1. General information

Tracxn Technologies Limited (the ""Company"") was
incorporated as a private limited Company on 11
August 2012 under the provisions of the
Companies Act 1956. The Company converted
from a Private Limited Company to a Public Limited
Company, pursuant to a special resolution passed
in the extraordinary general meeting of the
shareholders of the Company held on 7 July 2021
and consequently the name of the Company has
been changed to "Tracxn Technologies Limited"
pursuant to a fresh certificate of incorporation
dated 28 July 2021 issued by the Registrar of
Companies.

The Company offers a market intelligence platform
'Tracxn' on a subscription basis to global customer
base; to provide comprehensive private company
data for deal sourcing, M&A opportunities, deal
diligence, private market analysis and tracking
emerging themes.

2. Basis of preparation

i) Compliance with Indian Accounting Standards
(Ind AS)

The financial statements comply in all material
aspects with Indian Accounting Standards
(hereinafter referred to as the 'Ind AS') as notified
under Section 133 of the Companies Act, 2013 ('the
Act') [Companies (Indian Accounting standards)
Rules, 2015, as amended] and other related
provisions of the Act.

ii) Historical cost convention

The Financial Statements have been prepared on a
historical cost basis, except for the following:

a) Certain financial assets and liabilities that
are to be measured at fair value; and

b) Employee share based payments

iii) New and amended standards adopted

The Ministry of Corporate Affairs vide notification
dated 9 September 2024 and 28 September 2024
notified the Companies (Indian Accounting
Standards) Second Amendment Rules, 2024 and
Companies (Indian Accounting Standards) Third
Amendment Rules, 2024, respectively, which
amended/ notified certain accounting standards
(see below), and are effective for annual reporting
periods beginning on or after 1 April 2024:

• Insurance contracts - Ind AS 117; and

• Lease Liability in Sale and Leaseback -
Amendments to Ind AS 116

These amendments did not have any material
impact on the amounts recognised in prior periods
and are not expected to significantly affect the
current or future periods.

iv) Standard issued but not yet effective

MCA notifies new standards or amendments to the
existing standards under Companies (Indian
Accounting Standards) Rules as issued from time
to time. For the year ended March 31, 2025, MCA
has not notified any new standards or amendments
to the existing standards which are applicable to
the Company

v) Operating Cycle

Based on the nature of products/activities of the
Company and the normal time between acquisition
of assets and their realization in cash or cash
equivalents, the Company has determined its
operating cycle as 12 months for the purpose of
classification of its assets and liabilities as current
and non-current.

3. Critical estimates and judgments

The preparation of these financial statements
requires the use of accounting estimates which
could differ from the actual results. Management
also needs to exercise judgment in applying the
Company's accounting policies. This note provides
an overview of the areas that involved higher degree
of judgment or complexity and of 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 and
judgments is included in the relevant notes together
with information about the basis of calculation for
each affected line item in the financial statements.

Estimates and judgments are continually evaluated.
They are based on historical data and experience
and other factors, including expectations of future
events that may have a financial impact on the
Company and that are believed to be reasonable
under the circumstances.

The areas involving critical estimates and
judgments are:

i. Defined benefit obligations - Refer Note 12

ii. Recognition and measurement of deferred
tax - Refer Note 8

iii. Impairment of trade receivables - Refer
Note 22A

6. Financial Assets

Accounting Policies

I. Classification of financial assets at amortised cost:

The Company classifies its financial assets at amortised cost only if the following criteria are met:

• The asset is held within a business model whose objective is to collect the contractual cash
flows, and

• The contractual terms give rise to cashflows that are solely payments of principal and interest.
Financial assets classified at amortised cost comprise of trade receivables and other financial assets

II. Classification of financial assets at fair value through profit and loss:

The Company classifies investments in mutual funds at fair value through profit and loss.

See note 33.5 and 33.6 for the other accounting policies relevant to Financial Assets.

6(b) Trade Receivables

Accounting Policies

Trade receivables are amounts due from customers for services rendered in the ordinary course of business and
reflects company's unconditional right to consideration (that is, payment is due only on the passage of time).
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.

