Note 1 Material accounting policies
This Note provides a list of the material accounting policies adopted by the Company in preparation of these Standalone
Financial Statements. These policies have been consistently applied to all the years presented, unless otherwise stated.
a) Statement of compliance
The Standalone Financial Statements comply in all material respects with Indian Accounting Standards (Ind
AS) notified under Section 133 of the Companies Act, 2013 (the Act) read with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 and other relevant provisions of the Act, as amended.
b) Basis of preparation
i) Historical cost convention
The Standalone Financial Statements have been prepared on a historical cost basis except for the following:
a) Certain financial assets and liabilities (including derivative instruments): measured at fair value
b) Defined benefit plans: plan assets measured at fair value
c) Biological assets: measured at fair value less cost to sell
ii) The Standalone Financial Statements have been prepared on accrual and going concern basis.
iii) The accounting policies are applied consistently to all the periods presented in the Standalone Financial
Statements. All assets and liabilities have been classified as current or non-current as per the normal operating
cycle of the Company and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013.
Based on the nature of products and the time between acquisition of assets for processing and their realisation
in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of
current or non-current classification of assets and liabilities.
iv) Recent accounting pronouncements effective from April 01, 2025:
The Ministry of Corporate Affairs (MCA) notifies new standards | amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. During the year, the MCA has
amended the Ind AS as below:
Ind AS 1- Presentation of Financial Statements:
The amendment relates to classification of liabilities as current or non-current and non-current liabilities with
covenants. In the context of classifying a liability as current, it removes the requirement of existence of a right to
defer settlement for at least 12 months after the reporting date and instead requires that the said right should
exist on the reporting date and have substance. The amendment also introduces guidance on classification of
liabilities with covenants.
Ind AS 7- Statement of Cash Flows:
The amendments requires to inform users of the Standalone Financial Statements of the existence of supplier
finance arrangements and explain the nature of the arrangements, the carrying amount of liabilities and the
range of payment due dates.
Ind AS 107- Financial Instruments Disclosures:
The amendments to add supplier finance arrangements as a factor that may cause concentration of liquidity risk.
Ind AS 12- Income Taxes:
The amendments to the Pillar Two Model Rules introduce a temporary mandatory exemption from deferred tax
accounting for top-up taxes and require companies to disclose their use of this exemption. This relief takes effect
immediately and applies retrospectively. In addition, the amendments mandate new disclosures to compensate
for any potential loss of information resulting from the exemption
Ind AS 21 - The Effects of Changes in Foreign Exchange Rates:
The amendments provide guidance on determining exchangeability between currencies and estimating spot
rates when a currency is not exchangeable.
The Company has evaluated the amendments and there is no material impact on its Standalone
Financial Statements.
c) Foreign currency transactions
i) Functional and presentation currency
Items included in the Standalone Financial Statements of the Company are measured using the currency of
the primary economic environment in which the Company operates (‘functional currency’). The Standalone
Financial Statements of the Company are presented in Indian currency (H), which is also the functional currency
of the Company.
ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates
of the transactions. Foreign exchange gain | (loss) resulting from the settlement of such transactions and from
the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates
are generally recognised in the Standalone Statement of Profit and Loss, except that they are deferred in other
equity if they relate to qualifying cash flow hedges. Foreign exchange differences regarded as an adjustment
to borrowing costs are presented in the Standalone Statement of Profit and Loss, within finance costs. All other
foreign exchange gain | (loss) presented in the Standalone Statement of Profit and Loss are on a net basis
within other income.
Non-monetary items that are measured at fair value and denominated in a foreign currency are translated
using the exchange rates at the date when the fair value was determined. Translation differences on assets and
liabilities carried at fair value are reported as part of the fair value gain | (loss). Non-monetary items that are
measured in terms of historical cost in a foreign currency are not revalued.
d) Revenue recognition
i) Revenue from operations
Revenue is recognised when control of goods is transferred to a customer in accordance with the terms of the
contract. The control of the goods is transferred upon delivery to the customers either at factory gate of the
Company or a specific location of the customer or when the goods are handed over to the freight carrier, as
per the terms of the contract. A receivable is recognised by the Company when the goods are delivered to the
customer as this represents the point in time at which the right to consideration becomes unconditional, as only
the passage of time is required before payment is due.
Revenue from services, including those embedded in contract for sale of goods, namely, freight and insurance
services mainly in case of export sales, is recognised upon completion of services.
