2.2 Significant Accounting Policies :

(a) Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumption which are based upon Management’s
evaluation of the relevant facts and circumstances as of the date of the financial statements that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as at
the financial statements and the results of operations during the reporting period. Future result could
differ from those estimates. The effects of change in accounting estimates are reflected in the financial
statements in the period in which the results are known and if material, are disclosed in the financial
statements.

The following are items which are more likely to be materially adjusted due to estimates and
assumptions turning out to be different than those originally assessed. Detailed information about
each of these estimates is included in the relevant notes together with information about basis of
calculation for each affected line item in the financial statements:

a) Provision for employee benefits

b) Provision for tax expenses

c) Residual value and useful life of property, plant and equipment and intangible assets

d) Valuation of investments

e) Provision for bad and doubtful debts

f) Provision for other expenses

Estimates and judgments are regularly revisited. Estimates are based on historical experience and
other factors, including futuristic reasonable information that may have a financial impact on the
company.

(i) Impairment

The Group estimates the value in use of the cash generating unit (CGU) based on future cash flows
sifter considering current economic conditions and trends, estimated future operating results and
growth rate and anticipated future economic and regulatory conditions. The estimated cash flows are
developed using internal forecasts. The cash flows are discounted using a suitable discount rate in
order to calculate the present value. Management has made assessement for the impairment and it is
of view that there is no impairment loss

(b) Property, Plant and Equipments and depreciation/amortisation

A. Property, Plant and Equipments

Capital work in progress, property, plant and equipment except land are carried at historical cost of
. acquisition, construction or manufacturing, as the case may be, or at deemed cost less accumulated
depreciation less accumulated depreciation, amortisation and impairment loss, if any. Freehold land is
carried at cost of acquisition.

The cost of all items of property, plant and equipments and capital work-in-progress, if any are
comprises of purchase price/cost of construction net of recoverable taxes, trade discount and rebates,
ii) incidental expenses, borrowing cost and any cost directly attributable to the bringing the assets to its
working condition for its intended use, net charges on foreign exchange contracts and adjustment
arising from exchange rate variations attributable to the assets.

The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at regular intervals and adjusted prospectively, if appropriate.

Subsequent costs are added to its asset's carrying value only if they increases the future benefits from
. the existing asset will flow to the company. All other expenses on fixed assets, including repair and
maintenance expenditure and replacement expenditure of parts, are charged to Statement of Profit and
Loss for the period during the which such expenses are incurred.

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. Gains or
v) losses that arise on derecognition of an asset are measured as the difference between net disposal
proceeds and the carrying value of an asset and are recognised 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 regular intervals and adjusted prospectively, if appropriate.

B. Depreciation and amortisation methods, estimated useful lives and residual value

Depreciation on tangible assets is provided on the written down value (WDV) method to allocate cost
i) over the useful lives of assets as prescribed under Part C of Schedule II of the Companies Act 2013
_except for assets which is estimated by the Company._

The company believes that the useful lives as given below best represent the useful lives of these assets
ii) based on internal assessment and supported by technical advice where necessary which may be
different from the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013.

The Company, based on technical assessment made by technical expert and Management estimate,
j.jj depreciates certain items of property, plant and equipment over estimated useful lives which are
different from the useful life prescribed in Schedule II to the Companies Act, 2013. The Management
believes that these estimated useful lives are realistic and reflect fair approximation of the period over
which the assets are likely to be used. This is in compliance with Schedule-II of Companies Act, 2013.

. Assets which are depreciated over useful life/residual value different than those indicated by Schedule
¹ II are as under:

Sr

Assets Category Useful Life (Years)

1 Computers and end user devices 4 Years

2 Plant & Machineries 20 Years

For above mentioned Assets, based on internal assessment and independent technical evaluation
carried out by chartered engineers, the Company believe that the useful lives as given above best
represent the period over which such Company expects to use these assets. Hence the useful lives for
these assets are different from the useful lives as prescribed under Part C of Schedule II of the
Companies Act, 2013.

v) Depreciation on additions is being provided on pro rata basis from the date of such additions.

