2. Material Accounting Policies
(I) Statement of compliance
Standalone financial statements have been prepared
in accordance with the accounting principles generally
accepted in India including Indian Accounting Standards
(Ind AS) prescribed under the Section 133 of the
Companies Act, 2013 read with Rule 3 of the Companies
(Indian Accounting Standards) Rules, 2015 as amended
and presentation and disclosures requirement of
Division III of revised Schedule III of the Companies Act
2013, (Ind AS Compliant Schedule III), as applicable to
standalone financial statements.
Accordingly, the Company has prepared the standalone
financial statements which comprise of Balance Sheet,
Statement of Profit & Loss, the Statement of cash
flows, the statement of changes in equity and material
accounting policies and other explanatory information
(together hereinafter referred to as "Standalone
Financial Statements" or "Financial Statements").
The aforesaid standalone financial statements have
been approved by the Board of Directors in the meeting
held on 28th May, 2025.
(II) Basis of preparation and presentation of
standalone financial statements:
The standalone financial statements of the Company
have been prepared in accordance with historical
cost basis except for certain financial instruments
measured at fair value at the end of each reporting year
as explained in the accounting policies below.
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,
regardless of whether that price is directly observable
or estimated using another valuation technique. In
estimating the fair value of an asset or a liability, the
Company takes into account the characteristics of
the asset or liability if market participants would take
those characteristics into account when pricing the
asset or liability at the measurement date. Fair value
for measurement and/ or disclosure purposes in these
financial statements is determined on such a basis,
except for share based payment transactions that are
within the scope of Ind AS 102, leasing transactions that
are within the scope of Ind AS 17, and measurements
that have some similarities to fair value but are not fair
value, such as value in use in Ind AS 36.
Fair value measurements under Ind AS are categorized
into Level 1, 2, or 3 based on the degree to which the
inputs to the fair value measurements are observable
and the significance of the inputs to the fair value
measurement in its entirety, which are described
as follows:
Level 1 inputs are quoted prices (unadjusted) in active
markets for identical assets or liabilities that the
Company can access at measurement date
Level 2 inputs are inputs, other than quoted prices
included within level 1, that are observable for the asset
or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the valuation
of assets or liabilities
The Financial Statements is presented in INR and all
values are rounded to the nearest lakhs except when
otherwise stated.
III) Investments in associates
The Company has accounted for its investments in
associates at cost. Where the carrying amount of
investment is greater than its estimated recoverable
amount, it is written down immediately to its recoverable
amount and the difference is transferred to the
Statement of Profit and Loss. On disposal of investment,
the difference between the net disposal proceeds
and the carrying amount is charged or credited to the
Statement of Profit and Loss.
IV) Employee benefits expense
The Company has following post-employment plans:
a) Defined benefit plans - gratuity
i) The liability or asset recognised in the
balance sheet in respect of defined benefit
gratuity plan is the present value of defined
benefit obligations at the end of the reporting
period. The defined benefit obligation is
calculated annually by actuaries through
actuarial valuation using the projected unit
credit method.
ii) The Company recognises the following
changes in the net defined benefit obligation
as an expense in the statement of profit
and loss:
• Service costs comprising current
service costs, past-service costs, gains
and losses on curtailment and non¬
routine settlements
• Net interest expense or income
iii) The net interest cost is calculated by applying
the discount rate to the net balance of the
defined benefit obligation and fair value of
plan assets. This cost is included in employee
benefit expenses in the statement of the
profit & loss.
iv) Re-measurement comprising of actuarial
gains and losses arising from:
• Re-measurement of Actuarial (gains)/
losses
• Return on plan assets, excluding amount
recognized in effect of asset ceiling
• Re-measurement arising because of
change in effect of asset ceiling are
recognised in the period in which they
occur directly in other comprehensive
v) Ind AS 19 requires the exercise of judgment
in relation to various assumptions including
future pay rises, inflation and discount rates
and employee and pensioner demographics.
