Note- 1
1. Corporate Information
Bangalore Fort Farms Limited (BFFL) is a public limited company domiciled and incorporated in India and its shares are publidy traded on the Bombay Stock Exchange CBSE% in India. The registered office of BFFL is 701 Floor, Room No. 7E, Mani Square Mall, 164/1, Maniktala Main Road, Kankurgachi, Kolkata- 700054. The Company is principally engaged in Agro-products in India. These financial statements are prepared in Indian rupees.
The financial statements were approved and adopted by Board of Directors of the Company their meeting held on 3(T May'2025.
2. Basis of Preparation Compliance with Ind AS
These financial statements are prepared and presented in accordance with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules,2015, as amended from time to time as notified under Section 133 of Companies Act, 2013 ("The Act"), the guidelines issued by the Board of Directors of the Company their meeting held on 30m May'2025.
3. Significant accounting Policies and Key Estimates and Judgements
3.1 Basis of Measurement
The financial statements are prepared on historical cost basis except for certain financial assets and liabilities (including derivatives instruments) measured at fair value.
3.2 Use of Estimates
The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgements and assumption. These estimate, judgements and assumption affect the application of accounting policies and the reported amounts of assets and liabilities, the drsdoser of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the period. Application of accounting policies that requires critical accounting estimates involving complex and subjective judgements and the use of assumptions in these financial statements have been disclosed. Accounting estimate could change from period to period. Actual results could differ from those judgements. Appropriate changes in estimates are made as management become aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes arc made and, if material, their effects are disclosed in the notes to the financial statements.
3.3 Significant accounting Judgements, estimate, assumptions
In the process of applying the Company's accounting policies, management has made
the fallowing key estmates, assumptions and judgements, which have significant
effect on the amounts recognised in the financial statements,
a) Income Taxes
Management judgement is required for the calculation of provision for income taxes and deferred tax assets and liabilities. The factors used in estimates may differ from actual outcome which could lead to significant adjustment to the amounts reported in the standalone financial statements.
b) Contingencies
Management judgement is required for estimating the possible outflow of resource$r If any, in respect of contingencieVdaim/Jitjgations against the Company as it is not possible to predict the outcome of pending matters with accuracy,
cj Defined Benefit Plans
The cost of the employment benefits such at gratuity and leave obligation are determined using actual valuations. An actuarial valuation involves making various assumption as may differ from actual developments in the future. These include the determination of the discount rate, future salary increase and mortality rates. Due to the complexities Involved in the valuation and its long term nature, a defined benefit obligation is highly sensitive to changes In these assumptions. All assumptions are reviewed at each reporting date.
The parameter most subject to change is the discount rote, in determining the appropriate discount rate tor plans operated in Jnd.'ar the management considers the interest rates of government bonds.
d) Insurance Claim
Insurance and other claims; raised by the Company are accounted for when received owing to uncertainties Involved.
3.4 Current vers u s n on- oj rrent da ss i fita tion
The company presents assets and liabilities in the Balance Sheet based on current/ nor- current classification:.
A} An Asset treated as current when it is;
j) Expected to t>e realized Dr intended to be sold or consumed in normal operating cycle.
ii} Held primarily foe the purpose of trading,
iii) Expected to be realized within 12 months after the reporting period, or
iv) Cash & Cash Equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.
All other assets arc classified as non- current,
B) A liability is current when:
i) It Is expected to be settled in normal operating cycle
ii) It is held primarily for the purpose of trading
iii) It is due to be settled within 12 months after the reporting period, or
Iv) There is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period.
All other liabilities are classified as non- current.
3.5 Reclassification of financial assets and liabilities
The company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no classification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments; a reclassification Is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The company's senior management determines change in the business model as a result of external or internal changes which are significant to the company's operations. Such changes are evident to the external parties. A change in the business model occurs when the company either begins or ceases to perform an activity that is significant to its operations. If the company reclassifies the assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period. Following the changes in business model, the company does not restate any previously recognized gains, losses (including impairment gains or losses) or interest.
