1. Corporate And General Information
Albert David Limited ("the Company") is a public limited company incorporated in 1938, domiciled
in India and has listed on the Bombay Stock Exchange Limited and the National Stock Exchange of
India Limited. The Company belongs to a renowned industrial house of Kolkata, the "Kothari Group".
The registered office of the Company is situated in Kolkata. The Company's principal business is
the manufacturing and trading of Pharmaceutical Formulations, Infusion Solutions, Herbal Dosage
Forms and Bulk Drugs by way of domestic sale or export.
The financial statements of the Company for the year ended 31st March 2026 have been approved
by the Board of Directors in their meeting held on 12th May 2026.
2. Basis of Preparation & Presentation Of Financial Statement (Material
Accounting Policy)2.1. Statement of Compliance
These financial statements have been prepared in accordance with the Indian Accounting
Standards ("Ind AS") as prescribed by Ministry of Corporate Affairs pursuant to Section 133 of the
Companies Act, 2013 ("the Act"), read with the Companies (Indian Accounting Standards) Rules,
2015 (as amended), other relevant provisions of the Act and other accounting principles generally
accepted in India.
2.2. Basis of Measurement
The Company maintains accounts on an accrual basis following the historical cost convention,
except for the following:
• Certain Financial Assets and Liabilities are measured at Fair value/ Amortised cost (refer to the
accounting policy regarding financial instruments);
• Defined Benefit Plans - plan assets are measured at fair value.
2.3. Functional and Reporting Currency
The Financial Statements are presented in Indian Rupees (INR), which is the functional currency
of the Company and the currency of the primary economic environment in which the Company
operates. All financial information presented in INR has been rounded off to the nearest lakh up to
two decimals as per the requirements of Schedule III, unless otherwise stated.
2.4. Use of Estimates and Judgements
The preparation of financial statements in conformity with Ind AS requires judgements, estimates
and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of
contingent liabilities on the date of the financial statements and the reported amount of revenues
and expenses during the reporting period. The difference between the actual results and estimates
is recognised in the period in which the results are known/ materialized.
2.5. Presentation of Financial Statements
The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format
prescribed in Division II, Schedule III to the Companies Act, 2013 ("the Act"). The Statement of Cash
Flows has been prepared and presented as per the requirements of Ind AS 7 "Statement of Cash
Flows". The disclosure requirements with respect to items in the Balance Sheet and Statement
of Profit and Loss, as prescribed in the Division-II, Schedule III to the Act and various stipulations
Notes To Standalone Financial Statement
of Ind AS or any other act are presented by way of notes forming part of the financial statements
along with the other notes required to be disclosed under the notified Accounting Standards and
the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended from
time to time).
2.6. Operating Cycle for current and non-current classification
All assets and liabilities have been classified as current or non-current depending on the Company's
normal operating cycle and other criteria set out in Division II, Schedule III of the Companies Act,
2013 and Ind AS 1. The Company has ascertained its operating cycle as twelve months for current
and non-current classification of assets and liabilities.
An asset is classified as current when it is:
• Expected to be realised or intended to be sold or consumed in the normal operating cycle;
• Held primarily for the purpose of trading;
• Expected to be realised within twelve months after the reporting period; or
• Cash or cash equivalents unless restricted from being exchanged or used to settle a liability for
at least twelve months after the reporting period.
All the other assets are classified as non-current.
A liability is current when:
• It is expected to be settled in the normal operating cycle;
• It is held primarily for the purpose of trading;
• It is due to be settled within twelve months after the reporting period, or
• There is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting period.
The Company classifies all other liabilities as non-current. Deferred Tax Assets and Liabilities are
classified as non-current assets and liabilities, respectively.
