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NOTES TO THE UNCONSOLIDATED

FINANCIAL STATEMENTS

For the year ended June 30, 2020

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the
statement of profit or loss.

This category generally applies to interest–bearing loans and borrowings.

B. Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the derecognition of the original liability and the recognition of a new liability.
The difference in the respective carrying amounts is recognized in the unconsolidated statement of
profit or loss.

6.24.3 Offsetting of financial assets and liabilities
Financial assets and financial liabilities are set off and the net amount is reported in the unconsolidated
financial statements when there is a legally enforceable right to set off and the company intends either to
settle on a net basis, or to realize the assets and to settle the liabilities simultaneously.

7. CHANGES IN ACCOUNTING POLICIES DUE TO APPLICABILITY OF INTERNATIONAL FINANCIAL
REPORTING STANDARD 16, ‘LEASES’ (IFRS 16)
Before the adoption of IFRS 16, the Company classified each of its leases (as lessee) at the inception date as
an operating lease. In an operating lease, the leased property was not capitalized and the lease payments were
recognized as rent expense in Statement of Profit or Loss on a straight–line basis over the lease term. Any prepaid
rent and accrued rent were recognized under Prepayments and Trade and other payables, respectively.

Under IFRS 16, assets leased by the Company, under operating lease, are being recognized on the statement of
financial position of the company with a corresponding liability. As a rule, lease expenses are no longer recorded in
the statement of profit or loss from July 1, 2019. Instead, depreciation and interest expenses are recorded stemming
from the newly recognized lease assets and lease liability.

The Company presents right–of–use assets in ‘property, plant and equipment’ as a separate line item with the same
classification of underlying assets of the same nature that it owns.
Key changes in accounting policies resulting from application of IFRS 16

7.1 Leases
Right–of–use assets
At inception, the Company assesses whether a contract is or contains a lease. This assessment involves
the exercise of judgement about whether the Company obtains substantially all the economic benefits from
the use of the asset and whether the Company has a right to direct the use of the asset. The Company
recognizes right–of–use assets (RoU) at the commencement date of the lease (i.e. the date the underlying
asset is available for use). Right–of–use assets are measured at cost, less any accumulated depreciation
and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of RoU includes
the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before
the commencement date less any lease incentives received.

Unless the Company is reasonably certain to obtain ownership of the leased asset at the end of the lease
term, the recognized right–of–use assets are depreciated on a straight–line basis over the shorter of its
estimated useful life and the lease term. Depreciation of RoU is charged to statement of profit or loss.
Residual value and the useful life of an RoU are reviewed at least at each financial year–end. Depreciation on
additions to RoU is charged from the month in which an asset is acquired, while no depreciation is charged
for the month in which the asset is disposed off.

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