1 B MATERIAL ACCOUNTING POLICIES & OTHER
EXPLANATORY INFORMATIONA. STATEMENT OF COMPLIANCES
The Standalone Financial Statement of the Company
comprise of the Standalone Balance Sheet as at
31st March, 2026, the Standalone Statement of
Profit and Loss (including Other Comprehensive
Income). the Standalone Statement of Cash flows,
the Standalone Statement of Changes in Equity
for the year ended 31st March, 2026 and Material
Accounting Policies and Other Explanatory Notes
to the Standalone Financial Statements (collectively,
the 'The Standalone Financial Statement').
The Company's financial statements have been
prepared in accordance with the provisions
of the Companies Act, 2013 and the Indian
Accounting Standards ("Ind AS") notified under
the Companies (Indian Accounting Standards)
Rules, 2015 and amendments thereto issued
by Ministry of Corporate Affairs under section
133 of the Companies Act, 2013. In addition, the
guidance notes/announcements issued by the
Institute of Chartered Accountants of India (ICAI)
are also applied except where compliance with
other statutory promulgations requires a different
treatment and presentation requirements of
Division II of Schedule III to the Companies Act,
2013 (IND AS compliant, Schedule III), as applicable
to the standalone financial statments.
B. PRESENTATION AND BASIS OF THE
STANDALONE FINANCIAL STATEMENTHistorical cost convention
The Standalone Financial Statements have been
prepared on accrual basis and historical cost
basis, except for certain financial assets and
liabilities accounting to IND AS measured at fair
value (refer accounting policy regarding financial
instruments).
Going Concern Assumption
The Company has prepared the Standalone
Financial Statements on the basis that it will
continue to operate as a going concern.
Measurement of fair values
Certain accounting policies and disclosures of the
Company require the measurement of fair values,
for both financial and non-financial assets and
liabilities.
The Company has an established control framework
with respect to the measurement of fair values and
regularly reviews significant unobservable inputs
and valuation adjustments.
Fair values are categorised into different levels in a
fair value hierarchy based on the inputs used in the
valuation techniques as follows:
Level 1: quoted prices (unadjusted) in active markets
for identical assets or liabilities
Level 2: inputs other than quoted prices included
in Level 1 that are observable for the asset or
liability, either directly (i.e., as prices) or indirectly
(La. derived from prices).
Level 3: inputs for the asset or liability that are not
based on observable market data (unobservable
inputs).
When measuring the fair value of an asset or a
liability, the Company uses observable market data
as far as possible. If the inputs used to measure the
fair value of an asset or a liability fall into different
levels of the fair value hierarchy, then the fair
value measurement is categorised in its entirety
in the same level of the fair value hierarchy as the
lowest level input that is significant to the entire
measurement.
The Company recognises transfers between levels
of the fair value hierarchy at the end of the reporting
period during which the change has occurred.
C. PRINCIPAL OF PREPARATION OF FINANCIAL
STATEMENTS
The Standalone Financial Statements have been
prepared on the following basis:
a) The Standalone Financial Statements of the
Company and its joint operation are combined
on a line by line basis on proportionate basis
by adding together like items of assets,
liabilities, equity, income, expenses and
cash flows, after fully eliminating intra-group
balances and intra-group transactions.
b) The Standalone Financial Statements have
been prepared using uniform accounting
policies for like transactions and other events
in similar circumstances.
c) The Company's interest in its joint operation
are accounted for using the Proportional
Consolidation Method in the Standalone
Financial Statements. The Standalone
Financial Statements are prepared using
uniform accounting policies for like
transactions and other events in similar
circumstances.
