3. MATERIAL ACCOUNTING POLICIES

A. Revenue from contracts with customers

Revenue is measured based on the consideration
specified in a contract with a customer. The Company
recognises revenue when it transfers control over a
good or service to a customer.

i) Diagnostic services

Revenue from diagnostics services is amount billed net
of indirect taxes, reversals and discounts/concessions
if any. No element of financing is deemed present as
the sales are made primarily on cash and carry basis,
however for institutional/organizational customers
billing is done fortnightly/monthly based on the
agreement, which is consistent with market practice.

Revenue is recognized at an amount that reflects the
consideration to which the Company expects to be
entitled in exchange for transferring the goods or
services to a customer i.e. on transfer of control of
the service to the customer i.e., when the underlying
tests are conducted, samples are processed for
requisitioned diagnostic tests. Each service is
generally a separate performance obligation and
therefore revenue is recognised at a point in time when
the tests are conducted, samples are processed. For
multiple tests, the Company measures the revenue in
respect of each performance obligation at its relative
stand alone selling price and the transaction price
is allocated accordingly. The price that is regularly
charged for a test separately registered is considered
to be the best evidence of its stand alone selling.
Revenue contracts are on principal to principal basis
and the Company is primarily responsible for fulfilling
the performance obligation.

A contract liability is the obligation to transfer services
to a customer for which the Company has received
consideration from the customer. If a customer pays
consideration before the Company transfer services
to the customer, a contract liability is recognised
when the payment is made. Contract liabilities are
recognised as revenue when the Company performs
under the contract.

Revenues in excess of invoicing are classified as contract
assets (referred to as 'unbilled revenue') while invoicing
in excess of revenues are classified as contract liabilities
(referred to as 'unearned revenue').

ii) Sale of Privilege cards

The Company operates a discount scheme where
certain 'Privilege cards' are sold to the customers
against which specified discounts are given on the
future diagnostic services availed by the customer for
a specified period. The Company recognises revenue
from the sale of such cards over the period for which
the card is valid. The difference in sale consideration
received and revenue recognised is recognised as
deferred revenue.

B. Recognition of dividend income, interest
income or expense and rental income

Dividend income

Dividend are recognised in statement of profit and loss
on the date on which the Company’s right to receive
payment is established.

Interest income or expense

Interest income or expense is recognized using the
effective interest method.

The effective interest rate' is the rate that exactly
discounts estimated future cash payments are

receipts through the expected life of the financial
instrument to:

- the gross carrying amount of the financial asset; or

- the amortised cost of the financial liability.

In calculating interest income and expense, the effective
interest rate is applied to the gross carrying amount of
the asset (when the asset is not credit-impaired) or to
the amortised cost of the liability. However, for financial
assets that have become credit-impaired subsequent
to initial recognition, interest income is calculated by
applying the effective interest rate to the amortised
cost of the financial asset. If the asset is no longer
credit-impaied, then the calculation of interest income
reverts to the gross basis.

Rental income

Rental income from investment property is recognised
as part of Other income in statement profit and loss
on the date on which the Company's right to receive
payment is established.

C. Financial instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and financial liability or
equity instrument of another entity.

i) Initial recognition and measurement

Trade receivables issued are initially recognised when
they are originated. All other financial assets or financial
liabilities are initially recognised when the Company
becomes a party to the contractual provision of the
instrument.

A financial asset (unless it is a trade receivable without
a significant financing component) or financial liability
is initially measured at fair value plus or minus, for an
item not at fair value through profit and loss (FVTPL),
transaction costs that are directly attributable to its
acquisition or issue.

The average credit period from these services provided
to customers is 0 to 60 days. No interest is charged
on the trade receivables for the amount over due
above the credit period. A trade receivable without a
significant financing component is initially measured
at the transaction price.

ii) Classification and subsequent measurement
Financial assets

All financial assets are initially measured at fair value
plus, for an item not at fair value through profit and loss
(FVTPL), transaction costs that are directly attributable
to its acquisition or issue.

On initial recognition, a financial asset is classified as
measured at:

- Amortised cost;

- Fair Value through Other Comprehensive Income
(FVOCI) - equity investment; or

- Fair Value through Profit or Loss (FVTPL).

