4.1.2 Initial measurement of financial instruments

Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of
financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted
from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities
at fair value through profit or loss are recognised
immediately in profit or loss.

4.1.3 Day 1 profit or loss

When the transaction price of the financial
instrument differs from the fair value at origination
and the fair value is based on a valuation technique
using only inputs observable in market transactions,
the Company recognises the difference between
the transaction price and fair value in net gain on
fair value changes. In those cases where fair value
is based on models for which some of the inputs
are not observable, the difference between the
transaction price and the fair value is deferred and
is only recognised in profit or loss when the inputs
become observable, or when the instrument is
derecognised.

4.1.4 Measurement categories of financial instruments

a) Financial assets:

The Company classifies all of its financial assets
based on the business model for managing
the assets and the asset’s contractual terms,
measured at either:

• Fair value through profit or loss [FVTPL]

• Amortised cost and Effective Interest method

The Company measures debt financial assets
that meet the following conditions at amortised
cost:

• the financial asset is held within a business
model whose objective is to hold financial
assets in order to collect 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
on the principal amount outstanding.

All other financial assets are initially measured at
fair value and subsequently measured at FVTPL.

i) Amortised cost and Effective interest
method

The amortised cost of a financial asset is
the amount at which the financial asset is
measured at initial recognition minus the
principal repayments, plus the cumulative
amortisation using the effective interest
method of any difference between that initial
amount and the maturity amount, adjusted for
any loss allowance. On the other hand, the
gross carrying amount of a financial asset is
the amortised cost of a financial asset before
adjusting for any loss allowance.

ii) Financial assets at fair value through
profit or loss

Financial assets in this category are those
that are not held for trading and have been
either designated by management upon initial
recognition or are mandatorily required to be
measured at fair value under Ind AS 109.
Management only designates an instrument
at FVTPL upon initial recognition when the
following criteria is met. Such designation is
determined on an instrument-by-instrument
basis:

- The designation eliminates, or significantly
reduces, the inconsistent treatment that
would otherwise arise from measuring the
assets or recognising gains or losses on
them on a different basis.

Financial assets at FVTPL are recorded in the
balance sheet at fair value. Changes in fair
value are recorded in profit or loss including
Variable Additional Return (VaR) from the
funds.

In accordance with the principles under
Ind AS 109 (Financial Instruments) and
Ind AS 113 (Fair Value Measurement), the
Variable Additional Return (VaR) arising from
investments in Alternative Investment Funds
(AIFs) or Partnership Interests is recognised
through profit or loss as part of the net gain or
loss from fair value changes. The recognition
of VaR is guided by the waterfall distribution
mechanism specified in the respective fund
documentation and as per Company’s policy.
Subject to these terms, the VaR is estimated
and recognised progressively over the
remaining life of the fund, up to the expected
date of the realisation.

b) Financial liabilities

All financial liabilities are measured at amortised

cost.

i) Debt securities and other borrowed funds

After initial measurement, other borrowed
funds are subsequently measured at
amortised cost. Amortised cost is calculated
by taking into account any discount or
premium on issue funds, and costs that are
an integral part of the EIR.

ii) Financial liabilities at fair value through
profit or loss

Financial liabilities in this category are
those that are not held for trading and have
been either designated by management
upon initial recognition or are mandatorily
required to be measured at fair value under
Ind AS 109.

Financial liabilities at FVTPL are recorded in
the balance sheet at fair value. Changes in
fair value are recorded in the statement of
profit and loss. Interest incurred on financial
liabilities designated at FVTPL is accrued
in interest finance cost, respectively, using
the EIR, taking into account any discount/
premium and qualifying transaction costs
being an integral part of instrument.

iii) Financial liabilities and equity instruments

Financial instruments issued by the Company
are classified as either financial liabilities or
as equity in accordance with the substance
of the contractual arrangements and the
definitions of a financial liability and an equity
instrument.

An equity instrument is any contract that
evidences a residual interest in the assets of
a Company after deducting all of its liabilities.
Equity instruments issued by a Company are
recognised at the proceeds received, net of
direct issue costs.

