The Company only enters into basic financial instrument transactions that result in the recognition of financial
assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans
to related parties investments in non-puttable ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other
accounts receivable and payable, are initially measured at present value of the future cash flows and
subsequently at amortised cost using the effective interest method. Debt instruments that are payable or
receivable within on year, typically trade debtors and creditors, are measured, initially and subsequently, at
the indiscounted amount of the cash or other consideration expected to be paid or received. However, if the
the arrangements of a short-term instrument consittute a financial transaction, like the payment of a trade debt
deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case
of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the
present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and
subsequently at amortised cost.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting
period for objective evidence of impairment. If objective evidence of impairment is found , an impairment loss
is recognised in the Statement of comprehensive income.