2. Material accounting policies

a. Basis of preparation

The financial statements of the Company have been
prepared in accordance with Indian Recounting Standards
(inD RS) notified under the section 133 of the Companies
Rct 2013 (the Rct) read with Companies (Indian Accounting
Standards) Rule 2015 (as amended from time to time)
and other relevant provision of the Rct. The financial
statements have been prepared on a historical cost basis,
except for the following assets and liabilities:

i) Certain financial assets and liabilities that are
measured at fair value

ii) Defined benefit plans-plan assets are
measured at fair value

The financial statements are presented in Indian Rupees ('H')
and all values are rounded to nearest crore (H 00,00,000)
upto two decimal places, except when otherwise indicated.

b. Current versus non-current classification

The Company segregates assets and liabilities into current
and non-current categories for presentation in the balance
sheet after considering its normal operating cycle and
other criteria set out in Ind RS 1, "Presentation of Financial
Statements". For this purpose, current assets and liabilities
include the current portion of non-current assets and
liabilities respectively.

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

The operating cycle is the time between the acquisition
of assets for processing and their realization in cash and
cash equivalents. The Company has identified period up to
twelve months as its operating cycle.

c. Property, plant and equipment

Property, Plant and equipment including capital work in
progress are stated at cost, less accumulated depreciation
and accumulated impairment losses, if any. The cost
comprises of purchase price, taxes, duties, freight and
other incidental expenses directly attributable and related
to acquisition and installation of the concerned assets
and are further adjusted by the amount of tax credit
availed wherever applicable. The Company identifies and
determines cost of each component/ part of the asset
separately, if the component/ part have a cost which is
significant to the total cost of the asset and has useful
life that is materially different from that of the remaining
asset. Similarly, when significant parts of plant and
equipment are required to be replaced at intervals or when
a major inspection/overhauling is required to be performed,
such cost of replacement or inspection is capitalised (if the
recognition criteria is satisfied) in the carrying amount of
plant and equipment as a replacement cost or cost of major
inspection/overhauling, as the case may be and depreciated
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. Rll
other repair and maintenance costs are recognised in
statement of profit and loss as incurred. The present value
of the expected cost for the decommissioning of an asset
after its use is included in the cost of the respective asset
if the recognition criteria for a provision are met.

Subsequent expenditure related to an item of fixed asset
is added to its book value only if it increases the future
benefits from the existing asset beyond its previously
assessed standard of performance. Rll other expenses
on existing fixed 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.

Items of stores and spares that meet the definition of
property, plant and equipment are capitalized at cost and
depreciated over their useful life. Otherwise, such items
are classified as inventories.

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 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 and loss when the asset
is derecognised

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

Property, plant and equipment held for sale is valued
at lower of their carrying amount and net realizable
value. Any write-down is recognised in the statement of
profit and loss.

Depreciation on property, plant and equipment is provided
on pro-rata basis with reference to the date of addition/
disposal on straight-line method using the useful lives of
the assets estimated by management based on technical
evaluation; these rates are in certain cases differ from the
lives prescribed under Schedule II of the Act.

The Company has used the following useful lives to
provide depreciation:

Leasehold improvements are depreciated over
the lease period.

d. Intangible assets

Intangible assets acquired separately are measured on
initial recognition at cost. Following initial recognition,
intangible assets are carried at cost less accumulated
amortization and accumulated impairment losses, if
any. Internally generated intangible assets, excluding
capitalized development costs, are not capitalized and
expenditure is reflected in the Statement of Profit and Loss
in the year in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either
finite or indefinite.

Intangible assets with finite lives are amortised over
the useful economic lives 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.

Intangible assets with indefinite useful lives 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.

Gains or losses arising from derecognition of an intangible
asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset
and are recognized in the Statement of Profit and Loss.

Intangible assets being specialised Software and Technical
Know-how are amortised on a straight line basis over their
useful life (estimated by the management) of 3 to 5 years
and 10 years respectively.

e. Leases

The Company assesses at contract inception whether
a contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset
for a period of time in exchange for consideration.

Where the Company is lessee

The Company applies a single recognition and measurement
approach for all leases, except for short-term leases and
leases of low-value assets. The Company recognises lease
liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets.

