market linked remuneration policy, which is aimed at enabling the Company to attract
and retain the best talent. The Company has a market based compensation policy which is also linked to
individual and team performance as they support the achievement of Corporate Goals.

17. STAKEHOLDERS RELATIONSHIP COMMITTEE

The Board has constituted Stakeholders Relationship Committee as per provisions of Section 178 of Act to
consider and resolve the grievances of security holders of the Company. The committee comprises of the
following Directors:

Mr. Kunal Thakore – Chairman

Mr. Vinayak Padwal – Member

Mr. Jerry Andersson – Member

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Annual Report 2021 4

18. CORPORATE SOCIAL RESPONSIBILITY:

Pursuant to Section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility
Policy) Rules, 2014, Company has formed a Corporate Social Responsibility Committee (CSR Committee). The
Committee comprises following Directors:

Mr. Kunal Thakore – Chairman

Mr. Vinayak Padwal – Member

Mr. Jerry Andersson – Member

Annual Report on CSR activities including CSR Policy of the Company is given in Annexure B to this report.

19. DIRECTORS’ RESPONSIBILITY STATEMENT:

Pursuant to the requirement under Section 134(5) of the Act, the Directors confirm that:

i) in the preparation of the annual accounts, the applicable accounting standards have been followed
along with proper explanations relating to any material departures;

ii) the Directors have selected such accounting policies, and applied them consistently and made
judgments and estimates, that are reasonable and prudent, so as to give a true and fair view of the state
of affairs of the Company as at 31 March 2021 and of the profit of the Company for the year ended as on
that date.

iii) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records
in accordance with the provisions of the Act, for safeguarding the assets of the Company and preventing
and detecting fraud and other irregularities.

iv) the Directors have prepared the annual accounts on a going concern basis;

v) the directors have devised proper systems to ensure compliance with the provisions of all applicable
laws and that such systems are adequate and operating effectively.

20. AUDITORS AND AUDIT OBERVATION:

M/s. Deloitte Haskins & Sells LLP, Chartered Accountants have been appointed as the Statutory Auditors of the
Company on 11th September, 2018 to hold office upto the date of 6th Annual General Meeting of the Company.

The qualifications, disclaimers and reservations made in the Auditors’ Report are self-explanatory and therefore,
do not call for any further comments under Section 134 of the Act. The Auditor has not made any adverse
remarks in the Auditor’s Report and hence comments by Board of Directors of the Company on the Auditors’
Report are not required.

The Auditors have not reported any fraud under Section 143 (12) of the Act during the period in review.

INTERNAL AUDITORS:

M/s. KPMG Assurance and Consulting Services LLP, Chartered Accountants, Mumbai have been appointed by
the Board of Directors as the Internal Auditors of the Company.

SECRETARIAL AUDITORS:

Pursuant to the provisions of Section 204 of the Act read with the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014, the Board of Directors has appointed M/s. Yogesh D. Dabholkar and
Company, Practicing Company Secretaries, Mumbai to undertake the Secretarial Audit of the Company for the
financial year ended 31st March 2021. A copy of the Secretarial Audit Report is attached as Annexure C to this
report.
Annual Report 2021 5

COST AUDIT:

Pursuant to the provisions of Section 148 of the Act read with the Companies (Cost Records and Audit) Rules,
2014, the Company has appointed M/s. Deepak Marne & Co., Cost Accountants to undertake the Cost Audit of
the Company for the financial year ended 31st March 2021.

21. HUMAN RESOURCES:

The industrial relations during the period under review continued to be cordial. The total number of employees
of the Company as at 31st March 2021 is 990 The Directors place on record their sincere appreciation of the
services rendered by employees at all levels.

22. ANNUAL RETURN

In accordance with the Companies Act, 2013, the annual return in the prescribed format is available at:

https://www.epiroc.com/en-in/investor-relations

23. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT,
2013.

Your Company has neither given any loans or guarantees nor made any investments covered under Section 186
of the Act.

24. RELATED PARTY TRANSACTIONS:

All related party transactions entered during the year were in the ordinary course of business and at arm’s
length. Accordingly, the disclosure relating to related party transactions set out under Section 134 (3) (h) of the
Act and Rule 8 of the Companies (Accounts) Rules, 2014 in Form AOC-2 is not applicable.

25. RISK MANAGEMENT:

The Company’s internal control processes cover, amongst others, processes for identification, assessment and
mitigation of various kinds of risks, which include strategic, operational, financial, environmental, reputation
and other risks. Such risks are reviewed and discussed at various meetings of Business Boards, Product
Committees, Management Committee, Facilities Committee and various other forums within the organization,
where members of senior management are involved. Company’s internal auditors review the internal controls,
risk assessment and mitigation procedures, independently as a part of their internal audit process and their
observations and findings are presented, reviewed and discussed in the Audit Committee meetings. The Board
also reviews the risk assessment and mitigation procedures periodically.

The Epiroc Group’s principles, guidelines and instructions that are documented in ‘The Epiroc Way’ provides
executives with tools to monitor and follow up the business operations closely and quickly detect the
deviations that could develop into risks. The managers in charge of operating units continuously communicate
with employees, customers and other stakeholders both in a formal and an informal way to keep themselves
abreast with the developments in the market, products, competition and other areas.

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Annual Report 2021 6

26. DISCLOSURE UNDER RULE 8(5) (VII) OF COMPANIES (ACCOUNTS) RULES, 2014:

During the period under review, no significant and/or material orders were passed by any Regulatory Authority
or Court or Tribunal against the Company impacting the Company’s going concern status or its operations in
the future.

27. INTERNAL FINANCIAL CONTROLS:

Your Company has effective and adequate internal control systems commensurate with the nature, size and
complexities of its business, which ensure reliable financial reporting, safeguarding of assets, adherence to
management policies and promotion of ethical conduct. These systems are regularly reviewed, modified
and improved upon, to conform to changes in the business environment and processes. The Epiroc Group’s
procedures also require a regular internal audit to be conducted for each business unit and experienced people
within the Group conduct such audits.

28. DISCLOSURE AS REQUIRED UNDER SECTION 22 OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE

(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:

The Company has in place a Sexual Harassment, Prevention, Prohibition and Redressal Policy in line with the
requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013.

The Internal Complaints Committee has been set up to redress the complaints received regarding sexual
harassment.

All employees are covered under this policy. There were no complaints received during the year.

29. ACKNOWLEDMENTS:

Your Board of Directors wishes to express its sincere appreciation for the excellent support and co-operation
by Epiroc Group, shareholders, vendors, customers, bankers and all other business partners. The Board also
wishes to express its sincere appreciation for the contribution and commitment of all the employees to the
success of the Company.

On behalf of the Board of Directors

Kunal Thakore
Mumbai Chairman
28th July, 2021 (DIN:06462999)
Annual Report 2021 7

ANNEXURE TO THE DIRECTORS’ REPORT

ANNEXURE A
Conservation of energy, research and development, technology absorption, foreign exchange earnings and outgo.
[Particulars pursuant to Companies (Accounts) Rules, 2014]

A. Conservation of energy:

The Company has taken efforts to conserve energy by adopting following measures:

Steps taken at Hyderabad manufacturing location:

1. LED Lights with programmed ON/OFF.

During the last financial year the plant team had replaced the Office Areas lightings with LED Lights to
save almost 30% Energy use.

Now the plant team is in process to install the motion sensors in all cabins and office areas to save the
electricity further.

2. New Project for Solar Power Generation at Hyderabad PC.

The roof top Solar Project at Hyderabad PC, was inaugurated on 21st December 2020.

The installed system’s rated capacity is 380 KWP with an expected output of 574 MWH/Year which
translates to around 8% of the Plant’s total energy Consumption.

We are pleased to declare that the solar installation has been generating power uninterrupted since its
commissioning. It has been contributing around 8% to the plants total energy requirement.

We have also initiated the 2nd solar project which will again add, another 8% of our total energy
requirement.

By end of Quarter 4, 2021, we shall be meeting 16% of our total energy requirement for the Hyderabad
Plant through renewable energy. This is another step towards generation of renewable energy and
contributing towards the Epiroc group’s sustainability goals 2030.

3. Roof Repairs with new Rockwool for Better Insulation.

During the replacement of Old Roof, We also replaced the old Insulation with New Rockwool insulation
which will enhance the cooling effect in shop floor.

4. Inverter based Air Conditioners.

As and when required, we are replacing Old Air Conditioners with Inverter based Air conditioners, which
result in 20% Energy savings over traditional Air conditioners.

5. Natural lighting installed for Old Plant.

During the replacement of old roof, we also replaced the old sky lights with new once, which have
improved the natural light ultimately resulting in less usage of Electricity for lighting purpose.

6. STP Water Usage.

We use STP water for all our gardening purposes, these results in effective water recycling and water
conservation.

Now we have Ordered New STP Plant with Better Efficiency and output wherein we can also use output
water for Toilet Flushing and also for some of the manufacturing processes.

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Annual Report 2021 8

7. LPG Usage.

LPG converted from VOT to LOT system to maximize the Utilization. This utilizes the wastage of almost
15% LPG from each Cylinder during Rainy & Winter Seasons. Further to this development, now we shifted
from 47.5 Kgs cylinder to 450 Kg (SUMO) Cylinder. This saves further wastage /Cylinder.

8. Auto Taps in Urinals.

In all the Toilets in plant, we have installed the Auto water Taps. This saves a lot of water wastage.

Steps taken at Nasik manufacturing location:

Time & Motion Sensors

a. Switching off water pumps from 6 PM to 7 AM to reduce On Off operation of pump and energy as well.

b. Installed Motion Sensors in wash room for Exhaust Fans and Lights in some of the offices.

c. Motion & Time Sensors for Non Use Duration for heavy equipment like Office Air conditioning, Ventilation
System

Effective Lighting

d. All street and office lights are replaced by LEDs

e. As a policy, we will be replacing the conventional lights by LED as and when required (in case of failure).

Optimum use of Compressed Air

f. One factory one compressor is in place since last 2 years, which yields us saving of 27% annually in
energy.

g. Monthly air leakage checks to fix the wastage of compressed air.

h. Compressed air supply at aeration tank of STP is changed to blower type, to save 4,500 KWH energy
monthly.

Renewable Energy Source

i. A Solar Plant of 155 KW capacity has been installed which generates Approximately 23250 Units per
month which saves 15% energy used for operations.

j. Proposed 600 KW capacity solar plant is planned for installation during Q4 2021.

k. Canteen hot water arrangement is done through dedicated solar water tubes.

Audit

l. Thermography of all the Electrical Installations to reduce Energy loss and Electrical Safety.

m. Harmonics Testing of HT as well as LT installation. The plant operation team have installed Two Active
Harmonics Filters for keeping Harmonics below 8% as per Electricity Board rule results in improving the
Power Quality and we are maintaining Unity Power Factor.

Other Major Initiatives

n. Dedicated testing transformer of 14 years age is replaced by new transformer with 50% less no load
energy losses.

o. Paint booth blowers are connected with VFD in place conventional starters. This gives reduction in
energy by 30%.

p. Effective Preventive maintenance execution resulted in optimum usage of energy and increased life of
parts like motors, blowers, compressors, pumps, etc.
Annual Report 2021 9

The above actions have resulted in reduction of power consumption, saving in energy and fuel costs.

Also at the Engineering Centre in Bangalore the drawing checklists are now digitized and no paper checklists
are used. This saves a significant paper/print consumption.

B. Technology absorption:

Research and Development.

1. Specific areas in which the Company carries out R & D.

The Company does not have specific Research and Development Department. The Company
maintains close contacts with the Epiroc Group Companies, which are responsible for the research
and development of various product lines. Value engineering and value analysis, with respect to these
products, processes and substitute materials, is carried out on a continuous basis to improve quality,
reduce rejections and give better value to the Company’s customers.

The Engineering Competency Centre of the Company, located at Bangalore, which provides mechanical
engineering, CAE and software development services, have been working in close coordination with
Product Development Departments of group companies all over the world.

We added a competent RPA (Robotic Process Automation) team to automate routine administrative
processes across the Epiroc companies. This helps to increase the efficiency and reduce costs.

2. Benefits derived as a result of the above activity.

The benefits derived are, improvements in quality and cost reductions for the existing range of products,
development of new products with less energy consumption, noise and emission reduction, more local
product development and increased local production, import substitution, export promotion and faster
product launch in the markets.

3. Future plans and actions.

The Company has an ongoing program for up-gradation of existing products, introduction of new
products, improvement in manufacturing processes and reducing product costs, import substitution
and export promotion. This is done through continuous process and product development in close
interaction with Group companies, customers and vendors.

4. Expenditure on R & D.

Since the Company has no specific Research and Development Department, it is not possible to quantify
expenditure, whether capital or revenue, incurred on research and development activities.

Technology absorption, adaptation and innovation.

1. Efforts in brief, made towards absorption, adaptation and innovation:

The Company maintains constant contacts with Epiroc Group companies to absorb the latest
technology developed by them. Continuous interaction with their technical staff, visits and training of
our employees at Group company factories, regular meetings of Product Committees, and visits of
technical staff from other Group companies to our factories, help us to keep up to date with all the latest
technical developments. Some of the specific steps taken by the Company for absorption of technology,
adaptation and innovation are:

In New upcoming Exploration product, we are using energy efficient pumps to keep the engine RPM at
lowest to save the fuel.

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Annual Report 2021 10

2. Benefits derived as a result of the above efforts

The benefits of the technology developed by the Epiroc Group are available for the Company on a
continuous basis, which enables the Company to manufacture a broad range of existing and new
products at optimum costs for both domestic and export markets. This also helps to increase the
Company’s market share and to improve the Company’s competitive position.

C. Foreign Exchange Earnings and Outgo:

1. Activities relating to exports:

The Company continues to focus on development of new products and services for export market, up-
gradation of existing products and improvement in quality and costs with technological support from
Epiroc Group companies.

2. Total foreign exchange used:

Financial Year Financial Year

Particulars 2020-21 2019-20
(Rs. Millions) (Rs. Millions)
Earning in foreign currency 6213.93 4714.51
Payments (expenditure) in foreign currency 7036.36 5083.07
Annual Report 2021 11

ANNEXURE TO THE DIRECTORS’ REPORT

ANNEXURE B

ANNUAL REPORT ON CSR ACTIVITIES FOR THE FINANCIAL YEAR 2020-21

[Pursuant to Section 135 of the Companies Act, 2013 read with Companies
(Corporate Social Responsibility Policy) Rules, 2014, as amended.]

1. BRIEF OUTLINE ON CSR POLICY OF THE COMPANY

Your Company is committed to operate and grow its business in a socially responsible way. The Company’s
Corporate Social Responsibility (CSR) policy is available on the website at www.epiroc.com.

CSR Policy of the Company

This Corporate Social Responsibility Policy has been framed by Epiroc Mining India Limited in accordance with
the Section 135, Schedule VII of the Companies Act, 2013 and CSR Rules issued by the Ministry of Corporate
Affairs.

VISION

"To actively contribute to the social and economic development of the communities/regions in which we
operate. While doing so, build a better, sustainable way of life for the weaker sections of society and raise the
country's human development index."

The Epiroc Group encourages learning and development through cooperation with local communities and
believes that this will help to maintain the sustainable development of its own business and contribute to
developing communities for future generations to come.

The Epiroc Group encourages its subsidiaries to participate in and support local engagement in selective
and focused community activities as appropriate, which are seen to add value to the local community and
supporting the long-term development of the Group’s business.

FOCUS AREAS

The Company would pursue its CSR activities in the following areas:

1. Promotion of education and skill development

2. Environmental sustainability and energy efficiency projects

3. Rural development

4. Eradication of poverty

5. Promotion of preventive health care and sanitation

6. Provision of safe drinking water

7. Promotion of gender equality, measures for empowering women, setting up homes for women and
orphans, setting up old age homes, day care centres and such other facilities for senior citizens and
measures for reducing inequalities faced by socially and economically backward groups

8. Protection of national heritage, art and culture

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Annual Report 2021 12

9. Contribution to other charitable and social organisations created with the main objective of engaging
themselves in any one or more of the above activities.

10. Contribution to the Prime Minister’s National Relief Fund or any other fund set up by the Central
Government for socio-economic development and relief.

2. Composition of CSR committee:

Number of
Number of
meetings of
Sl. meetings of CSR
Name of Director Designation / Nature of Directorship CSR Committee
No. Committee held
attended during
during the year
the year
Independent Director, Chairperson of 1 1
1. Mr. Kunal Thakore
CSR Committee
Independent Director, member of CSR 1 1
2. Mr. Vinayak Padwal
Committee
Managing Director, member of CSR 1 1
3. Mr. Jerry Andersson
Committee

3. Web links where composition of CSR committee, CSR Policy and CSR projects approved by the board are
disclosed on the website of the company:

The details of CSR Policy, composition of the CSR committee and CSR project approved by the Board are
available on our website, at: https://www.epiroc.com/en-in/investor-relations

4. Details of impact assessment of CSR projects carried out in pursuance of sub-rule (3) of Rule 8 of the
Companies (Corporate Social Responsibility Policy) Rules, 2014, if applicable:

Not Applicable for the financial year under review.

