2 (A) Material Accounting Policies2.1 Basis of preparation

(a) Statement of compliance with Ind AS

These standalone financial statements have been
prepared in accordance with the Indian Accounting
Standards ('Ind AS’) as per the Companies (Indian
Accounting Standards) Rules, 2015, as amended from
time to time, notified under section 133 of the Companies
Act, 2013 ('Act’) and other relevant provisions of the Act.

The standalone financial statements of the Company
for the year ended 31 March 2026, which includes the
standalone financial statements of Thomas Cook (India)
Limited Employee Trust for the year ended on that date,
were approved by the board of directors and authorised
for issue on 12 May 2026.

Details of the Company’s accounting policies, including
changes thereto, are included in Note 2.

(b) Basis of measurement

Standalone financial statements have been prepared on
a historical cost basis, except for the following items,
which are measured on an alternative basis on each
reporting date.

(c) Functional and presentation currency

The standalone financial statements are presented
in Indian Rupees "(INR)" or "(Rs.)" which is also the
Company’s functional currency and all values are
rounded off to nearest millions ('000,000) except where
otherwise indicated. Wherever the amount is represented
as '0’ ('zero’) it construes a value less than half million.

2.2 Foreign currency

A Company’s functional currency is the currency of
the primary economic environment in which an entity
operates and is normally the currency in which the entity
primarily generates and expends cash.

Transactions and balances

(i) Initial recognition

On initial recognition, foreign currency transactions are
translated into the functional currency using exchange
rates at the date of the transaction.

(ii) Subsequent recognition

As at the reporting date, non-monetary items which
are carried at historical cost denominated in a foreign
currency are reported using the exchange rate at the date
of the transaction. Foreign exchange gains and losses
resulting from the settlement of such transactions and
from the translation of monetary assets and liabilities
denominated in foreign currencies at the period end
exchange rates are recognised in profit or loss. Non¬
monetary items that are measured at fair value in a
foreign currency are translated using the exchange
rates at the date when the fair value was determined.
Translation differences on assets and liabilities carried
at fair value are reported as part of the fair value gain or
loss in the statement of profit and loss.

All monetary items denominated in foreign currency are
restated at Foreign Exchange Dealers Association of
India (FEDAI) rates and the exchange variations arising
out of settlement / conversion at the FEDAI rates are
recognised in the statement of profit and loss.

Profit or loss on purchase and sale of foreign exchange
by the Company in its capacity as Authorised Foreign
Exchange Dealer are accounted as a part of the revenue.

2.3 Revenue recognition

Revenue is measured based on transaction price,
which is the consideration paid for services. Revenue
is recognised upon transfer of control of promised
services to customers in an amount that reflects the
consideration which the Company expects to receive in
exchange for those services. Revenue from rendering of
services is net of Indirect taxes and discounts.

(a) Income from operations

The Company earns revenue from travel and related
services, financial services and leisure hospitality &
resorts business

(i) Financial services

It comprise of income arising from the buying and
selling of foreign currencies on the net margins earned,
commissions on sale of foreign currency denominated
prepaid cards, incentives earned in relation to these cards
and agency commissions on currency remittances.
Revenue from financial services are recognized at the
time of services rendered.

(ii) Travel and related services

It comprises of leisure tours packages within India and
outside India along with travel related services viz travel
insurance and visa services. Revenue on leisure tours
/ holiday’s packages are recognized on the completion
of the performance obligation which is on the date of
departure of the tour.

It also includes income from the sale of airline tickets is
recognized as an agent on the basis of net commission
earned, at the time of issuance of tickets, as the
Company does not assume any performance obligation
post the confirmation of the issuance of an airline ticket
to the customer. Performance linked bonuses from
airlines are recognized as and when the performance
obligations under the schemes are achieved.

(iii) Leisure hospitality & resorts business

Income from resorts comprising of sale of food
and beverages, room rentals and other services are
recognized when these are sold and as services are
rendered.