(i) Right to use assets

The Company recognises right-of-use assets at the
commencement date of the lease (i.e., the date when
the underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted
for any remeasurement of lease liabilities. The cost
of right-of-use assets includes the amount of lease
liabilities recognised, initial direct costs incurred, and
lease payments made at or before the commencement
date less any lease incentives received. Right-of-use
assets are depreciated on a straight-line basis over
the shorter of the lease term and the estimated
useful lives of the assets, as follows:

If ownership of the leased asset transfers to
the Company at the end of the lease term or the
cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated useful
life of the asset.

The right-of-use assets are also subject to impairment.
Refer to the accounting policies in section (g)
Impairment of non-financial assets.

(ii) Lease Liabilities

At the commencement date of the lease, the Company
recognises lease liabilities measured at the present
value of lease payments to be made over the lease
term. The lease payments include fixed payments
(including in substance fixed payments) less any
lease incentives receivable, variable lease payments
that depend on an index or a rate, and amounts
expected to be paid under residual value guarantees.
The lease payments also include the exercise price of

a purchase option reasonably certain to be exercised
by the Company and payments of penalties for
terminating the lease, if the lease term reflects the
Company exercising the option to terminate. Variable
lease payments that do not depend on an index or
a rate are recognised as expenses (unless they
are incurred to produce inventories) in the period
in which the event or condition that triggers the
payment occurs.

In calculating the present value of lease payments,
the Company uses its incremental borrowing rate at
the lease commencement date because the interest
rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made.
In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change
in the lease term, a change in the lease payments
(e.g., changes to future payments resulting from a
change in an index or rate used to determine such
lease payments) or a change in the assessment of an
option to purchase the underlying asset.

Where the Company is the lessor-

Leases in which the Company does not transfer substantially
all the risks and rewards of ownership of an asset are
classified as operating leases. Assets subject to operating
leases are included in Property, plant & equipment. Lease
income on an operating lease is recognized in the Statement
of Profit and Loss on a straight-line basis over the lease
term. Costs, including depreciation, are recognized as an
expense in the Statement of Profit and Loss.

Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition
exemption to its short-term leases contracts (i.e., those
leases that have a lease term of 12 months or less from
the commencement date and do not contain a purchase
option). It also applies the lease of low-value assets
recognition exemption to leases of office equipment that
are considered to be low value. Lease payments on short¬
term leases and leases of low-value assets are recognised
as expense on a straight-line basis over the lease term.

f. Borrowing costs

Borrowing cost includes interest, amortization of ancillary
costs incurred in connection with the borrowings and
exchange differences to the extent they are regarded as
an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition
or construction of an asset that necessarily takes a
substantial period of time to get ready for its intended use
are capitalized as part of the cost of the asset. All other
borrowing costs are expensed in the year they occur.

g. Impairment of non-financial assets

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. The
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
Companies of assets. Where 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 net selling price, recent market transactions
are taken into account, if available. If no such transactions
can be identified, an appropriate valuation model is used.

The Company bases its impairment calculation on detailed
budgets and forecast calculations which are prepared
separately for each of the Company's cash-generating units
to which the individual assets are allocated. Impairment
losses of continuing operations, including impairment
on inventories, are recognised in the Statement of
Profit and Loss.

For assets, 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 and Loss.

Intangible assets with indefinite useful lives are tested for
impairment annually either individually or at the CGU level,
as appropriate, and when circumstances indicate that the
carrying value may be impaired.

After impairment, depreciation is provided on the revised
carrying amount of the asset over its remaining useful life.

h. Government grants

Grants and subsidies from the government are recognized
when there is reasonable assurance that (i) the Company
will comply with the conditions attached to them, and (ii)
the grant/subsidy will be received.

When the grant or subsidy relates to revenue, it is recognized
as income on a systematic basis in the Statement of Profit
and Loss over the periods necessary to match them with
the related costs, which they are intended to compensate.
Where the grant relates to an asset, it is recognised as
income in equal amounts over the expected useful life of
the related asset.

