1.3 Summary of material accounting policiesa) Revenue Recognition
Sale of goods
Revenue are recognised when control of the
products has transferred, being when the products
are delivered to the customer at an amount that
reflects the consideration to which the Company
expects to be entitled in exchange for those goods
or services. Delivery occurs when the products
have been shipped to the specific location, the risks
of obsolescence and loss have been transferred to
the customer, and the customer has accepted the
products in accordance with the sales contract.
Revenue from providing services is recognized in
the accounting period in which the services are
rendered.
Revenue towards satisfaction of a performance
obligation is measured at the amount of
transaction price (net of variable consideration
such as various discounts and schemes offered
by the Company as a part of contract and revision
for changes in commodity prices) allocated to that
performance obligation.
Accumulated experience is used to estimate and
provide for the discounts and returns, expected
customer settlement for price changes and
expected future sales volume for amortization of
upfront payment to customers, using the expected
value method.
b) Leases
As a lessee
Assets and liabilities arising from a lease are
initially measured on a present value basis. Lease
liabilities include the net present value of the
following lease payments:
• fixed payments (including in-substance fixed
payments)
Lease payments to be made under reasonably
certain extension options are also included in the
measurement of the liability. The lease payments
are discounted using the Company’s incremental
borrowing rate is used, being the rate that the
individual lessee would have to pay to borrow the
funds necessary to obtain an asset of similar value
to the right-of-use asset in a similar economic
environment with similar terms, security and
conditions.
To determine the incremental borrowing rate, the
Company:
• where possible, uses recent third-party
financing received as a starting point,
adjusted to reflect changes in financing
conditions since third party financing was
received.
• uses a build-up approach that starts with a
risk-free interest rate adjusted for credit risk
for leases held by the Company; and
• makes adjustments specific to the lease, e.g.,
term, country, currency and security.
Right-of-use assets are measured at cost
comprising the following:
• the amount of the initial measurement of
lease liability
Right-of-use assets are generally depreciated
over the shorter of the asset's useful life and the
lease term on a straight-line basis. If the Company
is reasonably certain to exercise a purchase
option, the right-of-use asset is depreciated over
the underlying asset’s useful life.
c) Trade receivables
Trade receivables are amounts due from
customers for goods sold or services performed
in the ordinary course of business and reflects
Company’s unconditional right to consideration.
Trade receivables are recognised initially at the
transaction price as they do not contain significant
financing components. The Company holds the
trade receivables with the objective of collecting
the contractual cash flows and therefore measures
them subsequently at amortized cost using the
effective interest method, less loss allowance.
For trade receivables, the Company applies the
simplified approach required by Ind AS 109, which
requires expected lifetime losses to be recognised
from initial recognition of the receivables.
d) Inventories
Raw materials and stores, work in progress, traded
and finished goods are stated at the lower of
cost and net realizable value. Costs are assigned
to individual items of inventory on the basis of
weighted average basis. Costs of purchased
inventory are determined after deducting rebates
and discounts.
e) Property, plant and equipment
Freehold land is carried at historical cost. All other
items of property, plant and equipment are stated
at historical cost less depreciation.
All other repairs and maintenance are charged to
profit or loss during the reporting period in which
they are incurred.
Depreciation methods estimated useful lives and
residual value.
Depreciation is calculated using the straight-line
method to allocate the cost of the assets, net of
their residual values, over their estimated useful
lives as follows:
The useful lives have been based on technical
evaluation done by the Management’s expert
which are higher than those specified in Schedule
II of the Companies Act; 2013, in order to reflect
the actual usage of the assets. The residual values
of the assets are not more than 5% of the original
cost of the asset.
f) Intangible assets
Intangible assets acquired separately are
measured on initial recognition at cost. Following
initial recognition, intangible assets are carried
at cost less accumulated amortization and
accumulated impairment losses, if any. The
Company amortizes intangible assets with a
finite useful life using the straight-line method,
commencing from the date the asset is available
to the Company.
The estimated useful lives of intangible assets are
as follows:
Research and development cost
Research costs are expensed as incurred.
Development expenditure incurred on an individual
project is recognised as an intangible asset, when
all of the following criteria are met:
• It is technically feasible to complete the
intangible asset so that it will be available for
use or sale.
• Management intends to complete the asset
and use or sell it.
• There is an ability to use or sell the asset.
