IV. Material accounting policies
A. Revenue recognition and other income:
(i) Sale of goods
Revenue from operations comprises of
sales of goods after deduction of discounts,
goods and service tax and estimated returns.
Discounts given by the Company includes
trade discounts, volume rebates and other
incentive given to the customers. Revenue is
only recognized to the extent that it is highly
probable a significant reversal will not occur.
Revenue is measured based on the
consideration specified in a contract with a
customer and in excess of billing is recognised
as a Contract Asset. Revenue from the sale of
goods is recognized when control of the goods
has transferred to our customer and when there
are no longer any unfulfilled obligations to the
customer. This is generally when the goods
are delivered to the customer depending on
individual customer terms, which can be at the
time of dispatch or delivery. This is considered
the appropriate point where the performance
obligations in our contracts are satisfied as
the Company no longer have control over
the inventory.
Export Incentive
Export benefits arising from Duty Drawback
scheme, Remission of Duties and Taxes on
Export Products (RoDTEP) and other eligible
export incentives are recognised on post export
basis at the rate at which the entitlements
accrue and is included in the ‘Other Operating
Income’ (Revenue from operation).
(ii) Interest income
For all financial instruments measured at
amortised cost, interest income is recorded
using the effective interest rate (EIR), which
is the rate that discounts the estimated
future cash payments or receipts through the
expected life of the financial instruments or
a shorter period, where appropriate, to the
net carrying amount of the financial assets.
Interest income is included in other income in
the Standalone statement of profit and loss
(iii) Government grant:
Grants and subsidies from the government
are recognised when there is reasonable
assurance that (i) the Company will comply
with the condition attached to them and (ii) the
grant /subsidy will be received. Government
grants are recognised in the Statement of
Profit and Loss on a systematic basis over
the years in which the Company recognises
the related costs for which the grants are
intended to compensate or when performance
obligations are made. Where the grant relates
to an asset, it is recognized as deferred income
and credited to income in equal amounts over
the expected useful life of the related asset.
B. Foreign currency translation:
Transaction and balances
Transactions in foreign currencies are translated
into the respective functional currencies of the
Company at the exchange rates at the dates of
the transactions or an average rate if the average
rate approximates the actual rate at the date of the
transaction. At each balance sheet date, foreign
currency monetary items are reported using the
closing exchange rate. Exchange differences
that arise on settlement of monetary items or
on reporting at each balance sheet date of the
Company’s monetary items at the closing rate are
recognized as income and expenses in the period
in which they arise.
Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated
using the exchange rates at the dates of transactions.
Non-monetary items that are measured at fair value
in a foreign currency shall be translated using the
exchange rates at the date when the fair value
was measured.
Exchange differences are generally recognised in
the Standalone Statement of Profit and Loss.
C. Employment Benefits
(i) Short-term obligations
All employee benefits payable wholly within
twelve months of rendering services are
classified as short-term employee benefits.
Short-term employee benefits are expensed
as the related service is provided. A liability
is recognized for the amount expected to be
paid if the Company has a present legal or
constructive obligation to pay this amount
as a result of past service provided by the
employee and the obligation can be estimated
reliably. Short-term benefits such as salaries,
wages, short-term compensation absences,
etc., are determined on an undiscounted
basis and recognized in the period in which
the employee renders the related service.
(ii) Other long-term employee benefit
obligations
Liability toward Long-term Compensated
Absences is provided for on the basis of an
actuarial valuation, using the Projected Unit
Credit Method, as at the date of the Balance
Sheet. Actuarial gains / losses comprising
of experience adjustments and the effects
of changes in actuarial assumptions are
immediately recognised in the Statement of
Profit and Loss. The obligations are presented
as current liabilities in the balance sheet if the
entity does not have an unconditional right to
defer settlement for at least twelve months
after the reporting period, regardless of when
the actual settlement is expected to occur.
(iii) Post-employment obligations
The Company operates the following post¬
employment schemes:
(a) defined benefit plans such as gratuity, and
(b) defined contribution plans such as
provident fund.