Repurchase of the Company's own equity
instruments is recognised and deducted
directly in equity. No gain or loss is recognised
in profit or loss on the purchase, sale, issue
or cancellation of the Company's own equity
instruments.

c) Reclassification of financial assets and
financial liabilities

The Company does not reclassify its financial
assets subsequent to their initial recognition,
apart from the exceptional circumstances in
which the Company acquires, disposes of, or
terminates a business line. Financial liabilities
are never reclassified.

d) Derecognition of financial assets and
financial liabilities

i) Derecognition of financial assets due to
substantial modification of terms and
conditions

The Company derecognises a financial asset,
such as a loan to a customer, when the terms
and conditions have been renegotiated to the
extent that, substantially, it becomes a new
financial asset with the difference recognised
as a derecognition gain or loss, to the extent
that an impairment loss has not already been
recorded.

If the modification does not result in cash
flows that are substantially different, the
modification does not result in derecognition.
Based on the change in cash flows discounted
at the original EIR, the Company records a
modification gain or loss, to the extent that
an impairment loss has not already been
recorded.

ii) Derecognition of financial assets (other
than due to substantial modification of
terms and conditions)

A financial asset (or, where applicable, a part
of a financial asset or part of a Company
of similar financial assets) is derecognised
when the rights to receive cash flows from the
financial asset have expired. The Company
also derecognises the financial asset if it has
both transferred the financial asset and the
transfer qualifies for derecognition.

The Company has transferred the financial
asset if, and only if, either:

• The Company has transferred its
contractual rights to receive cash flows
from the financial asset; or

• It retains the rights to the cash flows,
but has assumed an obligation to pay
the received cash flows in full without
material delay to a third party under a
‘pass-through’ arrangement.

A transfer only qualifies for derecognition if
either:

• The Company has transferred
substantially all the risks and rewards of
the asset; or

• The Company has neither transferred nor
retained substantially all the risks and
rewards of the asset, but has transferred
control of the asset.

The Company considers control to be
transferred if and only if, the transferee has
the practical ability to sell the asset in its
entirety to an unrelated third party and is
able to exercise that ability unilaterally and
without imposing additional restrictions on
the transfer.

iii) Derecognition of financial liabilities

A financial liability is derecognised when the
obligation under the liability is discharged,
cancelled or expires.

Where an existing financial liability is
replaced by another from the same lender on
substantially different terms, or the terms of
an existing liability are substantially modified,
such an exchange or modification is treated
as a derecognition of the original liability
and the recognition of a new liability. The
difference between the carrying value of the
original financial liability and the consideration
paid, including modified contractual cash flow
recognised as new financial liability, would be
recognised in profit or loss.

e) Impairment of financial assets

The Company records allowance for expected
credit losses for all loans, other debt financial
assets not held at FVTPL, together with loan
commitment and financial guarantee contracts,
in this section all referred to as ‘financial
instruments’. Equity instruments are not subject
to impairment.

The Company follows ‘simplified approach’ for
recognition of impairment loss allowance on

trade receivables. The application of simplified
approach does not require the Company to
track changes in credit risk. Rather, it recognises
impairment loss allowance based on lifetime
ECLs at each reporting date, right from its initial
recognition. The Company uses a provision
matrix to determine impairment loss allowance
on portfolio of its receivables. The provision
matrix is based on its historically observed
default rates over the expected life of the
receivables. However if receivables contain a
significant financing component, the Company
chooses as its accounting policy to measure the
loss allowance by applying general approach to
measure ECL.

For all other financial instruments, the Company
recognises lifetime ECL when there has been a
significant increase in credit risk (SICR) since
initial recognition. If, on the other hand, the
credit risk on the financial instrument has not
increased significantly since initial recognition,
the Company measures the loss allowance for
that financial instrument at an amount equal to
12-month expected credit losses (12m ECL).
The assessment of whether lifetime ECL should
be recognised is based on significant increases
in the likelihood or risk of a default occurring
since initial recognition instead of an evidence
of a financial asset being credit-impaired at the
reporting date or an actual default occurring.