I f a member of the Company uses accounting
policies other than those adopted in
the Standalone Financial Statements for
like transactions and events in similar
circumstances, appropriate adjustments are
made to that Company member's financial
statements in preparing the Standalone
Financial Statements to ensure conformity
with the Company's accounting policies. The
Standalone Financial Statements of all entities
used for the purpose of consolidation are
drawn up to same reporting date as that of
the parent company, i.e. year ended on 31st
March, 2026. The details of the Standalone
entities are as follows;
D. INTERESTS IN JOINT OPERATIONS
A joint operation is a joint arrangement whereby the
parties that have joint control of the arrangement
have rights to the assets and obligations for the
liabilities, relating to the arrangement. Joint control
is the contractually agreed sharing of control of an
arrangement, which exists only when decisions
about the relevant activities require unanimous
consent of the parties sharing control.
The Company recognises its direct right to the
assets, liabilities, revenues and expenses of joint
operations and its share of any jointly held or
incurred assets, liabilities, revenues and expenses.
These have been incorporated in the standalone
financial statements under the appropriate
headings.
E. CRITICAL ACCOUNTING ESTIMATES &
JUDGEMENTS
The preparation of The Standalone Financial
Statements in conformity with Indian Accounting
Standards (Ind AS) requires management to make
estimates and assumptions that affect the reported
balances of assets and liabilities and disclosure of
contingent liabilities at the date of The Standalone
Financial Statement and results of operations
during the reporting period. The Management
believes that the estimates used in preparation of
The Standalone Financial Statement are prudent
and reasonable. Differences between actual
results and estimates are recognised in the period
in which the results are shown/materialised.
i) Estimated useful life of intangible asset and
property, plant and equipment
The Company assesses the remaining useful
lives of Intangible assets and property, plant
and equipment on the basis of internal
technical estimates. Management believes
that assigned useful lives are reasonable
ii) Income taxes:
Deferred tax assets are recognised for
the unused tax credit to the extent that it is
probable that taxable profits will be available
against which the losses will be utilised.
Significant management judgment is required
to determine the amount of deferred tax
assets that can be recognised, based upon
the likely timing and the level of future taxable
profits.
iii) Defined benefit plans and Other Long-Term
Benefits:
The cost of the defined benefit plan and other
long-term benefit and their present value are
determined using actuarial valuations. 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 most
sensitive is discount rate. Future salary
increases and gratuity increases are based
on expected future inflation rates.
iv) Contingent liabilities:
Management judgment is required for
estimating the possible outflow of resources,
in respect of contingencies/claim/litigations
against the Company as it is not possible to
predict the outcome of pending matters with
accuracy. The management believes the
estimates are reasonable and prudent.
v) Revenue Recognition
The Company uses the stage of completion
method usin g input meth od and /or on
completion of physical proportion of the
contract work to measure progress towards
completion in respect of construction
contracts. This method is followed when
reasonably dependable estimates of costs
applicable to various elements of the contract
can be made. Key factors that are reviewed
in estimating the future costs to complete
include estimates of future labour costs
and productivity efficiencies. Because the
financial reporting of these contracts depends
on estimates that are assessed continually
during the term of these contracts, recognised
revenue and profit are subject to revisions 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.
vi) Provision for doubtful receivables and
contract assets:
I n assessing the recoverability of the
trade receivables and contracts assets,
management’s judgement involves
consideration of aging status, evaluation of
litigations and the likelihood of collection
based on the terms of the contract.
vii) Estimation of net realisable value of
inventories:
Inventories are stated at the lower of cost
and Fair value. In estimating the net realisable
value/Fair value of Inventories, the Company
makes an estimate of future selling prices and
costs necessary to make the sale.
Revisions to accounting estimates are recognised
in the period in which the estimate is revised if
the revision affects only that period. If the revision
affects both current and future period, the same is
recognised accordingly.
F. CURRENT AND NON-CURRENT CLASSIFICATION
The Company presents assets and liabilities based
on current/non-current classification.
An asset is treated as current when it is:
• Expected to be realised or intended to be sold
or consumed in normal operating cycle.
• Held primarily for the purpose of trading
• Expected to be realised within twelve months
after the reporting period, or
• Cash or cash equivalent unless restricted from
being exchanged or used to settle a liability
for at least twelve months after the reporting
period.
