1. Corporate Information
LEEL Electricals Limited (Formerly known as Lloyd Electric & Engineering Limited) is a public Company domiciled in India and incorporated under the
provisions of the erstwhile Companies Act, 1956. Its shares are listed on National Stock Exchange of India Limited (NSE) & BSE Limited (BSE) in India.
The Company is the largest manufacturer of heat exchangers coils in India i.e., BSE Limited (“BSE") (Scrip Codes: 517518) and National Stock Exchange
Limited (“NSE") (Scrip Code: LEELBZ). M/s Leel Electricals Limited is a company incorporated under the Companies Act, 1956 (“Act") on 10/11/1987 in
the State of Uttar Pradesh having its registered office at Unit No. 8, Block-A, Kakrala Main Road, Sector 80, Industrial Area, Phase- II, Noida Gautam
Buddha Nagar, Uttar Pradesh- 201305.
The Corporate Insolvency Resolution Process (“CIRP") was initiated, on a petition filed by MKM Technologies Private Limited ('the Operational
Creditor') under Section 9 of the Insolvency and Bankruptcy Code 2016 (“IBC 2016"), against the Company, being admitted vide an order of Hon'ble
National Company Law Tribunal (“NCLT"), Allahabad Bench dated March 04, 2020. Further, pursuant to the said Order passed by the Hon'ble NCLT,
Allahabad, Mr. Arvind Mittal bearing Registration No. IBBI/PA-001/IP-P01358/2018 was appointed as the Interim Resolution Professional (IRP) from the
date of the Order and the powers of the Board of Directors stood suspended, during the pendency of the proceedings and were exercised by Mr. Arvind
Mittal till he continued to be the Interim Resolution Professional. Thereafter, Mr. Ganga Ram Agarwal bearing Registration No. IBBI/IPA-002/IP-
N00874/2019-2020/12777 was appointed on the said position and he, in his capacity as RP, took control and custody of the management and
operations of the Company. Upon the failure to achieve a Resolution Plan, the Liquidation proceedings were initiated against the Company by an Order
dated 06.12.2021 of Hon'ble NCLT in CP (IB)/189/ALD/2019 and the RP was confirmed as liquidator of the Company. After following due process of law
as prescribed under the IBC and the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulation, 2016 (“Liquidation Regulation"), the
Company was successfully sold as a going concern under Liquidation to the Successful Bidder (“Krishna Ventures Limited"/“KVL"/“Acquirer"). The
Hon'ble NCLT by its order dated 21.03.2024 inter-alia approved the directions for implementing sale of the Company as a going concern to a Successful
Auction Purchaser i.e. Krishna Ventures Limited (KVL/Acquirer). For which, the Liquidator issued the Sale Certificate dated 12.06.2024 for sale of the
Company as going concern pursuant to the provisions of the Insolvency and Bankruptcy Code, 2016 (Code). The whole management of the Company
has been changed. The Directors and Key Managerial Personnel as existing on March 31st, 2024, have ceased to act as such and accordingly, the new
management has been inducted on the Board of Directors with effect from July 01st, 2024.
2. Significant Accounting Policies
2.1 Basis of preparation
The financial statements of the Company have been prepared in accordance with Indian Accounting Standards ( IND AS) notified under the
section 133 of the Companies Act 2013 (the Act) read with Companies (Indian Accounting Standards) Rule 2015 (as amended from time to time)
and other relevant provision of the Act. The financial statements have been prepared on a historical cost basis, except for the following assets
and liabilities:
i) Certain financial assets and liabilities that is measured at fair value
ii) Defined benefit plans-plan assets measured at fair value.
2.2 Current versus non-current classification
The Company presents assets and liabilities in the balance sheet based on current/ non- current classification. An asset is
treated as current when it is:
- Expected to be realized or intended to be sold or consumed in normal operating cycle
- Held primarily for purpose of trading
- Expected to be realized within twelve months after the reporting period, or
- cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting
period
All other assets are classified as non-current.
A liability is current when:
- It is expected to be settled in normal operating cycle
- It is held primarily for purpose of trading
- It is due to be settled within twelve months after the Reporting period, or
- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
All other liabilities are classified as non-current.
For the purpose of current/non-current classification of assets and liabilities, the Company has ascertained its normal operating cycle as
twelve months. This is based on nature of service and the between the acquisition of assets or inventories for the processing and their
realization in cash and cash equivalents.
2.3 Use of Estimates
The preparation of financial statements require estimates and assumptions to be made that affect the reported amount of asset and liabilities
on the date of the financial statements and the reported amount of the revenue and the expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period in which the results are known / materialized.