2.7. Measurement of Fair Values
A number of the Company's accounting policies and disclosures require the measurement of fair
values for both financial and non-financial assets and liabilities.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is
based on the presumption that the transaction to sell the asset or transfer the liability takes place
either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company. The fair value
of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best
interest. A fair value measurement of a non-financial asset takes into account a market participant's
ability to generate economic benefits by using the asset in its highest and best use or by selling it
to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of relevant observable inputs
All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorised within the fair value hierarchy, described as follows, based on the input that is
significant to the fair value measurement as a whole:
• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
• Level 2 — Inputs other than quoted prices included within Level 1, that are observable for the
asset or liability, either directly or indirectly; and
• Level 3 — Inputs which are unobservable for the asset or liability.
External valuers are involved in the valuation of significant assets & liabilities. Involvement of
external valuers is decided by the management of the company, considering the requirements of
Ind AS and selection criteria include market knowledge, reputation, independence and maintenance
of professional standards.
3. Accounting Policies
A summary of the material accounting policies applied in the preparation of the financial statements
are as given below. These accounting policies have been applied consistently to all the periods
presented in the financial statements.
3.1.Inventories
Inventories are valued at the lower of cost and net realisable value (NRV). Cost is measured by
including, unless specifically mentioned below, the cost of purchase and other costs incurred in
bringing the inventories to their present location and condition. NRV is the estimated selling price
in the ordinary course of business, less estimated costs of completion and the estimated costs
necessary to make the sale.
3.2. Cash And Cash Equivalents
Cash and cash equivalents 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 change in value.
For the statement of cash flows, cash and cash equivalents include cash on hand, term deposits
and other short-term highly liquid investments, net of bank overdrafts, as they are considered an
integral part of the Company's cash management. Bank overdrafts/cash credit are shown within
short-term borrowings in the Balance sheet.
3.3. Income Tax
The income tax expense or credit for the period is the tax payable on the current period's taxable
income based on the applicable income tax rate for each jurisdiction, adjusted by changes in
deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.
Current and deferred taxes are recognised in the statement of profit & loss, except to the extent
that it relates to items recognised in other comprehensive income or directly attributable to other
equity. In these cases, the tax is also recognised in other comprehensive income or in the statement
of changes in other equity, respectively.
3.3.1. Current Tax:
Current tax liabilities (or assets) for the current and prior periods are measured at the amount
expected to be paid to (recovered from) the taxation authorities using the tax rates (and tax laws)
that have been enacted or substantively enacted at the end of the reporting period.
3.3.2. Deferred Tax
• Deferred Tax assets and liabilities is measured at the tax rates that are expected to apply to the
period when the asset is realised, or the liability is settled, based on tax rates (and tax laws)
that have been enacted or substantively enacted by the end of the reporting period.
• Deferred tax is recognised in respect of temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the corresponding amounts used
for taxation purposes (i.e., tax base). Deferred tax is also recognised for the carry forward of
unused tax losses and unused tax credits.
• Deferred tax assets are recognised to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences and the carry forward of unused
tax credits and unused tax losses can be utilised.
• The carrying amount of deferred tax assets is reviewed at the end of each reporting period. The
Company reduces the carrying amount of a deferred tax asset to the extent that it is no longer
probable that sufficient taxable profit will be available to allow the benefit of part or that entire
deferred tax asset to be utilised. Any such reduction is reversed to the extent that it becomes
probable that sufficient taxable profit will be available.
• Deferred tax relating to items recognised outside the Statement of Profit and Loss is recognised
either in other comprehensive income or in the statement of change in equity. Deferred tax
items are recognised in correlation to the underlying transaction either in OCI or directly in
equity.
• Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities and when they relate to income taxes levied
by the same taxation authority and the Company intends to settle its current tax assets and
liabilities on a net basis.
3.4. Property, Plant And Equipment3.4.1. Tangible Assets3.4.1.1. Recognition and Measurement:
• Property, plant and equipment held for use in the production or/and supply of goods or services,
or for administrative purposes, are stated in the balance sheet under the cost model, i.e., cost,
less any accumulated depreciation and accumulated impairment losses (if any), except for
freehold land, which are carried at historical cost.
