4 Material Accounting Policies

This note provides a list of the material accounting
policies adopted in the preparation of the Financial
Statements and have been consistently applied to all
periods presented unless otherwise indicated.

4.1 Property, Plant and Equipment

All items of property, plant and equipment are stated
at historical cost less accumulated depreciation and
accumulated impairment losses, if any.

Depreciation Method, Estimated Useful Lives and
Residual Values

Depreciation is calculated on pro-rata basis using
the straight-line method to allocate their cost,
net of their estimated residual value, over their
estimated useful lives. The useful lives have been
determined based on technical evaluation done by
the Management's expert which are different than
those specified by Schedule II to Companies Act
2013 in respect of factory buildings / other buildings,
plant and equipment and railway sidings, in order to
reflect the actual usage of assets. Each component
of an item of Property, Plant and Equipment with a
cost that is significant in relation to the cost of that
item is depreciated separately if its useful life differs
from the other components of the item.

The useful lives of the property, plant and
equipment as estimated by the management are as
follows:

Leasehold land is amortised on straight - line
basis over the primary lease period of 99 years
or its estimated useful life, whichever is shorter.
Leasehold improvement are amortised on straight
- line basis over the primary lease period (ranging
from 2 to 10 years) or their estimated useful lives,
whichever is shorter.

4.2 Intangible Assets

Intangible assets have a finite useful life and are
stated at cost less accumulated amortisation and
accumulated impairment losses, if any.

Computer Software

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

Designs

Designs represents cost incurred towards
development of Aluminium and Stainless steel
car body for passenger rail segment and Traction
converters.

Amortisation Method and Period

Intangible assets are amortised on a pro-rata basis
using the straight-line method over its estimated
useful life as mentioned below. The useful lives have
been determined based on technical evaluation
done by the management's expert which are
different than those specified by Schedule II to
Companies Act 2013. Amortisation method and
useful lives are reviewed periodically including at
each financial year end.

4.3 Inventories

Inventories are stated at the lower of cost and net
realisable value. Cost are assigned to individual
items of inventory on weighted average basis. Net
realisable value is the estimated selling price in the
ordinary course of business, less estimated costs of
completion and the estimated costs necessary to
make the sale.

4.4 Leases

As a Lessee

Assets and liabilities arising from a lease are initially
measured on a present value basis. Lease liabilities
include the net present value of the following lease
payment:

a) Fixed payments (including in substance fixed
payments) less any lease incentive receivable.

b) Variable lease payment that are based on an
index or a rate, initially measured using the
index or a rate at the commencement date.

c) Amount expected to be paid by the Company
as under residual value guarantees.

d) Exercise price of a purchase option if the
Company is reasonably certain to exercise that
option.

e) Payment of penalties for terminating the
lease, if the lease term reflects the Company
exercising that option.

To determine the incremental borrowing rate, the
Company:

a) Where possible, use recent third party financing
received by the individual lessee as a starting
point, adjusted to reflect changes in the
financing conditions since third party financing
was received.

b) Use a built up approach that starts with risk free
interest rate adjusted for credit risk of leases
held by the Company, which does not have
recent third party financing.

The incremental borrowing rate considered by the
Company is in the range of 9% - 10%

Lease payments are allocated between principal and
finance cost. The finance cost is charged to Statement
of profit and loss over the lease period so as to
produce a constant periodic rate of interest on the
remaining balance of the liability for each period.

Right-of-Use Assets are measured at cost comprising
the following :-

i) the amount of the initial measurement of lease
liability

ii) any lease payment made at or before the
commencement date less any lease incentive
received

iii) any initial direct cost and

iv) restoration costs.

Right of use of assets are generally depreciated over
the shorter of the asset's useful life and the lease
term on a straight line basis.

Payment associated with short-term leases of
equipment and all the leases of low value assets are
recognised on a straight line basis as an expenses in
the statement of profit and loss. Short term leases
are leases with a lease term of less than 12 months
or less.

4.5 Investments in Subsidiaries, Associate and Joint
Ventures

Investments in subsidiaries, associate and joint
ventures are carried at cost less provision for
impairment, if any. Investment in subsidiaries,
associate and joint ventures 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 carrying
amount of investments exceeds its recoverable
amount.

4.6 Revenue Recognition
Sale of Products

Revenue for sale of products mainly comprises
of wagons / locomotive shells and related items,
where revenue is recognised at a point in time, when
control of the asset is transferred to the customer,
which generally occurs on receipts of dispatch
memo / inspection certificate from customer as
per terms of contract. On receipt of same, the title
of goods passes on to the customer basis the laid
down criteria under the standard.