• It can be demonstrated how the asset will
generate probable future economic benefits.
• Adequate technical, financial and other
resources to complete the development and
to use or sell the asset are available, and
Capitalized development costs are recorded as
intangible assets and amortised from the point at
which the asset is available for use.
g) Trade payable
These amounts represent liabilities for goods and
services provided to the Company prior to the
end of the financial year which are unpaid. The
amounts are unsecured and are usually paid within
30 days of recognition. Trade and other payables
are presented as current liabilities unless payment
is not due within 12 months after the reporting
period. They are recognised initially at their fair
value and subsequently measured at amortised
cost using the effective interest method.
h) Provisions
Provisions for legal claims and service warranties
are recognised when the Company has a present
legal or constructive obligation as a result of past
events. It is probable that an outflow of resources
will be required to settle the obligation and the
amount can be reliably estimated. Provisions are
measured at undiscounted amounts, since the
impact of discounting is not material.
1.4 Summary of other accounting policiesa) Segment reporting
Operating Segments are reported in a manner
consistent with the internal reporting provided to
the Chief Operating Decision Maker (CODM).
The board of directors of the Company assesses
the financial performance and position of the
Company and makes strategic decisions. The
board of directors of the Company have been
identified as being the chief operating decision
maker. It consists of Chief Executive officer of the
Company; Chief financial officer of the Company
assists board of directors in their decision-making
process. The Company is in the business of
manufacture and sale automobile components,
which in the context of Indian Accounting
Standard 108 'Segment Information’ represents
single reportable business segment.
Refer Note 44 for segment information presented.
b) Foreign currency transactions
(i) Functional and presentation currency
Items included in the financial statements
of the Company are measured using
the currency of the primary economic
environment in which the entity operates
('the functional currency’). The financial
statements are presented in Indian rupee ('),
which is Gabriel India Limited’s functional
and presentation currency.
(ii) Transactions and balances
Foreign currency transactions are
translated into the functional currency
using the exchange rates at the dates of
the transactions. Foreign exchange gains
and losses resulting from the settlement of
such transactions and from the translation of
monetary assets and liabilities denominated
in foreign currencies at year-end exchange
rates are generally recognized in profit or
loss.
Foreign exchange differences translation of
all the assets and liabilities are presented
in the statement of profit and loss on a net
basis within other income/expenses.
Non-monetary items which are carried in
terms of historical cost denominated in
a foreign currency are reported using the
exchange rate at the date of the transaction.
(iii) Government grants
Government grants relating to the purchase
of property, plant and equipment are included
in non-current liabilities as deferred income
and are credited to profit or loss on a
straight-line basis over the expected lives of
the related assets and presented within other
income. Grants from the government are
recognised at their fair value where there is
a reasonable assurance that the grant will be
received, and the Company will comply with
all attached conditions.
(iv) Income tax
The income tax expense or credit for the
period is the tax payable on the current
period's taxable income based on the
applicable income tax rate for each
jurisdiction adjusted by changes in deferred
tax assets and liabilities attributable to
temporary differences and to unused tax
losses.
Current income-tax
The current income tax charge is calculated
on the basis of the tax laws enacted or
substantively enacted at the end of the
reporting period in the countries where the
Company and its subsidiary operate and
generate taxable income. Management
periodically evaluates positions taken in
tax returns with respect to situations in
which applicable tax regulation is subject
to interpretation and considers whether it is
probable that a taxation authority will accept
an uncertain tax treatment. The Company
measures its tax balances either based
on the most likely amount or the expected
value, depending on which method provides
a better prediction of the resolution of the
uncertainty.
Deferred tax
Deferred income tax is provided in full, using
the liability method, on temporary differences
arising between the tax bases of assets and
liabilities and their carrying amounts in the
consolidated financial statements. Deferred
income tax is also not accounted for if it
arises from initial recognition of an asset or
liability in a transaction that at the time of the
transaction affects neither accounting profit
nor taxable profit (tax loss). Deferred income
tax is determined using tax rates (and laws)
that have been enacted or substantially
enacted by the end of the reporting period
and are expected to apply when the related
deferred income tax asset is realized, or the
deferred income tax liability is settled.
Deferred tax assets are recognised for all
deductible temporary differences and unused
tax losses only if it is probable that future
taxable amounts will be available to utilize
those temporary differences and losses.
