2.03 Provisions, contingent liabilities and contingent assets
Provisions
Provisions are recognized when the Company has a present obligation (legal or
constructive) as a result of a past event and it is probable that the outflow of resources
embodying economic benefits will be required to settled the obligation in respect of which
reliable estimate can be made of the amount of the obligation. When the Company expects
some or all of a provision to be reimbursed, the expense relating to provision presented in
the statement of profit & loss is net of any reimbursement.
If the effect of the time value of money is material, provisions are disclosed using a current
pre-tax rate that reflects, when appropriate, the risk specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognized as
finance cost.
Contingent liability is disclosed in the notes in case of:
There is a possible obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non- occurrence of one or more uncertain future events
not wholly within the control of the Company.
A present obligation arising from past event, when it is not probable that as outflow of
resources will be required to settle the obligation
A present obligation arises from the past event, when no reliable estimate is possible
A present obligation arises from the past event, unless the probability of outflow are
remote.
Commitments include the amount of purchase order (net of advances) issued to parties for
completion of assets.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each
balance sheet date
Onerous Contracts
A provision for onerous contracts is measured at the present value of the lower expected
cost of terminating the contract and the expected cost of continuing with the contract. Before
a provision is established, the Company recognizes the impairment on the assets with the
contract.
Contingent assets
Contingent assets are not recognized in the financial statements.
2.04 Useful lives of depreciable assets
Management reviews the useful lives of depreciable assets at each reporting. As at March
31,2024 management assessed that the useful lives represent the expected utility of the
assets to the company. Further, there is no significant change in the useful lives as compared
to previous year.
2.05 Functional and presentation currency
These financial statements are presented in Indian rupees, which is also the functional
currency of the Company. All the financial information presented in Indian rupees has been
rounded to the nearest Lakhs as per the requirement of Schedule III to the Act, unless stated
otherwise.
Foreign Currencies :
In preparing the financial statements of the company transactions in currencies other than
the entity's functional currency (foreign currencies) are recognised at the rates of exchange
prevailing at the date of transactions. At the end of each reporting period ,monetary items
denominated in foreign currencies are retranslated at the rates prevailing at that date. Non
-Monetary items carried at fair value that are denominated in foreign currencies are
retranslated at the rates prevailing at the date when fair value was determined. Non¬
monetary items that are measured in terms of historical cost in a foreign currency are not
retranslated.
For the purpose of presenting these financial statements , the assets and liabilities of the
company's foreign operations are translated into currency units using exchange rates
prevailing at the end of each reporting period.
2.06 Property Plant & Equipment
Recognition and measurement
Property, Plant and Equipment are stated at cost of acquisition or construction less
accumulated depreciation and impairment loss, if any. Cost includes expenditures that are
directly attributable to the acquisition of the asset i.e., freight, duties and taxes applicable
and other expenses related to acquisition and installation. The cost of self-constructed
assets includes the cost of materials and other costs directly attributable to bringing the
asset to a working condition for its intended use. Borrowing costs that are directly
attributable to the construction or production of a qualifying asset are capitalized as part
of the cost of that asset.
When parts of an item of property, plant and equipment have different useful lives, they
are accounted for as separate items (major components) of property, plant and equipment.
Gains and losses upon disposal of an item of property, plant and equipment are
determined by comparing the proceeds from disposal with the carrying amount of property,
plant and equipment and are recognized net within in the statement of profit and loss.
The cost of replacing part of an item of property, plant and equipment is recognized in the
carrying amount of the item if it is probable that the future economic benefits embodied
within the part will flow to the Company and its cost can be measured reliably. The costs of
repairs and maintenance are recognized in the statement of profit and loss as incurred.
Items of property, plant and equipment acquired through exchange of non-monetary assets
are measured at fair value, unless the exchange transaction lacks commercial substance or
the fair value of either the asset received or asset given up is not reliably measurable, in
which case the asset exchanged is recorded at the carrying amount of the asset given up.
Property ,Plant and Equipment which are not ready for intended use as on the date of
balance sheet will be disclosed as "Capital Work -in-Progress". intangible assets with finite
useful lives that are acquired separately are carried at cost less accumulated amortisation
and accumulated impairment losses.
