Mercury Ltd. received a ₹10 lakh government grant on 1 April 20X1, conditional on continuing eucalyptus plantation for 5 years. Management has reasonable assurance of compliance. Under Ind AS 20, the recognition pattern is:

Ind AS 20 — government grants are recognised in P&L on a SYSTEMATIC BASIS over the periods in which the entity recognises as expenses the related costs the grant is intended to compensate. For a 5-year plantation-condition grant, straight-line ₹2 lakh/year is appropriate if costs are evenly spread. If costs are unevenly distributed (e.g., higher in early years), the recognition pattern follows accordingly.