2. Material accounting policies
This note provides a list of the material accounting policies adopted in the preparation of these
standalone financial statements. These policies have been consistent with those of the previous
year expect where newly issued Indian Accounting standards is initially adopted.
A) Basis of preparation
i) Statement of compliance
The standalone financial statements have been prepared on going concern basis in
accordance with accounting principles generally accepted in India. Further, these
financial statements have been prepared on historical cost basis, except for certain
financial instruments which are measured at fair value or amortised cost at the end of
each reporting period, as explained in the accounting policies below. Historical cost is
generally based on the fair value of the consideration given in exchange for goods and
services. 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.
These standalone financials comply with the Composite Scheme of Amalgamation and
Arrangement filed by Algoquant Fintech Limited ("Amalgamated/Resulting Company 1"),
Algoquant Investment Private Limited ("Amalgamating Company 2"), Growth Securities
Private Limited ("Demerged Company 3").
The said Scheme was approved by the Hon'ble National Company Law Tribunal (NCLT),
Ahmedabad Bench on 04-October-2024 and the copy of the order of the Hon'ble NCLT
was filed with the Registrar of Companies (ROC) Ahmedabad on l6-November-2024. The
appointed date is 01-April-2023 as per the scheme. Accordingly financial statements are
reconstructed /restated as per the scheme.
ii) Presentation of standalone financial statements
The Standalone Balance Sheet, the Standalone Statement of Profit and Loss and the
Standalone Statement of Changes in Equity are prepared and presented in the format
prescribed in the Division III of Schedule III to the Companies Act, 2013 (the "Act").
The Standalone Statement of Cash Flows has been prepared and presented as per
the requirements of Ind AS 7 "Statement of Cash Flows". The Standalone Balance
Sheet, Standalone Statement of Profit and Loss, Standalone Statement of Cash Flow
and Standalone Statement of Changes in Equity are together referred as the financial
statement of the Company.
These standalone financial statements are presented in Indian Rupees (?) which is the
functional currency of the Company. All amounts disclosed in the standalone financial
statements which also include the accompanying notes have been rounded off to the
nearest lakh as per the requirement of Schedule III to the Companies Act, 2013, unless
otherwise stated.
iii) Use of estimates and judgements
The preparation of the standalone financial statements in conformity with Ind AS requires
that management make judgments, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets, liabilities and disclosures
of contingent assets and liabilities as of the date of the financial information and the
reported amounts of revenues and expenses for the reporting period. Actual results could
differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis and could change
from period to period. Any revisions to accounting estimates are recognised prospectively
in the period in which the estimate is revised and in any future periods affected.
In particular, information about significant judgements and areas of estimation uncertainty
in applying accounting policies that have the most significant effect on the amounts
recognized in the standalone financial statements are discussed below:
Significant management judgements
The following are significant management judgements in applying the accounting
policies of the Company that have the most significant effect on the standalone financial
statements are as follows:
• Recognition of deferred tax assets - The extent to which deferred tax assets can be
recognised is based on an assessment of the probability of the Company's future
taxable income against which the deferred tax assets can be utilized.
• Evaluation of indicators for impairment of assets - The evaluation of applicability
of indicators of impairment of assets requires assessment of several external and
internal factors which could result in deterioration of recoverable amount of the
assets.
• Classification of leases - The assessment (including measurement) of the lease
is based on several factors, including, but not limited to, transfer of ownership of
leased asset at end of lease term, lessee's option to extend/terminate etc. After the
commencement date, the Company reassesses the lease term if there is a significant
event or change in circumstances that is within its control and affects its ability to
exercise or not to exercise the option to extend or to terminate.
• Defined benefit plans - The liabilities and costs for defined benefit plans are
determined using actuarial valuations. The actuarial valuation involves making
assumptions about discount rates, future salary increases, mortality rates and future
pension increases. Due to the long-term nature of these plans, such estimates are
subject to significant uncertainty.