The Company classifies the right to consideration in exchange for deliverables as either a receivable or as unbilled
revenue. A receivable is a right to consideration that is conditional only upon passage of time. Revenue in excess
of billings is recorded as unbilled revenue and is classified as a financial asset as only the passage of time is
required before the payment is due.

8. Deferred Tax Asset (net)

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the Financial Statements. Deferred income tax
is determined using tax rates and laws that have been enacted or substantially enacted by the end of the reporting
period and are expected to apply when the related deferred income tax asset is realised or the deferred income
tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses, if any, and
only if it is probable that future taxable amounts will be available to utilize those temporary differences and
losses.

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 realize the asset and settle the liability simultaneously.

Current and deferred tax are recognised in Statement of Profit and Loss, except to the extent that it relates to
items recognised in other comprehensive income or directly in equity; in which case, tax is also recognised in
other comprehensive income or directly in equity, respectively.

Notes:

1. The deferred tax balance above has been arrived at by applying the tax rate of 25.168% being the rate
substantively enacted as at 31 March 2025 and 31 March 2024.

2. The Company has recognised DTA of INR 600.21 lakhs on business losses carried forward from the earlier
years in the income tax return to the extent it is recoverable based on the Company's projected probable
taxable profits in the forthcoming years. Based on such projections, during the current year the Company
has reversed INR 1,448.67 lakhs of DTA created on the carried forward business losses. The methodology
used by the Company for the projections is largely in line with the methodology used in the previous year.

3. The key assumption used in such business plans and budgets pertains to revenue growth rate, any
decrease in this growth rate by 10 basis points, will lead to a deduction in deferred tax asset by INR 25.98
Lakhs, any increase in growth rate by 10 basis points will lead to an increase in retention of deferred tax
asset by 26.03 Lakhs.

111. Rights, preferences and restrictions attached to shares:

Equity Shares:

The Company has one class of equity shares having par value of INR 1.00 per share. Each holder of equity share
is entitled for one vote per share held.

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company,
after distribution of all preferential amounts, in proportion to their shareholding.

Each equity shareholder is entitled to dividend as and when proposed by the Board of Directors, subject to
approval of shareholders (except in the case of interim dividend) at the ensuing annual general meeting.

Nature and Purpose of Reserves:

Securities Premium Account

Securities premium is used to record the premium received on issue of shares in excess to the face value of the
shares. The reserve is utilised in accordance with the provisions of the Act.

Employee Stock Option Reserve

The reserve is used to recognise the grant date fair value, net of exercise price, issued to employees under 'Tracxn
Employee Stock Option Plans'. Refer Note 24 for more details

Share Application Money

This represents the amount received by the company towards exercise of employee stock options pending
allotment.

ii) Post-Employment Obligations
a) Gratuity

The Company provides for gratuity, a defined benefit plan covering eligible employees in accordance with the
Payment of Gratuity (Amendment) Act, 2018. The Gratuity Plan provides a lump sum payment to vested
employees at retirement, death, incapacitation or termination of employment, of an amount based on the
respective employee's salary and the tenure of employment.

The liability or asset recognised in the Balance Sheet in respect of defined benefit gratuity 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 at the end of the reporting period by an independent actuary 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 benefit expense in the Statement of Profit and
Loss.

Note :-

During the year, the Company has registered a trust to fund its gratuity obligation. The amount above represents

Company's best estimate of contribution next financial year.

Risk Exposure

Through its defined benefit plan, the Company is exposed to a number of risks. The most significant risks are:

(i) Interest rate risk: The defined benefit obligation calculated uses a discount rate based on 5 year (2024: 5
year) government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

(ii) Salary inflation risk: Higher than expected increases in salary will increase the defined benefit obligation.