(a) Defined benefit plans: The following
post - employment benefit plans are
covered under the defined benefit plans:
Gratuity: The Company’s net obligation
in respect of defined benefit plans is
calculated by estimating the amount
of future benefit that employees have
earned in the current and prior periods,
discounting that amount and deducting
the fair value of any plan assets.
The calculation of defined benefit
obligations is performed annually by a
qualified actuary using the projected
unit credit method. When the calculation
results in a potential asset for the
Company, the recognised asset is limited
to the present value of economic benefits
available in the form of any future refunds
from the plan or reductions in future
contributions to the plan.
Remeasurement gains and losses
arising from experience adjustments
and changes in actuarial assumptions
are recognized 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. Net
interest expense (income) on the net
defined liability (assets) is computed
by applying the discount rate, used to
measure the defined benefit obligation
at the beginning of the annual period
to the then-net defined liability (asset)
after taking into account any changes
as a result of contribution and benefit
payments during the year. Net interest
expense and other expenses related to
gratuity benefit scheme are recognised in
Standalone statement of profit and loss.
When the benefits of a plan are changed
or when a plan is curtailed, the resulting
change in benefit that relates to past
service or the gain or loss on curtailment
is recognised immediately in profit or
loss. The Company recognises gains
and losses on the settlement of a defined
benefit plan when the settlement occurs.
(b) Defined contribution plans
Company’s contribution for the year paid/
payable to defined contribution retirement
benefit schemes are charged to Statement
of Profit and Loss in period in which
the related service is provided by the
employee. The Company’s contribution
towards provident fund is considered to
be defined contribution plan for which the
Company makes contribution on monthly
basis. The Company pays provident fund
contributions to publicly administered
provident funds as per local regulations.
The Company has no further payment
obligations once the contributions have
been paid.
D. Income-tax
Income tax expense comprises current and deferred
tax. It is recognised in the Standalone Statement of
Profit and Loss except to the extent that it relates
to a business combination, or items recognised
directly in equity or in the OCI.
(i) Current tax
Current tax is the amount of tax payable
(recoverable) in respect of the taxable
profit / (tax loss) for the year determined in
accordance with the provisions of the Income-
Tax Act, 1961. Current income tax for current
and prior periods is recognized at the amount
expected to be paid to or recovered from the
tax authorities, using tax rates and tax laws that
have been enacted or substantively enacted
at the reporting date. Current tax assets and
liabilities are offset only if, the Company:
a) has a legally enforceable right to set off
the recognised amounts; and
b) it is intended to realise the asset
and settle the liability on a net basis
or simultaneously.
(ii) Deferred tax
Deferred tax is recognised in respect of
temporary differences between the carrying
amounts of assets and liabilities for financial
reporting purposes and the amounts used
for taxation purposes. Deferred tax is not
recognised for:
- temporary differences on the initial
recognition of assets or liabilities in
a transaction that is not a business
combination and that affects neither
accounting nor taxable profit or loss;
- temporary differences related to
investments in subsidiaries and
associates to the extent that the Company
is able to control the timing of the reversal
of the temporary differences and it is
probable that they will not reverse in the
foreseeable future; and
- taxable temporary differences arising on
the initial recognition of goodwill
Deferred tax assets are recognised for
deductible temporary differences to the extent
that it is probable that future taxable profits will
be available against which they can be used.
Deferred tax assets are reviewed at each
reporting date and are reduced to the extent
that it is no longer probable that the related
tax benefit will be realised; such reductions are
reversed when the probability of future taxable
profits improves. Unrecognized deferred tax
assets are reassessed at each reporting
date and recognised to the extent that it has
become probable that future taxable profits will
be available against which they can be used.
Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply in
the year when the asset is realized or the
liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively
enacted at the reporting date.
