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Integrated report Statutory reportS Financial StatementS
Consolidated

2.18.2 Interest income asset or the end of the lease term. the estimated useful
For all debt instruments measured either at amortised cost lives of right of use assets are determined on the same
or at FVtoCI, interest income is recorded using the eIr basis as those of property and equipment. In addition, the
Method. right of use asset is periodically reduced by impairment
losses, if any, and adjusted for certain remeasurements of
2.18.3 Dividend income the lease liability.
dividend income is accounted for when group’s right to the lease liability is initially measured at the present
receive the income is established. value of the lease payments that are not paid at the
commencement date, discounted using the interest
2.18.4 Insurance claims rate implicit in the lease or, if that rate cannot be readily
Insurance claims are accounted for on the basis of claims determined, the group’s incremental borrowing rate. For
admitted / expected to be admitted and to the extent that leases with reasonably similar characteristics, the group,
there is no uncertainty in receiving the claims. on a lease by lease basis, may adopt either the incremental
borrowing rate specific to the lease or the incremental
2.19 Leases borrowing rate for the portfolio as a whole.
the group has adopted Ind aS 116 effective from
april 1, 2019 using modified retrospective approach. For lease payments included in the measurement of the
the purpose of preparation of consolidated Financial lease liability comprise the fixed payments, including
Information, management has evaluated the impact of in-substance fixed payments and lease payments in an
change in accounting policies required due to adoption of optional renewal period if the group is reasonably certain
lnd aS 116 for year ended March 31, 2020. accordingly, the to exercise an extension option;
group has not restated comparative information, instead,
the cumulative effect of initially applying this standard has the lease liability is measured at amortised cost using the
been recognised as an adjustment to the opening balance effective interest method.
of retained earnings as on april 1, 2019. the group has elected not to recognise right of use assets
and lease liabilities for short-term leases that have a lease
the group assesses whether a contract contains a lease, at term of 12 months or less and leases of low-value assets.
inception of a contract. a contract is, or contains, a lease the group recognises the lease payments associated with
if the contract conveys the right to control the use of an these leases as an expense on a straight-line basis over
identified asset for a define period of time in exchange the lease term. the group applied a single discount rate
for consideration. to assess whether a contract conveys to a portfolio of leases of similar assets in similar economic
the right to control the use of an identified assets, the environment with a similar end date.
group assesses whether: (i) the contact involves the use
of an identified asset (ii) the group has substantially all refer note 2.19 – Significant accounting policies – leases
of the economic benefits from use of the asset through in the annual report of the group for the year ended
the period of the lease and (iii) the group has the right to March 31, 2019, for the policy as per Ind aS 17.
direct the use of the asset.
2.20 Employee benefits plans
as a lessee, the group recognises a right of use asset and a 2.20.1 In respect of the Company and domestic subsidiaries
lease liability at the lease commencement date. the right
of use asset is initially measured at cost, which comprises employee benefits consist of provident fund,
the initial amount of the lease liability adjusted for any superannuation fund, gratuity fund, compensated
lease payments made at or before the commencement absences, long service awards, post-retirement medical
date, plus any initial direct costs incurred and an estimate benefits, directors’ retirement obligations and family
of costs to dismantle and remove the underlying asset or benefit scheme.
to restore the underlying asset or the site on which it is (i) Post-employment benefit plans
located, less any lease incentives received.
Defined contribution plans
the right of use asset is subsequently depreciated using payments to a defined contribution retirement
the straight-line method from the commencement date benefit scheme for eligible employees in the form
to the earlier of the end of the useful life of the right of use of superannuation fund are charged as an expense

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