Page 327 - KRCL ENglish

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Notes forming part of the Consolidated Financial Statements as at 31 March, 2020
On transition, the adoption of the new standard resulted in recognition of 'Right of Use'
asset of ` 8.75 crore, and a lease liability of ` 8.75 crore. The following is the summary
of practical expedients elected on initial application:

i. Applied the exemption not to recognize ROU assets and liabilities for leases with less
than 12 months of lease term on the date of initial application and inclusion for
operating lease amount Excluded the initial direct costs from the measurement of the
ROU asset at the date of initial application.

ii. The weighted average incremental borrowing rate applied to lease liabilities as at April
1, 2019 is 8.64% on the basis of Bonds and Loans.

The changes in the carrying value of ROU assets for the year ended March 31, 2020
are as follows
Particulars Category of ROU Assets Total
Balance as at S & T Equipment Vehicles
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1 April 2019
----------- -------- -------
Addition 8.67 0.07 8.74
Deletion ----- ------ ------
Depreciation 2.68 0.01 2.69
Impairment ------ ------- -------
Balance as on 5.99 0.06 6.05
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31 March
2020.

The aggregate depreciation expense on ROU assets is included under depreciation
and amortization expense in the Statement of Prot and Loss. Methods For lease term
as no buy options.

The break-up of current and non-current lease liabilities as at March 31, 2020 is as
follows

Particulars Amount
Current lease liabilities 2.49
Non-Current Lease Liabilities 3.99

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