The Company determines the assumptions in
conjunction with its actuaries, and believes
these assumptions to be in line with best
practice, but the application of different as¬
sumptions could have a significant effect on
the amounts reflected in the income state¬
ment, other comprehensive income and bal¬
ance sheet. There may be also interdepend¬
ency between some of the assumptions.
b) Defined contribution plans - provident fund
i) Under defined contribution plans, the
Company pays pre-defined amounts to
separate funds and does not have any
legal or informal obligation to pay additional
sums. Defined Contribution plan comprise of
contributions to the employees' provident
fund and certain state plans like Employees'
State Insurance. The Company's payments to
the defined contribution plans are recognised
as expenses during the period in which the
employees perform the services that the
payment covers.
ii) A liability for a termination benefit is recog¬
nised at the earlier of when the entity can no
longer withdraw the offer of the termination
benefit and when the entity recognises any
related restructuring costs.
c) Short-term and other long-term employee
benefits
i) A iability is recognised for benefits accruing
to employees in respect of wages and
salaries, annual leave and sick leave in the
period the related service is rendered at
the undiscounted amount of the benefits
expected to be paid in exchange for
that service.
ii) Liabilities recognised in respect of short¬
term employee benefits are measured at
the undiscounted amount of the benefits
expected to be paid in exchange for the
related service.
iii) Liabilities recognised in respect of other
long-term employee benefits are measured
at the present value of the estimated future
cash outflows expected to be made by the
Company in respect of services provided by
employees up to the reporting date.
iv) Compensated absences which are not
expected to occur within twelve months
after the end of the period in which the
employee renders the related services are
recognised as a liability at the present value
of the obligation as at the Balance sheet date
determined based on an actuarial valuation.
(V) Share-based payment arrangements
i) Equity-settled share-based payments to
employees are measured at the fair value of the
equity instruments at the grant date. Details
regarding the determination of the fair value of
equity- settled share-based transactions are set
out in note no.26.
ii) The fair value determined at the grant date of
the equity-settled share-based payments is
expensed on a straight-line basis over the vesting
period, based on the Company's estimate of
equity instruments that will eventually vest, with
a corresponding increase in equity. At the end of
each reporting period, the Company revises its
estimate of the number of equity instruments
expected to vest. The impact of the revision
of the original estimates, if any, is recognised
in Statement of Profit and Loss such that the
cumulative expense reflects the revised estimate,
with a corresponding adjustment to the equity-
settled employee benefits reserve.
The Company has created an Employee Benefit
Trust for providing share-based payment to its
employees. The company uses the Trust as a
vehicle for distributing shares to employees under
the employee remuneration schemes. The Trust
buys shares of the Company from the market, for
giving shares to employees. The Company treats
Trust as its extension and shares held by the Trust
are treated as treasury shares.
Own equity instruments that are reacquired
(treasury shares) are recognized at cost and
deducted from Equity. No gain or loss is recognized
in profit or loss on the purchase, sale, issue
or cancellation of the Company's own equity
instruments. Share options exercised during the
reporting period are satisfied with treasury shares.
(VI) Financial Instruments
Financial assets and financial liabilities are recognised
when an entity becomes a party to the contractual
provisions of the instrument.
Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of
financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value
through statement of Profit and Loss (FVTPL)) are
added to or deducted from the fair value of the financial
assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to
the acquisition of financial assets or financial liabilities
at fair value through profit and loss are recognized
immediately in the Statement of Profit and Loss.
A. Financial assets:
a) Recognition and initial measurement:
Financial assets primarily comprise of loans and
advances, premises and other deposits, trade
receivables and cash and cash equivalents.
