2.2 Summary of material accounting policies

a) Use of estimates

The preparation of financial statements in conformity
with the principles of Ind AS requires the management
to make judgements, estimates and assumptions that
effect the reported amounts of revenues, expenses,
assets and liabilities and the disclosure of contingent
liabilities, at the end of the reporting period. Although

these estimates are based on the management's best
knowledge of current events and actions, uncertainty
about these assumptions and estimates could result
in the outcomes requiring a material adjustment to the
carrying amounts of assets or liabilities in future periods.

The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is
revised if the revision affects only that period, or in the
period of the revision and future periods if the revision
affects both current and future periods.

In particular, information about the significant areas
of estimation, uncertainty and critical judgements
in applying accounting policies that have the most
significant effect on the amounts recognised in the
standalone financial statements are disclosed in note 30.

b) Business combination and goodwill

Business combinations are accounted for using the
acquisition method.

The Company determines that it has acquired a business
when the acquired set of activities and assets include
an input and a substantive process that together
significantly contribute to the ability to create outputs.
The acquired process is considered substantive if it
is critical to the ability to continue producing outputs,
and the inputs acquired include an organised workforce
with the necessary skills, knowledge, or experience to
perform that process or it significantly contributes to the
ability to continue producing outputs and is considered
unique or scarce or cannot be replaced without
significant cost, effort, or delay in the ability to continue
producing outputs.

Acquisition method

The acquisition method of accounting is used to account for
all business combinations. The consideration transferred
for the acquisition of a subsidiary comprises the

(i) fair values of the assets transferred;

(ii) I iabilities incurred to the former owners of the
acquired business;

(iii) equity interests issued by the Company; and

(iv) fair value of any asset or liability resulting from a
contingent consideration arrangement.

However, the following assets and liabilities acquired
in a business combination are measured at the basis
indicated below:

i) Deferred tax assets or liabilities, and the assets or
liabilities related to employee benefit arrangements
are recognised and measured in accordance with
Ind AS 12 Income Tax and Ind AS 19 Employee
Benefits respectively.

At the acquisition date, the identifiable assets acquired
and the liabilities assumed are recognised at their
fair value.

The excess of the

(i) consideration transferred;

(ii) amount of any non-controlling interest in the
acquired entity, and

(iii) acquisition-date fair value of any previous equity
interest in the acquired entity

over the fair value of the net identifiable assets acquired
and liabilities assumed is recorded as goodwill. If those
amounts are less than the fair value of the net identifiable
assets of the business acquired, the difference is
recognised in other comprehensive income and
accumulated in equity as capital reserve provided there
is clear evidence of the underlying reasons for classifying
the business combination as a bargain purchase. In other
cases, the bargain purchase gain is recognised directly
in equity as capital reserve.

After initial recognition, goodwill is measured at cost less
any accumulated impairment losses. For the purpose
of impairment testing, goodwill acquired in a business
combination is, from the acquisition date, allocated to
each of the Companies cash-generating units that are
expected to benefit from the combination, irrespective
of whether other assets or liabilities of the acquiree are
assigned to those units. A cash generating unit to which
goodwill has been allocated is tested for impairment
annually, or more frequently when there is an indication
that the unit may be impaired.

Where settlement of any part of cash consideration is
deferred, the amounts payable in the future are discounted
to their present value as at the date of exchange. The
discount rate used is the entity's incremental borrowing
rate, being the rate at which a similar borrowing could be
obtained from an independent financier under comparable
terms and conditions.

Any contingent consideration to be transferred by the
acquirer is recognised at fair value at the acquisition date.
Contingent consideration is classified either as equity

or a financial liability. Amounts classified as a financial
liability are subsequently remeasured to fair value with
changes in fair value

Contingent consideration that is classified as equity
is not re-measured at subsequent reporting dates and
subsequent its settlement is accounted for within equity.