5. Details of the amount available for set-off in pursuance of sub-rule (3) of Rule 7 of the Companies (Corporate
Social Responsibility Policy) Rules, 2014 and amount required for set-off for the financial year, if any:

Nil

6. Average net profit of the Company as per Sec 135(5): 1972.29 million

7. a. Two percent of average net profit of the Company as per Section 135(5): 39.45 million

b. Surplus arising out of the CSR projects or programs or activities of the previous financial years: Nil

c. Amount required to be set-off for the financial year, if any: Nil

d. Total CSR obligation for the financial year (7a+7b-7c): 39.45 million

8. (a) CSR amount spent or unspent for the financial year:

Amount Unspent (in million)

Total amount Total amount transferred to Amount transferred to any fund specified
spent for the Unspent CSR Account as per under Schedule VII as per second proviso
financial year Section 135(6) to Section 135(5)
(in million)
Name of the Date of
Amount Date of transfer Amount
fund transfer
10.16 29.29 29th April, 2021 NA Nil NA
Note: The unspent amount will be transferred to unspent CSR account within 30 days from the end of
the financial year, in accordance with the Companies Act, 2013 read with the CSR Amendment
Rules.
 8. (b) Details of CSR amount spent against ongoing projects for the financial year:

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

Sl. Name of the Item from Local Location of the Project Project Amount Amount Amount Mode of Mode of
No. Project the list of Area Duration Allocated in the transferred implemen- implementation - through
Annual Report 2021

activities (in Years) for the Current to Unspent tation implementing agency
(yes
in Project Financial CSR Direct
/ No)
Schedule (in Rs. Year Account (Yes/No)
VII to the million) (in Rs. for the
Act million) project as
State District per Name CSR
Section Registration
135(6) Number
(in Rs.
million)

1 Ambulance (i) Yes Telangana Hyderabad 2 2.09 1.92 0.17 No Epiroc CSR00008014
Facility at Charitable
Hyderabad Foundation

2 Epiroc Smart (ii) No Jharkhand Dhanbad 2 5 2.5 2.5 No Epiroc CSR00008014

Lecture Halls Charitable
Foundation

3 Epiroc (ii) Yes Delhi Delhi 3 5 1 40 N0 Epiroc CSR00008014

Kaushalya Charitable
Vikas Program Foundation

4 Mobile (i) No Uttarakhand Chamoli 3 2.55 - 2.55 Yes - -

hospital cum
Ambulance
Facility at
Uttarakhand

5 Basic needs (ii) Yes Maharashtra Nasik 1 1.6 - 1.6 Yes - -

for Adivasi
Girls hostel

6 Epiroc Vidya (ii) Yes Maharashtra Nasik 1 0.4 - 0.4 Yes - -

Sahayog
Program
13

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(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

Sl. Name of the Item from Local Location of the Project Project Amount Amount Amount Mode of Mode of
No. Project the list of Area Duration Allocated in the transferred implemen- implementation - through
activities (in Years) for the Current to Unspent tation implementing agency
(yes
in Project Financial CSR Direct
Annual Report 2021

/ No)
Schedule (in Rs. Year Account (Yes/No)
VII to the million) (in Rs. for the
Act million) project as
State District per Name CSR
Section Registration
135(6) Number
(in Rs.
million)

7 Anand (ii) Yes Maharashtra Nasik 1 1 - 1 Yes - -

Niketan
School

8 Amrutdhara (iv) Yes Rajasthan Udaipur 2 5 - 5 Yes - -

i.e. Water For
All

9 School basic (ii) Yes Rajasthan Udaipur 2 4 - 4 Yes - -

Infrastructure
upliftment

10 Covid-19 (i) Yes Maharashtra Nasik & 2 8.08 - 8.08 Yes - -

Relief & Pune
Hospital
Facility for
Community

Total 34.72 - 5.42 29.3

14
 8. (c) Details of CSR amount spent against other than ongoing projects for the financial year:

(1) (2) (3) (4) (5) (6) (7) (8)

Item from Mode of implementation -
Location of the Project
the list of Mode of through implementing agency
Local
activities Amount spent imple-
Annual Report 2021

Sl. Area
Name of the Project in for the Project mentation CSR
No. (yes /
Schedule State District (in Rs. million) Direct Name Registration
No)
VII to the (Yes/No) number
Act
Epiroc
Ashwin Medical
1 (i) Yes Maharashtra Pune 0.5 No Charitable CSR00008014
Foundation
Foundation
Construction of
Epiroc
Sanitation facility &
2 (iii) No Maharashtra Beed 0.9 No Charitable CSR00008014
Medical Facility for
Foundation
orphanage Nursery
Epiroc Scholarship Epiroc
3 program (ii) Yes Karnataka Bengaluru 2.7 No Charitable CSR00008014
(Higher Education) Foundation

(d) Amount spent in administrative overheads: 0.63 million

(e) Amount spent on impact assessment, if applicable: Not applicable

(f ) Total amount spent for the financial year (8b+8c+8d+8e): 39.45 million

(g) Excess amount for set off, if any:

Sl. No. Particulars Amount (in Mn.)

(i) Two percent of average net profit of the company as per section 135(5) 39.45

(ii) Total amount spent for the Financial Year 39.45

(iii) Excess amount spent for the financial year [(ii)-(i)] NA

(iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any Nil

(v) Amount available for set off in succeeding financial years [(iii)-(iv)] Nil
15

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Annual Report 2021 16

9. (a) Details of Unspent CSR amount for the preceding three financial years:

Amount Amount transferred to any Amount

Amount spent fund specified under Schedule remain-
transferred to in VII as per section 135(6), if any. ing to be
Preceding
Sl. Unspent CSR the spent in
Financial
No. Account under reporting Name succeeding
Year Amount Date of
section 135 (6) Financial of the financial
in Mn. transfer
(in Mn.) Year Fund years.
(in Mn.). (in Mn.)
1 2018-19 Not Applicable -Nil- - - - 13.5
2 2019-20 Not Applicable -Nil- - - - 28.5

9. (b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial
year(s):

Not applicable, as the concept of 'ongoing projects' has been introduced in the CSR Amendment Rules,
relevant from financial year 2020-21. Details of spend on all ongoing projects during financial year 2020-
21 are covered under 8(b) above.

10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or
acquired through CSR spent in the financial year:

No capital asset was created / acquired for financial year 2020-21 through CSR Spend.

11. Specify the reason(s), if the company has failed to spend two percent of the average net profit as per
Section 135(5):

During_the financial year 2020-21, the Company has spent INR 10.16 million on various projects and transferred
INR 29.29 million to the Unspent CSR Account.

On behalf of the Board of Directors

of Epiroc Mining India Limited

Kunal Thakore Jerry Andersson

Chairman of CSR Committee Managing Director

Date: 28th July, 2021

Place: Mumbai
Annual Report 2021 17

ANNEXURE TO THE DIRECTORS’ REPORT

ANNEXURE C
FORM NO. MR-3
SECRETARIAL AUDIT REPORT
For the financial year ended March 31, 2021
{Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies
(Appointment and Remuneration Personnel) Rules, 2014]

To,
The Members,
Epiroc Mining India Limited,
14th Floor, Tower 1, Fountainhead,
Phoenix Market City,
Nagar Road, Viman Nagar,
Pune – 411014, Maharashtra, India

We have conducted the Secretarial Audit of the compliances of applicable statutory provisions and the adherence
to good corporate practices by Epiroc Mining India Limited (hereinafter called “the Company”). Secretarial Audit
was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory
compliances and expressing our opinion thereon.

Based on our verification of books, papers, minute books, forms and returns filed and other records maintained and
the information provided by the Company, its officers, agents and authorized representatives during the conduct of
secretarial audit, the explanations and clarifications given to us and the representations made by the Management and
considering the relaxations granted by the Ministry of Corporate Affairs warranted due to the spread of the COVID-19
pandemic, we hereby report that in our opinion, the company has, during the audit period covering the financial year
ended March 31, 2021, generally complied with the statutory provisions listed hereunder and also that the Company
has Board processes and compliance mechanism in place to the extent, in the manner and subject to the reporting
made hereinafter:

We have examined the books, papers, minute books, forms and returns filed and other records maintained by the
Company for the financial year ended March 31, 2021, according to the provisions of:

(i) The Companies Act, 2013 (the Act) and the rules made there under;

(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made there under; Not Applicable

(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed there under;

(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made there under to the extent of
Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings;

(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act,
1992 (‘SEBI Act’) are not applicable since the Company is unlisted public limited company and there was no
event occurred during the period which attract the provisions of these guidelines.

a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations,
2011;

b. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;

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Annual Report 2021 18

c. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations,
2009;

d. The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock
Purchase Scheme) Guidelines, 1999 and the Securities and Exchange Board of India (Share Based
Employee Benefits) Regulations, 2014 notified on 28th October, 2014 and its amendment notified on
18thSeptember, 2015;

e. The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act and dealing with Client;

f. The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;

g. The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009;

h. The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998;

(vi) As informed to us, there are no other laws applicable specifically to the Company and on examination of
the relevant documents and records in pursuance thereof, on test-check basis, the Company has generally
complied with the labour and environmental laws as applicable.

We have also examined compliance with the applicable clauses of the following:

(i) Secretarial Standards issued by The Institute of Company Secretaries of India from time to time including
statutory modifications and amendments thereof.

We have relied on the representation given by the Company’s officials and applicability and compliance
of the other Act(s). We have not checked compliances of these Acts and have relied on certification(s) as
provided to us by the management in this regard.

During the financial year from 1st April, 2020 to 31st March, 2021 under review the Company has generally
complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc subject to the
following observations.

1. There is an unspent amount of Rs. 2,92,95,407 /- on Corporate Social Responsibility for the year
under consideration. The Company has opened an unspent Corporate Social Responsibility
Account on 9th April, 2021 with Deutsche Bank and transferred the said amount. As per the
explanation provided to us, the said amount shall be spent on ongoing projects within a period of
three years and any amount left will be transferred to Prime Minister’s cares fund.

2. The company has received an order from Stamp Authority for adjudication of stamp duty on the
order passed by Hon’ble National Company Law Tribunal on 30th November, 2017 in respect of
demerger of Mining and Rock Excavation division of Atlas Copco (India) Limited into the Company.
The Company has filed an appeal on the value of stamp duty ascertained in the said order before
the Hon’ble Inspector General of Registration and controllers of Stamps (IGR), Maharashtra, Pune
and same is pending before the authority.

We further report that the Board of Directors of the Company is constituted with proper balance of Executive Directors,
Non-Executive Directors and Independent Directors as is required under the provisions of the Companies Act, 2013.
The changes in the composition of the Board of Directors that took place during the period under review were carried
out in compliance with the provisions of the Act.

Adequate notice is given to all directors to schedule the Board Meetings, Agenda and detailed notes on agenda were
sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications
on the agenda items before the meeting and for meaningful participation at the meeting.

All the decisions in the Board meetings and committee meetings are carried out either unanimously or by majority as
recorded in the minutes of the meeting of Board of Directors or committee of the Board, as the case may be.
Annual Report 2021 19

We further report that as represented by the Company and relied upon by us there are adequate systems and
processes in the Company commensurate with the size and operations of the Company to monitor and ensure
compliance with applicable laws, rules, regulations and guidelines etc.

We further report that during the audit period, the Company has not undertaken any specific events / actions that
can have a bearing on the Company’s affairs in pursuance of the above referred laws, rules, regulations, guidelines,
standards, etc. except as follows

The Company vide postal ballot notice dated 15th March 2021 sought the approval of its members to the proposed
Reduction of Capital Pursuant to Article 37 of the Articles of Association of the Company, Section 66 of the Companies
Act, 2013 and the rules and regulations framed thereunder, by special resolution subject to approval of Hon’ble
National Company Law Tribunal and such other appropriate authorities and third parties, as may be required. After
the close of financial year, results of the postal ballot (via e-voting) conducted for the above said item was declared
on 17th April, 2021 and the special resolution considered as passed with requisite majority as per the provisions of the
Act. After the close of the financial year, the application with Hon’ble NCLT for obtaining its confirmation in the matter
was filed on 6th May, 2021

For Yogesh D Dabholkar & Co.,

Practicing Company Secretaries

Yogesh D Dabholkar
Proprietor
FCS No: 6336.
COP No: 6752.
UDIN: F006336C000801174

Place: Dombivali
Date: 28th July, 2021

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Annual Report 2021 20

ANNEXURE A

To,
The Members,
Epiroc Mining India Limited,
14th Floor, Tower 1, Fountainhead,
Phoenix Market City,
Nagar Road, Viman Nagar,
Pune – 411014, Maharashtra, India

Our report of even date is to be read along with this letter

1. Maintenance of Secretarial record is the responsibility of the management of the Company. Our responsibility
is to express an opinion on these secretarial records based on our audit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance
about the correctness of the contents of the Secretarial records. The verification was done on test basis to
ensure that correct facts are reflected in secretarial records. We believed that the processes and practices that
we followed provide a reasonable basis for our opinion.

3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the
company.

4. The minutes, documents, records and other information checked for the purpose of audit were received from
the Company in soft copy and through electronic mail due to the ongoing pandemic

5. Where ever required, we have obtained the Management representation about the compliance of laws, rules
and regulations and happening of events etc.

6. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the
responsibility of management. Our examination was limited to the verification of procedures on test basis.

7. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy
or effectiveness with which the management has conducted the affairs of the company.

For Yogesh D Dabholkar & Co.,

Practicing Company Secretaries

Yogesh D Dabholkar
Proprietor
FCS No: 6336.
COP No: 6752.
UDIN: F006336C000801174

Place: Dombivali
Date: 28th July, 2021
Annual Report 2021 21

INDEPENDENT AUDITORS’ REPORT

To The Members of Epiroc Mining India Limited
Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Epiroc Mining India Limited (“the Company”), which
comprise the Balance Sheet as at March 31, 2021, and the Statement of Profit and Loss (including Other Comprehensive
Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary
of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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 Indian Accounting Standards prescribed under section 133 of the Act
read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting
principles generally accepted in India, of the state of affairs of the Company as at March 31, 2021, and its profit, total
comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards on Auditing specified under
section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor’s
Responsibility for the Audit of the 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 of India (ICAI) together with the
ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the
Rules made 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 obtained by us is sufficient and appropriate to provide
a basis for our audit opinion on the financial statements.

Information Other than the Financial Statements and Auditor’s Report Thereon

● The Company’s Board of Directors is responsible for the other information. The other information comprises
the Director's report (but does not include the financial statements and our auditor’s report thereon) which we
obtained prior to the date of this auditor’s report.

● Our opinion on the 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 financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the 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.

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Annual Report 2021 22

Management’s Responsibility for the 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 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
Ind AS and other accounting principles generally accepted in India. 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 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 financial statement that
give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the 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 Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:

● Identify and assess the risks of material misstatement of the 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 financial 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 the 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
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.
Annual Report 2021 23

● Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes
it probable that the economic decisions of a reasonably knowledgeable user of the 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 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 Section 143(3) of the Act, based on our audit 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 Other Comprehensive Income, the
Statement of Cash Flows 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 financial statements comply with the Ind AS specified under Section 133 of
the Act.

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 A”. Our report
expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s
internal financial controls over financial reporting.

g) With respect to the other matters to be included in the Auditor’s Report in accordance with the
requirements of section 197(16) of the Act, as amended, in our opinion and to the best of our information
and according to the explanations given to us, the remuneration paid by the Company to its directors
during the year is in accordance with the provisions of section 197 of 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 Company has disclosed the impact of pending litigations on its financial position in its Ind AS
financial statements.

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Annual Report 2021 24

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

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor
Education and Protection Fund by the Company.

2. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central
Government in terms of Section 143(11) of the Act, we give in “Annexure B” a statement on the matters
specified in paragraphs 3 and 4 of the Order.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)

Jayesh Parmar
Partner
(Membership No. 106388)
UDIN : 21106388AAAACO5502
Place: Mumbai
Date: July 28, 2021
Annual Report 2021 25

ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1 (f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report
of even date)

Report on the Internal Financial Controls Over Financial Reporting 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 Epiroc Mining India Limited (“the Company”)
as of March 31, 2021 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended
on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internal financial controls based on the
internal 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 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 Company's internal financial controls over financial reporting of the
Company 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 over financial reporting 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
system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial
reporting included obtaining an understanding of internal financial controls over financial reporting, 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 system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting 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

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Annual Report 2021 26

reporting 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

Because of the inherent limitations of internal financial controls over financial reporting, 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 to future
periods are subject to the risk that the internal financial control over financial reporting 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, to the best of our information and according to the explanations given to us, the Company has, in all
material respects, an adequate internal financial controls system over financial reporting and such internal financial
controls over financial reporting were operating effectively as at March 31, 2021 , based on the criteria for internal
financial control over financial reporting 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 DELOITTE HASKINS & SELLS LLP

Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)

Jayesh Parmar
Partner
(Membership No. 106388)
UDIN : 21106388AAAACO5502
Place: Mumbai
Date: July 28, 2021
Annual Report 2021 27

ANNEXURE “B” TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of
even date)

(i) In respect of its Property, Plant and Equipment:

(a) The Company has maintained proper records showing full particulars, including quantitative details and
situation of Property, Plant and Equipment.
(b) The Company has a program of verification of Property, Plant and Equipment to cover all the items in
a phased manner over a period of three 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, certain Property, Plant and
Equipment 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) With respect to immovable properties of land & building that are freehold, according to the information
and explanation given to us and the records examined by us and based on the examination of transfer
deed provided to us, we report that, the title deeds of such immovable properties are held in the name
of the Company as at balance sheet date. In respect of immovable properties of land and buildings
that have been taken on lease and disclosed as right to use of assets in the financial statements, the
lease agreements are in the name of the Company, where the Company is the lessee in the agreement,
except as follows:

Particulars of the Gross Block Net Block Remarks (give reasons for
land and building (as at 31 March-2021) (as at 31 March-2021) the exception)

Leasehold land Rs.0.24 million Rs.0.12 million The title deeds are in
and building the name of Atlas Copco
located at (India) Limited, erstwhile
Plot no. 90, Company from which the
Nashik Industrial Company was demerged
Area, Satpur, under Section 230 to 232
Nashik – 422007 of the Act in terms of the
admeasuring approval of the National
60,500 sq. meters. Company Law Tribunal,
Mumbai bench.

(ii) As explained to us, the inventories excluding Goods in Transit were physically verified during the year by the
Management at reasonable intervals and no material discrepancies were noticed on physical verification.

(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability
Partnerships or other parties covered in the register maintained under section 189 of the Act.

(iv) The Company has not granted any loans, made investments or provided guarantees and securities to the
parties covered under section 185 and 186 of the Act. Hence reporting under clause 3(iv) of the Order is not
applicable to the Company.

(v) According to the information and explanations given to us, the Company has not accepted any deposit pursuant
to the section 73 to 76 or any other relevant provisions of the Act. There are no unclaimed deposits as at March
31, 2021. Hence, reporting under clause 3(v) of the Order if not applicable to the Company.

United. Inspired.
Annual Report 2021 28

(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the
Act. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost
Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of
Section 148 of the Act, and are of the opinion that, prima facie, the prescribed cost records have been made and
maintained We have, however, not made a detailed examination of the cost records with a view to determine
whether they are accurate or complete.

(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has been generally been regular in depositing undisputed statutory dues, including
Provident Fund, Employees’ State Insurance, Income-tax, Goods and Services Tax, Customs Duty, Cess
and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of these statutory dues in arrears as at March 31,
2021 for a period of more than six months from the date they became payable
(c) Details of dues of Stamp Duty which have not been deposited as on March 31, 2021 on account of
disputes are given below:

Name of
Period to which Amount paid
Statute / Forum where Amount Unpaid
amount relates under protest
Nature of dispute is pending (Rs.in Mn)
(Financial Year) (Rs.)
Dues

Stamp Duty The Stamp Collector, 2017-18 103.42 -

Enforcement
Division 1

According to the information and explanation provided to us and as per the scheme of arrangement
(Refer note 33 (a) to the financial statements), disputed dues pertaining to the business operations
transferred from the transferor company prior to November 30, 2017 (appointed date) have not been
included since the same will be settled by the transferor company with the statutory authorities. These
statutory dues would be reimbursed by the Company.

(viii) The Company has not taken any loans or borrowings from financial institutions, banks and government or has
not issued any debentures. Hence reporting under clause (viii) of the Order is not applicable to the Company.

