| FAIR VALUE MEASUREMENT – FINANCIAL INSTRUMENTS |
NOTE 18 – FAIR VALUE MEASUREMENT – FINANCIAL INSTRUMENTS Assets and liabilities recorded at fair value are measured using the fair value hierarchy, which prioritizes the inputs used in measuring fair value. The levels of the fair value hierarchy are: | | ● | Level 1: observable inputs such as quoted prices in active markets. | | | ● | Level 2: inputs other than quoted prices in active markets that are either directly or indirectly observable; and | | | ● | Level 3: unobservable inputs for which little or no market data exists, therefore requiring the Company to develop its own assumptions. | The Company’s financial assets which are set out below in the table are measured at fair value by considering the level III inputs. The company does not have financial assets which are measured using Level I or Level II inputs. Carrying value and fair value of Level III Financial assets and liabilities are as follows: | | | Carrying Value | | | Fair Value | | | | | June 30,
2026 | | | December 31,
2025 | | | June 30,
2026 | | | December 31,
2025 | | | Financial Assets | | | | | | | | | | | | | | Account receivables, net (1) | | $ | 8,511,054 | | | $ | 8,566,654 | | | $ | 8,511,054 | | | $ | 8,566,654 | | | Lease receivables (2) | | | 1,971,933 | | | | 1,410,589 | | | | 1,971,933 | | | | 1,410,589 | | | Other non-current financial assets (3) | | | 303,652 | | | | 248,027 | | | | 303,652 | | | | 248,027 | | | Total | | | 10,786,639 | | | | 10,225,270 | | | | 10,786,639 | | | | 10,225,270 | | | Financial Liabilities | | | | | | | | | | | | | | | | | | Lease liabilities (4) | | | 2,549,823 | | | | 2,337,697 | | | | 2,549,823 | | | | 2,337,697 | | | Total | | $ | 2,549,823 | | | $ | 2,337,697 | | | $ | 2,549,823 | | | $ | 2,337,697 | | | (1) | Account receivable net of allowance represents the long-term debtors of the company in relation to the sales made during the year. The Company has presented the receivable balances account after reducing the significant financing component included using the discount rate of 10%. | | (2) | Lease receivables arising from sales-type leases are measured which is based on a discounted cash flow methodology that incorporates significant unobservable inputs, including assumptions related to discount rate, expected timing of cash flows etc. (Refer to Note 5). | | (3) | Other non-current assets include security deposits and long-term fixed deposits with banks. Company has calculated the fair value of security deposit at present value of future receipt using discount rate of 7% and fair value of long-term fixed deposit with banks are carried at cost which is approximate to the fair value. | | (4) | The Company has long-term lease liabilities in relation to office properties which is carried at cost using the discount rate (Refer Note to 15 Lease). |
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