Lifetime ECL represents the expected credit
losses that will result from all possible default
events over the expected life of a financial
instrument. In contrast, 12m ECL represents the
portion of lifetime ECL that is expected to result
from default events on a financial instrument that
are possible within 12 months after the reporting
date.

The measurement of expected credit losses
is a function of the probability of default, loss
given default (i.e. the magnitude of the loss if
there is a default) and the exposure at default.
The assessment of the probability of default and
loss given default is based on historical data
adjusted by forward-looking information. As
for the exposure at default,(EAD) for financial
assets, this is represented by the assets’ gross
carrying amount at the reporting date; for loan
commitments and financial guarantee contracts,
the exposure includes the amount drawn down

as at the reporting date, together with any
additional amounts expected to be drawn down
in the future by default date determined based on
historical trend, the Company’s understanding of
the specific future financing needs of the debtors,
and other relevant forward-looking information.

For financial assets, the expected credit loss
(ECL) is estimated as the difference between
all contractual cash flows that are due to the
Company in accordance with the contract and
all the cash flows that the Company expects
to receive, discounted at the original effective
interest rate. The Company recognises an
impairment gain or loss in profit or loss for all
financial instruments with a corresponding
adjustment to their carrying amount through a
loss allowance account.

If a financial instrument includes both a loan (i.e.
financial asset) and an undrawn commitment
(i.e. loan commitment) component and the
Company cannot separately identify the ECL
on the loan commitment component from those
on the financial asset component, the ECL on
the loan commitment have been recognised
together with the loss allowance for the financial
asset. To the extent that the combined expected
credit losses exceed the gross carrying amount
of the financial asset, the expected credit losses
have been recognised as a provision. Also,
for other loan commitments and all financial
guarantee contracts, the loss allowance has
been recognised as a provision.

f) Write off

Financial assets are written off either partially or
in their entirety only when the Company has no
reasonable expectation of recovery.

4.2 Determination of fair value

The Company measures financial instruments, at
fair value at each balance sheet date. 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 and minimising the use of unobservable
inputs. In order to show how fair values have been
derived, financial instruments are classified based on
a hierarchy of valuation techniques, as summarised
below:

• Level 1 financial instruments -Those where the
inputs used in the valuation are unadjusted quoted
prices from active markets for identical assets
or liabilities that the Company has access to at
the measurement date. The Company considers
markets as active only if there are sufficient
trading activities with regards to the volume and
liquidity of the identical assets or liabilities and
when there are binding and exercisable price
quotes available on the balance sheet date.

• Level 2 financial instruments-Those where
the inputs that are used for valuation and are
significant, are derived from directly or indirectly
observable market data available over the entire
period of the instrument’s life.

• Level 3 financial instruments -Those that include
one or more unobservable input that is significant
to the measurement as whole. For assets and
liabilities that are recognised in the Standalone
Financial Information on a recurring basis, the
Company determines whether transfers have
occurred between levels in the hierarchy by re¬
assessing categorisation (based on the lowest
level input that is significant to the fair value
measurement as a whole) at the end of each
reporting period. The Company periodically
reviews its valuation techniques including the
adopted methodologies and model calibrations.

In accordance with the principles under Ind AS 109
(Financial Instruments) and Ind AS 113 (Fair Value
Measurement), the Variable Additional Return (VaR)
arising from investments in Alternative Investment
Funds (AIFs) or Partnership Interests is recognised
through profit or loss as part of the net gain or loss
from fair value changes. The recognition of VaR
is guided by the waterfall distribution mechanism
specified in the respective fund documentation and
as per Company’s policy. Subject to these terms, the
VaR is estimated and recognised progressively over
the remaining life of the fund, up to the expected
date of the realisation.

Therefore, the Company applies various techniques
to estimate the credit risk associated with its
financial instruments measured at fair value, which
include a portfolio-based approach that estimates
the expected net exposure per counterparty over
the full lifetime of the individual assets, in order to
reflect the credit risk of the individual counterparties
for non-collateralised financial instruments.

The Company evaluates the levelling at each
reporting period on an instrument-by-instrument
basis and reclassifies instruments when necessary
based on the facts at the end of the reporting period.