(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt
instruments) or term loans and hence reporting under clause (ix) of the Order is not applicable.

(x) To the best of our knowledge and according to the information and explanations given to us, no material
fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or
reported during the year.

(xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided
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 and hence reporting under clause (xii) of the Order is not applicable.

(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with
Section 177 and 188 of the Act, where applicable, for all transactions with the related parties and the details of
related party transactions have been disclosed in the financial statements etc. as required by the applicable
accounting standards.
Annual Report 2021 29

(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully
or partly convertible debentures and hence reporting under clause (xiv) of the Order is not applicable to the
Company.

(xv) In our opinion and according to the information and explanations given to us, during the year the Company has
not entered into any non-cash transactions with its directors or directors of its holding, subsidiary or associate
company or persons connected with them and hence provisions of section 192 of the Act are not applicable.

(xvi) The Company is not required to be registered under section 45-I of the Reserve Bank of India Act, 1934.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)

Jayesh Parmar
Partner
(Membership No. 106388)
UDIN : 21106388AAAACO5502
Place: Mumbai
Date: July 28, 2021

United. Inspired.
Annual Report 2021 30

Epiroc Mining India Limited

Balance Sheet As at 31st March 2021

Note As at As at
Particulars No. 31st March 2021 31st March 2020
Rs. in Million Rs. in Million
I Assets
1. Non-Current Assets
(a) Property, plant and equipment 2 1,503.10 1,456.15
(b) Right-of -use assets 42 189.35 245.96
(c) Capital work-in-progress 2 3.20 -
(d) Intangible assets 3 3.99 4.19
(e) Financial assets
Other financial assets 4 90.67 88.52
(f) Deferred tax asset (net) 5 111.79 101.59
(g) Other non-current assets 6 326.30 279.61
Total Non-Current Assets 2,228.40 2,176.02
2 Current Assets
(a) Inventories 7 4,119.90 2,866.12
(b) Financial assets
(i) Investments 8 1,941.90 2,790.54
(ii) Trade receivables 9 3,687.37 2,864.42
(iii) Cash and cash equivalents 10 55.22 161.71
(iv) Other current financial assets 4A 9.10 25.78
(c) Other current assets 6A 674.15 455.41
Total Current Assets 10,487.64 9,163.98
Total Assets 12,716.04 11,340.00

Equity And Liabilities

I Equity
(a) Equity share capital 11 225.62 225.62
(b) Other equity 12 9,283.01 8,830.41
Total Equity attributable to owners of the Company 9,508.63 9,056.03

II Liabilities
1 Non-Current Liabilities
(a) Financial Liabilities
Lease Liabilites 42 147.40 205.64
(b) Provisions 13 115.90 153.98
Total Non-Current Liabilities 263.30 359.62
2 Current Liabilities
(a) Financial Liabilities
(i) Lease liabilities 42 76.93 67.52
(ii) Trade payables
(A) Total outstanding dues of micro enterprise and small enterprise 35 25.42 26.72
(B) Total outstanding dues to creditors other than micro enterprise and small enterprise 14 2,297.22 1,525.51
(iii) Other financial liabilities 15 42.75 2.14
(b) Provisions 13A 141.06 247.93
(c) Current tax liabilities (net) 16 32.93 -
(d) Other current liabilities 17 327.80 54.53
Total Current Liabilities 2,944.11 1,924.35
Total Equity & Liabilities 12,716.04 11,340.00
See accompanying notes forming part of the financial statements 1 to 47

In terms of our report attached

For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants
Kunal Thakore Vinayak Padwal Jerry Andersson
Jayesh Parmar Chairman Director Managing Director
Partner (DIN 06462999) (DIN 00198772) (DIN 08015237)
(Membership No. 106388) Date : 28th July, 2021 Date : 28th July, 2021 Date : 28th July, 2021
UDIN : 21106388AAAACO5502 Place : Mumbai Place : Mumbai Place : Mumbai

Date : 28th July, 2021 Shrikant Jog Ashish Jain

Place : Mumbai Chief Financial Officer Company Secretary & Manager Finance
Date : 28th July, 2021 Date : 28th July, 2021
Place : Mumbai Place : Mumbai
Annual Report 2021 31

Epiroc Mining India Limited

Statement of Profit and Loss for the year ended 31st March 2021

Note For the year ended For the year ended

Particulars No. 31st March 2021 31st March 2020
Rs. in Million Rs. in Million
Revenue from operations 18 15,571.02 13,535.84

Other income 19 277.67 185.34

Total Income 15,848.69 13,721.18

Expenses
Cost of material consumed 20 5,819.54 4,277.26
Purchases of stock-in-trade (traded goods) 21 3,434.19 3,022.74
Changes in inventories of finished goods,stock-in-trade and work-in-progress 22 (166.74) 113.75
Employee benefits expense 23 1,427.65 1,378.98
Finance cost 24 43.29 56.62
Depreciation and amortisation expenses 2, 3 & 282.55 276.53
42
Other expenses 25 2,147.05 1,916.16

Total Expenses 12,987.53 11,042.04

Profit before tax for the year 2,861.16 2,679.14

Tax expense
- Current tax expense 36 740.53 657.28
- Short / (Excess) provision for tax relating to prior years 13.59 (31.00)
- Deferred tax 36 (8.36) 72.70
Total tax expense 745.76 698.98

Profit after tax for the year from Continuing Operations 2,115.40 1,980.16

Profit after tax for the year 2,115.40 1,980.16

Other comprehensive income

(a) Item that will not be reclassified subsequently to profit and loss
- Remeasurement of defined benefit liability 28 (7.30) (6.66)
(b) Income tax related to items that will not be reclassified to profit and loss 1.84 1.68
Total other comprehensive income (5.46) (4.98)

Total comprehensive income 2,109.94 1,975.18

Earnings per equity share (nominal value per share Rs. 10 each)
Basic & diluted (in Rs.) 32 93.76 87.77

See accompanying notes forming part of the financial statements 1 to 47

In terms of our report attached

For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants
Kunal Thakore Vinayak Padwal Jerry Andersson
Jayesh Parmar Chairman Director Managing Director
Partner (DIN 06462999) (DIN 00198772) (DIN 08015237)
(Membership No. 106388) Date : 28th July, 2021 Date : 28th July, 2021 Date : 28th July, 2021
UDIN : 21106388AAAACO5502 Place : Mumbai Place : Mumbai Place : Mumbai

Date : 28th July, 2021 Shrikant Jog Ashish Jain

Place : Mumbai Chief Financial Officer Company Secretary & Manager Finance
Date : 28th July, 2021 Date : 28th July, 2021
Place : Mumbai Place : Mumbai

United. Inspired.
Annual Report 2021 32

Epiroc Mining India Limited

Cash Flow Statement for the year ended 31st March, 2021

Year ended 31st March, 2021 Year ended 31st March, 2020
Rs. Millions Rs. Millions Rs. Millions Rs. Millions
A CASH FLOW FROM OPERATING ACTIVITIES
Profit before tax for the year 2,861.16 2,679.14
Adjustment for:
Depreciation and amortisation other than depreciation on right 205.29 192.74
on use assets
Depreciation on right of use assets 77.26 83.79
Write off of Property, Plant & Equipment 6.92 3.14
Unrealised foreign exchange (gain) / loss (66.03) (34.10)
Dividend Income (83.27) (74.90)
Finance cost other than Interest on Lease Liability 18.22 25.85
Interest on lease liability 25.07 30.77
(Gain)/Loss on disposal property, plant and equipment - (16.31)
Expense recognised in respect of equity settled share based 34.78 8.63
payments
Actuarial gain / (loss) on employee benefits reclassified to (5.46) (4.98)
Other Comprehensive Income (OCI)
Expected Credit Loss and Provision on trade receivables 47.02 (18.71)
Net (Gain)/loss on financial assets designated through 6.04 -
profit or loss
Fair Value Gain on financial assets (15.32) -
250.52 195.92
Operating profit before movements in Working Capital 3,111.68 2,875.06
changes

Adjustments for changes in Working capital

Adjustments for (increase) / decrease in operating assets:
Inventories (1,253.78) 21.12
Trade Receivables (795.89) 362.00
Current Assets (218.74) 169.01
Other Current financial assets 16.68 0.67
Other Non-Current financial assets (2.15) (9.70)
Other Non-Current assets (9.32) (69.93)

Adjustments for increase / (decrease) in operating liabilities:

Trade Payables 763.51 (221.95)
Non-Current provisions (38.08) 63.19
Current provisions (106.87) (103.70)
Other current financial liabilities 3.25 (1.67)
Other current non-financial liabilities 273.28 (107.37)
(1,368.11) 101.65

Cash generated by operations 1,743.57 2,976.72

Income taxes paid (762.84) (757.82)
Annual Report 2021 33

Epiroc Mining India Limited

Cash Flow Statement for the year ended 31st March, 2021

Year ended 31st March, 2021 Year ended 31st March, 2020
Rs. Millions Rs. Millions Rs. Millions Rs. Millions
Net Cash from Operating activities 980.73 2,218.89
B CASH FLOW FROM INVESTING ACTIVITIES
Dividend received 76.58 74.90
Payment for property, plant and equipment (216.37) (300.88)
Proceeds from sale of property, plant and equipment 0.69 188.34
Purchase of investments (9,136.67) (10,316.04)
Proceeds from sale of investments 9,994.59 9,545.00
Net Cash from/used in investing activities 718.82 (808.68)

C CASH FLOW FROM FINANCING ACTIVITIES

Dividend paid during the year (1,692.12) (1,359.96)
Repayment of lease liability (69.48) (70.63)
Finance cost (43.29) (56.62)
Net Cash used in financing activities (1,804.89) (1,487.21)

D UNREALISED EXCHANGE GAIN / (LOSS) IN CASH AND CASH (1.15) 8.53

EQUIVALENTS

E NET DECREASE IN CASH AND CASH EQUIVALENTS (106.49) (68.47)

Cash and Cash Equivalents (Opening balance) 161.71 230.18
Cash and Cash Equivalents (Closing balance) 55.22 161.71

Notes :
1 Figures in brackets represent outflows of cash and bank balances.
2 Cash and Cash Equivalents comprise of :

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

Cash and Cash Equivalents - Refer Note 10
Rs. Million Rs. Million

Cash on hand - 0.02

Bank Balance:
In Current Accounts 49.29 118.24

Exchange Earners Foreign Currency Accounts 5.93 43.45

55.22 161.71

In terms of our report attached

For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants
Kunal Thakore Vinayak Padwal Jerry Andersson
Jayesh Parmar Chairman Director Managing Director
Partner (DIN 06462999) (DIN 00198772) (DIN 08015237)
(Membership No. 106388) Date : 28th July, 2021 Date : 28th July, 2021 Date : 28th July, 2021
UDIN : 21106388AAAACO5502 Place : Mumbai Place : Mumbai Place : Mumbai

Date : 28th July, 2021 Shrikant Jog Ashish Jain

Place : Mumbai Chief Financial Officer Company Secretary & Manager Finance
Date : 28th July, 2021 Date : 28th July, 2021
Place : Mumbai Place : Mumbai

United. Inspired.
 Epiroc Mining India Limited
Statement of Changes in Equity for the year ended as at 31st March 2021
A. Changes in Equity
Particulars For the year ended For the year ended
31st March, 2021 31st March, 2020
Annual Report 2021

Rs. Million Rs. Million

Opening balance as on 1st April, 2020 225.62 225.62
Balance as at the end of the year 225.62 225.62

B. Changes in Other Equity Rs. Million
Particulars Capital Other Comprehensive Share Based Retained Total Equity
Reserve Income Payments Earnings
Opening balance as on 01st April, 2019 6,090.57 (11.89) 27.64 2,114.28 8,220.60
Profit for the period - - - 1,980.16 1,980.16
Other comprehensive income for the year, net of income tax - (4.98) - - (4.98)
Dividend( including dividend distribution tax) - - - (1,359.96) (1,359.96)
Recognition of share-based payments - - 8.63 - 8.63
ROU and Lease Liability Adjustment - - - (14.04) (14.04)
Balance as at 31st March,2020 6,090.57 (16.87) 36.27 2,720.44 8,830.41

Opening balance as on 01st April, 2020 6,090.57 (16.87) 36.27 2,720.44 8,830.41
Profit for the period - - - 2,115.40 2,115.40
Other comprehensive income for the year, net of income tax - (5.46) - - (5.46)
Dividend( including dividend distribution tax) - - - (1,692.12) (1,692.12)
Recognition of share-based payments - - 34.78 - 34.78
Balance as at 31st March,2021 6,090.57 (22.33) 71.05 3,143.72 9,283.01

In terms of our report attached

For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants
Kunal Thakore Vinayak Padwal Jerry Andersson
Jayesh Parmar Chairman Director Managing Director
Partner (DIN 06462999) (DIN 00198772) (DIN 08015237)
(Membership No. 106388) Date : 28th July, 2021 Date : 28th July, 2021 Date : 28th July, 2021
UDIN : 21106388AAAACO5502 Place : Mumbai Place : Mumbai Place : Mumbai

Date : 28th July, 2021 Shrikant Jog Ashish Jain

Place : Mumbai Chief Financial Officer Company Secretary & Manager Finance
Date : 28th July, 2021 Date : 28th July, 2021
Place : Mumbai Place : Mumbai
34
Annual Report 2021 35

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Corporate Information
Epiroc Mining India Limited (‘the Company’) was incorporated on 20th July 2017 in India. It is a subsidiary of Epiroc Rock
Drills AB, Sweden, part of Epiroc Group, Sweden. The Epiroc Group is into manufacturing of mining and construction
equipment.
Epiroc Mining India Limited has an extensive presence in India with two manufacturing locations, a design-engineering
centre and sales offices across all major cities in India.
Atlas Copco (India) Limited and Epiroc Mining India Limited under a scheme of arrangement between them, vide
National Company Law Tribunal’s order CSP No. 976 of 2017 dated 30th November, 2017, demerged Mining and Rock
Excavation (including Civil Construction) business in Epiroc Mining India Limited with effect from close of business
hours on 30th November 2017.
Epiroc Rock Drills AB, Sweden holds 96.32% of equity share capital and the remaining is held by minority shareholders.
The financial statements are for the period from 01st April 2020 to 31st March 2021 and the same are approved by the
Board of Directors and authorized for issue on 28th July, 2021.

1. Significant accounting policies:

1.1. Statement of Compliance:

These financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS)
prescribed under Section 133 of the Companies Act, 2013 (“the Act”) read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.

1.2. Basis for preparation of financial statements:

These financial statements have been prepared on the historical cost basis, except for certain financial
instruments which are measured at fair values at the end of each reporting period, as explained in the accounting
policies below. Historical cost is generally based on their value of the consideration given in exchange for
goods and services.

In estimating the fair value of an asset or liability, the company takes into account the characteristics of the
asset or liability if market participants would take those characteristics into account when pricing the asset or
liability at the measurement date. Fair value for measurement and / or disclosure purpose in these financials
statements is determined on such a basis, except for leasing transactions that are within the scope of Ind AS 17
Leases, and measurements that have some similarities to fair value but are not fair value, such as value in use
in Ind AS 36 Impairment of Assets.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based
on the degree to which the inputs to the fair value measurements are observable and the significance of the
inputs to the fair value measurement in its entirety, which are described as follows:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date;

Level 2 inputs are, inputs other than quoted prices included within Level 1, that are observable for the asset or
liability, either directly or indirectly; and

Level 3 inputs are not based on observable market data (unobservable inputs) Fair values are determined
in whole or in part using a valuation model based on assumptions that are neither supported by prices from
observable current market transactions in the same instrument nor are they based on available market data.

United. Inspired.
Annual Report 2021 36

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

1.3. Use of Estimates:

The preparation of financial statements requires the management of the company to make estimates and
assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial
statements, disclosure of contingent liabilities as at the date of the financial statements, and the reported
amounts of income and expenses during the reported period. Estimated and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the
estimates are revised and future periods are affected.

Critical accounting estimates

i) Income taxes

Significant judgements are involved in determining the provision for income taxes, including amount
expected to be paid / recovered for uncertain tax positions. The policy for the same has been explained
under Note 1.12.

ii) Useful lives of property, plant and equipment and intangible assets

The Company reviews the estimated useful lives of property, plant and equipment and intangible assets
at the end of each reporting period. During the currently year, the directors have determined that no
changes are required to the useful lives of assets. The policy for the same has been explained under
Note 1.4 & 1.5.

iii) Discount rate - defined benefit obligation

The Company’s defined benefit obligation is discounted at a rate set by reference to market yields at
the end of the reporting period on high quality corporate bonds. Significant judgement is required when
setting the criteria for bonds to be included in the population from which the yield curve is derived. The
most significant criteria considered for the selection of bonds include the issue size of the government
bonds, quality of the bonds and the identification of outliers which are excluded.

iv) Product warranty expenses

The estimated liability for product warranties is accounted when products are sold. These estimates are
established using historical information on the nature, frequency and average cost of warranty claims
and management estimates regarding possible future incidence based on corrective actions on product
failures.

v) Valuation of deferred tax balances

The Company reviews the carrying amount of deferred tax balances at the end of each reporting period.
The policy for the same has been explained under Note 1.13.

vi) Provisions and contingent liabilities

A provision is recognized when the Company has a present obligation as a result of a past event and it
is probable that an outflow of resources will be required to settle the obligation, in respect of which the
reliable estimate can be made. Provisions (excluding retirement benefits and compensated absences)
are not discounted. These are reviewed at each balance sheet date adjusted to reflect the current best
estimates. Contingent liabilities are not recognized in the financial statements. A contingent asset is
neither recognized nor disclosed in the financial statements.
Annual Report 2021 37

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

1.4. Property, Plant & Equipment

Property Plant and Equipment (PPE) are stated at cost of acquisition or construction where cost includes amount
added/deducted on revaluation less accumulated depreciation / amortization and impairment loss, if any.
Cost of an item of Property, plant and equipment comprises purchase price, import duties and any cost directly
attributable to bringing the assets to the location and condition for use. The cost also includes dismantlement
and removal of the asset in the future if applicable. The cost of replacing a part of an item of property, plant and
equipment is recognized in the carrying amount of the item of property, plant and equipment, if it is probable
that the future economic benefits embodies within the part will flow to the Company and its cost can be
measured reliably with the carrying amount of the replaced part getting derecognized. The cost for day-to-day
servicing of property, plant and equipment are recognized in Statement of profit and loss as and when incurred.

Capital work-in-progress for production, supply of administrative purposes is carried at cost less accumulated
impairment loss, if any, until construction and installation are complete and the asset is ready for its intended
use.

