2. Material accounting policies followed by
company

2.1 Basis of preparation

The standalone financial statements of the Company
have been prepared in accordance with the Indian
Accounting Standards ('Ind AS') specified in the
Companies (Indian Accounting Standards) Rules, 2015 (as
amended) under Section 133 of the Companies Act 2013
(the “accounting principles generally accepted in India”).

The accounting policies are applied consistently to all
the periods presented in the financial statements.

The standalone financial statements have been prepared
on a historical cost basis, except for the following assets
and liabilities which have been measured at fair value:

- Derivative financial instruments are
measured at fair value.

- Certain financial assets and liabilities are measured
at fair value (refer accounting policy regarding
financial instruments).

- Defined benefit plans - plan assets are measured at
fair value. The fair value of plan assets is deducted

from present value of defined benefit obligation in
determining deficit or surplus.

The standalone financial statements are presented
in Indian Rupees (INR), which is also the Company's
functional currency and all values are rounded to
nearest lakhs.

2.2 Summary of material accounting policies

a) Current versus non- current classification

The Company presents assets and liabilities
in the balance sheet based on current/ non¬
current classification. An asset is treated as
current when it is:

• Expected to be realised or intended to sold
or consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months
after the reporting period, or

• Cash or cash equivalent unless restricted
from being exchanged or used to settle a
liability for at least twelve months after the
reporting period.

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal
operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months
after the reporting period, or

• There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period

The Company classifies all other liabilities
as non-current.

Deferred tax assets and liabilities are classified as
non-current assets and liabilities.

The operating cycle is the time between publishing
of advertisement and circulation of newspaper

and its realisation in cash and cash equivalents.
The Company has identified twelve months as its
operating cycle.

b) Foreign currencies

Transactions and Balances

Transactions in foreign currencies are initially
recorded by the Company at their respective
functional currency spot rates at the date the
transaction first qualifies for recognition. However,
for practical reasons, the Company uses monthly
average rate if the average approximates the
actual rate at the date of the transaction.

Monetary assets and liabilities denominated
in foreign currencies are translated at the
functional currency spot rates of exchange at the
reporting date.

Exchange differences arising on the settlement
of monetary items or on restatement of the
Company's monetary items at rates different
from those at which they were initially recorded
during the period, or reported in previous financial
statements, are recognized as income or as
expenses in the period in which they arise. They
are deferred in equity if they relate to qualifying
cash flow hedges.

Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated
using the exchange rates at the dates of the
initial transactions.

Exchange differences pertaining to long term
foreign currency loans obtained or re-financed on
or before 31 March 2016:

- Exchange differences on long-term
foreign currency monetary items relating
to acquisition of depreciable assets are
adjusted to the carrying cost of the assets
and depreciated over the balance life of the
assets in accordance with option available
under Ind-AS 101 (first time adoption).

Exchange differences pertaining to long term
foreign currency loans obtained or re-financed on
or after 1 April 2016:

- The exchange differences pertaining to long
term foreign currency loans obtained or re¬
financed on or after 1 April 2016 is charged
off or credited to the statement of profit & loss
account under Ind-AS.

c) Fair value measurement

The Company measures financial instruments,
such as, derivatives and certain investments at fair
value at each reporting/ balance sheet date.

Fair value is the price that would be received to
sell an asset or paid to transfer a liability in an
orderly transaction between market participants
at the measurement date. The fair value

measurement is based on the presumption that the
transaction to sell the asset or transfer the liability
takes place either:

• In the principal market for the asset

or liability, or

• In the absence of a principal market, in
the most advantageous market for the
asset or liability

The principal or the most advantageous market
must be accessible by the Company.

The fair value of an asset or a liability is measured
using the assumptions that market participants
would use when pricing the asset or liability,
assuming that market participants act in their
economic best interest.

A fair value measurement of a non-financial asset
takes into account a market participant's ability to
generate economic benefits by using the asset in
its highest and best use or by selling it to another
market participant that would use the asset in its
highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximising the use of relevant observable inputs
and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is
measured or disclosed in the financial statements

are categorised within the fair value hierarchy,
described as follows, based on the lowest
level input that is significant to the fair value
measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in
active markets for identical assets or liabilities

• Level 2 — Valuation techniques for which
inputs are inputs other than quoted prices
included within Level 1 that are observable for
the asset or liability, either directly or indirectly

• Level 3 — Valuation techniques for which
inputs are unobservable inputs for the
asset or liability

For assets and liabilities that are recognised in
the financial statements on a recurring basis, the
Company determines whether transfers have
occurred between levels in the hierarchy by re¬
assessing categorisation (based on the lowest
level input that is significant to the fair value
measurement as a whole) at th e end of each
reporting period.

