Advance Agrolife Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

1.0.2 Material accounting policies

(a) Property, plant and equipment
Recognition and Measurement

Property, plant and equipment are stated at cost,
net of accumulated depreciation and accumulated
impairment losses, if any. Freehold land is stated
at cost.

The cost of an item of property, plant and
equipment comprises:

a) its purchase price, including non-refundable
purchase taxes, after deducting trade discounts
and rebates.

b) any costs directly attributable to bringing the
asset to the location and condition necessary
for it to be capable of operating in the manner
intended by the management.

c) the initial estimate of the costs of dismantling
and removing the item and restoring the site on
which it is located.

If significant parts of an item of property, plant
and equipment have different useful lives, then
they are accounted for as separate items (major
components) of property, plant and equipment and
depreciated accordingly.

Subsequent expenditure

Subsequent expenditure is capitalised only if it is
probable that the future economic benefits associated
with the expenditure will flow to the Company.

Depreciation methods, estimated useful lives and
residual value

Depreciation is calculated on written down value basis
using the useful lives as prescribed under Schedule

II to the Companies Act, 2013. If the management''s
estimate of the useful life of a property plant &
equipment at the time of acquisition of the asset or
of the remaining useful life on a subsequent review is
shorter than that envisaged in the aforesaid schedule,
depreciation is provided at a higher rate based on the
management''s estimate of the useful life/remaining
useful life.

Depreciation on additions during the year is provided
on pro rata basis with reference to month of addition/
installation.

The residual values are not more than 5% of the original
cost of the asset. Assets costing less than ? 5000 are
fully charged to the Statement of profit & loss account
in the year of acquisition.

De-recognition

An item of property, plant and equipment and any
significant part initially recognised is derecognised
upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or loss
arising on de-recognition of the asset (calculated as
the difference between the net disposal proceeds
and the carrying amount of the asset) is included
in the statement of profit and loss when the asset
is derecognised.

(b) Capital Work-In-Progress

Cost of assets not ready for intended use, as on
balance sheet date is shown as capital work in progress.
Advances given towards acquisition of property, plant
and equipment outstanding at each balance sheet date
are disclosed as other non-current assets.

(c) Investment Property
Recognition and Measurement

Land and Building held to earn rental or for
capital appreciation or both, rather than for use
in the production or supply of goods or services
or for administrative purposes: or sale in the
ordinary course of business is recognised as
investment property. Land held for a currently
undetermined future use is also recognised 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 the expenditure will
flow to the Company and the cost of the item can be
measured reliably. All other repairs and maintenance
costs are expensed when incurred. When part of an
investment property is replaced, the carrying amount
of the replaced part is derecognised.

Gain or Loss on Disposal

Any gain or loss on disposal of an Investment Property
is recognised in the Statement of Profit and loss.

(d) Intangible Assets

Intangible asset including intangible assets under
development are stated at cost, net of accumulated
amortisation and accumulated impairment losses,
if any. Intangible assets acquired separately are
measured on initial recognition at cost.

Intangible assets in case of ERP software are amortised
on WDV basis over a period of 6 years, based on
management estimate. The amortisation period and
the amortisation method are reviewed at the end of
each financial year.

The useful lives of intangible assets are assessed as
either finite or indefinite. Intangible assets with finite
lives are amortised over the useful economic life
and assessed for impairment whenever there is an
indication that the intangible asset may be impaired.
The amortisation period and the amortisation method
for an intangible asset with a finite useful life are
reviewed at least at the end of each reporting period.
Changes in the expected useful life or the expected
pattern of consumption of future economic benefits
embodied in the asset are considered to modify the
amortisation period or method, as appropriate, and
are treated as changes in accounting estimates. The
amortisation expense on intangible assets with infinite
lives is recognised in the statement of profit and loss
unless such expenditure forms part of carrying value of
another asset.

De-recognition

An item of property, plant and equipment and any
significant part initially recognised is derecognised
upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or loss
arising on de-recognition of the asset (calculated as
the difference between the net disposal proceeds
and the carrying amount of the asset) is included

in the statement of profit and loss when the asset
is derecognised.