3.6 Significant Accounting Policies
a) Revenue Recognition
Revenue is recognized to the extent that it is possible that the economic benefits will flow the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government
i. The company recognizes revenue from contracts with customers based on a five-step model as set out in Ind AS 115:
Step 1: Identify contract(s) with a customer: A contract is defined as an agreement between two or more parties that creates enforceable rights and obligations and sets out the criteria for every contract that must be met.
Step 2: Identify performance obligations in the contract: A performance obligation is a promise in a contract with a customer to transfer a good or service to the customer.
Step 3: Determine the transaction price: The transaction price is the amount of consideration to which the company expects to be entitled in exchange for
transferring promised goods or services to a customer, excluding amounts collected on behalf of the third parties.
Step 4: Allocate the transaction price to the performance obligations in the contract: For a contract that has more than one performance obligation, the Company allocates the transaction price to each performance obligation in an amount that depicts the amount of consideration to which the company expects to be entitled in exchange for satisfying each performance obligation.
Step 5: Recognize revenue when (or as) the Company satisfies a performance obligation.
ii. Interest Income
Interest income from a financial asset is recognized when it is probable that the economic benefits will flow the Company and the amount of income can be measured reliably. Interest income is accrued on a timely basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the asset's net carrying amount on initial recognition.
iii. Dividend
Dividend Income is recognized when the right to receive dividend is established.
b) Government Grant
Government Grant are recognized where there is a reasonable assurance that the grant will be received and all the attached condition will be complied with.
When the grant relates to an expenses item, it is recognized as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed.
Grants related to specified fixed assets are deducted from the gross value of the concerned assets in arriving at their book values.
c) Taxation
Income Tax represents the sum of current and deferred tax (including MAT).
Current income tax assets and liabilities are measured at the amount to be recovered from or paid to taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date.
Income tax expenses is recognized in the Statement of Profit & Loss, except to the extent that it relates to Items recognized directly in equity or other comprehensive income, in such cases the tax is also recognized directly in equity or in other comprehensive income.
Deferred tax Is recognized on differences between toe carrying amounts of assets and liabilities In tile Balance Sheet and the tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognized far all taxable temporary differences, and deterred wx assets are generally recognizor tor all deductible temporary differences. Deferred tax assets are recognized to the extent that it is probable that future tax payabfa profits will be available against which those deductible temporary differences and the tarry forward to unused tax credits and unused tax losses can be utilized. Deferred tax assets and Deferred tax liabilities are set off, and presented as net.
The carrying amount of deterred fox assets is reviewed at each Balance Sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available against which the temporary differences can be utilized.
Minimum Alternative Tax (MAT) is applicable to the Company. Credit of MAT is recognized a-s an asset only when and to the extent there is convincing evidence that the company wilt pay normal income fox during the specified period, i.e, the period For which MAT credit is allowed to the carried forward, In the year in which the MAT credit becomes eligible to be recognized as no asset; the said asset Is credited by way of a credit to the Profit St Lass Account and shown as MAT credit entitlement. The company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal income tax during the specified period.
d) Property, Plant & Equipment
T7>e company considers the previous GAAP carrying value for ail I its Property, Plant & Equipment as deemed cost at the transition date, viz, Is Aprir20l6.
Property, Plant a Equipment are stated at cost less accumulated depreciation and accumulated impairment of Joss, if any.
Cast of any item of property, piant & equipment comprises its purchase price including import duties and non- refundable purchase foxes, after deducting trade discounts and rebated, any directly attributable cost of bringing the item to its working condition.
Depreciation is provided on the straight-line method by depreciating carrying amount of Property, Plant & Equipment over remaining useful life of the assets.
Depreciation methods, useful life and residual values are reviewed at each financial year end.
The useful Jife and residual value as per such review is normally in accordance with schedjie II of the Companies Act,2013.
The gain or loss arising on the disposal or retirement of an item of Property, Plant St Equipment Is determined as the difference between the sales proceeds
and the carrying amount of the assets and is recognition in the Statement of Profit & Loss on the date of disposal or retirement,
e) Intangible Assets
Intangible Assets are stated at cost less accumulated amortization and impairment. Intangible Assets ane amortized over their respective individual estimated useful life on a straight-lire method.
