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Financial
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percentage of the eligible employee’s salary and debited to Statement of Profit and Loss.
The Company operates a defined benefit gratuity plan with approved gratuity fund, and contributions are made to a
separately administered approved gratuity fund. Gratuity is a defined benefit obligation.
The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method.
Remeasurements comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in
net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest
on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit
to retained earnings through other comprehensive income in the period in which they occur. Remeasurements are not
reclassified to statement of profit & loss in subsequent periods.
Past service costs are recognised in statement of profit & loss in the period of plan amendment.
Compensated absences and other benefits like gratuity which are not expected to occur within twelve months after the
end of the period in which the employee renders the related services are recognized as a non-current liability at the present
value of the defined benefit obligation at the balance sheet date.
l. Employee Share-based payments
Employees (including senior executives) of the Group receive remuneration in the form of share-based payments, whereby
employees render services as consideration for equity instruments (equity-settled transactions).
Equity-settled transactions
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an
appropriate valuation model. That cost is recognised, together with a corresponding increase in share-based payment
(SBP) reserves in equity, over the period in which the performance and/or service conditions are fulfilled in employee
benefits expense. The cumulative expense recognised for equity-settled transactions at each reporting date until the
vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of
equity instruments that will ultimately vest. The statement of profit and loss expense or credit for a period represents the
movement in cumulative expense recognised as at the beginning and end of that period and is recognised in employee
benefits expense.
The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings
per share.
m. Leases
The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at
the inception of the transaction. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on
the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not
explicitly specified in an arrangement.
For arrangements entered into prior to 1 April 2015, the Company has determined whether the arrangement contain lease
on the basis of facts and circumstances existing on the date of transition.
A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the
risks and rewards incidental to ownership to the Company is classified as a finance lease.
Finance leases are capitalised at the commencement of the lease at the inception date fair value of the leased property or, if
lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and
reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance
Notes on the standalone financial statements
for the year ended 31 March 2017