2.4 Property, Plant and Equipment (PPE)
An item of property, plant and equipment that qualifies as an assets is measured on initial recognition at cost.
PPE are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The initial cost of PPE comprise purchase
price, taxes, duties, freight and other incidental expenses directly attributable and related to acquisition and installation of the concerned
assets and are further adjusted by the amount of input tax credit availed wherever applicable., net of less accumulated depreciation and
location for its intended use, including borrowing costs relating to the qualified asset over the period up to the date the assets are put to use is
included in cost of relevant assets.
All other expenditure related to existing assets including day-to-day repair and maintenance expenditure and cost of
replacing parts, are charged to the statement of profit and loss in the period during which such expenditure is incurred.
The carrying amount of a property, plant and equipment is de-recognized when no future economic benefits are expected
from its use or on disposal.
Machine spares that can be used only in connection with an item of fixed asset and their use is expected for more than one
year are capitalized.
The Company had elected to consider the carrying value of all its property plant & equipment appearing in the financial statement prepared in
accordance with accounting standards notified under the section 133 of the Company act 2013, read together with rule 7 of the companies
(Accounts) Rules, 2014 and used the same as deemed cost in the opening Ind AS balance sheet prepared on 1st April, 2015.
Depreciation on property plant and equipment is provided on straight line method based on estimated useful life of assets
as prescribed in schedule II to the Companies Act, 2013.Estimated useful lives of the assets are as follow:-
The property, plant and equipment acquired under finance leases, if any, is depreciated over the asset's useful life or over the shorter of the
asset's useful life and the lease term if there is no reasonable certainty that the Company will obtain ownership at the end of the lease term.
Depreciation on the assets purchased during the year is provided on pro-rata basis from the date of purchase of the assets.
Gains and losses on de-recognition/disposals are determined as the difference between the net disposal proceeds and the carrying amount of
those assets. Gains and Losses if any, are recognized in the statement of profit or loss on de-recognition or disposal as the case may be.
Capital Work-in-Progress
Cost of assets not ready for intended use, on the balance sheet date is shown as capital work in progress.
Projects under commissioning and other Capital Work-in-Progress are carried at cost, comprising direct cost, related
incidental expenses and attributable interest.
2.5 Intangible Assets
Intangible assets acquired separately are measured on initial recognition at cost less accumulated amortization and
accumulated impairment losses, if any.
The cost of an intangible asset includes purchase cost (net of rebates and discounts), including any import duties and non¬
refundable taxes, and any directly attributable costs on making the asset ready for its intended use.
The Cost of Intangible assets are amortized on a straight line basis over their estimated useful life which is as follows:
Product Development Expenses
Cost of Product Development expenses will be amortized over its useful life of 5 Years.
The Company had elected to consider the carrying value of all its intangible assets appearing in the financial statement prepared in accordance
with accounting standards notified under the section 133 of the Company act 2013, read together with rule 7 of the companies (Accounts)
Rules, 2014 and used the same as deemed cost in the opening Ind AS balance sheet prepared on 1st April, 2015.
The amortization period and 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 amortization period is changed accordingly.
An intangible asset is derecognized on disposal or when no future economic benefits are expected from use. Gains and losses arising from de¬
recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset are
recognized in the statement of profit and loss when the asset is derecognized or on disposal.
2.6 Impairment of tangible assets and intangible assets
At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether
there is any indication based on internal/ external factors that those assets have suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to
estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which
the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash¬
generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent
allocation basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least
annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the
asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.
The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of
recoverable amount
2.7 Inventories
It is pertinent to mention that the said financials are being prepared in view for available data with the liquidator, for the FY 2018-19 to
FY 2024-25 no physical inspection was conducted by the management. However, the opening balance has been carried forward by the
liquidator as the inventory cannot be measured at that point of time, and no inventory has been handed over to the acquirer.
2.8 Foreign Exchange Transactions
These financial statements are presented in Indian rupees (INR), which is the Company's functional currency Transactions
in foreign currency are recorded on initial recognition at the spot rate prevailing at the time of the transaction.
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 terms of historical cost in a foreign currency are not retranslated
Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at
which they were translated on initial recognition during the period or in previous financial statements are recognized in profit or loss in the
period in which they arise.
Exchange differences on monetary items are recognized in profit or loss in the period in which they arise except for:
Exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the
cost of those assets when they are regarded as adjustment to interest costs on those foreign currency borrowings
The exchange differences arising on reporting of long term foreign currency monetary items at rates different from those at which they were
initially recorded in so far as they relate to the acquisition of depreciable capital assets are shown by addition to/deduction from the cost of the
assets as per exemption provided under IND AS 21 read along with Ind AS 101 appendix 'D' clause-D13AA.