The measurement of deferred tax reflects the
tax consequences that would follow from the
manner in which the Company expects, at the
reporting date, to recover or settle the carrying
amount of its assets and liabilities. Deferred
tax assets and liabilities are offset only if:
a) the entity has a legally enforceable right
to set off current tax assets against
current tax liabilities; and
b) the deferred tax assets and the deferred
tax liabilities relate to income taxes levied
by the same taxation authority on the
same taxable entity.
E. Inventories
Inventories are carried in the balance sheet
as follows:
(a) Raw materials, Packing materials, Stock
in Trade and Stores & Spares: Cost of raw
materials, packing materials, components,
stores and spares includes cost of purchase
and other costs incurred in bringing the
inventories to their present location and
condition and are carried at lower of cost,
on moving weighted average basis and net
realisable value. However, raw materials
and packing materials and other items held
for use in the production of inventories are
not written down below cost, if the finished
products in which they will be incorporated are
expected to be sold at or above cost. Stores
and spares which do not meet the definition of
property, plant and equipment are accounted
as inventory.
(b) Work-in-progress / project in progress
and Finished goods -: Cost includes direct
materials and direct labour and a proportion
of manufacturing overheads based on normal
operating capacity and other cost bringing
the inventories at their present condition
and location.
Net realizable value is the estimated selling
price in the ordinary course of business, less
the estimated costs of completion and the
estimated costs necessary to make the sale.
The cost of inventories has been computed
to include all cost of purchases, cost of
conversion and other related costs incurred in
bringing the inventories to the present location
and condition. Slow and non-moving material,
obsolescence, defective inventories are duly
provided for and valued at net realizable value.
Goods and materials in transit are valued at
actual cost incurred up to the date of balance
sheet. Materials and supplies held for use in
the production of inventories are not written
down if the finished products in which they
will be used are expected to be sold at or
above cost.
F. Property, plant and equipment (including Capital
work in progress)
i. Recognition and initial measurement
Items of property, plant and equipment
are measured at cost, which includes
capitalised borrowing costs, less accumulated
depreciation and any accumulated impairment
losses, if any. Freehold land is carried at
historical cost and is not depreciated. Capital
work-in-progress is stated at cost.
The cost of an item of property, plant and
equipment shall be recognised as an asset if,
and only if 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 cost of an item of property, plant and
equipment comprises:
a) its purchase price, including import duties
and non-refundable purchase taxes, after
deducting trade discounts and rebates.
b) any costs directly attributable to bringing
the asset to the location and condition
necessary for it to be capable of operating
in the manner intended by management.
c) the initial estimate of the costs of
dismantling and removing the item and
restoring the site on which it is located,
the obligation for which an entity incurs
either when the item is acquired or as
a consequence of having used the item
during a particular period for purposes
other than to produce inventories during
that period.
d) Items of property, plant and equipment
(including capital-work-in progress)
are measured at cost, which includes
capitalised borrowing costs, less
accumulated depreciation and any
accumulated impairment losses Income
and expenses related to the incidental
operations, not necessary to bring the item
to the location and condition necessary
for it to be capable of operating in the
manner intended by management, are
recognised in the Standalone Statement
of Profit and Loss.
If significant parts of an item of property,
plant and equipment have different
useful lives, then they are accounted
and depreciated for as separate items
(major components) of property, plant
and equipment.
Any gain or loss on disposal of an item
of property, plant and equipment is
recognised in the Standalone Statement
of Profit and Loss.
Projects which are not yet ready for their
intended use are carried as capital work in
progress at cost determined as aforesaid.
ii. De-recognition
An item of property, plant and equipment
and any significant part initially recognized
is derecognized upon disposal or when no
future economic benefits are expected from
its use or disposal. Any gain or loss arising on
de-recognition of the asset (calculated as the
difference between the net disposal proceeds
and the carrying amount of the asset) is
included in the Standalone statement of profit
and loss when the asset is derecognized.
iii. Subsequent expenditure
Subsequent expenditure is capitalised only if
it is probable that the future economic benefits
associated with the expenditure will flow to
the Company and the cost of the item can be
measured reliably.
iv. Depreciation/ Amortizations
Depreciation is calculated using the straight¬
line method to allocate their cost, net of their
residual values, over their estimated useful
lives specified in schedule II to the Companies
Act, 2013 except for the following items. The
management believes that these estimated
useful lives are realistic fair approximation of
the period over which the assets are likely to
be used.