A liability is current when:
• It is expected to be settled in normal operating
cycle
• It is held primarily for the purpose of trading
• It is due to be settled within twelve months
after the reporting period, or
• There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period.
The Company classifies all other liabilities
as non-current. Deferred tax assets and
liabilities are classified as non-current
assets and liabilities, respectively.
The operating cycle is the time between the
acquisition of assets for processing and their
realisation in cash and cash equivalents. Based
on the nature of service and the time between
rendering of services and their realisation in
cash and cash equivalents, 12 months has
been considered by the Company for th e
purpose of current/non-current classification
of assets and liabilities.
G. FUNCTIONAL AND PRESENTATION CURRENCY
The Functional currency and Presentation Currency
of the Company is Indian Rupee.
Amount in the Standalone Financial Statements are
presented in Indian Rupee in lakhs rounded off to
two decimal places as permitted by Schedule III to
the Act.
H. CLASSIFICATION OF EXPENDITURE/INCOME
Except otherwise indicated:
i) All expenditure and income are accounted for
under the natural heads of account.
ii) All expenditure and income are accounted for
on accrual basis.
I. REVENUE FROM CONTRACTS WITH CUSTOMER
Revenue from contracts with customers is
recognised when a performance obligation is
satisfied by transfer of promised goods or services
to a customer.
The Company transfers control of a good or service
over time and therefore satisfies a performance
obligation and recognises revenue.
Over a period of time if one of the following criteria
is met:
(a) the customer simultaneously consumes the
benefit of the Company’s performance or
(b) the customer controls the asset as it is
being created/enhanced by the Company’s
performance or
(c) there is no alternative use of the asset, and the
Company has either explicit or implicit right of
payment considering legal precedents.
I n all other cases, performance obligation is
considered as satisfied at a point in time.
The revenue towards satisfaction of performance
obligation is measured at transaction price
recognised to the extent of transaction price
allocated to that performance obligation.
Transaction price is the amount of consideration
to which the Company expects to be entitled in
exchange for transferring goods or services to a
customer excluding amounts collected on behalf
of a third party. The Company includes variable
consideration as part of transaction price when
there is a basis to reasonably estimate the amount
of the variable consideration and when it is probable
that a significant reversal of cumulative revenue
recognised will not occur when the uncertainty
associated with the variable consideration is
resolved. Variable consideration is estimated
using the expected value method or most likely
amount as appropriate in a given circumstance.
Payment terms agreed with a customer are as per
business practice and the financing component, if
significant, is separated from the transaction price
and accounted as interest income.
Costs to obtain a contract which are incurred
regardless of whether the contract was obtained
are charged-off in profit or loss immediately in
the period in which such costs are incurred.
Incremental costs of obtaining a contract, if any,
and costs incurred to fulfil a contract are amortised
over the period of execution of the contract in
proportion to the progress measured in terms of
a proportion of actual cost incurred to-date, to the
total estimated cost attributable to the performance
obligation.
Significant judgments are used in:
a. Determining the revenue to be recognised in
case of performance obligation satisfied over
a period of time; revenue recognition is done
by measuring the progress towards complete
satisfaction of performance obligation.
b. Determining the expected losses, which are
recognised in the period in which such losses
become probable based on the expected
total contract cost as at the reporting date.
c. Determining the method to be applied to
arrive at the variable consideration requiring
an adjustment to the transaction price.
i) The accounting policies for the specific revenue
streams of the Company as summarised
below:
Revenue includes adjustments made towards
liquidated damages and variation wherever
applicable. Escalation and other claims which are
not ascertainable/acknowledged by customers are
not taken into account.
A) Revenue from construction Contract is
recognised as follows:
• Cost plus contracts: Revenue from cost
plus contracts is recognised over time
and is determined with reference to the
extent performance obligations have
been satisfied. The amount of transaction
price allocated to the performance
obligations satisfied represents the
recoverable costs incurred during the
period plus the margin as agreed with
the customer.