Exchange differences on monetary items receivable from or payable to a foreign operation which settlement is neither planned nor likely to
occur (therefore forming part of the investment in the foreign operation), which are recognized initially in other comprehensive income and
reclassified from equity to profit or loss on repayment of the monetary items.
2.9 Borrowing Cost
Borrowing costs specifically relating to the acquisition or construction of a qualifying asset that necessarily takes a substantial period of time to
get ready for its intended use are capitalized as part of the cost of the asset. All other borrowing costs are charged to profit & loss account in
the period in which it is incurred except loan processing fees which is recognized as per Effective Interest Rate method. Borrowing costs consist
of interest and other costs that Company incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences
to the extent regarded as an adjustment to the borrowing costs.
2.10 Employee Benefits
Contribution to Provident fund/Pension fund: Retirement benefits in the form of Provident Fund / Pension Schemes are defined
contribution schemes and the contributions are charged to the Profit & Loss Account in the year when the contributions to the respective funds
become due. The Company has no obligation other than contribution payable to these funds.
2.11 Tax Expenses
Income Tax expense comprises of current tax and deferred tax charge or credit. Provision for current tax is made with reference to taxable
income computed for the financial year for which the financial statements are prepared by applying the tax rates as applicable.
Current Tax: Current Income tax relating to items recognized outside the profit and loss is recognized outside the profit and
loss (either in other comprehensive income or in equity)
Deferred Tax: Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax bases
of assets and liabilities and their carrying amounts for financial reporting purpose at reporting date. Deferred income tax assets and liabilities
are measured using tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply
to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates
on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive
enactment date. A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against
which the deductible temporary differences and tax losses can be utilized.
The carrying amount of deferred tax assets is reviewed as at each balance sheet date and reduced to the extent that it is no longer probable
that sufficient taxable profit will not be available against which deferred tax asset to be utilized. Unrecognized deferred tax assets are
re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the
deferred tax asset to be recovered.
Deferred tax assets are recognized for the unused tax credit to the extent that it is probable that taxable profits will be available against which
the losses will be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized,
based upon the likely timing and the level of future taxable profits.
2.12 Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of
ownership to the lessee. All other leases are classified as operating leases.
A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards
incidental to ownership to the Company is classified as a finance lease. When acquired, such assets are capitalized at fair value of the leased
property or present value of minimum lease payments, at the inception of lease, whichever is lower.
Other leases are Operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight line
basis over the lease term. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the
leased asset and amortized over the lease term on the straight line basis.
As a Lessor
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases.
Assets subject to operating leases are included in PPE. Rental income from operating lease is recognized on a straight-line basis over the
term of the relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for
the Company's expected inflationary cost increases, such increases are recognized in the year in which such benefits accrue.
As a lessee
Leases in which significant portions of risks and reward of ownership are not transferred to the Company as lessee are classified as operating
leases. Operating lease payments are recognized as an expense in the Profit and Loss account on a straight-line basis over the lease term.
Where the rentals are structured solely to increase in line with expected general inflation to compensate for the lessor's expected inflationary
cost increases, such increases are recognized in the year in which such benefits accrue. Contingent rentals arising under operating leases are
recognized as an expense in the period in which they are incurred.
Leases where the lessor effectively transfers substantially all the risks and benefits of ownership of the asset are classified as finance leases and
are capitalized at the inception of the lease term at the lower of the fair value of the leased property and present value of minimum lease
payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of
interest on the remaining balance of the liability. Finance charges are recognized as finance costs in the statement of profit and loss. Lease
management fees, legal charges and other initial direct costs of lease are capitalized.
2.13 Fair Value Measurement
The Company measures certain 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:
i) In the principal market for the asset or liability, or
ii) 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, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.All assets and liabilities for which fair
value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the
lowest level input that is significant to the fair value measurement as a whole:
Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly
or indirectly observable
Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether
transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the
fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets & liabilities on the basis of the
nature, characteristics and the risks of the asset or liability and the level of the fair value hierarchy as explained above.
2.14 Financial Instrument
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 asset is any assets that is
> Cash;
> an equity instrument of another entity;
> a contractual right:
(i) to receive cash or another financial asset from another entity; or
(ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially favorable to the entity;
or
> a contract that will or may be settled in the entity's own equity instruments and is:
(i) a non-derivative for which the entity is or may be obliged to receive a variable number of the entity's own equity
instruments; or
(ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial
asset for a fixed number of the entity's own equity instruments.