(a) Building - 30 years
(b) Office Premises- 60 years
(c) Plant and Machinery- 20 years
(d) M.S. Structure & FRP Gratings- 20 years
(e) Effluent Treatment Plant- 20 years
(f) Safety Equipment’s- 20 years
(g) Quality Control Instruments 10 years
(h) Office equipment’s- 5 years
(i) I T Equipment’s- 3 years
(j) Furniture and fixtures- 10 years
(k) Vehicles- 8 years
(l) R & D Equipment’s - 10 years
(m) Leasehold land - over the term of
lease agreement
Depreciation methods, useful lives and
residual values are reviewed at each reporting
date and adjusted if appropriate. 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 gains/
(losses).
. Intangible assets:
(i) Recognition and initial measurement
Intangible assets with finite useful lives that
are acquired separately are carried at cost
less accumulated amortisation and any
accumulated impairment losses.
The cost of an intangible asset comprises of
its purchase price, including any import duties
and other taxes (other than those subsequently
recoverable from the taxing authorities), and
any directly attributable expenditure on making
the asset ready for its intended use.
Intangible assets with indefinite useful lives
that are acquired separately are carried at cost
less accumulated impairment losses.
(ii) Useful life and amortisation
Intangible assets with finite useful lives that
are acquired separately are carried at cost less
accumulated amortisation and impairment
losses. Amortisation is recognised on a
straight-line basis over the useful lives of the
asset from the date of capitalisation as below:
a) Computer software 3-5 years
The estimated useful life and amortisation
method are reviewed at the end of each
reporting year, with the effect of any
changes in estimate being accounted for
on a prospective basis.
Intangible assets acquired in a business
combination viz. Goodwill, Patents,
Copyrights and Brands do not have
definite useful life and thus, are not
amortised. However, these assets are
tested for impairment on an annual basis.
These are further tested for impairment
upon any indication of impairment
subsequent to annual testing.
(iii) De recognition:
Intangible assets are derecognised on
disposal, or when no future economic
benefits are expected from use or disposal.
Gains or 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 and are
recognized in the Standalone statement of
profit and loss when the asset is derecognized.
H. Impairment of non-financial assets
At the end of each reporting year, the Company
reviews the carrying amounts of its non-financial
assets (other than inventories and deferred tax
assets) to determine whether there is any indication
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). Where 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. Where 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 to sell and value in use. In assessing value in
use, the estimated future cash flows are discounted
to their present value using a pretax 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 it carrying amount, the carrying
amount of the asset (or cash-generating unit) is
reduced to its recoverable amount. An impairment
loss is recognised immediately in the Standalone
Statement of Profit and Loss.
Goodwill and intangible assets that do not have
definite useful life are not amortised and are
tested at least annually for impairment. If events
or changes in circumstances indicate that they
might be impaired, they are tested for impairment
once again.
I. Investments.
The investments in subsidiaries, associates and joint
ventures are carried in these financial statements
at historical ‘cost, except when the investment or
a portion thereof, is classified as held for sale, in
which case it is accounted for as non-current assets
held for sale and discontinued operations. Where
the carrying amount of an investment is greater
than its estimated recoverable amount, it is written
down immediately to its recoverable amount and the
difference is transferred to the Statement of Profit
and Loss. On disposal of investment, the difference
between the net disposal proceeds and the carrying
amount is charged or credited to Profit and Loss.
J. Borrowing costs:
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. Other borrowing costs are
expensed in the period in which they are incurred.
Borrowing costs consist of interest and other
costs that an entity incurs in connection with the
borrowing of funds. Borrowing cost also includes
exchange difference to the extent regarded as an
adjustment to the borrowing costs.