Financial assets are not reclassified subsequent to
their initial recognition, except if and in the period the
Company changes its business model for managing
financial assets, in which case all affected financial
assets are reclassified on the first day of the first
reporting period following the change in the business
model.

A financial asset is measured at amortised cost if it
meets both of the following conditions and is not
designated as at FVTPL:

- Its held within a business model whose objective is
to hold assets to collect contractual cash flows; and

- Its contractual terms of the financial asset give
rise on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding.

On initial recognition of an equity investment that is
not held for trading, the Company may irrevocably
elect to present subsequent changes in the
investment’s fair value in OCI (designated as FVOCI

- equity investment). This election is made on an
investment-by-investment basis.

All financial assets not classified as measured at
amortised cost or FVOCI as described above are
measured at FVTPL. On initial recognition, the
Company may irrevocably designate a financial asset
that otherwise meets the requirements to be measured
at amortised cost or at FVOCI as at FVTPL if doing so
eliminates or significantly reduces an accounting
mismatch that would otherwise arise.

Subsequent measurement

Financial assets at FVTPL: These assets are
subsequently measured at fair value. Net gains and
losses, including any interest or dividend income, are
recognised in profit or loss.

Financial assets at amortised cost: These assets
are subsequently measured at amortised cost using
the effective interest method. The amortised cost
is reduced by impairment losses. Interest income,
foreign exchange gains and losses and impairment
are recognised in profit or loss. Any gain or loss on
derecognition is recognised in profit or loss.

Equity investments at FVOCI: These assets are
subsequently measured at fair value. Dividends are
recognised as income in profit or loss unless the
dividend clearly represents a recovery of part of the
cost of the investment. Other net gains and losses
are recognised in OCI and are not reclassified to
profit or loss.

Financial liabilities

Financial liabilities are classified as measured at
amortised cost or FVTPL. A financial liability is classified
as at FVTPL if it is classified as held-for-trading, or
it is a derivative or it is designated as such on initial
recognition. Financial liabilities at FVTPL are measured
at fair value and net gains and losses, including any
interest expense, are recognised in statement of profit
or loss. Other financial liabilities are subsequently
measured at amortised cost using the effective interest
method. Interest expense and foreign exchange gains
and losses are recognised in statement of profit or loss.

iii) Derecognition
Financial assets

The Company derecognises a financial asset when:

- the contractual rights to the cash flows from the
financial asset expire; or

- it transfers the rights to receive the contractual
cash flows in a transaction in which either:

• substantially all of the risks and rewards
of ownership of the financial asset are
transferred; or

• the Company neither transfers nor retains
substantially all of the risks and rewards of
ownership and it does not retain control of the
financial asset.

If the Company enters into transactions whereby it
transfers assets recognised on its balance sheet, but
retains either all or substantially all of the risks and
rewards of the transferred assets in these cases, the
transferred assets are not derecognised.

Financial liabilities

The Company derecognises a financial liability when
its contractual obligations are discharged or cancelled,
or expired.

The Company also derecognises a financial liability
when its terms are modified and the cash flows under
the modified terms are substantially different. In this
case, a new financial liability based on the modified
terms is recognised at fair value. On derecognition of
a financial liability, the difference between the carrying
amount extinguished and the consideration paid

(including any non-cash assets transferred or liabilites
assumed) is recognised in profit or loss.

iv) Offsetting

Financial assets and financial liabilities are offset and
the net amount presented in the balance sheet when,
and only when, the Company currently has a legally
enforceable right to set off the amounts and it intends
either to settle them on a net basis or to realise the
asset and settle the liability simultaneously.

D. Property, plant and equipment

i) Recognition and measurement

The cost of an item of property, plant and equipment
shall be recognised as an asset if, and only if it is
probable that future economic benefit associated with
the item will flow to the Company and the cost of the
item can be measured reliably. Items of property, plant
and equipment (including capital-work-in-progress)
are measured at cost, which includes capitalised
borrowing costs, less accumulated depreciation and
any accumulated impairment losses. Freehold land
is carried at historical cost less any accumulated
impairment losses.

Cost of an item of property, plant and equipment
comprises its purchase price, including non-refundable
purchase taxes, after deducting trade discounts and
rebates, any directly attributable cost of bringing the
items to its working conditions for its intended use
and estimated costs of dismantaling and removing the
item and restoring the site on which it is located.

