Page 193 - DJML Annual Report 24-25
P. 193
CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS
March 31, 2025
• In the principal market for the asset or
liability, or The Company assesses at contract inception
• In the absence of a principal market, in the whether a contract is, or contains, a lease. That
most advantageous market for the asset or is, if the contract conveys the right to control
the use of a identified asse for a period of
liability
time in exchange for consideration. To assess
The principal or the most advantageous market whether a contract conveys the right to control
must be accessible to/ by the Company. the use of an identified asset, the Company
assesses whether: (i) the contract involves the
use of an identified asset (ii) the Company has
All financial instruments for which fair value substantially all of the economic benefits from
is recognised or disclosed are categorised use of the asset through the period of the lease
within the fair value hierarchy, described as and (iii) theCompany has the right to direct the
follows, based on the lowest level input that is use of the asset.
significant to the fair value measurement as a
whole;
At lease commencement date, the Company
Level 1: Quoted (unadjusted) prices in active recognises a right-of-use assets and a lease
markets for identical assets or liabilities. liabilities on the balance sheet. The right-ofuse
asset is measured at cost, which is made
Level 2: Valuation techniques for which the
lowe leve inp tha ha a significa effe up of the initial measurement of the lease
liabilities,any initial direct costs incurred by
on the fair value measurement are observable,
the Company and any lease payments made
either directly or indirectly.
in advance of the lease commencement date.
Level 3: Valuation techniques for which the The Company depreciates the rightof-use
lowe leve inp ha a significa effe assets on a straight-line basis from the lease
on the fair value measurement is not based on commencement date to the earlier of the end
observable market data. of the useful life of the right-ofuse assets
or the end of the lease term. The Company
For assets and liabilities that are recognised in also assesses the rightof-use assets for
the financial statements on a recurring basis, impairment when such indicators exist. At the
the Company determines whether transfers commencement date of lease, the Company
have occurred between levels in the hierarchy measures the lease liabilities at the present
by reassessing categorisation (based on the value of the lease payments to be made over
lowe leve inp tha significa to the fair the lease term, discounted using the interest
value measurement as a whole) at the end of rate implicit in the lease if that rate is readily
each reporting period. available or the Company’s incremental
borrowing rate. The Company cannot readily
For the purpose of fair value disclosures, the determine the interest rate implicit in the lease,
Company has determined classes of assets therefore, it uses its incremental borrowing rate
and liabilities on the basis of the nature, (IBR) to measure lease liabilities. When the
characteristics and risks of the asset or liability lease liability is remeasured, the corresponding
and the level of the fair value hierarchy as adjustment is reflected in the right-of-use asset
explained above. or statement of profit and loss, as the case
Annual Report 2024-25 190
