2 (A). Material Accounting policies
(1) Basis of Preparation
These standalone financial statements of the
Company have been prepared in accordance with
Indian Accounting Standards (Ind AS) notified
under Section 133 of the Companies Act, 2013 (the
‘Act') Companies (Indian Accounting Standards)
Rules, 2015, (as amended from time to time) along
with other relevant provisions of the Act and the
Master Direction- Non-Banking Financial Company
- Systematically Important Non-Deposit taking
Company and Deposit taking Company (Reserve
Bank) Directions, 2016 (the ‘NBFC Master
Directions') issued by RBI and the regulatory
guidance on implementation of Ind AS notified by
the RBI vide notification dated 13th March 2020.
The Guidance Note on Division III of Schedule
III to the Act, issued by the Institute of Chartered
Accountants of India (“ICAI”) has been followed
insofar as they are not inconsistent with any of
these Directions.
The Balance sheet, the Statement of profit and
loss and the Statement of changes in equity are
prepared and presented in the format prescribed in
the Division III of Schedule III to the Act applicable
for Non-Banking Finance Companies (‘NBFC').
The Statement of Cash Flows has been prepared
and presented as per the requirements of Ind AS 7,
Statement of Cash Flows.
The financial statements have been prepared on
a historical cost basis, except for certain financial
assets and financial liabilities that are measured at
fair value at the end of each reporting period.
The Company presents its balance sheet in order of
liquidity. An analysis regarding recovery or settlement
within 12 months after the reporting date (current)
and more than 12 months after the reporting date
(noncurrent) is presented in note 29.
All amounts disclosed in the standalone financial
statements and notes are presented in Rs. lakhs
and have been rounded off to two decimals as per
the requirement of Division III of Schedule III to the
Act, unless otherwise stated.
(2) Use of accounting judgements, estimates and
assumptions
The preparation of the standalone financial
statements requires management to make
judgements, estimates and assumptions that
affect the reported amount of revenues, expenses,
assets and liabilities, and the accompanying
disclosures, as well as the disclosure of contingent
liabilities. Uncertainty about these assumptions
and estimates could result in outcomes that require
a material adjustment to the carrying amount of
assets or liabilities affected in future periods. The
Company continually evaluates these estimates
and assumptions based on the most recently
available information. The management believes
that the estimates used in preparation of the
financial statements are prudent and reasonable.
Business model assessment
Classification and measurement of financial assets
depends on the results of the solely payments of
principal and interest (SPPI) and the business
model test. The Company determines the business
model at a level that reflects how groups of
financial assets are managed together to achieve
a business objective. This assessment includes
judgement reflecting all relevant evidence including
how the performance of the assets is evaluated
and their performance measured, the risks that
affect the performance of the assets and how
these are managed and how the managers of the
assets are compensated. The Company monitors
financial assets measured at amortised cost or
fair value through other comprehensive income
(FVTOCI) that are derecognised prior to their
maturity to understand the reason for their disposal
and whether the reasons are consistent with
the objective of the business for which the asset
was held. Monitoring is part of the Company's
continuous assessment of whether the business
model for which the remaining financial assets
are held continues to be appropriate and if it is not
appropriate whether there has been a change in
business model and so a prospective change to the
classification of those assets.
Fair value of financial instruments
The fair value of financial instruments is the price
that would be received to sell an asset or paid to
transfer a liability in an orderly transaction in the
principal (or most advantageous) market at the
measurement date under current market conditions
(i.e., an exit price) regardless of whether that price
is directly observable or estimated using another
valuation technique. When the fair values of
financial assets and financial liabilities recorded in
the Balance Sheet cannot be derived from active
markets, they are determined using a variety
of valuation techniques that include the use of
valuation models. The inputs to these models are
taken from observable markets where possible, but
where this is not feasible, estimation is required in
establishing fair values. Judgements and estimates
include considerations of liquidity and model inputs
related to items such as credit risk (both own
and counterparty), funding value adjustments,
correlation and volatility.
Provisions and other contingent liabilities
The Company operates in a regulatory and legal
environment that, by nature, has a heightened
element of litigation risk inherent to its operations.
