2. Summary of Material Accounting Policies
2.1 Statement of Compliance and Basis
of Preparation
(l) Statement of Compliance
The Standalone Financial Statements
have been prepared in accordance with
Indian Accounting Standards (Ind AS)
as prescribed under section 133 of the
Companies Act, 2013 ("the Act"), read with
Rule 3 of the Companies (Indian Accounting
Standards) Rules, 2015 , guidelines issued by
the Securities and Exchange Board of India
("SEBI") and amendments issued thereafter,
presentation requirement of Division II of
Schedule III to the Act as applicable to the
Standalone Financial Statements and other
relevant provisions of the Act.
(II) Basis of Preparation & Presentation
The Standalone Financial Statements
correspond to the classification provisions
contained in Ind AS 1, "Presentation of
Financial Statements".
The Standalone Financial Statements
have been prepared and presented
under historical cost basis and on an
accrual basis, except for certain financial
instruments which are measured at fair
values or at amortised cost at the end of
each reporting period, as explained in the
material 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 the market
participants at the measurement date.
The assets which are expected to be realised
within a period of twelve months from the
end of reporting period are classified as
current assets. Similarly, the liabilities which
are expected to be settled within a period
of twelve months from the end of reporting
period are classified as current liabilities. All
other assets and liabilities are classified as
non-current.
Accounting policies have been consistently
applied except where a newly-issued
accounting standard is initially adopted or a
revision to an existing accounting standard
requires a change in the accounting policy
hitherto in use.
All amounts included in the standalone
financial statements are reported in Indian
Rupees in Lakhs) except share and per
share data, unless otherwise stated. Due
to rounding off, the numbers presented
throughout the document may not add up
precisely to the totals and percentages may
not precisely reflect the absolute figures.
Previous year figures have been regrouped/
rearranged, wherever necessary.
2.2 Key Accounting Estimate and Judgements
The preparation of the standalone financial
statements in conformity with Ind AS requires
management to make judgments, estimates
and assumptions in the application of
accounting policies that affect the reported
balances of assets and liabilities, disclosures
relating to contingent liabilities as at date of
standalone financial statements and reported
statement of Revenue and expense for the
period presented. Management believes that
the estimates used in the preparation of the
standalone financial statements are prudent
and reasonable. Estimates and underlying
assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are
recognised prospectively.
The areas involving critical estimates or
judgements pertaining to in the respect of
percentage of completion of contracts and
recognition of probable loss, useful lives of
property, plant and equipment, provision
for income tax and valuation of deferred tax
assets, fair value measurements and other
provisions and contingent liabilities. Estimates
and judgements are continually evaluated.
They are based on historical experience and
other factors, including expectations of future
events that may have a financial impact on
the Company and that are believed to be
reasonable under the circumstances.
i) Revenue Recognition
The Company uses the percentage of
completion method using the input (cost
expended) method to measure progress
towards completion in respect of fixed
price contracts. Percentage of completion
method relies on estimates of total
expected contract revenue and costs.
This method is followed where reasonable
dependable estimate of the revenue and
costs applicable to various elements of the
contract can be made. Key factors reviewed
to estimate the future costs to complete
include estimates of future manpower
costs and productivity efficiency. These
estimates are assessed continually during
the term of the contracts and the recognised
revenue and profit are subject to revision
as the contract progresses to completion.
When estimates indicate that a loss will
be incurred, the loss is provided for in the
period in which the loss becomes probable.
ii) Expected credit losses on financial assets:
The impairment provisions of financial
assets are based on assumptions about
risk of default and expected timing of
collection. The Company uses judgment in
making these assumptions and selecting
the inputs to the expected credit loss
calculation based on the Company's history
of collections, customer's creditworthiness,
existing market conditions as well as
forward-looking estimates at the end of
each reporting period.
iii) Useful lives of Property, Plant and
Equipment :
The Company depreciates property, plant
and equipment on a straight-line basis over
estimated useful lives of the assets. The
charge in respect of periodic depreciation
is derived based on an estimate of an
asset's expected useful life or project useful
life and the expected residual value at
the end of its life. The lives are based on
historical experience with similar assets as
well as anticipation of future events, which
may impact their life, such as changes in
technology. The estimated useful life is
reviewed at least annually.