(iii) Demographic risk: This is the risk of variability of results due to factors like mortality, withdrawal, disability
and retirement. The effect of these on the defined benefit obligation is not linear and depends upon the
combination of salary increase, discount rate and attrition rate

Sensitivity Analysis

The sensitivity of the defined benefit obligation (DBO) to changes in the principal assumptions is as under (as

per the actuarial report):

b) Defined Contribution Schemes

Contributions are made to recognized government provident funds and Employee State Insurance Scheme in
India for employees at a specified percentage of wages as per the regulations. The contributions payable to these
plans by the Company are administered by the Government. The obligation of the Company is limited to the
amount contributed and it has no further contractual nor any constructive obligation. The Company recognised
INR 161.68 (2024: INR 180.45) for Provident Fund contributions, INR 0.86 (2024: INR 6.75) for Employee State
Insurance Scheme contributions and INR 0.27 (2024: INR 0.29) for Labour welfare fund contributions in the
Statement of Profit and Loss.

15. Revenue from Operations

Accounting Policies

i) Sale of Services

The Company receives subscription revenue to its online platform www.tracxn.com for a given duration
(rendering of services).

Revenue from contracts with customers is recognized when services are rendered to the customer at an amount,
net of goods and services tax, that reflects the consideration entitled in exchange for those services and when
no significant uncertainty exists regarding the amount of the consideration that will be derived from rendering
the service. The Company recognizes subscription revenues over time wherein the customer simultaneously
receives and consumes the benefits provided by the Company. The progress is measured using the output
method which measures revenue by comparing 'time elapsed' to the 'total subscription period'

The invoicing for the services is done upfront for the duration of the subscription with a general credit term of
10-30 days, which is consistent with market practice. The Company does not adjust the transaction prices for
any time value of money as the transfer of the promised services to the customer and payment by the customer
does not generally exceed one year.

ii) Refund Liabilities

The Company recognises a refund liability for the revenue recognized but likely to be cancelled in the subsequent
period. The company estimates the expected cancellations based on acknowledgements from customers or
platform usage data.

iii) Contract Liabilities

A contract liability is the obligation to provide services to a customer, for such future periods for which the
Company has received consideration (or an amount of consideration is due) from the customer. Contract
liabilities are recognised as revenue with the passage of time; when the Company provides services under the
contract. Refer Note 13.

B. Fair Value Hierarchy:

This section explains the judgements and
estimates made in determining the fair values of
the financial instruments that are (a) recognised
and measured at fair value and (b) measured at
amortised cost and for which fair values are
disclosed in the financial statements. To provide
an indication about the reliability of the inputs
used in determining fair value, the Company has
classified its financial instruments into 3
levels/hierarchy prescribed under the accounting
standard.

Level 1: Level 1 hierarchy includes financial
instruments measured using quoted prices. This
includes mutual funds that have quoted price. The
mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments
that are not traded in an active market is
determined using valuation techniques which
maximize the use of observable market data and
rely as little as possible on entity-specific
estimates. If all significant inputs required to fair
value an instrument are observable, the
instrument is included in level 2.

Level 3: If one or more of the significant inputs is
not based on observable market data, the
instrument is included in level 3.

There are no transfers between the levels during
the year.

C. Valuation Process:

The Company performs the valuation of financial
assets and liabilities required for financial
reporting purposes, including those classified
under Level 3 of the fair value hierarchy. These
valuations are performed by the finance
department, which operates under established
governance protocols and reports directly to the
Chief Financial Officer. The valuation process is
designed to ensure that fair value measurements
are consistently applied in accordance with
applicable accounting standards.

D. Valuation Techniques:

For Level 1 and Level 2 financial instruments, the
Company uses observable market data, historical
trends, and internal estimates to determine fair
value.

The fair value of investments in mutual fund units
is based on the net asset value ('NAV') as stated
by the issuers of these mutual fund units in the
published statements as at each reported
balance sheet date. NAV represents the price at
which the issuer will issue further units of mutual
fund and the price at which issuers will redeem
such units from the investors.

For Level 3 instruments measured at amortised
cost, the carrying amounts of trade receivables,
trade payables, cash and cash equivalents, other
financial assets and other financial liabilities are
considered to be the same as their fair values due
to their short term nature. For financial assets and
liabilities that are measured at fair value, the
carrying amounts are equal to the fair values.

