The directors have assessed the company’s financial position and believe it is appropriate to prepare the financial statements on a going concern basis due to the ongoing financial support from its shareholders. The shareholders have confirmed its intention to provide financial support to the company to ensure it can meet its liabilities as they fall due for at least the next 12 months from the date of approval of these financial statements.

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates and sales taxes.

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

• the company has transferred the significant risks and rewards of ownership to the buyer;
• the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
• the amount of revenue can be measured reliably;
• it is probable that the company will receive the consideration due under the transaction; and
• the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the
statement of comprehensive income because of items of income or expense that are taxable or deductible in other
years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax
rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are
generally recognised for all taxable timing differences. 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 timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of eachreporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be availableto allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and
deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequencesthat would follow from the manner in which the Company expects, at the end of the reporting period, to recover orsettle the carrying amount of its assets and liabilities.

Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are
recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also
recognised in other comprehensive income or directly in equity respectively.

Inventories are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.