For the purpose of fair value disclosures, the
Company has determined classes of assets and
liabilities on the basis of the nature, characteristics
and risks of the asset or liability and the level of the
fair value hierarchy as explained above.

This note summarises accounting policy for fair
value. Other fair value related disclosures are
given in the relevant notes:

• Disclosures for valuation methods, significant
estimates and assumptions (Note 36)

• Quantitative disclosures of fair value
measurement hierarchy (Note 36)

• Investment properties (Note 4)

• Financial instruments (including those carried
at amortised cost) (Note 36)

d) Revenue recognition and other income

Revenue from contracts with customers is
recognised when control over services are
transferred to the customer at an amount

that reflects the consideration to which the
Company expects to be entitled in exchange for
those services.

Revenue towards satisfaction of a performance
obligation is measured at the amount of transaction
price (net of variable consideration) allocated
to that performance obligation. The transaction
price of goods sold and services rendered is net
of variable consideration on account of various
discounts and schemes offered by the Company
as part of the contract.

If the consideration in a contract includes a variable
amount, the Company estimates the amount of
consideration to which it will be entitled in exchange
for transferring the goods to the customer. The
variable consideration is estimated at contract
inception and constrained until it is highly probable
that a significant revenue reversal in the amount
of cumulative revenue recognised will not occur
when the associated uncertainty with the variable
consideration is subsequently resolved. The
Company applies the most likely amount method
or the expected value method to estimate the
variable consideration in the contract. The selected
method that best predicts the amount of variable
consideration is primarily driven by the number of
volume thresholds contained in the contract. The
most likely amount is used for those contracts with
a single volume threshold, while the expected
value method is used for those with more than one
volume threshold. The Company then applies the
requirements on constraining estimates in order
to determine the amount of variable consideration
that can be included in the transaction price and
recognised as revenue.

The Company applies the practical expedient
to not to disclose the amount of the remaining
performance obligations for contracts with original
expected duration of less than one year.

For contracts with a significant financing
component, an entity adjusts the promised
consideration to reflect the time value of money.
As such, the transaction price for these contracts
is discounted, using the interest rate implicit in the
contract (i.e., the interest rate that discounts the

cash selling price of the equipment to the amount
paid in advance). This rate is commensurate with
the rate that would be reflected in a separate
financing transaction between the Company and
the customer at contract inception. The Company
applies the practical expedient for short-term
advances received from customers. That is, the
promised amount of consideration is not adjusted
for the effects of a significant financing component
if the period between the transfer of the promised
good or service and the payment is one year or less.

Revenue excludes taxes collected from customers.
The Company has concluded that it is the principal
in all of its revenue arrangements since it is the
primary obligor in all the revenue arrangements
as it has pricing latitude and is also exposed to
inventory and credit risks.

Goods and Service Tax (GST) is not received by
the Company on its own account. Rather, it is tax
collected on behalf of the government. Accordingly,
it is excluded from revenue.

Contract asset and unbilled receivables

Contract asset represents the Company's right to
consideration in exchange for services that the
Company has transferred to a customer when that
right is conditioned on something other than the
passage of time.

When there is unconditional right to receive cash,
and only passage of time is required to do invoicing,
the same is presented as unbilled receivable.

Contract liability

A contract liability is recognised if a payment is
received or a payment is due (whichever is earlier)
from a customer before the Company transfers
the related goods or services and the Company
is under an obligation to provide only the goods
or services under the contract. Contract liabilities
are recognised as revenue when the Company
performs under the contract (i.e., transfers control
of the related goods or services to the customer).

The specific recognition criteria described below
must also be met before revenue is recognised:

Print Revenue:

• Advertisements

Revenue is recognized as and when
advertisement is published/ displayed and when
it is “probable” that the Company will collect the
consideration it is entitled to in exchange for the
services it transfers to the customer.

• Sale of News & Publications, Waste
Papers and Scrap

Revenue from the sale of newspaper &
publications are recognised when the
newspaper and publications are delivered
to the distributor. Revenue from the sale of
waste papers/scrap is recognised when the
control is transferred to the buyer, usually on
delivery of the waste papers/scrap.

• Printing Job Work

Revenue from printing job work is recognized
on the stage of completion of job work as per
terms of the agreement.