Revenue is measured based on the consideration to which the Company expects to be entitled as per contract
with a customer. The consideration is determined based on the transaction price specified in the contract,
net of the estimated variable consideration. Accumulated experience is used to estimate and provide for the
variable consideration, using the expected value method and revenue is only recognised to the extent that it
is highly probable that a significant reversal will not occur. Contracts with customers are for short-term, at an
agreed price basis having contracted credit period ranging up to 180 days. The contracts do not grant any
rights of return to the customer. Returns of goods are accepted by the Company only on an exception basis.
Revenue excludes any taxes or duties collected on behalf of government that are levied on sales such as goods
and services tax.
Eligible export incentives are recognised in the year in which the conditions precedent are met and there is no
significant uncertainty about the collectability.
ii) Other income
Interest income from financial assets is recognised using the effective interest rate method. The effective
interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the
financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the
Company estimates the expected cash flows by considering all the contractual terms of the financial instrument
(for example, prepayment, extension, call and similar options), but does not consider the expected credit losses.
Dividends are recognised in the Standalone Statement of Profit and Loss only when the right to receive payment
is established; it is probable that the economic benefits associated with the dividend will flow to the Company
and the amount of the dividend can be measured reliably.
Insurance claims are accounted for on the basis of claims admitted and to the extent that there is no uncertainty
in receiving the claims.
Lease rental income is recognised on an accrual basis.
e) Income tax
Income tax expense comprises current tax and deferred tax. Current tax is the tax payable on the taxable income
of the current period based on the applicable income tax rates. Deferred income tax is recognised using the balance
sheet approach. Deferred income tax assets and liabilities are recognised for deductible and taxable temporary
differences arising between the tax base of assets and liabilities and their carrying amount.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the
end of the reporting period. The Management periodically evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate,
on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts. However, deferred tax liabilities are not recognised if they arise from the initial
recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset
or liability in a transaction other than a business combination that at the time of the transaction affects neither
accounting profit nor taxable profit | (tax loss). Deferred income tax is determined using tax rates (and laws) that
have been enacted or substantively enacted by the Standalone Balance Sheet date and are expected to apply when
the related deferred income tax asset is realised or the deferred income tax liability is settled.
The Company considers reversals of deferred income tax liabilities, projected future taxable income and tax planning
strategies in making the assessment of deferred tax liabilities and realisability of deferred tax assets. Based on the
level of historical taxable income and projections for future taxable income over the periods in which the deferred
income tax assets are deductible, the Management believes that the Company will realise the benefits of those
deductible differences.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax
liabilities are offset where the Company has a legally enforceable right to offset and intends either to settle on a net
basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or
directly in equity respectively.
f) Government grants
i) Government grants are recognised at their fair value where there is a reasonable assurance that the grant will
be received and the Company will comply with all the attached conditions.
ii) Government grants relating to the purchase of property, plant and equipment are included in non-current
liabilities as deferred income and are credited to profit or loss in proportion to depreciation over the expected
lives of the related assets and presented within other income.
iii) Government grants relating to income are deferred and recognised in the Standalone Statement of Profit
and Loss over the period necessary to match them with the costs that they are intended to compensate and
presented within other income.
iv) Government grants relating to export incentives, refer Note 1 (d).
g) Leases
As a lessee
The Company assesses whether a contract is, or contains a lease, at 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 commencement date of the lease, the Company recognises a right-of-use asset and a corresponding lease
liability for all lease arrangements in which it is a lessee, except for short-term leases (leases with a term of twelve
months or less), leases of low value assets and, for contract where the lessee and lessor has the right to terminate
a lease without permission from the other party with no more than an insignificant penalty. The lease expense of
such short-term leases, low value assets leases and cancellable leases, are recognised as an operating expense on
a straight-line basis over the term of the lease.
At the commencement date, lease liability is measured at the present value of the lease payments to be paid during
non-cancellable period of the contract, discounted using the incremental borrowing rate. The right-of-use assets
is initially recognised at the amount of the initial measurement of the corresponding lease liability, lease payments
made at or before commencement date less any lease incentives received and any initial direct costs.
Subsequently, the right-of-use asset is measured at cost less accumulated depreciation and any impairment losses.
Lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability
(using effective interest rate method) and reducing the carrying amount to reflect the lease payments made. The
right-of-use asset and lease liability are also adjusted to reflect any lease modifications or revised in-substance fixed
lease payments.
As a lessor
Leases for which the Company is a lessor are classified as finance or operating leases. Whenever the terms of the
lease substantially transfer all the risks and rewards of ownership to the lessee, the contract is classified as a finance
lease. All other leases are classified as operating leases.
