Investor Presentaiton
C)
a lease-by-lease basis and thereby assesses whether it is reasonably
certain that any options to extend or terminate the contract will be
exercised. In evaluating the lease term, the Company considers
factors such as any significant leasehold improvements undertaken
over the lease term, costs relating to the termination of the lease
and the importance of the underlying asset to Company's operations
taking into account the location of the underlying asset and the
availability of suitable alternatives. The lease term in future periods
is reassessed to ensure that the lease term reflects the current
economic circumstances. After considering current and future
economic conditions, the Company has concluded that no changes
are required to lease period relating to the existing lease contracts.
(Refer Note 1 (C 6))
Allowance for credit losses on receivables :
The Company determines the allowance for credit losses based on
historical loss experience adjusted to reflect current and estimated
future economic conditions. The Company considered current
and anticipated future economic conditions relating to industries
the Company deals with and the countries where it operates. In
calculating expected credit loss, the Company has also considered
credit reports and other related credit information for its customers
to estimate the probability of default in future.
Summary of Significant Accounting Policies:
1)
Property, Plant and Equipment (PPE)
The Company has elected to continue with the carrying value
of Property, Plant and Equipment ('PPE') recognised as of the
transition date, measured as per the previous GAAP and use
that carrying value as its deemed cost of the PPE.
Property, Plant and Equipment are stated at cost less
accumulated depreciation and accumulated impairment
losses except for freehold land which is not amortised. Cost
includes purchase price after deducting trade discount /
rebate, import duties, non-refundable taxes, cost of replacing
the component parts, borrowing costs (Refer Note C (15)) and
other costs that are directly attributable and necessary to bring
the asset to its working condition in the manner intended
by the management, and the initial estimates of the cost of
dismantling/removing the item and restoring the site on which
it is located.
Spare parts procured along with the Plant and Equipment
or subsequently which has a useful life of more than 1
year and considering the concept of materiality evaluated
by management are capitalised and added to the carrying
amount of such items. The carrying amount of items of PPE
and spare parts that are replaced is derecognised when no
future economic benefits are expected from their use or upon
disposal. Other machinery spares are treated as 'stores and
spares' forming part of the inventory. If the cost of the replaced
part is not available, the estimated cost of similar new parts is
used as an indication of what the cost of the existing part was
when the item was acquired.
An item of PPE is derecognised on disposal or when no future
economic benefits are expected from use or disposal. Any gain
or loss arising on derecognition of an item of property, plant
and equipment is determined as the difference between the
net disposal proceeds and the carrying amount of the asset
and is recognised in Statement of Profit and Loss when asset is
derecognised.
The depreciable amount of an asset is determined after
deducting its residual value. Where the residual value of
an asset increases to an amount equal to or greater than the
asset's carrying amount, no depreciation charge is recognised
till the asset's residual value decreases below the asset's
carrying amount. Depreciation of an asset begins when it is.
available for use, i.e., when it is in the location and condition
necessary for it to be capable of operating in the intended
manner. Depreciation of an asset ceases at the earlier of the
date that the asset is classified as held for sale and the date
when the asset is derecognised.
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