1 CORPORATE INFORMATION

India Steel Works Limited is a public limited incorporated and domiciled in India, under the Indian Companies Act, 1956. Its Equity
shares are listed on BSE Limited. Its registered office is situated at India Steel Works Complex. Zenith Compound. Khopoll.
Raigad 410203, Maharashtra, India.

The Company is engaged in manufacturing and trading of steel products like hot rolled, bars and rods, brightbars, etc.

2 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

This note provides a list of the Significant Accounting Policies adopted In the preparation of these Financial Statements. These
policies have been consistently applied to all theyears presented, unless otherwise stated.

2.1 BASISFOR PREPARATION OFACCOUNTS

These financial statements have been prepared In accordance with the Indian Accounting Standards (hereinafter referred
to as the ‘Ind AS') as notified under the Companies (Indian Accounting standards) Rules, 2015 and Companies (Indian
Accounting Standards )Amendments Rules 2016 prescribed under section 133 of the Companies Act, 2013 read with Rule
3ofthe Companies (Indian Accounting Standards) Rule, 2015 as amended time to time.

The financial statements are prepared and presented on accrual basis and under the historical cost convention, except for
the following material items thathave been measured at fair value as required by the relevant Ind AS;

• Certain financial assets and liabilities are measured at Fair value (refer accounting policy on financial instruments -
Refer note 2.8 below

• DefinedBenefitandotherLong-termEmployeeBenefits-Refernote2 11 below

• Derivative Financial instnjments-Refernote2.8below

These standalone financial statements are approved for issue by the Company s Board of Directors on May 21.2025.

2.2 KEY ACCOUNTING ESTIMATES AND JUDGMENTS

In preparation of the financial statements, the Company makes judgements, estimates and assumptions aboutthe carrying
values of assets and liabilities that are not readily apparent from other sources The estimates and the associated
assumptions are based on historical experience and other factors that are considered to be relevant Actual results may
differfrom these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting estimates are
recogni sed in the period in whi ch the estimates are revised and i n any future periods affected.

Significant judgements and estimates relating to the carrying values of assets and liabilities include useful lives of property,
plant and equipment and Intangible assets, impairment of property, plant and equipment, intangible assets and
investments, impairment of trade receivables, provision for employee benefits and other provisions, recoverability of
deferred tax assets, commitments and contingencies.

2.3 REVENUE RECOGNITION

a) Sale of Goods

Revenue from contracts with customers is recognized on transfer of control of promised goods or services to a
customer at an amount that reflects the consideration to which the Company is expected to be entitled to in exchange
for those goods or 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.This variable consideration is estimated based on the expected value of outflow. Revenue (net of
variable consideration) is recognized only to the extent that it is highly probable that the amount will not be subject to
significant reversal when uncertainty relating to its recognition is resolved.

The Company does not adjust short-term advances received from the customer forthe effects of significantfinandng
component if it is expected at the contract inception that the promised good or service will be transferred to the
customer.

b) Rendering of services

Revenueof services arerecognlzed when the performance of agreed contactual obligation has been completed.

c) Dividend

Dividend income from investments Is recognised when the shareholder's rights to receive payment have been
established.

d) Interest Income

Interest income is accrued on a time proportion basis, by reference to the principal outstanding and the effective
interest rate applicable.

e) Insurance Claims

Insurance daims are accounted on acceptance of the claim and when it cart be measured reasonably, and it is
reasonable to expect the ultimate collection. The Shortfall in respect of final claim shall be accounted In the profit and
loss account as an w hen final ly settled.

