Provisions

Provisions are recognised when the Company has a present
obligation (legal or constructive) as a result of a past event; it
is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
When the Company expects some or all of a provision to be
reimbursed, for example, under an insurance contract, the
reimbursement is recognised as a separate asset, but only when
the reimbursement is virtually certain. The expense relating to a
provision is presented in the statement of profit and loss net of
any reimbursement, if any.

2.13 Contingent liabilities

A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond
the control of the Company or a present obligation that arises
from past events but is not recognised because it is not probable
that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare
cases where there is a liability that cannot be recognised because
it cannot be measured reliably. The Company does not recognize
a contingent liability but discloses its existence in the standalone
financial statements.

2.14 Borrowing costs

Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily takes
a substantial period of time to get ready for its intended use
or sale are capitalised as part of the cost of the asset. All other
borrowing costs are expensed in the period in which they occur.
Borrowing costs consist of interest and other costs that an entity
incurs in connection with the borrowing of funds. Borrowing
cost also includes exchange differences to the extent regarded
as an adjustment to the borrowing costs. These exchange
difference are presented in finance cost to the extent which the
exchange loss does not exceed the difference between the cost
of borrowing in functional currency when compared to the cost
of borrowing in a foreign currency.

2.15 Earnings per equity share ('EPS')

Basic EPS amounts are calculated by dividing the profit for the
year attributable to equity holders by the weighted average
number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit

attributable to equity holders by the weighted average number
of equity shares outstanding during the year plus the weighted
average number of equity shares that would be issued on
conversion of all the dilutive potential equity shares into equity
shares.

2.16 Financial Instruments

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

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

Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if
these financial assets are held within a business whose objective
is to hold these assets in order to collect contractual cash flows
and the contractual terms of financial asset gave rise on specified
dates to cash flows that are solely payments of principal and
interest on principal amount outstanding.

Financial asset at fair value through other comprehensive
income

Financial assets are measured at fair value through other
comprehensive income if these financial assets are held within
a business whose objective is achieved by both collecting
contractual cash flows on specified dates that are solely payments
of principal and interest on principal amount outstanding and
selling financial assets.

Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss
unless it measured at amortised cost or at fair value through other
comprehensive income on initial recognition. The transaction
costs directly attributable to the acquisition of financial assets
and liabilities at fair value through profit and loss immediately
recognized in statement of profit and loss.

Financial liabilities

Financial liabilities which carry a floating rate of interest are
measured at amortised cost using the effective interest method

Equity Instruments

An equity instrument is a contract that evidences residual
interest in the asset of the company after deducting all its
liabilities. Equity instrument by the company are recognised at
the proceeds received net of direct issue cost.