When the Company receives grants of non-monetary
assets, the asset and the grant are recorded at fair value
amounts and released to the Statement of Profit and Loss
over the expected useful life in a pattern of consumption
of the benefit of the underlying asset i.e. by equal annual
instalments. When loans or similar assistance are provided
by governments or related institutions, with an interest
rate below the current applicable market rate, the effect of
this favourable interest is regarded as a government grant.
The loan or assistance is initially recognised and measured
at fair value and the government grant is measured as
the difference between the initial carrying value of the
loan and the proceeds received. The loan is subsequently
measured as per the accounting policy applicable to
financial liabilities.

i. Inventories

Raw materials, components, stores and spares are valued
at lower of cost and net realizable value. However,
materials and other items held for use in the production
of inventories are not written down below cost if the
finished products in which they will be incorporated are
expected to be sold at or above cost. Cost of raw materials,
components, stores and spares is determined on moving
weighted average method.

Work-in-progress and finished goods are valued at lower of
cost and net realizable value. Cost includes direct materials
and labour and a proportion of manufacturing overheads

based on normal operating capacity. Cost of finished goods
is determined on standard cost basis.

Traded goods are valued at lower of cost and net realizable
value. Cost of purchase and other costs in bringing the
inventories to their present location and condition. Cost of
traded goods is determined on weighted average basis.

Saleable scrap, whose cost is not identifiable, is valued at
net realisable value.

Stores and Spares which do not meet the definition of
property, plant and equipment are accounted as inventories.

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

j. Revenue from contract with customers

Revenue from contracts with customers is recognised
when control of the goods are transferred to the customer
at an amount that reflects the consideration to which the
Company expects to be entitled in exchange for those goods.
The Company has generally concluded that it is the principal
in its revenue arrangements because it typically controls the
goods before transferring them to the customer.

The disclosures of significant accounting judgements,
estimates and assumptions relating to revenue from
contracts with customers are provided in Note 2.1.

Sale of Goods

Revenue from sale of goods is recognised at the point
in time when control of the goods is transferred to the
customer, generally on delivery of the goods.

The Company considers whether there are other
promises in the contract that are separate performance
obligations to which a portion of the transaction price
needs to be allocated (e.g., warranties, Sales points). In
determining the transaction price for the sale of goods, the
Company considers the effects of variable consideration,
the existence of significant financing components,
noncash consideration, and consideration payable to the
customer (if any).

Variable consideration

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. Some contracts for
the sale of goods provide customers with volume rebates.
The volume rebates give rise to variable consideration.

- Volume rebates

The Company provides retrospective volume rebates
to certain customers once the quantity of products
purchased during the period exceeds a threshold
specified in the contract. Rebates are offset against
amounts payable by the customer. To estimate the
variable consideration for the expected future rebates,
the Company applies the most likely amount method
for contracts with a single-volume threshold and the
expected value method for contracts with more than
one volume threshold. 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 Company then
applies the requirements on constraining estimates
of variable consideration and recognises a refund
liability for the expected future rebates.

- Significant financing component

The Company receives short-term advances from its
customers. Using the practical expedient in Ind AS 115,
the Company does not adjust the promised amount of
consideration for the effects of a significant financing
component if it expects, at contract inception, that the
period between the transfer of the promised goods to
the customer and when the customer pays for that
goods will be one year or less.

Warranty obligations

The Company typically provides warranties for general
repairs of defects that existed at the time of sale, as
required by law. These assurance-type warranties are
accounted for under Ind AS 37 Provisions, Contingent
Liabilities and Contingent Assets. Refer to the accounting
policy on warranty provisions.

In some contracts, the Company provides warranty to the
customers. The warranty is accounted for as a separate
performance obligation and a portion of the transaction
price is allocated. The performance obligation for the
warranty service is satisfied based on time elapsed.

Sales points programme

The Company has a sales point programme, which allows
customers to accumulate points that can be redeemed
for free products. The sales points give rise to a separate
performance obligation as they provide a material right
to the customer. A portion of the transaction price is
allocated to the sales points awarded to customers based
on relative stand-alone selling price and recognised as a
contract liability until the points are redeemed. Revenue is
recognised upon redemption of points by the customer.

When estimating the stand-alone selling price of the sales
points, the Company considers the likelihood that the
customer will redeem the points. The Company updates its
estimates of the points that will be redeemed on a quarterly
basis and any adjustments to the contract liability balance
are charged against revenue.

Sales of Services

Revenue from installation and maintenance services are
recognised at point of time upon completion of services.

