2.14 Provisions:
Provisions are recognized when the company has a present obligation, as a result of pa si events for Which it is p aria hie that an outflow of economic benefilS will be required tc settle the obligation and a reliable estimate car op made for the amount of obligation These estimates aie reviewed at each reporting date and adjusted to reflect the current best estimates
The amount recognised as a provision is the best estimate of the consideiation required to settle the present obligation at trie end of the reporting period taking into account the risks and uncertainties surrounding the obligation When a provision is measured using the cash flows estimated to settle the present obligation its carrying amount is the present value of lhose cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to so tile a provision are expected to be recovered from o ihirct party a receivable i$ recognised as 3n asset il it is virtually certain that reimbursement will he received and the amount of the receivable can be measured reliably
2.15 Operating Reporting:
The company uses the management approach for reporting information about segments in annual financial statements The management approach is based on The way the Chief Operating decision maker organizes segment within a company for making operating decisions and assessing the performance Reportable segments are based on services geography legal structure management structure and any other manner in which management disaggregates e company Based on the managmenl approach model the company has determined that its business model is comprised of manufacture of Cables and Property development ) real estate activities.
2.16 Earnings porshare;
Basic tamings per snare are computed by dividing the net profit aftertax by (ha weighted average numbar of equity snares outstanding during the year The company did not hove any potentially dilutive securities In any of the years presented
2.17 Financial Instruments:
Financial assets and financial liabilities are recognised when a group entity becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured et fair value Transaction costs that are directly attributable to I he acquisition or issue of financial assets and financial liabilities (ether than financial assets and financial liabilities at fair value through profit or loss) are added to at deducted from the fairvalue ofthe financial assets or financial liabilities as appropriate on initial recognition Transaction costs directly attributable to the acquisition ?( financial assets pr financial liabilities at fair value through profit or lass are recognised immediately in prnfil or loss
Initial recognition
T ne Company recognizes financial assets and linanc^l liabilities when il becomes a party to Ihe contractual provisions of Ihe instrument. All financial assets and liabilities are recognized at fair value on initial re cognition, except lor trade receivables which are Initially measured at transaction price Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, that are not at fair value through Statement of Profit and Loss are added to the fair value on initial recognition Regular way purchase and sale <jl financial assets are accounted far at trade date
Subsequent measure mem
A. Non-derivative financial inslruments
Financial assets carried at amortised cost
A financial asset is subsequently measured at amortised cost if It is herd within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of tha fin an eta I asset give rise on specified oates to cash flows that are solely payments of principal and interest on the principal amount outstanding
Financial assets at fair value through other comprehensive Income
A financial assel is Subsequently measured a! fair value through older comprehensive income if II rs Meld withm a business model whose objective is achieved by both collecting contractual cash Mows and selling financial assets and the contractual terms of the financial asset gwe rise on specified dates to cash flows thal are solely payments oF principal and interest on the principal amount outstanding Further in oases where the Company has made an irrevocable election based on its business model for irs investments which are classified as equity instruments, the subsequent changes in fair value are recognized in other comprehensive income
Financial assets affair value through profit and loss (FVTPL)
A financial assel which is nol classified in any of the above categories are subsequently fair valued through Statement of Profit and Loss
Financial liabilities
Financial liabilities are subsequently earned at amortized cost using Ihe effective interest method excepl for contingent consideration recog mzed iq a business combination which ts subsequently measured at fair value Ihrough Statement of profit and Loss. For trade and other payehtes maturing within one year from the Balance Sheer date the carrying amounts approximate the fair value due !o Ihe short maturity of these instruments
5. Share Capital
Ordinary shares are classified as equity Incremental costs directly attributable to the issuance ol new ordinary shares are recognized as a deduction from equity, net of any tax effects
Derecognition of financial instruments
The Company da recognizes a financial asset when The contractual nghts to The cash flows from the financial asset expire or ittransfersthe financial asset and the transfer qualifies for de-recognition under inu AS 109 A financial liability tor a pan 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
Impairment qf financial assets
In accordance with ind AS 103,The Company recognizes Loss allowances using the expected credit loss 4(ECLi model tor the Financial assets which erf: nol Fair valued Ihrough Statement of Profit and Loss Loss allowance fur trade receivables with no significant financing component is measured at an amount equal to lifetime ECL For all other financial assets expected credit fosses are measured at an amount equal to the 12-month ECL. unless there has been a significant Increase In credit risk from I ml la I recognition In which case those are measured at lifetime ECL The amount of expected credrt losses (or reversal) that is required to adjust the loss allowance at the reporting dale to the amount that is required to be recognised is tecogmsed as an impairment gam or loss m Statement of Profit and Loss
3,DO Operating cycle and basis of classification of assets and liabilities
a The real estate development projects undertaken by the Company is generally run over a period ranging upio 5 years Operating assets and liabilities relating to such projects are classified as current based on an operating cycle of 5 years Borrowings In connection with such projects are classified as current since they form part ol working capital of the respective projects
D Assets and liabilities other than those discussed in paragraph (at above, are classified as current ta Ihe extent they are expected to be realised I are contractually repayable within 12 monlhs Irom the Balance Sheet date and as non-CUtrent, in other cases
Current versus non-current classification
The Company presents assets and liabilities in ihe balance sheet based on current/ non-currenl classification An asset is treated as current when it is
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