Revenue from sale of specialised products

Revenue from specialised products mainly consists
of defense related products (i.e Bailey bridge,
Shelters etc.), Ship building, Metro Trains, Train
Electricals, Mainline Electric Multiple Unit and
Electric Multiple Unit in respect of which revenue
is recognised over a period of time as performance
obligations are satisfied over time as per criteria laid
down under the standard and specified above.

Sale of Services

Revenue from service contracts are recognised in
the accounting period in which the services are
rendered. Where the contracts include multiple
performance obligations, the transaction price is
allocated to each performance obligation based
on the standalone selling price and revenue
is recognised at point in time on fulfillment of
respective performance obligation. In case,
the service contracts include one performance
obligation revenue is recognised based on the
actual service provided to the end of the reporting

period as proportion of the total services to be
provided. This is determined based on the actual
expenditure incurred to the total estimated cost.

Revenue from services rendered is recognised as
the services are rendered and is booked based on
agreement / arrangements with the concerned
parties.

4.7 Hedging activities

Cash flow hedges that qualify for hedge accounting
The effective portion of the change in the fair value
of the derivative is recognised directly in other
comprehensive income and in cash flow hedging
reserve within equity. The gain or loss relating to
the ineffective portion is recognised immediately in
the statement of profit and loss, within other gains/
(losses).

When forward contracts are used to hedge forecast
transactions, the company generally designates
only the change in fair value of the forward contract
related to the spot component as the hedging
instrument. Gains or losses relating to the effective
portion of the change in the spot component
of the forward contracts are recognised in other
comprehensive income in cash flow hedging
reserve within equity.

Amounts accumulated in equity are reclassified
to profit or loss in the periods when the
hedged item affects profit or loss, as follows:
- If the cash flow hedge of a forecasted transaction
results in the recognition of a non-financial asset
or liability, then, at the time the asset or liability is
recognised, the associated gains or losses on the
derivative that had previously been recognised in
equity are included in the initial measurement of
the asset or liability. For hedges that do not result in
the recognition of a non-financial asset or a liability,
amounts deferred in equity are recognised in the
statement of profit and loss in the same period in
which the hedged item affects the statement of
profit and loss.

In cases where hedge accounting is not applied,
changes in the fair value of derivatives are
recognised in the statement of profit and loss as and
when they arise. Hedge accounting is discontinued
when the hedging instrument expires or is sold,
terminated, or exercised, or no longer qualifies for
hedge accounting. At that time, any cumulative
gain or loss on the hedging instrument recognised
in equity is retained in equity until the forecasted
transaction occurs. If a hedged transaction is no
longer expected to occur, the net cumulative gain
or loss recognised in equity is transferred to the
statement of profit and loss for the period.

4.8 Share Based Payments

Share-based compensation benefits are provided
to employees via the Titagarh Rail Systems Limited
Employee Stock Option Scheme namely Titagarh
Rail Systems Limited Employee Stock Option
Scheme 2023. Employees receive remuneration
in the form of share-based payments, whereby
employees render services as consideration for
equity instruments (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, together with a corresponding increase
in Employee Stock Options Outstanding Account in
equity, over the period in which the performance
and/or service conditions are fulfilled, in Employee
Benefit Expense. 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. 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. The
dilutive effect of outstanding options is reflected
as additional share dilution in the computation of
diluted earnings per share.

5 Other Accounting Policies

5.1 Property, Plant and Equipment

Cost of item of property, plant and equipment
includes purchase price, taxes, non-refundable

duties, freight and other costs that are directly
attributable to bringing assets to their working
condition for their intended use. Borrowing cost
incurred during the period of construction is
capitalised as a part of qualifying assets.

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 benefits 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.

The useful lives, residual values and the method of
depreciation of property, plant and equipment are
reviewed, and adjusted if appropriate, at the end of
each reporting period.

Advances paid towards the acquisition of property,
plant and equipment outstanding at each Balance
Sheet date is classified as 'Capital Advances' under
'Other Non-Current Assets' and the cost of property,
plant and equipment not ready to use are disclosed
under 'Capital Work-in-progress'.

5.2 Investment Properties

Property that is held for long-term rental yields
or for capital appreciation or both, and that is not
occupied by the Company, is classified as investment
property. Investment property is measured initially
at its cost, including related transaction costs and
where applicable borrowing costs. Subsequent
expenditure is capitalised to the asset's carrying
amount only when it is probable that future
economic benefits associated with expenditure will
flow to the Company and the cost of the item can
be measured reliably.

