any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any signifi cant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Company’s operations taking into account the location of the underlying asset and the availability of suitable alternatives. 5. Standards and recent pronouncements issued but not yet effective Ministry of Corporate Aff airs (“MCA”) notifi es new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1, 2023, as below: Ind AS 1 – Presentation of Financial Statements The amendments require companies to disclose their material accounting policies rather than their signifi cant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to infl uence decisions of primary users of general purpose fi nancial statements. Ind AS 12 – Income Taxes The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary diff erences. Ind AS 8 – Accounting Policies, Changes in Accounting Estimates and Errors The amendments will help entities to distinguish between accounting policies and accounting estimates. The defi nition of a change in accounting estimates has been replaced with a defi nition of accounting estimates. Under the new defi nition, accounting estimates are “monetary amounts in fi nancial statements that are subject to measurement uncertainty”. Entities develop accounting estimates if accounting policies require items in fi nancial statements to be measured in a way that involves measurement uncertainty. The Company is in the process of evaluating the impact of these amendments on the fi nancial statements. 207 Standalone | Financial Statements
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