Page 283 - KRCL ENglish

Notes to Consolidated Financial Statements as at 31st March, 2020
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
loss allowance based on lifetime ECL at each reporting date, right from its initial
recognition. For recognition of impairment loss on other nancial assets and risk

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