5.3 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 costs of disposal and value in use.
Value in use is the present value of estimated future
cash flows expected to arise from the continuing
use of an asset and from its disposal at the end
of its useful life. For the purposes of assessing
impairment, assets are compared 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).

5.4 Inventories

Cost of inventories comprises cost of purchases and
all other costs incurred in bringing the inventories
to their present location and condition. Material
and other items held for use in 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
work-in-progress and finished goods comprises
direct materials, direct labour and an appropriate
proportion of variable and fixed overhead
expenditure, the latter being allocated on the basis
of normal operating capacity. Net realisable value
is the estimated selling price in the ordinary course
of business, less estimated costs of completion and
the estimated costs necessary to make the sale.
Cost of raw materials and components consumed is
a derived figure out of opening stock, closing stock
and purchases including adjustment if any during
the period.

5.5 Investments (Other than Investments in
Subsidiaries, Associate and Joint Ventures) and
Other Financial Assets

(i) Classification

The Company classifies its financial assets in the
following measurement categories:

- those to be measured subsequently at fair
value (either through other comprehensive
income or through profit or loss), and

- those to be measured at amortised cost.

The classification depends on the Company's
business model for managing the financial
assets and the contractual terms of the cash
flows.

For assets measured at fair value, gains and
losses will either be recorded in profit or loss or
other comprehensive income. For investments
in debt instruments, this will depend on the
business model in which the investment is
held. For investments in equity instruments,
this will depend on whether the Company
has made an irrevocable election at the
time of initial recognition to account for the
equity investment at fair value through other
comprehensive income.

The Company reclassifies debt investments
when and only when its business model for
managing those assets changes.

(ii) Measurement

At initial recognition, the Company measures a
financial asset at its fair value plus, in the case
of a financial asset not at fair value through
profit or loss, transaction costs that are directly
attributable to the acquisition of the financial
asset. Transaction costs of financial assets
carried at fair value through profit or loss are
expensed in profit or loss.

Equity Instruments

The Company subsequently measures all
equity investments (other than investments in
subsidiaries, associate and joint ventures) at fair
value. Where the Company's management has
elected to present fair value gains and losses
on equity investments in other comprehensive
income, there is no subsequent reclassification
of fair value gains and losses to profit or loss.
Changes in the fair value of financial assets at
fair value through profit or loss are recognised
in 'Other Gain / (Losses)' in the Statement of
Profit and Loss.

(iii) Impairment of Financial Assets

The Company assesses on a forward looking
basis the expected credit losses associated
with its assets carried at amortised cost and
FVOCI debt instruments, if any. The impairment
methodology applied depends on whether
there has been a significant increase in credit
risk. Note 44(II) details how the Company
determines whether there has been a significant
increase in credit risk.

For trade receivables only, the Company applies
the simplified approach permitted by Ind AS
109,' Financial Instruments', which requires
expected lifetime losses to be recognised from
initial recognition of the receivables.

(iv) Modification of Financial Instruments

The Company if renegotiates or otherwise
modifies the contractual cash flows of financial
instrument, the Company assesses whether or
not the new terms are substantially different to
the original terms.

If the terms are substantially different, the
original financial instrument is derecognised
and recognises a 'new' instrument at fair value
and recalculates a new effective interest rate
for the instrument. Differences in the carrying
amount are also recognised in profit or loss as a
gain or loss on derecognition.

If the terms are not substantially different,
the renegotiation or modification does not
result in derecognition, and the management
recalculates the gross carrying amount based
on the revised cash flows of the financial asset
and recognises a modification gain or loss in
profit or loss. The new gross carrying amount is
recalculated by discounting the modified cash
flows at the original effective interest rate.

(v) Derecognition of Financial Assets

A financial asset is derecognised only when

- the Company has transferred the rights to
receive cash flows from the financial asset or

- retains the contractual rights to receive
the cash flows of the financial asset, but
assumes a contractual obligation to pay
the cash flows to one or more recipients.

Where the entity has transferred an asset, the
Company evaluates whether it has transferred
substantially all risks and rewards of ownership
of the financial asset. In such cases, the financial
asset is derecognised. Where the entity has not
transferred substantially all risks and rewards of
ownership of the financial asset, the financial
asset is not derecognised.

Where the entity has neither transferred a
financial asset nor retains substantially all
risks and rewards of ownership of the financial
asset, the financial asset is derecognised if
the Company has not retained control of the
financial asset. Where the Company retains
control of the financial asset, the asset is
continued to be recognised to the extent of
continuing involvement in the financial asset.