• Provisions
At each balance sheet date basis the management judgment, changes in facts and
legal aspects, the Company assesses the requirement of provisions against the
outstanding contingent liabilities. However, the actual future outcome may be
different from this judgement.
• Contingencies
In the normal course of business, contingent liabilities may arise from litigation,
taxation and other claims against the Company. A tax provision is recognised when
the Company has a present obligation as a result of a past event; it is probable that
the Company will be required to settle that obligation. Where it is management's
assessment that the outcome cannot be reliably quantified or is uncertain the claims
are disclosed as contingent liabilities unless the likelihood of an adverse outcome is
remote. Such liabilities are disclosed in the notes but are not provided for in the
financial statements. When considering the classification of a legal or tax cases as
probable, possible or remote there is judgement involved.
This pertains to the application of the legislation, which in certain cases is based
upon management's interpretation of country specific tax law, in particular India,
and the likelihood of settlement. Management uses in-house and external legal
professionals to inform their decision.
Although, there can be no assurance regarding the final outcome of the legal
proceedings, the Company does not expect them to have a materially adverse impact
on the Company's financial position or profitability.
• Going concern
The management has made an assessment of the Company's ability to continue
as going concern and is satisfied that the Company has resources to continue in
business for the foreseeable future. Further, management is not aware of any material
uncertainties that may cast significant doubt upon the Company's ability to continue
as going concern.
• Estimation uncertainty
Information about estimates and assumptions that have the most significant effect on
recognition and measurement of assets, liabilities, income and expenses is provided
below. Actual results may be substantially different.
• Recoverability of advances/ receivables - At each balance sheet date, based on
discussions with the respective counterparties and internal assessment of their
credit worthiness, the Management assesses the recoverability and expected credit
loss of outstanding receivables and advances. Such assessment requires significant
management judgement based on financial position of the counter-parties, market
information and other relevant factor.
• Classification of assets and liabilities into current and non-current - The management
classifies the assets and liabilities into current and non-current categories based on
management's expectation of the timing of realization of the assets or timing of
contractual settlement of liabilities.
• Impairment of non-financial assets - The evaluation of applicability of indicators
of impairment of assets requires assessment of several external and internal factors
which could result in deterioration of recoverable amount of the assets.
• Impairment of financial assets - The Company estimates the recoverable amount
of trade receivables and other financial assets where collection of the full amount
is expected to be no longer probable. For individually significant amounts, this
estimation is performed on an individual basis considering the length of time past
due, financial condition of the counterparty, impending legal disputes, if any and
other relevant factors.
• Fair value measurements - Management applies valuation techniques to determine
the fair value of financial instruments (where active market quotes are not available).
This involves developing estimates and assumptions consistent with how market
participants would price the instrument. Management bases its assumptions on
observable data as far as possible, but this is not always available. In that case
management uses the best information available.
• Useful lives of Property, Plant and Equipment - The Company uses its technical
expertise along with historical and industry trends for determining the economic life
of an asset/ component of an asset. The useful lives are reviewed by management
periodically and revised, if appropriate. In case of a revision, the unmortised
depreciable amount is charged over the remaining useful life of the asset.
B) Financial Instruments
Recognition and initial measurement
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
Financial assets are recognised when the Company becomes a party to the contractual provisions
of the financial instrument and are measured initially at fair value adjusted by transaction
costs, except for those carried at fair value through profit or loss which are measured initially
at fair value.
Classification and subsequent measurement
The Company has applied Ind AS 109 and classifies its financial assets in the following
measurement categories: -
• Amortised cost
• Fair value through other comprehensive income (FVOCI)
• Fair value through profit or loss (FVTPL)
a) Financial assets carried at amortised cost
The Company classifies the financial assets at amortised cost, if the contractual cash flows
represent solely payments of principal and interest on the principal amount outstanding
and the assets are held under a business model to collect contractual cash flows. The
gains and losses resulting from fluctuations in fair value are not recognised for financial
assets classified in amortised cost measurement category.