I f the business combination is achieved in stages,
the acquisition date carrying value of the acquirer's
previously held equity interest in the acquiree is
remeasured to fair value at the acquisition date. Any
gains or losses arising from such remeasurement are
recognised in the statement of profit and loss or other
comprehensive income, as appropriate.

c) Current versus non-current classification

The Company presents assets and liabilities in
the balance sheet based on current/non-current
classification. An asset is treated as current when it is:

i) Expected to be realised or intended to be sold or
consumed in normal operating cycle

ii) Held primarily for the purpose of trading

iii) It is expected to be realised within twelve months
after the reporting period, or

iv) Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least
twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

i) It is expected to be settled in normal operating cycle

ii) Held primarily for the purpose of trading

iii) It is due to be settled within twelve months after the
reporting period, or

iv) There is no unconditional right to defer the
settlement of the liability for at least twelve months
after the reporting period.

The Company classifies all other liabilities as non¬
current.

Deferred tax assets and liabilities are classified as non¬
current assets and liabilities.

The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash and
cash equivalents. The Company has identified twelve
months as its operating cycle.

d) Foreign currencies

The Company's financial statements are presented in
?, Functional currency is the currency of the primary
economic environment in which the Company operates
and is normally the currency in which the Company
primarily generates and expends cash.

Transactions and balances

Transactions in foreign currencies are initially recorded
in the functional currencies using the spot rates at the
date when the transaction first qualifies for recognition.
However, for practical reasons, the Company uses an
average rate if the average approximates the exchange
rates at the date of the transaction.

Monetary assets and liabilities denominated in foreign
currencies are translated at the functional currency spot
rates of exchange at the reporting date.

Exchange differences arising on settlement or translation
of monetary items are recognised in profit and loss.

Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated using
the exchange rates at the dates of the initial transactions.

e) Fair value measurement

The Company measures financial instruments such
as Investment in mutual funds and similar financial
instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the
liability takes place either:

i) In the principal market for the asset or liability, or

ii) In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must be
accessible by the Company.

The fair value of an asset or a liability is measured using
the assumptions that market participants would use
when pricing the asset or liability, assuming that market
participants act in their economic best interest.

A fair value measurement of a non-financial asset takes
into account a market participant's ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant that
would use the asset in its highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the use
of unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows,
based on the lowest level input that is significant to the
fair value measurement as a whole:

i) Level 1 — Quoted (unadjusted) market prices in
active markets for identical assets or liabilities.

ii) Level 2 — Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is directly or indirectly observable.

iii) Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is unobservable.

For assets and liabilities that are recognised in
the statements on a recurring basis, the Company
determines whether transfers have occurred between
levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the
fair value measurement as a whole) at the end of each
reporting period.

The Company's management determines the policies and
procedures for both recurring fair value measurement,
such as, Investment in mutual funds, and similar financial
instruments at fair value. The team comprises of the
Chief Financial Officer (CFO) and Finance Controller.

External valuers are involved for valuation of significant
assets and liabilities. Involvement of external valuers
is decided on the basis of nature of transaction and
complexity involved. Selection criteria include market
knowledge, reputation, independence and whether
professional standards are maintained.

At each reporting date, the finance team analyses the
movements in the values of assets and liabilities which
are required to be remeasured or re-assessed as per
the Company's accounting policies. For this analysis,
the team verifies the major inputs applied in the latest
valuation by agreeing the information in the valuation
computation to contracts and other relevant documents.
A change in fair value of assets and liabilities is also
compared with relevant external sources to determine
whether the change is reasonable.

For the purpose of fair value disclosures, the Company
has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset
or liability and the level of the fair value hierarchy as
explained above.

f) Property, plant and equipment

Property, plant and equipment ("PPE") are stated at
cost, less accumulated depreciation and accumulated
impairment loss, if any. Such cost includes the
expenditure directly attributable to bringing the asset to
the location and condition necessary for it to be capable
of operating in the manner intended by management.

Subsequent costs on a PPE are included in the asset's
carrying amount only when it is probable that future
economic benefits associated with the item will flow to
the Company and the cost of the item can be measured
reliably. The carrying amount of any component
accounted for as a separate asset is derecognised when
replaced. Rest of the subsequent costs are charged to
the statement of profit and loss in the reporting period ln
which they are incurred.

Capital work-in-progress is stated at cost, net of
accumulated impairment loss, if any.