As a result, it is involved in various litigation,
arbitration and regulatory investigations and
proceedings in the ordinary course of the
Company's business. When the Company can
reliably measure the outflow of economic benefits
in relation to a specific case and considers such
outflows to be probable, the Company records a
provision against the case. Where the probability
of outflow is remote or probable, but a reliable
estimate cannot be made, a contingent liability is
disclosed. Given the subjectivity and uncertainty of
determining the probability and amount of losses,
the Company takes into account a number of factors
including legal advice, the stage of the matter
and historical evidence from similar incidents.
Significant judgement is required to conclude on
these estimates.
Commitments
Commitments are future liabilities for contractual
expenditure, classified and disclosed as follows:
a) Estimated amounts of contracts remaining
to be executed on capital account and not
provided for;
b) Uncalled liability on shares and other
investments partly paid;
c) Funding related commitment to other
companies, if any; and
d) Other non-cancellable commitments, if any, to
the extent they are considered material and
relevant in the opinion of management.
2 (B). Other Accounting Policies
(1) Revenue recognition
Revenue is recognized to the extent that it is
probable that the economic benefit will flow to
the company and the revenue can be reliably
measured and there exists reasonable certainty
of its recovery. Revenue is measured at the fair
value of the consideration received or receivable as
reduced for estimated customer credits and other
similar allowances.
Interest income {Effective interest rate method
(EIR)}
Under Ind AS 109, Financial Instruments, interest
income is recorded using the EIR method for all
financial instruments measured at amortised cost,
debt instrument measured at Fair Value Through
Other Comprehensive Income (FVTOCI) and debt
instruments designated at Fair Value Through
Profit or Loss (FVTPL). The EIR is the rate that
exactly discounts estimated future cash receipts
through the expected life of the financial instrument
or, when appropriate, a shorter period, to the net
carrying amount of the financial asset. The EIR
(and therefore, the amortised cost of the asset) is
calculated by taking into account any discount or
premium on acquisition, fees and costs that are an
integral part of the EIR. The Company recognises
interest income using a rate of return that represents
the best estimate of a constant rate of return over the
expected life of the loan. Hence, it recognises the
effect of potentially different interest rates charged
at various stages, and other characteristics of the
product life cycle (including prepayments, penalty
interest and charges). If expectations regarding the
cash flows on the financial asset are revised for
reasons other than credit risk. The adjustment is
booked as a positive or negative adjustment to the
carrying amount of the asset in the Balance sheet
with an increase or reduction in interest income.
The adjustment is subsequently amortised through
interest income in the Statement of profit and loss.
The Company calculates interest income by
applying the EIR to the gross carrying amount of
financial assets other than credit-impaired assets
net of upfront processing fees. When a financial
asset becomes credit-impaired and is, therefore,
regarded as ‘Stage 3', the Company calculates
interest income by applying the effective interest
rate to the net amortised cost of the financial
asset. If the financial assets cures and is no longer
credit-impaired, the Company reverts to calculating
interest income on a gross basis. For purchased
or originated credit-impaired (POCI) financial
assets, the Company calculates interest income
by calculating the credit-adjusted EIR and applying
that rate to the amortised cost of the asset. The
credit adjusted EIR is the interest rate that, at
original recognition, discounts the estimated future
cash flows (including credit losses) to the amortised
cost of the POCI assets. Interest income on all
trading assets and financial assets mandatorily
required to be measured at FVTPL is recognised
using the contractual interest rate in net gain on fair
value changes.
Dividend income
Dividend income (including from FVTOCI
investments) is recognised when the Company's
right to receive the payment is established, it is
probable that the economic benefits associated
with the dividend will flow to the entity and the
amount of the dividend can be measured reliably.
This is generally when the shareholders approve
the dividend.
Dividend Income on Financial Assets at FVTPL
is shown separately under Income and it is not
forming part of Fair value Changes.
Net gain on fair value changes
Any differences between the fair values of the
financial assets classified as fair value through the
profit or loss, held by the Company on the Balance
Sheet date is recognised as an unrealised gain/loss
in the statement of profit and loss. In cases there
is a net gain in aggregate, the same is recognised
in ‘Net gains or fair value changes' under revenue
from operations and if there is a net loss the same
is disclosed ‘Expenses', in the Statement of profit
and loss.
