Common use of SIGNIFICANT ACCOUNTING POLICIES Clause in Contracts

SIGNIFICANT ACCOUNTING POLICIES. 4.1 Revenue and expense recognition Services income and service cost from construction The Group considered that most of the construction agreement had involved a single performance obligation. The Group recognized the revenue from rendering services under construction agreement throughout the construction period by using the outcome method to measure the success of work which assessed the ratio of work completed by the project engineer. The percentage of work completed had been considered and calculated by comparing the actual construction costs incurred until the end of the year with the total cost of construction that was expected to be used in the construction agreement. The allowance for losses would be provided for the construction project in full amount when it was clear that the construction project would suffer a loss. The likelihood of contract variations claims and liquidated damages, delays in delivery or contractual penalties are taken into account in determining the revenue to be recognised, such that revenue is only recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. When the value and stage of completion of the contract cannot be reasonably measured, revenue is recognised only to the extent of contract costs incurred that are expected to be recovered. The recognised revenue which is not yet due per the contracts has been presented under the caption of “Contract asset” in the statement of financial position. The amounts recognised as contract assets are reclassified to trade receivables when the Group’s right to consideration is unconditional such as upon completion of services and acceptance by the customer. The obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer is presented under the caption of “Contract liability” in the statement of financial position. Contract liabilities are recognised as revenue when the Group performs under the contract. Costs of construction contracts comprise the costs of supply, subcontractors’ charges, other services and overheads which are recognized on the percentage-of-completion method. The recognised cost of construction which have not yet been due have been shown under the caption of “Unbilled payable” in the statements of financial position. Revenue and cost of system development services Revenue from system development services of subsidiaries is recognized over time when services have been rendered taking into account the stage of completion. by measuring from the ratio of the services cost completed until present compared to the total estimate of services cost. Revenue from system maintenance and equipment maintenance services of subsidiaries is recognized as revenue over the service period under the contract on a straight-line basis. Sales income Revenue from sale of goods is recognised at the point in time when control of the asset is transferred to the customer, generally on delivery of the goods. Revenue is measured at the amount of the consideration received or receivable, excluding value added tax, of goods supplied after deducting returns and discounts. Interest income Interest income is calculated using the effective interest method and recognised on an accrual basis. Other income and expense The Group have recognised the other income and expenses based on the accrual basis. 4.2 Cash and cash equivalents Cash and cash equivalents consist of cash in hand, cash at bank, and highly liquid short-term investment with an original maturity of three months or less and not subject to withdrawal restrictions. 4.3 Financial Instruments Classification and measurement of financial assets Financial assets are classified, at initial recognition, as to be subsequently measured at amortized cost, fair value through other comprehensive income, or fair value through profit or loss. The classification of financial assets at initial recognition is driven by the Group’ business model for managing the financial assets and the contractual cash flows characteristics of the financial assets. Equity instruments can be classified and cannot be changed by two types of measurement which are measuring fair value through profit or loss or measuring fair value through other comprehensive income that without recycling to profit or loss. The initial recognition of financial assets that are not measured at fair value through profit or loss with fair value plus or deduct transaction cost directly related to the acquisition or issuance. Financial assets that are measured at fair value through profit or loss, transaction costs of financial assets are recognized as expense in profit or loss. However, trade receivables, that do not contain a significant financing component are measured at the transaction price. Subsequent measurement of debt instruments by 3 methods depends on the classification of debt instruments. - Financial assets measured at amortized cost when financial assets are held to receive cash flow under the agreement and condition of the agreement of the financial assets that generate cash flow to pay the principal and interest from the principal balance on the specified date only. Such financial assets have to be calculated using the effective rate and are subject to impairment assessment. Profit or loss arising from derecognized, modified or impaired will be recognized in profit or loss. - Financial assets measured at fair value through other comprehensive income when financial assets are held to receive cash flow under the agreement and to sell financial assets and the agreement condition of financial assets generating cash flow that only pays the principal and interest from the principal balance on the specified date. The change of value of financial