(vi) Income Recognition
Interest Income

Interest income on financial assets at amortised
cost is accrued on a time proportion basis
using the effective interest rate method
and is recognised in the statement of
profit and loss as part of other income.
Interest income is calculated by applying the
effective interest rate to the gross carrying
amount of a financial asset except for financial
assets that subsequently become credit-
impaired. For credit impaired financial assets
the effective interest rate is applied to the net
carrying amount of the financial assets (after
deduction of the loss allowance).

Dividends

Dividends are recognised in profit or loss
only when the right to receive payment is
established, it is probable that the economic
benefits associated with the dividend will
flow to the Company, and the amount of the
dividend can be measured reliably.

(vii) Fair Value of Financial Instruments

In determining the fair value of financial
instruments, the Company uses a variety of
methods and assumptions that are based on
market conditions and risks existing at each
reporting date. The methods used to determine
fair value include discounted cash flow analysis
and available quoted market prices. All
methods of assessing fair value result in general
approximation of value, and such value may
never actually be realised.

5.6 Trade Receivables

Trade receivables are amounts due from customers

for goods sold or services rendered in the ordinary

course of business. Trade receivables are recognised
initially at the transaction price as they do not
contain significant financing components. The
Company holds the trade receivables with the
objective of collecting the contractual cash flows
and therefore measures them subsequently at
amortised cost using the effective interest method,
less loss allowance.

5.7 Borrowings

Borrowings are initially recognised at fair value,
net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any
difference between the proceeds (net of transaction
costs) and the redemption amount is recognised
in profit or loss over the period of the borrowings
using the effective interest method. Fees paid on
the establishment of loan facilities are recognised
as transaction costs of the loan to the extent that
it is probable that some or all of the facility will be
drawn down. In this case, the fee is deferred until
the draw down occurs. To the extent there is no
evidence that it is probable that some or all of the
facility will be drawn down, the fee is capitalised as
a prepayment for liquidity services and amortised
over the period of the facility to which it relates.

Borrowings are removed from the Balance Sheet
when the obligation specified in the contract is
discharged, cancelled or expired.

Borrowings are classified as current liabilities unless
the Company has an unconditional right to defer
settlement of liability for at least 12 months after
the reporting period.

5.8 Cash and Cash Equivalents

For the purpose of presentation in the Cash Flow
Statement, cash and cash equivalents includes
cash on hand, deposits held with banks / financial
institutions with original maturities of three
months or less that are readily convertible to
known amounts of cash and which are subject
to an insignificant risk of changes in value. Bank
overdrafts are shown within borrowings in current
liabilities in the balance sheet.

5.9 Revenue Recognition

The Company has applied five step model as per

Ind AS 115 'Revenue from contracts with customers'
to recognise revenue in the financial statements.
The Company satisfies a performance obligation
and recognises revenue over time, if one of the
following criteria is met:

a) The customer simultaneously receives and
consumes the benefits provided by the
Company's performance as the Company
performs; or

b) The Company's performance creates or enhances
an asset that the customer controls as the asset is
created or enhanced; or

c) The Company's performance does not create
an asset with an alternative use to the Company
and the entity has an enforceable right to
payment for performance completed to date.

For performance obligations where one of the above
conditions are not met, revenue is recognised at the
point in time at which the performance obligation
is satisfied.

Revenue is recognised either at point of time and
over a period of time based on various conditions
as included in the contracts with customers.

Revenue is measured at transaction price (net of
variable consideration, if any). The transaction
price is the consideration received or receivable
and is reduced by rebates, allowances and taxes
and duties collected on behalf of the government.
Revenue also includes adjustments made towards
liquidated damages, normal product warranty and
price variations wherever applicable.

Revenue is recognised in the income statement to
the extent that it is probable that the economic
benefits will flow to the Company and the revenue
and costs, if applicable, can be measured reliably.

In respect of contract wherein revenue is recognised
over time, revenue and costs are recognised by
reference to the stage of completion of the contract
activity at the end of the reporting period, measured
based on the proportion of contract costs incurred
for work performed to date relative to the estimated
total contract costs. Profit (contract revenue less
contract cost) is recognised when the outcome of
the contract can be estimated reliably.

When it is probable that the total cost will exceed
the total revenue from the contract, the expected
loss is recognised immediately. For this purpose,
total contract costs are ascertained on the basis of
contract costs incurred and cost to completion of
contracts which is arrived at by the management
based on current technical data, forecast and
estimate of net expenditure to be incurred in future
including for contingencies etc.