• Fixed price contracts: Contract revenue
is recognised over time to the extent
of performance obligation satisfied and
control is transferred to the customer.
Contract revenue is recognised at
allocable transaction price which
represent the cost of work performed on
the contract plus proportionate margin,
using the percentage of completion
method. Percentage of completion is the
proportion of cost of work performed
to-date, to the total estimated contract
costs.
For contracts where the aggregate
of contract cost incurred to date plus
recognised profits (or minus recognised
losses as the case may be) exceeds the
progress billing, the surplus is shown
as contract asset and termed as “Due
from customers”. For contracts where
progress billing exceeds the aggregate
of contract costs incurred to-date plus
recognised profits (or minus recognised
losses, as the case may be), the surplus
is shown as contract liability and termed
as “Due to customers”. Amounts
received before the related work is
performed are disclosed in the Balance
Sheet as contract liability and termed
as “Advances from customer”. The
amounts billed on customer for work
performed and are unconditionally due
for payment i.e. only passage of time is
required before payment falls due, are
disclosed in the Balance Sheet as trade
receivables. The amount of retention
money held by the customers pending
completion of performance milestone is
disclosed as part of contract asset and is
reclassified as trade receivables when it
becomes due for payment.
I mpairment loss (termed as provision
for foreseeable losses in the financial
statements) is recognised in profit or loss
to the extent the carrying amount of the
contract asset exceeds the remaining
amount of consideration that the
Company expects to receive towards
remaining performance obligations (after
deducting the costs that relate directly
to fulfill such remaining performance
obligations). The Company recognises
impairment loss (termed as provision for
expected credit loss on contract assets
in the financial statements) on account
of credit risk in respect of a contract
asset using expected credit loss model
on similar basis as applicable to trade
receivables.
B. Revenue from rendering of services
under operation & maintenance contract
is recognised over time as the customer
receives the benefit of the Company's
performance and the Company has an
enforceable right to payment for services
transferred. Unbilled revenue represents
value of services performed in accordance
with the contract terms but not billed.
C. Other Recognition in revenue represents
income earned from the activities incidental
to the business and is recognised when
complete certainty of its realisations is
established. Revenue Recognition and
maintenance where revenue consists of
Fixed and variable. Fixed Component is
uncond ition al and variable component is
conditional, both are booked as revenue
when complete certainty is established
and the Company has an enforceable right
to payment for services rendered. In the
absence of complete certainty company is
recognising revenue as Unbilled revenue to
the extent of amount which has certainty to
payment.
D. Revenue related to Service contracts
(including operation and maintenance
contracts and job work contracts) in which the
Company has the right to consideration from
the customer in an amount that corresponds
directly with the value to the customer of the
Company’s performance completed to date,
revenue is recognised when services are
performed and contractually billable.
ii) Other Income
A. I nterest income shall be calculated by using
EIR method.
B. Awards and settlements: Revenue in relation
to awards; such as arbitration awards and
settlement; such as settlement of agreement
is recognised as revenue, whenever complete
certainty of its realisations is established.
C. Other items of income are accounted as and
when the right to receive such income arises
and it is probable that the economic benefits
will flow to the Company and the amount of
income can be measured reliably.
D. Dividend income is accounted in the period
in which the right to receive the same is
established.
J. EXCEPTIONAL ITEMS
An item of income or expense which by its size,
type or incidence requires disclosure in order to
improve an understanding of the performance of
the Company is treated as an exceptional items
and disclosed as such in the Standalone Financial
Statements.
K. PROPERTY, PLANT AND EQUIPMENT (PPE)
PPE is recognised 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 PPE is stated at original cost net
of tax/duty credits availed, if any less accumulated
depreciation and cumulative impairment, if any All
directly attributable costs related to the acquisition
of PPE and, borrowing costs case of qualifying
assets are capitalised in accordance with the
Company's accounting policy.