assets is recognized through other comprehensive income except loss on impairment and interest income and gain and loss on exchange rate are recognized as profit or loss upon recognized of financial assets. Earning or deficit previously recognized in other comprehensive income has to be reclassified into profit or loss. Such financial asset has to be calculated using the effective interest rate same as financial assets measured at amortized cost. - Financial assets measured at fair value through profit or loss when financial assets that do not meet the criteria for amortized cost or financial assets measured at fair value through other comprehensive income will be presented in the statement of financial position at fair value by recognizing the net change of fair value in profit or loss. Subsequent valuation of equity instruments must present equity instruments using the fair value and record profit/loss from change in fair value through profit or loss or other comprehensive income depending on equity instruments classification. Classification and valuation of financial liabilities The Group are recognized initially of financial liabilities at fair value net of transaction costs and classified as financial liabilities as financial liabilities subsequently measured at amortized cost using the effective rate. The amortized cost is calculated taking into account fees or costs that are an integral part of the effective rate. Amortization by the effective rate is presented as part of financial costs in profit or loss. Derecognition of financial instruments Financial assets will be derecognized from the account when the right to receive cash flow of such asset has ended or when the right to receive cash flow of the assets is transferred including upon the transfer of all risk and consideration of that asset or transfer of internal control in that asset although there is no transfer or maintaining of nearly all risk and consideration of such asset. Financial liabilities will be derecognized from the account when the obligation of such liabilities has been complied, the obligation is cancelled or the obligation has ended. In case existing financial liabilities are changed to new liabilities from one single lender with considerably different requirements or there is a significant amendment in the requirements of existing liabilities, these are considered as recognition old liabilities and recognizing new liabilities by recognizing the difference of such carrying value under profit or loss. Impairment of financial assets Expected credit loss for financial assets measured at amortized cost or debt instrument financial asset measured at fair value through other comprehensive income and assets arising from credit facility obligation and financial guarantee agreement are assessed without having to wait for the credit event to occur first. The Group use the general approach in considering the allowance for loss on impairment. For trade receivables, the Group apply a simplified approach in calculating ECLs. The Group recognize a loss based on lifetime ECLs at each reporting date. It is based on its historical credit loss experience and adjusted for forward-looking factors specific to the debtors and the economic environment. Offset of financial instruments Financial assets and liabilities will be offset and presented at net balance in the statement of financial position in the case legally enforced in offsetting the recognized amount. The Group intend to pay the net balance or intends to receive assets and settle payment of liabilities at the same time.

SIGNIFICANT ACCOUNTING POLICIES. 4.1 3.1 Revenue and expense expenses recognition Services income and service cost Revenues from construction The Group considered that most of electricity distribution when the construction agreement had involved a single performance obligation. The Group recognized the revenue from rendering services under construction agreement throughout the construction period electricity current is distributed by using the outcome method to measure the success of work which assessed the ratio of work completed by the project engineer. The percentage of work completed had been considered and calculated by comparing the actual construction costs incurred until the end of the year calculating with the total cost of construction that was expected to be used rate indicated in the construction agreementelectricity trading contracts. The allowance for losses would be provided for the construction project in full amount when it was clear that the construction project would suffer a loss. The likelihood of contract variations claims and liquidated damages, delays in delivery or contractual penalties are taken into account in determining the revenue to be recognised, such that revenue is only recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. When the value and stage of completion of the contract cannot be reasonably measured, revenue is recognised only to the extent of contract costs incurred that are expected to be recovered. The recognised revenue which is not yet due per the contracts has been presented under the caption of “Contract asset” in the statement of financial position. The amounts recognised as contract assets are reclassified to trade receivables when the Group’s right to consideration is unconditional such as upon completion of services and acceptance by the customer. The obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer is presented under the caption of “Contract liability” in the statement of financial position. Contract liabilities are recognised as revenue when the Group performs under the contract. Costs of construction contracts comprise the costs of supply, subcontractors’ charges, other services and overheads