The outcome of a construction contract is
considered as estimated reliably when (a) all
approvals necessary for commencement of the
project have been obtained; (b) the stage of
completion of the project reaches reasonable
level of development. The stage of completion is
determined as a proportion that contract costs
incurred for work performed up to the closing
date bear to the estimated total costs of respective
project. Profit (contract revenue less contract cost)
is recognised when the outcome of the contract
can be estimated reliably. When it is probable
that the total cost will exceed the total revenue
from the contract, the expected loss is recognised
immediately. For this purpose total contract costs
are ascertained on the basis of contract costs
incurred and cost to completion of contracts
which is arrived at by the Management based on
current technical data, forecast and estimate of net
expenditure to be incurred in future including for
contingencies etc. For determining the expected
cost to completion of the contracts, cost of steel,
labour and other related items are considered at
current market price based on fixed cost purchase
orders placed or firm commitments received from
suppliers / contractors as these purchase orders
and future firm commitments are enforceable over
the period of the contracts.

When the outcome of a construction contract
cannot be estimated reliably, contract revenue is
recognised to the extent of contract costs incurred
that is probably recoverable. Contract costs are
recognised as expenses in the period in which they
are incurred.

When contract costs incurred to date plus recognised
profit less recognised losses exceed progress
billing, the surplus is shown as unbilled revenue. For

contracts where progress billings exceed contract
costs incurred to date plus recognised profits less
recognised losses, the surplus is shown as liability as
advance from customer. Amounts received before
the related work is performed are included as a
liability as advance from customer. Amounts billed
for work performed but not yet paid by customer
are included under trade receivables.

Contract assets are recognised when there is excess
of revenue earned over billings on contracts.
Contract assets are classified as unbilled revenue
when there is unconditional right to receive
cash, and only passage of time is required, as per
contractual terms.

Contract liabilities are recognised when there is
billing in excess of revenue and advance received
from customers.

Generally, 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 or
services to the customer and when the customer
pays for that goods or services will be one year or
less. The Company adjusts the promised amount
of consideration if the contract contains significant
financing component.

5.10 Foreign Currency Transactions and Translation

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. The exchange differences arising
from settlement of foreign currency transactions
and from the year-end restatement are recognised
in statement of profit and loss.

Non-monetary items that are measured at fair
value in a foreign currency are translated using the
exchange rates at the date when the fair value was
determined. Translation differences on assets and
liabilities carried at fair value are reported as part of
the fair value gain or loss.

5.11 Employee Benefits

(i) Short-Term Employee Benefits

Liabilities for short-term employee benefits
that are expected to be settled wholly within
12 months after the end of the period in which
the employees render the related service 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 settled.

(ii) Post-Employment Benefits
Defined Benefit Plans

The liability recognised in the Balance Sheet in
respect of defined benefit plans is the present
value of the defined benefit obligation at the
end of the reporting period less the fair value
of plan assets. The defined benefit obligation
is calculated annually by actuaries using the
projected unit credit method.

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

The net interest cost is calculated by applying
the discount rate to the net balance of the
defined benefit obligation and the fair value of
plan assets. This cost is included in 'Employee
Benefits Expense' 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. These are included
in 'Retained Earnings' in the Statement of
Changes in Equity.

Defined Contribution Plans

Contributions under defined contribution
plans payable in keeping with the related
schemes are recognised as expenses for the
period in which the employee has rendered
the service.

(iii) Other Long-Term Employee Benefits

Long-term compensated absences are
provided for based on actuarial valuation,
as per projected unit credit method, done at
the end of each financial year. Accumulated
leave, which is expected to be utilised
within the next twelve 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.
Remeasurements as a result of experience
adjustments and changes in actuarial
assumptions are recognised in profit or loss.

(iv) Termination Benefits

Termination benefits, in the nature of
voluntary retirement benefits, are recognised
as expense in the Statement of Profit and
Loss if the Company has made an offer
encouraging voluntary redundancy, it is
probable that the offer will be accepted, and
the number of acceptances can be estimated
reliably. Benefits falling due more than 12
months after the end of the reporting period
are discounted to their present value.

5.12 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
adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences,
unused tax credits and to unused tax losses.

The current tax charge is calculated on the basis
of the tax laws enacted or substantively enacted
at the end of the reporting period. 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 paid to the tax
authorities.

Deferred tax is provided in full, using the liability
method, on temporary differences arising between