Page 271 - Hitachi IR 2025

that ABB India Limited continues to be responsible for submitting necessary documents to appropriate
authorities to ensure closure of the licenses to avoid any financial exposure. Therefore, the Company
does not foresee any material financial exposure. Accordingly, no adjustment has been made to the
financial statements in this regard.
36 COMMITMENTS
(a) Capital commitments
All amount in Indian Rupees in Crores, except as stated otherwise
Particulars March 31, 2025 March 31, 2024
Estimated amount of contracts remaining to be executed on account of
capital commitments and not provided for (net of advances)
156.70 55.56
(b) Leases
The Company has lease contracts for building, leasehold land and vehicles used in its operations. Leases of
building have lease terms between 2 and 15 years, land is 98 years and motor vehicles have lease terms
between 4 and 5 years. The Company's obligations under its leases are secured by the lessor’s title to the
leased assets. Generally, the Company is restricted from assigning and subleasing the leased assets and
some contracts require the Company to maintain certain financial ratios. Some of the lease agreements have
escalation clause ranging from 0% to 7% (March 31, 2024: 0% to 7%). There are several lease contracts
that include extension and termination options and variable lease payments.
The Company also has certain leases of machinery/computer equipments with lease terms of 12 months
or less and with low value. The Company applies the ‘short-term lease’ and ‘lease of low-value assets’
recognition exemptions for these leases. The Company applied a single discount rate to leases of similar
economic environment with a similar end date and excluded the initial direct costs from the measurement
of the right-of-use asset at the date of initial application.
Refer note 3 for carrying value of right-of-use assets recognised on date of transition and the movements
thereof during the year ended March 31, 2025.
Below are the carrying amounts of lease liabilities and the movements during the year:
All amount in Indian Rupees in Crores, except as stated otherwise
Particulars March 31, 2025 March 31, 2024
Opening lease liabilities 63.68 59.31
Additions 39.12 19.16
Accretion of interest 5.16 4.32
Payments (19.09) (18.49)
Deletions (0.42) (0.62)
Closing lease liabilities 88.45 63.68
All amount in Indian Rupees in Crores, except as stated otherwise
Particulars March 31, 2025 March 31, 2024
Current 16.97 11.61
Non-current 71.48 52.07
The following are the amounts recognised in profit or loss for the year ended:
All amount in Indian Rupees in Crores, except as stated otherwise
Particulars Depreciation charge of right-of-use assets 16.46 16.00
March 31, 2025 March 31, 2024
Expense relating to short-term leases and leases of low-value assets
(included in other expenses)
Interest expense on lease liabilities 5.16 4.32
14.81 4.13
36.43 24.45
Integrated Annual Report 2024-25
269