Trade receivables

A receivable represents the Company's right to an
amount of consideration that is unconditional (i.e., only
the passage of time is required before payment of the
consideration is due). Refer to accounting policies of
financial assets - 'financial instruments - initial recognition
and subsequent measurement'.

Contract liabilities

A contract liability is the obligation to transfer goods
to a customer for which the Company has received
consideration (or an amount of consideration is due) from
the customer. If a customer pays consideration before
the Company transfers goods to the customer, a contract
liability is recognised when the payment is made or the
payment is due (whichever is earlier). Contract liabilities
are recognised as revenue when the Company performs
under the contract.

Refund liabilities

A refund liability is the obligation to refund some or all
of the consideration received (or receivable) from the
customer and is measured at the amount the Company
ultimately expects it will have to return to the customer.
The Company updates its estimates of refund liabilities
(and the corresponding change in the transaction price) at
the end of each reporting period. Refer to above accounting
policy on variable consideration.

k. Other revenue streams

- Interest Income

For all debt instruments measured either at amortised
cost or at fair value through other comprehensive
income, 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.

- Export Benefits

Export benefits arising from Duty Drawback scheme,
Merchandise Export Incentive Scheme, Focus Market
Scheme are recognised on shipment of direct exports.
Revenue from exports benefits measured at the fair
value of consideration received or receivable.

l. Foreign currency transactions and balances

The financial statements are presented in H, which is the
Company's functional currency.

Foreign currency transactions are initially recorded at
functional currency's spot rates at the date the transaction
first qualifies for recognition.

Foreign currency monetary items are translated using the
functional currency spot rates prevailing at the reporting
date. non-monetary items, which are measured in terms
of historical cost denominated in a foreign currency,
are reported using the exchange rate at the date of the
transaction. non-monetary items, which are measured
at fair value or other similar valuation denominated in a
foreign currency, are translated using the exchange rate at
the date when such value was determined.

Exchange differences arising on the settlement or translation
of monetary items are recognized in the Statement of
Profit and Loss in the period in which they arise.

m. Employee benefits

i. Short-term obligations

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

ii. Other long-term employee benefit obligations
- Gratuity

Gratuity liability is defined benefit obligation
and is provided for on the basis of an actuarial
valuation on projected unit credit (PUC) method
made at the end of each financial year. The
Company's gratuity fund scheme is managed
by trust maintained with Insurance companies
to cover the gratuity liability of the employees
and premium paid to such insurance companies
is charged to the statement of profit and loss.

Remeasurements, comprising of actuarial gains
and losses, the effect of the asset ceiling,
excluding amounts included in net interest on
the net defined benefit liability and the return
on plan assets (excluding amounts included in
net interest on the net defined benefit liability),
are recognised immediately in the balance sheet
with a corresponding debit or credit to retained
earnings through OCI in the period in which they
occur. Remeasurements are not reclassified to
profit or loss in subsequent periods.

Net interest is calculated by applying the
discount rate to the net defined benefit liability
or asset. The Company recognises the following
changes in the net defined benefit obligation as
an expense in the statement of profit and loss:

• Service costs comprising current
service costs, past-service costs, gains
and losses on curtailments and non¬
routine settlements

• Net interest expense or income

- Provident fund and Superannuation fund

Retirement benefit in the form of Provident
Fund, ESI and Superannuation Fund are defined
contribution schemes. The Company has no
obligation, other than the contribution payable to
the fund. The Company recognizes contribution
payable through provident fund scheme as an
expense, when an employee renders the related
services. If the contribution payable to scheme
for service received before the balance sheet
date exceeds the contribution already paid, the
deficit payable to the scheme is recognised as
liability after deducting the contribution already
paid. If the contribution already paid exceeds the
contribution due for services received before the
balance sheet date, then excess is recognised
as an asset to the extent that the prepayment
will lead to, for example, a reduction in future
payment or a cash refund.

- Compensated Rbsences

Accumulated leave, which is expected to be
utilized within the next 12 months, is treated
as short-term employee benefit. The Company
measures the expected cost of such absences
as the additional amount that it expects to pay
as a result of the unused entitlement that has
accumulated at the reporting date.