Revenue from job work is measured at the
amount of transaction price (net of variable
consideration) allocated to that performance
obligation. The transaction price is net of
variable consideration on account of various
discounts and schemes offered by the
Company as part of the contract.

• Forfeiture of security deposits

Forfeiture of security deposits arises on
account of the Company's main operating
activity. The same is presented as part of
“Other Operating Revenue”.

• Event related

Event/Conference revenue is recognized
on the completion of event activity and
sum received in advance, if any, for event is
recognized as advance from customers.

Digital Revenue:

• OTT Play Subscription revenue

Subscription revenue is recognized over the
period of the subscription, in accordance

with the established principles of accrual
accounting. Unearned revenues are reported
on the balance sheet as deferred revenue.

Interest income

For all debt instruments measured at amortised
cost, interest income is recorded using the effective
interest rate (EIR). EIR is the rate that exactly
discounts the estimated future cash payments
or receipts over the expected life of the financial
instrument or a shorter period, where appropriate,
to the gross carrying amount of the financial asset
or to the amortised cost of a financial liability. When
calculating the effective interest rate, the Company
estimates the expected cash flows by considering
all the contractual terms of the financial instrument
(for example, prepayment, extension, call and
similar options) but does not consider the expected
credit losses. Interest income is included in other
income in the statement of profit and loss.

Dividends

Revenue is recognised when the Company's right
to receive the payment is established, which is
generally when shareholders approve the dividend.

e) Taxes

Current income tax

Tax expense comprises current and deferred tax.

Current income tax is measured at the amount
expected to be paid to the tax authorities in
accordance with the Income Tax Act, 1961.

Current income tax assets and liabilities are
measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax
rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at
the reporting date.

Current income tax relating to items recognised
outside profit or loss is recognised outside profit
or loss (either in other comprehensive income
or in equity). Current tax items are recognised is
correlation to the underlying transaction either in
OCI or directly in equity. Management periodically
evaluates positions taken in the tax returns with

respect to situations in which applicable tax
regulations are subject to interpretation and
establishes provisions where appropriate.

Appendix C to Ind AS 12, Income Taxes dealing
with accounting for uncertainty over income tax
treatments does not have any material impact on
financial statements of the Company.

Deferred tax

Deferred tax is provided considering temporary
differences between the tax bases of assets and
liabilities and their carrying amounts for financial
reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable
temporary differences except:

• When the deferred tax liability arises from
the initial recognition of goodwill or an
asset or liability in a transaction that is not a
business combination and, at the time of the
transaction, affects neither the accounting
profit nor taxable profit or loss

• In respect of taxable temporary differences
associated with investments in subsidiaries
and associates, when the timing of the
reversal of the temporary differences can
be controlled and it is probable that the
temporary differences will not reverse in the
foreseeable future

Deferred tax assets are recognised for all
deductible temporary differences, the carry
forward of unused tax credits and any unused tax
losses. Deferred tax assets are recognised to the
extent that it is probable with convincing evidence
that taxable profit will be available against which
the deductible temporary differences, and the
carry forward of unused tax credits and unused tax
losses can be utilised, except:

• When the deferred tax asset relating to
the deductible temporary difference arises
from the initial recognition of an asset
or liability in a transaction that is not a
business combination and, at the time of the
transaction, affects neither the accounting
profit nor taxable profit or loss

• In respect of deductible temporary
differences associated with investments in
subsidiaries and associates, deferred tax
assets are recognised only to the extent that
it is probable that the temporary differences
will reverse in the foreseeable future and
taxable profit will be available against which
the temporary differences can be utilised

The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced
to the extent that it is no longer probable that
sufficient taxable profit will be available to allow
all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed
at each reporting date and are recognised to the
extent that it has become probable that future
taxable profits will allow the deferred tax asset
to be recovered.

Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply in the
year when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that have
been enacted or substantively enacted at the
reporting date.

Deferred tax relating to items recognised outside
profit or loss is recognised outside profit or loss.
Deferred tax items are recognised in correlation
to the underlying transaction either in OCI or
directly in equity.

Deferred tax assets and deferred tax liabilities
are offset if and only if it has a legally enforceable
right to set off current tax assets and current tax
liabilities and the deferred tax assets and deferred
tax liabilities relate to income taxes levied by the
same taxation authority on either the same taxable
entity or different taxable entities which intend
either to settle current tax liabilities and assets on
a net basis, or to realise the assets and settle the
liabilities simultaneously, in each future period in
which significant amounts of deferred tax liabilities
or assets are expected to be settled or recovered.