(b) Contract balances

(i) Contract assets

A contract asset is the right to consideration in exchange
for services rendered to the customer. If the Company
performs by rendering services to a customer before
the customer pays consideration or before payment
is due, a contract asset is recognised for the earned
consideration that is conditional.

(ii) Contract liabilities

A contract liability is the obligation to transfer services
to a customer for which the Company has received
consideration from the customer. If a customer pays
consideration before the Company renders services to
the customer, a contract liability is recognised when

the payment is made. Contract liabilities are recognised
as revenue when the Company performs under the
contract.

(c) Customer loyalty program

The Company operates a customer loyalty programme.
The loyalty programme allows customers to accumulate
points on their travel spending as per the scheme.
The points give rise to a performance obligation.
Consideration received is allocated between the sale
of travel package and contractual liability for points
issued. Consideration allocated to reward points as
a contractual liability is deferred. Reward points are
redeemable by the customers in future periods for
booking either holiday, flight or hotel with the Company
and reward points which remain unredeemed at the time
of expiry of such points is recognised as revenue.

2.4 Taxes on income

The income tax expense or credit for the period is the tax
payable on the current period’s taxable income based
on the applicable income tax rate for each jurisdiction
adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax
losses.

Income tax for the period comprises of current tax and
deferred tax. Income tax is recognised in the statement
of profit and loss except to the extent that it relates to
items recognised in 'Other comprehensive income or
directly in equity, in which case the tax is recognised
in 'Other comprehensive income’ or directly in equity,
respectively.

(a) Current tax:

Current tax is the expected tax payable on the taxable
income for the year, using tax rates enacted or
substantively enacted at the Balance Sheet date, and any
adjustments to tax payable in respect of previous years.
Interest income/expenses and penalties, if any related to
income tax are included in current tax expense.

Management periodically evaluates positions taken in
tax returns with respect to situations in which applicable
tax regulation is subject to interpretation. It establishes
provisions where appropriate on the basis of amounts
expected to be paid to the tax authorities. The company
offsets the current tax assets as against the liability for
provision for tax.

(b) Deferred tax:

Deferred tax is recognised using the balance sheet
approach. Deferred tax assets and liabilities are
recognised for timing differences arising between the
tax base of assets and liabilities and their carrying

amount, except when the deferred tax arises from the
initial recognition of an asset or liability in a transaction
that is not a business combination and affects neither
accounting nor taxable profit or loss at the time of the
transaction.

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. Deferred taxes on items classified
under Other comprehensive income ('OCI') has been
recognised in OCI.

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. Deferred tax assets and liabilities are measured
using substantively enacted tax rates expected to apply
to taxable income in the years in which the temporary
differences are expected to be received or settled.
Deferred tax assets and liabilities are offset when they
relate to income taxes levied by the same taxation
authority and the relevant entity intends to settle its
current tax assets and liabilities on a net basis.

Deferred tax assets include Minimum Alternative Tax
(MAT) paid in accordance with the tax laws in India,
which is likely to give future economic benefits in the
form of availability of set off against future income tax
liability. Accordingly, MAT is recognised as deferred
tax asset in the balance sheet when the asset can be
measured reliably and it is probable that the future
economic benefit associated with the asset will be
realised.

2.5 Leases

The Company as a lessee

The Company’s lease asset classes primarily consist of
leases for buildings, vehicles and office equipments. The
company assesses whether a contract contains a lease,
at inception of a contract. A contract is, or contains, a
lease if the contract conveys the right to control the use
of an identified asset for a period of time in exchange for
consideration.

To assess whether a contract conveys the right to
control the use of an identified asset, the Company
assesses whether:

(!) the contract involves the use of an identified asset

(2) the company has substantially all of the economic
benefits from use of the asset through the period of the
lease and

(3) the company has the right to direct the use of the asset.