which are recognized on the percentage-of-completion method. The recognised cost of construction which have not yet been due have been shown under the caption of “Unbilled payable” in the statements of financial position. Revenue and cost of system development services Revenue from system development services of subsidiaries is recognized over time when services have been rendered taking into account the stage of completion. by measuring from the ratio of the services cost completed until present compared to the total estimate of services cost. Revenue from system maintenance and equipment maintenance services of subsidiaries is recognized as revenue over the service period under the contract on a straight-line basis. Sales income Revenue from sale of goods is recognised recognized at the point in time when control of the asset is transferred to the customer, generally on delivery of the goods. Revenue is measured at the amount of the consideration received or receivable, excluding value added tax, of goods supplied after deducting returns and discounts. Interest For sale with warranties to assure that the goods comply with agree-upon specifications, the Group recognized the warranty as provisions, contingent liabilities and contingent assets. The service-type warranties provided customers with a service in addition to the assurance that the product complies with agree-upon specifications is recognized as revenue over the period in which the service is provided. Revenue rendering of service from installation of solar-cell system is recognized over time in accordance with the measuring progress towards complete satisfaction of a performance obligation, based on the costs incurred to the satisfaction of a performance obligation relative to the total expected costs to the satisfaction of that performance obligation. In some circumstances, the Company and its subsidiaries may not be able to reasonably measure the outcome of a performance obligation, but the Company and its subsidiaries expect to recover the costs incurred in satisfying the performance obligation. In those circumstances, the Company and its subsidiaries shall recognize revenue only to the extent of costs incurred until such time that it can reasonably measure the outcome of the performance obligation. The recognized revenue which is not yet due per the contracts has been presented as “Unbilled receivables” in the statement of financial position under trade and other receivable, which is classified as trade receivables when the Company and its subsidiaries has right to receive without condition such as upon completion of services and acceptance by the customer. The obligation to transfer goods or service to a customer for which the Company and its subsidiaries have received consideration or an amount of consideration is due from the customer is presented as “Deferred revenue” in the statement of financial position, which is classified as other payables under trade and other payable. Deferred revenue will be recognized as revenue when the Company and its subsidiaries completely perform the obligation stated in the contract. Revenues from rental income Interest and related services from an investment property are recognized on a straight-line basis over the term of the lease. Contingent rentals are recognized as income in the accounting period in which they are occurred. The related service income is calculated using recognized over the term of the lease. Interest revenue are recognized on an accrual basis based on the effective interest method and recognised on an accrual basisrate. Other income and expense The Group have recognised the other income and expenses based are recognized on the accrual basis. 4.2 3.2 Cash and cash equivalents Cash and cash equivalents consist of cash in hand, cash at bank, and all highly liquid short-term investment investments with an original maturity of three months or less and not subject to withdrawal restrictions. 4.3 Financial Instruments Classification 3.3 Trade and measurement other current receivables Applicable from January 1,2020 Trade receivables are recognized initially at the amount of financial assets Financial assets consideration that is unconditional unless they contain significant financing components, when they are classified, recognized at initial recognition, as its present value. Trade receivables are stated at the amount expected to be subsequently measured at amortized costcollectible, fair value through other comprehensive incomethe Company and its subsidiaries apply the TFRS 9 simplified approach to measuring expected credit losses which uses a simplified approach, or fair value through profit or loss. The classification of financial assets at initial recognition is driven by the Group’ business model for managing the financial assets and the contractual cash flows characteristics of the financial assets. Equity instruments can which requires expected lifetime losses to be classified and cannot be changed by two types of measurement which are measuring fair value through profit or loss or measuring fair value through other comprehensive income that without recycling to profit or loss. The recognized from initial recognition of financial assets that are not measured at fair value through profit or loss with fair value plus or deduct transaction cost directly related to the acquisition or issuancereceivables. Financial assets that are measured at fair value through profit or loss, transaction costs of financial assets are recognized as expense in profit or loss. HoweverTo measure the expected credit losses, trade receivables, that do not contain a significant financing component are measured at the transaction price. Subsequent measurement of debt instruments by 3 methods depends receivables