(2) Financial instruments
Point of recognition
Financial assets and liabilities, with the exception
of loans, debt securities, deposits and borrowings
are initially recognised on the trade date, i.e.,
the date that the Company becomes a party to
the contractual provisions of the instrument. This
includes regular way trades: purchases or sales
of financial assets that require delivery of assets
within the time frame generally established by
regulation or convention in the marketplace. Loans
are recognised when funds are transferred to the
customers' account. The Company recognises
debt securities, deposits and borrowings when
funds reach the Company.
Initial recognition
The classification of financial instruments at initial
recognition depends on their contractual terms and
the business model for managing the instruments,
as per the principles of the Ind AS 109, Financial
instruments are initially measured at their fair value,
except in the case of financial assets and financial
liabilities recorded at FVTPL, transaction costs are
added to, or subtracted from, this amount. Trade
receivables are measured at the transaction price.
When the fair value of financial instruments at initial
recognition differs from the transaction price, the
Company accounts mentioned below:
When the transaction price of the instrument differs
from the fair value at origination and the fair value
is based on a valuation technique using only inputs
observable in market transactions, the Company
recognises the difference between the transaction
price and fair value in net gain on fair value changes.
In those cases where fair value is based on models
for which some of the inputs are not observable,
the difference between the transaction price and
the fair value is deferred and is only recognised in
profit or loss when the inputs become observable,
or when the instrument is derecognised.
Subsequent measurement of financial assets
For subsequent measurement, the Company
classifies a financial asset in accordance with the
below criteria:
i. The Company's business model for managing the
financial asset; and
ii. The contractual cash flow characteristics of the
financial asset.
Based on the above criteria, the Company classifies
its financial assets into the following categories:
(a) Financial assets measured at amortized cost:
A Financial asset is measured at the amortized cost
if both the following conditions are met:
(i) The Company's business model objective
for managing the financial asset is to hold
financial assets in order to collect contractual
cash flows; and
(ii) 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.
This category applies to cash and bank balances,
trade receivables, loans and other financial
assets of the Company. Such financial assets are
subsequently measured at amortized cost using
the effective interest method. Under the effective
interest method, the future cash receipts are exactly
discounted to the initial recognition value using the
effective interest rate. The cumulative amortization
using the effective interest method of the difference
between the initial recognition amount and the
maturity amount is added to the initial recognition
value (net of principal repayments, if any) of the
financial asset over the relevant period of the
financial asset to arrive at the amortized cost at
each reporting date. The corresponding effect of
the amortization under effective interest method
is recognized as interest income over the relevant
period of the financial asset. The same is included
under other income in the Statement of profit and
loss. The amortized cost of a financial asset is also
adjusted for loss allowance, if any.
(b) Financial assets measured at FVTOCI:
A financial asset is measured at FVTOCI if both of
the following conditions are met:
(i) The Company's business model objective
for managing the financial asset is achieved
both by collecting contractual cash flows and
selling the financial assets; and
(ii) 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.
This category applies to certain investments
in debt and equity instruments. Such financial
assets are subsequently measured at fair
value at each reporting date. Fair value
changes are recognized in the Statement of
profit and loss under 'Other Comprehensive
Income (OCI)'. However, the Company
recognizes interest income and impairment
losses and its reversals in the Statement of
Profit and Loss. On de-recognition of such
financial assets, cumulative gain or loss
previously recognized in OCI is reclassified
from equity to the Statement of profit and loss,
except for instruments which the Company
has irrevocably elected to be classified as
equity through OCI at initial recognition, when
such instruments meet the definition of Equity
under Ind AS 32, Financial Instruments:
Presentation and they are not held for trading.
The Company has made such election on
instrument by instrument basis.
Gains and losses on these equity instruments
are never recycled to profit or loss. Dividends
are recognised in the Statement of Profit or
Loss as dividend income when the right of the
payment has been established, except when
the Company benefits from such proceeds as
a recovery of part of the cost of the instrument,
in which case, such gains are recorded in OCI.
Equity instruments at FVTOCI are not subject
to an impairment assessment.