2.4 FOREIGN CURRENCY TRANSACTIONS

a) Functional and Presentation Currency

The financial statements are presented in Indian Rupee (INR), which is company’s functional and presentation
curre ncy.

b) Intial Recognisation

Transactions In foreign currencies are recorded at the exchange rate prevailing on the dates of the transactions.
Exchange difference arrising on foreign exchange transaction settled during the year are recognized in the
Statement ofprofitand loss of the year.

c) Measurment of foreign currency items at the Balance sheet date

Monetary assets and liabilities denominated in foreign currendes are re-translated Into functional currency at the
exchange rate prevailing at the end of the reporting period. Non monetary assets and liabilities that are measured
based on a historical cost in a foreign currency are not re-translated. Exchange differences arrising out of these
transaction are chanrged to the profit and loss.

2.5 PROPERTY, PLANT AND EQUIPMENTS AND INTANGIBLE ASSETS

a) Property, plant and equipment (PPE)

i) Recognitionand measurement

Freehold land is carried at cost. All other items of property, plant and equipment are measured at cost less
acccumlated depreciation and impairment losses, if any. Cost includes expenses directly attributable to the
acquisition of the assets. The cost of an item of a PPE comprises its purchase price including import duty, and
other non-refundable taxes or levies and any directly attributable cost of bringing the assets to its working
condition of its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

ii) Subsequent expenditure

Expenditure Incurred on substantial expansion upto the date of commencement of commercial production are
capitalised. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset,
as appropriate only when it is probable that future economic benefi ts associated with the item will flow to the
Company and the cost of the item can be measured reliably The carrying amount of any component accounted
for as a separate asset Is derecognised when replaced. All other repairs and maintenance are charged to profit
or loss during the reporting period in which they are incurred.

b) Capital Work-In-Progress And Pre-Operative Expenses During Construction Period

Capital work-in progress includes expenditure directly related to construction and incidental thereto. The same is
transferred or allocated to respective Property. Plant and Equipment on their completion / commencement of
commercial production.

c) Intangible assets

Intangible assies are held on the balance sheet at cost less accumlated amortisation andimparmentlossif any.

2.6 IMPAIRMENT OF NON-FINANCIAL ASSETS

The Company's non-financial assets cither than inventories and deferred tax assets, are reviewed at each reporting date to
determine whetherthe re is an indication of impairment. If any such indication exists, then the asset's recoverable amount is
estimated.

For impairment testing, assets that do not generate independent cash infl ows are grouped together into cash-generating
units (CGUs). Each CGU represents the smallest group of assets that generates cash inflows that are largely independent
of the cash inflows of other assets or CGUs.

The recoverable amount of a CGU is the higher of its value in use and its fair value less costs to sell. Value in use is based on
the estimated future cash flows, discounted to their present value using a discount rate that reflects current market
assessments of time value of money and the risks spec ific to the CGU

An impairment loss is recognised if the carrying amount of an asset or CGU exceeds Its estimated recoverable amount.
Impairment losses are recognised in the statement of profit and loss. Impairment losses recognised in respect of a CGU is
allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amount
of the other assets of the CGU on a pro rata basis.

An impairment loss in respect of assets for which impairment loss has been recognized in prior periods, the Company
reviews at reporting date whethert here is any indication that the loss has decreased orno longer exists. An impairment loss
is reversed if there has been a change in Ihe estimates used to determine the recoverable amount. Such a reversal is made
only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined,
netof depredation or amortization, if no impairment loss had been recognized.

2.7 DEPRECIATION AND AMORTISATION

Depreciation is provided on the Straight Line Method (SLM) applying the useful lives as prescribed in part C of Schedule II
to t he Co mpani es Act, 2013.

Useful lives of the items of Property. Plant and Equipment are asfollows:

The Managemntbelives that the useful life as given above the best represent the period over which the management expect to
use these assets. The Company reviews the useful lives and residual value at each reporting date. Depreciation on assets
added/sold or discared during the year is being provided on pro-rata basis up to the date on which such assets are added/sold or
discarded. Depreciation is not provided on Freehold Land. GairVLosses on disposals/de-recognition of property, plant and
equipment are determined by comparing proceeds with carrying amount and these are recognized In statemen t of profit and loss.

