De-recognition:

An item of property, plant and equipment is de-recognized at the time of its disposal or when it is assessed that
no future economic benefit would accrue from it. The gain or loss arising out of such disposal or retirement is
taken to our statement of profit or loss.

Intangible assets

An intangible asset is an identifiable non-monetary asset without physical substance. An intangible asset with
finite useful life that are acquired separately and where the useful life is two years or more is capitalized and
carried at cost less accumulated amortization. Amortization is recognized on a straight line basis over the useful
life of the asset. The class of asset and the estimated useful life is as follows:

 

Description of the asset Useful life and basis of amortization
Software acquired 5 years
Technical Knowhow - acquired 2.5 years

 

Internally generated intangible assets

Expenditure on research activities is recognized as an expense in the period in which it is incurred. An internally
generated intangible asset arising from development, or from the development phase of an internal project, is
recognized if, and only if, all of the following have been demonstrated:

. the technical feasibility of completing the intangible asset so that it will be available for use or sale;

. the intention to complete the intangible asset and use or sell it;

. the ability to use or sell the intangible asset;

. how the intangible asset will generate probable future economic benefits;

. the availability of adequate technical, financial and other resources to complete the development and to

use or sell the intangible asset; and
. the ability to measure reliably the expenditure attributable to the intangible asset during its development.

The amount initially recognized for internally generated intangible assets is the sum of the expenditure incurred
from the date when the intangible asset first meets the recognition criteria listed above. Where no internally
generated intangible asset can be recognized, development expenditure is recognized in profit or loss in the period
in which it is incurred. Subsequent to initial recognition, internally generated intangible assets are reported at cost
less accumulated amortization and accumulated impairment losses, on the same basis as intangible assets that are
acquired separately.

 

 

Description of the asset Useful life and basis of amortization
Development Expenditure 3 years
De-recognition

An intangible asset is de-recognized on disposal, or when no future economic benefits are expected from use or
disposal. Gains or losses arising from de-recognition of an intangible asset, measured as the difference between
the net disposal proceeds and the carrying amount of the asset, are recognized in our statement of profit or loss
when the asset is de-recognized.

Impairment of assets

At the end of each reporting period, we determine whether there is any indication that our assets, tangible,
intangible assets and investments in equity instruments carried at cost, have suffered an impairment loss with
reference to their carrying amounts. If any indication of impairment exists, the recoverable amount of such assets
is estimated and impairment is recognized, if the carrying amount exceeds the recoverable amount. Recoverable
amount is higher of the fair value less costs of disposal and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market

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