34.13. Provisions and contingent liabilities
Provisions are recognised when the Company
has a present legal or constructive obligation
as a result of past events,
it is probable that an outflow of resources will
be required to settle the obligation and the
amount can be reliably estimated. Provisions
are not recognised for future operating losses.
Where there are a number of similar
obligations, the likelihood that an outflow will
be required in settlement is determined by
considering the class of obligations as a
whole. A provision is recognised even if the
likelihood of an outflow with respect to any
one item included in the same class of
obligations may be small.
Provisions are measured at the present value
of management's best estimate of the
expenditure required to settle the present
obligation at the end of the reporting period. In
case of long term provisions, they are
disclosed by discounting at the rate used to
determine the present value, which is a pre-tax
rate that reflects current market assessments
of the time value of money and the risks
specific to the liability. The increase in the
provision due to the passage of time is
recognised as interest expense.
Contingent liabilities are disclosed when there
is a possible obligation arising from past
events, the existence of which will be
confirmed only by the occurrence or non
occurrence of one or more uncertain future
events not wholly within the control of the
Company or a present obligation, that arises
from past events where it is either not
probable that an outflow of resources will be
required to settle or a reliable estimate of the
amount cannot be made.
34.14. Employee benefits
i) Short-term obligations
Liabilities for wages and salaries, including
non-monetary benefits that are expected to
be settled wholly within twelve 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. The liabilities are presented as
current employee benefit obligation in the
Balance Sheet.
ii) Other long-term employee benefit
obligations
The liabilities for earned leave are not
expected to be settled wholly within twelve
months after the end of the period in which
the employees render the related service.
They are therefore measured at 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 on government bonds that have
terms approximating to the terms of the
related obligation.Remeasurements as a
result of experience adjustments and
changes in actuarial assumptions are
recognised in statement of profit and loss.
Past service costs are recognised
immediately in the Statement of Profit and
Loss.
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.
iii) Post employment obligations:
The Company operates the following post¬
employment schemes:
Defined contribution plan such as
Provident Fund and Employees State
Insurance
The Company pays provident fund
contributions to publicly administered
provident funds and employees state
insurance 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 recognised as employee benefit
expense when they are due.
iv) Bonus plans
The Company recognises a liability and an
expense for bonuses. The Company
recognises a provision where contractually
obliged or where there is a past practice
that has created a constructive obligation.
v) Share-based payments
The fair value of options granted under
"Tracxn Employee Stock Option Plans" are
recognised as an employee benefits
expense with a corresponding increase in
equity. The total amount to be expensed is
determined by reference to the fair value of
the options granted:
• Including any market performance
conditions (e.g., the entity's share
price)
• Excluding the impact of any service and
non-market performance vesting conditions
(e.g. profitability, sales growth targets and
remaining an employee of the entity over a
specified time period), and
• Including the impact of any non-vesting
conditions (e.g. the requirement for
employees to save or hold shares for a
specific period of time).
The total expense is recognised over the
vesting period, which is the period over which
all of the specified vesting conditions are to be
satisfied. At the end of each reporting period,
the entity revises its estimates of the number
of options that are expected to vest based on
the non-market vesting and service conditions.
It recognises the impact of the revision to
original estimates, if any, in profit or loss, with
a corresponding adjustment to equity.
34.15. Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period.
The weighted average number of equity shares outstanding during the period is adjusted for events such as
bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares)
that have changed the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the period is adjusted
for the effects of all dilutive potential equity shares. Ordinary shares that will be issued upon the conversion
of a mandatorily convertible instrument are included in the calculation of basic earnings per share from the
date these mandatorily convertible instruments are classified as equity.
34.16. Contributed equity
Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.
34.17. Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at
the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the
reporting period.
34.18. Exceptional items
When an item of income or expense within Statement of profit and loss from ordinary activity is of such
size, nature or incidence that its disclosure is relevant to explain the performance of the Company for the
year, the nature and amount of such items is disclosed as exceptional items.
34.19. Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as
permitted by Schedule III of Companies Act, 2013, unless otherwise stated. Amounts mentioned as "0.00" in
the financial statements denote amounts rounded off, being less than rupees five thousand.
35. Additional regulatory information
i) Details of benami property held
No proceedings have been initiated on or are pending against the Company for holding benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
ii) Borrowing secured against current assets
The Company has not been sanctioned working capital limits in excess of INR 500 (lakhs), in aggregate from
banks and financial institutions.
iii) Wilful defaulter
The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.
iv) Relationship with struck off companies
The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies
Act, 1956.
v) Compliance with number of layers of companies
The company does not have any subsidiaries and hence compliance with 2(87) of the Companies Act, 2013
read with Companies (Restriction on number of layers) Rules, 2017 ('Layering Rules') is not applicable.
vi) Compliance with approved scheme(s) of arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on current
or previous financial year.
vii) Undisclosed income
There is no income surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
viii) Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current or previous
year.
ix) Valuation of property plant and equipment, intangible asset and investment property
The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets during the current or previous year.
x) Compliance with section 185 and 186 of the Act
The Company has not granted any loans or made any investments or provided any guarantees or security to
the parties covered under Sections 185 and 186 of the Act.
xi) Core investment companies (CIC)
The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve
Bank of India. The Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016)
does not have any CICs, which are part of the Group.
xii) Compliance with number of layers of companies
The Company has not made any investments and hence compliance with respect to number of layers
prescribed under section 2(87) of the Companies Act, 2013 read with Companies (Restriction of number of
layers) Rules, 2017 is not applicable.
xiii) Utilisation of borrowed funds and share premium
A) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or
any other sources or kind of funds) to or in any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary
shall:
a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Company (Ultimate Beneficiaries) or
b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
B) The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall:
a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party (Ultimate Beneficiaries) or
b) Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
xiv) Registration of charges or satisfaction with Registrar of Companies
There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond
the statutory period.
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