Investor Presentaiton
MRP
b)
The Group follows 'simplified approach' for recognition
of impairment on trade receivables or contract assets
resulting from normal business transactions. The
application of simplified approach does not require
the Group to track changes in credit risk. However, it
recognises impairment loss allowance based on lifetime
ECLS at each reporting date, from the date of initial
recognition.
For recognition of impairment loss on other financial
assets, the Group determines whether there has been
a significant increase in the credit risk since initial
recognition. If credit risk has increased significantly,
lifetime ECL is provided. For assessing increase in credit
risk and impairment loss, the Group assesses the credit
risk characteristics on instrument-by-instrument basis.
ECL is the difference between all contractual cash flows
that are due to the Group in accordance with the contract
and all the cash flows that the entity expects to receive
(i.e., all cash shortfalls), discounted at the original EIR.
Impairment loss allowance (or reversal) recognized
during the period is recognized as expense/income in
the consolidated statement of profit and loss.
Financial Liabilities
The Group's financial liabilities includes borrowings,
trade payable, accrued expenses and other payables.
Initial recognition and measurement
All financial liabilities at initial recognition are
classified as financial liabilities at amortized cost or
financial liabilities at fair value through profit or loss,
as appropriate. All financial liabilities are recognized
initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable
transaction costs. Any difference between the proceeds
(net of transaction costs) and the fair value at initial
recognition is recognised in the consolidated statement
of profit and loss depending upon the level of fair value.
Subsequent measurement
The subsequent measurement of financial liabilities
depends upon the classification as described below:-
Financial Liabilities classified as Amortised Cost:
Financial Liabilities that are not held for trading and are
not designated as at FVTPL are measured at amortised
cost at the end of subsequent accounting periods.
Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs
that are an integral part of the Effective Interest Rate.
Interest expense that is not capitalised as part of costs of
assets is included as Finance costs in the consolidated
statement of profit and loss.
Financial Liabilities at Fair value through profit and loss
(FVTPL)
FVTPL includes financial liabilities held for trading and
financial liabilities designated upon initial recognition
as FVTPL. Financial liabilities are classified as held
for trading if they are incurred for the purpose of
repurchasing in the near term. Financial liabilities have
not been designated upon initial recognition at FVTPL.
Derecognition
A financial liability is derecognised when the obligation
under the liability is discharged / cancelled expired.
When an existing financial liability is replaced by
another from the same lender on substantially different
terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated
as the derecognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognized in the
consolidated statement of profit and loss.
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
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