Depreciation on assets sold, discarded or demolished during the year is being provided up to the
month in which such assets are sold, discarded or demolished.

(c) Intangible Assets:

Intangible assets acquired separately are measured on initial recognition at cost. Following initial
recognition, Intangible assets are stated at cost less accumulated amortisation, impairment loss, if any.
Computer Software for internal use, which is primarily acquired from third party vendors, is
capitalised. Subsequent costs associated with maintaining such software are recognised as expense as
incurred.

Cost of software includes license fees and cost of implementation / system integration services, where
applicable.

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 recognised in the
statement of profit or loss when the asset is derecognised.

Type of asset Useful lives estimated by the management (years)

Intangible assets - Computer software 10

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

Derecognition:

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._

(d) Revenue Recognition:

Revenue is recognised when control of goods and services have been transferred to the customer; at an
amount that can be reliably measured and reflects the consideration which the Company expects to be
entitled in exchange for those goods or services, it is also probable that future economic benefits will
flow to the Company. The timing of when the company transfers the goods or provide services may
differ from the timing of the customer’s payment. Amounts disclosed as revenue are net of Goods and
Service Tax (GST) as Company collects goods and service tax on behalf of the government and
therefore, there are not economic benefits followings to the company.

The Company has generally concluded that it is the principal in its revenue arrangements, except for
the agency services below (in respect of freight), because it typically controls the goods or services
before transferring them to the customer 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.

The disclosures of significant accounting judgments, estimates and assumptions relating to revenue
from contracts with customers are provided below:

a Sale of goods:

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the
goods have been passed to the buyer, i.e. control of goods it can be reliably measured and it is
reasonable to expect ultimate collection. Therefore revenue recognition generally corresponds to the
date when the goods are made available to the customer, or when the goods are released to the carrier
responsible for transporting them to the customer in the following manner:

i) Domestic sales are recognised at the time of dispatch from the point of sale;

ii) Export sales are recognised on the date as per terms of sale of every export contract and are initially
recorded at the relevant exchange rate prevailing on the date of the transaction.

Control of goods refers to the ability to direct the use of and obtain substantially all of the remaining
benefits from goods.

Generally, Company does not offer any specific credit period to its customer. The normal credit term is
30 to 240 days upon delivery.

The nature of contracts of the Company are such that no material part performance obligations would
remain unfulfilled at the end of any accounting period.

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. In
determining the transaction price for the sale of goods, the Company considers the effect of variable
consideration, the existence of significant financing components, non-cash consideration and
consideration payable to the customer, if any.

Financing component

Generally, the Company receives short term advances from its customers. 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.

Principal versus agent consideration in respect of freight

The Company, on behalf of its customers (espeacially export customers), dispatches goods to agreed
locations for an agreed fee. The Company has determined that the performance obligation of the
Company is to arrange for those goods and services (Company is an agent) to the customers and hence
the amount charged to the customer offset by freight charges paid to the freight service providers is
shown as revenue and disclosed as other operating income or other operating expenses, depending
upon the results of the offsetting.

b Jobwork Income

Revenue from job work is recognised when material received is given back to customer after processing
as per contracts with the customers.

c Dividend income

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

d Interest Income

Interest Income from a Financial Assets is recognised using effective interest rate method,
e Export incentives

Exports entitlements are recognised when the right to receive credit as per the terms of the schemes is
established in respect of the exports made by the Company and when there is no significant
uncertaunty regarding the ultimate collection of the relevant export proceeds

f Die design and preparation charges

Revenues from die design and preparation charges are recognized as per the terms of the contract as
and when the significant risks and rewards of ownership of dies are transferred to the buyers and no
significant uncertainty as to its determination or realisation exist.

(e) Inventories:

Cost of inventories have been computed to include all costs of purchases (including materials), cost of
conversion and other costs incurred in bringing the inventories to their present location and condition.

Raw Materials and 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 and stores and spares in determined on a First-in-first out basis.