At the date of commencement of the lease, the company
recognizes a "Right of Use" ("ROU") asset and a
corresponding lease liability for all lease arrangements
in which it is a lessee, except for leases with a term
of twelve months or less (short-term leases) and low
value leases. For these short-term and low value leases,
the company recognizes the lease payments as an
operating expense on a straight-line basis over the term
of the lease.

The ROU assets are initially recognized at cost, which
comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation
and impairment losses if any and adjusted for any
remeasurement of the lease liability.

ROU assets are depreciated from the commencement
date on a straight-line basis over the shorter of the lease
term and useful life of the underlying asset.

The lease liability is initially measured at amortized
cost at the present value of the future lease payments.
The lease payments are discounted using the interest
rate implicit in the lease or, if not readily determinable,
using the incremental borrowing rates in the country of
domicile of the leases.

It is remeasured when there is a change in future lease
payments arising from a change in an index or rate,
if there is a change in the Company’s estimate of the
amount expected to be payable under a residual value
guarantee, if the Company changes its assessment
of whether it will exercise a purchase, extension or
termination option or if there is a revised in-substance
fixed lease payment.

When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying
amount of the right-of-use asset, or is recorded in profit
or loss if the carrying amount of the right-of-use asset
has been reduced to zero.

The company as a lessor

Leases for which the company is a lessor is classified as
a finance or operating lease. Whenever the terms of the
lease transfer substantially all the risks and rewards of
ownership to the lessee, the contract is classified as a
finance lease. All other leases are classified as operating
leases.

For operating leases, rental income is recognized on a
straight line basis over the term of the relevant lease.

2.6 Impairment of assets

(a) Financial assets

A financial asset not carried at fair value is assessed
at each reporting date to determine whether there is
objective evidence that it is impaired. A financial asset
is impaired if objective evidence indicates that a loss
event has occurred after the initial recognition of the
asset, and that the loss event had a negative effect on
the estimated future cash flows of that asset that can be
estimated reliably.

Objective evidence that financial assets are impaired
can include default or delinquency by a debtor,
restructuring of an amount due to the Company on
terms that the Company would not otherwise consider,
indications that a debtor or issuer will enter bankruptcy,
the disappearance of an active market for a security. The
entity considers evidence of impairment for receivables
for each specific asset. All individually significant
receivables are assessed for specific impairment.

An impairment loss in respect of a financial asset
measured at amortized cost is calculated as the
difference between its carrying amount and the present
value of the estimated future cash flows discounted
at the asset’s original effective interest rate. Losses
are recognized in statement of profit and loss and are
reflected as an allowance account against receivables.
Interest on the impaired asset continues to be recognized
as income through the unwinding of the discount. When
a subsequent event causes the amount of impairment
loss to decrease, the decrease in impairment loss is
reversed through statement of profit and loss.

The company assesses at each date of Balance
sheet whether a financial assets or group of financial
assets is impaired. In accordance with Ind-AS 109, the
Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss on the
following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are
measured at amortised cost e.g. loans, deposits, and
bank balance.

b) Trade receivables - The application of simplified
approach does not require the Company to track

changes in credit risk. Rather, it recognises impairment
loss allowance based on lifetime ECLs at each reporting
date, right from its initial recognition.

Credit-impaired financial assets

At each reporting date, the Company assesses whether
financial assets carried at amortised cost and debt
securities at FVOCI are credit-impaired. A financial asset
is 'credit-impaired’ when one or more events that have a
detrimental impact on the estimated future cash flows
of the financial asset have occurred.

Evidence that a financial asset is credit-impaired
includes the following observable data:

• significant financial difficulty of the debtor;

• a breach of contract such as a default or being more
than 90 days past due;

• the restructuring of a loan or advance by the Group on
terms that the Group would not consider otherwise;

• it is probable that the debtor will enter bankruptcy or
other financial reorganisation; or

• the disappearance of an active market for a security
because of financial difficulties.

