Page 195 - DJML Annual Report 24-25

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS
amortised cost of the financial asset is also
adjusted for loss allowance, if any.
FVTPL is a residual category for debt
instruments. Any debt instrument, which
does not meet the criteria for categorization
as at amortized cost or as FVTOCI, is
classified as at FVTPL.
“In addition, the company may elect
to designate a debt instrument, which
otherwise meets amortized cost or
FVTOCI criteria, a a FVTPL. However,
such election is allowed only if doing so
reduces or eliminates a measurement or
recognition inconsistency (referred to as
‘accounting mismatch’). Company has not
designated any such debt instrument as at
FVTPL.
Debt instruments included within the
FVTPLcategory are measured at fair
value withall changes recognized in the
Stateme of Profi & Loss.
The Company derecognises a financial
asset when the contractual rights to the
ca flo fro the financia asse expire,
or it transfers the rights to receive the
contractua ca flo a transactio
in which substantially all of the risks and
reward of ownership of the financia asse
are transferred or in which the Company
neither transfers nor retains substantially
all of the risks and rewards of ownership
and doe no reta contro of the financia
asset. Any gain or loss on derecognition is
recognised in the Statement of Profit and
Loss.
In accordance with IndAS 109, the company
applies expected credit loss (ECL) model
for measurement and recognition of
March 31, 2025
impairme lo o the following financia
assets and credit risk exposure:
Financial assets that are debt instruments,
and are measured at amortised cost e.g.
Loans and trade receivables.
The company follows ‘simplified approach’
for recognition of impairment loss
allowance on Trade receivables that do not
contain a significant financing component.
The application of simplified approach
does not require the Company to track
changes in credit risk. Rather, it recognises
impairment loss allowance based on
lifetime ECLs at each reporting date, right
from its initial recognition.
Initial recognition and measurement
All financial liabilities are initially recognised
when the Company becomes a party to the
contractual provisions of the instrument.
All financial liabilities are initially
measured at fair value deducted by, in the
case of financial liabilities not recorded
at fair value through profit or loss,
transaction costs that are attributable to
the liability.
Financial liabilities are classified as
measured at amortised cost using the
effective interest method. The Company’s
financia liabilitie include trade payables,
borrowing and other financia liabilities.
Under the effective interest method,
the future cash payments are exactly
discounted to the initial recognition
value using the effective interest rate.
The cumulative amortization using the
effective interest method of the difference
between the initial recognition amount
and the maturity amount is added to the
Annual Report 2024-25 192