Deferred income tax assets are recognised to
the extent that it is probable that taxable profit
will be available against which the deductible
temporary differences and the carry forward
of unused tax credits and unused tax losses
can be utilised. The carrying amount of
deferred income tax assets is reviewed at
each reporting date and reduced to the extent
that it is no longer probable that sufficient
taxable profit will be available to allow all or
part of the deferred income tax asset to be
utilised.
Current and deferred tax is recognised
in profit or loss, except to the extent that
it relates to items recognised in other
comprehensive income or directly in equity.
In this case, the tax is also recognised in
other comprehensive income or directly in
equity, respectively.
(v) Impairment of assets - Non financial assets
Non-financial assets are tested for
impairment whenever events or changes
in circumstances indicate that the carrying
amount may not be recoverable. An
impairment loss is recognised for the
amount by which the asset’s carrying
amount exceeds its recoverable amount.
The recoverable amount is the higher of an
asset’s fair value less cost of disposal and
value in use.
For the purposes of assessing impairment,
assets are grouped at the lowest levels for
which there are separately identifiable cash
inflows which are largely independent of the
cash inflows from other assets or Groups
of assets (cash-generating units). Non¬
financial assets that suffered an impairment
are reviewed for possible reversal of the
impairment at the end of each reporting
period.
(vi) Cash and cash equivalents
For the purpose of presentation in the
statement of cash flows, cash and cash
equivalents includes cash on hand, balances
with banks and other short-term, highly liquid
investments with original maturities of three
months or less that are readily convertible
to known amounts of cash and which are
subject to an insignificant risk of changes in
value.
(vii) Other financial assetsa) Classification
The Company classifies its financial
assets in the following measurement
categories:
• those to be measured subsequently
at fair value (either through other
comprehensive income, or through
profit or loss), and
• those to be measured at amortized
cost.
The classification depends on the
entity’s business model for managing
the financial assets and the contractual
terms of the cash flows.
The Company classifies its financial
assets at amortised cost only if both of
the following criteria are met:
• the assets are held within a
business model whose objective
is to collect the contractual cash
flows, and
• the contractual terms give rise
to cash flows that are solely
payments of principal and interest.
For assets measured at fair value, gains
and losses will either be recorded in
profit or loss or other comprehensive
income.
See Note 41 Fair value measurements
for further details.
b) Recognition
Regular way purchases and sales of
financial assets are recognised on
trade-date, being the date on which the
Company commits to purchase or sale
the financial asset.
c) Measurement
At initial recognition, the Company
measures a financial asset (excluding
trade receivables which do not contain
a significant financing component)
at its fair value plus, in the case of a
financial asset not at fair value through
profit or loss, transaction costs that are
directly attributable to the acquisition of
the financial asset. Transaction costs
of financial assets carried at 'fair value
through profit or loss' are expensed in
profit or loss.
Debt instruments:
Subsequent measurement of debt
instruments depends on the Company’s
business model for managing the asset
and the cash flow characteristics of the
asset. The Company classifies its debt
instruments as follows:
Amortized cost: Assets that are held
for collection of contractual cash flows
where those cash flows represent solely
payments of principal and interest are
measured at amortized cost. Interest
income from these financial assets
is included in Other Income using the
effective interest rate method. Any
gain or loss arising on derecognition
is recognised directly in profit or loss
and presented in other gains/(losses).
Impairment losses are presented as
separate line item in the statement of
profit and loss.
Fair value through other comprehensive
income (FVOCI): Assets that are held for
collection of contractual cash flows and
for selling the financial assets, where
the assets' cash flows represent solely
payments of principal and interest, are
measured at FVOCI. Movements in the
carrying amount are taken through
OCI, except for the recognition of
impairment gains or losses, interest
income and foreign exchange gains and
losses which are recognised in profit
and loss. When the financial asset is
derecognized, the cumulative gain or
loss previously recognized in OCl is
reclassified from equity to profit or loss
and recognised in other gains/(losses).
Interest income from these financial
assets is included in other income
using the effective interest rate method.
Foreign exchange gains and losses are
presented in other gains/(losses) and
impairment expenses are presented as
separate line item in statement of profit
and loss.