(b) Non financial assets

Goodwill is tested annually for impairment, or more
frequently if events or changes in circumstances
indicate that they might be impaired. Other assets are
tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is recognised for the
amount by which the asset’s carrying amount exceeds
its recoverable amount. The recoverable amount is the
higher of an asset’s fair value less costs of disposal and
value in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there
are separately identifiable cash inflows which are largely
independent of the cash inflows from other assets or
groups of assets (cash-generating units). Non-financial
assets other than goodwill that suffered impairment are
reviewed for possible reversal of the impairment at the
end of each reporting period.

Total impairment loss of a cash generating unit (CGU) is
allocated first to reduce the carrying amount of goodwill
allocated to the CGU and then to the other assets of the
CGU pro-rata on the basis of the carrying amount of
each asset in the CGU. An impairment loss on goodwill
is recognized in the statement of profit and loss and is
not reversed in the subsequent period.

An impairment loss in respect of goodwill is not
subsequently reversed. In respect of other assets
for which impairment loss has been recognised in
prior periods, the Company reviews at each reporting
date whether there is any indication that the loss has
decreased or no longer exists. An impairment loss
previously recognised is reversed only if there has
been a change in the estimates used to determine the
recoverable amount since the last impairment loss
was recognised. Such a reversal is made only to the
extent that the asset’s carrying amount neither exceeds
its recoverable amount nor the carrying amount that
would have been determined, net of depreciation or
amortisation, if no impairment loss had been recognised.

2.7 Cash and cash equivalents

Cash and cash equivalents includes cash on hand,
cheques/drafts on hand, remittances in transit, balances
with bank held in current account, demand deposits
with original maturities of three months or less, deposits
held at call with financial institutions, other short-term,
highly liquid investments with original maturities of
three months or less that are readily convertible to
known amounts of cash and which are subject to an
insignificant risk of changes in value, and bank overdrafts.
Bank overdrafts are repayable on demand and form an
integral part of an entity’s cash management, and are
included as a component of cash and cash equivalents.
Bank overdrafts are shown within borrowings in current
financial liabilities in the balance sheet.

2.8 Financial instruments
Financial Assets

(i) Initial recognition and measurement

Financial assets are recognised when the Company
becomes a party to the contractual provisions of the
instrument. Financial assets are initially measured at
fair value, except for trade receivables which are initially
measured at transaction price.Transaction costs that
are directly attributable to the acquisition or issue of
financial assets (other than financial assets at fair value
through profit or loss) are added to or deducted from
the fair value measured on initial recognition of financial
asset.

(ii) Subsequent measurement

Financial assets, other than equity instruments, are
subsequently measured at amortised cost, fair value
through other comprehensive income ('FVOCI’) or fair
value through profit or loss ('FVTPL’) on the basis of:

(i) the entity’s business model for managing the financial
assets and

(ii) the contractual cash flow characteristics of the financial
asset.

(a) Measured at amortized cost: Financial assets which
have contractual cash flows that are solely payments
of principal and interest on the principal outstanding
and is held within a business model with the objective
of holding the assets to collect contractual cash flows,
are subsequently measured at amortized cost using the
effective interest rate ('EIR’) method, less impairment,
if any. Amortized cost is calculated by taking into
account any discount or premium on acquisition and
fees or costs that are an integral part of the EIR. The
EIR amortization is included in interest income in the
statement of profit and loss. The losses arising from
impairment are recognised in the statement of profit and
loss. On derecognition, gain or loss, if any, is recognised
in the statement of profit and loss.

(b) Measured at fair value through other comprehensive
income : Financial assets which have contractual
cash flows that are solely payments of principal and
interest on the principal outstanding and is held within
a business model whose objective is achieved by
both collecting contractual cash flows and selling
financial assets, is measured at fair value through other
comprehensive income. It is subsequently measured
at fair value with unrealised gains or losses recognised
in the other comprehensive income ('OCI’), except for
interest income which is recognised as 'other income’ in
the Statement of Profit and Loss using the EIR method.
The losses arising from impairment are recognised
in the Statement of Profit and Loss. On derecognition,
cumulative gain or loss previously recognised in OCI
is reclassified from the equity to 'other income’ in the
Statement of Profit and Loss.

