i) Company Overview:
Silver Touch Technologies Limited ("the company") is a leading and globally accepted IT Solution Provider and currently at the
forefront of Digital Transformation & Emerging Technologies to serve the customers across the world.
The solutions company provide cover top to bottom technical needs including IT Consulting, System Integration Services, Software
Development, E-Governance Solutions, Mobility Solutions, website development & maintenance etc. and making everything possible
for customer with cybernetics.
The Company is a public limited company incorporated and domiciled in India and has its registered office at 2nd Floor, Saffron Tower,
Ambawadi, Ahmedabad 380006, Gujarat, India. The company has its listing on NSE and BSE platform.
ii) Basis Of Preparation
(a) Compliance with Ind-AS
The financial statements of the Company have been prepared in accordance with Indian Accounting Standards ("Ind AS")
notified under the Companies (Indian Accounting Standards)Rules, 2015, as amended from time to time and presentation
requirements of Division II of Schedule III to the Companies Act, 2013, (IndAS compliant Schedule III), as applicable to the
Company's financial statements..
These financial statements for the period ended 31st March,2025 along with its comparatives prepared under Ind-AS. The
Accounting policies are applied consistently to all the periods presented in fiancial statements,
(b) Historical Cost Convention
The financial statements have been prepared under the historical cost convention on accrual basis of accounting except for the
following:
(a) Defined Benefit Plans are measured at Fair Value.
(b) Certain Assets and liabilities that are measured at fair value or amortized cost.
(c) Rounding off Amounts
All amounts disclosed in fianancial statement and notes have been rounded off to the nearest lakhs except when otherwise
indicated. The Company's presentation and functional currency is Indian Rupees
iii) Use of Estimates :
The preparation of financial statements in conformity with Indian Accounting Standards ("Ind AS") notified under the Companies
(Indian Accounting Standards)Rules, 2015, requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the results of operations during the reporting period end. Although these estimates are based
upon management's best knowledge of current events and actions, actual results could differ from these estimates. Difference
between actual and estimates are recognized in the period in which the resulats are known/materialised.
In the assessment of the Company, the most significant effects of use of judgments and/or estimates on the amounts recognized in
the financial statements are in respect of the following:
• Useful lives of property, plant & equipment;
• Valuation of inventories;
• Assets and obligations relating to employee benefits;
• Evaluation of recoverability of deferred tax assets; and
• Provisions and Contingencies
• Recognition of revenue and allocation of transaction price
• Current tax expense and current tax payable
iv) Current and non-current classification:
The Company presents assets and liabilities in the balance sheet based on current / non-current classification. An asset is classified as
current when it satisfies any of the following criteria: it is expected to be realized in, or is intended for sale or consumption in, the
Company's normal operating cycle.
• It is expected to be realized within 12 months after the reporting date; or
• It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the
reporting date.
• All other assets are classified as non-current.
A liability is classified as current when it satisfies any of the following criteria:
• It is expected to be settled in the Company's normal operating cycle;
• It is held primarily for the purpose of being traded
• It is due to be settled within 12 months after the reporting date; or the Company does not have an unconditional right to defer settlement
of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result
in its settlement by the issue of equity instruments do not affect its classification.
• All other liabilities are classified as non-current.
• Deferred tax assets and liabilities are classified as non-current only
v) Fair value measurement:
The Company measures financial instruments such as derivatives and certain investments, at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset
or transfer the liability takes place either:
• In the principal market for the asset or liability or,
• In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or 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 best economic 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 forwhich sufficient data are available to
measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised 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 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.
This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.
vi) Property, plant and equipment & Depreciation :
Property, plant and equipment are stated at cost, net of recoverable taxes, less accumulated depreciation and impairement losses if
any. Such cost included purchase price, borrowing cost and other cost directly attributable to the acquisition of the items. All other
repairs and maintenence are chareged to the Statement Profit and Loss during the reporting period in which they are incurred.
Capital work-in-progress includes cost of property, plant and equipment under installation/ under development as at the balance sheet
date and are carried at cost, comprising of direct cost and directly attributable cost incurred.Depreciation is not charged untill such
assets are ready for commercial use.