(e) Impairment

i. Impairment of Financial Assets

The Company recognises loss allowances for expected
credit losses on:

- financial assets measured at amortised cost;

- contract assets recognised under contract with
customers; and

- financial assets measured at FVTOCI-
debt investments.

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 borrower
or issuer;

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

- the restructuring of a loan or advance by each
entity in the Company on terms that such entity
would not consider otherwise;

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

- 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, except for
bank balances for which credit risk (i.e. the risk of
default occurring over the expected life of the financial
instrument) has not increased significantly since initial
recognition, which are measured as 12 month 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. Twelve 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 Companies historical experience and
informed credit assessment and including forward¬
looking information.

ii. Impairment of non-financial assets

The Companies non-financial assets, other than
inventories and deferred tax assets are reviewed at
each reporting date 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 GU 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 GU (or the asset).

An impairment loss is recognised if the carrying
amount of an asset or GU exceeds its estimated
recoverable amount. Impairment losses are recognised
in the Statement of Profit and Loss. Impairment loss
recognised in respect of a CGU is allocated first to
reduce the carrying amount of any goodwill allocated
to the GU, and then to reduce the carrying amounts of
the other assets of the CGU (or group of CGUs) on a pro
rata basis.

In respect of other 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
had been recognised.

(f) Inventories

Inventories include finished goods, raw materials
and Work in Progress. The inventory is valued at cost
or Net Realisable Value, whichever is lower. Cost is
ascertained on FIFO Basis.

The cost of inventory include expenditure in purchasing
the materials, production and conversion cost and
other relevant 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 estimated costs necessary to make
the sale.

(g) Financial Instruments
i. Financial assets

Initial recognition and measurement

Financial assets are recognised when, and only when,
the Company becomes a party to the contractual
provisions of the financial instrument. The Company
determines the classification of its financial assets at
initial recognition.

When financial assets are recognised initially, they
are measured at fair value. Transaction costs that
are directly attributable to the acquisition or issue of
financial assets, which are not at fair value through
profit or loss, are adjusted to the fair value on
initial recognition.

Classification:

a. Cash and Cash Equivalents

Cash comprises cash/cheques on hand and
demand deposits with banks. Cash equivalents
are short-term balances (with an original
maturity of three months or less from the date
of acquisition), highly liquid investment that are
readily convertible into known amounts of cash
and which are subject to insignificant risk of
changes in value.

b. Debt Instruments

The Company classifies its debt instruments,
as subsequently measured at amortised cost
or fair value through Other Comprehensive
Income or fair value through profit or loss
based on its business model for managing the
financial assets and the contractual cash flow
characteristics of the financial asset

i. Financial assets at amortised cost

Financial assets are subsequently measured
at amortised cost if these financial assets are
held for collection of contractual cash flows
where those cash flows represent solely
payments of principal and interest. Interest
income from these financial assets is
included as a part of the Company’s income
in the Statement of Profit and Loss using the
effective interest rate method.

ii. Financial assets at fair value through Other
Comprehensive Income (FVTOCI)

Financial assets are subsequently measured
at fair value through Other Comprehensive
Income if these financial assets are held for
collection of contractual cash flows and for
selling the financial assets, where the assets
cash flows represent solely payments of
principal and interest. Movements in the
carrying value are taken through Other
Comprehensive Income, except for the
recognition of impairment gains or losses,
interest revenue and foreign exchange
gains or losses which are recognised in
the Statement of Profit and Loss. When
the financial asset is derecognised,
the cumulative gain or loss previously
recognised in Other Comprehensive Income
is reclassified from Other Comprehensive
Income to the Statement of Profit and Loss.

iii. Financial assets at fair value through profit
or loss (FVTPL)

Assets that do not meet the criteria for
amortised cost or FVOCI are measured at fair
value through profit or loss. A gain or loss on
such debt instrument that is subsequently
measured at FVTPL and is not part of a
hedging relationship as well as interest
income is recognised in the Statement of
Profit and Loss.

c. Equity Instruments

The Company subsequently measures all equity
investment (other than the investments in subsidiaries,
joint ventures and associates which are measured at
cost) at fair value. Where the Company has elected
to present fair value gains and losses on equity
investments in Other Comprehensive Income ("OCI"),
there is no subsequent reclassification of fair value of
gains and losses to profit or loss. Dividends from such
investments are recognised in the Statement of Profit

and Loss as other income when the Company’s right to
receive payment is established.