Depreciation on all property plant and equipment
are provided on a straight line method based on the
estimated useful life of the asset, which is as follows:

Leasehold improvements are amortised over five years
or life based on lease period.

The useful life of furniture and fittings, plant and
machinery and office equipment are estimated as 5
years, 5-10 years and 3-5 years respectively. These
lives are lower than those indicated in schedule II to
Companies Act 2013.

The management has estimated the useful lives and
residual values of all property, plant and equipment and
adopted useful lives based on management's technical
assessment of their respective economic useful lives. The
residual values, useful lives and methods of depreciation

of property, plant and equipment are reviewed at each
financial year end and adjusted prospectively (if any),

Depreciation on the assets purchased during the year is
provided on pro-rata basis from the date of purchase of
the assets.

An item of property, plant and equipment and any
significant part initially recognised is derecognised
upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or loss
arising on derecognition of the asset (calculated as the
difference between the net disposal proceeds and the
carrying amount of the asset) is included in the statement
of profit and loss when the asset is derecognised.

g) Goodwill and Other intangible assets

Goodwill represents the cost of acquired business as
established at the date of acquisition of the business in
excess of the acquirer's interest in the net fair value of
the identifiable assets, liabilities and contingent liabilities
less accumulated impairment losses, if any. Goodwill
is tested for impairment annually or when events or
circumstances indicate that the implied fair value of
goodwill is less than the carrying amount

Intangible assets (mainly includes software and trade
marks) acquired separately are measured on initial
recognition at cost. The amortisation period and the
amortisation method for an Intangible asset with a
finite useful life are reviewed at least at the end of each
reporting period. Changes in the expected useful life or
the expected pattern of consumption of future economic
benefits embodied in the asset are considered to modify
the amortisation period or method, as appropriate, and
are treated as changes in accounting estimates. The
amortisation expense on intangible assets with finite
lives is recognised in the statement of profit and loss
unless such expenditure forms part of carrying value of
another asset.

Amortisation on intangible assets are provided on a
straight line method based on the estimated useful life
of the asset, which is as follows:

An intangible asset is derecognised upon disposal (i.e. at
the date the recipient obtains control) or when no future
economic benefits are expected from its use or disposal.
Any gains or losses arising from derecognition of an
intangible asset are measured as the difference between
the net disposal proceeds and the carrying amount of the
asset and are recognised in the statement of profit and
loss when the asset is derecognised.

Intangible assets acquired in business combination,
include non-compete and customer relationship which
are amortised over the period of five years on straight
line method basis.

The management has estimated the useful lives and
residual values of all intangible assets and adopted useful
lives based on management's technical assessment
of their respective economic useful lives. The residual
values, useful lives and methods of amortisation of
intangible assets are reviewed at each financial year end
and adjusted prospectively (if any),

h) Leases

The Company assesses at contract inception whether a
contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset
for a period of time in exchange for consideration.

Company as a lessee

The Company applies a single recognition and
measurement approach for all leases, except for short¬
term leases and leases of low-value assets. The Company
recognises lease liabilities to make lease payments and
right-of-use assets representing the right-to-use the
underlying assets.

i) Right of use assets

The Company recognises right-of-use assets at the
commencement date of the lease (i.e. the date the
underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated
depreciation and accumulated impairment losses,
and adjusted for any remeasurement of lease
liabilities. The cost of right-of-use assets includes
the amount of lease liabilities recognised, initial
direct costs incurred, and lease payments made
at or before the commencement date less any
lease incentives received. Right-of-use assets are
depreciated on a straight-line basis over the shorter
of the lease term and the estimated useful lives of
the assets.

If ownership of the leased asset transfers to the
Company at the end of the lease term or the

cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated
useful life of the asset.

