Page 171 - KRCL ENglish

as a result of the unused entitlement that has accumulated at the statements of
nancial position date. Such measurement is based on actuarial valuation as at the
statements of nancial position date carried out by a qualied actuary. Gains and
losses resulting from remeasurements of the net dened benet liability are included
in prot and loss account as Leave encashment expenses in the period in which they
occur.

v. Post Retirement Medical benets:
The Company have Post Retirement Medical Benet Plan for Employees and their
spouse at superannuation with minimum 20 years of service against one time
contribution equivalent to the last month's basic pay at the time of retirement. The
valuation of the benet plan has been carried by the qualied actuary. Gain and losses
resulting from measurement of the net dened benet liabilities are included in the
Prot & Loss account.

vi. Other Employees benet:
Service cost on the Corporation's dened benet plan is included in employee
benets expense. Employee contributions, all of which are independent of the
number of years of service, are treated as a reduction of service cost. Net interest
expense on the net dened benet liability is included in nance costs. Gains and
losses resulting from remeasurements of the net dened benet liability are included
in Other Comprehensive Income in the period in which they occur. Remeasurements
are not reclassied to prot or loss in subsequent periods.

Employees who have joined service on or after 1.1.2004 are governed by
'Contributory Pension Scheme' as announced by the Government of India. The said
scheme is a dened contribution scheme and contribution is charged to Statement of
Prot & Loss.

G. Leased Assets:
With effect from 1st April, 2019, Ind AS 116 – “Leases” (Ind AS 116) supersedes Ind AS
17 – “Leases”. The Company has adopted Ind AS 116, retrospectively with the
cumulative effect of initially applying the standard, recognized on the date of initial
application (April 1, 2019). The application of Ind AS 116 has resulted into recognition
of 'Right-of-Use' asset with a corresponding Lease Liability in the Balance Sheet.
However the company has applied the option given in transitional provisions of the
Ind AS 116, and recognised the right-of-use asset at an amount equal to the lease
liability at the date of initial application, relating to those operating lease arrangement
recognised in the balance sheet immediately before the date of initial application. Due
to which there is no impact on the date of initial application i.e. 01/04/2019 on the

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