 

Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured at fair
value, and changes therein are generally recognized in the Restated Consolidated Statement of Profit and Loss.
The gain or loss on such derivative is presented in the Restated Consolidated Statement of Profit and Loss in the
same line item as the corresponding foreign exchange loss or gain arising from the hedged transaction.

Share capital
Ordinary equity shares

Incremental costs directly attributable to the issue of ordinary equity shares are recognized as a deduction from
equity.

Treasury shares

We have created an AGSTTL Employees Welfare Trust (“Trust”) for providing share-based payment to our
employees. The Trust is used as a vehicle for distributing shares to employees under the employee remuneration
schemes. The Trust buys shares of our Company for giving shares to employees. Our Company treats the Trust
as our extension and shares held by the Trust are treated as treasury shares. Treasury shares are recognized at
cost and deducted from equity. No gain or loss is recognized in the Restated Consolidated Statement of Profit
and Loss on the purchase, sale, issue or cancellation of our Company’s own equity instruments. Any difference
between the carrying amount and the consideration, if reissued, is recognized in capital reserve. Share options
exercised during the reporting period are deducted from treasury shares.

Property, plant and equipment
Recognition and measurement

Items of property, plant and equipment are measured at cost, less accumulated depreciation and accumulated
impairment losses, if any.

Cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-
refundable purchase taxes, any directly attributable cost of bringing the item to its working condition for its
intended use and estimated costs of dismantling and removing the item and restoring the site on which it is
located, after deducting trade discounts and rebates if any.

Pre-operative expenses such as salaries, brokerage and legal and professional fees incurred during installation
period are capitalized under the respective asset head as part of the indirect installation cost, to the extent to
which the expenditure is allocable or apportioned to the asset-head. In case of composite contract involving
acquisition of property, plant and equipment and providing services, the property, plant and equipment are
capitalized at the respective fair value of the asset acquired.

Stores and spares includes tangible items used as rotables in supply of goods or services and are expected to be
used for a period more than one year.

Demo assets includes assets which are given for training, testing and demonstration to various current and
prospective customers for supply of goods or services and are expected to be used for a period more than one
year.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in the Restated
Consolidated Statement of Profit and Loss.

Property, plant and equipment which are not ready for intended use as on the reporting date are disclosed as
“capital work-in-progress”.

Advances paid towards the acquisition of property, plant and equipment outstanding at each reporting date are
classified as capital advances.

POS machines which are removed or de-installed from a particular location are included under ‘Deletions’

331