4.3 Revenue from contract with customer

Revenue (other than for those items to which Ind
AS 109 Financial Instruments are applicable) is
measured at transaction price i.e. the amount of
consideration to which the Company expects to be
entitled in exchange for transferring promised goods
or services to the customer, excluding amounts
collected on behalf of third parties. The Company
consider the terms of the contract and its customary
business practices to determine the transaction
price. Where the consideration promised is variable,
the Company excludes the estimates of variable
consideration that are constrained.

The Company recognises revenue from contracts
with customers based on a five step model as set
out in Ind AS 115 - Revenue from contracts with
customers:

Step 1: Identify contract(s) with a customer: A
contract is defined as an agreement between two
or more parties that creates enforceable rights and
obligations and sets out the criteria for every contract
that must be met.

Step 2: Identify performance obligations in the
contract: A performance obligation is a promise
in a contract with a customer to transfer a good or
service to the customer.

Step 3: Determine the transaction price: The
transaction price is the amount of consideration
to which the Company expects to be entitled in
exchange for transferring promised goods or
services to a customer, excluding amounts collected
on behalf of third parties.

Step 4: Allocate the transaction price to the
performance obligations in the contract: For a
contract that has more than one performance
obligation, the Company allocates the transaction
price to each performance obligation in an amount
that depicts the amount of consideration to which
the Company expects to be entitled in exchange for
satisfying each performance obligation.

Step 5: Recognise revenue when (or as) the
Company satisfies a performance obligation.

The Company recognises revenue from the following
sources:

a. Revenue from fund management services is
recognised over the tenure in accordance with
the terms and conditions of the investment
management agreement between the Company
and the Fund for which the Company acts as a
fund manager.

b. Fee income including advisory fees is accounted
over the period as the customer simultaneously
receives and consumes the benefits, as the
services are rendered.

c. In accordance with the principles under
Ind AS 109 (Financial Instruments) and
Ind AS 113 (Fair Value Measurement), the
Variable Additional Return (VaR) arising from
investments in Alternative Investment Funds
(AIFs) or Partnership Interests is recognised
through profit or loss as part of the net gain or
loss from fair value changes. The recognition
of VaR is guided by the waterfall distribution
mechanism specified in the respective fund
documentation. Subject to these terms, the VaR
is estimated and recognised progressively over
the remaining life of the fund, up to the expected
date of the realisation.

4.4 Income from alternative investment fund / Debt
securities

a. Revenue on account of distribution from alternate
investment funds is recognised on the receipt of
the distribution letter or when right to receive is
established.

b. Interest income on financial assets measured at
FVTPL is recognised on receipt basis.

4.5 Selling and distribution expenses:

The Company pays Selling and distribution cost for
fund raise in various Alternative Investment Fund
(AIF) strategies comprising of upfront and trail
payments as per their respective agreements.

The cost is amortised over the tenure of the fund.
The unamortised selling and distribution expense is
classified as prepaid expenses under other current
assets and other non-current assets.

Trail payments of Selling and distribution which are
not accrued and not due are considered as uncalled
liability. The uncalled liabilities are disclosed under
Contingent liabilities and commitments.

4.6 Leases (IND AS 116)

Leases as a Lessee

The Company assesses at contract inception
whether a contract is, or contains, a lease. That is,
if the contract conveys the right to control the use of
an identified asset for a period of time in exchange
for consideration. The Company applies a single
recognition and measurement approach for all
leases, except for short-term leases and leases of
low value assets. The Company recognises lease
liabilities to make lease payments and right-of-use
assets representing the right to use the underlying
assets.

Rights-of-use assets

The Company recognises right-of-use assets at the
commencement date of the lease (i.e the date of
underlying asset is available for use). Rights-of-use
assets are measured at cost, less any accumulated
depreciation and impairment losses and adjusted
for any remeasurement of lease liabilities. The
cost of rights-of-use assets includes the amount
of lease liabilities recognised, initial direct costs
incurred, and lease payments made at or before
the commencement date less any lease incentives

received. Rights-of-use assets are amortised on a
straight-line basis over the shorter of the lease term
and the estimated useful lives of the assets.

