Investor Presentaiton
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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 isView entire presentation