Depreciation is calculated on straight-line method as per the useful life prescribed in Schedule II to the
Companies Act, 2013 except in respect of the following categories of assets, in whose case the life of the
assets has been assessed as under based on technical advice from experts, taking into account the nature of
the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement,
anticipated technological changes, manufacturers warranties and maintenance support, etc.:

i) General Plant and machinery – 4 to 10 years

ii) Vehicles – 5 years

iii) Furniture and Fixtures – 6 years

iv) Assets given on operating lease – 2 to 4 years

v) Factory Building – 25 years

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting
period, with the effect of any changes in estimate accounted for on a prospective basis.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits
are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement
of an item of property, plant and equipment, determined as the difference between the sales proceeds and the
carrying amount of the asset, is recognized in the Statement of profit or loss.

1.5. Intangible Assets

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated
amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their
estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each
reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

Following summarizes the nature of intangible and the estimated useful life:

(a) Software Costs - 3 years

An intangible asset is derecognized on disposal or when no future economic benefits are expected
from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the
difference between the net disposal proceeds and the carrying amount of the asset, and are recognized
in the Statement of profit or loss when the asset is derecognized.

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Annual Report 2021 38

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

1.6. Impairment

(i) Financial assets (other than at fair value)

The Company assesses at each date of balance sheet whether a financial asset or a group of financial
assets is impaired.

Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Company
performs credit assessment for customers on an annual basis. Company recognizes credit risk, on the
basis of lifetime expected losses and where receivables are due for more than one year.

For all other financial assets, expected credit losses are measured at an amount equal to the 12 month
expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on
the financial asset has increased significantly since initial recognition.

(ii) Non-Financial Assets

Property Plant and Equipment and Intangible assets

Property, plant and equipment and intangible assets with a finite life are evaluated for recoverability
whenever there is any indication that their carrying amounts may not be recoverable. If any such
indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-
use) is determined on an individual asset basis unless the asset does not generate cash flows that are
largely independent of those from other assets. In such cases, the recoverable amount is determined for
the cash generating unit (CGU) to which the asset belongs.

If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is
recognised in the statement of profit and loss.

1.7. Leasing arrangement:

Company as a lessee:

The Company’s lease assets primarily consist of leases for store premises. The Company assesses whether a
contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys
the right to control the use of an identified asset for a period of time in exchange for consideration.

To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses
whether:

(i) the contract involves the use of an identified asset;

(ii) the Company has substantially all of the economic benefits from use of the asset through the period of
the lease and;

(iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a
corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of
twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the
Company recognizes the lease payments as an operating expense.

Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease
term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be
exercised.
Annual Report 2021 39

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

The right of use assets are initially recognised at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the commencement of the lease as on transition date. They
are subsequently measured at cost less accumulated depreciation and impairment losses.

Right of use assets are depreciated from the commencement date on a straight line basis over the shorter of
the lease term and useful life of underlying assets and tested for impairment in accordance with IND AS 36.
Refer Note 1.6 above.

The lease liability is initially measured at amortized cost at the present value of the future lease payments.
The lease payments are discounted using the incremental borrowing rates. Lease liabilities are re-measured
with a corresponding adjustment to the related right of use asset if there are significant modifications to lease
agreements. Lease liability and right to use asset have been separately presented in the Balance Sheet and
lease payments have been classified as financing cash flows.

Company as a Lessor:

The Company enters into lease agreements as a lessor with respect to rent equipment to customers. Leases for
which the Company is a lessor are classified as operating lease, where the terms of the lease is not to transfer
substantially all the risks and rewards of ownership to the lessee.

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.

1.8. Revenue recognition:

The Company has applied Ind AS 115 which establishes a comprehensive framework for determining whether,
how much and when revenue is to be recognised.

● Revenue from the sale of goods is recognised at the point in time when control is transferred to the
customer.

The Company recognises revenue in the gross amount of consideration when it is acting as a principal
and at net amount of consideration when it is acting as an agent. Revenue is measured based on the
transaction price, which is the consideration, adjusted for volume discounts, performance bonuses,
price concessions and incentives, if any, as specified in the contract with the customer. Revenue also
excludes taxes collected from customers.

● The Company’s contracts with customers could include promises to transfer multiple products and
services to a customer.

The Company assesses the products / services promised in a contract and identifies distinct
performance obligations in the contract. Identification of distinct performance obligation involves
judgement to determine the deliverables and the ability of the customer to benefit independently from
such deliverables.

● Judgement is also required to determine the transaction price for the contract. The transaction price
is a fixed amount of customer consideration with elements such as volume discounts, service level
credits, performance bonuses, price concessions and incentives. The transaction price is also adjusted
for the effects of the time value of money if the contract includes a significant financing component. Any
consideration payable to the customer is adjusted to the transaction price, unless it is a payment for a
distinct product or service from the customer.

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Annual Report 2021 40

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

● The Company uses judgement to determine an appropriate standalone selling price for a performance
obligation. The Company allocates the transaction price to each performance obligation on the basis of
the relative stand-alone selling price of each distinct product or service promised in the contract. Where
standalone selling price is not observable, the Company uses the expected cost plus margin approach
to allocate the transaction price to each distinct performance obligation.

● The Company exercises judgement 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.

Export of goods

Export revenue is recognised when the control for goods is transferred have passed with respect to the revenue.
Conditions enumerated above in ‘sale of goods’ section relating to recognition of sale are also followed in
export of goods as well. The revenue is recognised based on delivery terms as per the terms of sale agreed
with the buyer.

Rendering of services

Revenue from services is recognized as and when the services are rendered and the related costs are incurred.

Revenue from Rental Equipment

Revenues from rental of equipment are recognized on a straight line basis over the lease period.

Interest income

Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to
the company and the amount of income can be measured reliably. Interest Income is accrued on a time basis,
by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that
exactly discounts estimated future cash receipts through the expected life of the financial asset’s net carrying
amount on initial recognition.

Dividend Income

Dividend income is recognised when the right to receive it is established.

Export benefits

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in
receiving the same.

1.9. Foreign currency :

The financial statements are presented in Indian rupees, which is the functional currency of the Company.

Foreign currency transactions are recorded at exchange rates prevailing on the date of the transaction. Foreign
currency denominated monetary assets and liabilities are restated into the functional currency using exchange
rates prevailing on the dates of Balance Sheet. Gains and losses arising on settlement and restatement of
foreign currency denominated monetary assets and liabilities are included in the Statement of profit or loss.

Non- monetary assets and liabilities denominated in a foreign currency are translated using the exchange rate
prevailing at the date of initial recognition (in case measured at historical cost) or at the rate prevailing at the
date when the fair values determined (in case measured at fair value).
Annual Report 2021 41

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Foreign exchange differences are recognized in the Statement of profit or loss in the period in which they arise
except for exchange difference on foreign currency borrowings relating to assets under construction for future
productive use, which are included in the cost of those assets when they are regarded as an adjustment to
interest cost on those foreign currency borrowings.

1.10. Financial Instruments:

Financial assets and liabilities are recognized when the Company becomes a party to the contractual provisions
of the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial
assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value
measured on initial recognition of financial asset or financial liability, as appropriate. Transaction costs directly
attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are
recognized immediately in the Statement of profit or loss.

Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts
of cash that are subject to an insignificant risk of change in value and having original maturities of three months
or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with
banks which are unrestricted for withdrawal and usage.

Financial assets at amortized cost

Financial assets are subsequently measured at amortized cost if these financial assets are held within a business
whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of
the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.

Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss unless it is measured at amortized cost or at
fair value through other comprehensive income on initial recognition. The transaction costs directly attributable
to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognized
in the Statement of profit or loss.

Financial liabilities

Financial liabilities are measured at amortized cost using the effective interest method.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet if there
is currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net
basis, to realize the assets and settle the liabilities simultaneously.

1.11. Employee Benefits:

i) Short term employee benefits:

A liability is recognized for benefits accruing to employees in respect of wages and salaries in the period
the related service is rendered at the undiscounted amount of the benefit that is expected to be paid in
exchange for that service.

Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted
amount of the benefits expected to be paid in exchange for the related service.

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Annual Report 2021 42

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

ii) Other employee benefits:

The Company provides for compensated absences subject to certain rules. The employees are
entitled to accumulate leave subject to certain limits, for future encashment or availment. The liability is
provided based on the number of days of unavailed leave at each balance sheet date on the basis of an
independent actuarial valuation using the Projected Unit Credit method.

The liability which is not expected to occur within twelve months after the end of the period in which the
employee renders the related services are recognized based on the actuarial valuation as at the balance
sheet date.

A. Defined Contribution Plan

Payments to defined contribution plans are recognized as an expense when the employees have
rendered the service entitling them to the contribution.

Superannuation fund: Certain employees are participants in a defined contribution plan and
are entitled to receive benefits in respect of superannuation fund. The Company has no further
obligations to the Plan beyond its monthly contributions at a specified percentage of employees’
salary depending on the grade of the employee which are invested with the Life Insurance
Corporation of India. The Company recognises such contributions as expense when incurred.
Employees do not make any contributions to the fund.

Provident fund: The employees of the Company are entitled to receive benefits in respect of
provident fund, a defined contribution plan, in which both employees and the Company make
monthly contributions at a specified percentage of the covered employees’ salary (currently 12
percent of employees’ salary). The contributions as specified under the law are made partially to
the provident fund and pension fund administered by the Regional Provident Fund Commissioner.
The Company recognizes such contributions as an expense when incurred.

B. Defined Benefit Plan:

For defined benefit plans, the cost of providing benefits is determined using the projected unit
credit method, with actuarial valuations being carried out at the end of each reporting period. Re-
measurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling
(if applicable) and the return on plan assets (excluding interest), is reflected immediately in the
statement of financial position with a charge or credit recognized in other comprehensive income
in the period in which they occur. Re-measurement recognized in other comprehensive income
is reflected immediately in retained earnings and will not be reclassified to profit or loss. Past
service cost is recognized in the Statement of profit or loss in the period of a plan amendment.
Net interest is calculated by applying the discount rate at the beginning of the period to the net
defined benefit liability or asset. Defined benefit costs are categorized as follows:

● service cost (including current service cost, past service cost, as well as gains and losses
on curtailments and settlements);

● net interest expense or income; and

● re-measurement.
Annual Report 2021 43

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Gratuity: The Company has an obligation towards gratuity, a defined benefit plan covering eligible
employees. The plan provides for a lump sum payment to vested employees at retirement, death
while in employment or on termination of employment of an amount equivalent to 15 days, 22
days or 1 month of salary payable for each completed year of service, depending on the total
period of service rendered by the employee. Vesting occurs upon completion of five years of
service. The Company makes contribution to the fund established as a Gratuity Trust. The present
value of the obligation under such defined benefit plan is determined at each Balance Sheet
date based on an independent actuarial valuation carried at each balance sheet date using
the projected unit credit method. The gratuity plan is funded plan and the Company makes the
contributions to the recognized fund.

C. Share Based Payments

Certain employees of the Company receive remuneration in the form of Stock Options (SOPs) /
Share Appreciation Rights (SARs) given by the ultimate holding company (Epiroc AB, erstwhile
“Atlas Copco AB, Sweden”), for rendering services over a defined vesting period. SOPs / SARs
granted are measured by reference to the fair value of the instrument at the date of grant.

The expense is recognized in the statement of profit and loss with a corresponding increase to
the retained earnings, as a component of other equity. SOPs / SARs generally vest in a graded
manner over the vesting period. The fair value determined at end of each reporting period and at
the date of settlement, with any change in the fair value recognized in the Statement of profit or
loss over the vesting period of the respective tranches of such grants. The stock compensation
expense is determined based on the Company’s estimate of SOPs / SARs that will eventually
vest.

1.12. Taxation:

Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability
during the year. Current and deferred tax are recognized the Statement of profit or loss, except when they relate
to items that are recognized in other comprehensive income or directly in equity, in which case, the current and
deferred tax are also recognized in other comprehensive income or directly in equity, respectively. Income tax
expense represents the sum of the tax currently payable and deferred tax.

Current income tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’
as reported in the statement of profit or loss and other comprehensive income because of items of income or
expense that are taxable or deductible in other years and items that are never taxable or deductible.

The Company’s current tax is calculated using tax rates that have been enacted by the end of the reporting
period.

Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting
advance tax paid and income tax provision arising in the same tax jurisdiction and where the relevant tax paying
unit intends to settle the asset and liability on a net basis.

Deferred income taxes

Deferred tax is recognized using the balance sheet approach. Deferred tax assets and liabilities are recognized
for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their
carrying amount.

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Annual Report 2021 44

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Deferred income tax asset is recognized 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 utilized.

The carrying amount of deferred income 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 income tax asset to be utilized.

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to
taxable income in the years in which the temporary differences are expected to be received or settled.

Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation
authority and the relevant entity intends to settle its current tax assets and liabilities on a net basis.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from
the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying
amount of its assets and liabilities.

1.13. Earnings per Share:

Basic earnings / (loss) per share are calculated by dividing the net profit / (loss) for the period attributable
to equity shareholders by the weighted average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period are adjusted for any bonus shares
issued during the year and also after the balance sheet date but before the date the financial statements are
approved by the Board of Directors.

For the purpose of calculating diluted earnings / (loss) per share, the net profit / (loss) 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.

1.14. Cash flow Statement

The Cash Flow Statement is prepared by the indirect method set out in Ind AS 7 on Cash Flow Statements and
presents cash flows by operating, investing and financing activities of the Company.

1.15. Provision, Contingent Liabilities and Contingent Assets:

A provision is recognised when the Company has a present (legal or constructive) obligation as a result of past
event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which
reliable estimate can be made.

The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

On an ongoing basis, Company reviews pending cases and other contingencies. For contingent losses that are
considered probable, an estimated loss is recorded as an accrual in financial statements. Loss contingencies
that are considered possible are not provided for but disclosed as Contingent liabilities in the financial
statements. Contingencies the likelihood of which is remote are not disclosed in the financial statements.
Gain contingencies are not recognised until the contingency has been resolved and amounts are received or
receivable.
Annual Report 2021 45

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

1.16. Current Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current/non-current classification.
An asset is classified as current when it satisfies any of the following criteria:

- It is expected to be realized or intended to be sold or consumed in normal operating cycle

- It is held primarily for the purpose of trading

- It is expected to be realized within 12 months after the date of reporting period, or

- Cash and cash equivalent unless restricted from being exchanged or used to settle a liability for at least
12 months after reporting period.

Current assets include the current portion of non-current financial assets.

All other assets are classified as non-current.

A liability is current when it satisfies any of the following criteria:

- It is expected to be settled in normal operating cycle

- It is held primarily for the purpose of trading

- It is due to be settled within 12 months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least 12 months after the
reporting period

Current liabilities include the current portion of long term financial liabilities. The Company classifies all other
liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets and their realization in cash and cash
equivalents. The Company has identified 12 months as its operating cycle.

1.17. Inventories

Inventories are valued at the lower of cost and net realisable value.Net realizable value is the estimated selling
price for inventories less all estimated costs of completion necessary to make sale. Costs incurred in bringing
the products to its present location and condition are accounted for as follows:

Raw materials, stores & spare parts and packing materials: cost includes cost of purchase and other costs
incurred in bringing the inventories to their present location and condition. Cost is determined on weighted
average basis.

Finished goods and work in progress: cost includes cost of direct materials and labour and a proportion of
manufacturing overheads based on the normal operating capacity, but excluding borrowing costs. Cost is
determined on weighted average basis.

Net realisable value represents the estimated selling price for inventories less all estimated cost of completion
and costs necessary to make the sale.

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Annual Report 2021 46

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

1.18. Operating cycle

Based on the nature of products / activities of the Company and the normal time period between the acquisition
of assets for processing and their realization in cash and cash equivalents, the Company has determined its
operating cycle as 12 months for purpose of classification of its assets and liabilities as current and non-current.

1.19. Borrowing Cost

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which
are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are
added to the cost of those assets, until such time as the assets are substantially ready for their intended use or
sale.

All other borrowing costs are recognized in the Statement of profit or loss in the period in which they are
incurred.

1.20. Segment Reporting

An operating segment is a component of the entity that engages in the business activities from which it may
earn and incur expenses, whose operating results are regularly reviewed by the entity’s chief operating decision
maker to make decisions about resources to be allocated to the segment and assess its performance, and for
which discrete financial information is available. Epiroc’s management monitors its operations by division which
represents the Group’s operating segment. The operating results of the operating segments are reviewed
regularly by the company’ Chief financing officer and Managing Director, the chief operating decision maker to
make decisions about allocation of resources to the segment and to assess their performance.

1.21. Fair Value Measurement

Fair value is the price that would be received from the sale of 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 an asset or transfer the liability takes place either:

- In the principal market for the asset or liability.

- In the absence of 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.

The 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.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.
Annual Report 2021 47

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:

 Level 1 – Quoted (Unadjusted) Market prices in active markets for incidental assets or liabilities

 Level 2 –Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable

 Level 3 – Valuation Techniques for which the lowest level input that is significant to the fair value measurement
is unobservable.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company
determines whether transfers that have occurred between levels in the hierarchy by re-assessing categorization
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting period.

Determination of Fair Value

1) Financial Assets

The fair value of financial assets is estimated as the present value of future cash flows, discounted at the
market rate of interest at the reporting date. This fair value is determined for disclosure purpose.

2) Non-Derivative financial liabilities

Fair Value, which is determined for disclosure purposes, is calculated based on the present value of
future principal and interest cash flows, discounted at the market rate of interest at the reporting date.

3) Investments in Mutual Funds

The fair value of available mutual funds held for trading is determined with reference to their net asset
value as at the reporting date and is recorded as other income/expense. The Company invests its surplus
funds in mutual funds. These investments have been classified as fair value through the Statement of
profit or loss by the management.

1.22. Share Capital

Ordinary Shares

Ordinary shares are classified as equity. Incremental costs, if any, directly attributable to the issue of ordinary
shares are recognized as a deduction from equity, net of any tax effects.

1.23. Dividend

Dividend on shares is recorded as a liability on the date of approval by the shareholders.

