Consolidated financial statement of JSW S.A. Capital Group for 2012

2.15. Loans and borrowings

Loans and borrowings are recognized initially at fair value minus the transaction costs incurred. Loans and borrowings are then presented at adjusted purchase price (amortized cost). Any and all differences between the received amount (minus transaction costs) and the redemption amount are recognized using the effective interest rate method in the financial result throughout the term of pertinent agreements.