Income from operating leases where the Company is a lessor is recognised as income on a straight-line basis over the
lease term unless the receipts are structured to increase in line with the expected general inflation to compensate for
the expected inflationary cost increases. The respective leased assets are included in the Standalone Balance Sheet
based on their nature. Leases of property, plant and equipment where the Company as a lessor has substantially
transferred all the risks and rewards are classified as finance lease. Finance leases are capitalised at the inception of
the lease at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The
corresponding rent receivables, net of interest income, are included in other financial assets. Each lease receipt is
allocated between the asset and interest income. The interest income is recognised in the Standalone Statement of
Profit and Loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance
of the asset for each period.
Under combined lease agreements, land and building are assessed individually.
h) Property, plant and equipment
Freehold land is carried at historical cost. All other items of property, plant and equipment (PPE) are stated at
acquisition cost net of accumulated depreciation and accumulated impairment losses, if any. Historical cost includes
expenditure that is directly attributable to the acquisition of the items. Acquisition cost may also include transfers
from equity of any gains or losses on qualifying cash flow hedges of foreign currency purchases of property,
plant and equipment.
Subsequent costs are included in the carrying amount of asset or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Company and the
cost of the item can be measured reliably. All other repairs and maintenance expenses are charged to the Standalone
Statement of Profit and Loss during the period in which they are incurred.
An item of PPE and any significant part initially recognised is derecognised upon disposal or when no future
economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of an item of
PPE is determined as the difference between the net disposal proceeds and the carrying amount of the asset and is
recognised in the Standalone Statement of Profit and Loss.
Fruit bearing plants qualify as Bearer plant under Ind AS 16. Expenditure incurred on cultivation of plantations up
to the date they become capable of bearing fruit is instead of are accumulated as Bearer plant under development
(Immature) and then capitalised as a Bearer plant (Mature) to be depreciated over their estimated useful life.
The plantation destroyed due to calamity, disease or any other reasons whether capitalised as Bearer plant (Mature)
or being carried under Bearer plant under development (Immature) is charged off to the Standalone Statement of
Profit and Loss.
Spare parts, stand-by equipment and servicing equipment are recognised as property, plant and equipment if they
are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes
and are expected to be used during more than one period.
Depreciation methods, estimated useful lives and residual value
The charge in respect of periodic depreciation is derived after determining an estimate of expected useful life and the
expected residual value of the assets at the end of its useful life. The lives are based on historical experience with
similar assets as well as anticipation of future events, which may impact their life.
Depreciation is computed on a pro-rata basis using the straight-line method from the month of acquisition |
installation until the last completed month before the assets are sold or disposed of.
^he useful lives have been determined based on technical evaluation done by the Management | experts, which are
different from the useful life prescribed in Part C of Schedule II to the Act, in order to reflect the actual usage of the
assets. The residual values are not more than 5% of the original cost of the asset. The residual values, useful lives
and method of depreciation of property, plant and equipment are reviewed annually and adjusted prospectively,
if appropriate.
The carrying amount of an asset is written down immediately to its recoverable amount if the carrying amount of the
asset is greater than its estimated recoverable amount.
Land accounted under finance lease is amortised on a straight-line basis over the primary period of lease.
Right-of-use are depreciated over their expected useful lives on the same basis as own assets. However, when there
is no reasonable certainty that ownership will be obtained by the end of the lease term, assets are depreciated over
the shorter of the lease term and their useful lives.
i) Capital work-in-progress
The cost of PPE under construction at the reporting date is disclosed as ‘Capital work-in-progress.’ The cost comprises
purchase price, borrowing cost if capitalisation criteria are met and directly attributable cost of bringing the asset to
its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase
price. Advances paid for the acquisition | construction of PPE which are outstanding at the Balance Sheet date are
classified under the 'Capital Advances'.
j) Investment properties
Property that is held for long-term rental yields or for capital appreciation or both, and that is not in use by the
Company, is classified as investment property. Land held for a currently undetermined future use is also classified as
an investment property. Investment property is measured at its acquisition cost, including related transaction costs
and where applicable, borrowing costs.
k) Intangible assets
Computer software includes enterprise resource planning application and other costs relating to such software that
provide significant future economic benefits. These costs comprise license fees and cost of system integration services.
Development expenditure qualifying as an intangible asset, if any, is capitalised, to be amortised over the economic
life of the product | patent.