• Cost of an item of property, plant and equipment acquired comprises its purchase price,
including import duties and non-refundable purchase taxes, after deducting any trade discounts
and rebates, any directly attributable costs of bringing the asset to its working condition and
location for its intended use and the present value of any estimated cost of dismantling and
removing the item and restoring the site on which it is located. Such costs include borrowing
costs if recognition criteria are met.
• If significant parts of an item of property, plant and equipment have different useful lives, then
they are accounted for as separate items (major components) of property, plant and equipment.
• Profit or loss arising on the disposal of property, plant and equipment are recognised in the
Statement of Profit and Loss.
3.4.1.2. Subsequent Measurement:
• Subsequent costs are included in the asset's carrying amount only when it is probable that
future economic benefits associated with the cost incurred will flow to the Company and the
cost of the item can be measured reliably. The carrying amount of any component accounted
for as a separate asset is derecognised when replaced.
• Major Inspection/ Repairs/ Overhauling expenses are recognised in the carrying amount
of the item of property, plant and equipment as a replacement if the recognition criteria are
satisfied. Any Unamortized part of the previously recognised expenses of a similar nature is
derecognised.
3.4.1.3. Depreciation and Amortisation:
• Depreciation on Property, Plant & Equipment is provided on the Straight Line Method in terms of
the life span of assets prescribed in Schedule II of the Companies Act, 2013 or as reassessed
by the Company based on the technical evaluation.
• In case the cost of part of tangible asset is significant to the total cost of the assets and useful
life of that part is different from the remaining useful life of the asset, depreciation has been
provided on straight line method based on internal assessment and independent technical
evaluation carried out by external valuers, which the management believes that the useful lives
of the component best represent the period over which it expects to use those components.
• Depreciation on additions (disposals) during the year is provided on a pro-rata basis depending
on the usage period of assets since/ up to the date of installation/disposal.
• Depreciation on assets built on leasehold land, which is transferable to the lessor on expiry of
the lease period, is amortised over the period of the lease.
• Depreciation method, useful lives and residual values are reviewed at each financial year-end
and adjusted if appropriate.
• Residual value is determined considering past experience and the same has been considered
between 0% and 5% of the original cost in line with the limit specified in Schedule II to the
Companies Act, 2013.
3.4.1.4. Disposal of Assets
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the
disposal or retirement of an item of property, plant and equipment is determined as the difference
between net disposal proceeds and the carrying amount of the asset and is recognised in the
statement of profit and loss.
3.4.1.5. Capital Work in Progress
Capital work-in-progress is stated at cost, which includes expenses incurred during the construction
period, interest on the amount borrowed for acquisition of qualifying assets and other expenses
incurred in connection with project implementation in so far as such expenses relate to the period
prior to the commencement of commercial production.
3.5 Leases3.5.1 Determining whether an arrangement contains a lease
The determination of whether an arrangement is (or contains) a lease is based on the substance of
the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment
of the arrangement is dependent on the use of a specific asset or assets and the arrangement
conveys a right to use the asset or assets, even if that right is not explicitly specified in an
arrangement.
3.5.2 Company as lessee
The Company's lease asset classes primarily consist of leases for Land and Buildings. The
Company assesses whether a contract is or contains a lease at the inception of the contract. A
contract is, or contains, a lease if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration. To assess whether a contract conveys the
right to control the use of an identified asset, the Company assesses whether:
(i) the contract involves the use of an identified asset;
(ii) the Company has substantially all of the economic benefits from use of the asset through the
period of the lease and;
(iii) The Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognises a right-of-use asset ("ROU")
and a corresponding lease liability for all lease arrangements in which it is a lessee, except for
leases with a term of twelve months or less (short-term leases) and leases of low-value assets.
For these short-term leases of low-value assets, the Company recognises the lease payments as
an operating expense on a straight-line basis over the term of the lease.