Gains or losses arising from de-rccognition of an intangible asset are measured as the difference between the net d spossl proceeds and tli-e carrying amount of the asset and are recognized in the statement of profit or loss when the asset is derecognized-
f) Impairment of Assets
The Company assesses at each Balance Sheet date whether there is any indication that a Property, Plant & Equipment may have been impaired. Jf any such indication exists, the Company estimates the recoverable amount of the Property plant & equipment. If such recoverable amount of the Property, plant & equipment or the recoverable amount of the cash generating unit to which the Property, plant Si equipment belongs is less than its carrying amount, the carrying amount is reduced to its recoverable a mount The reduction is treated as an impairment toss and Its recognized in the profit 81 loss. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed -and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.
g) Inventories
Inventories are stated at lower of cost and Net Realizable Value. The cost is calculated' on First in First Out (FIFO) method except wort; in progress which Is valued at taw material cost plus conversion costs depending upon the stages of completion. Cost comprises expenditure incurred in the normsl course of
kjuiineii m brimyiny Such inventories bu Li present luudtiun and Lunctiliti'i and includes, where applicable, appropriate overheads based on normal level of activity. Net realizable value is the estimated selling price loss estimated cast for completion and safe.
h) Borrowing costs
Interest and other costs connected with the borrowing for the acquisition/ construction of qualifying fixed assets arc capitalized up to the date when such assets are ready for their Intended use and other borrowing cost are charged to Statement of Profit & Loss. Borrowing cost includes exchange difference to the extent regarded as an adjustment to the borrowing cost.
i) Lease
The Company evaluates if an arrangement qualifies to be a lease as per the requirements of IND AS 116. Identification of a lease requires significant judgement. The Company uses significant judgement In assessing the lease term (including anticipated renewals) and the applicable discount rate.
The company determines the lease term as the non- cancellable period of a lease, together with both periods covered by an option to extended the lease if the Company Is reasonably certain to exercise that option; and periods covered by an option to terminated the lease if the company is reasonably certain to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the non- cancellable period of a lease.
The discount rate is generally based on the incremental borrowing rate specified to the lease being evaluated or for a portfolio of leases with similar characteristics.
Company as a lessee
The Company accounts for such lease component within the contract as a lease separately from non- lease components of the contract and allocates the consideration in the contract to each lease component based on the relative stand- alone price of the lease component and the aggregate stand- alone price of the non- lease components.
The Company recognizes right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right of use assets Is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any re- measurement of the lease liability. The right-of-use asset are depredated using the straightline method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant & equipment. Right-of-use assets are tested for impairment whenever there is any indicate loss, if any, is recognized in the Statement of Profit & Loss.
The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discontinued using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company can use incremental borrowing rate. For leases with reasonably similar Characteristics, the Company, on a lease-by-lease basis, may adopt either the incremental borrowing rate specified the lease or the incremental
borrowing rate for the portfolio as a whole. The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Company is reasonably certain to exercise that option and payments of penalties for terminating the lease. The lease liability is subsequently re- measured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and re-measuring the carrying amount to reflect any re-assessment or lease modifications or to reflect revised in-substance fixed lease payments. The Company recognizes the amount of the re- measurement of lease liability due to modification as on adjustment to the right-of-use asset and Statement of Profit & Loss depending upon the nature of modification. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognizes any remaining amount of the re- measurement in Statement of Profit & Loss.
Company as a lessor
At the inception of the lease the company classifies each of its leases as either an operating lease or a finance lease. The Company recognizes lease payments received under operating leases as income on a straight line basis over the lease term. In case of a finance lease, finance income is recognized over the lease term based on a pattern reflecting a constant periodic rate of the return on the lessor's net investment in the lease. When the company Is an intermediate lessor it accounts for its interests in the head lease and the sub lease separately. It assesses the lease classification of a sub- lease with reference to the right of use asset arising from the head lease, not with reference to the underlying asset If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sublease as an operating lease.