Computer software cost is amortised over a period of three years using the straight-line method.
l) Impairment
The carrying amount of assets other than the land are reviewed at each Standalone Balance Sheet date to assess
if there is any indication of impairment based on internal | external factors. An impairment loss on such assessment
is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount of
the assets is net selling price or value in use, whichever is higher. While assessing value in use, the estimated future
cash flows are discounted to the present value by using weighted average cost of capital. A previously recognised
impairment loss is further provided or reversed depending on changes in the circumstances and to the extent that
carrying amount of the assets does not exceed the carrying amount that will be determined if no impairment loss
had previously been recognised.
m) Cash and cash equivalents
Cash and cash equivalents include cash in hand, demand deposits with bank and other short-term (three months
or less from the date of acquisition), highly liquid investments that are readily convertible into cash and which are
subject to an insignificant risk of changes in value.
n) Statement of cash flows
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments
and item of income or expenses associated with investing or financing cash flows. The cash generated from | (used)
in operating, investing and financing activities of the Company are segregated.
o) Trade receivables
Trade receivables are recognised at the amount of transaction price (net of variable consideration) when the right to
consideration becomes unconditional. These assets are held at amortised cost, using the effective interest rate (EIR)
method where applicable, less provision for impairment based on expected credit loss. Trade receivables overdue
more than 180 days are considered in which there is significant increase in credit risk.
p) Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year
which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within
12 months from the reporting date. They are recognised initially at their fair value and subsequently measured at
amortised cost using the EIR method.
q) Inventories
Inventories (other than harvested product of biological assets) are stated at cost and net realisable value, whichever
is lower. Cost is determined on periodic moving weighted average basis.
Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and
costs necessary to effect the sale.
Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventory to the
present location and condition. Cost includes the reclassification from equity of any gains or losses on qualifying
cash flow hedges relating to purchases of raw material but excludes borrowing costs.
Due allowances are made for slow | non-moving, defective and obsolete inventories based on estimates made
by the Company.
Items such as spare parts, stand-by equipment and servicing equipment that are not plant and machinery get
classified as inventory.
The harvested product of biological assets of the Company, that is, oil palm Fresh Fruit Bunch (FFB), is initially
measured at fair value less costs to sell on the point of harvest and subsequently measured at the lower of such
value or net realisable value.
r) Investments and other financial assets
Classification and measurement
The Company classifies its financial assets in the following measurement categories:
i) those to be measured subsequently at fair value (either through other comprehensive income, or through
profit or loss)
ii) those measured at amortised cost
iii) those measured at carrying cost for equity instruments of subsidiary companies and joint venture company
The classification depends on business model of the Company for managing financial assets and the contractual
terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive
income. For investments in debt instruments, this will depend on the business model in which the investment is held.
For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at
the time of initial recognition to account for the equity investments at fair value through other comprehensive income.
Debt instruments
Initial recognition and measurement
Financial asset is recognised when the Company becomes a party to the contractual provisions of the instrument. It
is recognised initially at fair value plus, in case the financial asset is not recorded at fair value through profit or loss,
transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial asset
carried at fair value through profit or loss are expensed in the Standalone Statement of Profit and Loss.
Subsequent measurement
Subsequent measurement of debt instruments depends on the business model of the Company for managing
the asset and the cash flow characteristics of the asset. There are three measurement categories into which the
Company classifies its debt instruments:
Measured at amortised cost
Financial assets that are held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows that are solely payments of principal and interest are subsequently measured at amortised
cost using the EIR method less impairment, if any. The amortisation of EIR and loss arising from impairment, if any is
recognised in the Standalone Statement of Profit and Loss.
Measured at fair value through other comprehensive income (FVTOCI)
Financial assets that are held within a business model whose objective is achieved by both, selling financial assets
and collecting contractual cash flows that are solely payments of principal and interest, are subsequently measured
at fair value through other comprehensive income. Fair value movements are recognised in the OCI. Interest income
measured using the EIR method and impairment losses, if any, are recognised in the Standalone Statement of Profit
and Loss. On derecognition, cumulative gain | (loss) previously recognised in OCI is reclassified from the equity to
other income in the Standalone Statement of Profit and Loss.
Measured at fair value through profit or loss (FVTPL)
A financial asset not classified as either amortised cost or FVTOCI is classified as FVTPL. Such financial assets
are measured at fair value with all changes in fair value, including interest income and dividend income, if any,
recognised as other income in the Standalone Statement of Profit and Loss.
Equity instruments
The Company subsequently measures all investments in equity instruments other than subsidiary, joint venture and
associate companies | entities and joint operation at fair value. The Company has elected to present fair value gains
and losses on such equity investments in other comprehensive income and there is no subsequent reclassification of
these fair value gains and losses to the Standalone Statement of Profit and Loss. Dividends from such investments
continue to be recognised in profit or loss as other income when the right to receive payment is established.
Changes in the fair value of financial assets at fair value through profit or loss are recognised in the Standalone
Statement of Profit and Loss. Impairment losses (and reversal of impairment losses) on equity investments measured
at FVTOCI are not reported separately from other changes in fair value.
