Page 180 - KRCL ENglish

Financial assets at amortized cost
Financial assets are subsequently measured at amortised cost if these nancial
assets are held within a business model with an objective to hold these assets in order
to collect contractual cash ows and the contractual terms of the nancial asset give
rise on specied dates to cash ows that are solely payments of principal and interest
on the principal amount outstanding. Interest income from these nancial assets is
included in nance income using the effective interest rate (“EIR”) method.
Impairment gains or losses arising on these assets are recognized in the Statement of
Prot and Loss.

Financial assets at fair value through other comprehensive income
Financial assets are measured at fair value through other comprehensive income if
these nancial assets are held within a business whose objective is achieved by both
collecting contractual cash ows and selling nancial assets and the contractual
terms of the nancial asset give rise on specied dates to cash ows that are solely
payments of principal and interest on the principal amount outstanding. Movements
in the carrying amount are taken through OCI, except for the recognition of
impairment gains or losses, interest revenue and foreign exchange gains and losses
which are recognized in the Statement of Prot and Loss. In respect of equity
investments (other than for investment in subsidiaries and associates) which are not
held for trading, the Company has made an irrevocable election to present
subsequent changes in the fair value of such instruments in OCI. Such an election is
made by the Company on an instrument by instrument basis at the time of transition
for existing equity instruments/ initial recognition for new equity instruments.

Financial assets at fair value through prot or loss
Financial assets are measured at fair value through prot or loss unless it is measured
at amortized cost or at fair value through other comprehensive income on initial
recognition. The transaction costs directly attributable to the acquisition of nancial
assets at fair value through prot or loss are immediately recognized in statement of
prot and loss.

Impairment of Financial Assets
In accordance with Ind AS 109, the Company applies the expected credit loss (”ECL”)
model for measurement and recognition of impairment loss on nancial assets and
credit risk exposures. The Company follows 'simplied approach' for recognition of
impairment loss allowance on trade receivables. Simplied approach does not
require the Company to track changes in credit risk. Rather, it recognizes impairment

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