Investments in equity instruments other than joint venture

The Group has valued the investments in equity instruments other than joint ventures at fair value through other
comprehensive Income. Fair value of quoted instrument has been valued at market rate and in case of unquoted
instrument it has been valued at book value of that Company based on Level 2 input.

In respect of investment in equity share capital of group captive power companies which are made to comply with the
provisions of Electricity Rules 2003, these investments are carried at cost as these investments can be sold back only
at par.

 

 

Cash and cash equivalent:
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand,

deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of
three months or less that are readily convertible to known amounts of cash which are subject to an insignificant risk of
changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the
Balance Sheet.

Trade receivables

Trade receivables are initially recognised at fair value. Subsequently, these assets are held at amortised cost net of any
expected credit losses. Loss allowance on trade receivables is measured at an amount equal to life time expected
losses i.e., expected cash shortfall.

Impairment of financial assets:
A financial asset is regarded as credit impaired when one or more events that may have a detrimental effect on

estimated future cash flows of the asset have occurred. The Group applies the expected credit loss model for
recognizing impairment loss on financial assets (i.e. the shortfall between the contractual cash flows that are due and
all the cash flows (discounted) that the Group expects to receive).

De-recognition of financial assets:

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when
it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If
the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control
the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it
may have to pay. On de-recognition of a financial asset in its entirety, the difference between the asset's carrying
amount and the sum of the consideration received and receivable is recognised in the Statement of Profit and Loss.

Financial liabilities and equity instruments:

Classification as debt or equity

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

Equity instruments

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

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

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