Fair value through profit or loss:
Assets that do not meet the criteria for
amortised cost or FVOCI are measured
at fair value through profit or loss. A
gain or loss on a debt investment that
is subsequently measured at fair value
through profit or loss is recognised in
profit or loss and presented net within
other gains/(losses) in the period in
which it arises. Interest income from
these financial assets is included in
other income.
Derecognition of financial assets
A financial asset is derecognized only
when:
• the Company has transferred the
rights to receive cash flows from
the financial asset.
• Retains the contractual rights to
receive cash flows of the financial
asset but assumes a contractual
obligation to pay the cash flows to
one or more recipients.
Where the entity has transferred an
asset, the Company evaluates whether
it has transferred substantially all
risks and rewards of ownership of
the financial asset. In such cases,
the financial asset is derecognized.
Where the entity has not transferred
substantially all risks and rewards of
ownership of the financial asset, the
financial asset is not derecognized.
Where the Company has neither
transferred a financial asset nor retains
substantially all risks and rewards of
ownership of the financial asset, the
financial asset is derecognized if the
Company has not retained control of
the financial asset. Where the Company
retains control of the financial asset, the
asset is continued to be recognised to
the extent of continuing involvement in
the financial asset.
(viii) Impairment of financial assets
The Company assesses on a forward-looking
basis the expected credit losses associated
with its assets carried at amortized cost. The
impairment methodology applied depends
on whether there has been a significant
increase in credit risk.
Note 42 details how the Company determines
whether there has been a significant increase
in credit risk.
(ix) Income recognition
Interest income
Interest income from financial assets
at amortised cost is recognized in the
standalone statement of profit and loss as
part of other income.
Interest income is calculated by applying the
effective interest rate to the gross carrying
amount of a financial asset except for
financial assets that subsequently become
credit impaired. For credit impaired financial
assets, the effective interest rate is applied to
the net carrying amount of the financial asset
(after deduction of the loss allowance).
Dividend
Dividends are recognised in profit or loss
only when the right to receive payment is
established, it is probable that the economic
benefits associated with the dividend will
flow to the Company, and the amount of the
dividend can be measured reliably.
Other Operating Income
Benefit on account of entitlement of import
of goods free of duty under the "Duty
Entitlement Passbook" (DEPB Scheme) and
"Merchandise Export Incentive Scheme"
under Duty Exemption Scheme is accounted
in the year of export if the entitlements can
be estimated with reasonable assurance and
condition precedent to claim are fulfilled as
per Ind AS 20.
(x) Property plant and equipment
Historical cost includes expenditure that is
directly attributable to the acquisition of the
items. Cost may also include transfers from
equity of any gains or losses on qualifying
cash flow hedges of foreign currency
purchases of property, plant and equipment.
Subsequent costs are included in the
asset’s carrying amount or recognised as
a separate asset, as appropriate, only when
it is probable that future economic benefits
associated with the item will flow to the
Company and the cost of the item can be
measured reliably. The carrying amount of
any component accounted for as a separate
asset is derecognised when replaced.
Gains and losses on disposals are
determined by comparing proceeds with
carrying amount. These are included in profit
or loss within other income.
(xi) Investment properties
Property that is held for long-term rental yields
or for capital appreciation or both, and that is
not occupied by the Company, is classified as
investment property. Investment property is
measured initially at its cost, including related
transaction costs and where applicable
borrowing costs. Subsequent expenditure is
capitalised to the asset’s carrying amount
only when it is probable that future economic
benefits associated with the expenditure
will flow to the Company and the cost of
the item can be measured reliably. All other
repairs and maintenance costs are expensed
when incurred. When part of an investment
property is replaced, the carrying amount of
the replaced part is derecognised.
Investment properties are depreciated using
'Straight Line Method’ over the estimated
useful life of the assets, based on the technical
evaluation performed by the management’s
expert. Useful Life of Investment properties
is estimated at 60 years.
(xii) Borrowings
Borrowings are initially recognised at fair
value, net of transaction costs incurred.
Borrowings are subsequently measured at
amortised cost. Any difference between the
proceeds (net of transaction\ costs) and the
redemption amount is recognised in profit or
loss over the period of the borrowings using
the effective interest method.
(xiii) Borrowing costs
General and specific borrowing costs that
are directly attributable to the acquisition,
construction or production of a qualifying
asset are capitalised during the period
of time that is required to complete and
prepare the asset for its intended use or
sale. Qualifying assets are assets that
necessarily take a substantial period of time
to get ready for their intended use or sale.