Subsequent costs are included in the assets
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 can be
measured reliably.
PPE not ready for the intended use on the date of
the Balance Sheet are disclosed as "capital work-
in-progress”
Depreciation is recognised using written down
value method so as to write off the cost of the
assets (other than freehold land and capital work-in¬
progress) less their residual values over their useful
lives specified in Schedule II to the Companies Act,
2013, or in the case of assets where the useful life
was determined by technical evaluation, over the
useful life so determined.
Depreciation on additions to deductions from,
owned assets is calculated pro rata to the period
of use.
The estimated useful lives, residual values and
depreciation method are reviewed at each financial
year end and the effect of any change is accounted
for on prospective basis.
The carrying amount of the all property, plant and
equipment are derecognised on its disposal or
when no future economic benefits are expected
from its use or disposal and the gain or loss on de¬
recognition is recognised in the statement of profit
& loss.
L. INTANGIBLE ASSETS
Intangible assets are recognised when it is
probable that the future economic benefits that are
attributable to the asset will flow to the Company
and the cost of the asset can be measured reliably.
Intangible assets are stated at original cost net of
tax/duty credits availed, if any, less accumulated
amortisation and cumulative impairment. All
directly attributable costs and other administrative
and other general overhead expenses that are
specifically attributable to acquisition of intangible
assets are allocated and capitalised as a part of the
cost of the intangible assets.
I ntangible assets not ready for the intended use
on the date of the Balance Sheet are disclosed as
“Intangible assets under development
I ntangible assets are amortised on straight line
method basis over the estimated useful life.
The method of amortisation and useful life are
reviewed at the end of each financial year with
the effect of any changes in the estimate being
accounted for on a prospective basis.
M. IMPAIRMENT OF ASSETSIntangible assets, investment property and
property, plant and equipment
As at the end of each financial year, the carrying
amounts of PPE, intangible assets and investments
in subsidiary and Joint Operations are reviewed
to determine whether there is any indication that
those assets have suffered an impairment loss if
such indication exists, PPE, investment property
and intangible assets are tested for impairment
so as to determine the impairment loss if any.
Intangible assets with indefinite life are tested for
impairment each year.
I mpairment loss is recognised when the carrying
amount of an asset exceeds its recoverable
amount. Recoverable amount is determined:
(i) In the case of an individual asset, at the higher
of the fair value less costs to sell and the value
in use.
(ii) I n the case of a cash generating unit (the
smallest identifiable group of assets that
generates independent cash flows), at the
higher of the cash generating unit’s fair value
less costs of disposal and the value-in-use.
N. IMPAIRMENT OF FINANCIAL ASSETS
The Company recognises loss allowances using
the Expected Credit Loss (ECL) model for the
financial assets which are not at fair value through
profit or loss. Loss allowance for trade receivables
with no significant financing component is
measured at an amount equal to lifetime ECL. For
all other financial assets, expected credit losses
are measured at an amount equal to the 12-month
ECL, unless there has been a significant increase
in credit risk from initial recognition in which case
those are measured at lifetime ECL. The amount of
expected credit losses (or reversal) that is required
to adjust the loss allowance at the reporting date
is recognised as an impairment gain or loss in the
statement of profit or loss.
O. IMPAIRMENT OF NON-FINANCIAL ASSETS
Intangible assets and property, plant and equipment
are evaluated for recoverability whenever events
or changes in circumstances indicate that their
carrying amounts may not be recoverable. For the
purpose of impairment testing, the recoverable
amount (i.e. the higher of the fair value less cost to sell
and the value-inuse) is determined on an Individual
asset basis unless the asset does not generate
cash flows that are largely Independent of those
from other assets. In such cases, the recoverable
amount is determined for the Cash Generating Unit
(CGU) to which the asset belongs. If such assets
are considered to be impaired, the impairment
to be recognised in the statement of profit and
loss is measured by the amount by which the
carrying value of the assets exceeds the estimated
recoverable amount of the asset. An impairment
loss is reversed in the statement of profit and loss
if there has been a change in the estimates used
to determine the recoverable amount. The carrying
amount of the asset is increased to its revised
recoverable amount, provided that this amount
does not exceed the carrying amount that would
have been determined (net of any accumulated
amortisation or depreciation) had no impairment
loss been recognised for the asset in prior years.