Recognised financial assets are initially measured
at fair value except for trade receivables which are
initially measured at transaction price. Transaction
costs and revenues that are directly attributable to
the acquisition or issue of financial assets (other
than financial assets at FVTPL) are added to or
deducted from the fair value of the financial assets,
as appropriate, on initial recognition. Transaction
costs and revenues directly attributable to the
acquisition of financial assets at FVTPL are
recognised immediately in profit or loss.
b) Subsequent measurement:
All recognised financial assets that are within the
scope of Ind AS 109 are required to be subsequently
measured at amortised cost or fair value on the
basis of the entity's business model for managing
the financial assets and the contractual cash flow
characteristics of the financial assets.
c) Classification of financial assets
On initial recognition, a financial asset is classified
to be measured at amortised cost, fair value
through other comprehensive income (FVTOCI) or
Fair value through profit and loss (FVTPL)
(i) Financial Assets at amortised cost:
A financial asset is measured at the amortised
cost if both the following conditions are met and is
not designated at FVTPL:
a. The asset is held within a business model
whose objective is to hold assets for
collecting contractual cash flows, and
b. 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.
(ii) Financial Assets at fair value through profit and
loss/other comprehensive income:
All equity investments in scope of Ind AS 109 are
measured at fair value. The Company makes such
election on an instrument by instrument basis. The
classification is made on initial recognition and
is irrevocable.
If the Company decides to classify an instrument
as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized
in the Other Comprehensive Income. There is no
recycling of the amounts from Other Comprehensive
Income (OCI) to Profit and Loss, even on sale of
investment. However, the Company may transfer
the cumulative gain or loss within equity.
Equity instruments included within the FVTPL
category are measured at fair value with all
changes recognized in the statement of profit
and loss.
All other financial assets are classified as measured
at FVTPL. In addition, to initial recognition, the
Company may irrevocably designate a financial
asset that otherwise meets the requirements to
be measured at cost or at FVTOCI as at FVTPL if
doing so eliminates or significantly reduces and
accounting mismatch that would otherwise arise.
Financial assets at FVTPL are measured at Fair
Value at the end of each reporting period, with
any gains and losses arising on remeasurement
recognized in the statement of profit or loss. The
net gain or loss recognized in the statement of
profit or loss incorporates any dividend or interest
earned on the financial assets and is included in
the 'other income' line item. Dividend on financial
asset at FVTPL is recognized when:
• The Company's right to receive the dividend
is established
• It is probable that the economic benefits
associated with the dividends will flow to
the entity.
• The dividend does not represent a recovery
of part of cost of the investment and the
amount of dividend can be measured reliably.
d) De-recognition of financial assets
The Company applies the expected credit
loss model for recognizing impairment loss on
financial assets measured at amortised cost,
debt instrument at FVTOCI, trade receivables,
other contractual rights to receive cash for other
financial assets, and financial guarantees not
designated as at FVTPL.
On derecognition of a financial asset in its entirety,
the difference between the asset's carrying
amount and the sum of the consideration received
and receivable and the cumulative gain or loss
that had been recognised in other comprehensive
income and accumulated in equity is recognised
in profit or loss if such gain or loss would have
otherwise been recognised in profit or loss on
disposal of that financial asset.
On derecognition of a financial asset other than
in its entirety (e.g. when the Company retains an
option to repurchase part of a transferred asset),
the Company allocates the previous carrying
amount of the financial asset between the
part it continues to recognise under continuing
involvement, and the part it no longer recognises
on the basis of the relative fair values of those
parts on the date of the transfer. The difference
between the carrying amount allocated to the
part that is no longer recognised and the sum of
the consideration received for the part no longer
recognised and any cumulative gain or loss
allocated to it that had been recognised in other
comprehensive income is recognised in profit or
loss if such gain or loss would have otherwise
been recognised in profit or loss on disposal of that
financial asset. A cumulative gain or loss that had
been recognised in other comprehensive income
is allocated between the part that continues
to be recognised and the part that is no longer
recognised on the basis of the relative fair values
of those parts.
e) Impairment of financial assets
The Company recognises a loss allowance for
Expected Credit Losses (ECL) on financial assets
that are measured at amortised cost and at
FVTOCI. The credit loss is difference between all
contractual cash flows that are due to an entity
in accordance with the contract and all the cash
flows that the entity expects to receive (i.e. all cash
shortfalls), discounted at the original effective
interest rate. This is assessed on an individual or
collective basis after considering all reasonable
and supportable including that which is forward¬
looking.