2.8 FINANCIAL INSTRUMENTS

I. FinancialAssets

a) Classification of financial assets

The Company classifies financial assets as subsequently measures at amortised cost, fair value through other
comprehensive income orfair value through profit & loss on the basis of its business model for managing the financial
assets and the contractual cash flow characteristics of the financial assets,

I) Debt instrument at amortised cost:

“A'debt Instrument’ is measured at the amortised cost if both the following conditions are met:

- The asset is held within a business model whose objectives is to hold assets for collecting contractual cash
flow and

- Contractual terms of the asset give rise on specified dates to cash flow that are solely payments of principal
and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the
effective interest rate (EIR) method Amortised cost Is calculated by taking into account any discount or
premium and fees or cost that are an integral part of the EIR. The EIR. Amortisation is included in finance
income in the statement of profit and loss. The losses arising from impairmentare recognised in the statement
of profit and loss The category generally applies to trade and other receivable.

ii) Debtinstrumentatfairvaluethroughothercomprehensive Income (FVOCI):

Assets that are held for collection of contractual cash flow and selling the financial assets, where the assets'
cash flow represents solely payments of principal and interest are measuring at FVOCI, movements in the
carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest
revenue or foreign exchange gains and losses which are recognised in profit and loss. When the financial
assets is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to
profit or loss and recognised in other gains/(losses). Interest income from these financial assets Is included in
other Income suing the EIR method. The company does not have any instruments classified as fair value
through other comprehensive income (FVOCI).

iii) Debt instrument measured at fair tin rough profit and toss (FVTPL):

Assets that do not meet thecriteria foramortised cost or FVOCI are measured at fairvalue through profit or loss.
A gain or loss on a debt instrument that is subsequently measured at fair value through profit or loss and is not
part of a hedging relationship is recognised in profit or loss and presented net in the statement of profit and loss
within other gains/ (losses) in the period in which it arises Interest income from these financial assets is
included in other income.

iv) Equity investments:

Investment in associates are accounted using equity method.

All other equity investments which are in scope of Ind-AS 109 are measured at fair value. Equity instrument
which are held for trading are classified as at FVTPL. For all other equity investments, the Company decide to
classify the same either as at fair value through other comprehensive income (FVOCI) or FVTPL. The company
makes such election on an instrument-by- instrument basis. The classification is made on initial recognition and
is irrevocable.

For equity investments classified as FVOCI. all fair value changes on the instruments, excluding dividend, are
recognized in other comprehensive income (OCI). There is no recycling of the amounts from OCI lo statement
of profit and loss, even on sale of such investment.

Equity investments included within the FVTPL category are measured at fair value with all changes recognized
in the Statement of profitand loss.

Costs of certain unquoted equity instruments has been considered as an appropriate estimate of fair value
because of a wide range of possible fair value measurements and cost represents the best estimate of fair
value within that range.

The company does not have any equity investments designated at FVOCI orFVTPL

b) Initial recognition and measurement

All financial assets are recognised initially at fair value and forthose Instruments that are not subsequently measured
atFVTPL, plus/minus transaction cost that are attributable to the acquisition of the financial assets.

Trade receivable are carried at original invoice price as the sales arrangements do not contain any significant
financial component. Purchase or sales of financial assets that required delivery of assets within a time frame
established by regulation or convention in the market place (regular way trades) are recognised on the trade date,

i.e.. the date that the company commits to purchase or sell theassets

c) Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a company of similar financial assets)
primarily derecognised (i.e. removed from the company's balance sheet) when

-The rights to receive cash flows from the asset have expired, or

-The Company has neither transferred nor retained substantially all the risks and rewards all the assets, but has
transferred control of the assets

