NOTE 1 - SUMMARY OF MATERIAL ACCOUNTING POLICIES:
This note provides a list of the material accounting policies adopted in the preparation of these standalone financial statements. These accounting
policies have been consistently applied to all the years presented by the Company unless otherwise stated.
These standalone financial statements were authorised for issue by the Company’s Board of Directors on May 14, 2025.
A. Basis of preparation
(i) Compliance with Ind AS and Schedule III
The standalone financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under the
Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time) and presentation requirements of Division II of
Schedule III of the Companies Act, 2013, (Ind AS compliant schedule III), as applicable to these standalone financial statements.
(ii) Historical cost convention
The standalone financial statements have been prepared on historical cost basis, except the following which are measured at fair value:
• certain financial assets and liabilities (including derivative instruments)
• defined benefit plans - plan assets
(iii) New and amended standards adopted by the Company
The Ministry of Corporate Affairs vide notification dated 9 September 2024 and 28 September 2024 notified the Companies (Indian
Accounting Standards) Second Amendment Rules, 2024 and Companies (Indian Accounting Standards) Third Amendment Rules, 2024,
respectively, which amended/ notified certain accounting standards (see below), and are effective for annual reporting periods beginning
on or after 1 April 2024:
• Insurance contracts - Ind AS 117; and
• Lease Liability in Sale and Leaseback - Amendments to Ind AS 116
These amendments did not have any material impact on the amounts recognised in current and prior periods and are not expected to
significantly affect the future periods.
(iv) Current and non-current classification
All Assets and Liabilities have been classified as current or non-current as per the Company’s normal operating cycle (12 months) and
other criteria set out in the Schedule III to the Companies Act, 2013.
B. Property, plant and equipment
Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation and
impairments, if any. Historical cost includes non-refundable tax and duties, freight and other incidental expenditure that is directly attributable
to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount 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.
Capital work-in-progress comprises the cost of assets that are not yet ready for their intended use at the year end and are stated at historical
cost and impairment, if any.
C. Leases
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.
As a lessee
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.
i) Right-of-use assets
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available
for use). Right-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 right-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. Right-of-use assets
are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis and if the Company is
reasonably certain to exercise a purchase option, the right-of-use assets is depreciated over the underlying asset’s useful life. The
estimated useful lives of the assets are as follows:
ii) 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. Contracts may contain both lease and non-lease components. The Company allocates the consideration in
contract to the lease and non-lease components based on their relative stand-alone prices.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is
generally the case for the leases in the Company, the lessee’s incremental borrowing rate is used, being the rate that the individual
lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-to-use asset in a similar economic
environment with similar terms, security and conditions.
The Company is exposed to potential future increases in variable lease payments based on the index or rate, which are not included in
the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is
reassessed and adjusted against the right-of-use assets.
iii) Short-term leases and leases of low-value assets
Payments associated with short-term leases of equipment and all leases of low-value assets are recognised on a straight-line basis as
an expense in profit or loss. Short-term leases are leases with lease term of 12 months or less. Low value assets comprises IT equipment
and small items of office furniture and equipment.
As a lessor
Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the lease term.
D. Investment properties
Properties comprises of land and buildings and office premises that are held for long-term rentals yields or for capital appreciation or both,
and that are not occupied by the Company, are classified as investment properties.
Investment properties are measured initially at cost, including related transaction costs. Subsequent to initial recognition, investment properties
are stated at cost less accumulated depreciation and accumulated impairment loss, if any.
I nvestment properties which includes buildings are depreciated using the straight-line method over their estimated useful lives i.e. 60 years.
The useful life has been determined based on historical experience with similar assets as well as anticipation of future events.
E. Goodwill and other intangible assets
(i) Goodwill
Goodwill is not amortised but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that
it might be impaired, and is carried at cost less accumulated impairment losses.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating
units or group of cash-generating units that are expected to benefit from the business combination in which goodwill arose. The units
or groups of units are identified at the lowest level at which goodwill is monitored for internal management purposes, which in our case
are the operating segments.
(ii) Other intangible assets
Description of Asset Useful life
Computer software 4 years
Product registration 4 years
Assets individually costing INR 25,000 or less are amortised fully in the year of acquisition.
F. Investments in subsidiaries and joint venture
The investments in subsidiaries and joint venture are carried in the financial statements at historical cost except when the investment, or a
portion thereof, is classified as held for sale, in which case measured at lower of carrying amount and fair value less costs to sell.