Investments in subsidiary companies, associate companies and joint venture company
Investments in subsidiary companies, associate companies and joint venture company are carried at cost less
accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the
investment is assessed and written down immediately to its recoverable amount. On disposal of investments in
subsidiary companies, associate companies and joint venture company, the difference between net disposal
proceeds and the carrying amounts are recognised in the Standalone Statement of Profit and Loss.
Impairment of financial assets
The Company assesses on a forward-looking basis the expected credit losses associated with its financial assets
carried at amortised cost and FVTOCI debt instruments. The impairment methodology applied depends on whether
there has been a significant increase in credit risk. Note 29.8 details how the Company determines whether there has
been a significant increase in credit risk.
For trade and lease receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial
Instruments, which requires expected lifetime losses to be recognised from initial recognition of such receivables. The
Company computes expected lifetime losses based on a provision matrix, which takes into account historical credit
loss experience and adjusted for forward-looking information.
Derecognition
A financial asset is derecognised only when the Company has transferred the rights to receive cash flows from the
financial asset, the asset expires, or the Company retains the contractual rights to receive the cash flows of the
financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.
Where the Company has transferred an asset, the Company evaluates whether it has transferred substantially all
risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised through
the Standalone Statement of Profit and Loss or other comprehensive income as applicable. Where the Company
has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is
not derecognised.
Where the Company has neither transferred a financial asset nor retained substantially all risks and rewards of
ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of the
financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to
the extent of continuing involvement in the financial asset.
Financial liabilities
i) Classification as debt or equity
Financial liabilities and equity instruments issued by the Company are classified according to the substance of
the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
ii) Initial recognition and measurement
Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the
instrument. Financial liabilities are initially measured at the fair value.
iii) Subsequent measurement
Financial liabilities are subsequently measured at amortised cost using the effective interest rate method.
Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair
value recognised in the Standalone Statement of Profit and Loss.
iv) Derecognition
A financial liability is derecognised when the obligation specified in the contract is discharged or
cancelled or it expires.
s) Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the Standalone Balance Sheet where
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 assets and settle the liabilities simultaneously.
t) Derivatives and hedging activities
The Company holds derivative financial instruments such as foreign exchange forward, interest rate swaps, currency
swaps and currency options to mitigate the risk of changes in exchange rates or interest rates. The counterparty for
these contracts is generally a bank.
i) Financial assets or financial liabilities at fair value through profit or loss
This category has derivative financial assets or liabilities, which are not designated as hedges.
Although the Company believes that these derivatives constitute hedges from an economic perspective, they
may not qualify for hedge accounting under Ind AS 109, Financial Instruments. Any derivative that is either not
designated a hedge, or is so designated, but is ineffective as per Ind AS 109, is categorised as a financial asset
or financial liability, at fair value through profit or loss.
Derivatives not designated as hedges are recognised initially at fair value and attributable transaction costs
are recognised in net profit in the Standalone Statement of Profit and Loss when incurred. Subsequent to initial
recognition, these derivatives are measured at fair value through profit or loss and the resulting gains or losses
are included in other income or other expenses. Assets | liabilities in this category are presented as current
assets | current liabilities if they are either held for trading or are expected to be realised within 12 months after
the Standalone Balance Sheet date.
ii) Cash flow hedge
The Company designates certain foreign exchange forward and options contracts as cash flow hedges to
mitigate the risk of foreign exchange exposure on firm commitment and highly probable forecast transactions.
When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the
fair value of the derivative is recognised in other comprehensive income and accumulated in the cash flow
hedging reserve. Any ineffective portion of changes in the fair value of the derivative is recognised immediately
in the net profit in the Standalone Statement of Profit and Loss. If the hedging instrument no longer meets the
criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument
expires or is sold, terminated or exercised, the cumulative gain | (loss) on the hedging instrument recognised
in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve
until the forecasted transaction occurs. The cumulative gain | (loss) previously recognised in the cash flow
hedging reserve is transferred to the Standalone Statement of Profit and Loss upon the occurrence of the
related forecasted transaction.
If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging
reserve is reclassified to net profit in the Standalone Statement of Profit and Loss.
u) Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid
on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable
that some or all of the facility will be drawn down. If not, the fee is deferred until the draw down occurs.
Borrowings are removed from the Standalone Balance Sheet when the obligation specified in the contract is
discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred
or liabilities assumed, is recognised in profit or loss as other income | (expense).
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of
the liability for at least 12 months after the reporting period.
v) Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are
capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale.
Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use
or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure
on qualifying assets is deducted from the borrowing costs eligible for capitalisation. Other borrowing costs are
expensed in the period in which they are incurred.
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