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Integrated Report Statutory Reports Financial Statements
1-59 60-146 Consolidated

impairment loss is recognised in the Consolidated and receiving charges. Work-in-progress and
Statement of Profit and Loss. The recoverable finished goods include appropriate proportion
amount is the higher of the net selling price and of overheads and, where applicable, taxes and
their value in use. Value in use is arrived at by duties. Net realisable value is the estimated selling
discounting the future cash flows to their present price in the ordinary course of business, less the
value based on an appropriate discount factor. estimated costs of completion and the estimated
Assessment is also done at each Balance Sheet costs necessary to make the sale.
date as to whether there is indication that an 2.18 Revenue recognition
impairment loss recognised for an asset in prior
accounting periods no longer exists or may have 2.18.1 Sale of goods
decreased, consequent to which such reversal of Revenue is recognised upon transfer of control
impairment loss is recognised in the Consolidated of promised goods to customers in an amount
Statement of Profit and Loss. that reflects the consideration which the Group
expects to receive in exchange for those goods.
Goodwill
Revenue from the sale of goods is recognised at
Goodwill is tested for impairment, at least annually
and whenever circumstances indicate that it the point in time when control is transferred to the
may be impaired. For the purpose of impairment customer which is usually on dispatch / delivery of
testing, the Goodwill is allocated to a CGU or group goods, based on contracts with the customers.
of CGUs, which are expected to benefit from the Revenue is measured based on the transaction
synergies arising from the business combination price, which is the consideration, adjusted for
in which the said Goodwill arose. volume discounts, price concessions, incentives,
and returns, if any, as specified in the contracts with
If the estimated recoverable amount of the CGU
including the Goodwill is less than its carrying the customers. Revenue excludes taxes collected
amount, the impairment loss is allocated first from customers on behalf of the government.
to reduce the carrying amount of any goodwill Accruals for discounts/incentives and returns are
allocated to the CGU and then to the other assets estimated (using the most likely method) based on
of the CGU on a pro-rata basis of the carrying accumulated experience and underlying schemes
amount of each asset in the unit. and agreements with customers. Due to the short
nature of credit period given to customers, there is
An impairment loss in respect of goodwill is not no financing component in the contract.
subsequently reversed, In respect of other assets
for which impairment loss has been recognised in 2.18.2 Interest income
prior periods, the Group reviews at each reporting For all debt instruments measured either at
date whether there is any indication that the loss amortised cost or at FVTOCI, interest income is
has decreased or no longer exists. An impairment recorded using the EIR Method.
loss is reversed if there has been a change in the 2.18.3 Dividend income
estimated used to determine the recoverable
amount. Such a reversal is made only to the extent Dividend income is accounted for when Group’s
that the asset’s carrying amount does not exceed right to receive the income is established.
the carrying amount that would have been 2.18.4 Insurance claims
determined, net of depreciation or amortisation, if Insurance claims are accounted for on the basis of
no impairment loss had been recognised. claims admitted and to the extent that there is no
2.17 Inventories uncertainty in receiving the claims.
Inventories are valued at lower of cost (on 2.19 Leases
weighted average basis) and net realisable The Group assesses whether a contract contains
value after providing for obsolescence and a lease, at inception of a contract. A contract is, or
other losses, where considered necessary on an contains, a lease if the contract conveys the right
item-by-item basis. Cost includes all charges in to control the use of an identified asset for a define
bringing the goods to their present location and period of time in exchange for consideration. To
condition, including other levies, transit insurance assess whether a contract conveys the right to

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