P. CLAIMS & COUNTER CLAIMS
Claims and counter claims including under
arbitrations are accounted for on their final
Settlement/award. Contract related claims are
recognised when there is a reasonable certainty.
Q. INVENTORIES
Raw Materials:
Raw Materials are valued at lower of cost, based
on First in First out method arrived after including
Freight inward and other expenditure directly
attribute to acquisition or net realisable value.
Work in Progress:
Work in Progress, are valued at cost based on First
in First out method.
Stores, Fuel and Packing Materials are valued at
lower of cost based on First in First out method or
net realisable value.
Cost of inventories comprises all costs of purchase,
conversion and other costs incurred in bringing the
inventories to their present location and condition.
Net realisable value is the estimated selling price in
the ordinary course of business, less the estimated
costs of completion and selling expenses.
R. FINANCIAL INSTRUMENTS
Initial Recognition:
The Company recognises financial assets and
financial liabilities when it becomes a party to the
contractual provisions of the instrument. All financial
assets and liabilities are recognised at fair value
on initial recognition, except for trade receivables/
payables and where cost of generation of fair value
exceeds benefits, which are initially measured
at transaction price. Transaction costs directly
related to the acquisition or issue of the financial
assets and financial liabilities (other than financial
assets and financial liabilities through profit & loss
account) are added to or deducted from the cost
of financial assets or financial liabilities. Transaction
cost directly attributed to the acquisition of financial
assets or financial liabilities at fair value through
profit & loss account are recognised immediately
in the statement of profit & loss.
Subsequent Recognition:Non-derivative financial instruments
(i) Financial assets carried at amortised cost: A
financial asset is subsequently measured at
amortised cost if it is held within a business
model whose objective is to hold the asset in
order to collect contractual cash flows and the
contractual terms of the financial asset give
rise on specified dates to cash flows that are
solely payments of principal and interest on
the principal amount outstanding.
(ii) Financial assets at fair value through other
comprehensive income: A financial asset is
subsequently measured at fair value through
other comprehensive income if it is held
within a business model whose objective is
achieved by both collecting contractual cash
flows and selling financial assets and the
contractual terms of the financial asset give
rise on specified dates to cash flows that are
solely payments of principal and interest on
the principal amount outstanding.
(iii) Financial assets at fair value through profit or
loss: A financial asset which is not classified
in any of the above categories (including
investment in units of mutual funds) is
subsequently fair valued through profit or
loss.
(iv) Financial liabilities: Financial liabilities are
subsequently carried at amortised cost
using the effective interest method, except
for contingent consideration recognised in a
business combination which is subsequently
measured at fair value through profit and loss.
For trade and other payables maturing within
one year from the Balance Sheet date, the
carrying amounts approximate fair value due
to the short maturity of these instruments.
(v) I nvestment in Subsidiaries/Joint Operations:
Investment in subsidiaries/Joint Operations
are carried at cost in the separate financial
statements. Any gain or losses on disposal
of these investments are recognised in the
statement of profit & loss.
S. CASH AND CASH EQUIVALENTS
Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months
or less, that are readily convertible to a known
amount of cash and subject to an insignificant risk
of changes in value.
For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash and short¬
term deposits, as defined above, net of outstanding
bank overdrafts as they are considered an integral
part of the Company's cash management.
T. FINANCIAL LIABILITIES
Financial liabilities are initially recognised at the fair
value of the consideration received less directly
attributable transaction cost.