The Company has made an irrecoverable election to
present in Other Comprehensive Income subsequent
changes in the fair value of equity investments that are
not held for trading (except investments in subsidiaries,
joint ventures and associates which are measured at
cost).

When the equity investment is de-recognised, the
cumulative gain or loss previously recognised in
Other Comprehensive Income is reclassified from
Other Comprehensive Income to the Retained
Earnings directly.

De-recognition

A financial asset is de-recognised only when the
Company has transferred the rights to receive cash
flows from the financial asset. Where the Company 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 de-recognised. Where the Company
has not transferred substantially all risks and rewards
of ownership of the financial asset, the financial asset
is not de-recognised. 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.

ii. Financial liabilities

Initial recognition and measurement

Financial liabilities are recognised when and only when,
the Company becomes a party to the contractual
provisions of the financial instrument. The Company
determines the classification of its financial liabilities at
initial recognition.

All financial liabilities are recognised initially at fair
value. Transaction costs that are directly attributable
to the acquisition or issue of financial liabilities, which
are not at fair value through profit or loss, are adjusted
to the fair value on initial recognition.

Subsequent measurement

After initial recognition, financial liabilities that are
not carried at fair value through profit or loss are
subsequently measured at amortised cost using
the effective interest method. Gains and losses are
recognised in the Statement of Profit and Loss when
the liabilities are derecognised, and through the
amortisation process

De-recognition

A financial liability is de-recognised when the obligation
under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another
from the same lender on substantially different terms,
or the terms of an existing liability are substantially
modified, such an exchange or modification is treated
as a de-recognition of the original liability and the
recognition of a new liability, and the difference in
the respective carrying amounts is recognised in the
Statement of Profit and Loss.

Equity Instruments

An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments issued
by a Company are recognised at the proceeds received.

(h) Foreign Currencies:

Initial recognition

Foreign currency transactions are recorded in the
reporting currency by applying to the foreign currency
amount the exchange rate between the reporting
currency and the foreign currency at the date of
the transaction.

Conversion

Foreign currency monetary items are reported using
the closing rate. Non-monetary items which are carried
in terms of historical cost denominated in a foreign
currency are reported using the exchange rate at the
date of the transaction. Non-monetary items, which
are measured at fair value or other similar valuation
denominated in a foreign currency, are translated
using the exchange rate at the date when such value
was determined.

Exchange difference

Exchange differences arising on the settlement of
monetary items or on reporting monetary items of
Company at rates different from those at which they
were initially recorded during the year, or reported
in previous Financial Information, are recognised
as income or as expenses in the year in which they
arise except those arising from investments in non¬
integral operations.

The Company’s Financial Information are presented in
Indian Rupee. The Company determines the functional
currency as Indian Rupee on the basis of primary
economic environment in which the entity operates.

(i) Leases

The Company assesses at contract inception whether
a contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified
asset for a period of time in exchange for consideration.

Company as a Lessor:

Leases for which the Company is a lessor is classified
as a finance or operating lease. Whenever the terms of
the 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.

For operating leases, rental income is recognised
on a systematic basis according to contract of the
relevant lease.

Company as a lessee

The Company applies a single recognition and
measurement approach for all leases, except for
short-term leases and leases of low-value assets. The
Company recognises lease liabilities to make lease
payments and right-of-use assets representing the
right to use the underlying assets.

Right-of-use assets

The Company recognises right-of-use assets at the
commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated
depreciation and accumulated impairment losses, and
adjusted for any re-measurement of lease liabilities.
The cost of right-of-use assets includes the amount
of lease liabilities recognised, initial direct costs
incurred, and lease payments made at or before
the commencement date less any lease incentives
received. Right-of-use assets are depreciated on a
straight-line basis over the shorter of the lease term
and the estimated useful lives of the assets.

If ownership of the leased asset transfers to the
Company at the end of the lease term or the cost
reflects the exercise of a purchase option, depreciation
is calculated using the estimated useful life of the asset.

The right-of-use assets are also subject to impairment.
Refer to the section of the accounting policies -
Impairment of non-financial assets.