(c) Measured at fair value through profit or loss: A financial
asset not measured at either amortised cost or FVOCI, is
measured at FVTPL. Such financial assets are measured
at fair value with all changes in fair value, including
interest income and dividend income if any, recognised
as 'other income’ in the Statement of Profit and Loss.

All investments in equity instruments classified under
financial assets are subsequently measured at fair
value (except for investment in subsidiaries). Equity
instruments which are held for trading are measured at
FVTPL. For all other equity instruments, the Company
may, on initial recognition, irrevocably elect to measure
the same either at FVOCI or FVTPL. The Company
makes such election on an instrument-by-instrument
basis. Fair value changes on an equity instrument
shall be recognised as 'other income’ in the Statement
of Profit and Loss unless the Company has elected to
measure such instrument at FVOCI. Fair value changes
excluding dividends, on an equity instrument measured
at FVOCI are recognised in OCI. Amounts recognised in
OCI are not subsequently reclassified to the Statement
of Profit and Loss. Dividend income on the investments
in equity instruments are recognised as 'other income’
in the Statement of Profit and Loss when the company’s
right to receive payments is establishes.

(iii) Investments in subsidiaries

Investments in subsidiaries are carried at cost less
accumulated impairment losses, if any. Where an
indication of impairment exists, the carrying amount
of the investment is assessed and written down
immediately to its recoverable amount. The accounting
policy on impairment of non-financial assets is disclosed
in Note 2.6. On disposal of investments in subsidiaries,
the difference between net disposal proceeds and the
carrying amounts are recognized in the statement of
profit and loss.

(iv) Investments in joint venture

A joint venture is an arrangement in which the Company
has joint control, whereby the Company has rights to the
net assets of the arrangement, rather than rights to its
assets and liabilities.

(v) Derecognition

The Company derecognises a financial asset when the
contractual rights to the cash flows from the financial
asset expire, or it transfers the contractual rights to
receive the cash flows from the asset. On transfer of
the financial asset, the Company evaluates if and to
what extent it has retained the risks and rewards of
ownership. When it has neither transferred nor retained
substantially all of the risks and rewards of the asset, nor
transferred control of the asset, the Company continues
to recognise the transferred asset to the extent of
the Company’s continuing involvement. In that case,
the Company also recognises an associated liability.
The transferred asset and the associated liability are
measured on a fair value basis that reflects the rights
and obligations that the Company has retained.

Financial liabilities

(i) Initial recognition and measurement:

Financial liabilities are recognised when the Company
becomes a party to the contractual provisions of the
instruments. Financial liabilities are initially recognised
at fair value plus transaction costs for all financial
liabilities not carried at FVTPL. Financial liabilities
carried at FVTPL are initially recognised at fair value, and
transaction costs are expensed in the statement of profit
and loss.

(ii) Subsequent measurement:

Financial liabilities are subsequently measured at
amortized cost using EIR method. Financial liabilities
carried at FVTPL are measured at fair value with all
changes in fair value recognised in the statement of
profit and loss.

(iii) Derecognition:

A financial liability is derecognised when the obligation
specified in the contract is discharged, cancelled or
expires. When an existing financial liability is replaced
by another from the same lender on substantially
different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification
is treated as the derecognition of the original liability
and the recognition of a new liability. The difference in
the respective carrying amounts is recognized in the
statement of profit or loss.

(c) Guarantee

Financial guarantee contracts are recognized as a
financial liability at the time the guarantee is issued. The
liability is initially measured at fair value and subsequently
at the higher of amount determined in accordance with
Ind AS 37 and the amount initially recognized less
cumulative amortization, where appropriate.