When the company has transferred Its rights to receive cash flow from an asset or has entered into a pass-through
arrangement, it evaluates whether it has transferred substantially all the risks and rewards of ownership. In such
cases, the financial asset is derecognised. When it has neither transferred nor retained substantially all of the risks
and rewards of the assets, nor transferred control of the assets, the Company continues to recognise thetransferred
asset to the extent of the company's continuing involvement In the case, the company recognises and associated
liability. The transferred asset and the associated liability are measured on a basis that reflect the rights and
obligations that the company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
original carrying amount of the asset and maximum amount of consideration that the company could be required to
repay.

d) Impairment of financial assets

In accordance with Ind-AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and
recognition of impairmentloss on following financial assets and credit risk exposure:

- Financial assets that are debt instruments, and are measured at amortised coste.g., loan, debt security, deposits,
and bank balance

- T rade Receivables"

The company follows 'simplified approach'for recognition of impairment loss allowance on trade receivables which
do not contain a significant financing component.

The application simplified approach does not require the company to track change in risk. Rather, it recognises
impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition The
company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivable. The
provision matrix based on its historically observed default rates over the expected life of the trade receivable and is
adjusted for forward looking estimates. At every reporting date, historically observed default rate updated and change
in the forward looking estimates are analysed.

II. Financial Liabilities and equity instruments

Debt and equity instruments issued by an entity are classified as either financial liability or as equity in accordance with
substanceof the contractual arrangements and the definition of a financial liabllityand an equity instrument.

a) Equity instruments:

An equity instruments is any contact theevidences a residual interestinthe as sets of an entity after deducting all of its
liabilities. Equity instruments issued by an entity are recognised at the proceeds received, net of direct issue costs.

An equity instruments is any contact the evidences a residual interest in the asset s of an entity after deducting all of its
liabilities. Equity instruments issued by an entity are recognised at the proceeds received, net of direct issue costs.

b) Financial liabilities :-Classification

Financial liabilities are classified as either's at FVTPL' or' other financial liabilities consists of derivative financial
instruments, wherein the gain/losses arising from remeasurement of these Instruments of recognized in the
statements of profit and loss. Other financial liability (including borrowings and trade and other payables) are
subsequently measured at amortised cost using theeffective interest method.

c) Initial recognition and measurement:

All financial liability are recognised initially at fair value and for those instruments that are not Subsequently measured
at FVTPL, plus/minus transaction cost that are attributable to issue of these instruments.

d) Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled orexpires .When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modifi cation is treated as the derecognition of
the original liability and the recognition of the new liability. The difference in the respective carrying amounts is
recognised in the statement of Profit and Loss,

III. FairValue

The Company determines the fair value of its financial instruments on the basis of the following hierarchy

a) Level 1. The fair value of financial instruments quoted in active markets is based on their quoted closing price at the
balance sheet date. Examples include exchange traded commodity derivatives and other financial instruments in
equity and debt securities which are listed ina recognised stock exchange

b) Level 2: The fair value of financial instruments that are not traded in active markets is determined by using valuation
techniques using observable market data Such valuations techniques Include discounted cash flows, standard
valuation models based on market parameters for interest rates, yield curves or foreign exchange rates, dealer
quotes for similar instruments and use of comparable arm's length transactions. For example, the fair value of
forward exchange contracts, currency swaps and interest rate swaps is determined by discounting estimated future
cash flows using a risk-free interest rate

c) Level 3 : The fair value of financial instruments that are measured on the basis of entity specific valuations using
inputs thatare not based on observable market data (unobservable inputs)

IV. Accounting fordayl differences

If the fair value of the financial asset or financial liability at initial recognition differs from the transaction price, this if it is not

considerationfor goods or services or a deemed capital contribution or deemed distribution, isaccounted asfollows:

i) if the fair value is evidence by a quoted price in an active market for an Identical asset or liability (ie Level 1 input) or
based on a valuation technique that uses data from observable market, the entire day 1 gain/loss is recorded
immediately in the statement of profit and loss: or

i) in all other cases the difference between the fair value at initial recognition and transaction price is deferred. After
initial recognition, the deferred difference is recorded as gain or loss in the statement profit and loss only to the extent
that is arises from a change in a factor (including time) that market praticipants would take into account when pricing
theassetor liability.