Intangible assets acquired separately:
Intangible assets with finite useful lives that are acquired separately are carried at cost less
accumulated amortisation and accumulated impairment losses. Amortisation is recognised
on a straight line basis over their estimated useful lives. The estimated useful life and
amortisation method are reviewed at the end of each reporting period, with the effect of
any changes in estimate being accounted for on a prospective basis. Intangible assets with
indefinite useful lives that are acquired separately are carried at cost less accumulated
impairment losses.
Depreciation
Depreciation on Property, Plant and Equipment (PPE) and Intangible assets is calculated on
the basis of useful lives as prescribed under Schedule II to the Companies Act, 2013.
Impairment of tangible and intangible assets other than goodwill
At the end of each reporting period, the company reviews the carrying amounts of its
tangible and intangible assets to determine whether there is any indication that those assets
have suffered an impairment loss. If any such indication exists, the recoverable amount of
the asset is estimated in order to determine the extent of the impairment loss(if any). When it
is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs
.When a reasonable and consistent basis of allocation can be identified, corporate assets
are also allocated to individual cash-generating units, or otherwise they are allocated to the
smallest company of cash-generating units for which a reasonable and consistent allocation
basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use
are tested for impairment at least annually, and whenever there is an indication that the
asset may be impaired.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In
assessing value in use, the estimated future cashflows are discounted to their present value
using a pre tax discount rate that reflects current market assessments of the time value of the
money and the risks specific to the asset for which the estimates of future cash flows have not
been adjusted.
If the recoverable amount of an asset (or cash -generating unit) is estimated to be less than
its carrying amount , the carrying amount of the asset (or cash-generating unit) is reduced to
its recoverable amount. An impairment loss is recognised immediately in profit or loss.
When an impairment loss subsequently reverses, the carrying amount of the asset ( or a
cash-generating unit) is increased to the revised estimate of its recoverable amount, but so
that the increased carrying amount does not exceed the carrying amount that would have
been determined had no impairment loss been recognised for the asset ( or cash-generating
unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or
loss statement.
2.07 Leases
The Company evaluates if an arrangement qualifies to be a lease as per the requirements
of Ind AS 116. Identification of a lease requires significant judgement. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration. The determination of whether an arrangement
is (or contains) a lease is based on the substance of the arrangement at the inception of the
lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent
on the use of a specific asset or assets and the arrangement conveys a right to use the asset
or assets, even if that right is not explicitly specified in an arrangement.
Company as a lessee
The Company assesses whether a contract contains a lease, at inception of a contract. A
contract is, or contains, a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration. To assess whether a
contract conveys the right to control the use of an identified asset, the Company assesses
whether: (i) the contract involves the use of an identified asset (ii) the Company has
substantially all of the economic benefits from use of the asset through the period of the
lease and (iii) the Company has the right to direct the use of the asset. The Company uses
significant judgement in assessing the lease term (including anticipated renewals) and the
applicable discount rate. The determination of whether an arrangement is (or contains) a
lease is based on the substance of the arrangement at the inception of the lease. The
arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use
of a specific asset or assets and the arrangement conveys a right to use the asset or assets,
even if that right is not explicitly specified in an arrangement.
At the date of commencement of the lease, the Company recognises a right-of-use asset
(“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee,
except for leases with a term of twelve months or less (short-term leases) and low value
leases. For these short-term and low value leases, the Company recognises the lease
payments as an operating expense on a straight-line basis over the term of the lease.
The right-of-use assets are initially recognised at cost, which comprises the initial amount of
the lease liability adjusted for any lease payments made at or prior to the commencement
date of the lease plus any initial direct costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated from the commencement date on a straight-line basis
over the lease term and useful life of the underlying asset. The lease liability is initially
measured at amortised cost at the present value of the future lease payments. The lease
payments are discounted using the interest rate implicit in the lease or, if not readily
determinable, using the incremental borrowing rates in the country of domicile of these
leases. Lease liabilities are remeasured with a corresponding adjustment to the related
right of use asset if the Company changes its assessment if whether it will exercise an
extension or a termination option.