Investments in subsidiaries and joint venture carried at cost are tested for impairment in accordance with Ind AS 36 Impairment of Assets. The
carrying amount of the investment is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount,
any impairment loss recognised reduces the carrying amount of the investment.
G. Investments and other financial assets
(i) Classification
The Company classifies its financial assets in the following measurement categories:
• those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement of
Standalone Profit and Loss), and
• those measured at amortised cost.
The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in the Statement of Standalone Profit and 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 investment at fair value through other comprehensive income.
(ii) Recognition and derecognition
Regular way purchases and sales of financial assets are recognised on trade-date, being the date on which the Company commits to
purchase or sale the financial asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets
have expired or have been transferred and the group has transferred substantially all the risks and rewards of ownership.
(iii) Measurement
At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value
through the Statement of Standalone Profit and Loss, transaction costs that are directly attributable to the acquisition of the financial
asset. Transaction costs of financial assets carried at fair value through the Profit or Loss are expensed in the Statement of Standalone
Profit and Loss.
(a) Debt Instruments
Subsequent measurement of debt instruments depends on the Company’s business model 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.
- Amortised cost:
Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal
and interest are measured at amortised cost. Interest income from these financial assets is included in other income using the
effective interest rate method. Any gain or loss arising on derecognition is recognised directly in the Statement of Standalone
Profit and Loss and presented as separate line item in other expenses. Impairment losses are presented as separate line
item in the Statement of Standalone Profit and Loss. Instruments under this category comprises of investment in certain
equity shares in the nature of debt instruments, redeemable preference shares, bonds, debentures, commercial papers,
corporate deposits, trade receivables, cash and cash equivalents, bank balances other than cash and cash equivalents, loans
to employees and other financial assets.
- Fair Value through other comprehensive income (FVOCI)
Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows
represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI).
The Company does not have debt instrument measured under this category.
- Fair Value through Profit or Loss (FVPL)
Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss. A gain or
loss on a debt investment that is subsequently measured at fair value through profit or loss is recognised in the Statement of
Standalone Profit and Loss and presented on net basis within other income in the period in which it arises. Interest income
from these financial assets is included in other income. Debt instrument under this category comprises of investments in
mutual funds, Exchange-traded funds (ETF) and Infrastructure Investment Trust (InvIT) that do not qualify for measurement at
either at amortised cost or FVOCI.
(b) Equity instruments
The Company subsequently measures all equity investments at fair value. Where the Company’s management has elected to
present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification
of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments
are recognised in Statement of Standalone Profit and Loss as other income when the Company’s right to receive payments is
established.
Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from
other changes in fair value. Instruments under this category comprises of investment in quoted and unquoted equity instruments.
(iv) Impairment of financial assets
The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost and
FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk.
Note 42 details how the Company determines whether there has been a significant increase in credit risk.
(v) Income recognition
Interest income
I nterest income from financial assets at fair value through profit or loss is disclosed as interest income within other income. Interest
income on financial assets at amortised cost is calculated using the effective interest method is recognised in the Statement of
Standalone Profit and Loss as part of other income.
Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for financial
assets that subsequently become credit-impaired. For credit-impaired financial assets the effective interest rate is applied to the net
carrying amount of the financial asset (after deduction of the loss allowance).
Dividends
Dividends are received from financial assets at fair value through profit or loss and at FVOCI. Dividends are recognised as other income
in the Statement of Standalone Profit and Loss when the right to receive payment is established. This applies even if they are paid out
of pre-acquisition profits, unless the dividend clearly represents a recovery of part of the cost of the investment.
H. Impairment of non-financial assets
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more
frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events
or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by
which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of
disposal and value in use. For the purposes 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).
Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each
reporting period.
I. Inventories
Raw materials, stores and spares, packing materials, work in progress, traded and finished goods are stated as lower of cost and net realisable
value. Cost of Raw materials, stores and spares, packing materials and traded goods comprises of cost of purchases. Cost of work-in-progress
and finished goods comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the
latter being allocated on the basis of normal operating capacity. Cost of inventories also include all other costs incurred in bringing the
inventories to their present location and condition. Costs are assigned to individual items of inventory on the basis of monthly moving weighted
average. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price
in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale.
Materials and other supplies held for use in production of inventories (work-in-progress and finished goods) are not written down below the
cost if the finished products in which they will be used are expected to sell at or above the cost.