The Company has elected not to apply the requirements of Ind AS 116 leases to short term leases of all assets that have a lease term of 12 months or less and leases for which the underlying assets is of low value. The lease payments associated with these leases are recognized as expenses on a straight- line basis over the lease term.
j) Foreign Currencies Translations
Transactions in foreign currencies are initially recorded in reporting currency by the company at spot rates at the date the transaction first qualifies for recognition.
Monetary assets are liabilities denominated in are translated at functional currency spot rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognized in statement of profit and loss.
Non- monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain nr loss arising on translation of non-monetary items measured at fair value is treated in line with the recognized of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in OCI or statement profit or toss are also recognized in OCI or statement profit & toss, respectively).
k) Provisions and Contingencies
A provision is recognized it as a result of past even the company has a present legal or constructive obligation that is reasonably estimated and its probable that an outflow of economic benefit will be required to settle the obligation. Provisions are determined by discounting the expected cash flow at a pre-tax rate that reflects current market assessments of the time value of the money and the risk specified to the liabilities.
A contingent liability is a possible obligation that arise from past events whose existence will be confirmed by the occurrence or non- occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that Is not recognized because it is not probable that an outflow of resources will be required to settle obligation. The company does not recognize a contingent liability but discloses its existence in the financial statements. If materials are disclosed by way of notes to accounts.
Contingent Assets are not recognized in the financial statements, as they are dependent on the outcome of legal or other processes.
l) Employee Benefits
Expenses and liabilities in respect of employee benefit are recorded In accordance with Indian Accounting Standard (IND AS 19 employees benefit)
i) Short Term Employee Benefits
Short term employee benefits (I.e. benefits falling due within one year after the end of the period In which employees render the related service) are recognized as expenses in the period in which employee services are rendered as per the Company's scheme based on expected obligations on undiscounted basis.
ii) Post- Employment Benefits Plan
Under Defined Contribution Plan, the contribution is payable in keeping with the related schemes are recognized as expenses for the year.
Under Defined Benefit Plan, the present value of the obligations is determined based on actuarial valuations using the Projected Unit Credit Method, on the basis of actuarial valuations carried out by actuary at each Balance Sheet date. Actuarial gain/ loss, if any, arising from experience adjustments and change in actuarial assumptions are charged or credited to other comprehensive income in the period in which they arise.
iii) Other- Term Employee Benefits
Leave encashment/ compensated absence is determined by valuations using Projected Unit Credit Method, on the basis of actuarial valuations carried out by actuary at each Balance Sheet date. Actuarial gairV loss, If any, ansing from
experience adjustments and ciwmge in actuarial assumptions are charged or credited to other comprehensive Income in the period in which they arise.
m) Cash and Cash Equivalents
Cash and cash equivalents in the Balance Sheet comprise cash at banks and on hand and short term deposits with an original maturity of three months or less, which are subject to an insignificant nsk of changes in value.
For the purpose of Statement of Cash Flows, Cash and cash equivalents consists of cash at banks and short term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of Company's Cash Management.
n) Dividend
Annual dividend distribution to the shareholders is recognized as a liability in the period in which the dividend is approved by the shareholders. Dividend payable is corresponding tax on dividend distribution is recognized directly in equity.
o) Earnings Per Share
Basic Earnings per equity shares are calculated by dividing the net profit/ loss before OCI for the period attributable to equity shareholders by the weighted average number of equity share outstanding during the year.
For calculating diluted eamings per share, the net profit or loss before OCI for the period attributable to equity shareholders and the weighted average numbers of share outstanding during the period are adjusted for the effect of all diluted potential equity share.
p) Financial Instruments A) Financial Assets
Initial Recognition and Measurement
All financial assets are recognized initially at fair value plus, in case of financial assets not recorded at fair value through profit or loss, transaction cost that are attributable to the acquisition of the financial asset.
Subsequent measurement
i) Financial Assets carried at amortized Cost:
A financial asset is subsequently measured at amortized cost, using Effective Interest Rate (EIR) method, if it is held with In a business model whose objective is to hold the asset in order to collect contractual Cash Flows and the contractual terms of the financial asset give rise on specified dates to Cash
Rows that are solely payments of principal and interest term on the principal amount outstanding.
