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Investor Presentaiton

110 14) Other Income: Dividend Income: Dividend Income is accounted for when the right to receive the same is established, which is generally when shareholders approve the dividend. Interest Income: Interest Income on financial assets measured at amortised cost is recognised on a time-proportion basis using the effective interest method. 15) Borrowing costs: Borrowing cost includes interest, commitment charges, brokerage, underwriting costs, discounts/premiums, financing charges, exchange difference to the extent they are regarded as interest costs and all ancillary / incidental costs incurred in connection with the arrangement of borrowing. Borrowing costs which are directly attributable to acquisition/ construction of qualifying assets that necessarily takes a substantial period of time to get ready for its intended use are capitalised as a part of cost pertaining to those assets. All other borrowing costs are recognised as expense in the period in which they are incurred. The capitalisation of borrowing costs commences when the Company incurs expenditure for the asset, incurs borrowing cost and undertakes activities that are necessary to prepare the asset for its intended use or sale. The capitalisation of borrowing costs is suspended during extended periods in which active development of a qualifying asset is suspended. The capitalisation of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete. 16) Employee Benefits: a) Short term Employee Benefits: All employee benefits payable wholly within twelve months of rendering services are classified as short-term employee benefits. Benefits such as salaries, wages, short- term compensated absences and performance incentives, are recognised during the period in which the employee b) c) d) renders related services and are measured at undiscounted amount expected to be paid when the liabilities are settled. Long Term Employee Benefits: The cost of providing long term employee benefit such as earned leave is measured as the present value of expected future payments to be made in respect of services provided by employees upto the end of the reporting period. The expected costs of the benefit is accrued over the period of employment using the same methodology as used for defined benefits post employment plans. Actuarial gains and losses arising from the experience adjustments and changes in actuarial assumptions are charged or credited to the Statement of Profit or Loss in which they arise except those included in cost of assets as permitted. The benefit is valued annually by independent actuary. Post Employment Benefits: The Company provides the following post employment benefits: i) ii) Defined benefit plans such as gratuity, trust managed Provident Fund and post-retirement medical benefit (PRMB); and Defined contribution plans such as provident fund, pension fund and superannuation fund. Defined benefits Plans: The cost of providing benefits on account of gratuity and post retirement medical benefits obligations are determined using the projected unit credit method on the basis of actuarial valuation made at the end of each balance sheet date, which recognises each period of service as given rise to additional unit of employees benefit entitlement and measuring each unit separately to build up the final obligation. The yearly expenses on account of these benefits are provided in the books of accounts. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is
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