GST/ value added taxes paid on acquisition of
assets or on incurring expenses

Expenses and assets are recognised net of the
amount of GST/ value added taxes paid, except:

• When the tax incurred on a purchase of
assets or services is not recoverable from
the taxation authority, in which case, the
tax paid is recognised as part of the cost
of acquisition of the asset or as part of the
expense item, as applicable

• When receivables and payables are stated
with the amount of tax included

The net amount of tax recoverable from, or payable
to, the taxation authority is included as part of
receivables or payables in the balance sheet.

f) Non- current assets held for sale

Non-current assets (or disposal groups) are
classified as held for sale if their carrying amount
will be recovered principally through a sale
transaction rather than through continuing use
and a sale is considered highly probable. They are
measured at the lower of their carrying amount and
fair value less costs to sell, except for assets such as
deferred tax assets, assets arising from employee
benefits, financial assets and contractual rights
under insurance contracts, which are specifically
exempt from this requirement.

Property, plant and equipment and intangible
are not depreciated, or amortised assets once
classified as held for sale.

Assets and liabilities classified as held for sale
are presented separately from other items in
the balance sheet.

g) Property, plant and equipment

The Company has applied the one time transition
option of considering the carrying cost of property,
plant & equipment on the transition date i.e. April 1,
2015 as the deemed cost under Ind-AS.

Construction in progress is stated at cost, net of
accumulated impairment losses, if any. Freehold
land is carried at historical cost. All other items of
property, plant and equipment are stated at cost,
net of accumulated depreciation and accumulated
impairment losses, if any. Such cost includes the
cost of replacing part of the plant and equipment
and borrowing costs for long-term construction
projects if the recognition criteria are met.

Cost comprises the purchase price, borrowing
costs if capitalization criteria are met and any
directly attributable cost of bringing the asset to its
working condition for the intended use. Any trade
discounts and rebates are deducted in arriving at
the purchase price.

Recognition:

The cost of an item of property, plant and equipment
shall be recognised as an asset if, and only if:

(a) it is probable that future economic benefits
associated with the item will flow to
the entity; and

(b) the cost of the item can be measured reliably.

All other expenses on existing assets, including
day- to- day repair and maintenance expenditure
and cost of replacing parts, are charged to the
statement of profit and loss for the period during
which such expenses are incurred.

When significant parts of plant and equipment
are required to be replaced at intervals, the
Company depreciates them separately based on
their specific useful life. Likewise, when a major
inspection is performed, its cost is recognised in
the carrying amount of the plant and equipment
as a replacement if the recognition criteria are
satisfied. All other repair and maintenance costs
are recognised in profit or loss as incurred.

The Company identifies and determines cost of
asset significant to the total cost of the asset having
useful life that is materially different from that of the
remaining life.

Depreciation methods, estimated useful life and
residual value

Depreciation is calculated on a straight-line
basis over the estimated useful life of the
assets as follows:

Leasehold improvements are depreciated over
the shorter of their useful life or the lease term,
unless the entity expects to use the assets beyond
the lease term.

The Company, based on technical assessment made
by the management depreciates certain assets over
estimated useful life which are different from the
useful life prescribed in Schedule ll to the Companies
Act, 2013. The management has estimated,
supported by technical assessment, the useful life of
certain plant and machinery as 16 to 21 years. These
useful life are higher than those indicated in schedule
II to the Companies Act, 2013. The management
believes that these estimated useful life are realistic
and reflect a fair approximation of the period over
which the assets are likely to be used.

Property, Plant and Equipment which are added/
disposed off during the year, depreciation is
provided on pro-rata basis with reference to the
month of addition/deletion.

An item of property, plant and equipment and any
significant part initially recognised is derecognised
upon disposal or when no future economic
benefits are expected from its use or disposal.
Any gain or loss arising on de-recognition of the
asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the
asset) is included in the income statement when
the asset is derecognised.

Expenditure directly attributable to construction
activity is capitalized. Other indirect costs incurred
during the construction periods which are not
directly attributable to construction activity are
charged to Statement of Profit and Loss. Reinvested
income earned during the construction period is
adjusted against the total of indirect expenditure.

The residual values, useful life and methods of
depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted
prospectively, if appropriate.

h) Investment properties

Investment properties are properties (land and
buildings) that are held for long-term rental
yields and/or for capital appreciation. Investment
properties are measured initially at cost, including
transaction costs. Subsequent to initial recognition,
investment properties are stated at cost less
accumulated depreciation and accumulated
impairment loss, if any.