Financial assets includes non-current investments, loan to employees, security deposits, trade receivables and other eligible
current and non-current assets
Financial Liability is any liabilities that is
> a contractual obligation :
(ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavorable to the
entity; or
> a contract that will or may be settled in the entity's own equity instruments and is:
(i) a non-derivative for which the entity is or may be obliged to deliver a variable number of the entity's own equity
instruments; or
(ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed
number of the entity's own equity instruments. For this purpose, rights, options or warrants to acquire a fixed number of the entity's
own equity instruments for a fixed amount of any currency are equity instruments if the entity offers the rights, options or warrants pro
rata to all of its existing owners of the same class of its own non-derivative equity instruments.
Financial liabilities includes Loans, trade payable and eligible current and non-current liabilities
i) Classification:
The Company classifies financial assets as subsequently measured at amortized cost, fair value through other
comprehensive income or fair value through profit or loss on the basis of both:
• the entity's business model for managing the financial assets and
• the contractual cash flow characteristics of the financial asset.
A financial asset is measured at amortized cost if both of the following conditions are met, 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.
A financial asset is measured at fair value through other comprehensive income if both of the following conditions are
met:
• the financial asset is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling financial assets 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.
A financial asset is measured at fair value through profit or loss unless it is measured at amortized cost or at fair value
through other comprehensive income.
All financial liabilities are subsequently measured at amortized cost using the effective interest method or fair value
through profit or loss.
ii) Initial recognition and measurement
The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the
instrument. All financial assets and liabilities are recognized at fair value at initial recognition, plus or minus, any transaction cost that
are directly attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through profit or
loss.
iii) Financial assets subsequent measurement
Financial assets as subsequent measured at amortized cost, fair value through other comprehensive income (FVOCI)
or fair value through profit or loss (FVTPL) as the case may be.
Financial liabilities as subsequent measured at amortized cost or fair value through profit or loss
iv) Effective interest method
The effective interest method is a method of calculating the amortized cost of a debt instrument and allocating interest
income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including
all fees and points paid or received that form integral part of the effective interest rate, transaction costs and other
premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net
carrying amount on initial recognition.
Income is recognized on an effective interest basis for debt instruments other than those financial a classified as at
FVTPL. Interest income is recognized in profit or loss and is included in the “Other income" line item.
v) Trade Receivables
Trade receivables are the contractual right to receive cash or other financial assets and recognized initially at fair value. Subsequently
measured at amortized cost (Initial fair value less expected credit loss). Expected credit loss is the difference between all contractual
cash flows that are due to the Company and all that the Company expects to receive (i.e. all cash shortfall), discounted at the effective
interest rate.
vi) Equity investments
All equity investments in scope of Ind AS 109 are measured at fair value other than investment in subsidiary, Associates and Joint
venture. For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive income
subsequent changes in the fair value. The Company makes such election on an instrument by- instrument basis
vii) 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, which are subject to an insignificant risk of changes in value.
viii) Impairment of Financial Assets
The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued
through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to
lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there
has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of
expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to
be recognized is recognized as an impairment gain or loss in profit or loss.
ix) Financial liabilities
Financial liabilities are recognized initially at fair value less any directly attributable transaction costs. These are subsequently
carried at amortized cost using the effective interest method or fair value through profit or loss. For trade and other payables maturing
within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these
instruments
x) Trade payables
Trade payables represent liabilities for goods and services provided to the Company prior to the end of financial year and which are
unpaid. Trade payables are presented as current liabilities unless payment is not due within 12 months after the reporting period or not
paid/payable within operating cycle. They are recognized initially at their fair value and subsequently measured at amortized cost using
the effective interest method.
xi) Borrowings
Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at
amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or
loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are
recognized as transaction costs of the loan.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at
least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan arrangement on or
before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the
Company does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the
financial statements for issue, not to demand payment as a consequence of the breach.
xii) Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of Company after deducting all of
its liabilities. Equity instruments are recognized at the proceeds received, net of direct issue costs.
xiii) De-recognition of financial instrument
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers
the financial asset and the transfer qualifies for de-recognition under Ind AS 109. A financial liability (or a part of a financial liability)
is derecognized from the Company's balance sheet when the obligation specified in the contract is discharged or cancelled or
expires.
xiv) Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable
legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the
liabilities simultaneously
xv) Derivative Financial Instruments
Derivatives are initially recognized at fair value at the date the derivative contracts are entered and are subsequently re-measured to
their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the
derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss.
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