Investor Presentaiton
180
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
capitalized 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
group 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,
b)
c)
d)
wages, short-term compensated absences, performance
incentives etc., are recognized during the period in
which the employee 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
Consolidated statement of profit and 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 Group 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 contributions 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.View entire presentation