(c) Financial assets measured at FVTPL
A financial asset is measured at FVTPL unless
it is measured at amortized cost or at FVTOCI
as explained above. This is a residual category
applied to all other investments of the Company
excluding investments in subsidiary and associate
companies. Such financial assets are subsequently
measured at fair value at each reporting date. Fair
value changes are recognized in the Statement of
Profit and Loss.
Financial assets or financial liabilities held for
trading
The Company classifies financial assets as held
for trading when they have been purchased
or issued primarily for short-term profit making
through trading activities or form part of a portfolio
of financial instruments that are managed together,
for which there is evidence of a recent pattern of
short-term profit taking. Held-For-Trading assets
and liabilities are recorded and measured in the
Balance sheet at fair value. Changes in fair value
are recognised in net gain on fair value changes.
Interest and dividend income or expense is recorded
in net gain on fair value changes according to the
terms of the contract, or when the right to payment
has been established. Included in this classification
are debt securities, equities, and customer loans
that have been acquired principally for the purpose
of selling or repurchasing in the near term.
De-recognition
(a) Financial asset
A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is derecognized (i.e. removed from the
Company's Balance sheet) when any of the
following occurs:
i. The contractual rights to receive cash flows
from the financial asset expires;
ii. The Company transfers its contractual rights
to receive cash flows of the financial asset and
has substantially transferred all the risks and
rewards of ownership of the financial asset.
A regular way purchase or sale of financial
assets has been derecognised, as applicable,
using trade date accounting.
iii. The Company retains the contractual rights to
receive cash flows but assumes a contractual
obligation to pay the cash flows without
material delay to one or more recipients
under a 'pass-through' arrangement (thereby
substantially transferring all the risks and
rewards of ownership of the financial asset).
iv. The Company neither transfers nor retains
substantially all risk and rewards of ownership
and does not retain control over the financial
asset.
In cases where Company has neither transferred
nor retained substantially all the risks and rewards
of the financial asset, but retains control of the
financial asset, the Company continues to recognize
such financial asset to the extent of its continuing
involvement in the financial asset. In that case, the
Company also recognizes an associated liability.
The financial asset and the associated liability are
measured on a basis that reflects the rights and
obligations that the Company has retained.
On de-recognition of a financial asset, (except
as mentioned in ii above for financial assets
measured at FVTOCI), the difference between the
carrying amount and the consideration received is
recognized in the Statement of profit and loss.
(b) Financial liability
A financial liability is derecognised when the
obligation under the liability is discharged,
cancelled or expires. Where 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 a de-recognition of the original liability and
the recognition of a new liability. The difference
between the carrying value of the original financial
liability and the consideration paid is recognised in
profit or loss.
Impairment of financial assets
In accordance with Ind AS 109, the Company
applies expected credit loss ('ECL') model for
measurement and recognition of impairment loss
for financial assets.
ECL is the weighted-average of difference between
all contractual cash flows that are due to the
Company in accordance with the contract and
all the cash flows that the Company expects to
receive, discounted at the original effective interest
rate, with the respective risks of default occurring
as the weights. When estimating the cash flows,
the Company is required to consider:
- All contractual terms of the financial assets
(including prepayment and extension) over
the expected life of the assets.
- Cash flows from the sale of collateral held or
other credit enhancements that are integral to
the contractual terms.
Trade receivables
In respect of trade receivables, the Company
applies the simplified approach of Ind AS 109,
which requires measurement of loss allowance
at an amount equal to lifetime expected credit
losses. Lifetime expected credit losses are the
expected credit losses that result from all possible
default events over the expected life of a financial
instrument.
Other financial assets
In respect of its other financial assets, the Company
assesses if the credit risk on those financial assets
has increased significantly since initial recognition.
If the credit risk has not increased significantly
since initial recognition, the Company measures
the loss allowance at an amount equal to 12 month
expected credit losses, else at an amount equal to
the lifetime expected credit losses.
When making this assessment, the Company uses
the change in the risk of a default occurring over
the expected life of the financial asset. To make
that assessment, the Company compares the risk
of a default occurring on the financial asset as at
the Balance sheet date with the risk of a default
occurring on the financial asset as at the date of
initial recognition and considers reasonable and
supportable information, that is available without
undue cost or effort, that is indicative of significant
increases in credit risk since initial recognition.
The Company assumes that the credit risk on a
financial asset has not increased significantly since
initial recognition if the financial asset is determined
to have low credit risk at the Balance Sheet date.