The cost of a self-constructed item of property, plant
and equipment comprises the cost of materials and
direct labour, any other costs directly attributable to
bringing the item to working condition for its intended
use, and estimated costs of dismantling and removing
the item and restoring the site on which it is located.

Any gain or loss on disposal of an item of property, plant
and equipment is recognised in profit or loss.

An item of of property, plant and equipmnet is
derecognised upon disposal or when no future
economic benefits are expecteed to arise from the
continued use of asset.

The net written down value as at April 01, 2016
has been considered as the gross carrying amount
recognised as per the previous GAAP (Deemed cost) as
at the date of transision to Ind AS.

Subsequent expenditure is capitalized only if it is
probable that the future economic benefits associated
with the expenditure will flow to the Company and the
cost of the item can be measured reliably.

ii) Depreciation

Depreciation is recognised so as to write off the cost
of assets (other than freehold land) less their residual
values over their useful lives. The Company has charged
depreciation on property, plant and equipment (PPE)
based on Written Down Value ("WDV") method upto 31
December 2022. With effect from 01 January 2023,
the Company has changed its method of depreciation
from WDV to Straight Line Method ("SLM") based
upon the technical assessment of expected pattern
of consumption of the future economic benefits
embodied in the assets.

Depreciation is charged over the useful lives of the
assets as estimated by the management based on
technical evaluation, which coincide with the useful
live prescribed in Schedule II to the Act. Depreciation
on additions and deletions are restricted to the period
of use.

In case of Building on leasehold land, the depreciation
is charged based on useful life of the building or the
lease period whichever is lower. In the case of lease hold
building improvements, the depreciation is charged
based on useful life of the improvements which is 10
years or lease period including expected renewal period
which ever is lower.

Residual value is considered to be 5% on all the assets,
as technically estimated by the management.

Assets costing below '5,000 are depreciated using
depreciation rate at 100%.

Depreciation methods, useful lives and residual values
are reviewed at each reporting date and adjusted if
appropriate.

iii) Investment property
Recognition and measurement

Investment property is property held either to earn
rental income or for capital appreciation or for both,
but not for sale in the ordinary course of business, use
in the production or supply of goods or services or for
administrative purposes. Upon initial recognition, an
investment property is measured at cost, including
related transaction costs. Subsequent to initial
recognition, investment property is measured at cost
less accumulated depreciation and accumulated
impairment losses, if any.

Investment property is derecognised either when
it has been disposed of or when it is permanently
withdrawn from use and no future economic benefit
is expected from its disposal. Any gain or loss on
disposal of investment property (calculated as the
difference between the net proceeds from disposal
and the carrying amount of the item) is recognised of
profit or loss.

Subsequent expenditure

Subsequent expenditure is capitalized only if it is
probable that the future economic benefits associated
with the expenditure will flow to the Company and the
cost of the item can be measured reliable.

Depreciation

Depreciation on investment property, other than
perpetual leasehold land, is calculated on Straight Line
Method (SLM) method based on useful life estimated
by the Management, which is equal to life prescribed in
Schedule II of the Act.

Fair value disclosure

The fair values of investment property is disclosed in
the notes is based on market observable data. The

Comapany has not engaged any registered valuer for
determaining the above fair value for the current year.

E. Intangible assets

i) Recognition and measurement

Intangible assets that are acquired, are recognized
at cost initially and carried at cost less accumulated
amortization and accumulated impairment loss, if any.
Subsequent expenditure is capitalised only when it
increases the future economic benefits embodied in
the specific asset to which it relates.

ii) Amortisation

Amortisation is calculated to write off the cost of
intangible assets less their estimated residual values
over their estimated useful lives using the Straight
Line Method (SLM) and is included in depreciation and
amortisation expense in statement of profit and loss.

- Software - 5 years

Amortisation method, useful lives and residual values
are reviewed at each reporting date and adjusted if
appropriate.

F. Inventories

Inventories comprise of diagnostic kits, reagents,
laboratory chemicals, consumables etc., these are
measured at lower of cost and net realisable value.
The cost of inventories is based on the first-in, first-out
formula and includes expenditure incurred in acquiring
the inventories and other costs incurred in bringing
them to their present location and condition.