have been grouped based on the classification of debt instrumentsdays past due. - Financial assets measured at amortized cost when financial assets The expected loss rates are held based on the payment profiles and the corresponding historical credit losses which are adjusted to receive cash flow under reflect the agreement current and condition forward- looking information on macroeconomic factors affecting the ability of the agreement customers to settle the receivables. The Company and its subsidiaries have identified the GDP, the unemployment rate and the consumer price index of the financial assets that generate cash flow to pay the principal countries in which it sells its goods and interest from the principal balance on the specified date only. Such financial assets have services to be calculated using the effective rate most relevant factors, and accordingly adjusts the historical loss rates based on expected changes in these factors. The impairment losses are subject to impairment assessment. Profit or loss arising from derecognized, modified or impaired will be recognized in profit or lossloss within administrative expenses. - Financial assets measured at fair value through Trade and other comprehensive income when financial assets accounts receivable (including balances with related parties) are held to receive cash flow under initially recognized by the agreement invoice amount and to sell financial assets and the agreement condition of financial assets generating cash flow that only pays the principal and interest from the principal balance on the specified date. The change of value of financial assets is recognized through other comprehensive income except loss on impairment and interest income and gain and loss on exchange rate are recognized as profit or loss upon recognized of financial assets. Earning or deficit previously recognized in other comprehensive income has to be reclassified into profit or loss. Such financial asset has to be calculated using the effective interest rate same as financial assets measured at amortized cost. - Financial assets measured at fair value through profit or loss when financial assets that do not meet the criteria for amortized cost or financial assets measured at fair value through other comprehensive income will be presented in the statement of financial position at fair value by recognizing the net change of fair value in profit or loss. Subsequent valuation of equity instruments must present equity instruments using the fair value and record profit/loss from change in fair value through profit or loss or other comprehensive income depending on equity instruments classification. Classification and valuation of financial liabilities The Group are recognized initially of financial liabilities at fair value net of transaction costs and classified as financial liabilities as financial liabilities subsequently measured at amortized cost using the effective rateremaining amount less an allowance for doubtful accounts (if any) based on a review of all outstanding amounts at year end. The amortized cost allowance for doubtful accounts is calculated taking into account fees or costs that the difference between the carrying amount of trade accounts receivable and the amount expected to be collectible. Bad debts are an integral part of immediately recognized in the effective rate. Amortization by the effective rate is presented income statement as part of financial costs in profit or loss. Derecognition of financial instruments Financial assets will be derecognized from the account when the right to receive cash flow of such asset has ended or when the right to receive cash flow of the assets is transferred including upon the transfer of all risk and consideration of that asset or transfer of internal control in that asset although there is no transfer or maintaining of nearly all risk and consideration of such asset. Financial liabilities will be derecognized from the account when the obligation of such liabilities has been complied, the obligation is cancelled or the obligation has ended. In case existing financial liabilities are changed to new liabilities from one single lender with considerably different requirements or there is a significant amendment in the requirements of existing liabilities, these are considered as recognition old liabilities and recognizing new liabilities by recognizing the difference of such carrying value under profit or loss. Impairment of financial assets Expected credit loss for financial assets measured at amortized cost or debt instrument financial asset measured at fair value through other comprehensive income and assets arising from credit facility obligation and financial guarantee agreement are assessed without having to wait for the credit event to occur firstadministrative expenses. The Group use the general approach in considering the allowance for loss doubtful accounts is assessed primarily on impairmentanalysis of payment histories and future expectations of customer payments. For trade receivables, the Group apply a simplified approach in calculating ECLs. The Group recognize a loss Allowances made are based on lifetime ECLs at each reporting date. It is based on its historical credit loss experience and adjusted for forwardwrite-looking factors specific to the debtors off patterns and the economic environmentaging of accounts receivable. Offset of financial instruments Financial assets and liabilities will be offset and presented at net balance in the statement of financial position in the case legally enforced in offsetting the recognized amount. The Group intend to pay the net balance or intends to receive assets and settle payment of liabilities at the same timeBad debts are written off when incurred.

