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Notes on the consolidated financial statements
for the year ended 31 March 2017
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.
m. 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.
n. 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
charges are recognised in finance costs in the statement of profit and loss. Contingent rentals are recognised as expenses
in the periods in which they are incurred.
A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company
will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of
the asset and the lease term.
Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis over the
lease term however, rent expenses shall not be straight-lined, if escalation in rentals is in line with expected inflationary
cost.
o. Provisions, Contingent liabilities and Contingent assets
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past events
and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and
a reliable estimate can be made of the amount of the obligation.