The fair value of financial guarantees is determined as
the present value of the differences of the difference in
net cash flows between the contractual payments under
the debt instrument and the payments that would be
required without the guarantee, or the estimated amount
that would be payable to a third party for assuming the
obligations.

(d) Derivative financial instruments

The Company uses derivative financial instruments,
such as forward foreign exchange contracts, to hedge
its foreign currency risks. Such derivative financial
instruments are initially recognised at fair value on the
date on which a derivative contract is entered into and
are subsequently remeasured at fair value, with changes
in fair value recognised in statement of profit and loss.
Derivatives are carried as financial assets when the fair

value is positive and as financial liabilities when the fair
value is negative.

2.9 Offsetting financial instruments

Financial assets and liabilities are offset and the net
amount is reported in the balance sheet where there
is a legally enforceable right to offset the recognised
amounts and there is an intention to settle on a net basis
or realise the asset and settle the liability simultaneously.
The legally enforceable right must not be contingent on
future events and must be enforceable in the normal
course of business and in the event of default, insolvency
or bankruptcy of the Company or the counterparty.

2.10 Property, plant and equipment

Property, plant and equipment is measured at cost less
accumulated depreciation and accumulated impairment
losses, if any. Subsequent costs are included in the
asset’s carrying amount or recognised as a separate
asset, as appropriate, 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. All other repairs and maintenance are
charged to the statement of profit and loss during the
period in which they are incurred. The carrying amount
of any component accounted for as a separate asset is
derecognised when replaced. Losses arising from the
retirement of, and gains or losses arising from disposal
of assets which are carried at cost is recognised in the
statement of profit and loss.

The company follows revaluation model for measurement
of freehold hand.freehold land will be recognized at fair
value based on periodic, at least triennial, valuations
done by external independent valuers, less subsequent
depreciation of leasehold land.Increase in the carrying
amount arising on revaluation of land are recognized, net
of tax, in other comprehensive income and accumulated
in reserves in sharholder’s equity.

Fair value of the land assets is determined using
the Market comparable method, i.e., the valuations
performed by the valuer are based on active market sale
prices, adjusted for difference in the nature, location or
condition of the specific property.

Property, plant and equipment are stated at historical
cost less depreciation. Historical cost includes
expenditure that is directly attributable to the acquisition
of the items. Depreciation is provided on a straight-line
method over the estimated useful lives of the assets. The
depreciation rates are prescribed in Schedule II to the
Companies Act, 2013. If the management’s estimate of

the useful life of a fixed asset at the time of acquisition of
the asset or of the remaining useful life on a subsequent
review is shorter or longer than that envisaged in the
aforesaid Schedule, depreciation is provided at a higher
or lower rate respectively, based on technical evaluation
and consequent advice, the management believes
that its estimates of useful lives as given above best
represent the period over which management expects
to use these assets.

Transition to Ind AS

The cost of property, plant and equipment at 1 April
2016, the Comapny’s date of transition to Ind AS,
was determined with reference to its carrying value
recognised as per the previous GAAP (deemed cost), as
at the date of transition to Ind AS.

Depreciation methods, estimated useful lives and residual
value:

Depreciation is calculated using the straight-line method
to allocate their cost, net of their residual values, as
follows:

Leasehold improvements are amortised over the period
of the lease or useful life of the asset, whichever is lower.

Property, plant and equipment not ready for the intended
use on the date of Balance Sheet are disclosed as
"Capital work-in-progress".

The residual values, useful lives and method of
depreciation of property, plant and equipment is reviewed
at each financial year end and adjusted prospectively, if
appropriate. The residual values are not more than 5% of
the original cost of the asset. The assets’ residual values
and useful lives are reviewed, and adjusted if appropriate,
at the end of each reporting period. An asset’s carrying
amount is written down immediately to its recoverable
amount if the asset’s carrying amount is greater than
its estimated recoverable amount. Gains and losses on
disposals are determined by comparing proceeds with

carrying amount. These are included in the statement of
profit and loss.