In case difference represents:

i) deemed capital contribution - it is recorded as investment in subsidiary

ii) deemed distribution - It is recorded in equity

iii) deemed consideration for goods and services - it is recorded as an asset or liability. This amount is amortised /
accredited to the statement of profit and loss as per the substance of the arrangement (generally straight line basis
over the duration of the arrangement)

2.9 INVENTORIES

Inventories are stated at the lower of cost and net realizable value
Cost of Raw Material is determined on a First In First Out (FIFO) basis.

Stores and Con sumablesare valued at costornetrealizable value (NRV)whicheverls lower
Waste/' Scrap inventory is valued at Net Realisable Value (NRV).

NRV is estimated selling price in the ordinary course of business, less estimated costs of completion and to make the sale
Finished goods are valued at cost or net realizable value whichever is lower. Cost comprises direct materials and where
applicable, direct labour costs, those overheads but excluding borrowing cost that have been Incurred in bringing the
inventories totheirpresent location and condition. Costis arrived on weighted average cost basis.

Work in Progress is valued at cost or net realizable value whichever is less. Cost comprises direct materials and
appropriate portion of direct labourcosts, manufacturing overheads but excluding borrowing cost that have been incurred
in bringing the mventoriesto their present location and condition.

Residual products which earlier were considered as inventories have been transferred to non-current assets They are not
expected to be realized in ordinary course of business and hence are not classified as ordinary inventory. These products
are regul arty reviewed for impairment if any.

Non Moving inventory a re stated at the cost or market value whichever is lower.

2.10 BORROWING COSTS

Borrowing Costs that are interest and other costs that the company incurs in connection with the borrowings of funds and Is
measured with reference to the effective Interest rate applicable to the respective borrowing. Borrowing costs include
interest cost measured at EIR and exchange difference arising from foreign currency borrowings to the extent they are
regarded as an adjustment to the interest cost.

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets arecapitalised as part of the cost
of such assets, wherever applicable, till the assets are ready for their intended use. Such capitalisation Is done only when it
is probable that the asset will result in future economic benefits and the costs can be measured reliably. Capitalisation of
borrowing cost is suspended and charged to statement when active development is interrupted.

Capitalisation of borrowing costs commences when all the following conditions are satisfied

i. Expenditurefortheacquisition,construction orproductionofaqualifying asset is being incurred;

ii. Borrowingcostsare being incurred; and

iii. Activities that are necessary to prepare the asset for its intended use are in progress.

Aqualifying asset is one which necessarily takes substantial period to get ready for intended use All other borrowing costs
are charged to revenue account.

2.11 EMPLOYEE BENEFITS

a) Short term employee benefit obligations

Liabilities for wages, salaries, including non-monetary benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees render the related services are recognised in respect of
employees' services up to the end of the reporting period and are measured at the amounts expected to be paid when
the liabilities are to be settled. The liabilities are presented as current employee benefit obligations in the balance
sheet.

b) Othe r long term employee benefit obIigations
i) Compensated absences

The liabilities foreamed leave is not expected to be settled wholly within 12 months after the end of the period in
which employees render die related service. They are therefore measured as the present value of expected

future payments to be made in respect of services provided by employees up to the end of reporting period
using the projected unit credit method. The benefits are discounted using the market yield at the end of
reporting period thathave terms approximating to the ter ms of related obligation. Remeasurementas a result of
experience adjustments and changes in actuarial assumptions are recognised in the other comprehensive
income.