iv) Defined benefit plans and
compensated absences:
The cost of the defined benefit plans and
the present value of the defined benefit
obligations are based on actuarial valuation
using the projected unit credit method. An
actuarial valuation involves making various
assumptions that may differ from actual
developments in the future. These include
the determination of the discount rate, future
salary increases and mortality rates. Due to
the complexities involved in the valuation
and its long-term nature, a defined benefit
obligation is highly sensitive to changes
in these assumptions. All assumptions are
reviewed at each reporting date. The cost
of compensated absences is short term
in nature and valuation is derived based
outstanding employees leave balance at
respective valuation period.
v) Income Taxes
The major tax jurisdictions for the Company
is India. Significant judgments are involved
in determining the provision for income
taxes including judgment on whether tax
positions are probable of being sustained
in tax assessments. A tax assessment
can involve which can only be resolved
over extended time periods. Deferred tax
is recorded on temporary differences
between the tax bases of assets and
liabilities and their carrying amounts,
at the rates that have been enacted or
substantively enacted at the reporting
date. The ultimate realisation of deferred tax
assets is dependent upon the generation of
future taxable profits during the periods in
which those temporary differences and tax
loss carry-forwards become deductible.
The Company considers expected reversal
of deferred tax liabilities and projected
future taxable income in making this
assessment. The amount of deferred tax
assets considered realisable, however,
could reduce in the near term if estimates
of future taxable income during the carry¬
forward period are reduced.
vi) Impairment testing
Goodwill recognized on business
combination is tested for impairment at
least annually and when events occur or
changes in circumstances indicate that the
recoverable amount of goodwill or a cash
generating unit to which goodwill pertains,
is less than the carrying value. The Company
assesses acquired intangible assets with
finite useful life for impairment whenever
events or changes in circumstances
indicate that the carrying amount may not
be recoverable. The recoverable amount
of an asset or a cash generating unit is
higher of value in use and fair value less
cost of disposal. The calculation of value
in use of an asset or a cash generating
unit involves use of significant estimates
and assumptions which include turnover,
growth rates and net margins used to
calculate projected future cash flows, risk-
adjusted discount rate, future economic
and market conditions.
vii) Provisions and contingent liabilities
Provision is recognised when the Company
has a present obligation as a result of past
event and it is probable that an outflow
of resources will be required to settle the
obligation, in respect of which a reliable
estimate can be made. Contingent liabilities
are disclosed when there is a possible
obligation arising from past events, the
existence of which will be confirmed only
by the occurrence or non-occurrence of
one or more uncertain future events not
wholly within the control of the Company or
a present obligation that arises from past
events where it is either not probable that
an outflow of resources will be required to
settle the obligation or a reliable estimate
of the amount cannot be made. Provisions
and contingent liabilities are reviewed at
each balance sheet date and adjusted to
reflect the current best estimates.
viii) Business Combination
I n accounting for business combinations,
estimating the acquisition date fair value of
the identifiable assets acquired (including
useful life estimates), liabilities assumed,
and contingent consideration assumed
involves management judgment. These
measurements are based on information
available at the acquisition date and are
based on expectations and assumptions
that have been deemed reasonable
by management.
ix) Other Estimates
The share-based compensation expense
is determined based on the Company's
estimate of equity instruments that will
eventually vest.
2.3 Revenue Recognition
Revenue from software development and
consulting services is recognized either on time
and material basis or fixed price basis, as the case
may be. Revenue on time and material and job
contracts is recognized as and when the related
services are performed (units delivered, efforts
expended, number of transactions processed
etc.) and Unbilled revenue is accounted on
estimate basis in respect of contracts where the
contractual right to consideration is based on
completion of contractual milestones and other
technical measurements. Revenue from the end
of last invoicing to reporting date is recognized
as unbilled revenue. Invoicing in excess of
revenues are recognized as unearned revenues.
Revenue on fixed price contracts is recognized
where performance obligations are satisfied
over time and there is no uncertainty as to
measurement or collectability of consideration
on the percentage of completion method.