The Company depreciates building component of
investment property over 30 years from the date
property is ready for possession.

Though the Company measures investment
property using cost based measurement, the fair
value of investment property is disclosed in the
notes. Fair values are determined based on an
annual evaluation performed by an accredited
external independent valuer.

On transition to Ind AS, the Company has elected
to continue with the carrying value of all of its
Investment properties recognised as at 1st April
2015 measured as per the Indian GAAP and use
that carrying value as the deemed cost of the
Investment Properties.

Investment properties are derecognised either
when they have been disposed of or when they
are permanently withdrawn from use and no future
economic benefit is expected from their disposal.
The difference between the net disposal proceeds
and the carrying amount of the asset is recognised
in profit or loss in the period of de-recognition.

Investment properties that meet the criteria to
be classified as held for sale are measured and
presented in accordance with Ind AS 105.

i) Intangible assets

Intangible assets acquired separately are measured
on initial recognition at cost. The cost of intangible
assets acquired in a business combination is their

fair value at the date of acquisition. Following
initial recognition, intangible assets are carried
at cost less any accumulated amortisation and
accumulated impairment losses. Internally
generated intangibles, excluding capitalised
development costs, are not capitalised and the
related expenditure is reflected in profit or loss in
the period in which the expenditure is incurred.

Value for individual software license acquired
from the holding company in an earlier year is
allocated based on the valuation carried out by an
independent expert at the time of acquisition.

On transition to Ind AS, the Company has elected
to continue with the carrying value of all of its
Intangible assets recognised as at 1st April 2015
measured as per the previous GAAP and use
that carrying value as the deemed cost of the
Intangible assets.

The useful life of intangible assets is assessed as
either finite or indefinite.

Intangible assets with finite life are amortised
over the useful economic life and assessed
for impairment whenever there is an indication
that the intangible asset may be impaired. The
amortisation period and the amortisation method
for an intangible asset with a finite useful life are
reviewed at least at the end of each reporting
period. Changes in the expected useful life or
the expected pattern of consumption of future
economic benefits embodied in the asset are
considered to modify the amortisation period
or method, as appropriate, and are treated as
changes in accounting estimates.

The amortisation expense on intangible assets
with finite life is recognised in the statement of
profit and loss.

Intangible assets with indefinite useful life are not
amortised, but are tested for impairment annually,
either individually or at the cash-generating unit
level. The assessment of indefinite life is reviewed
annually to determine whether the indefinite life
continues to be supportable. If not, the change
in useful life from indefinite to finite is made on a
prospective basis.

An intangible asset is derecognised upon disposal
(i.e., at the date the recipient obtains control) or
when no future economic benefits are expected
from its use or disposal. Any gain or loss arising
upon derecognition of the asset (calculated as the
difference between the net disposal proceeds and
the carrying amount of the asset) is included in the
statement of profit or loss.

j) Borrowing costs

Borrowing costs directly attributable to the
acquisition, construction or production of an asset
that necessarily takes a substantial period of time to
get ready for its intended use or sale are capitalised
as part of the cost of the asset. All other borrowing
costs are expensed in the period in which they
occur. Borrowing costs consist of interest and other
costs that an entity incurs in connection with the
borrowing of funds. Borrowing cost also includes
exchange differences to the extent regarded as an
adjustment to the borrowing costs.

k) Leases

A contract is, or contains, a lease if the contract
conveys the right to control the use of an
identified asset for a period of time in exchange
for consideration.

Company as a lessee

The Company recognises right-of-use asset
representing its right to use the underlying asset
for the lease term at the lease commencement
date. The cost of the right-of-use asset measured
at inception shall comprise of the amount of the
initial measurement of the lease liability adjusted
for any lease payments made at or before the
commencement date less any lease incentives
received, plus any initial direct costs incurred and
an estimate of costs to be incurred by the lessee
in dismantling and removing the underlying asset

or restoring the underlying asset or site on which it
is located. The right-of-use assets is subsequently
measured at cost less any accumulated
depreciation, accumulated impairment losses, if any
and adjusted for any remeasurement of the lease
liability. The right-of-use assets is depreciated using
the straight-line method from the commencement
date over the shorter of lease term or useful life
of right-of-use asset. The estimated useful lives of
right-of-use assets are determined on the same
basis as those of property, plant and equipment.
Right-of-use assets are tested for impairment
whenever there is any indication that their carrying
amounts may not be recoverable. Impairment loss, if
any, is recognised in the statement of profit and loss.