Financial asset is measured at the amortised cost, if both the following conditions are
met:
The asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows, and Contractual terms of the asset give rise on specified dates
to cash flows that are solely payments of principal and interest (SPPI) on the principal
amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised
cost using the effective interest rate (EIR) method.
b) Financial assets measured at FVOCI
The Company classifies the financial assets as FVOCI if the contractual cash flows
represent solely payments of principal and interest on the principal amount outstanding
and the Company's business model is achieved by both collecting contractual cash flow
and selling financial assets. In case of debt instruments measured at FVOCI, changes in
fair value are recognised in other comprehensive income.
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.
In case of equity instruments irrevocably designated at FVOCI, gains / losses including
relating to foreign exchange, are recognised through other comprehensive income.
Further, cumulative gains or losses previously recognised in other comprehensive income
remain permanently in equity and are not subsequently transferred to profit or loss on
derecognition.
c) Financial assets measured at FVTPL
The financial assets are classified as FVTPL if these do not meet the criteria for classifying
at amortised cost or FVOCI. The Company makes such election on an instrument-by¬
instrument basis. Such financial assets are subsequently measured at fair value at each
reporting date. In case of financial assets measured at FVTPL, changes in fair value are
recognised in profit or loss.
De-recognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a Group of
similar financial assets) is primarily derecognised (i.e. removed from the Company's
balance sheet) when:
•The rights to receive cash flows from the asset have expired; or
•The Company has transferred its rights to receive cash flows from the asset or has
assumed an obligation to pay the received cash flows in full without material delay
to a third party under a 'pass-through' arrangement; and either (1) the Company has
transferred substantially all the risks and rewards of the asset, or (2) the Company has
neither transferred nor retained substantially all the risks and rewards of the asset, but
has transferred control of the asset.
Financial liabilities and equity instrument
Debt and equity instruments issued by the Company are classified as either financial
liabilities or as equity in accordance with the substance of the contractual arrangements
and the definitions of a financial liability and an equity instrument.
a) Equity instrument
An equity instrument is any contract that evidences a residual interest in the assets of an entity
after deducting all of its liabilities. Equity instruments issued by the Company is recognised at
the proceeds received, net of directly attributable transaction costs.
b) Financial liabilities
Financial liabilities are measured at amortised cost. The carrying amounts are initially
recognised at fair value and subsequently determined based on the EIR method. Interest
expense is recognised in statement of profit and loss. Any gain or loss on de-recognition of
financial liabilities is also recognised in statement of profit and loss. The Company does not
have any financial liability which are measured at FVTPL.
De-recognition of financial liabilities
A financial liability is de-recognised when the obligation under the liability is discharged or
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 de-recognition of the original
liability and the recognition of a new liability. The difference in the respective carrying amounts
is recognised in the statement of profit and loss.
A financial liability is derecognised when the obligation under the liability is discharged or
cancelled or expires.
Offsetting
Financial assets and financial liabilities are offset, and the net amount presented in the balance
sheet when, and only when, the Company currently has a legally enforceable right to set off
the amounts and it intends either to settle them on a net basis or to realize the asset and settle
the liability simultaneously.
Fair Value
The Company measures financial instruments at fair value in accordance with the accounting
policies mentioned above. 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:
• In the principal market for the asset or liability
• In absence of principal market, in the most advantageous market for the asset or liability
All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorized within the fair value hierarchy that categorizes into three
levels, described as follows, the inputs to valuation techniques used to measure value.
The fair value hierarchy gives the highest priority to quoted prices in active markets for
identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable
inputs (Level 3 inputs).
• Level 1 — quoted (unadjusted) market prices in active markets for identical assets or
liabilities
• Level 2 —inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly or indirectly
• Level 3 — inputs that are unobservable for the asset or liability
C) Property, plant and equipment
Recognition and measurement
Items of property, plant and equipment are measured at cost, less accumulated depreciation
and accumulated impairment losses, if any.
