Note 1: Basis of preparation and Material Accounting
Policies(a) Basis of preparation
These financial statements have been prepared in
accordance with the Indian Accounting Standards
(referred to as "Ind AS”) as prescribed under Section
133 of the Companies Act, 2013 read with Companies
(Indian Accounting Standards) Rules, 2015 as amended
from time to time.
(b) Historical cost convention
The financial statements have been prepared on a
historical cost basis, except for the following:
(a) certain financial assets and liabilities that is
measured at fair value; and
(b) defined benefit plans - plan assets measured at
fair value
(c) Use of estimates and judgements
The preparation of standalone financial statement
requires management to make judgments, estimates
and assumptions that affect the application of
accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results
may differ from these estimates.
Estimates and underlying assumptions are reviewed
on a periodic basis. Revisions to accounting estimates
are recognized in the period in which the estimates are
revised and in any future periods affected.
The areas involving critical estimates or judgements
are:
• Estimated useful life of property, plant and
equipment and intangible assets- Management
reviews its estimate of the useful lives of property,
plant and equipment and intangible assets at
each reporting date, based on the expected utility
of the assets. Uncertainties in these estimates
relate to technical and economy obsolescence
that may change the utility of property, plant and
equipment and intangible assets
• Estimation of defined benefit obligation -
Measurement of defined benefit obligation and
related under plans require numerous assumptions
and estimates that can have a significant impact
on the recognized costs and obligation, such as
future salary level, discount rate, attrition rate and
mortality.
• Impairment of trade receivable: The loss
allowances for financial assets are based on
assumptions about risk of default and expected
loss rates. The Company uses judgement in
making these assumptions and selecting the
inputs to the impairment calculation and
• Estimation of net realisable value for raw material
and finished goods: The management has
determined net realisable value of finished goods
and raw material based on the analysis of physical
conditions, ageing, technology, and market
conditions to determine excess or obsolete
inventories.
Estimates and judgements are continually evaluated.
They are based on historical experience and other
factors, including expectations of future events that
may have a financial impact on the Company and that
are believed to be reasonable under the circumstances
(d) 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 the Company has been
identified as being the CODM as they assesses the
financial performance and position of the Company,
and makes strategic decisions. Refer Note 43 for
segment information.
(e) Foreign currency translation
(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 entity operates ('the
functional currency'). The standalone financial
statements are presented in Indian rupee (INR),
which is the functional and presentation 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
gains and losses 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 profit or loss. A monetary
item for which settlement is neither planned
nor likely to occur in the foreseeable future is
considered as a part of the entity's net investment
in that foreign operation.
(f) Revenue recognition
Revenue from sale of goods is recognised at when
control of the goods is transferred to the customer
which is generally on dispatch of goods and/or on the
date of clearance by Customs and there is no unfulfilled
obligation that could affect the customer's acceptance
of the goods. The Company recognizes revenue from
the sale of goods measured at the price specified in the
contract, net of returns and allowances, trade discounts
and volume rebates.
Revenue from value added services, namely freight
and shipping insurance, is recognised as and when
services are rendered, as per the terms agreed with the
customers. Shipping and handling expenses have been
netted off while recognition of revenue.
Revenue from job work services, is recognised as and
when services are rendered, as per the terms agreed
with the customers.
The Company does not have any significant financing
element included in the sales made.
(g) Income tax
The income tax expense or credit for the period is the
tax payable on the current period's taxable income
based on the applicable income tax rate adjusted by
changes in deferred tax assets and liabilities attributable
to temporary differences and to unused tax losses.
(i) Current income tax
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
provision for current tax is made at the rate of tax
as applicable for the income of the previous year
as defined under the Income Tax Act, 1961.
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.
Current tax assets and tax liabilities are offset
where the entity has a legally enforceable right
to offset and intends either to settle on a net
basis, or to realize the asset and settle the liability
simultaneously.
(ii) Deferred tax
Deferred income tax is recognised using the
liability method, on temporary differences arising
between the tax bases of assets and liabilities and
their carrying amounts as per standalone financial
statements as at the reporting date. 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 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 to the extent
that it is probable that future taxable income will be
available against which the deductible temporary
differences, unused tax losses, depreciation
carry-forwards and unused tax credits could be
utilised.