Work-in-progress and finished goods are valued as lower of cost and net realizable value. Cost includes
direct materials and labour and a proportion of manufacturing overheads based on normal operating
b capacity, incurred in bringing them to their respective present location and condition. 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.

Traded goods are valued at lower of cost and net realizable value. Cost include cost of purchase and
c other costs incurred in bringing the inventories to their present location and condition. Cost is
determined on a First-in-first out basis,
d By-Products are valued at Net Realisable Value.

Inventory of machinery spares and maintenance materials not being material are expensed in the year
of purchase.

(f) Cash Flow Statement:

Cash Flows are presented using indirect method, whereby profit/(loss) before extra ordinary items and
tax is adjusted for the effects of transactions of non -cash nature and any deferrals or accruals of past
or future cash receipts or payments. The cash flow from operating, investing and financing activities of
the company is segregated based on the available information.

Cash comprises of cash on hand and demand deposits with banks. Cash equivalents are short term
b balances, highly liquid investment with maturity of 3 months or less that are readily convertible into
cash.

(g) Foreign Currency Transactions:
a Initial Recognition:

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign
currency amount the exchange rate between the reporting curreny and the foreign currency at the date
of the transactions.

b Conversion:

Foreign currency transactions are translated into the functional currency using the exchange rates at
the dates of the transactions. At the year end, monetary assets and liabilities denominated in foreign
currencies are restated at the year end exchange rates. 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 transactions. Non- monetary items, which are measured at fair value or others similar
valuation denominated in a foreign currency, are translated using the exchange rate at the date when
such value was determined.

c Exchange Differences:

All exchange differences arising of transactions / settlement of foreign currency monetary items are
recognized as income or as expenses in the period in which they arise, where they relate to acquisition
of Fixed Assets, in which case they are adjusted to the carrying cost of such assets.

(h) Government Grants:

Revenue related grants are recognised on accrual basis wherever there is reasonable certainty and
a reliably measured are disclosed under other operating income. Receivables of such grants are shown
under Other Current Assets.

Export benefits are accounted in the year of exports based on eligibility and when there is no
b uncertainty in receiving the same. Receivables of such export benefits are shown under Other Current
Assets.

When the grant relates to an asset, it is adjusted against the cost of that property, plant and
equipments in the year of receipt.

(i) Financial Assets, Financial Liability and Equity Instruments:

Financial assets and liabilities are recognised when the Company becomes a party to the contractual
provisions of the instrument. Financial assets and liabilities are initially measured at below mentioned
categories. Transaction costs that are directly attributable to the acquisition or issue of financial assets
and financial liabilities (other than financial assets and financial liabilities at fair value through profit
or loss) are added to or deducted from the fair value measured on initial recognition of financial asset
or financial liability.

The Company derecognises (i.e. removes from the Company’s Balance Sheet) a financial asset only
when the contractual rights to the cash flows from the asset expire, or when it transfers the financial
asset and substantially all the risks and rewards of ownership of the asset to another entity. The
Company derecognises financial liabilities when, and only when, the Company’s obligations are
discharged, cancelled or have expired.

a Initial recognitions and subsequent measurements of Financial Assets:

The company classifies its financial assets at initial recognition those measured at fair value (either
through other comprehensive income, or through profit or loss), and those to be measured at amortised
cost.

The classification is done depending upon the Company’s business model for managing the financial
assets and the contractual terms of the cash flows characteristics. The business model determines
whether cash flows will result from collecting contractual cash flows, selling the financial assets, or
both.

For assets classified as ‘measured at fair value’, gains and losses will either be recorded in profit or loss
or other comprehensive income, as elected. For assets classified as ‘measured at amortised cost’, this
will depend on the business model and contractual terms of the cash flows.

Fixed Deposits

Fixed Deposits held with banks are measured at Amortised Cost as it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms
of the Financial Asset give rise to cash flows on specified dates that represent solely payments
of principal and interest on the principal amount outstanding.