Efforts and costs expended have been used to
measure progress towards completion since
there is direct relationship between input and
productivity. Revenue recognised for any fee or
commission to which it expects to be entitled in
exchange for arranging for the other party to
provide its goods or services.
Revenue from sale of licenses / hardware,
where the customer obtains a "right to use" the
licenses / hardware is recognized at the point
in time when the related license / hardware
is made available to the customer. Revenue
from licenses / hardware where the customer
obtains a "right to access" is recognized over
the access period.
Arrangements to deliver software products
generally have three elements: license,
implementation and annual maintenance. In
accordance with the principles of Ind AS 115,
when implementation services are provided
in conjunction with the licensing arrangement,
the license and implementation have been
identified as two separate performance
obligations. The transaction price for such
contracts are allocated to each performance
obligations based on their respective selling
prices. Maintenance revenue in respect
of software products and other products/
equipment is recognised on pro rata basis
over the period of the underlying maintenance
agreement. Revenue is net of discounts/ price
incentives which are estimated and accounted
based on the terms of the contracts and
excludes applicable indirect taxes.
Revenue from leasing income is recognised on
pro-rata basis over the period of the contract.
Unearned and deferred revenue represents
contractual billings/money received in excess
of revenue recognised as per the terms of
the contract.
2.3.1. Other Income
Dividend income is recognised when
the Company's right to receive payment
is established.
Interest income is recognised on a time
proportion basis using effective interest
rate method.
2.4. Property, Plant and Equipment
Property plant and equipment (PPE) are
stated at cost less accumulated depreciation
and impairment losses if any. Cost includes
expenditure directly attributable to the
acquisition of the asset and cost incurred for
bringing the asset to its present location and
condition for its intended use.
Property, plant and equipment which are
not ready for intended use as on the date of
Balance Sheet are disclosed as "Capital work-
in-progress" and are stated at cost.
Depreciation is provided on a pro-rata basis on
the straight line method based on estimated
useful life prescribed under Schedule II to the
Companies Act, 2013 with the exception of
the following:
i. Computers is depreciated in 6 years and
certain assets of Plant and machinery
and Computers used for the projects is
depreciated over its project useful life.
ii. Leasehold improvements are amortized
over the period of lease term or useful life,
whichever is lower.
iii. Assets given on lease are depreciated over
the shorter of lease term or their useful lives.
iv. Individual assets costing up to Rupees
five thousand are depreciated in full in the
period of purchase.
The residual values, useful lives and method of
depreciation of PPE is reviewed at each financial
year end and adjusted prospectively,
2.5. Intangible Assets
Intangible Assets acquired separately are
initially measured at cost. Intangible assets
acquired in a business combination are
recognised at fair value at the acquisition date.
Subsequently, intangible assets are carried at
cost less any accumulated amortisation and
accumulated impairment losses, if any. The
useful lives of intangible assets are assessed
as either finite or indefinite. The assessment of
indefinite life is reviewed annually to determine
whether the indefinite life continues, if not, it
is impaired or changed prospectively basis
revised estimates.
Finite-life intangible assets are amortised
on a straight line basis over the period of
their expected useful lives. The amortisation
period and the amortisation method for finite-
life intangible assets is reviewed at each
financial year end and adjusted prospectively,
if appropriate. The estimated useful lives of
Software in the range between 5 to 10 years.
Research and Development costs
Research costs are expensed as incurred.
Development expenditure, on an individual
project, is recognized as an intangible asset
when the Company can demonstrate:
• The technical feasibility of completing the
intangible asset so that it will be available
for use or sale
• I ts intention to complete and its ability and
intention to use or sell the asset
• How the asset will generate future
economic benefits
• The availability of resources to complete
the asset
• The ability to measure reliably the
expenditure during development
Subsequently, following initial recognition of the
development expenditure as an asset, the cost
model is applied requiring the asset to be carried
at cost less any accumulated amotisation and
accumulated impairment losses.
Amortisation of the asset begins when
development is complete and the asset is
available for use. It is amortized over the period
of expected future benefit. Amortisation expense
is recognized in the statement of profit and loss.