2.11 Intangible assets

Intangible Assets are stated at acquisition cost, net of
accumulated amortization and accumulated impairment
losses, if any. Intangible assets are amortized on a
straight line basis over their estimated useful lives.
The amortization period and the amortization method
are reviewed at least at each financial year end. If the
expected useful life of the asset is significantly different
from previous estimates, the amortization period is
changed accordingly. Gains or losses arising from
the retirement or disposal of an intangible asset are
determined as the difference between the net disposal
proceeds and the carrying amount of the asset and
recognised as income or expense in the statement of
profit and loss.

The carrying value of these intangible assets is reviewed
at least annually for impairment and adjusted to the
recoverable amount if required.

(i) Goodwill

Goodwill on business combination is included in
intangible assets. Goodwill is not amortized but it is
tested for impairment annually, or more frequently if
events or changes in circumstances indicate that it might
be impaired, and is carried at cost less accumulated
impairment losses. Gains and losses on the disposal
of an entity include the carrying amount of goodwill
relating to the entity sold. Goodwill is allocated to cash¬
generating units for the purpose of impairment testing.
The allocation is made to those cash-generating units or
company’s of cash-generating units that are expected
to benefit from the business combination in which
the goodwill arose. The units or company’s of units
are identified at the lowest level at which goodwill is
monitored for internal management purposes, which in
our case are the operating segments.

(ii) Computer software

Costs associated with maintaining software
programmes are recognised as an expense as incurred.
Development costs those are directly attributable to the
design and testing of identifiable and unique software
products controlled by the Company are recognised as
intangible assets when the following criteria are met:

• it is technically feasible to complete the software so that
it will be available for use

• management intends to complete the software and use
or sell it

• there is an ability to use or sell the software

• it can be demonstrated how the software will generate
probable future economic benefits

adequate technical, financial and other resources
to complete the development and to use or sell the
software are available, and

the expenditure attributable to the software during its
development can be reliably measured.

Directly attributable costs that are capitalised as part of
the software include employee costs and an appropriate
portion of relevant overheads.

Amortization is calculated using the straight-line method
to allocate their cost over their estimated useful lives.

2.12 Borrowings

Borrowings are initially recognised at fair value, net of
transaction costs incurred. Borrowings are subsequently
measured at amortized cost. Any difference between the
proceeds (net of transaction costs) and the redemption
amount is recognised in statement of profit and loss over
the period of the borrowings using the effective interest
method. Fees paid on the establishment of loan facilities
are recognised as transaction costs of the loan to the
extent that it is probable that some or all of the facility
will be drawn down. In this case, the fee is deferred until
the draw down occurs. To the extent there is no evidence
that it is probable that some or all of the facility will be
drawn down, the fee is capitalised as a prepayment for
liquidity services and amortized over the period of the
facility to which it relates. Preference shares, which are
mandatorily redeemable on a specific date, are classified
as liabilities. The dividends on these preference shares
are recognised in statement of profit and loss as finance
costs.

Borrowings are derecognised from the balance
sheet when the obligation specified in the contract
is discharged, cancelled or expired. The difference
between the carrying amount of a financial liability that
has been extinguished or transferred to another party
and the consideration paid, including any non-cash
assets transferred or liabilities assumed, is recognised
in statement of profit and loss.

Borrowings are classified as current liabilities unless the
Company has an unconditional right to defer settlement
of the liability for at least 12 months after the reporting
period.

Borrowing costs

Borrowing costs are interest and other costs incurred
in connection with the borrowing of funds. Borrowing
costs directly attributable to acquisition or construction
of an asset which necessarily take a substantial period
of time to get ready for their intended use are capitalised
as part of the cost of that asset. Other borrowing costs
are recognised as an expense in the period in which they
are incurred.