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(a) Financial assets
Classification
The Company classifies financial assets as subsequently measured at amortized cost, fair value through other
comprehensive income or fair value through profit or loss on the basis of its business model for managing the financial
assets and the contractual cash flows characteristics of the financial asset.
Initial recognition and measurement
All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value
through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
Subsequent measurement
For purposes of subsequent measurement financial assets are classified in below categories:
• Financial assets carried at amortised cost
A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective
is to hold the asset 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.
• Financial assets at fair value through other comprehensive income
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a
business model whose objective is achieved by both collecting contractual cash flows and selling 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. The Company has made an irrevocable election for
its investments which are classified as equity instruments to present the subsequent changes in fair value in other
comprehensive income based on its business model.
• Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the above categories are subsequently fair valued through profit
or loss.
Derecognition
A financial asset is primarily derecognized when the rights to receive cash flows from the asset have expired or the
Company has transferred its rights to receive cash flows from the asset.
Investment in subsidiaries, joint ventures and associates
The company has accounted for its investment in subsidiaries, joint ventures and associates at cost.
Impairment of financial assets
The Company assesses impairment based on expected credit losses (ECL) model for measurement and recognition
of impairment loss on the financial assets that are trade receivables or contract revenue receivables and all lease
receivables.
(b) Financial liabilities
Classification
The Company classifies all financial liabilities as subsequently measured at amortized cost, except for financial liabilities
at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently
measured at fair value.
Notes on the consolidated financial statements
for the year ended 31 March 2017