Page 243 - Hitachi IR 2025

The Company recognises the following changes in the net defined benefit obligation as an expense in statement
of profit and loss:
• Service cost including current service cost, past service cost and gains and losses on curtailments and
settlements; and
•
Net interest expense or income.
2.20.2 Provident fund
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Defined contribution scheme
Retirement benefit in the form of provident fund and pension fund are defined contribution scheme. The
Company has no obligation, other than the contribution payable. The Company recognizes contribution payable
to provident fund and pension fund as expenditure, when an employee renders the related service.
2.20.3 Superannuation
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Defined contribution scheme
Contribution to Superannuation Fund, is made at pre-determined rates to the Superannuation Fund Trust and
is charged to the statement of profit and loss during the period in which the employee renders the related
services. There are no other obligations other than the contribution payable to the Superannuation Fund Trust.
The corpus of which is invested with the Life Insurance Corporation of India.
2.20.4 Compensated absences
Accumulated leave, which is expected to be utilised within the next 12 months, is treated as short-term
employee benefits. The Company measures the expected cost of such absences as the additional amount
that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date. The
Company presents the entire accumulated leave as a current liability in the balance sheet, since it does not
have an unconditional right to defer its settlement for 12 months after the reporting date. Such long-term
compensated absences are provided for based on the actuarial valuation using the projected unit credit method
at each balance sheet date.
2.21 Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purpose of statement of cash flows, cash and cash equivalents consist of cash and cheque at hand/
remittance in transit and cash and deposit with bank.
2.22 Cash dividend
The Company recognises a liability to make cash distributions to equity holders of the Company when the
distribution is authorised and the distribution is no longer at the discretion of the Company. A corresponding
amount is recognised directly in equity. Final dividends on shares are recorded as a liability on the date of
approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the
Company’s Board of Directors.
2.23 Corporate social responsibility (‘CSR’) expenditure
The Company charges its CSR expenditure during the year to the statement of profit and loss.
2.24 Segment
Operating segments are identified as those components of the Company (a) that engage in business activities
to earn revenues and incur expenses (including transactions with any of the Company's other components (b)
whose operating results are regularly reviewed by the Company’s Chief Executive Officer to make decisions
about resource allocation and performance assessment and (c) for which discrete financial information is
available. The accounting policies consistently used in the preparation of the financial statements are also
applied to record revenue and expenditure in individual segments.
The Company is engaged in the business relating to products, projects and services for electricity transmission
and related activities. These activities of the Company are reviewed regularly by the chief operating decision
maker from an overall business perspective, rather than reviewing its products/services as individual
standalone components and therefore subject to the same risk and reward and accordingly falls within single
business segment.
Integrated Annual Report 2024-25
241