Lease Liabilities

At the commencement date of the lease, the
Company recognises lease liabilities measured at
the present value of lease payments to be made over
the lease term. The lease payments include fixed
payments (including in substance fixed payments)
less any lease incentives receivable and amounts
expected to be paid under residual value guarantees.
In calculating the present value of lease payments,
the Company uses its incremental borrowing rate
at the lease commencement date as the interest
rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made.
In addition, the carrying amount of lease liabilities is
remeasured if there is a modification, a change in
lease term, a change in lease payments or a change
in the assessment of an option to purchase the
underlying asset.

Short term lease

The Company has elected not to recognise right of
use asset and lease liabilities for short term leases
of property that has lease term of 12 months or less.
The Company recognises lease payment associated
with these leases as an expense on a straight-line
basis over lease term.

4.7 Earnings per share

Basic earnings per share is computed by dividing
the Profit for the year attributable to the equity
shareholders for the year by the weighted average
number of equity shares outstanding for the year.

Diluted earnings per share reflect the potential
dilution that could occur if securities or other
contracts to issue equity shares were exercised
or converted during the year. Diluted earnings per
share is computed by dividing the Profit for the
year attributable to the equity shareholders for the
year by weighted average number of equity shares
considered for deriving basic earnings per share
and weighted average number of equity shares
that could have been issued upon conversion of all
dilutive potential equity shares.

4.8 Foreign currency transactions

The Standalone Financial Information are presented
in Indian Rupees which is also functional currency
of the company. Transactions in currencies other
than Indian Rupees (i.e. foreign currencies) are
recognised at the rates of exchange prevailing at
the dates of the transactions. At the end of each
reporting period, monetary items denominated in
foreign currencies are retranslated at the rates
prevailing at that date. Non-monetary items carried at
fair value that are denominated in foreign currencies
are retranslated at the rates prevailing at the date
when the fair value was determined. Non-monetary
items that are measured in terms of historical cost in
a foreign currency are not retranslated.

Exchange differences on monetary items are
recognised in profit or loss in the period in which they
arise.

4.9 Retirement and other employee benefit

Provident fund and national pension scheme

The Company contributes to a recognised provident
fund and national pension scheme which is a
defined contribution scheme. The contributions are
accounted for on an accrual basis and recognised in
the statement of profit and loss.

Gratuity

The Company’s gratuity scheme is a defined benefit
plan. The Company’s net obligation in respect of the
gratuity benefit scheme is calculated by estimating
the amount of future benefit that the employees have
earned in return for their service in the current and
prior periods, that benefit is discounted to determine
its present value, and the fair value of any plan
assets, if any, is deducted. The present value of the
obligation under such benefit plan is determined
based on independent actuarial valuation using the
Projected Unit Credit Method. Benefits in respect
of gratuity are funded with an Insurance Company
approved by Insurance Regulatory and Development
Authority (IRDA).

Remeasurements, comprising of actuarial gains
and losses, the effect of the asset ceiling, excluding
amounts included in net interest on the net defined
benefit liability and the return on plan assets
(excluding amounts included in net interest on the net
defined benefit liability), are recognised immediately
in the Standalone Financial Statement of Assets
and Liabilities with a corresponding debit or credit to

retained earnings through OCI in the period in which
they occur.

Remeasurements are not reclassified to Standalone
Statement of Profit and Loss in subsequent periods.

Past service costs are recognised in Standalone
Statement of Profit and Loss on the earlier of:

- The date of the plan amendment or curtailment,
and

- The date that the Company recognises related
restructuring costs

Net interest is calculated by applying the discount
rate to the net defined benefit liability or asset. The
Company recognises the following changes in the
net defined benefit obligation as an expense in the
Standalone Statement of Profit and Loss:

- Service costs comprising current service
costs, past-service costs, gains and losses on
curtailments and non-routine settlements; and

- Net interest expense or income

Compensated Absences

The eligible employees of the Company are
permitted to carry forward certain number of their
annual leave entitlement to subsequent years,
subject to a ceiling. The Company recognises the
charge in the Standalone Statement of Profit and
Loss and corresponding liability on such non-vesting
accumulated leave entitlement based on a valuation
by an independent actuary. The cost of providing
annual leave benefits is determined using the
projected unit credit method.