The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced
to the extent that it is no longer probable that
sufficient taxable profit will be available to allow
all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed
at each reporting date and are recognised to the
extent that it has become probable that future
taxable profits will allow the deferred tax assets to
be recovered.
Deferred tax assets are not recognised for
temporary differences between the carrying
amount and tax bases of investments in associate
where it is not probable that the differences will
reverse in the foreseeable future and taxable profit
will not be available against which the temporary
difference can be utilised.
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 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.
Minimum Alternate Tax (" MAT ") credit entitlement
is recognized as deferred tax asset if it is probable
that MAT credit will reverse in foreseeable future
and taxable profit will be available against which
such deferred tax can be utilised.
(h) Leases
As a lessee
Leases are recognised as a right-of-use asset and a
corresponding liability at the lease commencement
date. Contracts may contain both lease and non-lease
components. The Company allocates the consideration
in the contract to the lease and non-lease components
based on their relative stand-alone prices.
Assets and liabilities arising from a lease are initially
measured on a present value basis. liabilities
include the net present value of the following lease
payments:
• fixed payments (including in-substance fixed
payments), less any lease incentives receivable
• variable lease payment that are based
on an index or a rate, initially measured
using the index or rate as at the
commencement date
• amounts expected to be payable by the Company
under residual value guarantees
• the exercise price of a purchase option if the
Company is reasonably certain to exercise that
option, and
• payments penalties for terminating the lease, if
the lease term reflects the Company exercising an
option to terminate the lease.
Lease payments to be made under reasonably certain
extension options are also included in the measurement
of the liability. The lease payments discounted using the
interest rate implicit in the lease. If that rate cannot be readily
determined, which is generally the case for 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-of-use asset in a similar economic environment
with similar terms, security and conditions.
To determine the incremental borrowing rate, the
Company:
• where possible, uses recent third-party financing
received by the individual lessee as a starting
point, adjusted to reflect changes in financing
conditions since third party financing was received
• uses a build-up approach that starts with a risk¬
free interest rate adjusted for credit risk for leases
held by the Company, which not have recent third
party financing, and
• makes adjustments specific to the lease, e.g. term,
country, currency and security.
The Company is exposed to potential future increases in
variable lease payments based on an index or rate take
effect, 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 asset.
Lease payments are allocated between principal and finance
cost. The finance cost is charged to profit or loss over the
lease period so as to produce a constant periodic rate of
interest on the remaining balance of the liability for each
period.
Variable lease payments that depend on sales are recognised
in profit or loss in the period in which the condition that
triggers those payments occurs.
Right-of-use assets are measured at cost comprising
the following:
• the amount of the initial measurement of lease
liability
• any lease payments made at or before the
commencement date less any incentives received
• any initial direct costs, and
• restoration costs."
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. If the Company is reasonably certain
to exercise a purchase option, the right-of-use asset is
depreciated over the underlying asset's useful life
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 a lease
term of 12 months or less. Low-value assets comprise IT
equipment and small items of office furniture.
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. Initial direct cost
incurred obtaining an operating lease are added to the
carrying amount of the underlying asset and recognised
as expense over the lease term on the same basis as
lease income. The respective leased assets are included
in the balance sheet based on their nature.
(i) Business Combination
The acquisition method of accounting is used to
account for all business combinations except common
control, regardless of whether equity instruments or
other assets are acquired. The consideration transferred
for the acquisition of a subsidiary comprises the
• fair values of the assets transferred;
• liabilities incurred to the former owners of the
acquired business;
• equity interests issued by the Company; and
• fair value of any asset or liability resulting from a
contingent consideration arrangement.
Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are, with
limited exceptions, measured initially at their fair values
at the acquisition date. The Company recognises any
non-controlling interest in the acquired entity on an
acquisition-by-acquisition basis either at fair value or
at the non-controlling interest's proportionate share of
the acquired entity's net identifiable assets.
Acquisition-related costs are expensed as incurred.