SIGNIFICANT ACCOUNTING POLICIES. 4.1 Revenue and expense recognition Services income and service cost from construction The Group considered that most Company and its subsidiaries recognized services income from construction contracts by the percentage of completion methodbased on the construction agreement had involved a single performance obligation. The Group recognized the revenue from rendering services under construction agreement throughout the construction period by using the outcome method to measure the success assessment of work which assessed the ratio of work completed by the project engineer. The , and also compared with the percentage of work completed had been considered and calculated by comparing completion which is derived at based on the proportion of actual construction costs incurred until up to the end of the year to the total anticipated construction costs. Allowance for the total anticipated loss on construction projects will be made in the accounts as soon as the possibility of loss is ascertained. However, in the event that the received of the construction cost is more than the revenue that has to be recognized in accordance with the total percentage of work completed, it will be recorded in the account "Unearned constructure - revenue". In the case that the received for the construction is less than the revenue that has to be recognized in accordance with the percentage of work completed, it will be recorded in the account "Unbilled receivables”. In determining cost of construction that was expected services, the total anticipated construction costs are attributed to be used in the each construction agreement. The allowance for losses would be provided for the construction project in full amount when it was clear that the construction project would suffer a loss. The likelihood of contract variations claims and liquidated damages, delays in delivery or contractual penalties are taken projects taking into account in determining the revenue to be recognised, such that revenue is only recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. When the value actual cost and stage of completion of the contract cannot be reasonably measured, revenue is recognised only to the extent of contract costs incurred that are expected to be recovered. The recognised revenue which is not yet due per the contracts has been presented under the caption of “Contract asset” in the statement of financial position. The amounts then recognised as contract assets are reclassified to trade receivables when the Group’s right to consideration is unconditional such as upon completion cost of services and acceptance in profit or loss by the customer. The obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount percentage of consideration is due) from the customer is presented under the caption of “Contract liability” in the statement of financial position. Contract liabilities are recognised as revenue when the Group performs under the contract. Costs of construction contracts comprise the costs of supply, subcontractors’ charges, other services and overheads which are recognized on the percentage-of-completion method. The recognised cost of construction which have not yet been due have been shown under the caption of “Unbilled payable” in the statements of financial position. Revenue and The actual cost of system development construction incurred but not yet recognised as cost of services Revenue from system development services in profit or loss has been regarded as "Construction in progress" in the statements of financial position. Construction in progress includes the cost of raw material, direct labour and other expenses incurred for each project. Such construction in progress is valued at the lower of cost or net realisable value. Sales of goods are recognized when the subsidiary has transferred significant risks and rewards of ownership of the goods to the buyer. Sales revenue is stated at the price of the invoice, excluding VAT. for products delivered after the discount has been deducted. The Company and its subsidiaries is have recognized over time when services have been rendered taking into account the stage of completion. interest income based on period proportion basis by measuring calculating from the ratio of the services cost completed until present compared to the total estimate of services costaccrued principal. Revenue from system maintenance The Company and equipment maintenance services of its subsidiaries is have recognized as revenue over the service period under the contract on a straight-line basis. Sales income Revenue from sale of goods is recognised at the point in time when control of the asset is transferred to the customer, generally on delivery of the goods. Revenue is measured at the amount of the consideration received or receivable, excluding value added tax, of goods supplied after deducting returns and discounts. Interest income Interest income is calculated using the effective interest method and recognised on an accrual basis. Other income and expense The Group have recognised the other income and expenses based on the accrual basis. 4.2 Cash and cash equivalents Cash and cash equivalents consist of cash in hand, cash at bank, and highly liquid short-term investment with an original maturity of three months or less and not subject to withdrawal restrictions. 4.3 Financial Instruments Classification Trade accounts receivable and measurement other current receivable and allowance for doubtful accounts Applicable from January 1,2020 Trade receivables are recognized initially at the amount of financial assets Financial assets consideration that is unconditional unless they contain significant financing components, when they are classified, recognized at initial recognition, as its present value. Trade receivables are stated at the amount expected to be subsequently measured at amortized costcollectible, fair value through other comprehensive incomethe Company and its subsidiaries apply the TFRS 9 simplified approach to measuring expected credit losses which uses a simplified approach, or fair value through profit or loss. The classification of financial assets at initial recognition is driven by the Group’ business model for managing the financial assets and the contractual cash flows characteristics of the financial assets. Equity instruments can which requires expected lifetime losses to be classified and cannot be changed by two types of measurement which are measuring fair value through profit or loss or measuring fair value through other