10. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized only when there is a present obligation as a result of past events and when a reliable
estimate of the amount of obligation can be made.

Contingent Liability is disclosed for:

a) Possible obligation which will be confirmed only by future events not wholly within the control of the Company, or

b) Present obligations arising from the past events where it is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

c) A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may,
but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation
that the likelihood of outflow of resources is remote, no provision or disclosure is made.

d) Contingent Assets are not recognized in the financial statements since this may result in the recognition of income
that may never be realized.

11. Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which
such investments are made, are classified as current investments. All other investments are classified as long-term
investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly
attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual
investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to
recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or
credited to the statement of profit and loss

12. Segment Accounting
Business Segment

a) The business segment has been considered as the primary segment.

b) The Company’s primary business segments are reflected based on principal business activities, the nature of
service, the differing risks and returns, the organization structure and the internal financial reporting system.

c) The Company’s primary business includes manufacturing and trading of lithium-ion batteries. This is the on'y
segment as envisaged in Accounting Standard 17: ‘Segment Reporting’ therefore disclosure for Segment report '
not applicable.

13. Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of
transactions of 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. Cash flows from operating, investing
and financing activities of the Company are segregated, accordingly.