Depreciation is provided on fixed assets used during the year as per Straight Line Method on the basis of useful life of assets and
residual value as specified in schedule II of the Companies Act, 2013 except on few assets, where different life has been estimated by
the management where assets are for specific project.Depreciation on additions or sale/discard of asset is being provided on pro-rata
basis from the date on which such asset is ready to be put to use to date of sale/discard.
The Company provides depreciation on property, plant and equipment using the Straight Line Method. The rates of depreciation are
arrived at, based on useful lives estimated by the management as follows:
Block of assets Estimated useful life (in years)
Office Buildings 15-60
Office equipment 3-10
Furniture and fixtures 3-15
Computer and Peripherials 3-10
Vehicles 5-20
The residual value are not more than 5% of original cost of asset. The Asset residual values and useful life are reviewed and adjusted
if appropiate, at the end of each reporting period.
Gains and losses on disposal are determined by comparing proceeds with carrying amount. These are included in Statement of Profit
and Loss.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end
and adjusted prospectively, if appropriate.
vii) Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost.
Following initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses, if
any.
The useful lives of intangible assets are assessed as either finite or indefinite. There are no intangible assets assessed with indefinite
useful life.
Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an
indication that the intangible asset may be impaired.
The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of
each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits
embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in
accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss
unless such expenditure forms part of carrying value of another asset. Gain or losses arising from the derecognition of an intangible
asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in
the statement of profit and loss when the asset is derecognised.
Intangible assets are amortised on straightline basis as follows:
Block of assets Estimated useful life (in years)
Computer softwares 3-6
viii) Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity.
(i) Financial assets
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or
loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require
delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised
on the trade date, i.e., the date that the Group commits to purchase or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
- Debt instruments at amortised cost
A 'debt instrument' is measured at the amortised cost if both the following conditions are met:
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.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR)
method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from impairment are
recognised in the profit or loss. This category generally applies to trade and other receivables.
- Debt instrument at fair value through other comprehensive income (FVTOCI)
A 'debt instrument' is classified as at the FVTOCI if both of the following criteria are met:
(a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and
(b) The asset's contractual cash flows represent SPPI.
Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value
movements are recognised in the other comprehensive income (OCI). However, the Group recognises interest income, impairment
losses & reversals and foreign exchange gain or loss in the P&L. On derecognition of the asset, cumulative gain or loss previously
recognised in OCI is reclassified from the equity to P&L. Interest earned whilst holding FVTOCI debt instrument is reported as interest
income using the EIR method.
-Debt instrument at fair value through profit and loss (FVTPL)
FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorisation as at
amortised cost or as FVTOCI, is classified as at FVTPL. In addition, the Group may elect to designate a debt instrument, which
otherwise meets amortised cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or
eliminates a measurement or recognition inconsistency (referred to as 'accounting mismatch'). The Group has not designated any debt
instrument as at FVTPL. Debt instruments included within the FVTPL category are measured at fair value with all changes recognised
inthe P&L.
- Equity investments
All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading and contingent
consideration recognised by an acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL. For all other
equity instruments, the Group may make an irrevocable election to present in other comprehensive income subsequent changes in the
fair value, the Group makes such election on an instrument by- instrument basis. The classification is made on initial recognition and is
irrevocable.
If the Group decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends,
are recognised in the OCI. There is no recycling of the amounts from OCI to statement of profit and loss, even on sale of investment.
However, the Group may transfer the cumulative gain or loss within equity. Equity instruments included within the FVTPL category are
measured at fair value with all changes recognised in the statement of profit and loss.
Derecognition
A financial asset (or, where applicable, apart of a financial asset or part of a Group of similar financial assets) is primarily derecognised
(i.e. removed from the Group's balance sheet) when:
- The rights to receive cash flows from the asset have expired, or
- the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash
flows.
(ii) Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings,
payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are
recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
The Group's financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee
contracts.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
-Financial Liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon
initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the
purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Group that
are not designated as hedging instruments in hedge relationships as defined by Ind AS 109. Separated embedded derivatives are also
classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading
are recognised in the statement of profit and loss. Financial liabilities designated upon initial recognition at fair value through profit or
loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities
designated as FVTPL, fair value gains / losses attributable to changes in own credit risk are recognised in OCI. These gains / loss are
not subsequently transferred to statement of profit and loss. However, the Group may transfer the cumulative gain or loss within
equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The Group has not designated
any financial liability as at fair value through profit and loss.
- Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method.
Gains and losses are recognised in statement of profit or loss when the liabilities are derecognised as well as through the EIR
amortisation process. Amortised cost is calculated by considering any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.
- Financial guarantee contracts
Financial guarantee contracts issued by the Group are those contracts that require a payment to be made to reimburse the holder for
a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument.
Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly
attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance
determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a
new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.
(iv) Reclassification of financial assets
The Group 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 Group's senior management determines change in the business model as a result of external or
internal changes which are significant to the Group's operations. Such changes are evident to external parties. A change in the
business model occurs when the Group either begins or ceases to perform an activity that is significant to its operations. If the Group
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 Group does not restate any previously recognised
gains, losses (including impairment gains or losses) or interest.
(v) 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.
ix) Compound financial instruments
Compound Financial instruments are separated into liability and equity components based on the terms of the contract. On issuance of
the compound financial instruments, the fair value of the liability component is determined using a market rate for an equivalent non¬
convertible instrument. This amount is classified as an financial liability measured at amortised cost (net of transaction costs) until it is
extinguished on conversion or redemption.The remainder of the proceeds is allocated to the conversion option that is recognised and
included in equity since conversion option meets Ind AS 32 criteria for fixed to fixed classification. Transaction costs are dedcuted from
equity, net of associated income tax. The carrying amount of the conversion option is not remeasured in subsequent years.
Transaction Costs are apportioned between the liability and equity components of the compound financial instruments based on the
allocation of proceeds to the liability and equity components when the instruments are initially recognised.
x) Segment Reporting
The company's Business Segment is 'Computers & IT Services' and it has no other primary reportable segments. Geographical
revenues are segregated based on the location of the customer who is invoiced or in relation to which the revenue is otherwise
recognized. Customer relationships are driven based on the location of the respective clients. Company's business activities outside
India are spread mainly in United Kingdom, USA, Canada & France . Hence, there are two reportable segment of company viz.,
Domestic & Exports.
xi) Investment in subsidiaries, associates, and joint venture
The Company has accounted for its investment in subsidiaries or associates or joint venture at cost less impairment. The Company
assesses investments in subsidiaries, associates and joint venture for impairment whenever events or changes in circumstances
indicate that the carrying amount of the investment may not be recoverable. If any such indication exists, the Company estimates the
recoverable amount of the investment in subsidiary, associate or joint venture. The recoverable amount of such investment is the
higher of its fair value less cost of disposal (FVLCD) and its value-in-use (VIU). The VIU of the investment is calculated using projected
future cash flows. If the recoverable amount of the investment is less than its carrying amount, the carrying amount is reduced to its
recoverable amount. The reduction is treated as an impairment loss and is recognised in the statement of profit and loss.
Investment in a subsidiary or an associate or a joint venture acquired in stages are accounted after re-measuring the equity interest
held up to the date on which control or significant influence was first achieved, at its fair value on date of obtaining control or
significant influence.
xii) Inventories :
Inventories are valued at the lower of cost and net realisable value. Costs incurred in bringing the inventory to its present location and
condition are included in the cost of inventories.
Hardware and Supplies
Carried at lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and the estimated costs necessary to make the sale. Cost is determined on first in, first out basis.
xi) Cash and Cash Equivalents:
The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are
subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to
be cash equivalents.
Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.
xii) Cashflows
Cash Flows are reported using the indirect method,whereby profit before tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated
with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are
segregated. The Company considers all highly liquid investments that are readily convertible to known amounts of cash to be cash
equivalents.
xiii) Borrowing costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset
are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying
assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is
deducted from the borrowing costs eligible for capitalisation. Other borrowing costs are expensed in the period in which they are
incurred and are recognised in the statement of profit and loss.
xiv) Employee benefits
(a) Short-term obligations
Liabilities for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within 12 months after the
end of the period in which the employees render the related service are recognised in respect of employees' services up to the end of
the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. These liabilities are
presented as current liabilities in the balance sheet
(b) Other long-term employee benefit obligations
The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the period in
which the employees render the related service. They are therefore measured as the present value of expected future payments to be
made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The
benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the
related obligation.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer
settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
(c) Post-employment obligations
The Company operates the following postemployment schemes:
(a) defined benefit plans such as gratuity; and
(b) defined contribution plans such as provident fund, employees state insurance taxes.