comprehensive income that without recycling to profit or loss. The recognized from initial recognition of financial assets that are not measured at fair value through profit or loss with fair value plus or deduct transaction cost directly related to the acquisition or issuancereceivables. Financial assets that are measured at fair value through profit or loss, transaction costs of financial assets are recognized as expense in profit or loss. HoweverTo measure the expected credit losses, trade receivables, that do not contain a significant financing component are measured at the transaction price. Subsequent measurement of debt instruments by 3 methods depends receivables have been grouped based on the classification of debt instrumentsdays past due. - Financial assets measured at amortized cost when financial assets The expected loss rates are held based on the payment profiles and the corresponding historical credit losses which are adjusted to receive cash flow under reflect the agreement current and condition forward-looking information on macroeconomic factors affecting the ability of the agreement customers to settle the receivables. The Company and its subsidiaries have identified the GDP, the unemployment rate and the consumer price index of the financial assets that generate cash flow to pay the principal countries in which it sells its goods and interest from the principal balance on the specified date only. Such financial assets have services to be calculated using the effective rate most relevant factors, and accordingly adjusts the historical loss rates based on expected changes in these factors. The impairment losses are subject to impairment assessment. Profit or loss arising from derecognized, modified or impaired will be recognized in profit or lossloss within administrative expenses. - Financial assets measured at fair value through other comprehensive income when financial assets Applicable prior to January 1,2020 Trade accounts receivable are held to receive cash flow under initially recognized by the agreement invoice amount and to sell financial assets and the agreement condition of financial assets generating cash flow that only pays the principal and interest from the principal balance on the specified date. The change of value of financial assets is recognized through other comprehensive income except loss on impairment and interest income and gain and loss on exchange rate are recognized as profit or loss upon recognized of financial assets. Earning or deficit previously recognized in other comprehensive income has to be reclassified into profit or loss. Such financial asset has to be calculated using the effective interest rate same as financial assets measured at amortized cost. - Financial assets measured at fair value through profit or loss when financial assets that do not meet the criteria for amortized cost or financial assets measured at fair value through other comprehensive income will be presented in the statement of financial position at fair value by recognizing the net change of fair value in profit or loss. Subsequent valuation of equity instruments must present equity instruments using the fair value and record profit/loss from change in fair value through profit or loss or other comprehensive income depending on equity instruments classification. Classification and valuation of financial liabilities The Group are recognized initially of financial liabilities at fair value net of transaction costs and classified as financial liabilities as financial liabilities subsequently measured at amortized cost using the effective rateremaining amount less an allowance for doubtful accounts (if any) based on a review of all outstanding amounts at year end. The amortized cost allowance for doubtful accounts is calculated taking into account fees or costs that the difference between the carrying amount of trade accounts receivable and the amount expected to be collectible. Bad debts are an integral part of immediately recognized in the effective rate. Amortization by the effective rate is presented income statement as part of financial costs administrative expenses. Allowance for doubtful accounts The Company and its subsidiaries provide allowance for doubtful accounts equal to the estimated collection losses that may be incurred in profit or lossthe collection of all receivables. Derecognition The estimated losses are based on a review of financial instruments Financial assets will the current status of each receivable by considering the ability to repay debt and the amount expected to be derecognized paid from the account when the right to receive cash flow of such asset has ended or when the right to receive cash flow of the assets is transferred including upon the transfer of all risk and consideration of that asset or transfer of internal control in that asset although there is no transfer or maintaining of nearly all risk and consideration of such asset. Financial liabilities will be derecognized from the account when the obligation of such liabilities has been complied, the obligation is cancelled or the obligation has ended. In case existing financial liabilities are changed to new liabilities from one single lender with considerably different requirements or there is a significant amendment in the requirements of existing liabilities, these are considered as recognition old liabilities and recognizing new liabilities by recognizing the difference of such carrying value under profit or loss. Impairment of financial assets Expected credit loss for financial assets measured at amortized cost or debt instrument financial asset measured at fair value through other comprehensive income and assets arising from credit facility obligation and financial guarantee agreement are assessed without having to wait for the credit event to occur first. The Group use the general approach in considering the allowance for loss on impairment. For trade receivables, the Group apply a simplified approach in calculating ECLs. The Group recognize a loss based on lifetime ECLs at each reporting date. It is based on its historical credit loss experience and adjusted for forward-looking factors specific to the debtors and the economic environment. Offset of financial instruments Financial assets and liabilities will be offset and presented at net balance in the statement of financial position in the case legally enforced in offsetting the recognized amount. The Group intend to pay the net balance or intends to receive assets and settle payment of liabilities at the same timedebtor.