The lease liability is initially measured at the present value of the future lease payments. The lease
payments are discounted using the interest rate implicit in the lease or, if not readily determinable,
using the incremental borrowing rate. The lease liability is subsequently re-measured by increasing
the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect
the lease payments made.
A lease liability is remeasured upon the occurrence of certain events, such as a change in the
lease term or a change in an index or rate used to determine lease payments. The re-measurement
normally also adjusts the leased assets.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease
payments have been classified as financing cash flows.
The right-of-use assets are initially recognised at cost, which comprises the initial amount of the
lease liability adjusted for any lease payments made at or prior to the commencement date of
the lease, plus any initial direct costs less any lease incentives. They are subsequently measured
at cost less accumulated depreciation and impairment losses, if any. Right-of-use assets are
depreciated from the commencement date on a straight-line basis over the shorter of the lease
term and the useful life of the underlying asset.
3.6 Revenue recognition
Revenue from contracts with customers is recognised on transfer of control of promised goods
or services to a customer at an amount that reflects the consideration to which the Company is
expected to be entitled in exchange for those goods or services.
Revenue towards satisfaction of a performance obligation is measured at the amount of the
transaction price (net of variable consideration) allocated to that performance obligation. The
transaction price of goods sold and services rendered is net of variable consideration on account
of various discounts and schemes offered by the Company as part of the contract. This variable
consideration is estimated based on the expected value of outflow. Revenue (net of variable
consideration) is recognised only to the extent that, it is highly probably, the amount will not be
subject to significant reversal when uncertainty relating to its recognition is resolved.
3.6.1 Other Income:
3.6.1.1 Interest Income: For all debt instruments measured either at amortised cost or at fair value
through other comprehensive income (FVTOCI), interest income is recorded using the effective
interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash receipts over
the expected life of the financial instrument or a shorter period, where appropriate, to the gross
carrying amount of the financial asset. For other financial assets, interest is accounted for in terms
of the fair rate.
3.6.1.2 Dividend Income: Dividend income is accounted for in the period in which the right to
receive the same is established.
3.6.1.3 Other Income: Other items of income are accounted for as and when the right to receive
such income arises and it is probable that the economic benefits will flow to the company and the
amount of income can be measured reliably.
3.7 Employee Benefits3.7.1 Short-Term Benefits
i) Short-term employee benefit obligations are measured on an undiscounted basis and are
expensed as the related services are provided. Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled wholly within twelve months after the end of the
period in which the employees render the related service, are recognised in respect of employees'
services up to the end of the reporting period.
ii) ESI is provided on the basis of actual liabilities accrued and paid to the authority.
3.7.2 Other Long-Term Employee Benefits
The liabilities for earned leaves that are not expected to be settled wholly within twelve months are
measured as the present value of the expected future payments to be made in respect of services
provided by employees up to the end of the reporting period using the projected unit credit method.
The benefits are discounted using the government securities (G-Sec) at the end of the reporting
period that have terms approximating to the terms of the related obligation. Remeasurements as
a result of experience adjustment and changes in actuarial assumptions are recognised in the
statement of profit or loss.
3.7.3 Post-Employment Benefits
The Company operates the following post-employment schemes:
• Defined Contribution Plan
Defined contribution plans such as Provident Fund, Employee State Insurance, etc., are charged to
the statement of profit and loss as and when incurred and paid to the Authority.
• Defined Benefit Plans (Gratuity)
The liability or asset recognised in the Balance Sheet in respect of defined benefit plans is the
present value of the defined benefit obligation at the end of the reporting period less the fair value
of plan assets. The Company's net obligation in respect of defined benefit plans is calculated
separately for each plan by estimating the amount of future benefit that employees have earned
in the current and prior periods. The defined benefit obligation is calculated annually by Actuaries
using the projected unit credit method.