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Annual Report 2021 48

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 2 - Property, plant and equipment

Rs. in Million
Assets given
Furniture
Freehold Plant and Office on Lease -
Particulars Buildings and Total
Land Equipment Equipment Plant and
Fixtures
Machinery
(I) Gross carrying amount
Opening balance 233.30 637.79 1,075.21 46.85 28.02 16.50 2,037.67
Additions during the year - 5.63 192.24 13.07 4.39 94.31 309.63
Disposals during the year - - (117.98) (0.08) - (11.37) (129.42)
Reclassification during the current year - - (70.09) - (0.13) - (70.22)
Balance as at 31st March, 2020 233.30 643.42 1,079.38 59.84 32.28 99.44 2,147.66

(II) Accumulated depreciation and

impairment
Opening balance - (93.66) (409.10) (3.37) (10.93) (13.01) (530.07)
Eliminated on disposals during the year - - (54.06) 0.08 - 11.37 (42.61)
Depreciation expense during the year - - 67.69 - 0.12 - 67.82
Depreciation on reclassification during - (30.42) (128.20) (11.05) (3.12) (13.85) (186.64)
the year
Balance as at 31st March, 2020 - (124.08) (523.67) (14.34) (13.93) (15.49) (691.51)

Net carrying amount as 233.30 519.34 555.71 45.50 18.35 83.95 1,456.15
31st March, 2020 (I+II)

(I) Gross carrying amount

Opening balance 233.30 643.42 1,079.38 59.84 32.28 99.44 2,147.66
Additions during the year* 12.95 33.47 55.18 2.46 2.55 149.40 256.02
Disposals during the year - - (1.48) - - - (1.48)
Reclassification during the current year - - (35.43) - 0.33 35.10 -
Write off during the year - - (19.41) (6.02) (0.27) - (25.70)
Balance as at 31st March, 2021 246.25 676.89 1,078.24 56.29 34.89 283.94 2,376.50

(II) Accumulated depreciation and

impairment
Opening balance - (124.08) (523.67) (14.34) (13.93) (15.49) (691.51)
Eliminated on disposals during the year - - 0.77 - - - 0.77
Write off during the year - - 15.89 2.64 0.23 - 18.76
Depreciation expense during the year - (30.48) (118.29) (10.88) (5.12) (36.65) (201.42)
Depreciation on reclassification during - - 35.43 - (0.33) (35.10) -
the year
Balance as at 31st March, 2021 - (154.56) (589.86) (22.59) (19.15) (87.25) (873.40)

Net carrying amount as at 246.25 522.33 488.38 33.69 15.76 196.70 1,503.10
31st March, 2021 (I+II)

* Refer Note 33 (b)

Capital work in progress
Particulars Rs. in Million
As at 31st March, 2021 3.20
As at 31st March, 2020 -
Annual Report 2021 49

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 3 - Intangible assets

(Other than internally generated) Rs. in Million
Particulars Software Total

(I) Gross carrying amount

Opening balance 40.87 40.87
Additions during the period 0.39 0.39
Disposals during the period (5.45) (5.45)

Balance as at 31st March, 2020 35.81 35.81

(II) Accumulated amortisation and impairment

Opening balance (30.24) (30.24)
Amortisation expense during the year (6.09) (6.09)
Eliminated on disposals during the year 4.71 4.71

Balance as at 31st March, 2020 (31.62) (31.62)

Net carrying amount as at 31st March, 2020 (I+II) 4.19 4.19

(I) Gross carrying amount

Opening balance 35.81 35.81
Additions during the year 3.66 3.66
Write off during the year (1.11) (1.11)

Balance as at 31st March, 2021 38.36 38.36

(II) Accumulated amortisation and impairment

Opening balance (31.62) (31.62)
Amortisation expense during the year (3.87) (3.87)
Write off during the year 1.11 1.11

Balance as at 31st March, 2021 (34.38) (34.38)

Net carrying amount as at 31st March, 2021 (I+II) 3.99 3.99

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Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 4- Other non-current financial asset

(Unsecured ; carried at amortised cost)
Rs. in Million
Particulars As at As at
31st March 2021 31st March 2020
Security deposits 122.43 110.02
(-) Provision for doubtful deposits (31.76) (21.50)
Total 90.67 88.52


Note 4A- Other current financial assets
(Unsecured ; carried at amortised cost)

Security deposits 3.76 2.17
Loans and advances to employees 5.34 23.61
Total 9.10 25.78

Note 5 - Deferred tax asset (net)
The following are the major deferred tax liabilities and assets recognised by the Company and movements
thereon during the current and prior reporting period.

Deferred tax asset/(liability):

Tax effects of items constituting deferred tax asset
Disallowances under section 43B of Income Tax Act, 1961 38.46 33.43
Provision for doubtful debts/ advances 67.35 51.83
ROU and Lease Liability Adjustment 5.27 2.70
Provision for C Form and RVAT - 19.12
Short term Capital Loss on Mutual Fund 1.52 -
Written down value of Fixed Assets 2.92 -
Demerger Expenses 0.13 0.26
115.65 107.34
Tax effects of items constituting deferred tax liability
Fair Value gain on financial asset (3.86) -
Written down value of Fixed Assets - (5.75)
(3.86) (5.75)
Total 111.79 101.59

Opening balance 101.59 172.61

Recognized in other comprehensive income 1.84 1.68
Recognized in statement of profit and loss 8.36 (72.70)
Annual Report 2021 51

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 6 - Other non-current assets (Unsecured)

Rs. in Million
As at As at
Particulars 31st March 2021 31st March 2020
Capital advances - 9.12
Prepaid expenses 10.43 14.99
Loans and advances to employees 5.73 6.11
Lease prepayments
Prepaid lease 0.12 0.12
Balances with government authorities
Customs authorities 39.63 74.25
Excise & service tax authorities 5.73 12.74
Sales tax authorities 142.89 89.02
Income tax authorities (net) 119.77 73.27
Fixed Deposit with Banks against Bank Guarantee 2.00 -
Total 326.30 279.61

Note 6A- Other current assets (Unsecured)
Prepaid expenses 24.62 17.95
Advance to suppliers and others 105.68 80.94
Balances with government authorities
Customs authorities 180.77 221.56
Goods and services tax authorities 363.08 134.96
Total 674.15 455.41

Note 7 - Inventories (lower of cost and net realisable value)

Raw materials and components 2,206.57 1,280.66
Goods in Transit 62.67 85.46
2,269.24 1,366.12
Manufactured components 108.30 112.13
Work-in-progress 116.07 105.86
Finished goods 192.73 182.34
Stock-in-Trade (Acquired for trading) 1,036.67 886.70
Goods in Transit 396.89 212.98
1,433.56 1,099.68
Total 4,119.90 2,866.12

The cost of inventories recognised as an expense includes Rs. 50.73 Million in 2020-21 (Rs. 33.72 Million in 2019-20)
in respect of write-down of 'inventories.
The mode of valuation has been stated in para 1.17 of Accounting Policies.

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Annual Report 2021 52

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 8 - Investments
Rs. in Million
As at As at
Particulars
31st March 2021 31st March 2020
Designated as fair value through profit and loss
Investments in Mutual Funds (Quoted)
Aditya Birla Sunlife Liquid Fund - Direct Daily Dividend - 2,902,650.08
units @ 100.19 each fully paid up - 290.83
(As at 31st March 2020 - 5,483,555.29 units of Rs. 100.24 each fully paid)
Aditya Birla Sunlife Liquid Fund - Money Manager Fund - DD Direct -
3,133,839.53 units @ 100.02 each fully paid up - 313.45
(As at 31st March 2020, Nil units)
Aditya Birla Sunlife Low Duration Fund-1203213.84 units @ 552.07 each
664.26 -
fully paid up( As at 31st March 2020,Nil units)
DSP Liquidity Fund - Direct Daily Dividend - 121153.39 units @ 1000.93
each fully paid up (As at 31st March 2020 - 532,563.99 units @ 1000.99 121.27 533.09
each fully paid up)
DSP Overnight Fund - Direct Gain - 65,529.97 units @ 1068.69 each fully
- 70.03
paid up (As at 31st March 2020, Nil units)
IDFC Cash Fund daily Dividend Direct Plan - 146653.56 units @ 1001.66
each fully paid up (As at 31st March 2020 - 577,777.41 units @ 1001.67 146.90 578.74
each fully paid up)
Nippon India Liquid Fund - Direct Plan Daily Dividend Option - 264,236.53
- 403.95
units @ 1528.74 each fully paid up (As at 31st March 2020 - Nil Units)
Nippon India India Money Market Fund - 354,193.61units @ 1004.06
355.63 -
each fully paid up (As at 31st March 2020 - Nil Units)
ICICI Liquid Fund - DP Daily Dividend - 3,750,585.30 units @ 100.11 each
fully paid up '(As at 31st March 2020 - 5,409,906.11 units of Rs.100.14 each - 375.46
fully paid)
ICICI Money Market Fund- Drt Daily Dividend - 2,246,622.00 units @ 100.14
- 224.98
each fully paid up (As at 31st March 2020, Nil units)
ICICI Saving Fund - 1557915.97 units @ 419.68 each fully paid up
653.84 -
(As at 31st March 2020, Nil units)
Total carrying amount of all investments 1,941.90 2,790.54

Aggregate amount of quoted investments 1,941.90 2,790.54

Annual Report 2021 53

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 9 - Trade Receivables

Rs. in Million
Particulars As at As at
31st March 2021 31st March 2020
(a) Trade receivables considered good- unsecured 3,692.59 2,884.53
Less: Expected credit loss allowance (5.22) (20.11)
(b) Trade receivables which have significant increase in credit risk; 149.17 86.15
Less: Loss allowance (149.17) (86.15)
Total 3,687.37 2,864.42

Notes:
1] Normal credit period allowed by the Company ranges from 30-90 days.
2] Before accepting any new customer, the Group uses an external credit scoring system to assess the potential customer's
credit quality and defines credit limits by customer. Limits and scoring attributed to customers is reviewed once a year.
Of the trade receivables as at 31st March 2021, Rs.1107.08 Million is due from 3 customer (at 31st March 2020, Rs.1027.67
Million is due from 3 customer ). There are 3 customers who represent individually more than 5% of the total balance of
trade receivables.
3] The Company has used practical expedient by computing the expected credit loss allowance for trade receivables
based on a provision matrix. This provision matrix is based on judgement considering past experience. The provision
matrix at the end of reporting period is as follows:
Aging of expected credit loss
0-365 days past due 10.41 15.83
More than 365 days past due 143.98 90.43
Total 154.39 106.26
4] Debtors ageing
Within credit period 272.04 1,883.93
Less than 30 days 1,312.58 382.37
30 to 90 days 1,362.41 336.52
More than 90 days but less than 365 days 756.28 227.47
More than 1 year but less than 2 years 23.23 33.74
More than 2 years but less than 3 years 24.05 90.20
More than 3 years 91.17 16.44
Grand Total 3,841.76 2,970.68

Movement in the allowance for expected credit loss/

loss allowance
Opening balance 106.26 124.28
Movement in the expected credit loss/ loss allowance on trade
(14.89) 16.70
receivables calculated at lifetime expected credit losses
Provision/(Amount recovered) during the year 63.02 (34.73)
Balance at the end of the year 154.39 106.26
The concentration of credit risk is limited due to the fact the customer base is large and unrelated.

5] Trade Receivables include amount receivable from Related Parties. (Refer note 30C)

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Annual Report 2021 54

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 10 - Cash And Cash Equivalents

Rs. in Million

Particulars As at As at
31st March 2021 31st March 2020
(a) Cash on hand - 0.02
(b) Balance with banks in -
Current accounts 49.29 118.24
Exchange earners foreign currency accounts 5.93 43.45

Total 55.22 161.71

Note 11 - Equity share capital

Rs. in Million

As at As at
31st March 2021 31st March 2020
Authorised:
25,000,000 (31st March, 2020: 25,000,000) equity shares of Rs 10 each 250.00 250.00

Issued, subscribed and fully paid-up:

22,561,564 (31st March, 2020: 22,561,564) equity shares of Rs 10 each 225.62 225.62

a. Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting year

As at As at
31st March 2021 31st March 2020
Particulars
Number of Rs. Number of Rs.
Shares Million Shares Million
Shares outstanding at the beginning of the year 2,25,61,564 225.62 2,25,61,564 225.62
Shares outstanding as at 31st March, 2021 2,25,61,564 225.62 2,25,61,564 225.62
Note:
Of the above shares 22,561,654 shares were allotted as fully paid-up pursuant to a contract without payment
being received in cash to all shareholders as on the date of demerger from Atlas Copco India Limited w.e.f. 9th
December,2017

b. Equity shares held by Holding Company

Name of Shareholder Relationship As at 31st March 2021 As at 31st March 2020

Epiroc Rockdrills AB Holding Company 2,17,31,947 2,17,31,947
Annual Report 2021 55

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

c. Rights, preferences and restrictions attached to the shares

The Company has one class of equity shares having a par value of Rs 10/- per share. Each shareholder is eligible
for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive remaining
assets of the Company in proportion of their shareholding after distribution of all preferential amounts.
d. Particulars of shareholders holding more than 5% equity shares in the Company

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

Name of Shareholder Number of Number of
Percentage Percentage
Shares Shares
Epiroc Rockdrills AB, Sweden (Holding Company) 2,17,31,947 96.32% 2,17,31,947 96.32%

Note 12 - Other equity

Rs. in Million
As at As at
Particulars
31st March 2021 31st March 2020
Capital Reserve

Opening balance 6,090.57 6,090.57

Closing balance as at year end 6,090.57 6,090.57

Other comprehensive income

Opening balance (16.87) (11.89)

Other comprehensive income for the year, net of income tax (5.46) (4.98)

Closing balance as at year end (22.33) (16.87)

Shared based payments

Opening balance 36.27 27.64

Share based payments during the year 34.78 8.63

Closing balance as at year end 71.05 36.27

Surplus in the statement of profit and loss

Opening balance 2,720.44 2,114.28

Add: Profit for the year 2,115.40 1,980.16

Less: Dividend( including dividend distribution tax) (1,692.12) (1,359.96)

Less: ROU and Lease Liability Adjustment - (14.04)

Closing balance as at year end 3,143.72 2,720.44

Balance as at 31st March, 2021

9,283.01 8,830.41

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Annual Report 2021 56

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 13 - Non current liabilities: Provisions

Rs. in Million
As at As at
Particulars
31st March 2021 31st March 2020
Provisions for employee benefits
Employee benefits (gratuity) (Refer note 28) 33.36 37.99
Provision others
Long term provisions (Refer note 38) 82.54 115.98
Total 115.90 153.98

Note 13A - Current liabilities: Provisions Rs. in Million

As at As at
Particulars
31st March 2021 31st March 2020
Provisions for employee benefits
Provisions for compensated absences (Refer note 28) 83.64 71.82

Provision others
Provision for warranty (Refer note 38) 57.42 68.75
Other short term provisions (Refer note 38) - 107.36

Total 141.06 247.93

Note 14 -Trade payables

Rs. in Million
As at As at
Particulars
31st March 2021 31st March 2020
Total outstanding dues of micro enterprise and small enterprise
25.42 26.72
(Refer note 35)
Total outstanding dues to creditors other than micro enterprise and small
2,297.22 1,525.51
enterprise
Total 2,322.64 1,552.23

'Trade payables principally comprise amounts outstanding for trade purchases. The average credit period taken for
trade purchases is 82 days in financial year 2020-21.(76 days in financial year 2019-20)

Note 15 - Current liabilities: Other current financial liabilities

Rs. in Million
As at As at
Particulars
31st March 2021 31st March 2020
Payables on purchase of property, plant and equipment 42.65 2.09
Security deposit received 0.10 0.06
Total 42.75 2.14
Annual Report 2021 57

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 16 -Current tax liabilities

Rs. in Million

As at As at
Particulars
31st March 2021 31st March 2020
Current tax liabilities 32.93 -
Total 32.93 -

Note 17 - Other current liabilities

Rs. in Million

As at As at
Particulars
31st March 2021 31st March 2020
Advance from customers 283.53 30.79
Statutory remittances (contribution to provident fund, withholding taxes,
44.27 23.74
profession tax, tax deducted at source etc.)
Total 327.80 54.53

Note 18 - Revenue from operations
Rs. in Million

As at As at
Particulars
31st March 2021 31st March 2020
Revenue from sale of products 12,768.59 10,769.50
Revenue from rendering of services 2,519.75 2,364.52
Other operating revenue (Refer note 18.01) 282.68 401.83
Total 15,571.02 13,535.84

18.01 Breakup of other operating revenue

Rs. in Million

As at As at
Particulars
31st March 2021 31st March 2020
Indent commission 38.28 97.45
Sale of scrap 11.57 8.87
Income from rental of Equipment 54.32 33.81
Export benefits 178.51 261.70
282.68 401.83

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Annual Report 2021 58

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

For the year ended For the year ended

Particulars
31st March 2021 31st March 2020
A. Disaggregation of revenue
(a) Timing of revenue recognition
Point in time 15,571.02 13,535.84

(b) Geographical location

India 9,393.18 8,929.89
Other 6,177.84 4,605.96

(c) Type of contract

Fixed price 15,571.02 13,535.84

B. Contract balances - -

C. Transaction price
Amount of transaction price allocated to performance 15.46 18.37
obligations that are unsatisfied (or partially unsatisfied)

D. Performance obligation: Ordinarily the Company's contract represents a single distinct performance
obligation depending on the supply of goods or services as per the contract.