The right-of-use assets are also subject to
impairment. Refer to the accounting policies in
section (r) Impairment of non-financial assets.

ii) Lease liabilities

At the commencement date of the lease, the
Company recognises lease liabilities measured at
the present value of lease payments to be made over
the lease term. The lease payments include fixed
payments (including in substance fixed payments)
less any lease incentives receivable, variable lease
payments that depend on an index or a rate, and
amounts expected to be paid under residual value
guarantees. The lease payments also include the
exercise price of a purchase option reasonably
certain to be exercised by the Company and
payments of penalties for terminating the lease, if
the lease term reflects the Company exercising the
option to terminate. Variable lease payments that
do not depend on an index or a rate are recognised
as expenses (unless they are incurred to produce
inventories) in the period in which the event or
condition that triggers the payment occurs.

In calculating the present value of lease payments,
the Company uses its incremental borrowing rate at
the lease commencement date because the interest
rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made.
In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change
in the lease term, a change in the lease payments
(e.g., changes to future payments resulting from a
change in an index or rate used to determine such
lease payments) or a change in the assessment of
an option to purchase the underlying asset.

iii) Short-term leases

The Company applies the short-term lease
recognition exemption to its properties (i.e. those
leases that have a lease term of 12 months or less
from the commencement date and do not contain
a purchase option). It also applies the lease of
low-value assets recognition exemption to leases
of office equipment that are considered to be
low value. Lease payments on short-term leases
and leases of low-value assets are recognised as
expense on a straight-line basis over the lease term.

i) Inventories

Inventories are valued at lower of cost and net realisable
value. Cost is determined on first in first out basis.
Inventory cost includes purchase price and other
directly attributable costs (such as taxes other than
those subsequently recovered from the tax authorities),
freight inward and other related incidental expenses
incurred in bringing the inventory to its present condition
and location.

Net realisable value is the estimated selling price in
the ordinary course of business less estimated cost
necessary to make the sale.

j) Revenue recognition

Revenue from contracts with customers is recognised
when control of the goods or services are transferred to
the customer, at an amount that reflects the consideration
to which the Company expects to be entitled in exchange
for those goods or services. The Company has concluded
that it is the principal in its revenue arrangements
because it typically controls the goods or services before
transferring them to the customers.

The disclosures of significant accounting judgements,
estimates and assumptions relating to revenue from
contracts with customers are provided in note 30 of
standalone financial statements.

Performance obligation

At contract inception, the Company assess the goods
and services promised in contracts with customers
and identifies various performance obligations to
provide distinct goods and services to the customers.
The Company has determined following distinct
goods and services that represent its primary
performance obligation.

The transaction price of goods sold and services
rendered is net of variable consideration on account
of various elements like discounts etc. offered by the
Company as part of the contract.

Delivery services includes:

• Revenue from Express Parcel Services

• Revenue from Part Truck Load Services (PTL)

• Revenue from Truck Load Services (TL)

• Revenue from cross - border services

The Company recognises revenue from delivery and
logistics services over time in accordance with Ind

AS 115. The following methods and explanations are
provided as required by paragraph 124 of the Standard:

(a) Methods Used to Recognise Revenue:

Revenue for delivery and logistics contracts that
extend over time is recognised using the input
method, specifically based on the cost incurred
relative to the total expected cost, as they are
satisfied over the contract term, which generally
represents the transit period including the
incomplete trips at the reporting date. The transit
period can vary based upon the mode of transport,
generally a couple days for over the road, rail, and
air transportation, or several weeks in the case of
an ocean shipment. The Company also provides
certain ancillary logistics services, such as handling
of goods, customs clearance services etc. The
service period for these services is usually for a
very short duration, generally few days or weeks.
Hence, revenue from these services is recognised
over the service period as the Company performs
the primary obligation of delivery of goods.

The input method involves measuring revenue based
on the proportion of costs incurred to date relative to
total estimated costs of the performance obligation.

(b) Explanation of Method Choice:

The input method faithfully depicts the transfer of
control to the customer, as it reflects the entity's
performance in fulfilling its obligations. As Company
incurs costs evenly over the term of service such
as fuel, labor, and logistics costs. This approach
provides a reliable measure of progress toward
complete satisfaction of the performance obligation.

This method aligns with the economic reality of
the services delivered and ensures that revenue
recognition mirrors the pattern in which services
are rendered and consumed.