2.08 Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
A. Financial Assets
I. Initial Recognition
In the case of financial assets, not recorded at fair value through profit or loss (FVPL),
financial assets are recognized initially at fair value plus transaction costs that are
directly attributable to the acquisition of the financial asset. Purchases or sales of
financial assets that require delivery of assets within a time frame established by
regulation or convention in the market place (regular way trades) are recognized on
the trade date, i.e., the date that the Company commits to purchase or sell the asset.
ii. Subsequent Measurement
For purposes of subsequent measurement, financial assets are classified in the
following categories:
a. Financial Assets at Amortized Cost
Financial assets are subsequently measured at amortized cost if these financial
assets are held within a business model with an objective to hold these assets in
order to collect contractual cash flows and the contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding. Interest income from
these financial assets is included in finance income using the effective interest rate
(“EIR”) method. Impairment gains or losses arising on these assets are recognized
in the Statement of Profit and Loss.
b. Financial Assets Measured at Fair Value
Financial assets are measured at fair value through OCI if these financial assets
are held within a business model with an objective to hold these assets in order to
collect contractual cash flows or to sell these financial assets and the contractual
terms of the financial asset give rise on specified dates to cash flows 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 Profit and Loss.
Investment in Equity Instruments are designated as Financial Assets measured at
fair value through OCI and Investments in Mutual Funds are designated as
Financial Assets measured at fair value through statement of Profit & Loss on date
of transition.
c. Impairment of Financial Assets
In accordance with Ind AS 109, expected credit loss (ECL) model for
measurement and recognition of impairment loss on the trade receivables or any
contractual right to receive cash or another financial asset that result from
transactions that are within the scope of Ind AS 18. As Company trade
receivables are realized within normal credit period adopted by the company,
hence the financial assets are not impaired.
d. De-recognition of Financial Assets
The Company de-recognizes a financial asset only when the contractual rights to
the cash flows from the asset expire, or it transfers the financial asset and
substantially all risks and rewards of ownership of the asset to another
entity.
If the Company neither transfers nor retains substantially all the risks and
rewards of ownership and continues to control the transferred asset, the
Company recognizes its retained interest in the assets and an associated liability
for amounts it may have to pay.
If the Company retains substantially all the risks and rewards of ownership of a
transferred financial asset, the Company continues to recognize the financial
asset and also recognizes a collateralized borrowing for the proceeds received.
e. Other Financial Assets
In respect of its other financial assets, the Company assesses if the credit risk on
those financial assets has increased significantly since initial recognition. If the
credit risk has not increased significantly since initial recognition, the Company
measures the loss allowance at an amount equal to 12-month expected credit
losses, else at an amount equal to the lifetime expected credit losses.
B. Financial Liabilities
Financial liabilities and equity instruments issued by the Company are classified according
to the substance of the contractual arrangements entered into and the definitions of a
financial liability and an equity instrument.
I. Initial Recognition
Financial liabilities are classified, at initial recognition, as financial liabilities at FVPL,
loans and borrowings and payables as appropriate. All financial liabilities are
recognized initially at fair value and in the case of loans and borrowings and
payables, net of directly attributable transaction costs. Fees of recurring nature are
directly recognised in the statement of profit and loss as finance cost.
ii. Subsequent Measurement
The measurement of financial liabilities depends on their classification, as described
below:
a. Financial liabilities at FVPL
Financial liabilities at FVPL include financial liabilities held for trading and
financial liabilities designated upon initial recognition as at FVPL. Financial
liabilities are classified as held for trading if they are incurred for the purpose of
repurchasing in the near term. Gains or losses on liabilities held for trading are
recognised in the Statement of Profit and Loss.
iii. De-recognition of Financial Liabilities
Financial liabilities are de-recognised when the obligation specified in the contract is
discharged, cancelled or expired. When an existing financial liability is replaced by
another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is
treated as de-recognition of the original liability and recognition of a new liability.