During the period of development, the asset is
tested for impairment annually.
Goodwill is initially recognised based on the
accounting policy for business combinations.
These assets are not amortised but are tested
for impairment annually.
2.6 Leases
The Company as a lessee
The Company's lease asset classes primarily
consist of leases for Lease hold Improvements
and Buildings. The Company assesses whether
a contract is or 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:
(i) the contract involves the use of an
identified asset
(ii) the Company has the right to obtain
substantially all of the economic benefits
from use of the asset through the period of
the lease and
(iii) the Company has the right to direct the use
of the asset.
(iv) the Company has the right to operate the
asset; or
(v) the Company designed the assets in a
way that predetermined how and for what
purpose it will be used.
At the date of commencement of the lease,
the Company recognises a right-of-use asset
("ROU") 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 leases of low
value assets. For these short-term and leases of
low value assets, the Company recognises the
lease payments as an operating expense on a
straight-line basis over the term of the lease.
The right-of-use assets are initially recognised 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 incurred
and an estimate of costs to dismantle and
remove the underlying asset or to restore
the underlying asset or the site on which it is
located less any lease incentives received.
They are subsequently measured at cost less
accumulated depreciation and impairment
losses, if any. Right-of-use 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 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. The lease liability is subsequently
remeasured by increasing the carrying amount
to reflect interest on the lease liability, reducing
the carrying amount to reflect the lease
payments made.
A lease liability is remeasured upon the
occurrence of certain events such as a change
in the lease term or a change in an index or
rate used to determine lease payments. The
remeasurement normally also adjusts the
leased assets.
Lease liability and ROU asset have been
separately presented in the Balance Sheet
and lease payments have been classified as
financing cash flows.
The Company as a lessor
Leases under which the Company is a lessor are
classified as finance or operating leases. Lease
contracts where all the risks and rewards are
substantially transferred to the lessee, the lease
contracts are classified as finance leases. All
other leases are classified as operating leases.
For leases under which the Company is an
intermediate lessor, the Company accounts
for the head-lease and the sub-lease as two
separate contracts. The sub-lease is further
classified either as a finance lease or an
operating lease by reference to the RoU asset
arising from the head-lease.
2.7. Inventories
Inventories include traded goods and are valued
at lower of cost or net realisable value. Cost of
inventories comprises all costs of purchase and
other costs incurred in bringing the inventory
to their present location and condition. Cost is
determined on the first-in, first-out (FIFO) basis.
Cost of finished goods and work-in-progress
include all costs of purchases, conversion
costs and other costs incurred in bringing
the inventories to their present location and
condition. The net realisable value of finished
goods is the estimated selling price in the
ordinary course of business less the estimated
costs of completion and estimated costs
necessary to make the sale.
2.8. Income Taxes
Income tax expense for the year comprises
of current tax and deferred tax. Income Tax
is recognised in Statement of Profit and Loss,
except to the extent that it relates to items
recognised in the comprehensive income or in
equity. In which case, the tax is also recognised
in other comprehensive income or equity.
Foreign branches recognize current tax and
deferred tax liabilities and assets in accordance
with the applicable local laws.
Tax on income for the current period is
determined on the basis of taxable income and
tax credits computed in accordance with the
provisions of the Income Tax Act,1961 and based
on the expected outcome of assessments/
appeals.
The Company uses estimates and judgements
based on the relevant rulings in the areas
of allowances and disallowances which are
exercised while determining the provision for
income tax.
Current Tax:
Current tax is the expected tax payable/
receivable on the taxable income/ loss for the
year using applicable tax rates at the Balance
Sheet date, and any adjustment to taxes
in respect of previous years. Management
periodically evaluates positions taken in tax
return 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
offset 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.
Deferred Tax:
Deferred tax is recognised in respect of
temporary differences between the carrying
amount of assets and liabilities for financial
reporting purposes and the corresponding tax
base used for computation of taxable Income.
A deferred tax Assets/ liability is recognised
based on the expected manner of realisation or
settlement of the carrying amount of assets and
liabilities, using tax rates enacted, orsubstantively
enacted, by the end of the reporting period.