K. Segment Reporting
Operating segments are reported in a manner
consistent with the internal reporting provided to
the Chief Operating Decision Maker (“CODM”) of
the Company. The CODM, who is responsible for
allocating resources and assessing performance
of the operating segments, has been identified as
the Board of directors. The Company has identified
only one segment as reporting segment based on
the information reviewed by CODM. The Company
operates in one reportable business segment i.e.
“Speciality Chemicals”.
L. Financial Instruments
a. Recognition initial measurement
Trade receivables and debt securities are
initially recognised when they originate. All
other financial assets and financial liabilities
are initially recognised when the Company
becomes a party to the contractual provisions
of the instrument. A financial asset or financial
liability is initially measured at fair value.
Transaction costs that are directly attributable
to the acquisition or issue of financial assets
and financial liabilities (other than financial
assets and financial liabilities at fair value
through profit or loss) are added to or deducted
from the fair value of the financial assets or
financial liabilities, as appropriate, on initial
recognition. However, trade receivables that do
not contain a significant financing component
are measured at transaction price.
b. Classification and subsequent
measurement
Financial Assets
Financial Assets: Classification
On initial recognition, a financial asset is
classified as measured at:
• amortised cost or
• FVTPL
Financial assets are not reclassified
subsequent to their initial recognition, except
if and in the period the Company changes its
business model for managing financial assets.
A financial asset is measured at amortised
cost if it meets both of the following conditions
and is not designated as at FVTPL:
• the asset is held within a business model
whose objective is to hold assets 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.
Financial assets: Business
model assessment:
The Company makes an assessment of
the objective of the business model in
which a financial asset is held at a portfolio
level because this best reflects the way the
business is managed and information is
provided to management. The information
considered includes:
• The stated policies and objectives for
the portfolio and the operation of those
policies in practice. These include
whether management’s strategy focuses
on earning contractual interest income,
maintaining a particular interest rate
profile, matching the duration of the
financial assets to the duration of any
related liabilities or expected cash
outflows or realising cash flows through
the sale of the assets;
• how the performance of the portfolio
is evaluated and reported to the
Company’s management.
• the risks that affect the performance of
the business model (and the financial
assets held within that business model)
and how those risks are managed
• how managers of the business are
compensated -e.g. whether compensation
is based on the fair value of the assets
managed or the contractual cash flows
collected; and
• the frequency, volume and timing of sales
of financial assets in prior periods, the
reasons for such sales and expectations
about future sales activity.
Transfers of financial assets to third parties
in transactions that do not qualify for
derecognition are not considered sales for
this purpose, consistent with the Company’s
continuing recognition of the assets. Financial
assets that are held for trading or are managed
and whose performance is evaluated on a
fair value basis are measured at FVTPL. The
Company recognises transfers between levels
of the fair value hierarchy at the end of the
reporting period during which the change
has occurred.
Financial assets: Assessment whether
contractual cash flows are solely payments
of principal and interest:
For the purposes of this assessment, ‘principal’
is defined as the fair value of the financial asset
on initial recognition. ‘Interest’ is defined as
consideration for the time value of money and
for the credit risk associated with the principal
amount outstanding during a particular period
of time and for other basic lending risks and
costs (e.g. liquidity risk and administrative
costs), as well as a profit margin.
In assessing whether the contractual cash
flows are solely payments of principal
and interest, the Company considers the
contractual terms of the instrument. This
includes assessing whether the financial asset
contains a contractual term that could change
the timing or amount of contractual cash flows
that it would not meet this condition. In making
this assessment, the Company considers:
• contingent events that would change the
amount or timing of cash flows;
• terms that may adjust the contractual
coupon rate, including variable interest
rate features;
• prepayment and extension features; and
• terms that limit the Company’s claim to
cash flows from specified assets (e.g.
non-recourse features).