Other allied services includes:

• Revenue from supply chain services

Revenue from these services are recognised over time
as the customer simultaneously avails the benefits of
these services. Hence, the revenue from such services
is recognised on a monthly basis, basis the amount fixed
as per the agreements.

The Company collects Goods & Service Tax (GST) GST
on behalf of the government and, therefore, it is not an
economic benefit flowing to the Company. Hence, it is
excluded from revenue.

Interest

Interest income is recognised when it is probable that the
economic benefits will flow to the Company and amount
of income can be measured reliably. Interest income is
included under the head "other income" in the statement
of profit and loss.

Contract balances:

Contract assets

The Company recognised a when there exists a right to
receive consideration in exchange for goods or services
already transferred to the customer which is conditional
on something other than passage of time (e.g. The
Company's future performance obligation).

Trade receivables

A receivable represents the Company's right to an
amount of consideration that is unconditional (i.e. only
the passage of time is required before payment of the
consideration is due).

Contract liabilities

The Company recognises a contract liability for an
obligation to transfer goods or services to a customer
for which the Company has received consideration (or
the amount is due) from the customer.

k) Retirement and other employee benefits

Retirement benefit in the form of provident fund and social
security is a defined contribution scheme. The Company
has no obligation, other than the contribution payable
to the provident fund/social security. The Company
recognises contribution payable to the provident fund
scheme/social security scheme as an expense, when an
employee renders the related service. If the contribution
payable to the scheme for service received before the
balance sheet date exceeds the contribution already
paid, the deficit payable to the scheme is recognised as
a liability after deducting the contribution already paid.
If the contribution already paid exceeds the contribution
due for services received before the balance sheet date,
then excess is recognised as an asset (representing a
reduction in future payment or a cash refund).

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, 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 OCI in the period in which they
occur. Remeasurements are not reclassified to statement
of profit and loss in subsequent periods.

The Company recognises the following changes in the net
defined benefit obligation as an expense in the statement
of profit and loss:

Past service costs are recognised in profit and loss on
the earlier of:

i) The date of the plan amendment or curtailment, and

ii) The date that the Company recognises related
restructuring costs.

Net interest is calculated by applying the discount rate to
the net defined benefit liability. The Company recognises
the following changes in the net defined benefit obligation
as an expense in the statement of profit and loss:

i) Service costs comprising current service costs,
past-service costs, gains and losses on curtailments
and non-routine settlements; and

ii) Net interest expense.

Compensated Absence

Accumulated leave, which is expected to be utilised
within the next 12 months, is treated as short-term
employee benefit. The Company measures the expected
cost of such absences as the additional amount that it
expects to pay as a result of the unused entitlement that
has accumulated at the reporting date. The Company
recognises expected cost of short-term employee
benefit as an expense, when an employee renders the
related service.

The Company also operates a leave encashment plan.
The Company treats accumulated leave expected to be
carried forward beyond twelve months, as long-term
employee benefit for measurement purposes. Such long¬
term compensated absences are provided for based on
the actuarial valuation using the projected unit credit
method at the reporting date. Actuarial gains/losses are
immediately taken to the statement of profit and loss and
are not deferred. The obligations are presented as current
liabilities in the balance sheet if the entity does not have
an unconditional right to defer the settlement for at least
twelve months after the reporting date.

l) Taxes

Current income tax

Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws
used to compute the amount are those that are enacted
or substantively enacted, at the reporting date in the
country where the Company operates and generates
taxable income.

Current income tax relating to items recognised outside
profit and loss is recognised outside profit and loss
(either in other comprehensive income or in equity).
Current tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity.
Management considers whether it is probable that a
taxation authority will accept an uncertain tax treatment.
The Company shall reflect the effect of uncertainty for
each uncertain tax treatment by using either most likely
method or expected value method, depending on which
method predicts better resolution of the treatment.

Advance taxes and provisions for current income taxes
are presented in the balance sheet after off-setting
advance tax paid and income tax provision arising in
the same tax jurisdiction and where the relevant tax
paying units intends to settle the asset and liability on a
net basis.