Cost of an item of property, plant and equipment comprises its purchase price, including import
duties and non-refundable purchase taxes, after deducting trade discounts and rebates, any
directly attributable cost of bringing the item to its working condition for its intended use and
estimated costs of dismantling and removing the item and restoring the site on which it is
located.
If significant parts of an item of property, plant and equipment have different useful lives,
then they are accounted for as separate items (major components) of property, plant and
equipment.
Any gain or loss on retirement from active use or disposal of an item of property, plant and
equipment is recognised in statement of profit and loss.
All other repair and maintenance costs are recognised in the Statement of Profit and Loss as
incurred.
Subsequent expenditure
Subsequent expenditure relating to property, plant and equipment is capitalized only when it
is probable that future economic benefit associated with these will flow with the Company and
the cost of the item can be measured reliably.
De-recognition
An item of property, plant and equipment or any significant part initially recognised of such item
of property plant and equipment is derecognised upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the
asset (calculated as the difference between the net disposal proceeds and the carrying amount
of the asset) is recognised in the statement of profit and loss when the asset is derecognised.
Depreciation method and estimated useful lives
Depreciation is calculated on cost of items of property, plant and equipment less their
estimated residual values over their estimated useful lives using the straight-line method and
is generally recognised in the statement of profit and loss.
Depreciation on property, plant and equipment is provided as per the guidance set out in the
schedule II to the Companies Act, 2013. Depreciation is charged on straight-line method based
on estimated useful life of the asset after considering residual value as set out in schedule II to
the Companies Act, 2013. Depreciation on additions (disposals) is provided on a pro-rata basis
i.e., from (up to) the date on which asset is ready for use (disposed of).
Intangible assets
An intangible asset is recognised only when its cost can be measured reliably, and it is probable
that the expected future economic benefits that are attributable to it will flow to the Company.
Software and system development expenditure are capitalised at cost of acquisition including
cost attributable to readying the asset for use. Such intangible assets are subsequently
measured at cost less accumulated amortisation and any accumulated impairment losses.
The useful life of these intangible assets is estimated at 3 years with zero residual value. Any
expenses on such software for support and maintenance payable annually are charged to the
statement of profit and loss.
The residual values, useful lives and methods of amortisation are reviewed at each financial
year end and adjusted prospectively, if appropriate. Changes in the expected useful life are
accounted for by changing the depreciation period or methodology, as appropriate, and treated
as changes in accounting estimates.
The Management believes that the useful lives as given above represents the period over
which the assets are likely to be used. Amortisation method, useful lives and residual values
are reviewed at each financial year-end and adjusted if appropriate.
D) Employee benefits
(i) Short-term employee benefits
Short-term employee benefit includes salaries/short-term cash bonus and such
obligations are measured at an undiscounted amount and are expensed as the related
service is provided. A liability is under short-term cash bonus, if the Company has a
present legal or constructive obligation to pay this amount as a result of past service
provided by the employee, and the amount of obligation can be estimated reliably. These
costs are recognised as an expense in the Statement of Profit and Loss at the undiscounted
amount expected to be paid over the period of services rendered by the employees to the
Company.
(ii) Long-term employee benefits
a) Defined benefit plan
Defined benefit plan is a post-employment benefit plan other than a defined contribution
plan. Gratuity is a post- employment benefit and is in the nature of a defined benefit
plan. The Company's liability is determined on the basis of an actuarial valuation using
the projected unit credit method as at the Balance Sheet date. The present value of
the defined benefit obligation is determined by discounting the estimated future cash
outflows using discount rate with reference to the market yield on government bonds at
the end of reporting period. The Gratuity plan of the Company is un-funded.
Defined benefit costs are categorised as follows:
i) The current service cost of the defined benefit plan, recognised in the Statement of
Profit and Loss in employee benefits expense, reflects the increase in the defined benefit
obligation resulting from employee service in the current period, benefit changes,
curtailments and settlements. Past service costs, which comprise plan amendments and
curtailments, as well as gains or losses on the settlement of benefits are recognised
immediately in the Statement of Profit and Loss when they occur.
ii) The net interest cost is calculated by applying the discount rate to the net balance of the
defined benefit obligation. This cost is included in finance cost in the Statement of Profit
and Loss.
iii) Re-measurements, comprising of actuarial gains and losses, the effect of the asset
ceiling, 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. Re-measurements are
not reclassified to the Statement of Profit and Loss in subsequent periods.