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.
(3) Fair value measurement
The Company measures its financial instruments at
fair value in accordance with the accounting policies
mentioned above. Fair value is the price that would
be received to sell an asset or paid to transfer a
liability in an orderly transaction between market
participants at the measurement date. The fair
value measurement is based on the presumption
that the transaction to sell the asset or transfer the
liability takes place either:
• In the principal market for the asset or liability,
or
• In the absence of a principal market, in the
most advantageous market for the asset or
liability.
All assets and liabilities for which fair value is
measured or disclosed in the standalone financial
statements are categorized within the fair value
hierarchy that categorizes into three levels,
described as follows, the inputs to valuation
techniques used to measure value. The fair value
hierarchy gives the highest priority to quoted
prices in active markets for identical assets or
liabilities (Level 1 input) and the lowest priority to
unobservable inputs (Level 3 inputs).
- Level 1 (unadjusted) - Those where the inputs
used in the valuation are unadjusted quoted
prices from active markets for identical assets
or liabilities that the Company has access
to at the measurement date. The Company
considers markets as active only if there are
sufficient trading activities with regards to the
volume and liquidity of the identical assets
or liabilities and when there are binding and
exercisable price quotes available on the
Balance Sheet date.
- Level 2 - Those where the inputs that are used
for valuation and are significant, are derived
from directly or indirectly observable market
data available over the entire period of the
instrument's life. Such inputs include quoted
prices for similar assets or liabilities in active
markets, quoted prices for identical instruments
in inactive markets and observable inputs
other than quoted prices such as interest
rates and yield curves, implied volatilities, and
credit spreads. In addition, adjustments may
be required for the condition or location of the
asset or the extent to which it relates to items
that are comparable to the valued instrument.
However, if such adjustments are based on
unobservable inputs which are significant to
the entire measurement, the Company will
classify the instruments as Level 3.
- Level 3 - Those that include one or more
unobservable input that is significant to the
measurement as whole.
For assets and liabilities that are recognized in the
financial statements at fair value on a recurring
basis, the Company determines whether transfers
have occurred between levels in the hierarchy by
re-assessing categorization at the end of each
reporting period and discloses the same.
(4) Cash and Cash Equivalents
Cash and cash equivalents for the purpose of Cash
Flow Statement comprise cash and cheques in
hand, bank balances, demand deposits with banks
where the original maturity is three months or less
and other short term highly liquid investments.
(5) Investment in subsidiaries
Investment in subsidiaries is recognised at cost
and are not adjusted to fair value at the end of each
reporting period. Cost of investment represents
amount paid for acquisition of the said investment.
The Company assesses at the end of each
reporting period, if there are any indications that
the said investment may be impaired. If so, the
Company estimates the recoverable value/amount
of the investment and provides for impairment, if
any, i.e., the deficit in the recoverable value over
cost.
(6) Property, plant and equipment (PPE)
Measurement at recognition
An item of PPE that qualifies as an asset is
measured on initial recognition at cost. Following
initial recognition, items of PPE are carried at its cost
less accumulated depreciation and accumulated
impairment losses.
The cost of an item of PPE comprises of its
purchase price including import duties and other
non-refundable purchase taxes or levies, directly
attributable cost of bringing the asset to its working
condition for its intended use and the initial estimate
of decommissioning, restoration and similar
liabilities, if any. Any trade discounts and rebates
are deducted in arriving at the purchase price.
Cost includes cost of replacing a part of a plant
and equipment if the recognition criteria are met.
Items such as, spare parts, stand-by equipment
and servicing equipment that meet the definition
of PPE are capitalized at cost and depreciated
over their useful life. Costs in nature of repairs and
maintenance are recognized in the Statement of
profit and loss as and when incurred.
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.
Capital work-in-progress and capital advances
Cost of assets not ready for intended use, as on
the Balance sheet date, is shown as capital work-
in-progress. Advances given towards acquisition of
PPE outstanding at each Balance sheet date are
disclosed as other non-financial assets.
Depreciation
Depreciation on each part of an item of property,
plant and equipment is provided using the written
down value method based on the useful life of
the asset as prescribed in Schedule II to the Act.