A prepayment feature is consistent with
the solely payments of principal and
interest criterion if the prepayment amount
substantially represents unpaid amounts of
principal and interest on the principal amount
outstanding, which may include reasonable
additional compensation for early termination
of the contract Additionally, for a financial asset
acquired at a significant discount or premium
to its contractual par amount, a feature that
permits or requires prepayment at an amount
that substantially represents the contractual
par amount plus accrued (but unpaid)
contractual interest (which may also include
reasonable additional compensation for early
termination) is treated as consistent with this
criterion if the fair value of the prepayment
feature is insignificant at initial recognition.
Financial assets: subsequent
measurement and gains and losses:
Financial assets at FVTPL: These assets are
subsequently measured at fair value. Net gains
and losses, including any interest or dividend
income, are recognised in profit or loss.
Financial assets at amortised cost: These
assets are subsequently measured at
amortised cost using the effective interest
method. The amortised cost is reduced by
impairment losses. Interest income, foreign
exchange gains and losses and impairment
are recognised in profit or loss. Any gain or
loss on derecognition is recognised in profit
or loss.
Financial Liabilities
Financial liabilities: Classification,
subsequent measurement and gains and
losses:
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 profit or
loss. Other financial liabilities are subsequently
measured at amortised cost using the effective
interest method. Interest expense and foreign
exchange gains and losses are recognized in
profit or loss. Any gains or loss on derecognition
is also recognized in the Standalone statement
of profit and loss.
c. Derecognition:
Financial assets
The Company derecognizes a financial asset
when the contractual rights to the cash flows
from the financial asset expire, or it transfers
the rights to receive the contractual cash flows
in a transaction in which substantially all of the
risks and rewards of ownership of the financial
asset are transferred or in which the Company
neither transfers not retains substantially all of
the risks and rewards of ownership but does
not retain control of the financial asset. If the
Company enters into transactions whereby
it transfers assets recognized on its balance
sheet, but retains either all or substantially all of
the risks and rewards of the transferred assets,
the transferred assets are not derecognized.
Financial liabilities
The Company derecognises a financial liability
when its contractual obligations are discharged
or cancelled, or expired. The Company also
derecognises a financial liability when its
terms are modified and the cash flow under
the modified terms are substantially different.
In this case, a new financial liability based on
the modified terms is recognised at fair value.
The difference between the carrying amount
of the financial liability extinguished and the
new financial liability with modified terms is
recognised in the Standalone statement of
profit and loss.
d. Offsetting
Financial assets and financial liabilities are
offset and the net amount presented in the
balance sheet when, and only when, the
Company currently has a legally enforceable
right to set off the amounts and it intends either
to settle them on a net basis or to realise the
asset and settle the liability simultaneously.
e. Equity instruments
Equity instruments issued by the Company
are classified according to the substance of
the contractual arrangements entered into
and the definitions of an equity instrument.
An equity instrument is any contract that
evidences a residual interest in the assets of
the Company after deducting all of its liabilities
and includes no obligation to deliver cash or
other financial assets.
f. Financial assets impairment and write off
At each reporting date, the Company assesses
whether financial assets carried at amortised
cost, are credit impaired. A financial asset is
‘credit-impaired’ when the events that have
a detrimental impact on the estimated future
cash flows of the financial asset have occurred.
The Company assessed the expected credit
losses associated with its assets carried at
amortised cost based on the Company’s
past history of recovery, credit worthiness
of the counter party and existing and future
market conditions.
For all financial assets other than trade
receivables, expected credit losses are
measured at an amount equal to the 12-month
expected credit loss (ECL) unless there has
been a significant increase in credit risk
from initial recognition in which case those
are measured at lifetime ECL. For trade
receivables, the Company has applied
the simplified approach for recognition of
impairment allowance as provided in Ind AS
109 which requires the expected lifetime losses
from initial recognition of the receivables.
The gross carrying amount of a financial
asset is written off when the Company has
no reasonable expectations of recovering the
financial asset in its entirety or a portion thereof.
A write-off constitutes a derecognition event.
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