Lease Liability

At the commencement date of the lease, the Company
recognises lease liabilities measured at the present
value of lease payments to be made over the lease
term. The lease payments include fixed payments

(including in substance fixed payments) less any lease
incentives receivable.

In calculating the present value of lease payments,
the Company uses its incremental borrowing rate at
the lease commencement date because the interest
rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of interest
and reduced for the lease payments made. In addition,
the carrying amount of lease liabilities is remeasured
if there is a modification, a change in the lease term,
a change in the lease payments (e.g., changes to
future payments resulting from a change in an index
or rate used to determine such lease payments) or a
change in the assessment of an option to purchase the
underlying asset.

(j) Borrowing costs

General and specific borrowing costs that are directly
attributable to the acquisition, construction or
production of a qualifying asset are capitalised during
the period of time that is required to complete and
prepare the asset for its intended use or sale. Qualifying
assets are assets that necessarily take a substantial
period of time to get ready for their intended use
or sale.

Interest income earned on the temporary investment
of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs
eligible for capitalisation. Other borrowing costs are
expensed in the period in which they are incurred.

(k) Cash and Cash Equivalent

Cash and cash equivalent includes cash on hand, other
short-term, highly liquid 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, and
bank overdrafts.

(l) Statement of Cash Flows

Cash flows are reported using the indirect method,
whereby net profit before taxes for the period is
adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future
operating cash receipts or payments and item of
income or expenses associated with investing or
financing cash flows. The cash flows from operating,
investing and financing activities of the Company
are segregated.

(m) Earnings per share
Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the company

- by the weighted average number of equity shares
outstanding during the financial year, adjusted for
bonus elements in equity shares issued.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in
the determination of basic earnings per share to take
into account:

- the profit attributable to owners of the company

- the weighted average number of additional
equity shares that would have been outstanding
assuming the conversion of all dilutive potential
equity shares.

(n) Revenue Recognition

The Company derives revenues primarily from
manufacturing and distributing of broad spectrum
of technical and formulated grade of agrochemical
such as insecticides, fungicides, herbicides, and plant
growth regulators.

Ind AS 115 "Revenue from Contracts with Customers”
provides a control- based revenue recognition model
and provides a five-step application approach to be
followed for revenue recognition.

• Identify the contract(s) with a customer;

• Identify the performance obligations;

• Determine the transaction price;

• Allocate the transaction price to the
performance obligations;

• Recognise revenue when or as an entity satisfies
performance obligations

Revenue from contracts with customers is recognised
when control of the goods is transferred to the
customer, at an amount that reflects the consideration
to which the Company expects to be entitled in
exchange for those goods. Revenue is recognised when
no significant uncertainty exists as to its realisation
or collection.

The amount recognised as revenue in its Statement of
Profit and Loss is exclusive of Goods and Service Tax
and is net of discounts.

(0) Contract balances
Trade receivables

A receivable represents the Company’s right to an
amount of consideration that is unconditional (i.e., only
the passage of time is required before payment of the
consideration is due). Refer to accounting policies of
financial assets in section (h) Financial Instruments.

Contract liabilities

A contract liability is the obligation to perform the
services as agreed with the customer for which the
Company has received consideration (or an amount
of consideration is due) from the customer. A contract
liability is recognised when the payment is made or
the payment is due (whichever is earlier). Contract
liabilities are recognised as revenue when the Company
performs under the contract.

Export benefits are accounted for in the year of exports
based on eligibility and when there is no uncertainty in
receiving the same.

Other income:

Interest Income:

Interest income is accrued on time basis, by reference
to the principal outstanding and at the effective
interest rate applicable, which is the rate that exactly
discount estimated future cash receipts through the
expected life of the financial asset to the asset’s net
carrying amount on initial recognition. Interest income
is included in other income in the statement of profit/
loss.

(p) Employee benefits

(1) During Employment benefits

Short term employee benefits obligations

Liabilities for wages and salaries, including non¬
monetary 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 employee’s services up to the
end of the reporting period and are measured at the
undiscounted amounts of the benefits expected to be
paid when the liabilities are settled. The liabilities are
presented as current employee benefit obligations in
the balance sheet.