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 amurtizalion is included in finance income In the statement of profit or loss. The losses arising from impairment are recognized in the profit or loss. This category generally applies to trade receivables, rash and hank balances, loans and other financial assets of the company.
ii) Financial Assets at fair value through other comprehensive income:
A financial asset Is subsequently measured at fair value through other comprehensive income if it is held with in a business model whose objective is achieved by both collecting contractual Cash Rows and selling financial assets and the contractual terms of the financial asset given rise on a specified date to Cash Rows that are solely payments of principal and interest on the principal amount outstanding. He company has made an irrevocable election for its investment which are classified as equity instruments to present the subsequent changes in fair value in other comprehensive income based on Its business model. Further, in case where the company has made an irrevocable election based on its business model for its Investment, which are classified as equity instrument the subsequent changes in fair value are recognized in other comprehensive income.
If the company decided to classify an equity Instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the CXI. There is no recycling of the amounts from CXI to Statement of Profit and Loss, even on sale of investment. However, the company may transfer the cumulative gain or loss within equity.
Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit and Loss.
Hi) Financial assets at fair value through profit or loss:
A financial asset which is not classified In any of the above categories are subsequently fair valued through profit or loss.
B) Financial Liabilities
Initial recognition and Measurement
Financial liabilities are recognized at fair value on Initial recognition and In case of loan and borrowing or payables net of directly attributable transaction costs.
Subsequent Measurement
Financial liabilities are subsequently carried at amortized cost using effective interest rate method. Gains and losses are recognized In profit or loss when the liabilities are derecognized as well as through the EIR amortization process. Amortization cost is calculated by taking into account any discount or premium
on acquisition and fees or costs that arc an Integral part of the EIR. The EIR amortization is Included as finance costs in the statement of profit and loss.
For trade and other payables maturing within one year from the Balance sheet date, the carrying amounts approximate fair value due to the short maturity of
these Instruments.
C) De-recognition of financial instrument
The company de-recognition the financial assets when contractual right to Cash Flow from financial assets expire or it transfer the financial assets and transfer qualities for de-recognition under IND AS 109. A financial liability or a part of a financial liability is de-recognized from the Company's Balance Sheet when obligation specified in the Contract is discharged or cancelled or expires.
D) Offsetting of Financial Instruments
Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet If there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.
q) Fair Value Financial Instruments
The company measure financial instrument at fair value at each Balance Sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
In determining the fair value of its financial instruments, the company use various method and assumption that are based on market conditions and risks existing at each reporting date. The methods used to determine the fair value includes discounted Cash Row analysis, available quoted market price and dealer quotes and valuation report etc. the method of assessing fair value results in general approximation of value and such value may never actually be realized.
Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
When measuring the fair value of an asset or liability, the company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety In the
same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
4. Changes in Accounting Standard and recent accounting pronouncements (New Accounting Standards issued but not effective):
Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23* 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April lst'2022, as below:
Ind AS 103- Reference to Conceptual Framework
The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. The Company does not expect the amendment to have any impact in its financial statements.
Ind AS 16- Proceeds Before Intended Use
The amendments mainly prohibit an entity from deducting from the cost of property, plant & equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, an entity will recognize such sales proceeds and related cost in profit or loss. The company does not expect the amendment to have any impact in its recognition of its property, plant and equipment in its financial statements.
Ind AS 37- Onerous Contracts- Costs of Fulfilling a Contract
The amendments specify that the 'cost of fulfilling' a contract comprises the ’costs that relate directly to the contract1. Costs that related directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification and the Company does not expect The amendment to have any significant impact in its financial statements.
Ind AS 109- Annual Improvement to Ind AS (2021)
The amendment clarifies which fees an entity includes when it applies the '10%' test of Ind AS 109 in assessing whether to derecognize a financial liability. The Company does not expect the amendment to have any significant Impact In Its financial statement.
Ind AS 106- Annual Improvement to Ind AS (2021)
The amendments remove the Illustration of the reimbursement of leasehold
improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives were described in that illustration. The Company does not expect the amendment to have any significant impact in its financial statements.
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