Subsequent to initial measurement, financial
liabilities viz borrowings are measured at amortised
cost. The difference in the initial carrying amount of
the financial liabilities and their redemption value
is recognised in the statement of profit & loss over
the contractual term using the effective interest
rate method.
Financial liabilities are further classified as current
and non-current depending whether they are
payable within 12 months from the balance date or
beyond.
Financial liabilities are derecognised when the
Company is discharged from its obligation; they
expire, are cancelled or replaced by a new liability
with substantial modified terms.
U. EARNING PER SHARE
Basic Earnings Per Share is computed by dividing
the net profit attributable to the equity shareholders
of the Company to the weighted average number
of Shares outstanding during the period & Diluted
earnings per share is computed by dividing the net
profit attributable to the equity shareholders of the
Company after adjusting the effect of all dilutive
potential equity shares that were outstanding
during the period. The weighted average number
of shares outstanding during the period includes
the weighted average number of equity shares that
could have issued upon conversion of all dilutive
potential.
V. TAXATION
Current Tax
Current tax assets and liabilities are offset where
the Company has legally enforceable right to offset
and intends either to settle on net basis, or to realise
the assets and settle the liability simultaneously.
Deferred Tax Assets and Liabilities
Deferred tax is recognised for all taxable temporary
differences and is calculated based on the carrying
amounts of assets and liabilities for financial
reporting purposes and the amounts used for
taxation purposes.
Deferred tax is measured at the tax rates that are
expected to be applied when the asset is realised
or the liability is settled, based on the laws that
have been enacted or substantively enacted at the
reporting date.
Deferred tax assets are recognised only to the
extent that it is probable that future taxable profits
will be available against which the assets can be
utilised. Deferred tax assets are reviewed at each
reporting date and are reduced to the extent that
it is no longer probable that the related tax benefit
will be realised.
Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset and
when the deferred tax balances relate to taxes
levied by the same tax authority on the same
taxable entity, or on different tax entities, but the
Company intends to settle current tax liabilities
and assets on a net basis or their tax assets and
liabilities will be realised simultaneously.
Current and Deferred Tax for the Year
Current and deferred tax are recognised in the
statement of profit & loss, except when they
relates to items that are recognised in other
comprehensive income or directly in equity, in
which case, the current tax and deferred tax
is recognised directly in other comprehensive
income or equity respectively.
W. EMPLOYEE BENEFITS
The Company provides for the various benefits
plans to the employees. These are categorised into
Defined Benefits Plans and Defined Contributions
Plans. Defined contribution plans includes the
amount paid by the Company towards the liability
for Provident fund to the employees provident fund
organisation and Employee State Insurance fund in
respect of ESI and defined benefits plans includes
the retirement benefits, such as gratuity and paid
absences (leave benefits) both accumulated and
non-accumulated.
a. I n respect Defined Contribution Plans,
contribution made to the specified fund based
on the services rendered by the employees
are charged to Statement of Profit & Loss in
the year in which services are rendered by
the employee.
b. Liability in respect of Defined Long Term
benefit plan is determined at the present value
of the amounts payable determined using
actuarial valuation techniques performed by
an independent actuarial at each balance
sheet date using the projected unit credit
methods. Re-measurement, comprising
actuarial gain and losses, the effects of
assets ceiling (if applicable) and the return on
plan assets (excluding interest), is reflected
immediately in the statement of Financial
Position with a charge or credit recognised
in other comprehensive income in the period
in which they occur. Past Service cost is
recognised in the statement of profit & loss in
the period of plan amendment.
c. Liabilities for accumulating paid absences
is determined at the present value of the
amounts payable determined using the
actuarial valuation techniques performed by
an independent actuarial at each balance
sheet date using the projected unit credit
method. Actuarial gain or losses in respect of
accumulating paid absences are charged to
statement of profit & loss account.
d. Liabilities for short term employee benefits
are measured at undiscounted amount of the
benefits expected to be paid and charged to
Statement of Profit & Loss in the year in which
the related service is rendered.
|