SIGNIFICANT ACCOUNTING POLICIES. 4.1 Revenue and expense recognition Services income and service cost from construction The Group considered that most Company and its subsidiaries recognized services income from construction contracts by the percentage of completion methodbased on the construction agreement had involved a single performance obligation. The Group recognized the revenue from rendering services under construction agreement throughout the construction period by using the outcome method to measure the success assessment of work which assessed the ratio of work completed by the project engineer. The , and also compared with the percentage of work completed had been considered and calculated by comparing completion which is derived at based on the proportion of actual construction costs incurred until up to the end of the year to the total anticipated construction costs. Allowance for the total anticipated loss on construction projects will be made in the accounts as soon as the possibility of loss is ascertained. However, in the event that the received of the construction cost is more than the revenue that has to be recognized in accordance with the total percentage of work completed, it will be recorded in the account "Unearned constructure - revenue". In the case that the received for the construction is less than the revenue that has to be recognized in accordance with the percentage of work completed, it will be recorded in the account "Unbilled receivables”. In determining cost of construction that was expected services, the total anticipated construction costs are attributed to be used in the each construction agreement. The allowance for losses would be provided for the construction project in full amount when it was clear that the construction project would suffer a loss. The likelihood of contract variations claims and liquidated damages, delays in delivery or contractual penalties are taken projects taking into account in determining the revenue to be recognised, such that revenue is only recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. When the value actual cost and stage of completion of the contract cannot be reasonably measured, revenue is recognised only to the extent of contract costs incurred that are expected to be recovered. The recognised revenue which is not yet due per the contracts has been presented under the caption of “Contract asset” in the statement of financial position. The amounts then recognised as contract assets are reclassified to trade receivables when the Group’s right to consideration is unconditional such as upon completion cost of services and acceptance in profit or loss by the customer. The obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount percentage of consideration is due) from the customer is presented under the caption of “Contract liability” in the statement of financial position. Contract liabilities are recognised as revenue when the Group performs under the contract. Costs of construction contracts comprise the costs of supply, subcontractors’ charges, other services and overheads which are recognized on the percentage-of-completion method. The recognised cost of construction which have not yet been due have been shown under the caption of “Unbilled payable” in the statements of financial position. Revenue and The actual cost of system development construction incurred but not yet recognised as cost of services Revenue from system development services in profit or loss has been regarded as "Construction in progress" in the statements of financial position. Construction in progress includes the cost of raw material, direct labour and other expenses incurred for each project. Such construction in progress is valued at the lower of cost or net realisable value. Sales of goods are recognized when the subsidiary has transferred significant risks and rewards of ownership of the goods to the buyer. Sales revenue is stated at the price of the invoice, excluding VAT. for products delivered after the discount has been deducted. The Company and its subsidiaries is have recognized over time when services have been rendered taking into account the stage of completion. interest income based on period proportion basis by measuring calculating from the ratio of the services cost completed until present compared to the total estimate of services costaccrued principal. Revenue from system maintenance The Company and equipment maintenance services of its subsidiaries is have recognized as revenue over the service period under the contract on a straight-line basis. Sales income Revenue from sale of goods is recognised at the point in time when control of the asset is transferred to the customer, generally on delivery of the goods. Revenue is measured at the amount of the consideration received or receivable, excluding value added tax, of goods supplied after deducting returns and discounts. Interest income Interest income is calculated using the effective interest method and recognised on an accrual basis. Other income and expense The Group have recognised the other income and expenses based on the accrual basis. 4.2 Cash and cash equivalents Cash and cash equivalents consist of cash in hand, cash at bank, and highly liquid short-term investment with an original maturity of three months or less and not subject to withdrawal restrictions. 