Employee benefit expense comprises (i) salaries, wages and bonus; (ii) contribution to provident and other funds;
gratuity expenses; and (iv) staff welfare expenses.
Finance Costs

 
 

Finance costs include interest expense on (i) cash credit facility; (ii) delayed payment of income tax; and (iii) lease
rental discounting.

Depreciation and Amortisation Expenses

Depreciation and amortisation expenses comprise (i) depreciation of property, plant and equipment (plant and
machinery, furniture and fixtures, vehicles, office equipment and computers); (ii) amortisation of intangible assets
(software); and (iii) amortisation on right-of-use assets.

Other Expenses

Other expenses comprise (i) power and fuel; (ii) sales promotion expenses; (iii) freight and handling charges; (iv)
rent; (v) repairs and maintenance (buildings, machinery and others); (vi) communication expenses; (vii) printing
and stationery; (viii) travelling and conveyance; (ix) rates and taxes; (x) legal and professional charges; (xi)
payment to auditor; (xii) expenditure on corporate social responsibility; (xiii) cash collection charges; (xiv) net
loss on foreign exchange transactions and translation; (xv) loss on sale of property, plant and equipment; (xvi)
bank charges; (xvii) property, plant and equipment written off; (xviii) obsolete stock written off; (xix) provision
for expected credit impairments; (xx) bad debts; and (xxi) miscellaneous expenses.

Key components of other expenses are explained below:

e Power and fuel expenses are mainly incurred towards generator charges in the office, warehouse and
EBOs.

e Sales promotion expenses primarily comprises expenses towards advertisement, social media
promotions, event promotions and commission on lease property.

e Freight and handling charges comprises amounts paid to logistics companies for transport of products
from our job workers to our warehouses and from our warehouses to our EBOs and LFSs, and freight on
online sales to customer and material returns.

e Rent expenses incurred towards our EBOs, payable to landlords/ lessors/ mall developers.

e Repairs and Maintainence expenses incurred towards our buildings, machinery and others primarily
comprise of the maintenance of warehouses and our storage system, the maintenance and upkeeps,
refurbishments and periodic upgrades to our EBOs to maintain the ambience and experiential customer
service, and the common area maintenance paid to malls

e Property, plant and equipment written off include: (i) in the case of store renovation, capitalised

expenditure and the written off depreciated cost of interior; and (ii) in the case of closure, the written off
interior cost after salvage.

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