By-products and unserviceable / damaged finished goods are valued at estimated net realisable value.
J. Trade receivables
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business and reflects
Company’s unconditional right to consideration (that is, payment is due only on the passage of time). Trade receivables are recognised initially
at the transaction price as they do not contain significant financing components. The Company holds the trade receivables with the objective
of collecting the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method, less
loss allowance.
The Company applies the simplified approach required by Ind AS 109, which requires expected lifetime losses to be recognised from initial
recognition of the receivables.
K. Cash and cash equivalents
For the purpose of presentation in the Statement of Standalone cash flows, cash and cash equivalents includes cash on hand, deposits held
at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and bank overdrafts. Bank overdrafts
are shown within borrowings in current liabilities in the balance sheet.
L. Employee benefits
(i) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end
of the period in which the employees render the related service are recognised in respect of employee’s services up to the end of the
reporting and are measured at the amounts expected to be paid when the liabilities are settled. The liability are presented as current
employee benefits obligation in the balance sheet.
The Company recognises a liability and an expense for bonuses. The Company recognises a provision where contractually obliged or
where there is a past practice that has created a constructive obligation.
(ii) Long-term employee benefit obligations
Leave Obligation:
The liabilities for leave obligation which are not expected to be settled wholly within 12 months after the end of the period in which
the employee render the related services, are measured as the present value of expected 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 market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related
obligations. Remeasurements as a result of experience adjustments and changes in actuarial assumptions (i.e. actuarial losses/ gains)
are recognised in the Statement of Standalone Profit and Loss. These obligations are valued annually by independent qualified actuary.
Long Service awards:
The Company provides for the long service awards for eligible employees as per the scheme announced by the Company. The liability
towards the long services awards is provided at each balance sheet date on the basis of independent actuary valuation. Remeasurements
as a result of experience adjustments and changes in actuarial assumptions are recognised in Statement of Standalone Profit and Loss.
(iii) Post-employment obligations
Defined benefit plan - Gratuity:
The liability or asset recognised in the balance sheet in respect of gratuity 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 defined benefit obligation is calculated annually by actuaries using
the projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference
to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related
obligation.
The net interest cost, calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of
the plan assets, is recognised as employee benefit expenses in the Statement of Standalone Profit and Loss. Remeasurement gains
and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they
occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the
balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised
immediately in Statement of Standalone Profit and Loss as past service cost.
Defined Contribution Plans :
The Company pays contributions to provident fund, employee’s state insurance scheme and labour welfare fund to publicly administered
funds as per the local regulations. The Company has no further legal or constructive obligations once the contributions have been paid.
The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense
when they are due.
Defined Contribution Plan - Superannuation Scheme:
The Company pays contribution to the superannuation scheme, a defined contribution scheme, administered by the insurance company.
The Company has no further legal or constructive obligation to the scheme apart from the contribution made on a monthly basis. The
contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when
they are due. The scheme is funded with an insurance Company in the form of qualifying insurance policies. Prepaid contributions are
recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
(iv) Termination benefits
Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or when an
employee accepts voluntary redundancy in exchange for these benefits. The Company recognises termination benefits at the earlier of
the following dates: (a) when the Company can no longer withdraw the offer of those benefits; and (b) when the entity recognises costs
for a restructuring that is within the scope of Ind AS 37 and involves the payment of terminations benefits. In the case of an offer made
to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the
offer. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.
The Company also has a termination benefit plan for its employees, i.e. Medical Voluntary retirement scheme in which employees
suffering from continued ill-health not amounting to occupational disease and thereby unable to perform normal duties of their post.
Under the Scheme, the benefits will be given for a retired employee for a maximum period up to 10 years or age of retirement, whichever
is earlier. In case of early death of the employee, the legal heir of the employee shall get 50% of separation benefit for the rest of the
benefit period. The costs of providing benefits under the said plan is determined on the basis of actuarial valuation at each year-end.
Separate actuarial valuation is carried out for the plan using the projected unit credit method. Remeasurements as a result of experience
adjustments and changes in actuarial assumptions (i.e. actuarial losses/ gains) are recognised in the Statement of Standalone Profit and
Loss. This Scheme is not funded.
M. Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost.
Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired.
N. 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 after the reporting period. They are
recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.
