Page 154 - FBL AR 2019-20
P. 154

Fermenta Biotech Limited
           Annual Report 2019-20



          Notes to the Standalone financial statements for the year ended March 31, 2020

          42  Payment to auditors excluding statutory levy
                                                                                                     ( H in Lakhs )
                                                                                 March 31, 2020  March 31, 2019
          For audit                                                                        25.00         25.00
          For limited review                                                               15.00         15.00
          For other services                                                                6.51         18.53
          Reimbursement of expenses                                                         1.18          1.89
                                                                                           47.69         60.42

          43  Earnings per share (EPS):
          The following table sets forth the computation of basic and diluted earnings per share :
                                                                                                     ( H in Lakhs )
                                                                                 March 31, 2020  March 31, 2019
          Profit for the year used for computation of basic and diluted earnings per share (H in Lakhs)   6,367.04    11,035.29
          Weighted average number of equity shares used in calculating basic EPS [refer note 21(a)]  2,88,47,322  2,88,47,322
          Effect of dilutive potential equity shares                                    1,46,571         14,228
          Weighted average number of equity shares used in calculating diluted EPS    2,89,93,893    2,88,61,550
          Basic earnings per equity share [nominal value of share H5 (March 31, 2019: H5)]   22.07       38.25
          Diluted earnings per equity share [nominal value of share H5 (March 31, 2019: H5)]   21.96     38.24
          44  Leases

          (A) Assets taken on operating lease
             Effective April 01, 2019, the Company has adopted Ind AS 116 “Leases” and applied to lease contracts existing on April 01, 2019, by
             electing ‘retrospective approach with the cumulative effect at the date of initial application’. Under this approach, the Company has
             recorded lease liability at the present value of the remaining lease payments, discounted at the incremental borrowing rate and the right
             of use asset at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments related to that
             lease recognised under Ind AS 17.
             The Company has entered into agreements for taking on leave and license basis certain residential and office premises and also taken
             vehicles on lease basis. The Company also has lease arrangements for land taken on lease at Dahej and Saykha. The lease term in respect
             of these lease ranges from 2 to 98 years. In respect of the said leases, the additional information is as under
                                                                                                     ( H in Lakhs )
                                                                                                March 31, 2020
             Depreciation charge for right-of-use assets                                                 152.86
             Expenses relating to leases of low-value assets accounted for on straight line basis (included in Rent expenses in    45.51
             Note 39)
             Total cash outflow for leases                                                               231.85
             Mayurity analysis of lease liabilities (on undiscounted basis)
             Less than one year                                                                          152.73
             One to five years                                                                           384.21
             More than five years                                                                        720.00
             Weighted average incremental borrowing rate applied to lease liabilities recognised in the balance sheet at the   10%
             date of intial application
             The following is the summary of practical expedients elected on initial application:
             i)   The Company has not reassessed whether a contract is or contains a lease at the date of initial application.
             ii)   The Company has utilised the exemptions provided for short-term leases (less than a year) and leases for low value assets.
             iii)   The Company has utilised hindsight in determining the lease terms where contracts contained options to extend or terminate the
                lease.
             iv)   Initial direct costs are excluded from the measurement of right-of-use assets at the date of initial application

             The difference between the operating lease commitments as of March 31, 2019, disclosed applying Ind AS 17 and the value of the
             lease liability recognised in the balance sheet at the date of initial application is primarily on account of inclusion of extension options
             reasonably certain to be exercised, in measuring the lease liability in accordance with Ind AS 116.





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