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Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 31 DECEMBER 20094. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)(h)Trade and other receivablesTrade receivables are carried at anticipated realisable value. Bad debts are written off and specific allowances aremade for trade receivables considered to be doubtful of collection. The allowance is established when there isobjective evidence that the Group and the Company will not be able to collect all amounts due according to theoriginal terms of receivables.(i)Cash and cash equivalentsFor the purpose of the Cash Flow Statements, cash and cash equivalents comprise cash on hand, deposits heldat call with banks, other short term, highly liquid investments with original maturities of three months or less andbank overdrafts. Deposits held as pledged securities for term loans granted are not included as cash and cashequivalents.Bank overdrafts are included within borrowings in current liabilities in the balance sheet.(j)Share capital(i) ClassificationOrdinary share with discretionary dividends are classified as equity. Other shares are classified as equity and/or liability according to the economic substance of the particular instrument.Distribution to holders of a financial instrument classified as an equity instrument is charged directly toequity.(ii)Share issue expensesIncremental external costs directly attributable to the issuance of new shares or options are shown in equityas a deduction, net of tax from the proceeds.(iii)Dividend to shareholders of the CompanyDividends are recognised as a liability in the period in which they are declared.(k)Bonds, notes, debentures and borrowingsBonds, notes and debentures, are stated at the net proceeds received on issue. The finance costs which representthe difference between the net proceeds and the total amount of the payments of these borrowings are allocatedto periods over the term of the borrowings at a constant rate on the carrying amount and are charged to theIncome Statement.Interests, dividends, losses and gains relating to a financial instrument, or a component part, classified as a liabilityis reported within finance cost in the Income Statement.Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement ofthe liability for at least twelve months after the balance sheet date.Annual Report 2009 • 185