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AMINES & PLASTICIZERS LTD

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 3 1ST MARCH 201 9
viii. DebtInstruments

Debt instruments are initially measured at amortised cost, fair value through other comprehensive
income (‘FVOCI’) or fair value through profit or loss (‘FVTPL’) till derecognition on the basis of (i) the
entity’s business model for managing the financial assets and (ii) the contractual cash flow
characteristicsofthefinancialasset.

C. ImpairmentofFinancialAsset
In accordance with Ind AS 109, the Company uses ‘Expected Credit Loss’ (ECL) model, for evaluating
impairmentoffinancialassetsotherthanthosemeasuredatfairvaluethroughprofitandloss(FVTPL).
For financial assets other than trade receivables,as per Ind AS 109,the Company recognizes 12 month
expectedcreditlossesforalloriginatedoracquiredfinancialassetsifatthereportingdatethecreditrisk
of the financial asset has not increased significantly since its initial recognition. The expected credit
losses are measured as lifetime expected credit losses if the credit risk on financial asset increases
significantly since its initial recognition. The Company’s trade receivables do not contain significant
financing component and loss allowance on trade receivables is measured at an amount equal to life
timeexpectedlossesi.e.expectedcashshortfall.
TheimpairmentlossesandreversalsarerecognisedinStatementofProfitandLoss.

II. FinancialLiabilities
a. InitialRecognitionandMeasurement
Financial liabilities are recognised when the Company becomes a party to the contractual
provisions of the instrument.Trade and other payable are initially recognized at the fair value of the
considerationreceivedlessdirectlyattributabletransactioncost.
Financial liabilities are initially measured at the amortised cost unless at initial recognition, they are
classified as fair value through profit and loss.In case of trade payables,they are initially recognised at
fair value and subsequently, these liabilities are held at amortised cost, using the effective interest
method.
b. ClassificationandSubsequentMeasurement
Financial liabilities are subsequently measured at amortised cost using the EIR method. Financial
liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair
valuerecognisedintheStatementofProfitandLoss.
III. DerecognitionofFinancialInstruments
The Company derecognizes a financial asset when the contractual rights to the cash flows from the
financialassetexpireorittransfersthefinancialassetandthetransferqualifiesforderecognitionunder
Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company's
BalanceSheetwhentheobligationspecifiedinthecontractisdischargedorcancelledorexpires.

l. Provision,ContingentLiabilities&ContingentAssets
ProvisionsarerecognizedwhentheCompanyhasapresentobligation(legalorconstructive),asaresult
ofpastevents,forwhichitisprobablethatanoutflowofeconomicbenefitswillberequiredtosettlethe
obligationandareliableestimatecanbemadefortheamountoftheobligation.
If the effect of the time value of money is material, provisions are measured on a discounted basis to
reflect its present value using a current pre-tax rate that reflects the current market assessments of the
time value of money and the risks specific to the obligation.When discounting is used,the increase in
theprovisionduetothepassageoftimeisrecognisedasafinancecost.
A contingent liability is a possible obligation that arise from past events whose existence will be
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NOTES TO THE ACCOUNTS