Deferred taxes

Deferred tax is provided using the liability method on
temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial
reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable
temporary differences, except:

i) When the deferred tax liability arises from the initial
recognition of goodwill or an asset or liability in a
transaction that is not a business combination and,
at the time of the transaction, affects neither the
accounting profit nor taxable profit and loss and
does not give rise to equal taxable and deductible
temporary differences.

ii) In respect of taxable temporary differences
associated with investments in subsidiaries and
associates, when the timing of the reversal of the
temporary differences can be controlled and it is
probable that the temporary differences will not
reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax
assets are recognised to the extent that it is probable
that taxable profit will be available against which the
deductible temporary differences, and the carry forward
of unused tax credits and unused tax losses can be
utilised, except:

i) When the deferred tax asset relating to the
deductible temporary difference arises from
the initial recognition of an asset or liability in a
transaction that is not a business combination and,
at the time of the transaction, affects neither the
accounting profit nor taxable profit and loss and
does not give rise to equal taxable and deductible
temporary differences.

ii) I n respect of deductible temporary differences
associated with investments in subsidiaries and
associates, deferred tax assets are recognised only
to the extent that it is probable that the temporary
differences will reverse in the foreseeable future
and taxable profit will be available against which
the temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will
be available to allow all or part of the deferred tax asset
to be utilised. Unrecognised deferred tax assets are re¬
assessed at each reporting date and are recognised to
the extent that it has become probable that future taxable
profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates
(and tax laws) that have been enacted or substantively
enacted at the reporting date.

Deferred tax relating to items recognised outside profit
and loss is recognised outside profit and loss (either in
other comprehensive income or in equity). Deferred tax
items are recognised in correlation to the underlying
transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset
if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred
taxes relate to the same taxable entity and the same
taxation authority.

m) Share-based payments

Employees (including senior executives) of the
Company receive remuneration in the form of share-
based payments, whereby employees render services
as consideration for equity instruments (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 Company's best estimate of
the number of equity instruments that will ultimately vest.
The expense or credit in the statement of profit and loss
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.

Service and non-market performance conditions are not
taken into account when determining the grant date fair
value of awards, but the likelihood of the conditions being
met is assessed as part of the Company's best estimate
of the number of equity instruments that will ultimately
vest. Market performance conditions are reflected within
the grant date fair value. Any other conditions attached to
an award, but without an associated service requirement,
are considered to be non-vesting conditions. Non-vesting
conditions are reflected in the fair value of an award and
lead to an immediate expensing of an award unless there
are also service and/or performance conditions.

No expense is recognised for awards that do not
ultimately vest because non-market performance
and/or service conditions have not been met. Where
awards include a market or non-vesting condition, the
transactions are treated as vested irrespective of whether
the market or non-vesting condition is satisfied, provided
that all other performance and/or service conditions
are satisfied.

When the terms of an equity-settled award are modified,
the minimum expense recognised is the expense had
the terms had not been modified, if the original terms of
the award are met. An additional expense is recognised
for any modification that increases the total fair value
of the share-based payment transaction or is otherwise
beneficial to the employee as measured at the date of
modification. Where an award is cancelled by the entity
or by the counterparty, any remaining element of the fair

value of the award is expensed immediately through
profit and loss.

The dilutive effect of outstanding options is reflected as
additional share dilution in the computation of diluted
earnings per share.

Further, the Company's employees are granted share
appreciation right (SARs), settled in cash. The liability
of SARs is measured initially and at the end of each
reporting period until settled, at the fair value of the SARs
by applying option pricing model, taking into account the
terms and conditions on which the SARs were granted
and the extent to which the employees have rendered the
services to date.

n) Segment reporting

Segments are identified based on the manner in which
the Chief Operating Decision Maker ('CODM') decides
about resource allocation and reviews performance.
Segment results that are reported to the CODM include
items directly attributable to a segment as well as those
that can be allocated on a reasonable basis.

o) Earning per share

Basic earnings per share are calculated by dividing the
net profit and loss for the period attributable to equity
shareholders (after deducting preference dividends
and attributable taxes) by the weighted average number
of equity and preference shares outstanding during
the period.

For the purpose of calculating diluted earnings per share,
the net profit and loss for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects
of all dilutive potential equity shares.