The Company's trade receivables or contract
revenue receivables do not contain significant
financing component and loss allowance on trade
receivables is measured at an amount equal to life
time expected losses i.e. expected cash shortfall,
being simplified approach for recognition of
impairment loss allowance.
Under simplified approach, the Company does not
track changes in credit risk. Rather it recognises
impairment loss allowance based on the lifetime
ECL at each reporting date right from its initial
recognition. The Company uses a provision matrix
to determine impairment loss allowance on the
portfolio of trade receivables.
The provision matrix is based on its historically
observed default rates over the expected life of
the trade receivable and is adjusted for forward¬
looking estimates. At every reporting date, the
historical observed default rates are updated
and changes in the forward-looking estimates
are analysed.
For financial assets other than trade receivables,
the Company recognises 12-months expected
credit losses for all originated or acquired financial
assets if at the reporting date the credit risk of
the financial asset has not increased significantly
since its initial recognition. The expected credit
losses are measured as lifetime expected credit
losses if the credit risk on financial asset increases
significantly since its initial recognition. If, in a
subsequent period, credit quality of the instrument
improves such that there is no longer significant
increase in credit risks since initial recognition,
then the Company reverts to recognizing
impairment loss allowance based on 12 months
ECL. For equity instruments and financial assets
measured at FVTPL, there is no requirement for
impairment testing.
f) Effective interest method
The effective interest method is a method of
calculating the amortised cost of a debt instrument
and of allocating interest income over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
(including all fees and points paid or received
that form an integral part of the effective interest
rate, transaction costs and other premiums or
discounts) through the expected life of the debt
instrument, or, where appropriate, a shorter period,
to the net carrying amount on initial recognition.
Income is recognised on an effective interest basis
for debt instruments other than those financial
assets classified as at FVTPL. Interest income is
recognized in profit or loss and is included in the
'Other income' line item.
B. Financial liabilities and equity instruments:
a. Classification as debt or equity
Debt and equity instruments issued by a 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.
b. Equity instruments
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 are recognised at the
proceeds received, net of direct issue costs.
Repurchase of the Company's own equity
instruments is recognised and deducted
directly in equity. No gain or loss is recognised
in Statement of Profit and Loss on the purchase,
sale, issue or cancellation of the Company's own
equity instruments.
c. Initial recognition and measurement of financial
liabilities :
All financial liabilities are recognised initially at
fair value and in case of loans net of directly
attributable cost. Fees of recurring nature are
directly recognised in profit or loss as finance cost.
d. Subsequent measurement of financial
liabilities:
Financial liabilities are carried at amortised cost
using the effective interest method. 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.
e. Derecognition of financial liabilities :
Financial liabilities are derecognised when,
and only when, the Company's obligations
are discharged, cancelled or have expired. An
exchange with a lender of debt instruments with
substantially different terms is accounted for
as an extinguishment of the original financial
liability and the recognition of a new financial
liability. Similarly, a substantial modification of the
terms of an existing financial liability (whether or
not attributable to the financial difficulty of the
debtor) is accounted for as an extinguishment of
the original financial liability and the recognition
of a new financial liability. The difference between
the carrying amount of the financial liability
derecognised and the consideration paid and
payable is recognised in Statement of Profit
and Loss.
C. Offsetting of financial instruments:
Financial assets and financial liabilities are offset
and the net amount is reported in the Balance
Sheet if there is a currently enforceable legal right
to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.
D. Fair value measurement
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:
i. In the principal market for the asset or
liability, or
ii. In the absence of a principal market, in the
most advantageous market for the asset
or liability.
The principal of the most advantageous
market must be accessible by the Company.
The fair value of an asset or a liability is measured
using the assumptions that market participants
would use when pricing the asset or liability,
assuming that market participants act in their
economic best interest.
A fair value measurement of a non-financial asset
takes into account a market participant's ability to
generate economic benefits by using the asset in
its highest and best use or by selling it to another
market participant that would use the asset in its
highest and best use.
The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is
measured or disclosed in the financial statements
are categorized within the fair value hierarchy,
described as follows, based on the lowest
level input that is significant to the fair value
measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in
active markets for identical assets or liabilities;
Level 2- Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is directly or indirectly observable.