The liability recognised for defined benefit plans is the present value of the defined benefit obligation
at the reporting date less the fair value of plan assets, together with adjustments for unrecognised
actuarial gains or losses and past service costs. The net interest cost is calculated by applying the
discount rate to the net balance of the defined benefit obligation and the fair value of plan assets.
The benefits are discounted using the government securities (G-Sec) at the end of the reporting
period that have terms approximating to the terms of the related obligation.
Remeasurements of the net defined benefit obligation, which comprise actuarial gains and losses,
the return on plan assets (excluding interest) and the effect of the asset ceiling, are recognised
in other comprehensive income. Remeasurement recognised in other comprehensive income is
reflected immediately in retained earnings and will not be reclassified to the statement of profit
and loss.
3.8 Government Grants
Government grants are recognised at their fair value, where there is reasonable assurance that the
grant will be received and all attached conditions will be complied with. When the grant relates to
an expense item, it is recognised as income on a systematic basis over the periods that the related
costs, for which it is intended to compensate, are expensed.
3.9 Foreign Currency Transactions
• Foreign currency (other than the functional currency) transactions are translated into the
functional currency using the spot rates of exchange at the dates of the transactions. Monetary
assets and liabilities denominated in foreign currencies are translated at the functional currency
spot rate of exchange at the reporting date.
• Foreign exchange gains and losses resulting from the settlement of such transactions and
from the translation of monetary assets and liabilities are generally recognized in profit or loss
in the year in which they arise except for exchange differences on foreign currency borrowings
relating to assets under construction for future productive use, which are included in the cost
of those qualifying assets when they are regarded as an adjustment to interest costs on those
foreign currency borrowings, the balance is presented in the Statement of Profit and Loss
within finance costs.
• Non-monetary items are not retranslated at the period end and are measured at historical cost
(translated using the exchange rate at the transaction date).
3.10 Borrowing Costs
• Borrowing Costs consist of interest and other costs that an entity incurs in connection with the
borrowing of funds. Borrowing costs also include foreign exchange differences to the extent
regarded as an adjustment to the borrowing costs.
3.11 Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.
3.11.1 Financial Assets
• Recognition and Initial Measurement:
All financial assets are initially recognised when the company becomes a party to the contractual
provisions of the instruments. A financial asset is initially measured at fair value plus, in the
case of financial assets not recorded at fair value through profit or loss, transaction costs that
are attributable to the acquisition of the financial asset. However, trade receivables that do not
contain a significant financing component are measured at the transaction price.
Classification and Subsequent Measurement:
For purposes of subsequent measurement, financial assets are classified in four categories:
• Measured at Amortised Cost;
• Measured at Fair Value Through Other Comprehensive Income (FVTOCI);
• Measured at Fair Value Through Profit or Loss (FVTPL); and
• Equity Instruments designated at Fair Value Through Other Comprehensive Income
(FVTOCI).
Financial assets are not reclassified subsequent to their initial recognition, except if and in the
period the Company changes its business model for managing financial assets.
• Measured at Amortised Cost: A debt instrument is measured at the amortised cost if both the
following conditions are met:
• The asset is held within a business model whose objective is achieved by both collecting
contractual cash flows and
• The contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost
using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees or costs that are an integral part of the EIR.
The EIR amortisation is included in finance income in the statement of profit or loss. The losses
arising from impairment are recognised in the profit or loss. This category generally applies to
trade receivables, cash and bank balances, loans and other financial assets of the company.
• Measured at FVTOCI: A debt instrument is measured at the FVTOCI if both the following
conditions are met:
• The objective of the business model is achieved by both collecting contractual cash flows and
selling the financial assets; and
• The asset's contractual cash flows represent SPPI.
Debt instruments meeting these criteria are measured initially at fair value plus transaction costs.
They are subsequently measured at fair value with any gains or losses arising on remeasurement
recognised in other comprehensive income, except for impairment gains or losses and foreign
exchange gains or losses. Interest calculated using the effective interest method is recognised in
the statement of profit and loss in investment income.
