Page 173 - KRCL ENglish

The lease liability is initially measured at amortized cost at the present value of the
future lease payments. The lease payments are discounted using the interest rate
implicit in the lease or, if not readily determinable, using the incremental borrowing
rates in the country of domicile of these leases. Lease liabilities are remeasured with a
corresponding adjustment to the related ROU asset if the Company changes its
assessment of whether it will exercise an extension or a termination option.

Lease liability and ROU assets have been separately presented in the Balance Sheet
and lease payments have been classied as nancing cash ows.

The Company as a lessor Leases for which the Company is a lessor is classied as a
nance or operating lease. Whenever the terms of the lease transfer substantially all
the risks and rewards of ownership to the lessee, the contract is classied as a nance
lease. All other leases are classied as operating leases. When the Company is an
intermediate lessor, it accounts for its interests in the head lease and the sublease
separately. The sublease is classied as a nance or operating lease by reference to
the ROU asset arising from the head lease. For operating leases, rental income is
recognized on a straight line basis over the term of the relevant lease.

Transition
The Company recorded the lease liability at the present value of the lease payments
discounted at the incremental borrowing rate and the ROU asset as an amount equal
to lease liability, adjusted by the amount of any prepaid or accrued lease payments
relating to that lease recognized in the Balance Sheet immediately before the date of
transition to Ind AS.

The Company as a lessor Leases for which the Company is a lessor is classied as a
nance or operating lease. Whenever the terms of the lease transfer substantially all
the risks and rewards of ownership to the lessee, the contract is classied as a nance
lease. All other leases are classied as operating leases. When the Company is an
intermediate lessor, it accounts for its interests in the head lease and the sublease
separately The sublease is classied as a nance or operating lease by reference to
the ROU asset arising from the head lease. For operating leases, rental income is
recognized on a straight line basis over the term of the relevant lease.

H. Revenue Recognition:
The Corporation recognises revenue to depict the transfer of promised services to
customers. The revenue is recognised in accordance with Ind AS 115 Construction
Contracts is detailed as under:

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