The Company measures the lease liability at the
present value of the lease payments that are not
paid at the commencement date of the lease.
The lease payments are discounted using the
interest rate implicit in the lease, if that rate can be
readily determined. If that rate cannot be readily
determined, the Company uses incremental
borrowing rate. The lease payments shall include
fixed payments, variable lease payments, residual
value guarantees, exercise price of a purchase
option where the Company is reasonably certain to
exercise that option and payments of penalties for
terminating the lease, if the lease term reflects the
lessee exercising an option to terminate the lease.
After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made.
The lease liability is subsequently remeasured by
increasing the carrying amount to reflect interest on
the lease liability, reducing the carrying amount to
reflect the lease payments made and remeasuring
the carrying amount to reflect any reassessment
or lease modifications or to reflect revised in¬
substance fixed lease payments. The Company
recognises the amount of the re-measurement of
lease liability due to modification as an adjustment
to the right-of-use asset and statement of profit and
loss depending upon the nature of modification.
Where the carrying amount of the right-of-use
asset is reduced to zero and there is a further
reduction in the measurement of the lease liability,
the Company recognises any remaining amount of
the re-measurement in statement of profit and loss.

Net realisable value is the estimated selling price
in the ordinary course of business, less estimated
costs of completion and the estimated costs
necessary to make the sale.

Raw materials, components and other supplies
held for use in the production of finished products
are not written down below cost except in cases
where material prices have declined and it is
estimated that the cost of the finished products will
exceed their net realisable value.

The comparison of cost and net realisable value is
made on an item-by-item basis.

IP Film Right

Where the costs relate to the development of
IP Film Right that will be sold in full to Studio/
Production House, the costs directly attributable
to the development of IP Film Right is classified as
inventory. The same are stated at lower of cost and
net realisable value.

The cost of development is recognised within
cost of sales when the corresponding revenue is
recognised in the income statement. At the end
of each accounting period, balance unamortized
cost is compared with net expected revenue. If net
expected revenue is less than unamortized cost,
the same is written down to net expected revenue.

m) Impairment of non-financial assets

For assets with definite useful life, the Company
assesses, at each reporting date, whether there is
an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing
for an asset is required, the Company estimates
the asset's recoverable amount. An asset's
recoverable amount is the higher of an asset's or
cash-generating unit's (CGU) fair value less costs of
disposal and its value in use. Recoverable amount
is determined for an individual asset, unless the
asset does not generate cash inflows that are
largely independent of those from other assets or
groups of assets. When the carrying amount of an
asset or CGU exceeds its recoverable amount, the
asset is considered impaired and is written down
to its recoverable amount.

In assessing value in use, the estimated future cash
flows are discounted to their present value using
a pre-tax discount rate that reflects current market
assessments of the time value of money and the
risks specific to the asset. In determining fair value
less costs of disposal, recent market transactions
are taken into account. If no such transactions
can be identified, an appropriate valuation model
is used. These calculations are corroborated
by valuation multiples, quoted share prices for
publicly traded Company's or other available fair
value indicators.

The Company bases its impairment calculation on
detailed budgets and forecast calculations, which
are prepared separately for each of the Company's
CGUs to which the individual assets are allocated.
These budgets and forecast calculations generally
cover a period of five years. For longer periods,
a long-term growth rate is calculated and applied
to project future cash flows after the fifth year. To
estimate cash flow projections beyond periods
covered by the most recent budgets/forecasts,
the Company extrapolates cash flow projections in
the budget using a steady or declining growth rate
for subsequent years, unless an increasing rate
can be justified. In any case, this growth rate does
not exceed the long-term average growth rate for
the products, industries, or country or countries
in which the entity operates, or for the market in
which the asset is used.

Impairment losses of continuing operations,
including impairment on inventories, are
recognised in the statement of profit and loss.

An assessment is made at each reporting date
to determine whether there is an indication that
previously recognised impairment losses no
longer exist or have decreased. If such indication
exists, the Company estimates the asset's or CGU's
recoverable amount. A previously recognised
impairment loss is reversed only if there has been
a change in the assumptions used to determine
the asset's recoverable amount since the last
impairment loss was recognised. The reversal is
limited so that the carrying amount of the asset
does not exceed its recoverable amount, nor
exceed the carrying amount that would have
been determined, net of depreciation, had no

impairment loss been recognised for the asset
in prior years. Such reversal is recognised in the
statement of profit or loss unless the asset is
carried at a revalued amount, in which case, the
reversal is treated as a revaluation increase.