O. Derivatives that are not designated as hedges
The Company enters into certain derivative contracts to hedge risks which are not designated as hedges. Such derivatives are initially
recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured to their fair value at the end of each
reporting period and impact is recorded in the Statement of Standalone Profit and Loss.
P. Revenue recognition
Revenue from contracts with customers of chemical division and environmental & biotech division is recognized on transfer of control of goods
or services to the customer at an amount that reflects the consideration to which the Company is expected to be entitled to in exchange for
those goods or services.
Revenue towards satisfaction of a performance obligation is measured at the amount of 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 discounts 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 recognized only to the extent that it is highly probable that the amount will not be subject to significant
reversal when uncertainty relating to its recognition is resolved.
The Company does not have any contracts where the period between the transfer of the promised goods or services to the customer and
payment by the customer exceeds one year, except for retention money towards performance under the contract which are retained for reasons
other than the provision of finance to the customer. As a consequence, the Company does not adjust any of the transaction prices for the time
value of money.
The Company collects goods and services tax (GST) on behalf of the government and, therefore, these are not economic benefits flowing to the
Company. Hence, it is excluded from revenue.
Sale of goods:
Revenue from sale of goods is recognized when the Company satisfies a performance obligation in accordance with the provisions of contract
with the customer. This is achieved when control of the goods has been transferred to the customer, which is generally determined when title,
ownership, risk of obsolescence and loss pass to the customer and the Company has present right to payment, all of which occurs at a point
in time upon shipment or delivery of goods.
Sale of services
Revenue from processing of chemical products on job work basis is recognized at point in time upon dispatch of processed products. Revenue
from waste management services is recognised over the period of time as per the terms of the contract with customers.
In certain customer contracts for export of goods, shipping and handling services are treated as a distinct separate performance obligation and
the Company recognises revenue for such services at a point in time when the performance obligation is completed.
Other operating revenue
Export incentives on export of goods are recognised where there is a reasonable assurance that the Company will comply with the conditions
attached to it and incentive will be received. Export incentives are included under ‘Other operating revenue’.
Revenue from sale of scrap material is recognised at point in time upon disposal.
Q. Dividends
Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at the discretion of the Company, on
or before the end of the reporting period but not distributed at the end of the reporting period.
R. Government grants
Grants from the government 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 attached conditions.
Government grants are recognised in the statement of standalone profit and loss on a systematic basis over the periods in which the Company
recognises as expenses the related costs for which the grants are intended to compensate. Other government grants (grants related to
income) are recognized as income over the periods necessary to match them with the costs for which they are intended to compensate, on
a systematic basis. Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of
providing immediate financial support with no future related costs are recognized in the statement of standalone profit and loss in the period
in which they become receivable.
Grants related to income are presented under Other Operating Revenue or Other Income in the statement of standalone profit and loss
depending upon the nature of the underlying grant, except for grants received in the form of rebate or exemptions related to expenditures,
which are deducted in reporting the related expense.
S. Income tax
Income tax expense comprises current tax expense and deferred tax.
The current tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to
interpretation and considers whether it is probable that a taxation authority will accept on uncertain tax treatment. The Company measures
its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the
resolution of the uncertainty.
Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and
their carrying amounts in the standalone financial statements. However, deferred tax liabilities are not recognised if they arise from the initial
recognition of Goodwill. Deferred 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 tax is
determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to
apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable
amounts will be available to utilise those temporary differences and losses.
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. Deferred tax assets and liabilities are offset where there is a legally
enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to the same taxation authority.
Current and deferred tax is recognised in the Statement of Standalone Profit and 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.
T. Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (‘CODM’).
The board of directors of Excel Industries Limited has appointed the executive chairman and managing director as CODM who assesses the
financial performance and position of the Company, and makes strategic decisions. See note 44 for segment information presented.
U. Foreign currency translation
(i) Functional and presentation currency
Items included in the standalone financial statements are measured using the currency of the primary economic environment in which
the entity operates (‘the functional currency’). The standalone financial statements are presented in Indian Rupee (INR), which is the
Company’s functional and presentation currency.
(ii) Transaction and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the date of transactions. Foreign
exchange gains and losses resulting from 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 Statement of Standalone Profit and Loss.
Foreign exchange gains and losses are presented in the Statement of Standalone Profit and Loss on a net basis within foreign exchange
gain / (loss).
Non-monetary foreign currency items are carried at cost.
V. Off-setting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the 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.
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 Company or the counterparty.
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