The loss allowances for financial assets are based on assumptions about risk of default and expected loss rates.
The Company uses judgement in making these assumption and selecting the inputs to the impairment
calculations, based on the Company's past history and existing market conditions as well as forward- looking
estimates at the end of each reporting period.

The Company is also exposed to credit risk in respect of cash and cash equivalents, deposits with banks and
investment in mutual funds. As a policy, the Company places its cash and cash equivalents and deposits with
well established banks and financial institutions. Management has evaluated and determined expected credit
loss for cash and cash equivalents, deposits with banks, security deposits and other financial assets to be
insignificant.

B. Liquidity Risk

Liquidity risk is a risk that the Company may not be able to meet its financial obligations associated with its
financial liabilities on a timely basis through:

a) Primary source - cash and cash equivalents i.e. cash generated from operations,

b) Secondary source - mutual fund investments and bank deposits (liquid investments realisable in short
term).

A material and sustained shortfall in cash flows generated from operation could expose the company to liquidity
risk. The company manages the liquidity risk by monitoring rolling cash flow forecasts and maturity profiles of
its financial assets and liabilities.

i) Maturities of Financial Liabilities

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months
are equal to the carrying balances as the impact of discounting is not significant.

ii) Market Price Risk

a) Exposure

The Company's exposure to price risk arises from investments held by the Company and classified in the
Balance Sheet at fair value through profit or loss. To manage its price risk arising from investments in debt
mutual funds, the Company diversifies its portfolio across liquid and arbitrage funds and also across
different Asset Management Companies.

b) Sensitivity

The table below summarizes the impact of increase/decrease of the index on the company's equity and
profit for the year. The analysis is based on the assumption that the NAV increases by 5% or decreases by
5% with all other variables held constant.

24. Employee Stock Option Expense

Tracxn Employee Stock Option Plan 2016 ("ESOP 2016" or "the Plan"): The Board vide its resolution dated 3
October 2016 approved ESOP 2016 for granting Employee Stock Options in the form of Equity Shares linked to
the completion of a minimum period of continued employment to the eligible employees of the Company. The
eligible employees for the purpose of ESOP 2016 will be determined by the Board of Directors. Pursuant to the
Extraordinary General Meeting held on 5 October 2016, the Board of Directors have been authorized to introduce,
offer, issue and allot options to eligible employees of the Company under the ESOP 2016. The maximum number
of shares under this Plan shall not exceed 1,21,52,582 shares. These Options shall vest not less than one year
and not more than 4 years from the date of grant of such Options.

Tracxn Employee Stock Option Plan 2024 ("ESOP 2024" or "the Plan"): The Board vide its resolution dated 8
November 2024 approved ESOP 2024 for granting Employee Stock Options in the form of Equity Shares linked to
the completion of a minimum period of continued employment to the eligible employees of the Company. The
eligible employees for the purpose of ESOP 2024 will be determined by the Board of Directors. The Board of
Directors have been authorized to introduce, offer, issue and allot options to eligible employees of the Company
under the ESOP 2024. The maximum number of shares under this Plan shall not exceed 30,00,000 shares. These
Options shall vest not less than one year and not more than 5 years from the date of grant of such Options.

Set out below is a summary of options granted under the ESOP 2016 plan:

Notes:

1. The Company did not have any debt outstanding as at 31 March 2025 and 31 March 2024. Accordingly, the
debt-equity ratio and the debt service coverage ratio have not been disclosed.

2. The business model of the company is services oriented hence there is no inventory. Accordingly the
inventory turnover ratio is not applicable.

3. In the current year, profit after tax was lower compared to previous year largely due to reversal of deferred
tax asset created on brought forward losses.

4. Increase due to significant improvement in outstanding receivables

5. Increase in this ratio is due to improvement in payment cycles in FY 25

6. In the current year, profit after tax was lower compared to previous year primarily due to reversal of deferred
tax asset created on brought forward losses.