4.3 Financial Instruments Classification Trade accounts receivable and measurement of financial assets Financial assets other receivable and allowance for doubtful accounts Trade accounts receivable are classified, at initial recognition, as to be initially recognized by the invoice amount and subsequently measured at amortized cost, fair value through other comprehensive income, or fair value through profit or lossthe remaining amount less an allowance for doubtful accounts (if any) based on a review of all outstanding amounts at year end. The classification allowance for doubtful accounts is the difference between the carrying amount of financial assets at initial recognition is driven by the Group’ business model for managing the financial assets trade accounts receivable and the contractual cash flows characteristics of the financial assets. Equity instruments can be classified and cannot be changed by two types of measurement which are measuring fair value through profit or loss or measuring fair value through other comprehensive income that without recycling to profit or loss. The initial recognition of financial assets that are not measured at fair value through profit or loss with fair value plus or deduct transaction cost directly related to the acquisition or issuance. Financial assets that are measured at fair value through profit or loss, transaction costs of financial assets are recognized as expense in profit or loss. However, trade receivables, that do not contain a significant financing component are measured at the transaction price. Subsequent measurement of debt instruments by 3 methods depends on the classification of debt instruments. - Financial assets measured at amortized cost when financial assets are held to receive cash flow under the agreement and condition of the agreement of the financial assets that generate cash flow to pay the principal and interest from the principal balance on the specified date only. Such financial assets have amount expected to be calculated using the effective rate and collectible. Bad debts are subject to impairment assessment. Profit or loss arising from derecognized, modified or impaired will be immediately recognized in profit or loss. - Financial assets measured at fair value through other comprehensive the income when financial assets are held to receive cash flow under the agreement and to sell financial assets and the agreement condition of financial assets generating cash flow that only pays the principal and interest from the principal balance on the specified date. The change of value of financial assets is recognized through other comprehensive income except loss on impairment and interest income and gain and loss on exchange rate are recognized as profit or loss upon recognized of financial assets. Earning or deficit previously recognized in other comprehensive income has to be reclassified into profit or loss. Such financial asset has to be calculated using the effective interest rate same as financial assets measured at amortized cost. - Financial assets measured at fair value through profit or loss when financial assets that do not meet the criteria for amortized cost or financial assets measured at fair value through other comprehensive income will be presented in the statement of financial position at fair value by recognizing the net change of fair value in profit or loss. Subsequent valuation of equity instruments must present equity instruments using the fair value and record profit/loss from change in fair value through profit or loss or other comprehensive income depending on equity instruments classification. Classification and valuation of financial liabilities The Group are recognized initially of financial liabilities at fair value net of transaction costs and classified as financial liabilities as financial liabilities subsequently measured at amortized cost using the effective rate. The amortized cost is calculated taking into account fees or costs that are an integral part of the effective rate. Amortization by the effective rate is presented as part of financial costs administrative expenses. Allowance for doubtful accounts The Company and its subsidiaries provide allowance for doubtful accounts equal to the estimated collection losses that may be incurred in profit or lossthe collection of all receivables. Derecognition The estimated losses are based on a review of financial instruments Financial assets will the current status of each receivable by considering the ability to repay debt and the amount expected to be derecognized paid from the account when the right to receive cash flow of such asset has ended or when the right to receive cash flow of the assets is transferred including upon the transfer of all risk and consideration of that asset or transfer of internal control in that asset although there is no transfer or maintaining of nearly all risk and consideration of such asset. Financial liabilities will be derecognized from the account when the obligation of such liabilities has been complied, the obligation is cancelled or the obligation has ended. In case existing financial liabilities are changed to new liabilities from one single lender with considerably different requirements or there is a significant amendment in the requirements of existing liabilities, these are considered as recognition old liabilities and recognizing new liabilities by recognizing the difference of such carrying value under profit or loss. Impairment of financial assets Expected credit loss for financial assets measured at amortized cost or debt instrument financial asset measured at fair value through other comprehensive income and assets arising from credit facility obligation and financial guarantee agreement are assessed without having to wait for the credit event to occur first. The Group use the general approach in considering the allowance for loss on impairment. For trade receivables, the Group apply a simplified approach in calculating ECLs. The Group recognize a loss based on lifetime ECLs at each reporting date. It is based on its historical credit loss experience and adjusted for forward-looking factors specific to the debtors and the economic environment. Offset of financial instruments Financial assets and liabilities will be offset and presented at net balance in the statement of financial position in the case legally enforced in offsetting the recognized amount. The Group intend to pay the net balance or intends to receive assets and settle payment of liabilities at the same timedebtor.