The difference in the respective carrying amounts is recognized in the Statement of
Profit and Loss.
Impairment of non-financial assets
Intangible assets and property, plant and equipment are evaluated for
recoverability whenever events or changes in circumstances indicate that their
carrying amounts may not be recoverable. For the purpose of impairment testing, the
recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in¬
use) is determined on an individual asset basis unless the asset does not generate
cash flows that are largely independent of those from other assets. In such cases, the
recoverable amount is determined for the Cash Generated Units (CGU) to which the
asset belongs. If such assets are considered to be impaired, the impairment to be
recognized in the statement of profit and loss is measured by the amount by which the
carrying value of the assets exceeds the estimated recoverable amount of the asset.
An impairment loss is reversed in the statement of profit and loss if there has been a
change in the estimates used to determine the recoverable amount. The carrying
amount of the asset is increased to its revised recoverable amount, provided that this
amount does not exceed the carrying amount that would have been determined (net
of any accumulated amortization or depreciation) had no impairment loss been
recognized for the asset in prior years.
2.09 Cash and Cash Equivalents
Cash and Bank balances comprise of cash balance in hand, Cheques in hand, balance in
current accounts with banks and Bank Fixed Deposits with maturity of 3 months or less than 3
months. Balances earmarked for a purpose (like dividend) are shown separately.
Cash flow Statement
Cash flows are reported using the indirect method, where by profit before tax is adjusted
for the effects of transactions of a non-cash nature, any deferrals or accruals of past or
future operating cash receipts or payment and items of income or expenses associated with
investing or financing cash flows. The cash flows from operating, investing and financing
activities of the company are segregated .
2.10 Employee Benefits
Short term employee benefits :
The undiscounted amount of short term employee benefits expected to be paid in
exchange for the services rendered by employees are recognised as an expense during
the period when the employees render the services.
The Company is exempted from Payment of Gratuity Act, 1972 in view of its strength of
employees being less than threshold limit attracting the applicability of the said statute and
as such no provision has been made for the said liability. Leave encashment is not provided
on actuarial basis in view of employees being less than 10 and same is charged on actual
basis.
2.11 Borrowing Cost:
Borrowing costs are charged to the Statement of Profit and Loss except in cases where the
borrowings are directly attributable to the acquisition. Construction or production of
qualifying assets which are assets that necessarily take a substantial period of time to get
ready for their intended use or sale , are added to the cost of those assets ,until such time as
the assets are substantially ready for their intended use or sale.
2.12 Government Grants:
Ind AS 20 gives an option to present the grants related to assets, including nonmonetary
grants at fair value in the balance sheet either by setting up the grant as deferred income or
by deducting the grant in arriving at the carrying amount of the asset.
2.13 Estimates and assumptions
The preparation of company's financial statements requires management to make
judgements , estimates and assumptions that effect the reported amounts of revenues,
expenses , assets and liabilities ,and the accompanying disclosures, and the disclosure of
contingent liabilities.
Uncertainty about these assumptions and estimates could result in outcomes that require a
material adjustment to the carrying amount of assets or liabilities affected in future periods.
2.14 Revenue recognition
Revenue from contracts with customers is recognised to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be reliably measured,
regardless of when the payment is being made. When a performance obligation is
satisfied, the revenue is measured at the transaction price which is consideration received or
receivable, net of returns and allowances, trade discounts and volume rebates after taking
into account contractually defined terms of payment and excluding taxes or duties collected
on behalf of the government. The Company derives revenue primarily from trading
operation of plastic granules and other plastic products
The following is summary of material accounting policies relating to revenue recognition.
Further, refer note no. 24 for disaggregate revenues from contracts with customers
Sale of products
The Company recognises revenue for supply of goods to customers against orders received.
Product revenue is recognised when control of the goods is passed to the customer. The point
at which control passes is determined based on the terms and conditions by each customer
arrangement. Revenue is not recognised until it is highly probable that a significant reversal
in the amount of cumulative revenue recognised will not occur. Amount representing the
profit share component is recognised as revenue only to the extent that it is highly probable
that a significant reversal will not occur.