Depreciation is calculated on a pro-rata basis from
the date of installation till date the assets are sold or
disposed. Leasehold improvements are amortised
over the underlying lease term on a straight-line
basis.
De-recognition
The carrying amount of an item of PPE is
derecognized on disposal or when no future
economic benefits are expected from its use or
disposal. The gain or loss arising from the de¬
recognition of an item of PPE is measured as the
difference between the net disposal proceeds and
the carrying amount of the item and is recognized
in the Statement of profit and loss when the item is
derecognized.
(7) Income Taxes
Tax expense is the aggregate amount included in
the determination of profit or loss for the period in
respect of current tax and deferred tax.
Current tax
Current tax is the amount of income taxes payable
in respect of taxable profit for a period. Taxable
profit differs from 'profit before tax' as reported in
the Statement of profit and loss because of items
of income or expense that are taxable or deductible
in other years and items that are never taxable
or deductible under the Income Tax Act, 1961.
Current tax is measured using tax rates that have
been enacted by the end of reporting period for the
amounts expected to be recovered from or paid to
the taxation authorities.
Current income tax relating to items recognised
outside profit or loss is recognised outside profit
or loss (either in other comprehensive income
or in equity). Current tax items are recognised in
correlation to the underlying transaction either in
OCI or directly in equity. Management periodically
evaluates positions taken in the tax returns
with respect to situations in which applicable
tax regulations are subject to interpretation and
establishes provisions where appropriate.
Deferred tax
Deferred tax is recognized on temporary differences
between the carrying amounts of assets and
liabilities in the financial statements and the
corresponding tax bases used in the computation
of taxable profit under Income tax Act, 1961.
Deferred tax liabilities are generally recognized
for all taxable temporary differences. However, in
case of temporary differences that arise from initial
recognition of assets or liabilities in a transaction
(other than business combination) that affect
neither the taxable profit nor the accounting profit,
deferred tax liabilities are not recognized. Also, for
temporary differences if any that may arise from
initial recognition of goodwill, deferred tax liabilities
are not recognized.
Deferred tax assets are generally recognized for all
deductible temporary differences to the extent it is
probable that taxable profits will be available against
which those deductible temporary difference can be
utilized. In case of temporary differences that arise
from initial recognition of assets or liabilities in a
transaction (other than business combination) that
affect neither the taxable profit nor the accounting
profit, deferred tax assets are not recognized. 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 the benefits
of part or all such deferred tax assets to be utilized.
Deferred tax assets and liabilities are measured
at the tax rates that have been enacted or
substantively enacted by the Balance Sheet date
and are expected to apply to taxable income in the
years in which those temporary differences are
expected to be recovered or settled.
The Company has not recognised a deferred
tax liability for all taxable temporary differences
associated with investments in subsidiaries, except
to the extent that both of the following conditions
are satisfied:
- The parent, investor, joint venture or joint
operator is able to control the timing of the
reversal of the temporary difference; and
- It is probable that the temporary difference will
not reverse in the foreseeable future.
Deferred tax relating to items recognised outside
profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity).
Deferred tax items are recognised in correlation to
the underlying transaction either in OCI or directly
in equity.
Deferred tax assets include Minimum Alternative
Tax (MAT) paid in accordance with the tax laws
in India, to the extent it would be available for
set off against future current income tax liability.
Accordingly, MAT is recognised as deferred tax
asset in the Balance Sheet when the asset can be
measured reliably, and it is probable that the future
economic benefit associated with the asset will be
realised.
Presentation of current and deferred tax
Current and deferred tax are recognized as income
or an expense in the Statement of Profit and Loss,
except when they relate to items that are recognized
in Other Comprehensive Income, in which case,
the current and deferred tax income/expense are
recognized in Other Comprehensive Income. The
Company offsets current tax assets and current tax
liabilities, where it has a legally enforceable right
to set off the recognized amounts and where it
intends either to settle on a net basis, or to realize
the asset and settle the liability simultaneously.
In case of deferred tax assets and deferred tax
liabilities, the same are offset if the Company has
a legally enforceable right to set off corresponding
current tax assets against current tax liabilities and
the deferred tax assets and deferred tax liabilities
relate to income taxes levied by the same tax
authority on the Company.
|