The excess of the
• consideration transferred;
• amount of any non-controlling interest in the
acquired entity, and
• acquisition-date fair value of any previous equity
interest in the acquired entity
over the fair value of the net identifiable assets acquired
is recorded as goodwill. If those amounts are less
than the fair value of the net identifiable assets of the
business acquired, the difference is recognised in other
comprehensive income and accumulated in equity
as capital reserve provided there is clear evidence of
the underlying reasons for classifying the business
combination as a bargain purchase. In other cases, the
bargain purchase gain is recognised directly in equity
as capital reserve.
Where settlement of any part of cash consideration
is deferred, the amounts payable in the future are
discounted to their present value as at the date
of exchange. The discount rate used is the entity's
incremental borrowing rate, being the rate at which
a similar borrowing could be obtained from an
independent financier under comparable terms and
conditions.
If the business combination is achieved in stages,
the acquisition date carrying value of the acquirer's
previously held equity interest in the acquiree is
remeasured to fair value at the acquisition date. Any
gains or losses arising from such remeasurement are
recognised in profit or loss or other comprehensive
income, as appropriate.
Business combination between entities under common
control is accounted using pooling of interest method
of accounting. Under pooling of interest method of
accounting, assets and liabilities of combining entities
are reflected at carrying amount and no adjustments
are made to reflect fair values, or recognize any new
assets and liabilities. The only adjustments are made
to harmonise accounting policies. The difference
between the amount recorded as share capital plus any
additional consideration in the form of cash or other
assets and amount of share capital of the transferor
is transferred to capital reserve and is presented
separately from capital reserve.
(j) Impairment of assets
Goodwill and intangible that have an indefinite
useful life are 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.
(k) Cash and cash equivalents
For the purpose of presentation in the standalone
statement of cash flows, cash and cash equivalents
includes cash on hand, deposits held a call with financial
institutions, other short-term highly liquid investments
with original maturities of less than three months that
are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in
value .
(l) Trade receivables
Trade receivables are amounts due from customer for
sold or services performed in the ordinary course of
business. Trade receivables are recognised initially at
the amount of consideration that is unconditional they
contain significant financing components, when they
are recognised at fair value. 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.
(m) Inventories
Inventories are valued at lower of cost and estimated
net realisable value. Cost is determined on "First-in-First-
Out” "Specific Identification” or Weighted Averages”
basis as applicable. Cost of Inventories comprises of
cost of purchases, cost of conversion and other direct
costs incurred in bringing the inventories to their
present location and condition. Cost of Finished goods
are determined on absorption costing method. Semi
Finished Goods are Finished Goods pending Quality
Inspection.
Net realisable value is the estimated selling price in
the ordinary course of business, less the estimated
costs of completion and estimated selling expenses.
Identification of a specific item and determination
of estimated net realisable value involves technical
judgment of the management, which has been relied
upon by the Auditors.
The company assess the valuation of Inventories at
each reporting period and write down the value for
different finished goods based on their quality classes
and ageing. Inventory provisions are provided to cover
risks arising from slow-moving items, discontinued
products, and net realizable value lower than cost. The
process for evaluating these write-offs often requires
to make subjective judgments and estimates, based
primarily on historical experience, concerning prices
at which such inventory will be able to be sold in the
normal course of business, to the extent each of these
factors impact the Company's business.
Raw materials, components and other supplies held
for use in the production of finished products are
not written down below cost except in cases where
material prices have declined and it is estimated that
the cost of the finished products will exceed their net
realisable value.
(n) Financial instruments
A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.
Financial assets and liabilities are recognised when
the Company becomes a party to the contractual
provisions of the instrument.
Financial assets:
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 profit or loss), and
• those measured at amortised cost
The classification depends on the entity's business
model for managing the financial assets and the
contractual terms of the cash flows.
Initial recognition and measurement
Regular way purchases and sales of financial assets
are recognised on trade-date, the date on which the
Company commits to purchase or sale the financial
asset. Financial assets are recognised initially at fair
value plus, in the case of financial assets not recorded
at fair value through profit or loss, transaction costs that
are attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at fair value
through profit or loss are expensed of in profit or loss.
Subsequent measurement
After initial recognition, financial assets are measured
at:
• fair value (either through other comprehensive
income or through profit or loss), or
• amortised cost
Debt instruments
Debt instruments are subsequently measured at
amortised cost, fair value through other comprehensive
income ('FVOCI') or fair value through profit or loss
('FVTPL') till de-recognition on the basis of (i) the entity's
business model for managing the financial assets and
(ii) the contractual cash flow characteristics of the
financial asset.