Deferred tax assets are recognised only to the
extent that it is probable that future taxable
profits will be available against which the asset
can be utilised. Deferred tax assets arereviewed
at each reporting date and reduced to the
extent that it is no longer probable that the
related tax benefit will be realised.
Deferred tax assets and deferred tax liabilities
are offset when there is a legally enforceable
right to set off current tax assets against current
tax liabilities; and the deferred tax assets and
the deferred tax liabilities relate to income taxes
levied by the same taxation authority.
Deferred tax relating to items recognised
outside profit or loss is recognised outside profit
or loss (either in OCI or in equity).
2.9. 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.
2.10. Foreign Currency Transactions
Income and expenses in foreign currencies
are recorded at exchange rates prevailing on
the date of the transaction. Foreign currency
denominated monetary assets and liabilities
are translated at the exchange rate prevailing
on the balance sheet date and exchange
gains and losses arising on settlement and
restatement are recognized in the statement of
profit and loss.
Non-monetary assets and liabilities that are
measured in terms of historical cost in foreign
currencies are not retranslated.
2.11. Business Combination and Goodwill
i) Business Combinations:
Business combinations are accounted for
using the purchase (acquisition) method.
The cost of an acquisition is measured
as the fair value of the assets transferred,
liabilities incurred or assumed, and
equity instruments issued at the date of
exchange by the Company. Identifiable
assets acquired and liabilities and
contingent liabilities assumed in a business
combination are measured initially at fair
value at the date of acquisition. Transaction
costs incurred in connection with a business
acquisition are expensed as incurred.
The cost of an acquisition also includes the
fair value of any contingent consideration
measured as at the date of acquisition.
Any subsequent changes to the fair value
of contingent consideration classified
as liabilities, other than measurement
period adjustments, are recognized in the
statement of profit and loss.
ii) Common Control business combinations:
The Company accounts for business
combinations involving entities or
businesses under common control using
the pooling of interest method. The assets
and liabilities of the combining entities are
reflected at their carrying amounts. The
identity of the reserves shall be preserved
and shall appear in the standalone
financial statements of the transferee in
the same form in which they appeared in
the standalone financial statements of the
transferor. The difference, if any, between
the amount recorded as share capital
issued plus any additional consideration
in the form of cash or other assets and the
amount of share capital of the transferor
shall be transferred to capital reserve and
should be presented separately as Common
Control Transactions Capital reserve.
iii) Goodwill:
The excess of the cost of an acquisition over
the Company's share in the fair value of the
acquiree's identifiable assets and liabilities
is recognized as goodwill. If the excess
is negative, a bargain purchase gain is
recognized in equity as capital reserve
in case a clear evidence does not exist
otherwise the resulting gain is recognised
in other comprehensive income on the date
of acquisition and accumulated in equity
as capital reserve. Goodwill is measured at
cost less accumulated impairment (if any).
Goodwill associated with disposal of an
operation that is part of cash-generating
unit is measured based on the relative
values of the operation disposed of and
the portion of the cash-generating unit
retained, unless some other method better
reflects the goodwill associated with the
operation disposed of.
2.12. Assets Held for Sale and Discontinued
Operations
Non-current assets or disposal groups
comprising of assets and liabilities are classified
as ' Held for Sale" when all the following criteria
are met:
A. The asset (or disposal group) must be
available for immediate sale in its present
condition, subject only to terms that are
usual and customary for sales of such
assets (or disposal groups)
B. Sale must be Highly probable. Sale is
highly probable if (i) management must
be committed to a plan to sell the asset (or
disposal group) (ii) An active programme
to locate the buyer and complete the plan
is initiated (iii) the assets are being actively
marketed at a price that is reasonable
according to it's current fair value, (iv)
sale has been agreed or is expected to
be concluded within 12 months of such
classification, (v) When it is unlikely that
significant changes to the plan will be
made or that plan will be withdrawn.
Subsequently, such non-current assets
and disposal groups classified as 'held
for sale' are measured at the lower of its
carrying value and fair value less costs to
sell. Non-current assets held for sale are not
depreciated or amortised.