4.10 Share-based payment arrangements

Certain employees of the Company have been
granted equity-settled Employee Stock Option Plans
(ESOPs) by the ultimate parent company (Edelweiss
Financial Services Limited). The Company
recognises a cost with respect to the services
received from the said employees measured by
reference to the fair value of the equity instruments
granted by the ultimate parent at the grant date.

The fair value determined at the grant date is expensed
over the vesting period, based on the Company’s
estimate of equity instruments that will eventually
vest, with a corresponding increase in deemed
capital contribution from the ultimate parent. At the
end of each reporting period, the Company revises
its estimate of the number of equity instruments

expected to vest. The impact of the revision of the
original estimates, if any, is recognised in profit or
loss such that the cumulative expense reflects the
revised estimate, with a corresponding adjustment to
the deemed capital contribution. In cases where the
share options granted vest in instalments over the
vesting period, the Company treats each instalment
as a separate grant, because each instalment has a
different vesting period, and hence the fair value of
each installment differs.

4.11 Property, plant and equipment

Property plant and equipment is stated at cost
excluding the costs of day-to-day servicing,
less accumulated depreciation and accumulated
impairment in value. Changes in the expected useful
life are accounted for by changing the amortisation
period or methodology, as appropriate, and treated
as changes in accounting estimates.

Subsequent costs incurred on an item of property,
plant and equipment is recognised in the carrying
amount thereof when those costs meet the
recognition criteria as mentioned above. Repairs
and maintenance are recognised in profit or loss as
incurred.

Depreciation is recognised so as to write off the cost
of assets (other than freehold land and properties
under construction) less their residual values over
their useful lives. Depreciation is provided on a
written down value basis from the date the asset is
ready for its intended use or put to use whichever
is earlier. In respect of assets sold, depreciation is
provided upto the date of disposal.

As per the requirement of Schedule II of the
Companies Act, 2013, the Company has evaluated
the useful lives of the respective fixed assets which
are as per the provisions of Part C of the Schedule II
for calculating the depreciation.

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. The carrying amount
of those components which have been separately
recognised as assets is derecognised at the time of
replacement thereof. Any gain or loss arising on the
disposal or retirement of an item of property, plant and
equipment is determined as the difference between
the sales proceeds and the carrying amount of the
asset and is recognised in profit or loss.The date of
disposal of an item of property, plant and equipment
is the date the recipient obtains control of that item
in accordance with the requirements for determining
when a performance obligation is satisfied in Ind AS
115.

The residual values, useful lives and methods of
depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted
prospectively, if appropriate.

4.12 Intangible assets

Intangible assets are stated at cost less accumulated
amortisation and impairment. Intangible assets
are amortised over their respective individual
estimated useful lives on a straight-line basis,
from the date that they are available for use. The
estimated useful life of an identifiable intangible
asset is based on a number of factors including the
effects of obsolescence, demand, competition, and
other economic factors. Amortisation methods and
useful lives are reviewed periodically including at
each financial year end. Changes in the expected
useful life, or the expected pattern of consumption of
future economic benefits embodied in the asset, are
accounted for by changing the amortisation period or
methodology, as appropriate, which are then treated
as changes in accounting estimates.

Estimate useful life of software is considered as 3
years.

4.13 Impairment of non-current assets

The Company assesses at each balance sheet date
whether there is any indication that an asset may
be impaired based on internal/external factors. If any
such indication exists, the Company estimates the
recoverable amount of the asset. If such recoverable
amount of the asset or the recoverable amount of
cash generating unit which the asset belongs to is
less than its carrying amount, the carrying amount

is reduced to its recoverable amount. The reduction
is treated as an impairment loss and is recognised
in the Standalone Statement of Profit and Loss. If
at the balance sheet date there is an indication that
a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and
the asset is reflected at the recoverable amount
subject to a maximum of the depreciable historical
cost.

4.14 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, that are readily convertible to a known amount
of cash and subject to an insignificant risk of changes
in value.