7. Decreased due to lower Profit before tax on account of higher increase in expenses than income

31. Leases

The Company has taken office premises on lease. Rental contracts are typically made for 1 to 3 years, and
extendable for further periods upon mutual agreement. The notice period for such leases is 2-3 months where
either party can terminate the lease without any significant penalty or loss. Extension options have not been
included in the lease term as exercising this option is currently not reasonably certain. Accordingly, the Company
has elected to treat such leases as short term leases and taken an exemption from recognition of right-of-use
assets and related lease liabilities in accordance with Ind AS 116.

33. Other Accounting Policies

Other than the material accounting policies given earlier, this note provides a list of other accounting policies
adopted in the preparation of these financial statements. These accounting policies have been consistently
applied to all the years presented, unless otherwise stated.

33.1. Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to
the chief operating decision maker(s).

Refer Note 25 for segment information presented.

33.2. Foreign Currency Translation

i) Functional and Presentation Currency

Items included in the Financial Statements of the
Company are measured using the currency of the
primary economic environment in which the
Company operates ('the functional currency').
The Financial Statements are presented in Indian
Rupee (INR), which is the Company's functional
and presentation currency.

ii) Transactions and Balances

Foreign currency transactions are translated into
the functional currency using the exchange rates
at the dates of the transactions. Foreign
exchange gains and losses resulting from the
settlement of such transactions and from the
translation of monetary assets and liabilities
denominated in foreign currencies at year end
exchange rates are recognised in the Statement
of Profit and Loss on a net basis within other
gains/ (losses).

33.3. Income Tax

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
and to unused tax losses, if any.

The current income 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 and considers whether it is
probable that a taxation authority will accept an
uncertain tax treatment. The Company measures
its tax balances either based on the most likely
amount or the expected value, depending on
which method provides a better prediction of the
resolution of the uncertainty.

33.4. Leases

Leases are recognised as a Right-of-use asset
and a corresponding liability at the date at which
the leased asset is available for use by the
company.

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 payments:

• fixed payments (including in substance fixed
payments), less any incentives receivable

• variable lease payments that are based on
an index or a rate, initially measured using
the index or rate as at the commencement
date

• amounts expected to be payable by the
company under residual value guarantees

• the exercise price of a purchase option if the
company is reasonably certain to exercise
that option, and

• payments of penalties for terminating the
lease, if the lease term reflects the company
exercising that option.

Extension and termination options are included in
many of the leases. In determining the lease term
the management considers all facts and
circumstances that create an economic incentive
to exercise an extension option, or not exercise a
termination option. Lease payments to be made
under reasonably certain extension options are
also included in the measurement of the liability.
The lease payments are discounted using the
company's incremental borrowing rate, which is
the rate that the Company would have to pay to
borrow the funds necessary to obtain an asset of
similar value to the right-of-use asset in a similar
economic environment with similar terms,
security and conditions.

If a readily observable amortising loan rate is
available to the Company (through recent
financing or market data) which has a similar
payment profile to the lease, then that rate is used
as the incremental borrowing rate.

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.

Lease payments that represent payments based
on actual utilisation of common facilities of the
leased asset are recognised in the Statement of
Profit and Loss as and when they are incurred.

Right-of-use assets are measured at cost
comprising the following:

• the amount of initial measurement of lease
liability

• any lease payments made on or before the
commencement date less any lease
incentives received

• any initial direct costs, and

C. Subsequent Measurement

i) At Amortised Cost

Assets that are held for collection of contractual
cash flows where those cash flows represent
solely payments of principal and interest are
measured at amortised cost. Interest income
from these financial assets is included in the
statement of profit and loss using the effective
interest rate method. Any gain or loss arising on
derecognition is recognised directly in the
statement of profit and loss. Impairment losses
are presented in the statement of profit and loss.

ii) Fair Value through Other Comprehensive Income
(FVOCI)

Assets that are held for collection of contractual
cash flows and for selling the financial assets,
where the assets' cash flow represent solely
payments of principal and interest, are measured
at fair value through other comprehensive income
(FVOCI). Movements in the carrying amount are
taken through OCI, except for the recognition of
impairment gains or losses, interest revenue and
foreign exchange gains and losses which are
recognized in profit and loss. When the financial
asset is derecognized, the cumulative gain or loss
previously recognized in OCI is reclassified from
equity to the statement of profit and loss and
recognised under other income/ other expenses.
Interest income from these financial assets is
included in other income using the effective
interest rate method.

iii) Fair Value through Profit and Loss (FVPL)

Assets that do not meet the criteria for amortized
cost or FVOCI are measured at fair value through
profit or loss. A gain or loss on a debt investment
that is subsequently measured at fair value
through profit or loss and is not part of a hedging
relationship is recognized in profit or loss and
presented net in the statement of profit and loss
in the period in which it arises. Interest income
from these financial assets is included in other
income.

