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AMINES & PLASTICIZERS LTD

NOTES FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2019

vi. CashandBankBalances

Cash and cash equivalents – which includes cash in hand,deposits at call with banks and other short-
term deposits which are readily convertible into cash and which are subject to an insignificant risk of
changesinvalueandhavematuritiesoflessthanoneyearfromthedateofsuchdeposits.
Other Bank Balances – which includes balances and deposits with banks that are restricted for
withdrawalandusage.
vii. TradeReceivablesandLoans
Trade receivables are initially recognised at fair value.Subsequently,these assets are held at amortised
cost,using the effective interest rate (EIR) method net of any expected credit losses.The EIR is the rate
thatdiscountsestimatedfuturecashincomethroughtheexpectedlifeoffinancialinstrument.
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 Group uses ‘Expected Credit Loss’ (ECL) model, for evaluating
impairmentoffinancialassetsotherthanthosemeasuredatfairvaluethroughprofitandloss(FVTPL).
For financial assets other than trade receivables, as per Ind AS 109, the Group 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 Group’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
FinancialliabilitiesarerecognisedwhentheGroupbecomesapartytothecontractualprovisionsofthe
instrument. Trade and other payable are initially recognized at the fair value of the consideration
receivedlessdirectlyattributabletransactioncost.

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 Group derecognizes a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under

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CONSOLIDATED NOTES TO THE ACCOUNTS