Other Long-term employee benefit obligations

The liabilities for compensated absences (annual leave)
which are not expected to be settled wholly within
12 months after the end of the period in which the

employee render the related service are presented as
non-current employee benefits obligations. They are
therefore measured as the present value of expected
future payments to be made in respect of services
provided by employees up to the end of the reporting
period using the Projected Unit Credit method. The
benefits are discounted using the market yields at
the end of the reporting period on government bonds
that have terms approximating to the terms of the
related obligations. Re-measurements as a result
of experience adjustments and changes in actuarial
assumptions (i.e. actuarial losses/ gains) are recognised
in the Statement of Profit and Loss.

The obligations are presented as current in the balance
sheet, if the Company does not have an unconditional
right to defer settlement for at least twelve months
after the reporting period, regardless of when the
actual settlement is expected to occur.

(ii) Post-Employment benefits

(a) Defined contribution plans

The Company pays provident fund contributions to
publicly administered provident funds as per local
regulatory authorities. The Company has no further
obligations once the contributions have been paid. The
contributions are accounted for as defined contribution
plans and the contributions are recognised as employee
benefit expense when they are due.

(b) Defined benefit plans

The Company provides for gratuity, a defined benefit
plan (the "Gratuity Plan”) covering eligible employees
in accordance with the Payment of Gratuity Act, 1972.
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 actuarially determined
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 a
terms approximating to the terms of the obligation

The net interest cost, calculated by applying the
discount rate to the net balance of the defined benefit
obligation and the fair value of the plan assets, is

recognised as employee benefit expenses in the
statement of profit and loss.

Re-measurements gains and losses arising
from experience adjustments and changes in
actuarial assumptions are recognised in the other
comprehensive income in the year in which they arise
and are not subsequently reclassified to Statement of
Profit and 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.

(iii) Termination benefits

Termination benefits are payable when employment
is terminated by the Company before the normal
retirement date

or when an employee accepts voluntary redundancy in
exchange for these benefits. In case of an offer made
to encourage voluntary redundancy, the termination
benefits are measured based on the number of
employees expected to accept the offer.

(q) Taxes

Income tax expense comprises of current tax
expense and the net change in the deferred tax asset
or liability during the year. Current and deferred tax
are recognised in the Statement of Profit and Loss
(including other comprehensive income/(loss)), except
when they relate to items that are recognised in Other
Comprehensive Income (OCI) or directly in equity,
in which case, the current and deferred tax are also
recognised in other comprehensive income or directly
in equity, respectively.

i. Current tax

Current income tax for the current and prior periods
are measured at the amount expected to be paid to
the taxation authorities based on the taxable income
for that period. The tax rates and tax laws used to
compute the amount are those that are enacted or
substantively enacted as at the date of Statement of
Assets and Liabilities.

Management periodically evaluates positions taken
in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation
and considers whether it is probable that a taxation
authority will accept an uncertain tax treatment. The
Company shall reflect the effect of uncertainty for
each uncertain tax treatment by using either most
likely method or expected value method, depending
on which method predicts better resolution of
the treatment.

ii. Deferred tax

Deferred tax is recognised on differences between
the carrying amounts of assets and liabilities in the
Financial Information and the corresponding tax bases
used in the computation of taxable profit and are
accounted for using the balance sheet liability method.
Deferred tax liabilities are generally recognised for all
taxable temporary differences, and deferred tax assets
are generally recognised for all deductible temporary
differences to the extent that it is probable that taxable
profits will be available against which those deductible
temporary differences can be utilised. Such assets and
liabilities are not recognised if the temporary difference
arises from goodwill or from the initial recognition
(other than in a business combination) of other assets
and liabilities in a transaction that affects neither the
taxable profit nor the accounting profit.

Deferred tax relating to items recognised outside
profit or loss is recognised outside profit or loss (either
in other comprehensive income or in equity). Deferred
tax items are recognised in correlation to the underlying
transaction either in OCI or directly in equity.

The carrying amount of deferred tax assets is reviewed
at each balance sheet date and reduced to the extent
that it is no longer probable that sufficient taxable
profits will be available to allow all or part of the asset to
be recovered.

Deferred tax assets and liabilities are offset when there
is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to
income taxes levied by the same taxation authority and
the Company intends to settle its current tax assets
and liabilities on a net basis.

Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based
on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.