Investment income earned on the temporary
investment of specific borrowings pending
their expenditure on qualifying assets is
deducted from the borrowing costs eligible
for capitalisation. Other borrowing costs
are expensed in the period in which they are
incurred.
(xiv) LeasesAs a lessee
Assets and liabilities arising from a lease
are initially measured on a present value
basis. Lease liabilities include the net present
value additionally below mentioned lease
payments:
• variable lease payment that are based
on an index or a rate, initially measured
using the index or rate as at the
commencement date.
• amounts expected to be payable by
the Company under residual value
guarantees.
• the exercise price of a purchase option
if the Company is reasonably certain to
exercise that option, and
• payments of penalties for terminating
the lease, if the lease term reflects the
Company exercising that option.
Lease payments are allocated between
principal and finance cost. The finance cost
is charged to profit or loss over the lease
period so as to produce a constant periodic
rate of interest on the remaining balance of
the liability for each period.
Right-of-use assets are measured at cost
comprising the following:
• the amount of the initial measurement
of lease liability
• any lease payments made at or before
the commencement date less any lease
incentives received.
• any initial direct costs
• restoration costs.
Payments associated with short-term leases
of equipment and all leases of low-value
assets are recognised 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.
As a lessor
Lease income from operating leases where
the Company is a lessor is recognised in
income on a straight-line basis over the
lease term. Initial direct costs incurred in
obtaining an operating lease are added to
the carrying amount of the underlying asset
and recognised as expense over the lease
term on the same basis as lease income. The
respective leased assets are included in the
balance sheet based on their nature.
(xv) Inventories
Cost of raw materials and traded goods
comprises cost of purchases. Cost of work-
in-progress and finished goods comprises
direct materials, direct labour and an
appropriate proportion of variable and
fixed overhead expenditure, the latter being
allocated on the basis of normal operating
capacity. Cost of inventories also include all
other costs incurred in bringing the inventories
to their present location and condition. Cost
includes the reclassification from equity
of any gains or losses on qualifying cash
flow hedges relating to purchases of raw
material but excludes borrowing costs. Net
realizable value is the estimated selling
price in the ordinary course of business less
the estimated costs of completion and the
estimated costs necessary to make the sale.
(xvi) Intangible assets
The amortization period and the amortization
method for an intangible asset is reviewed at
least at the end of each reporting period. The
amortization expense on intangible assets
is recognized in the statement of profit and
loss.
(xvii) Employee benefitsa) Short term obligations
Liabilities for wages and salaries,
including non-monetary benefits that
are expected to be settled wholly within
12 months after the end of the period in
which the employees render the related
service are recognised in respect of
employees’ services up to the end if the
reporting period and are measured at
the amounts expected to be paid when
the liabilities are settled. The liabilities
are presented as current employee
benefit obligations in the balance sheet.
b) Other long-term employee benefit
obligations
The Company has liabilities for earned
leave that are not expected to be settled
wholly within 12 months after the end of
the period in which the employees render
the related service. These obligations
are therefore measured as the present
value of expected future payments to be
made in respect of services provided by
employees up to the end of the reporting
period using the projected unit credit
method. The benefits are discounted
using the appropriate market yields at
the end of the reporting period that have
terms approximating to the terms of the
related obligation. Remeasurements as
a result of experience adjustments and
changes in actuarial assumptions are
recognised in profit and loss.
The obligations are presented as current
liabilities in the balance sheet if the entity
does not have an unconditional right to
defer settlement for at least 12 months
after the reporting period, regardless of
when the actual settlement is expected
to occur.
c) Post-employment obligations
The Company operates following post¬
employment schemes:
• defined benefit plans such as
gratuity and pension; and
• defined contribution plans such as
provident funds.
Pension and gratuity obligations
The Company provides for gratuity, a defined
benefit plan (the "Gratuity Plan") covering
eligible employees in India in accordance
with the Payment of Gratuity Act, 1972 of
India. The Gratuity Plan provides a lump sum
payment to vested employees at retirement,
death or termination of employment, of an
amount based on the respective employee's
salary and the tenure of employment.
The liability or asset recognised in the
balance sheet in respect of defined benefit
pension and gratuity plan is the present
value of the defined benefit obligation at the
end of the reporting period less the fair value
of plan assets. The defined benefit obligation
is calculated annually by actuaries using the
projected unit credit method.