Note 19 - Other income

Rs. in Million
For the year ended For the year ended
Particulars
31st March 2021 31st March 2020
Dividend income from current investment 83.27 74.90
Other non operating income
Net gain on foreign currency transactions and translation 66.03 34.10
Fair Value gain on financial assets 15.32 -
Profit on sale of property, plant & equipment - 16.31
Miscellaneous income 113.05 60.02
Total 277.67 185.34


Note 20 - Cost of material consumed
Rs. in Million
For the year ended For the year ended
Particulars
31st March 2021 31st March 2020
Opening stock 1,280.66 1,266.03
Add: Purchases 6,745.45 4,291.90
Less: Closing stock (2,206.57) (1,280.66)
Total 5,819.54 4,277.26


Annual Report 2021 59

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 21 - Purchases of stock in trade (traded goods)

Rs. in Million
For the year ended For the year ended
Particulars
31st March 2021 31st March 2020
Purchases of stock in trade 3,434.19 3,022.74
Total 3,434.19 3,022.74

Note 22 - Changes in inventories of finished goods, work-in-progress & stock-in-trade
Rs. in Million
For the year ended For the year ended
Particulars
31st March 2021 31st March 2020
Opening balance
Finished goods 141.48 218.90
Stock-in-trade 945.21 940.86
Work-in-progress 88.20 119.35
Manufactured components 112.13 121.67
Inventory as at 31st March, 2021
Finished goods (192.73) (141.48)
Stock-in-Trade (1,036.67) (945.21)
Work-in-progress (116.07) (88.20)
Manufactured components (108.30) (112.13)
Net (Increase)/Decrease (166.74) 113.75

Note 23 - Employee benefit expenses

Rs. in Million
For the year ended For the year ended
Particulars
31st March 2021 31st March 2020
Salaries, wages and bonus 1,099.02 1,106.81
Contribution to provident and other funds 129.83 134.07
Workmen and staff welfare expenses 164.02 129.46
Share based payments 34.78 8.63
Total 1,427.65 1,378.98

Note 24 - Finance cost
Rs. in Million
For the year ended For the year ended
Particulars
31st March 2021 31st March 2020
Bank charges 11.85 10.88
Interest expense on lease 25.07 30.77
Interest & Penalty 6.37 3.91
Guarantee Fees expenditure (Refer note 30(C)) - 11.06
Total 43.29 56.62

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Annual Report 2021 60

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 25 - Other expenses

Rs. in Million
For the year ended For the year ended
Particulars
31st March 2021 31st March 2020
Stores and tools consumed 104.15 114.60

Power and fuel 69.29 70.89

Rent (including cleaning and maintenance charges) 9.22 9.23

Rent (Laptops) 31.91 36.05

Repairs and maintenance -rented premises 5.27 11.14

Repairs and maintenance -buildings 6.81 5.97

Repairs and maintenance -machinery 16.78 34.55

Repairs and maintenance -others 4.43 5.06

Insurance 18.24 9.18

Rates and taxes 1.10 1.62

Traveling and conveyance expenses 62.75 167.15

Freight, transport and packing 191.42 137.50

Commission 104.26 76.64

Corporate social responsibility expenses (Refer note 44) 10.16 4.04

Legal and professional fees 156.46 139.40

Audit fees (Refer note 26) 4.11 3.27

Bad trade receivables/advances 18.58 27.93

Provision for trade receivable and expected credit loss 47.02 -

Provision for sales tax liability 56.03 47.69

Royalty (Refer note 30(b)) 286.27 258.48

Software development expenses 130.96 123.40

Security services 15.80 15.74

Expenses on service jobs 35.99 47.42

Conference and training costs 17.60 54.69

External workforce and sundry services 609.71 407.37

Miscellaneous expenses 132.72 107.12

Total 2,147.05 1,916.16

Annual Report 2021 61

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 26 - Payment to auditors (Net of goods and service tax)

Rs. in Million
For the year ended For the year ended
Particulars
31st March 2021 31st March 2020
To Statutory Auditors
Audit fees 1.80 1.78
Audit fees for group reporting 0.97 0.95
Tax audit fees 0.42 0.40
Other taxation services 0.92 0.15
Total 4.11 3.27

Note 27- The net exchange differences arising during the period
Rs. in Million
For the year ended For the year ended
Particulars
31st March 2021 31st March 2020
Recognised appropriately in the Statement of Profit and Loss (66.03) (34.10)
Adjusted in carrying amount of Property Plant and Equipment - -

Note 28- Employee benefits

(A) Defined contribution plans
The Company has recognised the following amounts in the Statement of Profit and Loss

As at As at
Particulars
31st March, 2021 31st March, 2020
Contribution to Employees' Superannuation Fund 22.24 22.76
Contribution to Provident Fund 54.54 52.10

(B) Defined benefit plans

Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees
who are in continuous service for a period of 5 years or more are eligible for gratuity. The amount of
gratuity payable on retirement/termination is the employee's last drawn basic salary per month computed
proportionately for 15 days, 22 days or the full month's salary (depending on the total years of service) multiplied
for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to
recognised funds in India. The Company does not fully fund the liability and maintains a target level of funding
to be maintained over a period of time based on estimations of expected gratuity payments.

The amounts recognised in the balance sheet and the movements in the net defined benefit obligation over
the period are as follows:

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Annual Report 2021 62

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

i) Reconciliation of benefit obligation

Rs. in Million
As at As at
Particulars
31st March, 2021 31st March, 2020
Opening balance 330.55 319.60
Current service cost 27.26 25.10
Past Service Cost - -
Employer Contributions - -
Interest expense/(income) 20.92 22.84
Benefit payments from plan assets (22.29) (20.13)
Benefit payments from employer (2.64) (17.12)
Settlement payments from plan assets - -
Increase (decrease) due to effect of any business combination, - -
divestures, transfers*
Remeasurement - -
(Gain)/loss from change in demographic assumptions - 0.51
(Gain)/loss from change in financial assumptions 8.95 (7.96)
(Gain)/loss from change in experience adjustments 2.99 7.70
Present Value of Defined Benefit Obligations as on 365.75 330.55
March 31, 2021

ii) Reconciliation of fair value of plan assets

Rs. in Million

As at As at
Particulars
31st March, 2021 31st March, 2020
Opening balance 292.57 295.38
Interest income 20.11 22.31
Employer contribution 37.37 1.41
Employer direct benefit payments 2.64 17.12
Benefit payments from plan assets (22.29) (20.13)
Benefit payments from employer (2.64) (17.12)
Settlement payments from plan assets - -
Increase (decrease) due to effect of any business combination, - -
divestures, transfers*
Return on assets (excluding interest income) 4.64 (6.40)
Fair Value of Plan Assets as on March 31, 2021 332.40 292.57
Annual Report 2021 63

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

iia) Composition of Plan Assets*

Rs. in Million
As at As at
Particulars
31st March, 2021 31st March, 2020

Group Gratuity Cash Accumulation Policy No 709003225 in Life

332.40 292.57
Insurance Company of India

Fair Value of Plan Assets as on March 31, 2021

332.40 292.57

since the plan assets are invested by insurance company break-up of the invested amount is not available
*
with the company

iii) Amount to be recognized in Balance Sheet
Present value of funded obligations 365.75 330.55
Fair value of plan assets 332.40 292.57
Amount to be recognized in Balance Sheet 33.35 37.98

iv) Expenses recognised in the Statement of Profit and Loss under the head employee benefits expense
Rs. in Million
For the year ended For the year ended
Particulars
31st March, 2021 31st March, 2020
Current Service Cost 27.26 25.10
Interest Cost 20.92 22.84
Interest Income (20.11) (22.31)
Expenses recognized in statement of profit and loss 28.07 25.63

v) Remeasurement for the period & amount recognised in statement of Other Comprehensive Income
(OCI)
Rs. in Million
For the year ended For the year ended
Particulars
31st March, 2021 31st March, 2020
(Gain)/loss from change in Demographic adjustments - 0.51
(Gain)/loss from change in Financial assumptions 8.95 (7.96)
(Gain)/loss from change in experience assumptions 2.99 7.70
Return on assets (excluding interest income) (4.64) 6.40
Expenses recognized in statement of profit and loss 7.30 6.65

Valuation in respect of Gratuity has been carried out by independent actuary, as at the Balance Sheet date,
based on the following assumptions:

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Annual Report 2021 64

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

For the year ended For the year ended

Particulars
31st March, 2021 31st March, 2020

Discount rate 6.40% 6.70%

Salary escalation 8.00% 8.00%
Rate of return on plan assets 6.40% 6.70%

(a) The discount rate is based on the prevailing market yields of Indian Government securities as at the
balance sheet date for the estimated terms of the obligations.
(b) Salary escalation rate: The estimates of future salary increases considered taking into the account the
inflation, seniority, promotion and other relevant factors.
(c) Disclosure related to indication of effect of the defined benefit plan on the entity’s future cash flows:

Expected benefit payments for the year ending:
Rs. in Million
As at
Particulars
31st March, 2021
31st March 2021 -
31st March 2022 30.04
31st March 2023 27.52
31st March 2024 38.81
31st March 2025 39.76
31st March 2026 35.09
31st March 2027 to 2031 283.40

Sensitivity analysis for significant assumptions are as follows:
As at As at
Particulars
31st March, 2021 31st March, 2020
Increase/(decrease) in present value of defined benefit obligation
as at the end of the period
(i) 0.5% increase in discount rate 351.03 317.70
(ii) 0.5% decrease in discount rate 381.55 344.34
(iii) 0.5% increase in rate of salary escalation 380.35 343.31
(iv) 0.5% decrease in rate of salary escalation 351.99 318.53

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions
constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.
When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same
method (present value of the defined benefit obligation calculated with the projected unit credit method at the
end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the
balance sheet.

These plans typically expose the group to actuarial risk such as: Investment risk, Interest rate risk, longevity risk
and salary risk.
Annual Report 2021 65

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Description of Plan Characteristics and Associated Risks

The Gratuity scheme is a final salary Defined Benefit Plan that provides for a lump sum payment made on exit
either by way of retirement, death, disability or voluntary withdrawal. The benefits are defined on the basis of
final salary and the period of service and paid as lump sum at exit. The Plan design means the risks commonly
affecting the liabilities and the financials results are expected to be;

Investment Risk

The present value of the defined benefit plan liability (denominated in Indian Rupee) is calculated using a
discount rate which is determined by reference to market yields at the end of the reporting period on government
bonds. For other defined benefit plans, the discount rate is determined by reference to market yields at the end
of reporting period on high quality corporate bonds when there is a deep market for such bonds; if the return
on planned asset is below this rate, it will create a planned deficit. Currently, for the plan in India, it has relatively
balanced mixed of investment in government securities, and other debt instruments. Further, the overseas
plan has a relatively balanced investment in equity securities, debt instruments and real estate due to the long
term nature of plan liabilities, the board of overseas fund considers it appropriate that reasonable portion of the
plan assets should be invested in equity securities and in real estate to leverage the return generated by the
fund.

Interest Risk

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an
increase in the return on the plans debt investments.

Longevity Risk

"The present value of the defined benefit plan liability is calculated by reference to the best estimate of the
mortality of plan participants both during and after their employment. An increase in the life expectancy of the
plan participants will increase the plans liability.

Salary Risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plans liability.

Demographic Risk

As the plan is open to new entrants, an increase in membership will increase the defined benefit obligation.
Also, the plan only provides benefits upon completion of a vesting criteria. Therefore, if turnover rates increase
then the liability will tend to fall as fewer employees reach vesting period.

Possible reasons for Actuarial Gains or Losses on Plan Liabilities

1) If the actual attrition, retirement or mortality experience turns out to be higher or lower than expected
based on the assumptions made at the start of the accounting period, it would lead to an Actuarial Gain
or Loss on Plan Liabilities.

2) If the salary increases are higher or lower than expected based on the assumption made at start of the
accounting period, it would lead to an Actuarial Gain or Loss on Plan Liabilities.

3) If the actuarial assumptions of salary increase, attrition rate and discount rate change from one valuation
year to another, it may lead to Actuarial Gain or Loss on Plan Liabilities.

4) Any significant changes in the demographic profile may also lead to Actuarial Gain or Loss on Plan
Liabilities such as a large growth of the employee count from new joinees.

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Annual Report 2021 66

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Possible reasons for experience Gains or Losses on Plan Assets:

Return on plan assets greater/(lessor) than discount rate. For example, if the discount rate was 8% and the fund
actually earned 7% it would result in an actuarial loss on assets.

Contributions expected to be paid to the plan during the next financial year Rs. 30.04 Million (For FY 2019-20 Rs
36.74 Million)

(C) Compensated Absences

Compensated Absences charged to Statement of Profit and Loss Rs. 34.99 Million (FY 2019-20 Rs 24.65 Million)
for the period ended 31 March 2021 and liability as at 31 March, 2021 was Rs.83.64 Million (FY 2019-20 Rs 71.82
Million)

Note 29 - Segment information

Information reported to the Chief Operating Decision Maker (CODM) for the purposes of resource allocation and
assessment of segment performance focuses only on one business segment i.e. Mining and rock excavation division
There are no other reportable segments.
Following is break-up of revenue of the Mining and rock excavation division in India and Overseas: -

India Outside India Total

Particulars
Rs. in Million Rs. in Million Rs. in Million
Segment revenue by geographical area based on
geographical location of customers (including sales, services
& other operating revenue)
For the year 2020-21 9,393.18 6,177.84 15,571.02
For the year 2019-20 8,929.88 4,605.96 13,535.84
Note: The Company's operating facilities are located in India.

Breakup of segment revenue outside India is as follows: Rs. in Million

For the year ended For the year ended

Country
31st March, 2021 31st March, 2020
Sweden 1,573.93 1,098.96
South Africa 732.08 745.13
Russia 499.41 456.56
United state of America 497.76 694.76
Mexico 47.74 262.47
China 359.63 212.45
Indonesia 99.70 161.82
Ukraine 136.17 145.40
Switzerland 139.51 104.58
Australia 318.55 99.78
Thailand 90.93 44.20
South Korea 44.27 30.32
Hongkong 268.15 72.43
Others 1,369.99 477.10
Total 6,177.84 4,605.96
Annual Report 2021 67

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 30 - RELATED PARTY DISCLOSURES

NOTE 30 (a) - NAME OF THE RELATED PARTY AND NATURE OF RELATIONSHIP WHERE CONTROL EXISTS
(i) Where Control Exists

Particulars Entity name Country

Ultimate Holding Company Epiroc AB Sweden
Holding Company Epiroc Rock Drills AB Sweden

(ii) Other parties with whom there were transactions during the year, Common control Fellow Subsidiaries

Sr. No. Entity Name Country

1 ProReman Pty Ltd Australia

2 Secoroc Ghana Ltd. Ghana

3 Anbaufrasen PC GmbH Germany

4 Construction Tools GmbH Germany

5 Construction Tools PC AB Sweden

6 Epiroc (Nanjing) Construction and Mining Equipment Co., Ltd China

7 Epiroc (Thailand) Ltd Thailand

8 Epiroc Argentina SA Argentina

9 Epiroc Armenia LLC Armenia

10 Epiroc Australia Pty Ltd Australia

11 Epiroc BH DOO Bosnia and Herzegovina

12 Epiroc Bolivia SA Bolivia

13 Epiroc Brasil Brazil

14 Epiroc Bulgaria Eood Bulgaria

15 Epiroc Burkina Faso SARL Burkina Faso

16 Epiroc Canada Inc. Canada

17 Epiroc Central America S.A. Panama

18 Epiroc Central Asia LLP Kazakhstan

19 Epiroc Chile SAC Chile

20 Epiroc Colombia S.A.S Columbia

21 Epiroc Czech Republic SRO Czech Republic

22 Epiroc Deutschland Gmbh Germany

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Annual Report 2021 68

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Sr. No. Entity Name Country

23 Epiroc DRC SARL Democratic Republic of the Congo

24 Epiroc Drilling Solutions LLC USA

25 Epiroc Drilling Tools AB Sweden

26 Epiroc Drilling Tools LLC "USA

27 Epiroc Eastern Africa Limited Kenya

28 Epiroc Ecuador S.A. Ecuador

29 Epiroc Financial Solutions AB Sweden

30 Epiroc Finland Oy Ab Finland

31 Epiroc France S.A.S France

32 Epiroc Hellas SA Greece

33 Epiroc Hong Kong Limited Hong Kong

34 Epiroc Italia S.r.L Italy

35 Epiroc Japan KK Japan

36 Epiroc Korea Ltd Korea

37 Epiroc Makina AS Turkey

38 Epiroc Mali SARL Mali

39 Epiroc Maroc SARL Moroco

40 Epiroc México, S.A. de C. V. Mexico

41 Epiroc Meyco AG Switzerland

42 Epiroc Middle East FZE UAE

43 Epiroc Mineria e Ingenieria Civil Espana S.L Spain

44 Epiroc Mining and Construction Technique FE LLP Uzbekistan

45 Epiroc Mongolia LLC Mongolia

46 Epiroc Österreich GmbH Austria

47 Epiroc Peru Sociedad Anonima Peru

48 Epiroc Philippines Inc. Philippines

49 Epiroc Rus LLC Russia

50 Epiroc South Africa Pty Ltd South Africa

Annual Report 2021 69

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Sr. No. Entity Name Country

51 Epiroc Srbija AD Serbia

52 Epiroc Stonetec Srl Italy

53 Epiroc Sweden AB Sweden

54 Epiroc Tanzania Tanzania

55 Epiroc Trading Co Ltd China

56 Epiroc Uk And Ireland Limited Great Britain

57 Epiroc Ukraine LLC Ukraine

58 Epiroc USA LLC USA

59 Epiroc Zambia Limited Zambia

60 Epiroc Zhangjiakou Construction and Mining Equipment Ltd China

61 Epiroc Zimbabwe (Private) Ltd Zimbabwe

62 Fordia Groupe Inc. Canada

63 PT Epiroc Southern Asia Indonesia

64 Sautec AS Estonia

(iii) Key Management Personnel

Sr. No. Name Designation

1 Jerry Andersson Managing Director
2 Shrikant Jog Chief Financial Officer

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Annual Report 2021 70

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

NOTE 30 (b) - Related Party Transactions:

Ultimate Holding Common Key

Total
Holding Company Control Management
Nature of Transactions Rs. in
Company Rs. in Rs. in Personnel
Million
Rs. in Million Million Million Rs. in Million

Purchase of Goods - 1,854.70 1,632.62 - 3,487.32

(-) (1740.85) (1236.42) (-) (2977.27)

Sale of Goods - 694.18 3,848.23 - 4,542.40

(-) (413.41) (2913.79) (-) (3492.17)

Income from rendering of services - 577.49 347.37 - 924.86

(-) (389.09) (326.03) (-) (715.12)

Commission Income - 21.22 16.06 - 37.28

(-) (69.78) (28.91) (-) (98.69)

Commission Charges - - 26.76 - 26.76

(-) (-) (15.82) (-) (15.82)

Royalty Charges - 169.88 116.39 - 286.27

(-) (118.73) (127.81) (-) (246.54)

Warranty charges - - 3.03 - 3.03

(-) (-) (2.88) (-) (2.88)

Warranty Recovery - 6.74 5.76 - 12.51

(-) (5.19) (0.46) (-) (5.65)

Recovery of freight - 3.49 112.46 - 115.95

(-) (9.02) (80.14) (-) (89.16)

Travelling Expenses - - - - -

(0.07) (0.27) (0.76) (-) (1.10)

Charges paid for Technical /

- 350.77 55.14 - 405.90
Professional Services

(-0.39) (167.43) (23.13) (-) (190.17)

Capital Goods/ Services Purchased - 71.23 1.56 - 72.79

(-) (133.71) (-) (-) (133.71)

Annual Report 2021 71

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Ultimate Holding Common Key

Total
Holding Company Control Management
Nature of Transactions Rs. in
Company Rs. in Rs. in Personnel
Million
Rs. in Million Million Million Rs. in Million

Managerial Remuneration - - - 37.92 37.92

(-) (-) (-) (51.30) (51.30)

Management Fees Expense 32.85 - - - 32.85

(36.83) (-) (-) (-) (36.83)

Reimbursement of Expenses - 19.10 0.06 - 19.16

(-) (25.96) (0.19) (-) (26.15)

Recovery of Expenses 0.06 43.23 12.55 - 55.84

(0.78) (51.50) (35.81) (-) (88.09)

Global Guarantee Fees - - - - -

(-) (-) (11.06) (-) (11.06)

Amounts outstanding at year end

Amount Receivable - 143.21 1,105.43 - 1,248.64

(-) (188.39) (618.16) (-) (806.55)

Amount Payable - 535.73 428.36 - 964.08

(-) (300.17) (262.89) (-) (563.06)