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.

The comparison of cost and net realisable value is made
on an item-by-Item basis.

G. Impairment of assets

i) Impairment of financial instruments

The Company recognises loss allowances for expected
credit losses on financial assets measured at amortised
cost. At each reporting date, the Company assesses
whether financial assets carried at amortised cost are
credit-impaired. A financial asset is ‘credit-impaired’
when one or more events that have a detrimental
impact on the estimated future cash flows of the
financial asset have occurred.

Evidence that a financial asset is credit-impaired
includes the following observable data:

- significant financial difficulty of the debtor;

- a breach of contract such as a default or being
more than 90 days past due;

- it is probable that the debtor will enter bankruptcy
or other financial reorganisation; or

- the disappearance of an active market for a security
because of financial difficulties.

The Company measures loss allowances at an amount
equal to lifetime expected credit losses.

Loss allowances for trade receivables are always
measured at an amount equal to lifetime expected
credit losses.

Lifetime expected credit losses are the expected credit
losses that result from all possible default events over
the expected life of a financial instrument.

12 months expected credit losses are the portion of
expected credit losses that result from default events
that are possible within 12 months after the reporting
date (or a shorter period if the expected life of the
instrument is less than 12 months).

In all cases, the maximum period considered when
estimating expected credit losses is the maximum
contractual period over which the Company is exposed
to credit risk.

When determining whether the credit risk of a financial
asset has increased significantly since initial recognition
and when estimating expected credit losses, the
Company considers reasonable and supportable
information that is relevant and available without
undue cost or effort. This includes both quantitative
and qualitative information and analysis, based on the
Company’s historical experience and informed credit
assessment and including forward-looking information.

Measurement of expected credit losses

Expected credit losses are a probability-weighted
estimate of credit losses. Credit losses are measured
as the present value of all cash shortfalls (i.e. the
difference between the cash flows due to the Company
in accordance with the contract and the cash flows that
the Company expects to receive).

Expected credit losses' are discounted at the effective
interest rate of the financial statement.

Presentation of allowance for expected credit losses in
the balance sheet.

Loss allowances for financial assets measured at
amortised cost are deducted from the gross carrying
amount of the assets.

Write-off

The gross carrying amount of a financial asset is written
off when the Company has no reasonable expections of
recovering asset in its entirety or a portion thereof. This
is generally the case when the Company determines
that the debtor does not have assets or sources of
income that could generate sufficient cash flows to
repay the amounts subject to the write-off. However,
financial assets that are written off could still be subject
to enforcement activities in order to comply with the
Company’s procedures for recovery of amounts due.

ii) Impairment of non-financial assets

At each reporting date, the Company reviews the
carrying amount of non-financial assets, other than
inventories and deferred tax assets, to determine
whether there is any indication of impairment. If any
such indication exists, then the asset's recoverable
amount is estimated.

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

The recoverable amount of a CGU (or an individual
asset) is the higher of its value in use and its fair value
less costs to sell. Value in use is based on the estimated
future cash flows, discounted to their present value
using a pre-tax discount rate that reflects current
market assessments of the time value of money and
the risks specific to the CGU (or the asset).

An impairment loss is recognised if the carrying
amount of an asset or CGU exceeds its estimated
recoverable amount. Impairment losses are recognised
in the statement of profit and loss.

In respect of assets for which impairment loss has been
recognised in prior periods, the Company reviews at
each reporting date whether there is any indication
that the loss has decreased or no longer exists. An
impairment loss is reversed if there has been a change
in the estimates used to determine the recoverable
amount. Such a reversal is made only to the extent
that the asset's carrying amount does not exceed the
carrying amount that would have been determined,
net of depreciation or amortisation, if no impairment
loss has been recognised.

H. Employee benefits

(i) Short-term employee benefits

Short term employee benefits are measured on an
undiscounted basis and expensed as the related
service is provided. A liability is recognised for the
amount expected to be paid under short-term
cash bonus, if the Company has a present legal or
constructive obligation to pay this amount as a result
of past service provided by the employee and the
obligation can be estimated reliably.

(ii) Defined contribution plans

A defined contribution plan is a post-employment
benefit plan where the Company's legal or constructive
obligation is limited to the amount that it contributes
to a seperate legal entity.

