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NOTES TO THE CONSOLIDATED

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 consolidated statement of profit
or loss.

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

8. CHANGES IN ACCOUNTING POLICIES DUE TO APPLICABILITY OF INTERNATIONAL FINANCIAL
REPORTING STANDARD 16, ‘LEASES’ (IFRS 16)
Before the adoption of IFRS 16, the group 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 group, under operating lease, are being recognized on the statement of financial
position of the group with a corresponding liability. As a rule, lease expenses are no longer recorded in the statement
of profit or loss from July 01,2019. Instead, depreciation and interest expenses are recorded stemming from the newly
recognized lease assets and lease liability.

The group 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

8.1 Leases
Right–of–use assets
At inception, the group assesses whether a contract is or contains a lease. This assessment involves the
exercise of judgement about whether the group obtains substantially all the economic benefits from the use
of the asset and whether the group has a right to direct the use of the asset. The group 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.

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