• Measured at FVTPL: FVTPL is a residual category for debt instruments. Any debt instrument
which does not meet the criteria for categorisation at amortised cost or as FVTOCI is classified
as FVTPL. In addition, the company may elect to designate a debt instrument, which otherwise
meets amortised cost or FVTOCI criteria, as at FVTPL. Debt instruments included within the
FVTPL category are measured at fair value, with all changes recognised in the statement of
profit or loss. Equity instruments that are, held for trading are classified as at FVTPL.
• Equity Instruments designated at FVTOCI: For equity instruments, which have not been
classified as FVTPL as above, the company may make an irrevocable election to present in other
comprehensive income subsequent changes in the fair value. The company makes such an
election on an instrument-by-instrument basis. The classification is made on initial recognition
and is irrevocable. In case the company decides to classify an equity instrument as at FVTOCI,
then all fair value changes on the instrument, excluding dividends, are recognised in the OCI.
There is no recycling of the amounts from OCI to P&L, even on the sale of an investment.
Derecognition:
The Company derecognises a financial asset on trade date only when the contractual rights to the
cash flows from the asset expire, or when it transfers the financial asset and substantially all the
risks and rewards of ownership of the asset to another entity.
Impairment of Financial Assets:
The Company assesses at each date of the balance sheet whether a financial asset or a group of
financial assets is impaired. Ind AS 109 requires expected credit losses to be measured through
a loss allowance. The company recognises impairment loss for trade receivables that do not
constitute a financing transaction using the expected credit loss model, which involves the use of a
provision matrix constructed on the basis of historical credit loss experience. For all other financial
assets, expected credit losses are measured at an amount equal to the 12-month expected credit
losses or at an amount equal to the lifetime expected credit losses if the credit risk on the financial
asset has increased significantly since initial recognition.
3.11.2 Financial Liabilities
Recognition and Initial Measurement:
Financial liabilities are classified, at initial recognition, as at fair value through profit or loss, loans
and borrowings, payables or as derivatives, as appropriate. All financial liabilities are recognised
initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable
transaction costs.
Subsequent Measurement:
Financial liabilities are measured subsequently at amortised cost or FVTPL. A financial liability is
classified as FVTPL if it is classified as held-for-trading, or it is a derivative, or it is designated as
such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains
and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities
are subsequently measured at amortised cost using the effective interest rate method. Interest
expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss
on derecognition is also recognised in profit or loss.
Derecognition:
A financial liability is derecognised when the obligation under the liability is discharged, cancelled
or expires.
3.11.3 Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet
when there is a legally enforceable right to offset the recognised amounts and there is an intention
to settle on a net basis or realise the asset and settle the liability simultaneously. The legally
enforceable right must not be contingent on future events and must be enforceable in the normal
course of business and in the event of default, insolvency or bankruptcy of the counterparty.
3.12 Earnings Per Share
Basic Earnings per share (EPS) amounts are calculated by dividing the profit for the year attributable
to equity holders by the weighted average number of equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders, adjusted
for the effects of potential equity shares, by the weighted average number of equity shares
outstanding during the year plus the weighted average number of equity shares that would be
issued on conversion of all the dilutive potential equity shares into equity shares.
3.13 Impairment of Non-Financial Assets
The Company assesses, at each reporting date, whether there is an indication that an asset may
be impaired. An asset is treated as impaired when the carrying cost of the asset exceeds its
recoverable value, being the higher of the value in use and the net selling price. Value in use is
computed at the net present value of cash flow expected over the balance useful lives of the
assets. For the purpose of assessing impairment, assets are grouped at the lowest levels for which
there are separately identifiable cash inflows which are largely independent of the cash inflows
from other assets or groups of assets (Cash Generating Units - CGU).
An impairment loss is recognised as an expense in the Statement of Profit and Loss in the year in
which an asset is identified as impaired. The impairment loss recognised in an earlier accounting
period is reversed if there has been an improvement in the recoverable amount.
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