The Company treats accumulated leave expected
to be carried forward beyond twelve months, as
long-term employee benefit for measurement
purposes. Such long-term compensated absences
are provided for based on the actuarial valuation
using the projected unit credit method at the
year-end. Actuarial gains/losses are immediately
taken to the Statement of Profit and Loss and
are not deferred. The Company presents the
leave as a current liability in the balance sheet,
to the extent it does not have an unconditional
right to defer its settlement for 12 months after
the reporting date. Where Company has the
unconditional legal and contractual right to defer
the settlement for a period beyond 12 months,
the same is presented as non-current liability.

n. Share based payments

Employees (including senior executives) of the Company
receive remuneration in the form of share-based payments,
whereby employees render services as consideration for
equity instruments (equity-settled transactions).

Equity-settled transactions

The cost of equity-settled transactions is determined by
the fair value at the date when the grant is made using
an appropriate valuation model. That cost is recognised
as employee benefits expense in the statement of profit
and loss together with a corresponding increase in other
equity as 'Share based payments reserve' in lines with
requirement as per Ind RS 102 (Share based payments),
over the period in which the performance and/or service
conditions are fulfilled. The cumulative expense recognised
for equity settled transactions at each reporting date until
the vesting date reflects the extent to which the vesting
period has expired and the Company's best estimate of
the number of equity instruments that will ultimately vest.
The statement of profit and loss expense or credit for a
period represents the movement in cumulative expense
recognised as at the beginning and end of that period and
is recognised in employee benefits expense.

Service and non-market performance conditions are not
taken into account when determining the grant date fair
value of awards, but the likelihood of the conditions being
met is assessed as part of the Company's best estimate
of the number of equity instruments that will ultimately
vest. Market performance conditions are reflected within
the grant date fair value. Rny other conditions attached to
an award, but without an associated service requirement,
are considered to be non-vesting conditions. non-vesting
conditions are reflected in the fair value of an award and
lead to an immediate expensing of an award unless there
are also service and/or performance conditions.

no expense is recognised for awards that do not ultimately
vest because non-market performance and/or service
conditions have not been met. Where awards include a
market or non-vesting condition, the transactions are
treated as vested irrespective of whether the market or
non-vesting condition is satisfied, provided that all other
performance and/or service conditions are satisfied.

When the terms of an equity-settled award are modified,
the minimum expense recognised is the expense had the
terms had not been modified, if the original terms of the
award are met. Rn additional expense is recognised for any
modification that increases the total fair value of the share-
based payment transaction, or is otherwise beneficial to the
employee as measured at the date of modification. Where
an award is cancelled by the entity or by the counterparty,
any remaining element of the fair value of the award is
expensed immediately through profit or loss.

The dilutive effect of outstanding options is reflected as
additional share dilution in the computation of diluted
earnings per share.

o. Income taxes

Tax expense comprises current and deferred tax. Current
income-tax is measured at the amount expected to be paid
to or recovered from 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
Statement of Profit and Loss is recognised outside Statement
of Profit and Loss (either in other comprehensive income
or 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.

Deferred tax is provided using the liability method on
temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial
reporting purposes at the reporting date. Deferred tax is
measured using the tax rates and the tax laws enacted or
substantively enacted at the reporting date. Deferred tax
relating to items recognised outside Statement of Profit
and Loss is recognised outside Statement of Profit and
Loss (either in other comprehensive income or in equity).

Deferred tax liabilities are recognized for all taxable
temporary differences. Deferred tax assets are recognized
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
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.

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.

p. Segment reporting
Identification of segments

The Company's operating businesses are organized and
managed separately according to the nature of products

and services provided, with each segment representing a
strategic business unit that offers different products and
serves different markets. The analysis of geographical
segments is based on the areas in which the customers of
the Company are located.

Rilocation of common costs

Common allocable costs are allocated to each segment
on a case to case basis applying the ratio, appropriate
to each relevant case. Revenue and expenses, which
relate to the enterprise as a whole and are not allocable
to segment on a reasonable basis, are included under the
head "Unallocated".

Unallocated items

Unallocated items include general corporate income
and expense items which are not allocated to any
business segment.

Segment accounting policies

The Company prepares its segment information in
conformity with the accounting policies adopted for
preparing and presenting the financial statements of the
Company as a whole.

q. Earnings Per Share

Basic earnings per share are calculated by dividing
the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the year.

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