Interest income from fixed deposits are recognised using the effective interest rate method. The
effective interest rate is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to the gross carrying amount of a financial asset. When calculating
the effective interest rate, the Company estimates the expected cash flows by considering all the
contractual terms of the financial instrument but does not consider the expected credit losses.

The amortized cost of a financial asset is also adjusted for loss allowance, if any.

Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into
known amounts of cash that are subject to an insignificant risk of change in value and having original
maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash
equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

Trade Receivables

Trade receivables that do not contain a significant financing component or for which the Company has
applied the practical expedient are measured at the transaction price determined under Ind AS 115.
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).

b Initial recognitions and measurements of Financial Liabilities:

All Financial Liabilities are recognised at fair value and in case of borrowings, net of directly
attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as
finance cost.

c Subsequent measurements of Financial Liabilities:

Financial Liabilities acre carried at amortised cost using the effective interest method.

For trade and other payables maturing within one year from the balance sheet date, the carrying
amounts approximate fair value due to the short maturity of these instruments.

Under the effective interest method, the future cash payments are exactly discounted to the initial
recognition value using the effective interest rate. The cumulative amortization using the effective
interest method of the difference between the initial recognition amount and the maturity amount is
added to the initial recognition value (net of principal repayments, if any) of the financial liability over
the relevant period of the financial liability to arrive at the amortized cost at each reporting date. The
corresponding effect of the amortization under effective interest method is recognized as interest
expense over the relevant period of the financial liability. !e same is included under finance cost in the
Statement of Profit and Loss.

d Impairment of financial assets:

In accordance with Ind AS 109, the Company uses ‘Expected Credit Loss’ (ECL) model, for evaluating
impairment of Financial Assets other than those measured at Fair Value Through Profit and Loss
(FVTPL).

Expected Credit Losses (ECL) are measured through a loss allowance at an amount equal to:

• The 12-months expected credit losses (expected credit losses that result from those default events on
the financial instrument that are possible within 12 months after the reporting date); or

• Full lifetime expected credit losses (expected credit losses that result from all possible default events
over the life of the financial instrument).

ECL is the difference between all contractual cash flows that are due to the Company in accordance
with the contract and all the cash flows that the entity expects to receive (i.e. all cash shortfalls),
discounted at the original EIR. When estimating the cash flows, an entity is required to consider all
contractual terms of the financial instrument over the expected life of the financial instrument.

For Trade Receivables the Company applies ‘simplified approach’ which requires expected lifetime
losses to be recognised from initial recognition of the receivables.

The Company uses historical default rates to determine impairment loss on the portfolio of trade
receivables. At every reporting date these historical default rates are reviewed and changes in the
forward looking estimates are analysed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no
significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used
and recognised as loss allowance. Subsequently, if the credit quality of the financial asset improves
such that there is no longer an increase in credit risk since initial recognition, the Company reverses
the impairment loss allowance.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/
expense in the Statement of Profit and Loss under the head ‘Other expenses

The Balance Sheet presentation for various financial instruments is described below:

1) Financial assets measured at amortised cost, revenue receivables and lease receivables: ECL is
presented as an allowance, i.e. as an integral part of the measurement of those assets in the Balance
Sheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the
Company does not reduce impairment allowance from the gross carrying amount.

A financial asset is written off when there is no reasonable expectation of recovering the contractual
cash flows.

(j) Employee Benefits:

Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as
a short term employee benefits and they are recognized as an expense at the undiscounted amount in
the Statement of Profit & Loss of the year in which related service is rendered.

The Company provides for the encashment of leave or leave with pay as per rules of the company. The
k employee are entitled to accumulate leave subject to certain limits, for future encashment. The liability
is provided at undiscounted amount based on the number of days of unutilised leave at each balance
sheet date.

Post-emploument benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The company has no
obligation, other than the contribution payable to the provident fund. The company recognizes
contributions payable to the provident fund scheme as an expenditure, when an employee renders the
related services.

