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NOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTS

For the year ended June 30, 2020

Unless the group 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.

Lease liabilities
At the commencement date of the lease, the group recognizes lease liabilities measured at the present value
of lease payments to be made over the lease term. The lease payments include fixed payments (including
in–substance fixed payments) less any lease incentives receivable, variable lease payments that depend on
an index or a rate, and amounts expected to be paid under residual value guarantees.

The related payment obligations, net of finance costs are classified as current and long term liability
depending upon the timing of the payment.

In calculating the present value of lease payments, the group uses the incremental borrowing rate at the
lease commencement date if the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if
there is a modification, a change in the lease term, a change in the in–substance fixed lease payments or a
change in the assessment to purchase the underlying asset.

Each lease payment is allocated between the liability and finance cost so as to achieve a constant rate on
the balance outstanding. The interest element of the rental is charged to statement of profit or loss over the
lease term.

Payments associated with short–term leases and leases of low–value assets are recognized on a straight–
line basis as an expense in profit or loss. Short–term leases are leases with a lease term of 12 months or less
and leases of low value items.

8.2 Impacts of adoption of IFRS 16 on these consolidated financial statements
The group has applied IFRS 16 using the modified retrospective approach, under which the cumulative
effect of initial application is recognized in retained earnings at July 01, 2019. Accordingly, the comparative
information presented has not been restated.

On transition, the group elected to apply the practical expedient to grandfather the assessment of which
transactions are leases. The group applied IFRS 16 only to contracts that were previously identified as
leases. Contracts that were not identified as leases under IAS 17 and IFRIC 4 were not reassessed for
whether there is a lease under IFRS 16.

At transition, for lease classified as operating lease under IAS 17, lease liability was measured at the present
value of the remaining lease payments, discounted at the group’s incremental borrowing rate as at 01 July
2019 and right–of–use assets was measured at an amount equal to the present value of the remaining lease
payments adjusted by the amount of any prepaid or accrued lease payments, if any. Difference of lease
asset and liability has been charged to equity.

The group used the following practical expedients when applying IFRS 16 to leases previously classified as
operating leases under IAS 17.

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