D. Impairment of Financial Assets

The Company recognizes a loss allowance for
expected credit losses on financial assets that are
measured at amortised cost. The credit loss is
difference between all contractual cash flows that
are due to an entity 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 effective interest rate.
This is assessed on an individual or collective
basis after considering all reasonable and
supportable information including that which is
forward-looking.

The losses arising from impairment are
recognized in the Statement of Profit and Loss.

E. Derecognition

A financial asset is derecognized 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 derecognized. Where the entity has not
transferred substantially all risks and rewards of
ownership of the financial asset, the financial
asset is not derecognized. 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
derecognized 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 recognized to the extent of
continuing involvement in the financial asset.

F. Interest Income

Interest income is recognised using effective
interest 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.

33.7. Cash and Cash Equivalents

For the purpose of presentation in the statement
of cash flows, cash and cash equivalents include
cash on hand, deposits held at call with financial
institutions, other short-term, highly liquid
investments (exluding investment in debt mutual
funds e.g. liquid funds which are shown
separately as Investments) 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.

33.8. Financial Liabilities

A. Classification

Financial liability and equity instruments issued
by a Company are classified as either financial
liabilities or as equity in accordance with the
substance of the contractual arrangements and
the definitions of a financial liability and an equity
instrument.

B. Subsequent Measurement

Financial liabilities are subsequently measured at
amortised cost using the effective interest rate
method unless at initial recognition, they are
classified as fair value through profit or loss.

C. Derecognition

A financial liability is derecognized when the
obligation specified in the contract is discharged,
cancelled or expires.

33.9. Trade and Other Payables

These amounts represent liabilities for goods and
services provided to the Company prior to the end
of financial year, which are unpaid. The amounts
are unsecured and are usually paid within the
credit period. Trade and other payables are
presented as current liabilities unless payment is
not due within twelve months after the reporting
period. They are recognised initially at their fair
value and subsequently measured 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.

33.10. Property, Plant and Equipment

Historical cost includes expenditure that is
directly attributable to the acquisition of the
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 assets' residual value and useful life are
reviewed, and adjusted if appropriate, at the end
of each reporting period. An asset's carrying
amount is written down immediately to
recoverable amount if the asset's carrying amount
is greater than its estimated recoverable amount.
Gains and iosses on disposals are determined by
companng proceeds with carrying amount. These
are included in the Statement of Profit and Loss
within Other gains/ (losses).

33.11. Intangible Assets
Software:

Operating software is capitalised along with the
related fixed assets. Costs associated with
maintaining the software are recognised as an
expense as incurred. Development costs that are

directly attributable to the design and testing of
identifiable and unique software products
controlled by the company are recognised as
intangible assets where the following criteria are
met:

• it is technically feasible to complete the
software so that it will be available for use

• management intends to complete the
software and use or sell it

• there is an ability to use or sell the software

• it can be demonstrated how the software
will generate probable future economic
benefits

• adequate technical, financial and other
resources to complete the development and
to use or sell the software are available, and

• the expenditure attributable to the software
during its development can be reliably
measured.

Amortisation methods and periods:

The Company amortizes software with a finite
useful life using the straight line method over
three years and the useful life is reviewed at end
of each reporting period, and adjusted if
appropriate. The amortisation method and the
estimated useful life of intangible assets are
reviewed at each reporting period.

33.12. 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.
Intangible assets under development are tested
for impairment on an annual basis. An
impairment loss is recognized 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 groups of assets (cash-generating
units). Non-financial assets that have suffered an
impairment are reviewed for possible reversal of
the impairment at the end of each reporting
period.