1.15 Provisions

A provision is recognised when the Company has a present obligation (legal or constructive) as a result
of 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.
These estimates are reviewed at each reporting date and adjusted to reflect the current best
estimates.

1.16 Contingent Liabilities and Contingent Assets

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 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 financial statements unless the probability of outflow of resources is remote.

1.17 Impairment of property, plant and equipment

At each balance sheet date, the Company reviews the carrying amount of assets to determine whether
there is an indication that those assets have suffered impairment loss. If any such indication exists,
the recoverable amount of assets is estimated in order to determine the extent of impairment loss.
The recoverable amount is higher of the net selling price and value in use, determined by discounting
the estimated future cash flows expected from the continuing use of the asset to their present value.

1.18 Current and Non-current Classification

All assets and liabilities have been classified as current and non-current as per the Company's normal
operating cycle (Twelve months) and other criteria set out in Schedule III to the Act.