The Company also recognises revenue where goods are ready as per customer request and
pending dispatch at the instance of the customer. In such cases, the products are separately
identified as belonging to the customer and the Company does not hold the right to redirect
the product to another customer. On satisfaction of all performance obligations, invoice is
raised on the customer in accordance with customer request at regular payment terms.
Sale of services
Revenue from services rendered, which primarily relate to Commission, is recognised in the
statement of profit and loss as the underlying services are performed. Upfront non¬
refundable payments received under these arrangements are deferred and recognised as
revenue over the expected period over which the related services are expected to be
performed.
Contract Liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the
Company has received consideration (or the amount is due) from the customer. If a customer
pays consideration before the Company transfers goods or services to the customer, a
contract liability is recognised when the payment is made, or the payment is due (whichever
is earlier). Contract liabilities are recognised as revenue when the Company performs
under the contract.
Interest income
For all debt financial instruments measured either at amortised cost or at fair value through
other comprehensive income, interest income is recorded using the effective interest rate
(EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts
over the expected life of the financial instrument or a shorter period, where appropriate, to
the gross carrying amount of the financial asset or to the amortised cost of a financial
liability. Interest income is included in finance income in the Statement of Profit and Loss.
Dividends
Revenue is recognised when the Company’s right to receive the payment is established,
which is generally when shareholders approve the dividend.
2.15 Income Tax
Current Tax
Current income tax is recognised based on the estimated tax liability computed after taking
credit for allowances and exemptions in accordance with the Income Tax Act, 1961. Current
income tax assets and liabilities are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and tax laws used to compute the
amount are those that are enacted or substantively enacted, at the reporting date.
Deferred Tax
Deferred tax is determined by applying the Balance Sheet approach. Deferred tax is
recognised on temporary differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary
differences. Deferred tax assets are generally recognised for all deductible temporary
differences to the extent that it is probable that taxable profits will be available against
which those deductible temporary differences can be utilised. Such deferred tax assets and
liabilities are not recognised if the temporary difference arises from the initial recognition
(other than in a business combination) of assets and liabilities in a transaction that effects
neither the taxable profit nor the accounting profit.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to
offset current tax assets and liabilities. Current tax assets and tax liabilities are offset where
the entity has a legally enforceable right to offset and intends either to settle on a net basis,
or to realise the asset and settle the liability simultaneously.
Minimum Alternative Tax ("MAT") credit is recognised as an asset only when and to the
extent there is convincing evidence that the company will pay normal income tax during the
specified period. Such asset is reviewed at each Balance Sheet date and the carrying
amount of MAT credit asset is written down to the extent there is no longer a convincing
evidence to the effect that the company will pay normal income tax during the specified
period.
2.16 Earnings Per Share
The Company presents basic and diluted earnings per share (“EPS”) data for its ordinary
shares. Basic earnings per share are computed by dividing the net profit after tax by the
weighted average number of equity shares outstanding during the period. Diluted earnings
per share is computed by dividing the profit after tax by the weighted average number of
equity shares considered for deriving basic earnings per share and also the weighted
average number of equity shares that could have been issued upon conversion of all dilutive
potential equity shares.
2.17 Inventories
Inventories are valued at the lower of cost or net realizable value. Cost includes purchase
price, duties, transport, handing costs and other costs directly attributable to the acquisition
and bringing the inventories to their present location and condition
The basis of determination of cost is as follows:
Stock- in- trade: Cost includes cost of purchases and other costs incurred in bringing the
inventories to their present location and condition.
Net realisable value is the estimated selling price in the ordinary course of business, less
estimated costs necessary to make the sale.
2.18 Trade Receivables
A receivable is recognised if an amount of consideration that is unconditional (i.e.. only the
passage of time is required before payment of the consideration is due.) The Management
has established a credit policy under which each new customer is analysed individually for
credit worthiness before the company's standard payment terms offered.
In respect of trade receivables, the Company applies the simplified approach of Ind AS 109
‘Financial Instruments’, which requires measurement of loss allowance at an amount equal to
lifetime expected credit losses. Lifetime expected credit losses are the expected credit losses
that result from all possible default events over the expected life of a financial instrument.
