2.15 Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive), as a result of
pas. events, and il is probable that an outflow of resources, that can be reflably estimated wil¹ be required to
Settle such an obligation.

The amount recognized as a provision Is the best estimate of the consideration required to settle the present
obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation.
When a provision is measured using (he cash flows estimated lo settle the present obligation, its carrying
amount Is the present value of those cash flows (when (he effect of the time value of money is material).

When some or all pf the economic benefits required to settle a provision are expected to be recovered from a
third party, a receivable is recognized as an asset if It is virtually certain that reimbursement will be received
and the amount of the receivable can be measured reliably.

2.16 Earnings par share

Basic earnings per Share are computed by dividing net Income by the weighted average number of common
shares outstanding. Diluted earnings per share is computed by dividing income available (o shareholders and
assumed conversion by the weighted average number of common shares 3nd potential common shares from
outstanding slock options. PotentiaE common shares are calculated using the treasury stock method and
represent incremental shares issuab.e upon exercise of the Company's outstanding slock options.

2.17 Cash Flow Statement

The cash (tow statement is prepared using the “indirect method" set out in Accounting Standard 3 Cash Flow
Statements" and presents the cash flows by operating, investing and financing activities of the Company.

Cash and cash equivalents presented in the cash flow statement consist of cash on hand and unencumbered
highly liquid bank balances.

2.16 Contingent liabilities

Contingent liabilities as defined in Accounting Standard 29 'Previsions. Contingent Liabilities and Contingent
Assets' are disclosed by way of rotes to the accounts. Disclosure is not made if the possibility of an outflow of
future economic benefits is remote. Provision is made if it is probable that an outflow of future economic
benefits will be required to settle the obligation.

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