The present value of the defined benefit
obligation denominated in ' is determined
by discounting the estimated future cash
outflows by reference to market yields at the
end of the reporting period on government
bonds that have terms approximating to
the terms of the related obligation. The
present value of defined benefit obligation
denominated in ' is determined by
discounting the estimated future cash flows
by reference to the market yield at the end
of the reporting period on the government
bonds that have terms approximately equal
to the terms of the related obligation.
The net interest cost is calculated by
applying the discount rate to the net balance
of the defined benefit obligation and the fair
value of plan assets. This cost is included in
employee benefit expense in the Statement
of Profit and Loss.
Remeasurement gains and losses arising
from experience adjustments and changes in
actuarial assumptions are recognised in the
period in which they occur, directly in other
comprehensive income. They are included
in retained earnings in the statement of
changes in equity and in the balance sheet.
Changes in the present value of the defined
benefit obligation resulting from plan
amendments or curtailments are recognised
immediately in profit or loss as past service
cost.
Defined contribution plans
Provident Fund
The Company pays Provident fund
contributions to publicly administered
provident funds as per local regulations. The
Company has no further payment obligations
once the contributions have been paid. The
contributions are accounted for as defined
contribution plans and the contributions are
recognised as employee benefit expense
when they are due.
(xviii) Contributed equity
Equity shares issued to shareholders are
classified as equity. Incremental costs
directly attributable to the issue of new equity
shares or stock options are recognized as a
deduction from equity, net of any related
income tax effects.
(xix) Dividends
The Company recognises a liability to pay
dividend to equity holders of the Company
when the distribution is authorised and the
distribution is no longer at the discretion of
the Company.
(xx) Earnings per sharea) Basic earnings per share is calculated
by dividing
• dividing the profit or loss
attributable to owners of the
Company
• By the weighted average number
of equity shares outstanding
during the financial year, adjusted
for bonus elements in equity
shares issued during the year and
excluding treasury shares.
b) Diluted earnings per share adjusts the
figures used in the determination of
basic earnings per share to take into
account;
• the after-tax effect of interest and
other financing costs associated
with dilutive potential equity
shares, and
• The weighted average number of
additional equity shares that would
have been outstanding assuming
the conversion of all dilutive
potential equity shares.
The number of equity shares and
potentially dilutive equity shares are
adjusted retrospectively for all years
presented for any share splits and bonus
shares issues including for changes
effected prior to the authorization for
issue of the financial statements by the
Board of Directors.
(xxi) Rounding of amounts
All amounts disclosed in the consolidated
financial statements and notes have been
rounded off to the nearest million as per
the requirements of Schedule III, unless
otherwise stated.
1.5 Critical estimates and significant judgements
The preparation of standalone financial statements
requires the use of accounting estimates which,
by definition, will seldom equal the actual results.
Management also needs to exercise judgements in
applying the Company’s accounting policies.
This note provides an overview of the areas that
involved a higher degree of judgement or complexity,
and of items which are more likely to be materially
adjusted due to estimates and assumptions turning out
to be different than those originally assessed.
The areas involving critical estimates and judgements
are:
A) Significant judgementsa. Determination of lease term
In determining the lease term, management
considers all facts and circumstances that
create an economic incentive to exercise an
extension option, or not exercise a termination
option. Extension options (or periods after
termination options) are only included in the
lease term if the lease is reasonably certain
to be extended (or not terminated).
For leases of office premises, the following
factors are normally the most relevant -
• If there are significant penalties to
terminate (or not extend), the Company
is typically reasonably certain to extend
(or not terminate).
• If any leasehold improvements
are expected to have a significant
remaining value, the Company is
typically reasonably certain extend (or
not terminate).
• Otherwise, the Company considers
other factors including historical lease
durations and the costs and business
disruption required to replace the leased
asset.
Most extension options in premises leases
have not been included in the lease liability,
because the contract does not give the
Company sole right to extend the lease but
the same is subject to mutual consideration
between the lessor and the Company.
The lease term is reassessed if an option is
actually exercised (or not exercised) or the
Company becomes obliged to exercise (or not
exercise) it. The assessment of reasonable
certainty is only revised if a significant event
or a significant change in circumstances
occurs, which affects this assessment, and
is within the control of the lessee.
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