Level 3 -Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is unobservable.
For assets and liabilities that are recognized in
the financial statements on a recurring basis,
the Company determines whether transfers have
occurred between levels in the hierarchy by re¬
assessing categorization (based on the lowest
level input that is significant to the fair value
measurement as a whole) at the end of each
reporting period. The Management determines
the policies and procedures for both recurring
fair value measurement, such as derivative
instruments and unquoted financial assets
measured at fair value, and for non-recurring
measurement, such as assets held for distribution
in discontinued operations. At each reporting date,
the Management analyses the movements in the
values of assets and liabilities which are required to
be measured or re-assessed as per the accounting
policies of the Company. For this analysis, the
Management verifies the major inputs applied in
the latest valuation by agreeing the information
in the valuation computation to contracts and
other relevant documents. The management also
compares the change in the fair value of each
asset and liability with relevant external sources to
determine whether the change is reasonable. For
the purpose of fair value disclosures, the Company
has determined classes of assets and liabilities on
the basis of the nature, characteristics and risks of
the asset or liability and the level of the fair value
hierarchy as explained above.
E. Reclassification of financial assets
The Company determines classification of financial
assets and liabilities on initial recognition. After
initial recognition, no reclassification is made for
financial assets which are equity instruments and
financial liabilities. For financial assets which are
debt instruments, a reclassification is made only if
there is a change in the business model for managing
those assets. Changes to the business model are
expected to be infrequent. The Company's senior
management determines change in the business
model as a result of external or internal changes
which are significant to the Company's operations.
Such changes are evident to external parties.
A change in the business model occurs when
the Company either begins or ceases to perform
an activity that is significant to its operations.
If the Company reclassifies financial assets, it
applies the reclassification prospectively from the
reclassification date which is the first day of the
immediately next reporting period following the
change in business model. The Company does not
restate any previously recognised gains, losses
(including impairment gains or losses) or interest.
For assets and liabilities that are recognised in
the financial statements on a recurring basis, the
Company determines whether transfers have
occurred between levels in the hierarchy by re¬
assessing categorisation (based on the lowest level
input that is significant to the fair value measurement
as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the
Company has determined classes of assets and
liabilities on the basis of the nature, characteristics
and risks of the asset or liability and the level of the
fair value hierarchy as explained above.
(VII) Property, plant and equipment
The cost of property, plant and equipment comprises its
purchase price net of any trade discounts and rebates,
import duties and other taxes (other than those
subsequently recoverable from the tax authorities),
directly attributable expenditure on making the asset
ready for its intended use, including relevant borrowing
costs for qualifying assets and any expected costs
of decommissioning.
Property, plant and equipment are stated at cost
less accumulated depreciation and accumulated
impairment losses, if any. An item of property, plant and
equipment is derecognised upon disposal or when no
future economic benefits are expected to arise from the
continued use of the asset. Any gain or loss arising on
the disposal or retirement of an item of property, plant
and equipment is determined as the difference between
the sale proceeds and the carrying amount of the asset
and is recognised in Statement of Profit and Loss.
The Company has elected to continue with the carrying
value for all of its property, plant and equipment
recognized in the financial statements as on transition
date, measured as per the previous GAAP and use that
carrying value as its deemed cost as of transition date.
The Company has policy to expense out assets which is
acquired during the year and value of that asset is up to
Rupees one lakhs.
Depreciation and amortisation
Depreciation commences when the assets are ready
for their intended use. Depreciable amount for assets
is the cost of an asset, or other amount substituted for
cost, less its estimated residual value. Depreciation is
recognised so as to write off the cost of assets less
their residual values over their useful lives, using written
down value method as per the useful lives and residual
value prescribed in Schedule II to the Act as under.
The estimated useful lives, residual value and
depreciation/amortisation method are reviewed
annually and, if expectations differ from previous
estimates, the change is accounted for as a change in
accounting estimate on a prospective basis.