For discontinued operations, in view of closure of its operations in earlier years, the
Company's net obligation in respect of defined benefit plans had been considered as
current liability and has been calculated on actual basis as per the provisions of Payment
of Gratuity Act, 1972. The same was discharged during the previous year.
E) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset
that necessarily takes a substantial period of time to get ready for its intended use or sale are
capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period
in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in
connection with the borrowing of funds. Borrowing cost also includes exchange differences to
the extent regarded as an adjustment to the borrowing costs.
F) Leases
For any new contracts entered into on or after 01-April-2019, the Company considers whether
a contract is, or contains a lease. A lease is defined as 'a contract, or part of a contract, that
conveys the right-of- use an asset (the underlying asset) for a period of time in exchange for
consideration'. Identification of a lease requires significant judgment. The Company uses
significant judgement in assessing the lease term (including anticipated renewals) and the
applicable discount rate.
The Company recognizes right of use assets, measured at an amount equal to lease liability
(adjusted for related prepayments/ accruals) and discounts lease payments using the
incremental borrowing rate for measuring the lease liability.
The Company amortise the right-of-use assets on a straight-line basis from the lease
commencement date to the earlier of the end of the useful life of the right-of-use asset or the
end of the lease term. The Company also assesses the right-of-use asset for impairment when
such indicators exist.
Lease payments included in the measurement of the lease liability are made up of fixed
payments (including in substance fixed), variable payments based on an index or rate, amounts
expected to be payable under a residual value guarantee and payments arising from options
reasonably certain to be exercised.
Subsequent to initial measurement, the liability will be reduced for payments made and
increased for interest. It is remeasured to reflect any reassessment or modification, or if there
are changes in in- substance fixed payments.
When the lease liability is remeasured, the corresponding adjustment is reflected in the right-
of-use asset, or profit and loss if the right-of-use asset is already reduced to zero.
Short-term leases and leases of low-value assets
The Company has elected to account for short-term leases and leases of low-value assets
using the practical expedients. Instead of recognising a right-of-use asset and lease liability,
the payments in relation to these are recognised as an expense in Statement of profit and loss
on a straight-line basis over the lease term.
G) Revenue recognition
Trading in financial instruments
Revenue from trading, primarily consists of trading in marketable financial instruments earned
by the Company. Net Trading income represents trading gain net of losses. The profit or loss
arising from all transactions entered into on account and risk of the Company are recorded on
completion of trade date. The revenue is recorded at the gross value after net trading revenue.
Market Value for exchange traded derivatives, principally, futures and options, are based on
quoted market prices. The gains or losses on derivatives used for trading purposes are included
in revenue from trading. Purchase & Sales of derivatives financial instruments are recorded on
trade date. The transactions are recorded on a net basis.
As per Ind AS 109 Financial Instruments, in respect of options contracts open as on the
reporting date, the net premium paid or received is carried forward to the balance sheet as
financial assets or financial liabilities. The unrealized gain or loss measured on fair valuation is
shown as financial assets or financial liabilities.
Brokerage income
Revenue from contract with customer is recognised at the point in time when performance
obligation is satisfied. Income from broking activities is accounted for on the trade date of
transactions.
Interest income
Interest income on a financial asset at amortised cost is recognised on a time proportion basis,
taking into account the amount outstanding and the effective interest rate ('EIR'). The EIR is
the rate that exactly discounts estimated future cash flows of the financial assets through the
expected life of the financial asset, or where appropriate, a shorter period, to the net carrying
amount of the financial instrument. The internal rate of return on financial assets, after netting
off the fees received and cost incurred, approximates the effective interest rate method of
return for the financial asset. The future cash flows are estimated, taking into account all the
contractual terms of the instrument.