(iii) Key Management Personnel

Sr. Name Designation For the year ended For the period ended
No. 31st March, 2021 31st March, 2020
1 Jerry Andersson Managing Director 31.03 28.37
2 Suresh Ghotage Chief Financial Officer - 21.10
(upto 31 December, 2019)
3 Shrikant Jog Chief Financial Officer 6.88 1.83
(from 01 January, 2020)
Total 37.92 51.30

United. Inspired.
Note 30 (c) - Details of material related party transactions with companies under common control with the Company
2) The related parties included in the various categories above, where material transactions have taken place are given below:

Charges
Income Capital
paid for Global
Purchase Sale of from Commission Commission Royalty Warranty Warranty Recovery Goods/ Travelling Reimbursement Recovery of Amount Amount
Name of the Related Party Technical / Guarantee Total
of Goods Goods rendering Income Charges Charges charges Recovery of freight Services Expenses of Expenses Expenses Receivable Payable
Professional Fees
of services Purchased
Services
Annual Report 2021

Epiroc South Africa Pty Ltd 5.94 727.09 2.18 2.66 - - - - 3.86 - - - - 0.15 - 336.73 5.08 1,083.67

(0.12) (743.53) (-) (-) (-) (-) (-) (-) (2.25) (-) (-) (0.03) (-) (-) (-) (156.11) ( - ) (902.03)

Epiroc Zimbabwe (Private) Ltd - - - - - - - - - - - - - - - 65.92 - 65.92

(-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (67.73) (-) (67.73)

Epiroc Drilling Solutions LLC 205.50 29.87 266.59 4.91 - 27.19 3.02 - 0.32 25.93 - - - 6.24 - 33.91 40.32 643.81

(119.34) (68.83) (241.62) (11.47) (-) (27.14) (-) (-) (3.52) (17.09) (-) (-) (-) (30.72) (-) (48.69) (16.21) (584.62)

Epiroc Drilling Tools AB 587.45 100.08 13.52 1.64 - 70.33 - 5.76 0.66 0.00 - - - 0.30 - 28.09 263.10 1,070.93

(487.64) (0.87) (6.31) (3.21) (-) (82.46) (2.87) (0.02) (0.24) (0.06) (-) (-) (-) (0.41) (-) (3.69) (77.09) (664.87)
Epiroc Mining India Limited

Construction Tools GmbH 321.24 0.45 0.75 - - 17.93 - - - 0.82 - - - 0.03 - 0.03 83.98 425.23

(367.44) (0.03) (0.72) (-) (-) (17.04) (-) (-) (0.01) (0.71) (-) (-) (-) (0.06) (-) (-) (103.63) (489.62)

Construction Tools PC AB - - - - - 0.95 - - - - - - - 0.06 - - - 1.01

(-) (-) (-) (-) (-) (1.17) (-) (-) (-) (-) (-) (-) (-) (0.12) (-) (-) (-) (1.29)

Epiroc México, S.A. de C. V. 0.05 40.01 - - 2.37 - - - 1.89 - - - - - - 2.20 0.32 46.84

(-) (255.29) (-) (-) (2.14) (-) (-) (-) (9.89) (-) (-) (-) (-) (-) (-) (39.98) (2.24) (309.53)

Epiroc (Nanjing) Construction and

185.32 1.39 28.84 1.65 - - - - - - - - - 0.06 - 2.25 - 219.52
Mining Equipment Co., Ltd

(14.35) (2.25) (29.87) (1.29) (-) (-) (-) (-) (0.43) (0.48) (-) (-) (-) (0.12) (-) (4.09) (-) (52.88)

Epiroc Rus LLC 0.09 499.41 - - - - - - 9.77 - - - - - - 119.96 0.65 629.88

(0.26) (456.56) (-) (-) (-) (-) (-) (-) (11.04) (-) (-) (-) (-) (-) (-) (97.65) (-) (565.52)

Epiroc Mining and Construction

- - - - 9.77 - - - - - - - - - - - - 9.77
Technique FE LLP

(-) (2.51) (-) (-) (12.77) (-) (-) (-) (0.03) (-) (-) (-) (-) (-) (-) 4.29 (-) (11.02)

Epiroc (Thailand) Ltd - 6.52 - - 12.48 - - - 0.17 - - - - - - 2.31 - 21.49

(-) (4.30) (0.68) (-) (2.69) (-) (-) (-) (0.23) (-) (-) (-) (-) (-) (-) (-) (-) (7.90)

Epiroc USA LLC 0.71 145.51 0.91 - - - - - 10.96 - - - - - - 20.41 0.32 178.82

(2.57) (324.10) (-) (-) (-) (-) (-) (-) (17.90) (-) (-) (-) (-) (-) (-) (15.24) (0.63) (360.44)

Epiroc Stonetec Srl 195.79 - 0.14 - - - - - - - 1.56 - - - - - - 197.49

(82.75) (-) (4.64) (2.65) (-) (-) (-) (-) (-) (0.86) (-) (-) (0.23) (0.58) (-) (-) (22.91) (114.63)

Epiroc Drilling Tools LLC 15.04 43.10 3.28 - - - 0.01 - 1.86 - - - - 5.48 - 15.60 1.39 85.76

(-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (0.32) (-) (-) (-) (-) (-) (0.32)

Epiroc Treasury AB - - - - - - - - - - - - - - - - - -

(-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (11.06) (-) (-) (11.06)

Epiroc Zambia Limited 0.58 61.97 - - - - - - 8.38 - - - - - - 67.84 - 138.77

(-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (0.30) (-) (-) (-) (-) (-) (0.30)

Total 1,517.71 1,655.40 316.23 10.87 24.62 116.39 3.03 5.76 37.86 26.75 1.56 - - 12.31 - 695.24 395.17 4,818.89
Notes forming part of the Financial Statements for the year ended 31 March 2021
72
Annual Report 2021 73

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 31 - Operating lease

A) Particulars of assets taken on operating lease
a) Total of future Minimum lease payments under non-cancellable operating lease
Rs. in Million
For the year ended For the year ended
Particulars
31st March, 2021 31st March, 2020
i) Not later than one year 24.08 30.37
ii) Later than one year and not later than five years 20.19 36.46
Total 44.28 66.83

b) Lease payments recognised in the Statement of Profit and Loss for the year from 1st April 2020 to 31st
March 2021 is Rs. 31.91 Million. (FY 2019-20 Rs. 35.43 Million)

c) The aforesaid leasing arrangements are in respect of Laptops/ Computers with lease period of four year
and in respect of buildings with lease period of 3 - 9 years

B) Particulars of assets given on operating lease

The aforesaid leased assets are equipment given on operating lease to customers. The period of lease generally
is 1-3 years
Rs. in Million
For the year ended For the year ended
Particulars
31st March, 2021 31st March, 2020
i) Gross carrying amount 283.95 99.44
ii) Accumulated Depreciation 15.49 13.01
iii) Depreciation for the year 36.65 2.48
iv) Depreciation on reclassification during the year 35.10 -

Note 32 - Earnings per share

Rs. in Million
For the year ended For the year ended
Particulars
31st March, 2021 31st March, 2020
Net Profit After Tax (Rs. in Million) 2,115.40 1,980.16
Weighted Average Number of Equity Shares (In numbers) 2,25,61,564 2,25,61,564
(Basic and Diluted)
Nominal Value of Equity Shares (in Rs) 10.00 10.00
Earnings per share
Basic and Diluted 93.76 87.77

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Annual Report 2021 74

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 33 - Contingent liability

Rs. in Million

For the year ended For the year ended

Particulars
31st March, 2021 31st March, 2020
Sales Tax matters [Refer note 33 (a)] 150.21 216.03
Excise Duty / Service Tax [Refer note 33 (a)] 14.45 14.45
Other [Refer note 33 (b)] 66.06 -
Total 230.72 230.48

Note 33 (a) - Includes potential claims against the Company not acknowledged as debts contested by Atlas Copco (
India) Limited payable by Epiroc Mining India Limited as per scheme of arrangement of demerger as follows :

The Board of Directors of Atlas Copco (India) Limited (“the Transferor Company”) in their meeting held on July 21,
2017, approved the scheme of arrangement between Epiroc Mining India Limited (""the Company"") and the Transferor
Company and their respective Shareholders (“the Scheme”) for demerger of the Mining and Rock Excavation Equipment
Manufacturing Business, inter alia, consisting of entire undertaking, business, activities and operations pertaining to the
Mining and Rock Excavation Equipment Manufacturing Business of the Transferor Company as a going concern to the
Company with effect from November 30, 2017(Appointed date) in consideration of which, all the Equity Shareholders
of the Transferor Company as on the appointed Date have been entitled to receive on a proportionate basis for every
1 (one) fully paid-up equity share of INR 10/- each held in the Transferor Company, 1 (one) fully paid-up equity share
of INR 10/- each of the Company. The Scheme has been approved by the Mumbai Bench of National Company Law
Tribunal (NCLT) vide their order dated November 30, 2017 and on completion of the required formalities on December
8, 2017 (effective date), the Scheme has become effective.

Accordingly, the effect of the Scheme has been given from November 30, 2017, being the Appointed Date for the
transfer in terms of which:

a) The assets and liabilities (including other liabilities which may accrue or arise after the Appointed Date) of the
Mining and rock excavation equipment manufacturing business have been transferred to Epiroc Mining India
Limited (""the Demerged Company""), at the values appearing in the books of accounts of the company on the
close of business hours on November 30,2017, details as given in (ii) below.

b) The difference between the net book value of assets transferred (i.e. book value of assets minus book value of
liabilities of the Demerged Undertaking) and face value of equity shares issued to the Equity Shareholders of
the Transferor Company, pursuant to the demerger are accounted as Capital Reserve.

Future cash outflows in respect of the above matters are determinable only on receipt of judgments / decisions
pending at various forums / authorities.
Annual Report 2021 75

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 33 (b) - Management believes that stamp authority has erred in ascertaining the amount of stamp duty for
immovable assets transferred under the demerger. The Company filed Appeal Before the Hon’ble Inspector General
of Registration and Controller of Stamps, Maharashtra, Pune against the Order dated October 19, 2020 passed by
the Collector of Stamp, Enforcement-1, Mumbai, thereby instructing the Appellant to pay Rs.103.42 Million. However,
the Company is of the view, that legitimate stamp duty would be Rs.37.36 Million which is recognised as addition to
the property, plant and equipments as per below table and the remaining amount of Rs. 66.06 Million disclosed as a
contingent liability.

For the year ended For the year ended

Particulars
31st March, 2021 31st March, 2020

Building 23.92 -

Land 12.95 -

Plant and Machinery 0.49 -

Total 37.36 -

Note 34 - Commitments
Rs. in Million
For the year ended For the year ended
Particulars
31st March, 2021 31st March, 2020

Estimated amount of contracts remaining to be executed on capital

account and not provided for:

Property, Plant and Equipment 51.85 28.74

Total 51.85 28.74

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Annual Report 2021 76

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 35 - Disclosure under section 22 of Micro Small and Medium Enterprises Development Act 2006
Rs. in Million

For the year ended For the year ended

Particulars
31st March, 2021 31st March, 2020

The principal amount and the interest due thereon remaining

unpaid to any supplier as at the end of the accounting period -

- Principal amount outstanding 21.20 20.42

- Interest thereon 0.32 0.28

"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 the amount of the payment made to the supplier
beyond the appointed day during each accounting period -"

- Interest paid in terms of Section 16 - -

- Interest payable on delayed principal payments 3.89 2.02

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 -

- Normal Interest accrued during the year, for all the delayed
payments, as per the agreed terms and not as payable under - -
the Act

- Normal Interest payable during the year, for the period of

delay in making payment, as per the agreed terms and not as - -
payable under the Act.

The amount of interest accrued and remaining unpaid at the end

of each accounting period -

- Total interest accrued during the period 4.22 2.30

- Total Interest remaining unpaid out of the above as at the

4.22 2.30
balance sheet date

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 enterprise, for the purpose of
disallowance as a deductible expenditure under section 23 of the
Micro, Small and Medium Enterprises Development Act, 2006.

- Outstanding interest at the end of previous year 6.31 4.01

- Outstanding interest at the end of current year 4.22 6.31

Annual Report 2021 77

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 36 - Effective tax rate reconciliation

(i) Profit or Loss section
Rs. in Million
For the year ended For the year ended
Particulars
31st March, 2021 31st March, 2020
Current tax expenses 740.53 657.28
Deferred tax (8.36) 72.70
Total Income tax expense recognised in the
732.17 729.98
statement of profit and loss

(ii) OCI Section
For the year ended For the year ended
Particulars
31st March, 2021 31st March, 2020
Net gain/ (loss) on remeasurement of defined benefit plans (7.30) (6.66)
Income tax charged to OCI 1.84 1.68

(b) Reconciliation of effective tax rate

Particulars For the year ended For the year ended

31st March 2021 31st March 2020
Rs. in Million Rs. in Million
(A) Profit before tax 2,861.17 2,679.14
(B) Enacted tax rate in India 25.168% 25.168%
(C) Expected tax expenses 720.10 674.29
(D) Other than temporary difference - Charge/(Credit)
Share Based Payment 34.78 8.63
Dividend on Mutual Funds - (74.90)
Interest on MSMED (1.80) 2.30
Interest on TDS 0.02 0.36
C-form 12.31 109.12
Corporate social responsibility expenses 10.16 4.04
40a(ia) (0.57) (22.24)
Change in tax rate - 191.88
Others 0.35 (4.54)
(E) Effect of income exempt and disallowed from tax 55.26 214.64
(F) Net Adjustment in Tax Expenses (B*E) 13.91 54.02
(G) Current tax expenses to be recognised in statement of 734.01 728.31
profit and loss (F+C)
(H) Income tax adjustment on income tax charged to other (1.84) (1.68)
comprehensive income on remeasurement of defined
benefit plans
(I) Net Current tax expenses recognised in statement of 732.17 729.98
profit & Loss

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Annual Report 2021 78

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 37 - Employee Share Based Payments

Atlas Copco AB in Sweden was split in 2018 and Epiroc AB (Holding Company) became a listed company in Sweden.
At the time of split the existing SAR programs were split according to certain principles and the SAR programs are now
related to Epiroc AB share. Epiroc AB today administers share based payments to the employees across the group
i.e.Share Appreciation Rights (SARs) and in terms of which,it has granted SARs to certain employees of the Company.

SAR— In terms of the SARs granted hereunder entitles the Holder to receive from the Ultimate Holding Company
or from a party appointed by the Holding Company upon exercise of the SARs, or portion thereof, cash equal to the
difference between the Issue Value and the closing price (the last transaction price for the day on the Stockholm Stock
Exchange) of the Series A-Shares on Exercise Day less any administrative fees, multiplied by the number of SARs
exercised, is paid to the employees.

SARs are calculated in SEK (Swedish Krona).

The following share-based payment arrangements were in existence during the current and prior years with respect
of certain employees of Epiroc Mining India Ltd

Atlas Copco AB Epiroc AB

Options series Number Grant date Expiry date Exercise Fair value Equivalent New New fair Equivalent
price at grant fair value exercise value fair value
date INR* price (after at grant INR*
split and date (after
conversion split and
to Epiroc conversion
AB share to Epiroc
AB share

Share Appreciation Rights

2017 59,506 26-May-17 30-Apr-24 SEK 390.00 SEK 64.20 500.78 94.38 15.90 133.73

2018 69,426 28-May-18 30-Apr-25 - - - 96.83 15.63 131.46

2019 16,080 1-Jun-19 30-Apr-26 - - - 129.78 6.48 54.50

2020 14,286 29 May 20 30-Apr-27 - - - 182.63 21.93 184.44

* converted into INR using exchange rate 8.41/SEK

SAR
Movements in Stock Option Units during the year
2020-2021
Balance at beginning of year( No of units) 1,45,012
Granted during the year ( No of units) 14,286
Balance at end of year ( No of units) 1,59,298

Fair value of share options granted in the year

The Company accounts for the SARs granted to its employees,in terms of the above plan at their fair value estimated
on the date of the grant using the Black-Scholes option pricing model and tune up to the amount of the underlying
security as on the reporting date for the Cash Settled options and SARs

Expected volatility is based on implied volatilies from traded options on common stock of Epiroc AB (erstwhile 'Atlas
Copco AB' ) and historical volatility of common stick of Epiroc AB. The expected volatility has been determined by
analyzing the historic development of the Epiroc AB share price as well as other shares on the stock market. When
determining the expected option life, assumption have been made regarding the expected excercising behaviour of
different categories of optionees"
Annual Report 2021 79

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

The inputs used in the measurement of the fair values at grant date of the SARs were as follows.

Grant Date 2020 1-June 2019 28-May-18 26-May-17

Exercise price in AC N/A N/A N/A SEK 390
Exercise price in Epiroc SEK 182.63 SEK 129.78 SEK 96.83 SEK 75.75
*Exercise price in equivalent INR INR 1,536 INR 1,092 INR 814 INR 637
Expected volatility 30% 30% 30% 30%
Option life 4.64 4.64 4.64 4.64
Dividend yield 6% 6% 6% 6%
Risk-free interest rate 1% 1% 1% 1%
Fair value per share in AC N/A N/A N/A SEK 57.00
Fair value per share in Epiroc SEK 43.96 SEK 67.81 SEK 94.06 SEK 100.29
* Fair value per share in equivalent INR INR 369 INR 570 INR 791 INR 843

* converted into INR using exchange rate as on 31st March, 2021

Since the fair value of the options and payment under SARs are not crosscharged by the holding company to the
Company,corresponding credit for the expense recognized there on in the Statement of Profit or Loss is included in as
contribution from the holding company in Other Equity.
The above information is presented to the extent has been provided by the Holding Company and available with the
Company.

Note 38 - DETAILS OF PROVISIONS AND MOVEMENTS IN EACH CLASS OF PROVISIONS AS REQUIRED BY THE
INDIAN ACCOUNTING STANDARD ON PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT
ASSETS (INDIAN ACCOUNTING STANDARD-37)
Rs. in Million

Provisions -Others
Particulars Warranty Late Delivery Provision for
Contingencies
Carrying Amounts at the beginning of the year 68.75 1.11 222.21
(72.83) (1.80) (277.23)
Additional Provision made during the year 125.30 - 57.59
(112.73) - (47.70)
Amounts Used/Paid during the year 86.98 - 115.85
(95.14) - (98.91)
Unused amounts reversed during the year 49.65 1.11 81.41
(21.67) (0.69) (3.79)
Carrying Amounts at the end of the year 57.42 - 82.54
(68.75) (1.11) (222.23)

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Annual Report 2021 80

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Brief description of the nature of the obligation and the expected timing of any resulting outflows of
economic benefits :

1) Warranty Provision:

The provision for warranty claims represents the present value of the managements' best estimate of
the future outflow of economic benefits that will be required under the Group's obligations for warranties
under local sale of goods legislation. The estimate has been made on the basis of historical warranty
trends and may vary as a result of new materials, altered manufacturing processes or other events
affecting product quality.