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.
A gain or loss on a debt investment that is subsequently
measured at amortised cost and not part of a hedging
relationship is recognised in profit or loss when the
asset is derecognised or impaired. Interest income from
these financial assets is included in other income using
the effective interest rate method.
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 FVOCI. Movements in the
carrying amount are taken through OCI, except for
the recognition of impairment gains or losses, interest
revenue and foreign exchange gains and losses which
are recognised in profit and loss. When the financial
asset is derecognised, the cumulative gain or loss
previously recognised in OCI is reclassified from equity
to profit or loss and recognised in other gains/ (losses).
Interest income from these financial assets is included
in other income using the effective interest rate method
Fair value through profit or loss (FVTPL):
Assets that do not meet the criteria for amortised cost
or FVOCI are measured at FVTPL. A gain or loss on a debt
investment that is subsequently measured at fair value
through profit or loss is recognised in profit or loss in
the period in which it arises. Interest income from these
financial assets are recognised in other income.
Equity instruments
All equity investments in scope of Ind AS 109 are
measured at fair value. Equity instruments which
are held for trading are classified as at FVTPL. For all
other equity instruments, the Company decides to
classify the same either as at fair value through other
comprehensive income (FVTOCI) or FVTPL.
The Company makes such election on an instrument-
by-instrument basis. The classification is made on initial
recognition and is irrevocable.
If the Company decides to classify an equity instrument
as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognised
in other comprehensive income (OCI). There is no
recycling of the amounts from OCI to profit and loss,
even on sale of such investments.
Equity instruments included within the FVTPL category
are measured at fair value with all changes recognised
in the standalone statement of profit and loss.
Investment in equity instruments of subsidiaries
The Company records the investments in subsidiaries
at cost.
When the Company issues financial guarantees on
behalf of subsidiaries, initially it measures the financial
guarantees at their fair values andsubsequently measures
at the higher ofthe amount ofloss allowance determined
as per impairment requirements of Ind AS 109 and
the amount recognized less cumulative amortization.
The Company records the initial fair value of financial
guarantee as deemed investment with a corresponding
liability recorded as deferred revenue. Such deemed
investment is added to the carrying amount of
investment in subsidiaries.
Deferred revenue is recognized in the Statement of
Profit and Loss over the remaining period of financial
guarantee issued.
Impairment of financial assets
The Company assesses on a forward looking basis the
expected credit losses associated with its assets carried
at amortised cost. The impairment methodology
applied depends on whether there has been a
significant increase in credit risk. Note 40 details how
the Company determines whether there has been a
significant increase in credit risk.
For trade 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 the
receivables.
Derecognition of financial assets
A financial asset is derecognized only when:
• the Company has transferred the rights to receive
cash flows from the financial asset or
• 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 entity 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. Where
the entity has not transferred substantially all risks
and rewards of ownership of the financial asset, the
financial asset is not derecognised.
Where the entity has neither transferred a financial
asset nor retains substantially all risks and rewards of
ownership of the financial asset, the financial asset is
derecognized 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.
Income recognitionInterest income
Interest 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 and financial assets at FVOCI is
calculated using the effective interest rate method and
recognised in the standalone statement of profit and
loss as part of other income.
Interest income is calculated by applying the effective
interest rate to the gross carrying amount of financial
asset except for financial assets that subsequently
become credit-impaired. For credit-impaired financial
assets the effective rate is applied to the net carrying
amount of the financial asset (after deduction of the
loss allowance)
Dividend income
Dividends are received from financial assets at fair
value through profit or loss and at FVOCI. Dividends
are recognised as other income in profit or 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 a recovery part of the cost
of the investment.
Other income
All other income is accounted on accrual basis when
no significant uncertainty exist regarding the amount
that will be received.
Financial liabilities:Initial recognition and measurement
Financial liabilities are initially measured at its fair value
plus or minus, in the case of a financial liability not at
fair value through profit or loss, transaction costs that
are directly attributable to the issue/ origination of the
financial liability.