2.19 Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to
the end of the financial year which are unpaid. The amounts are unsecured and are
presented as current liabilities unless payment is not due within twelve months after the
reporting period. They are recognized initially at fair value and subsequently measured at
amortized cost using the effective interest method.
2.20 Fair value of investments:
The Company has invested in the equity instruments of various companies. However ,the
percentage of shareholding of the company in such investee companies is very low and
hence, it has not been provided with future projections including projected profit and loss
account by those investee companies . hence, the valuation exercise carried out by the
company with the help of available historical annual reports and other information in the
public domain.
2.21 Measurement of EBITDA
The Company presents EBITDA in the statement of profit or loss, which is neither specifically
required by Ind AS 1 nor defined under Ind AS. Ind AS complaint Schedule III allows
companies to present line items, sub-line items and sub totals shall be presented as an
addition or substitution on the face of the financial statements when such presentation is
relevant to an understanding of the company’s financial position or performance or to cater
to industry/sector specific disclosure requirements or when required for compliance with the
amendments to the Companies Act or under the Indian Accounting Standards.
2.22 New standards and interpretations not yet adopted
Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time.
For the year ended March 31, 2024, MCA has not notified any new standards or
amendments to the existing standards applicable to the Company.
2.23 Segment accounting and reporting
The chief operational decision maker monitors the operating results of its business segments
separately for the purpose of making decisions about resource allocation and performance
assessment. Segment performance is evaluated based on profit and loss and is measured
consistently with profit and loss in the financial statements.
Operating segments are reported in a manner consistent with the internal reporting
provided to the chief operating decision maker (CODM).
The accounting policies adopted for segment reporting are in line with the accounting
policies adopted for preparing and presenting the Financial Statements of the Company
as a whole. In addition, the following specific accounting policies have been followed for
segment reporting:
** Segment revenue includes sales and other income directly identifiable with / allocable to
the segment including inter segment transfers. Inter segment transfers are accounted for
based on the transaction price agreed to between the segments which is at cost in case of
transfer of Company's intermediate and final products and estimated realisable value in
case of by-products
**Revenue, expenses, assets and liabilities are identified to segments on the basis of their
relationship to the operating activities of the segment. Revenue, expenses, assets and
liabilities which relate to the Company as a whole and are not allocable to segments on
direct and/or on a reasonable basis, have been disclosed as “Unallocable”
2.24 Assets (or disposal group) held for sale and discontinued operation
Assets (or disposal group) are classified as held for sale if their carrying amounts will be
recovered principally through a sale transaction rather than through continuing use and a
sale is considered highly probable. Assets held for sale are measured at the lower of their
carrying amount and the fair value less costs to sell.
An impairment loss is recognized for any initial or subsequent write-down of the asset (or
disposal group) to fair value less costs to sell. A gain is recognized for any subsequent
increases in fair value less costs to sell of an asset (or disposal group), but not in excess of
any cumulative impairment loss previously recognized. A gain or loss not previously
recognized by the date of the sale of the non-current asset (or disposal group) is recognized
at the date of de-recognition.
Assets (including those that are part of a disposal group) are not depreciated or amortised
while they are classified as held for sale. Interest and other expenses attributable to the
liabilities of a disposal group classified as held for sale continue to be recognised
Assets classified as held for sale and the assets of a disposal group classified as held for
sale are presented separately from the other assets in the balance sheet. The liabilities of a
disposal group classified as held for sale are presented separately from other liabilities in
the balance sheet.
Assets classified as held for sale and the assets of a disposal group classified as held for
sale are presented separately from the other assets in the balance sheet. The liabilities of a
disposal group classified as held for sale are presented separately from other liabilities in
the balance sheet.
• Represent as separate major line of business or geographical area of operations,
• Is part of a single co-ordinated plan to dispose of a separate major line of business
or geographical area of operations.
3 Discontinued operations are excluded from the results of continuing operations and are
presented as profit or loss before/ after tax from discontinued operations in the
statement of profit and loss.
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