Provisions, contingent assets and contingent liabilities

Provisions are recognised only when there is a present
obligation, as a result of past events, and when a
reliable estimate of the amount of obligation can
be made at the reporting date. These estimates are
reviewed at each reporting date and adjusted to reflect
the current best estimates. Provisions are discounted

to their present values, where the time value of money
is material.

Contingent liability is disclosed for:

• Possible obligations which will be confirmed only
by future events not wholly within the control of
the Company; or

• Present obligations arising from past events where
it is not probable that an outflow of resources will
be required to settle the obligation or a reliable
estimate of the amount of the obligation cannot
be made.

Contingent assets are not recognised. However, when
inflow of economic benefit is probable, related asset is
disclosed.

t) Earnings per share

Basic earnings per share is calculated by dividing the
net profit or loss for the period attributable to equity
shareholders (after deducting attributable taxes)
by the weighted average number of equity shares
outstanding during the period. The weighted average
number of equity shares outstanding during the
period is adjusted for events including a bonus issue.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the period attributable
to equity shareholders and the weighted average
number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity
shares except for anti-dilutive potential equity shares.

u) Equity, reserves and dividend payment

Equity shares are classified as equity. Incremental costs
directly attributable to the issue of new shares are
shown in equity as a deduction, net of tax, from the
proceeds. Retained earnings include current and prior
period retained profits. All transactions with owners of
the Company are recorded separately within equity.
The Board of Directors of the Company have not
recommended any dividend for the year.

v) Significant management judgement in applying
accounting policies and estimation uncertainty

The preparation of the Company's financial statements
requires management to make judgements, estimates
and assumptions that affect the reported amounts

of revenues, expenses, assets and liabilities, and the
related disclosures.

Significant management judgements and estimates

The following are significant managementjudgements
and estimates in applying the accounting policies of
the Company that have the most significant effect on
the financial statements:

Recognition of deferred tax assets - The extent to
which deferred tax assets can be recognised is based
on an assessment of the probability of the future
taxable income against which the deferred tax assets
can be utilised.

Evaluation of indicators for impairment of assets

- The evaluation of applicability of indicators of
impairment of assets requires assessment of several
external and internal factors which could result in
deterioration of recoverable amount of the assets.

Recoverability of advances/receivables - At each
balance sheet date, based on historical default
rates observed over expected life, the management
assesses the expected credit loss on outstanding
receivables and advances.

Defined benefit obligation (DBo) - Management's
estimate of the DBO is based on a number of critical
underlying assumptions such as standard rates of
inflation, medical cost trends, mortality, discount rate
and anticipation of future salary increases. Variation in
these assumptions may significantly impact the DBO
amount and the annual defined benefit expenses.

Fair value measurements - Management applies
valuation techniques to determine the fair value of
financial instruments (where active market quotes are
not available). This involves developing estimates and
assumptions consistent with how market participants
would price the instrument. Management uses the
best information available. Estimated fair values may
vary from the actual prices that would be achieved in
an arm's length transaction at the reporting date.

Useful lives of depreciable/amortizable assets -

Management reviews its estimate of the useful lives
of depreciable/amortizable assets at each reporting
date, based on the expected utility of the assets.
Uncertainties in these estimates relate to technical and
economic obsolescence.