A discontinued operation is a component of the
Company's business that represents a separate
line of business that has been disposed of
or is held for sale, or is a subsidiary acquired
exclusively with a view to resale. Classification
as a discontinued operation occurs upon the
earlier of disposal or when the operation meets
the criteria to be classified as held for sale.
M3. Employee Benefits
i. Short-term employee benefits
Employee benefits payable wholly within
twelve months of availing employee service
are classified as short-term employee
benefits. This benefits includes salaries
and wages, bonus and ex- gratia and
compensated absences. The undiscounted
amount of short-term employee benefits to
be paid in exchange of employees services
are recognised in the period in which the
employee renders the related service.
ii. Long term employee benefits
Defined contribution plans
A defined contribution plan is a post¬
employment benefit plan under which an
entity pays specified contributions to a
separate entity and has no obligation to
pay any further amounts. The Company
makes specified monthly contributions
towards the Provident Fund and Employees
State Insurance Corporation ('ESIC'). The
Company's contribution is recognised as
an expense in the Statement of Profit and
Loss during the period in which employee
renders the related service.
Defined benefit plans
The Company's gratuity benefit scheme
is a defined benefit plan. The Company's
net obligation in respect of a defined
benefit plan is calculated by estimating the
amount of future benefit that employees
have earned in return for their service in
the current and prior periods; that benefit
is discounted to determine its present
value, and the fair value of any plan assets
is deducted.
The present value of the obligation under
such defined benefit plan is determined
based on actuarial valuation using the
Projected Unit Credit Method, which
recognizes each period of service as giving
rise to additional unit of employee benefit
entitlement and measures each unit
separately to build up the final obligation.
The obligation is measured at the present
value of the estimated future cash flows.
The discount rates used for determining
the present value of the obligation under
defined benefit plan, are based on the
market yields on Government securities as
at the Balance Sheet date.
When the calculation results in a benefit
to the Company, the recognised asset is
limited to the net total of any unrecognised
actuarial losses and past service costs and
the present value of any future refunds from
the plan or reductions in future contributions
to the plan.
Actuarial gains and losses are recognized
immediately in the Statement of Profit
and Loss.
Remeasurement which comprise of
actuarial gain and losses, the return of plan
assets (excluding interest) and the effect of
asset ceiling (if any, excluding interest) are
recognised in OCI. Plan Assets of Defined
Benefit Plans have been measured at
fair value.
Other Employee Benefits
The undiscounted amount of short-term
employee benefits (compensated absence
benefits) obligation liability in exchange for
the services rendered is recognized based
on the service rendered by the employees
in the reporting year.
2.14. Share Based Payments
The Company measures compensation cost
relating to share-based payments using the fair
valuation method in accordance with Ind AS 102,
Share-Based Payment. Compensation expense
is amortized over the vesting period of the
option on a graded basis. The units generally
vest in a graded manner over the vesting
period. The fair value determined at the grant
date is expensed over the vesting period of the
respective tranches of such grants.
The cost of equity-settled transactions is
determined by the fair value at the date when
the grant is made using the Black-Scholes
valuation model. The expected term of an option
is estimated based on the vesting term and
contractual life of the option. Expected volatility
during the expected term of the option is based
on the historical volatility of share price of the
Company. Risk free interest rates are based on
the government securities yield in effect at the
time of the grant.
The cost of equity settled transactions is
recognised, together with a corresponding
increase in share-based payment reserve
in equity, over the period in which the
performance and/or service conditions are
fulfilled. 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.
Debit or credit in standalone statement of profit
and loss for a period represents the movement
in cumulative expense recognized as at the
beginning and end of that period and is
recognized in employee benefits expense.
The dilutive effect of outstanding options is
reflected in the computation of diluted earnings
per share.
2.15. Earnings Per Share (EPS)
Basic EPS amounts are computed by dividing
the net profit attributable to the equity holders
of the Company by the weighted average
number of equity shares outstanding during the
year adjusted for treasury shares held.
For calculating diluted earnings per share, the
net profit 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.
|