Revenue is recognised on accrual basis using effective interest rate method.
Dividend income
Dividend income is recognised when the right to receive the dividend is established, it is
probable that the economic benefits associated with the dividend will flow to the entity and
the amount of the dividend can be measured reliably.
H) Income tax
Income tax comprises current and deferred tax incurred by the Company. It is recognised in
Statement of Profit and Loss except to the extent that it relates to items recognised directly in
equity or OCI, in which case the tax effect is recognised in equity or OCI.
i. Current tax
Current tax is measured at the amount expected to be paid in respect of taxable income for
the year in accordance with the Income Tax Act, 1961. Current tax comprises the expected tax
payable or receivable on the taxable income or loss for the year and any adjustment to the tax
payable or receivable in respect of previous years. It is measured using tax rates and tax laws
enacted or substantively enacted at the reporting date.
Current income tax relating to items recognised outside profit or loss is recognised outside profit
or 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
periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes provisions where
appropriate.
Current tax assets and current tax liabilities are off set when there is a legally enforceable right
to set off the recognised amounts and there is an intention to settle the asset and the liability
on a net basis. The amount of current tax reflects the best estimate of the tax amount expected
to be paid or received after considering the uncertainty, if any, related to income taxes.
ii. Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the corresponding amounts used
for taxation purposes. Deferred tax is also recognised in respect of carried forward tax losses
and tax credits. Deferred tax is recognised for:
Deferred tax assets are recognised to the extent that it is probable that future taxable profits
will be available against which they can be used. The existence of unused tax losses is strong
evidence that future taxable profit may not be available. Therefore, in case of a history of
recent losses, the Company recognises a deferred tax asset only to the extent that it has
sufficient taxable temporary differences or there is convincing other evidence that sufficient
taxable profit will be available against which such deferred tax asset can be realised.
Deferred tax assets - unrecognised or recognised, are reviewed at each reporting date and are
recognised/ reduced to the extent that it is probable/ no longer probable respectively that the
related tax benefit will be realised.
Deferred tax is measured at the tax rates that are expected to apply to the period when the asset
is realised or the liability is settled, based on the laws that have been enacted or substantively
enacted by the reporting date.
Minimum Alternative Tax ('MAT') credit is recognised as deferred tax asset only when and to the
extent there is convincing evidence that the Company will pay normal income tax during the
specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount
of the MAT credit asset is written down to the extent there is no longer a convincing evidence
to the effect that the Company will pay normal income tax during the specified period.
Current and deferred 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 and
in this case, the tax is also recognised in other comprehensive income or directly in equity,
respectively. The measurement of deferred tax reflects the tax consequences that would
follow from the manner in which the Company expects, at the reporting date, to recover or
settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current
tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the
same taxable entity, or on different tax entities, but they intend to settle current tax liabilities
and assets on a net basis, or their tax assets and liabilities will be realised simultaneously.
I) Cash and cash equivalents
Cash and cash equivalents includes cash on hand, 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 shown within borrowings in
current liabilities in the balance sheet.
J) Earnings per share
The basic earning/loss per share is computed by dividing the net profit/(loss) before other
comprehensive income attributable to owners of the Company for the period by the weighted
average number of equity shares outstanding during reporting period.
The number of shares used in computing diluted earnings/(loss) per share comprises the
weighted average shares considered for deriving basic earnings/(loss) per share and also the
weighted average number of equity shares which could have been issued on the conversion of
all dilutive potential equity shares.
While computing basic and diluted earnings/loss per share the Company takes into account
issue of ordinary shares during the period which can be in the form of fresh issue at fair value,
bonus issue without any consideration, stock split, issue of shares to the existing holders in
lieu of dividends, right issue to the existing holders of ordinary shares at a price which is equal
to or less than the fair value and so on. Accordingly, restated comparative figures of earning/
loss per share is presented in the standalone financial statements.
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