Subsequent measurement
Financial liabilities are classified as measured at
amortised cost or FVTPL. A financial liability is classified
as at FVTPL if it is classified as held for trading, or it
is a derivative or it is designated as such on initial
recognition. Financial liabilities at FVTPL are measured
at fair value and net gains and losses, including any
interest expense, are recognised in the standalone
statement of profit and loss. Other financial liabilities
are subsequently measured at amortised cost using the
effective interest method. Interest expense and foreign
exchange gains and losses are recognised in the
standalone statement of profit and loss. Any gain or loss
on derecognition is also recognised in the standalone
statement of profit and loss.
Derecognition
A financial liability is derecognised when the obligation
specified in the contract is discharged, cancelled or
expires.
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 asset and settle the
liability simultaneously. The legally enforceable right
must not be contingent on future events and must be
enforceable in the normal course of business and in
the event of default, insolvency or bankruptcy of the
Company or the counterparty.
(o) Property, plant and equipment
Items of property, plant and equipment are stated
at historical cost less accumulated depreciation and
impairment. Historical cost comprises of the purchase
price including import duties and non-refundable taxes
and directly attributable expenses incurred to bring the
asset to the location and condition necessary for it to
be capable of being operated in the manner intended
by management.
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. The
carrying amount of any component accounted for as
a separate asset is derecognised when replaced. All
other repairs and maintenance are charged to profit
or loss during the reporting period in which they are
incurred.
Depreciation methods, estimated useful lives and
residual value
Depreciation is calculated using the written down value
method, to allocate their cost, net of residual values,
over the estimated useful lives of the assets, based
on technical evaluation done by the management's
expert which is in accordance with the Schedule II to
the Companies Act, 2013, 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 assets'
residual values and useful lives are reviewed, and
adjusted if appropriate, at the end of each reporting
period.
Depreciation on leasehold improvements and leasehold
land is calculated using the straight line method. The
assets' residual values and useful lives are reviewed, and
adjusted if appropriate, at the end of each reporting
period.
Depreciation on property, plant and equipment is
provided based on the management estimated useful
life for the property, plant and equipment
An asset's carrying amount is written down immediately
to its recoverable amount if the asset's carrying amount
is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by
comparing proceeds with carrying amount. These are
included in profit or loss within other income / other
expenses.
(p) Investment properties
Properties that are held for long-term rental yields
or for capital appreciation or both, and that is not
occupied by the Company, are classified as investment
properties. Investment properties are measured initially
at its cost, including related transaction costs and where
applicable borrowing costs. Subsequent expenditure is
capitalised to the asset's carrying amount only when it is
probable that future economic benefits associated with
the expenditure will flow to the Company and the cost
of the item can be measured reliably. All other repairs
and maintenance costs are expensed when incurred.
When part of an investment property is replaced, the
carrying amount of the replaced part is derecognised.
(q) Capital Work in Progress
Expenditure incurred on construction of assets which
are not ready for their intended use are carried at
cost less impairment (if any), under Capital work-
in-progress. The cost includes the purchase cost of
materials, including import duties and non-refundable
taxes, interest on borrowings used to finance the
construction of the asset and any directly attributable
costs of bringing an assets ready for their intended use
(r) Intangible assets
Intangible assets are stated at acquisition cost, net
of accumulated amortisation and accumulated
impairment losses, if any. Intangible assets are
amortised on a written down value basis over their
estimated useful lives.
Depreciation on intangible assets is provided based on
the management estimated useful life for the intangible
assets:
The amortisation period and the amortisation method
are reviewed at least at each financial year end. If the
expected useful life of the asset is significantly different
from previous estimates, the amortisation period is
changed accordingly.
An asset's carrying amount is written down immediately
to its recoverable amount if the asset's carrying amount
is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by
comparing proceeds with carrying amount. These are
included in profit or loss within other income / other
expenses.
(s) 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
or operating cycle, as applicable. They are recognised
initially at their fair value and subsequently measured
at amortised cost using the effective interest method.
(t) Borrowing cost
General and specific 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. Capitalisation of borrowing costs is suspended and
charged to the standalone statement of profit and loss
during extended periods when active development
activity on the qualifying asset is interrupted.
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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