(VIII) Impairment of Property, plant and equipment
At the end of each reporting period, the Company reviews
the carrying amounts of its tangible and intangible
assets to determine whether there is any indication
that those assets have suffered an impairment loss. If
any such indication exists, the recoverable amount of
the asset is estimated in order to determine the extent
of the impairment loss (if any). Where it is not possible
to estimate the recoverable amount of an individual
asset, the Company estimates the recoverable amount
of the cash-generating unit to which the asset belongs.
Where a reasonable and consistent basis of allocation
can be identified, corporate assets are also allocated
to individual cash-generating units, or otherwise they
are allocated to the smallest group of cash-generating
units for which a reasonable and consistent allocation
basis can be identified.
Recoverable amount is the higher of fair value less
costs to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects
current market assessments of the time value of
money and the risks specific to the asset for which the
estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash¬
generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (or cash¬
generating unit) is reduced to its recoverable amount.
An impairment loss is recognised immediately in the
Statement of Profit and Loss.
Any reversal of the previously recognised impairment
loss is limited to the extent that the asset's carrying
amount does not exceed the carrying amount that
would have been determined if no impairment loss had
previously been recognised
(IX) Revenue Recognition
Revenue is recognised to the extent that it is probable
that the economic benefits will flow to the Company
and the revenue can be reliably measured and there
exists reasonable certainty of its recovery.
Dividend Income :
Dividend income from investments is recognised
when the Company's right to receive dividend has
been established.
Interest Income :
Interest income from a financial asset is recognized
when it is probable that the economic benefits will
flow to the Company and the amount of income can be
measured reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding and at
the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that
asset's net carrying amount on initial recognition.
Pledge fees :
Pledge fees income from a financial asset is recognized
when it is probable that the economic benefits will
flow to the Company and the amount of income can be
measured reliably. Pledge fees income is accrued on a
time basis by reference to number of shares pledged
and the market value of respective shares.
(X) Taxation
Income tax expense represents the sum of the tax
currently payable and deferred tax. Income tax expense
is recognised in the Statement of Profit and Loss except
to the extent it relates to items directly recognised in
equity or in other comprehensive income.
Current tax :
Current tax is the amount of tax payable based on the
taxable profit for the year as determined in accordance
with the applicable tax rates and the provisions of the
Income Tax Act, 1961. Current tax assets and liabilities
are measured at the amount expected to be recovered
from or paid to the taxation authorities, based on tax
rates and laws that are enacted or substantively
enacted at the Balance Sheet date.
Deferred tax :
Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the standalone financial statements and the
corresponding tax bases used in the computation
of taxable profit. Deferred tax liabilities are generally
recognised for all taxable temporary differences.
Deferred tax assets are generally recognized for all
deductible temporary differences to the extent it is
probable that the taxable profits will be available against
which those deductible temporary differences can be
utilized. Such deferred tax assets and liabilities are
not recognized if temporary difference arises from the
initial recognition (other than in a business combination)
of assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed
at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the
asset to be recovered.
Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the period in
which the liability is settled or the asset realised, based
on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.
Deferred tax assets and deferred tax liabilities are
offset, if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the
deferred taxes relate to the same taxable entity and the
same taxation authority.
(XI) Earnings per share:
Basic earnings per share is computed by dividing the
profit/(loss) for the year by the weighted average
number of equity shares outstanding during the
year. The weighted average number of equity shares
outstanding during the year is adjusted for treasury
shares, bonus issue, bonus element in a rights issue
to existing shareholders, share split and reverse share
split (consolidation of shares).
Diluted earnings per share is computed by dividing
the profit/(loss) for the year as adjusted for dividend,
interest and other charges to expense or income (net of
any attributable taxes) relating to the dilutive potential
equity shares, by the weighted average number of
equity shares considered for deriving basic earnings
per share and the weighted average number of equity
shares which could have been issued on the conversion
of all dilutive potential equity shares. Potential equity
shares are deemed to be dilutive only if their conversion
to equity shares would decrease the net profit per
share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as
at the beginning of the period, unless they have been
issued at a later date.
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