Page 189 - DJML Annual Report 24-25

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS
The cost of the defined benefit gratuity
plan, other post-employment benefits and
the present value of the gratuity obligation
are determined using actuarial valuations.
An actuarial valuation involves making
various assumptions that may differ from
actual developments in the future. These
include the determination of the discount
rate, future salary increases and mortality
rates. Due to the complexities involved
in the valuation and its long-term nature,
a defined benefi obligatio hig
sensitive to changes in these assumptions.
All assumptions are reviewed at each
reporting date.
Contingent liabilities may arise from the
ordinary course of business in relation to
claims against the Company, including
legal, contractor and other claims. By their
nature, contingencies will be resolved only
when one or more uncertain future events
occur or fail to occur. The assessment
of the existence, and potential quantum,
of contingencies inherently involves the
exercise of significa judgeme and the
use of estimates regarding the outcome of
future events.
Useful lives and residual values are
determined by the management at the time
the asset is acquired and reviewed at each
financial year end. The lives are based on
historical experience with similar assets as
well as anticipation of future events, which
may impact their life, such as changes in
technical or commercial obsolescence
arising from changes or improvements
in production or from a change in market
demand of the product or service output of
the asset.
March 31, 2025
The Company presents assets and liabilities in
the balance sheet based on current/ noncurrent
classification. An asset is treated as current
when it is:
a) Expected to be realised or intended to be
sold or consumed in normal operating cycle
b) Held primarily for the purpose of trading
c) Expected to be realised within twelve
months after the reporting period, or
d) Cash or cash equivalent unless restricted
from being exchanged or used to settle a
liability for at least twelve months after the
reporting period.
All other assets are classified as non-current.
A liability is current when:
a) It is expected to be settled in normal
operating cycle
b) It is held primarily for the purpose of trading
c) It is due to be settled within twelve months
after the reporting period, or
d) There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period.
All other liabilities are classified as noncurrent.
The operating cycle is the time between the
acquisition of assets and their realisation in
cash and cash equivalents. The Company
ha identified twelve mo a operating
cycle.
Recognition and initial measurement
Property, plant and equipment are stated at
their cost of acquisition. The cost comprises
purchase price, borrowing cost if capitalization
criteria are met and directly attributable cost of
Annual Report 2024-25 186