Debtors Debtors are stated after all known bad debts have been written off and specific provision has been made against all debts considered doubtful of collection. Cash at bank and in hand Cash at bank and in hand includes cash on hand, demand deposits and other term highly liquid investments regardless of maturity. Creditors Short term creditors are measured at transaction price. Financial instruments The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans to or from related parties which are recognised at transaction price. Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at the transaction price (present value of the future cash flows, including transaction costs) and subsequently at amortised cost using the effective interest method. Tax Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Grants Grants that relate to specific capital expenditure are credited to the profit and loss account over the useful lives of the related assets. Grants that relate to revenue expenditure are credited to the profit and loss account over the period that the revenue expenditure relates to. Pensions The company operates a defined contribution scheme for directors and employees. Contributions payable are recognised in profit and loss account when due.