Company has not created gratuity fund of its own/has not taken any policy with respect to payment of
gratuity to employees at time of retirement. The liability of the same is also not valued by independent
k actuary. Company is paying monthly gratuity to all employees, calculated as per provision of Payment
of Gratuity Act, 1972 along-with salary payable to them. Moreover, the company has obtained opinion
from labour law consultant for Compliance for payment of Gratuity as per Payment of Gratuity Act,
1972. Refer to note no 31 of the financial statements.

(k) Borrowing Costs:

Borrowing cost includes interest and ancillary costs incurred in connection with the arrangement of
a borrowings and foreign exchange differences arising from foreign currency borrowings to the extent
they are regarded as an adjustment to the interest costs.

Borrowing costs directly attributable to the construction of an qualifying asset that necessarily take a
substantial period of time to get ready for its intended use are capitalized as part of the cost of the
b qualifying asset. Qualifying assets are assets that necessarily take a substantial period of time to get
ready for their intended use or saleAll of there borrowing costs are expensed in the period they are
incurred.

(l) Segment Reporting:

Operating segments are reported in a manner consistent with the internal reporting provided to the
Core Management Committee which includes the Managing Director who is the Chief Operating
Decision Maker. As company mainly manufactures "forging component" and Core Management
Committee examines performance of the company as a single operating segment in accordance with
Ind AS 108 "Operating Segments" notified pursuant to Companies (Accounting Standards) Rule, 2015.
Further, there is reportable secondary segment i.e. Geographical segment. Core Management
Committee examines performance from geographical perspective and has identified geographical
reportable segments from which significant risks rewards are derived viz. Domestic Sales & Export
Sales. Disclosure of the same has been made in Note No. 42 of the financal statements. Segment
reveune comprises of revenue from operations from forging components and other operating revenue.
Segment wise analysis has been made on the above basis and amounts allocated on a reasonable
basis.

(m) Lease:

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.

As a lessee
a Right of use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e. the date 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.

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

The right-of-use assets are also subject to impairment. Refer to accounting policies on impairment of
non-financial assets.

b 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 primarily
comprise of fixed payments.

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.

c Short term leases and leases of low value assets

The Company applies the short-term lease recognition exemption to its short-term leases of office
spaces and certain equipment (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.

(n) Earning Per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to
equity shareholders by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period

attributable to equity shareholders are divided with the weighted average number of shares

outstanding during the year after adjustment for the effects of all dilutive potential equity shares. The
weighted average number of equity shares outstanding during the previous period is adjusted for
events such as bonus issue that have changed the number of equity shares outstanding, without a
corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period

attributable to equity shareholders are divided with the weighted average number of shares

outstanding during the year after adjustment for the effects of all dilutive potential equity shares.

(o) Taxation:

Tax expense is the aggregate amount included in the determination of profit or loss for the period in
respect of current tax and deferred tax. Tax is recognised in Statement of Profit and Loss, except to the
extent that it relates to items recognised in the Other Comprehensive Income. In which case, the tax is
also recognised in Other Comprehensive Income.

Current Taxes

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to
the Income Tax authorities, based on tax rates and laws that are enacted at the Balance sheet date.
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 B186expected to be paid to the tax authorities.

Deferred Taxes

Deferred tax is recognised from temporary timing differences between the carrying amounts of assets
and liabilities in the Financial Statements and the corresponding tax bases used in the computation of
taxable profit. Deferred tax assets are recognised for all deductible temporary differences and unused
tax losses only if it is probable that future taxable amounts will be available to utilise those temporary
differences.

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 liabilities and assets are measured at the tax rates that are expected to apply in the period
in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the reporting period.

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.

Presentation of current and deferred tax:

The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable
right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize
the asset and settle the liability simultaneously. In case of deferred tax assets and deferred tax
liabilities, the same are offset if the Company has a legally enforceable right to set off corresponding
current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities
relate to income taxes levied by the same tax authority on the Company.

(p) Impairment of non-financial assets:

Assets are tested for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised for the amount by which
the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of
an asset’s fair value less cost of disposal and value in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are separately identifiable cash inflows which
are largely independent of the cash inflows from other assets or group of assets (cash-generating units).