The Company makes specified monthly contributions
towards Government administered provident fund
scheme and Employees' State Insurance ('ESI') scheme.

Obligations for contributions to defined contribution
plans are expensed as an employee benefits expense
in statement of profit and loss in the period in which
the related services are rendered by employees.

(iii) Defined benefit plans

A defined benefit plan is a post-employment benefit
plan other than a defined contribution plan. The
Company's net obligation in respect of defined benefit
plans is calculated seperately for each plan by estimating
the amount of future benefits that employees have
earned in the current and prior periods, discounting
that amount and deducting the fair value of any plan
assets. The defined benefit obligation is calculated
annually by a qualified actuary using the projected unit
credit method.

Remeasurements of the net defined benefit liability,
which comprise actuarial gains and losses, the return
on plan assets (excluding interest) and the effect of the
asset ceiling (if any, excluding interest), are recognised
immediately in OCI. They are included in retained
earnings in the statement of changes in equity and in
the balance sheet. The Company determines the net
interest expense (income) on the net defined benefit
liability (asset) for the period by applying the discount
rate determined by reference to market yields at the
end of the reporting period on government bonds.
This rate is applied on the net defined benefit liability
(asset), both as determined at the start of the annual
reporting period, taking into account any changes in
the net defined benefit liability (asset) during the period
as a result of contributions and benefit payments. Net
interest expense and other expenses related to defined
benefit plans are recognised in profit or loss.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognised immediately in profit or
loss as past service cost. The Company recognises gain
and losses on settlement of a defined benefit plan
when the settlement occurs.

(iv) Other long-term employee benefits -
compensated absences

Accumulated absences expected to be carried
forward beyond twelve months is treated as long¬
term employee benefit for measurement purposes.
The Company’s net obligation in respect of other
long-term employee benefit of accumulating
compensated absences is the amount of future
benefit that employees have accumulated at the end
of the year. That benefit is discounted to determine
its present value The obligation is measured annually
by a qualified actuary using the projected unit credit
method. Remeasurements are recognised in profit or
loss in the period in which they arise.

The obligations are presented as current liabilities in
the balance sheet if the Company does not have an
unconditional right to defer the settlement for at least
twelve months after the reporting date.

(v) Share based payments

The grant date fair value of equity-settled share-
based payment arrangements granted to employees
is generally recognised as an employee benefits
expense, with a corresponding increase in equity,
over the vesting period of the options. The amount
recognised as an expense is adjusted to reflect the
number of options for which the related service and
non-market performance conditions are expected to
be met, such that the amount ultimately recognised is
based on the number of options that meet the related
service and non-market performance conditions at
the vesting date. For share-based payment options
with non-vesting conditions, the grant date fair value
of the share-based payment is measured to reflect
such conditions and there is no true-up for differences
between expected and actual outcomes.

I. Leases

At inception of a contract, the Company assesses
whether a contract is, or contains, a lease. A contract is,
or contains, a lease if the contract conveys the right to
control the use of an identified asset for a period of time
in exchange for consideration. Lease contracts entered
by the Company majorly pertains for buildings taken
on lease to conduct its business in the ordinary course.

As a Lessor:

Leases for which the Company is a lessor are classified
as a finance or operating lease. Whenever the terms of
a lease transfer substantially all the risks and rewards

of ownership to the lessee, the contract is classified
as a finance lease. All other leases are classified as
operating leases. Rental income from operating leases
are recognised on straight line basis over the term of
relevant lease as part of other income.

As a Lessee:

At commencement or on modification of a contract
that contains a lease component, the Company
allocates the consideration in the contract to each
lease component on the basis of its relative stand¬
alone prices. The Company recognises a right-of-use
asset and a lease liability at the lease commencement
date. The right-of-use asset is initially measured at
cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or
before the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the
underlying asset or the site on which it is located, less
any lease incentives received.

The Company determines the lease term as the non¬
cancellable period of a lease, together with both
periods covered by an option to extend the lease if the
Company is reasonably certain to exercise that option;
and periods covered by an option to terminate the lease
if the Company is reasonably certain not to exercise that
option. In assessing whether the Company is reasonably
certain to exercise an option to extend a lease, or not
to exercise an option to terminate a lease, it considers
all relevant facts and circumstances that create an
economic incentive for the Company to exercise the
option to extend the lease, or not to exercise the option
to terminate the lease. The Company revises the lease
term if there is a change in the non-cancellable period
of a lease.