The obligations are presented as current liabilities in the balance sheet if the Company does not have
unconditional nght to defer settlement for at least 12 months after the reporting period, regardless of when the
actual settlement is expected to occur,

c) Post-employment obligations

The Company operates the following post-employment schemes;

A. Defined benefit plans such as Gratuity

B. Defined contribution plan such as Provident Fund
Defined Benefit Plans

The liability or assetrecognised in the balance sheet in respect of defined benefit gratuity plans is present valueof the
defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit is
calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligations is determined by discounting the estimated future cash outflows
by reference to market yields at the end of the reporting period on government bonds thathave terms approximating
to the terms of the related obligation.

The net interest costis calculated by applying the discount rate to the netbalance of thedefined benefit obligation and
the fair value of plan assets. This cost is included in employee benefit expenses in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly in other comprehensive income. They are included in retained
earnings In the statement of changes in equity and in the balance sheet.

Changes in present value of the defined benefit obligation resulting from plan amendment or curtailments are
reoognised immediately in profit or loss as past service cost.

Defined Contribution Plans

The Company pays provident fund contributions to publicly administered funds as per the local regulations. The
Company has no further payment obligations once the contributions have been paid. The contributions are
accounted for as defined contribution plans and the contributions are recognised as employee benefit expenses
when they are due.

2.12 ACCOUNTING FOR TAXES ON INCOME
a) Income Taxes

The income tax expense or credit for the period is the tax payable on the current period's taxable income based on the
applicable income tax rate foreach jurisdiction adjusted by changes in Deferred TaxAssets and Liabilities attributable
to temporary differences and to unused tax losses.

The current income tax charge is calculated on the basisofthe tax laws enacted or substantively enacted at the end of
the reporting period i.e. as per the provisions of the Income Tax Act, 1961, as amended from time to time.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax
regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected
to be paidtothetaxauthorities,

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities, based on the rates and tax laws enacted or substantively enacted, at the reporting date in the
country where the Company operates and generates taxable income Current tax items are recognised in correlation
to the underlying transaction either in OCI or directly In equity

Current tax assets and liabilities are offset only if, tbe Company:

i) has legally enofroeable right to set off thereocgnlsed amounts; and

ii) Intends eitherto settle on a net basis, or to realise the asset and settle the liability slmultaenously.
b) Deffered Taxes

Deferred tax is recognised in respect of temporary differences between the carrying amounts of the assets and
liabilities forfinandal reporting purposes and the corresponding amountsused for taxation purpose.

Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences
only if it is probable that future taxable profits will be available against which they can be used. Accordingly, in the
absence of certainty of sufficientfuturetaxableincome.net deferred taxasset has not been recognised. Deferred tax
assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related
tax benefits will be realised; such reductions are reversed when the probability of future taxable profits improves.
Unrecognised deferred tax assets are reassessed at each reporting date and recgonised to the extent that it has
become probable that future taxable profits will be available againstwhich they can be used.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse,
using tax rates enacted or substantially enacted at the reporting date.

Deferred Tax Assets and Liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax
liabilities are offset where the Company has a legally enforceable right to offset and intends either to settle on a net
basis, or to realise the asset and settle the liability simultaneously

Current and Deferred Tax is recognised in the Statement of Profit and Loss, except tothe extent that It relates to items
recognised in other comprehensive income or directly in equity In this case, the tax is also recognised In other
comprehensive income or directly in equity, respectively.

Any tax credit Including MAT credit available is recognised as Deferred Tax to the extent that it is probable that future
taxable profit will be a variable against which the unused tax credits can be utilised. The said asset Is created by way of
creditto the Statement of Profit and Loss and shown under the head deferred tax asset

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 prof it will be avail able to allow all or part of the Deferred TaxAsset to be utilised.
Unrecognised Deferred Tax Assets are re-assessed at each reporting date and are recogm sed to the extent that it has
become probable that future taxable profits will allow thedeferred tax asset to be recovered.

Deferred tax assets and liabilities are offset only if. the Company:

i) haslegally enofroeable righttosetoffthereocgnisedamounts; and

ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation
authority on the same taxable entity.