Gratuity obligations
The liability or asset recognised in the balance sheet in respect of defined benefit pension and gratuity plans is the present value of the
defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is
calculated annually by actuaries using the projected unit credit method.
The present value of the defined benefit obligation denominated in is determined by discounting the estimated future cash outflows by
reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the
related obligation. The benefits which are denominated in currency other than, the cash flows are discounted using market yields
determined by reference to high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and
that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value
of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the
period in which they occur, directly in OCI. They are included in retained earnings in the statement of changes in equity and in the
balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised
immediately in statement of profit and loss as past service cost.
Defined contribution plans
The Company pays provident fund and employees state insurance contributions to publicly administered provident funds as per local
regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted
for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid
contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
xv) Investments :
Investments are classified as Current Investments and non-current Investments. The investments that are readily realizable and
intended to be held for not more than a year are classified as current investments. Current Investments are stated at lower of cost
and net realizable value. A provision for diminution is made to recognize a decline, other than temporary, in the value of Non-current
Investments.
xvi) Revenue Recognition :
Sale of Services:
The Company uses the percentage-of-completion method in accounting for its fixed-price contracts. The use of the percentage-of-
completion method requires the Company to estimate the efforts or costs expended to date as a proportion of the total efforts or costs
to be expended. Efforts or costsexpended have been used to measure progress towards completion as there is a direct relationship
between inputand productivity. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which
such losses become probable based on the expected contract estimates at the reporting date.
Sale of Goods:
Revenue is measured at the fair value of the consideration received or receivable. The Company recognises revenues on sale of
products, net of discounts, sales incentives, rebates granted, returns, sales taxes/GST and duties when the products are delivered to
customer or when delivered to a carrier for export sale, which is when title and risk and rewards of ownership pass to the customer.
Export incentives are recognised as income as per the terms of the scheme in respect of the exports made and included as part of
export turnover.
Dividend and interest income:
Dividend income from investments is recognised when the shareholder's right to receive payment has been established (provided that
it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably). Interest
income from a financial asset is recognised 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.
Lease Income Recognition
Short-term Leases (Leases with a Term of 12 Months or Less):
The Company classifies leases with a term of 12 months or less as short-term leases.
As per Ind AS 116, the Company has opted to not apply the full recognition requirements for short-term leases. Instead, lease income
from such leases is recognized on a straight-line basis over the lease term, unless another method more appropriately reflects the
pattern in which the benefit from the leased asset is derived.
Revenue Recognition:
Lease income is recognized as revenue over the lease term in a manner that reflects the time pattern in which the use of the leased
asset is provided to the lessee.
Straight-line basis will be the preferred method of recognition unless another basis is more appropriate (e.g., for variable lease
payments based on usage or other criteria).
If the lease payments vary (such as with escalations or based on performance), income is recognized in accordance with the terms of
the lease and the pattern of use of the leased asset.
Variable Lease Payments:
For variable lease payments, lease income is recognized as and when the payments become due or as the related variable factor is
Initial Direct Costs:
Initial direct costs incurred in negotiating and arranging short-term leases are expensed immediately as incurred, in line with the
recognition of lease income.
Practical Expedients:
The Company applies the practical expedient available under Ind AS 116 for leases with a term of 12 months or less by not
recognizing lease liabilities or right-of-use assets for these leases.
xvii) Impairment of Assets :
(i) Financial assets (other than at fair value)
The Company assesses at each date of Balancesheet whether a financial asset or a group of financial assets is impaired. Ind AS 109
requires expected credit losses to be measured through a loss allowance. The Company recognises lifetime expected losses for all
contract assets and/or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit
losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit
losses if the credit risk or the financial asset has increased significantly since initial recognition.
(ii) Non-financial assets
Tangible and intangible assets
Property, plant and equipment and intangible assets within finite life are evaluated for recoverability whenever there is any indication
that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value
less cost to sell and the value-in-use) 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 the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or
CGU) is reduced to its recoverable amount. An impairment loss is recognised in the statement of profit and loss.
xviii) Earning per Share :
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
- the profit attributable to owners of the Company
- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity
shares issued during the year and excluding treasury shares
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
- the after income tax effect of interest and other financing costs associated with dilutive potential equity
- the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive
potential equity shares
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