2) Late Delivery :

These are accrued based on managements assessment of the expected late delivery damages payable
by the Company to its customers.

3) Provision for contingencies :

Other Provisions are provisions made for potential liabilities towards contingencies expected to be
settled on completion of assessments / appeals net of amounts paid.

Note 39- Financial instruments and risk review

Financial Risk Management Framework

Epiroc Mining India Limited is exposed primarily to exchange rates risk, credit risk which may adversely
impact the fair value of its financial instruments. Due to the strong position in cash flow and a debt-
free position, the Company does not see much risk in terms of interest rate risk and liquidity risk.
Company assesses unpredictability and uncertainty in the financial environment and seeks to mitigate potential
adverse effects on the financial performance of the Company.

i) Capital Management

The Company’s capital management objectives are to maintain a strong capital base so as to retain the
confidence of its business partners and to sustain future development of the business. With the Holding
Company considering the debt free and positive surplus position of the Company, the Board of Directors does
not see any major challenges in capital management in the coming year.

The Company manages capital risk by maintaining a sound capital structure through monitoring of financial
ratios. The Company takes the positioning of the current ratio management as quite critical to continue to
maintain itself debt-free and as a surplus organization.

In case of contingency if the Company needs to borrow, Company does have a borrowing policy in place and if
required to borrow, the Company goes with the lowest cost borrowing option that is available in the market like
packing credit etc.
Annual Report 2021 81

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Investment position as on 31st March, 2021

Particulars As at 31st March 2021 As at 31st March 2020

Rs. in Million Rs. in Million

Investments 1,941.90 2,790.54

Current Ratio

Particulars As at 31st March 2021 As at 31st March 2020

Rs. in Million Rs. in Million
Total Current Assets 10,487.64 9,163.98
Total Current Liabilities 2,944.11 1,924.35
Current ratio 3.56 4.76

ii) Credit Risk

Credit risk is the risk of financial loss arising from failure of the customer to repay according to the
contractual terms or obligations. Credit risk includes primarily the risk of default and a possibility of
erosion in creditworthiness of the customer, thereby impacting the future business of the Company.

Credit risk is managed by the customer centre teams with specific policies for analysing credit limits
and creditworthiness of customers. Such reviews are done on a continuous basis. Such credit limits
which are reviewed in line with the credit limits are also maintained in the Enterprise Resource Planning
(ERP) system as well wherein the sales beyond credit limits are held back by system unless specifically
approved.

Financial instruments that are subject to concentration of credit risk principally consists of trade
receivables. None of the financial instruments of the Company result in material concentration of credit risk.
The carrying amount of financial assets represents the maximum credit exposure. The maximum
exposure to credit risk was Rs.3687.37 (Rs. Million) as of 31 March 2021 (FY 2019-20 Rs 2,864.42 Million)
being the total of the carrying amount of balances with trade receivables

Trade receivables

Ind AS requires expected credit losses to be measured through a loss allowance. The Company
assesses at each date of financial statement whether a financial asset or a group of financial assets is
impaired. Company provides a loss allowance on trade receivable on a case to case basis at the end
of each reporting period. An impairment analysis at each reporting date on an individual basis for major
customers. In addition a large number of customers that are outstanding for upto 90 days are assessed
for impairment collectively.

During the year, the Company has made write off of Rs. 18.58 Million of trade receivable
(FY 2019-20 Rs 27.93 Million). Further, the Company has made a provision for expected credit loss/loss
allowance of Rs. -14.89 Million (FY 2019-20 provision made of Rs. 16.70 Million)

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Annual Report 2021 82

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Movement in the allowance for expected As at 31st March 2021 As at 31st March 2020
credit loss Rs. in Million Rs. in Million
Opening balance 106.26 124.28
Movement in the expected credit loss allowance (14.89) 16.70
on trade receivables calculated at lifetime
expected credit losses
Amounts recovered during the period 63.02 (34.73)
Balance at the end of the period 154.39 106.26

iii) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices. Such changes in the values of financial instruments may result
from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market
changes.

As mentioned above in point (i), Company has been in a cash surplus position. Therefore, the liquidity
risk is limited for Company. Unless some new unexpected capital expenditure is required to be done by
the Company due to business directives, the Company expects to remain in cash surplus for at least one
year. Accordingly, the Company’s exposure to market risk is primarily on account of foreign currency
exchange rate risk.

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to

exchange rate fluctuations arise. Exposure to currency risk relates primarily to the Company's operating
activities when transactions are denominated in a different currency from the Company's functional
currency.

a) Exchange Rate Risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement
of profit or loss and other comprehensive income and equity, where any transaction references
more than one currency or where assets and liabilities are denominated in a currency other than
the functional currency of the Company. The Company evaluates the impact of foreign exchange
rate fluctuations by assessing its exposure to exchange rate risks.

The carrying amounts of the Company’s foreign currency denominated monetary assets and
monetary liabilities at the end of the reporting period are as follows.

Details of derivative instruments (for hedging) - Nil

Annual Report 2021 83

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Details of foreign currency exposures that are not hedged by a derivative instrument or otherwise

Amount in Equivalent Amount in Equivalent

Particulars Currency
Foreign Currency amount Foreign Currency amount

As at As at As at As at
31st March 2021 31st March 2021 31st March 2020 31st March 2020
in Million Rs. in Million in Million Rs. in Million

Trade Payables EURO 4.62 348.77 3.01 249.66

GBP (0.02) (2.26) - (0.06)

SEK 114.54 758.44 42.18 315.50

JPY - - 30.29 21.05

USD 0.83 61.03 0.74 56.63

CAD 0.02 1.16 0.01 0.62

NOK - - - -

AUD - 0.86 - 0.04

CHF - - - 0.30

CNY 0.08 0.85 - -

ZAR - 0.02 - -

Trade Receivables AUD 18.13 23.24 0.94 43.76

CAD - - 0.01 0.59

EURO 112.57 245.46 3.45 286.38

GBP 0.02 1.54 0.06 5.22

JPY 9.98 6.74 - -

SEK 39.60 135.84 9.06 67.74

USD 141.33 426.54 16.82 270.22

ZAR 271.09 286.43 16.44 68.83

SGD - - - -

CNY 19.39 136.83 0.74 7.87

NOK - - 0.40 2.86

HKD 2.20 2.27 - -

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Annual Report 2021 84

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Amount in Equivalent Amount in Equivalent

Particulars Currency
Foreign Currency amount Foreign Currency amount

As at As at As at As at
31st March 2021 31st March 2021 31st March 2020 31st March 2020
in Million Rs. in Million in Million Rs. in Million

Bank balances EURO 0.02 2.18 0.46 36.66

USD 0.05 3.36 1.25 89.66

SEK 0.03 0.29 41.43 308.04

The following tables demonstrate the sensitivity to a reasonably possible change in USD, EUR, JPY, AUD,
CAD, NOK, SGD, GBP, ZAR and SEK exchange rates, with all other variables held constant. The impact on the
Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities.

Rs. in Million

Effect on profit before

Particulars Currency Change in rate
tax - gain / (loss)
March 31, 2021 EUR +10% (10.33)
EUR -10% 10.33
USD +10% 36.89
USD -10% (36.89)
SEK +10% (62.23)
SEK -10% 62.23
AUD +10% 2.24
AUD -10% (2.24)
CAD +10% (0.12)
CAD -10% 0.12
GBP +10% 0.38
GBP -10% (0.38)
JPY +10% 0.67
JPY -10% (0.67)
Annual Report 2021 85

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Effect on profit before

Particulars Currency Change in rate
tax - gain / (loss)
ZAR +10% 28.64
ZAR -10% (28.64)
NOK +10% -
NOK -10% -
CNY +10% 13.60
CNY -10% (13.60)
HKD +10% 0.23
HKD -10% (0.23)

March 31, 2020 EUR +10% 7.34

EUR -10% (7.34)
USD +10% 30.32
USD -10% (30.32)
SEK +10% 6.03
SEK -10% (6.03)
AUD +10% 4.37
AUD -10% (4.37)
CAD +10% -
CAD -10% -
GBP +10% 0.53
GBP -10% (0.53)
JPY +10% (2.10)
JPY -10% 2.10
ZAR +10% 6.88
ZAR -10% (6.88)
NOK +10% 0.29
NOK -10% (0.29)
CNY +10% 0.79
CNY -10% (0.79)

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Annual Report 2021 86

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 40- Fair value measurement

Set out below is the comparison by class of the carrying amounts and fair value of the Company’s financial
instruments

Carrying Amount Fair Value Carrying Amount Fair Value

Particulars For the year ended For the year ended For the year ended For the year ended
31st March 2021 31st March 2021 31st March 2020 31st March 2020
Rs. in Million Rs. in Million Rs. in Million Rs. in Million

FINANCIAL ASSETS
Measured at Amortized Cost
Non Current Financial Assets
Security Deposits 122.43 122.43 110.02 110.02
(-) Provision for doubtful deposits (31.76) (31.76) (21.50) (21.50)
90.67 90.67 88.52 88.52
Current Financial Assets
Measured at Fair value through
Statement of Profit and Loss
Investments 1,941.90 1,941.90 2,790.54 2,790.54
Trade Receivables 3,841.76 3,841.76 2,970.68 2,970.68
(-) Expected credit loss /loss (154.39) (154.39) (106.26) (106.26)
allowance
3,687.37 3,687.37 2,864.42 2,864.42
Cash & Cash Equivalent
Cash on hand - - 0.02 0.02
Balance with banks in -
Current Accounts 49.29 49.29 118.24 118.24
EEFC Accounts 5.93 5.93 43.45 43.45

Measured at Amortized Cost

Security Deposits 3.76 3.76 2.17 2.17
Loans and advances to employees 5.34 5.34 23.61 23.61

FINANCIAL LIABILITIES
Measured at Amortized Cost
Trade Payables 2,322.64 2,322.64 1,552.23 1,552.23
Other current liabilities
Payables on purchase of property 42.65 42.65 2.09 2.09
plant and equipment
Security Deposit Received 0.10 0.10 0.06 0.06

The management assessed that the fair values of short term financial assets and liabilities significantly
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 among willing parties, other than in a forced or liquidation sale.
Annual Report 2021 87

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

The Company determines fair values of financial assets and financial liabilities by discounting the contractual
cash inflows/outflows using prevailing interest rates of financial instruments with similar terms. The initial
measurement of financial assets and financial liabilities is at fair value. The fair value of investment is determined
using quoted net assets value from the fund. Further, the subsequent measurement of all financial assets and
liabilities is at amortised cost, using the effective interest method.

Discount rates used in determining fair value

The interest rate used to discount estimated future cash flows, where applicable, are based on the best possible
borrowing rate of the borrower. The Company maintains policies and procedures to value financial assets or
financial liabilities using the best and most relevant data available.

Fair value of financial assets and liabilities is the amount 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, regardless
of whether that price is directly observable or estimated using another valuation technique."

The following methods and assumptions were used to estimate fair value:

(a) Fair value of short term financial assets and liabilities significantly approximate their carrying amounts
largely due to the short term maturities of these instruments.

(b) Fair value of quoted mutual funds is based on the net assets value at the reporting date. The fair value of
other financial liabilities as well as other non current financial liabilities is estimated by discounting future
cash flow using rate currently applicable for debt on similar terms, credit risk and remaining maturities.

(c) The fair value of the Company’s interest bearing borrowing received are determined using discount rate
that reflects the entity’s borrowing rate as at the end of the reporting period.

Fair value hierarchy

All financial instruments for which fair value is recognised or disclosed are categorised within the fair value
hierarchy described as follows, based on the lowest level input that is significant to the fair value measurement
as a whole:

Level 1: Quoted (unadjusted) price is active market for identical assets or liabilities

Level 2: Valuation technique for which the lowest level input that has a significant effect on the fair value
measurement are observed, either directly or indirectly

Level 3: Valuation technique for which the lowest level input has a significant effect on the fair value measurement
is not based on observable market data

The following table presents our assets and liabilities measured at fair value on recurring basis at 31st March,
2021

Rs. in Million
Particulars Level 1 Level 2 Level 3
31st March 2021
Investments 1,941.90 - -
During the period ended 31st March, 2021, there were no transfers between Level 1 and Level 2 fair value
measurement and no transfer into and out of Level 3 fair value measurement

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Annual Report 2021 88

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 41 :

The appearance of the Coronavirus (COVID-19) in January 2020 and its recent global expansion to a large number of
countries caused the viral outbreak to be classified as a pandemic by the World Health Organization on 11 March 2020

Since then, the measures that are being adopted to combat the virus are having a significant effect, not only on people
but also on economic activity in general. In view of the course that events have taken, at the date of the preparation
of these financial statements it is difficult to make a detailed evaluation or quantification of the possible impacts that
COVID-19 may have on the Company, due to the uncertainty of its consequences in the short and medium term.
We have assessed the impact on financial statements and account balances level which we believe is not material.
Further, there is no change in the internal controls during the lockdown period.

"The directors of the Company have conducted a preliminary assessment of the current situation based on the best
available information at the date of preparation of the financial statements. In this regard, although the Company
closed all its plants and warehouse following the restrictions imposed by the authorities, these restrictions were lifted
considering the products qualifying as essential commodity and as per Ministry of Home Affairs guidelines to operate
the plants, and, therefore, the Company is able to commence its operations gradually. Based on our financial position
as of year end date, we can ensure on continuing to meet our financial obligations.

Additionally, the Company is analysing several measures to minimise its impacts through various cost control initiatives
and the Company has sufficient liquidity, as well as the ability, if it were to become necessary, to obtain funding
through the mechanisms established by the Group to which it belongs.

Although there is significant uncertainty surrounding future events, the Company's directors are constantly monitoring
the evolution of the situation in order to successfully address any possible impacts, both financial and non-financial,
that may arise.

Note 42 : Impact of Ind AS 116 Leases on Financial Statements :

Balance Sheet :

Right-of-Use Asset (ROU) of Rs 189.35 Million and a Lease Liability of Rs. 224.33 Million has been recognised as at 31
March 2021.

Profit and loss statement :

In the Statement of Profit & Loss, the expense for operating leases is recognized as depreciation cost for the ROU
assets of Rs. 77.26 Million and finance cost for interest accrued on lease liabilities of Rs.25.07 Million. The net effect of
Ind AS 116 is a reduction of profit before tax by Rs. 7.78 Million.

Cash flow statement:

In the cash flow statement instead of fixed operating lease expenses of Rs. 94.56 Million from operating activities,
interest on lease liabilities of Rs. 25.07 Million and principal payment of lease liabilities of Rs. 69.48 Million has been
included in the cash flow from financing activities. Consequently, Cash flow from operating activities and financing
activities have shown offsetting increase and decrease while the actual outflow remains the same.
Annual Report 2021 89

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Lease liability:
The lease liability breakdown is the following:

Particulars Rs. in Million

Less than one year 76.93
Between one and five years 142.98
More than five years 4.42
224.33

Change in Liability arising form financing activities

(Rs. in Million)
Particulars As at Addition Interest Expense Repayment As at
1st April 2020 31 March 2021
Lease Liability 273.16 20.65 25.07 (94.56) 224.33

Following are the changes in the carrying value of right of use assets for the year ended 31 March 2021:

Rs. in Million
Year ended
Particulars 31 March 2021
Balance as at 1 April 2020 245.96
Additions 20.65
Deletions -
Depreciation (77.26)
Balance as at 31 March 2021 189.35

Note 43 :
The Board of Directors in their meeting held on 28th July, 2021 have recommended final dividend of Rs. 50/- per equity
share of Rs. 10/- each fully paid-up resulting in total outflow of Rs. 1,128.08 Million.

Note 44 - Expenditure to be incurred for Corporate Social Responsibility as per Companies Act, 2013:
Rs. in Million

Particulars For the year ended For the year ended

31st March, 2021 31st March, 2020
Gross Amount required to be spent by the company during the year 39.45 32.38
Amount spent during the year; ( other than construction/acquisition
of any asset)
In cash 10.16 4.04
Yet to be paid in cash - -
Amount unspent 29.29 28.34

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Annual Report 2021 90

Epiroc Mining India Limited

Notes forming part of the Financial Statements for the year ended 31 March 2021

Note 45 - Code on Social Security, 2020

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 November 13, 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.

Note 46 - Capital Reduction

Members of the Company by way of Postal Ballot on 16th April, 2021 approved a special resolution for reduction of
Company’s issued, subscribed and paid-up equity share capital from 225.62 Million comprising 22.56 Million fully
paid up equity shares of Rs. 10 each to 217.32 Million by cancelling and extinguishing 3.68% i.e. 8,29,617 fully paid up
equity shares of Rs. 10 each which are held by the public shareholders of the Company (all equity shareholders of the
Company other than the promoter and promoter related entities holding shares of the Company). The Company has
fixed Rs. 1,635 per equity share as fair value resulting in total outflow of Rs. 1,356.42 Million.

The Company has already filed a petition before the National Company Law Tribunal, Mumbai Bench (“NCLT”) under
Section 66 of the Companies Act, 2013 seeking its approval for the proposed capital reduction. However, the petition
is yet to come up for hearing before the NCLT as of date.

NOTE 47 - The financial statements for the year ended 31st March 2021 are approved by the Board of Directors and
authorised for issue on 28th July 2021.

Signature to Notes 1 to 47

In terms of our report attached

For Deloitte Haskins & Sells LLP For and on behalf of the Board of Directors
Chartered Accountants
Kunal Thakore Vinayak Padwal Jerry Andersson
Jayesh Parmar Chairman Director Managing Director
Partner (DIN 06462999) (DIN 00198772) (DIN 08015237)
(Membership No. 106388) Date : 28th July, 2021 Date : 28th July, 2021 Date : 28th July, 2021
UDIN : 21106388AAAACO5502 Place : Mumbai Place : Mumbai Place : Mumbai

Date : 28th July, 2021 Shrikant Jog Ashish Jain

Place : Mumbai Chief Financial Officer Company Secretary & Manager Finance
Date : 28th July, 2021 Date : 28th July, 2021
Place : Mumbai Place : Mumbai
United in performance.
Inspired by innovation. Epiroc Mining India Limited

Performance unites us, innovation inspires us, and 14th Floor, Tower 1, Fountainhead,
Phoenix Market City, Nagar Road,
commitment drives us to keep moving forward.
Viman Nagar, Pune-411014 Maharashtra, India
Count on Epiroc to deliver the solutions you need to Phone Number : +91 7219 722 200
succeed today and the technology to lead tomorrow. Email : miningtechnique.india@epiroc.com
epiroc.com Call us : 1800 120 1558