The right-of-use asset is subsequently depreciated using
the straight-line method from the commencement
date to the earlier of the end of the useful life of the
right-of-use asset or the end of the lease term. In
addition, the right-of-use asset is periodically reduced
by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.

The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted using the interest
rate implicit in the lease or, if that rate cannot be readily
determined, the Company's incremental borrowing
rate. Generally, the Company uses its incremental
borrowing rate as the discount rate.

The Company determines its incremental
borrowing rate by obtaining interest rates from
various external financing sources and makes
certain adjustments to reflect the terms of the
lease and type of the asset leased.

Lease payments included in the measurement of the
lease liability comprise the following:

• fixed payments, including in-substance fixed
payments;

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

• amounts expected to be payable under a residual
value guarantee;

• the exercise price under a purchase option that
the Company is reasonably certain to exercise,
lease payments in an optional renewal period if
the Company is reasonably certain to exercise
an extension option, and penalties for early
termination of a lease unless the Company is
reasonably certain not to terminate early.

The lease liability is measured at amortised cost using
the effective interest method. It is remeasured when
there is a change in future lease payments arising
from a change in an index or rate, if there is a change
in the Company’s estimate of the amount expected
to be payable under a residual value guarantee, if the
Company changes its assessment of whether it will
exercise a purchase, extension or termination option or
if there is a revised in-substance fixed lease payment.

When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying
amount of the right-of-use asset, or is recorded in profit
or loss if the carrying amount of the right-of-use asset
has been reduced to zero.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-of-use
assets and lease liabilities for leases of low-value assets
and short-term leases, including IT equipment. The
Company recognises the lease payments associated
with these leases as an expense in profit or loss on a
straight-line basis over the lease term.

J. Income-tax

Income-tax expenses comprises current and deferred
tax. It is recognised in profit or loss except to the extent
that it relates to an item recognised directly in equity or
in other comprehensive income.

(i) Current tax

Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable
in respect of previous years. The amount of current tax
reflects the best estimate of the tax amount expected
to be paid or received after considering the uncertainty,
if any, related to income taxes. It is measured using tax

rates (and tax laws) enacted or substantively enacted at
the reporting date.

Tax assets and liabilities are offset only if there is a legally
enforceable right to set off the recognised amounts,
and it is intended to realise the asset and settle the
liability on a net basis or simultaneously.

(ii) Deferred tax

Deferred tax is recognised in respect of temporary
differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the
corresponding amounts used for taxation purposes.
Deferred tax is not recognised for:

- temporary differences arising on the initial
recognition of assets or liabilities in a transaction
that is not a business combination and that affects
neither accounting nor taxable profit or loss at the
time of the transaction; and

- temporary differences in relation to a right-of-
use asset and a lease liability for a specific lease
are regarded as a net package (the lease) for the
purpose of recognising deferred tax.

Deferred tax assets are recognised to the extent that it
is probable that future taxable profits will be available
against which they can be used. The existence of
unused tax losses is strong evidence that future taxable
profit may not be available. Therefore, in case of a history
of recent losses, the Company recognises a deferred
tax asset only to the extent that it has sufficient taxable
temporary differences or there is convincing other
evidence that sufficient taxable profit will be available
against which such deferred tax asset can be realised.
Deferred tax assets - unrecognised or recognised, are
reviewed at each reporting date and are recognised/
reduced to the extent that it is probable/no longer
probable respectively that the related tax benefit will
be realised.

Deferred tax is measured at the tax rates that are
expected to apply to the period when the asset is
realised or the liability is settled, based on the laws that
have been enacted or substantively enacted by the
reporting date.

The measurement of deferred tax reflects the tax
consequences that would follow from the manner in
which the Company expects, at the reporting date,
to recover or settle the carrying amount of its assets
and liabilities.

Deferred tax assets and liabilities are offset if there is a
legally enforceable right to offset current tax liabilities
and assets, and they relate to income taxes levied by
the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle current

tax liabilities and assets on a net basis or their tax assets
and liabilities will be realised simultaneously.