n. Provisions and Contingencies
A provision is recognized if, as a result of a past
event, the Company has a present legal
obligation that is reasonably estimate, and it is
probable that an outflow of economic benefits
will be required to settle the obligation.
Provisions are determined by the best estimate
of the outflow of economic benefits required to
settle the obligation at the reporting date. Where
no reliable estimate can be made, a disclosure is
made as contingent liability. A disclosure for
contingent liability is also made when there is a
possible obligation or a present obligation that
may, but probably will not, require an outflow of
resources. Where there is a possible obligation
or a present obligation in respect of which the
likelihood of outflow of resources is remote, no
provision or disclosure is made.
x Taxes on Income
Income tax expenses for the year/period under
review comprises of current tax and deferred tax.
Current tax provision is determined on the basis
of taxable income computed as per the
provisions of the Income Tax Act. Deferred tax is
recognized for all timing differences that are
capable of reversal in one or more subsequent
periods subject to conditions of prudence and by
applying tax rates that have been substantively
enacted by the balance sheet date.
x Earnings per Share
Basic and diluted earnings per share are
computed in accordance with Accounting
Standard-20. Basic earnings per share is
calculated by dividing the net profit or loss after
tax for the year/period under review attributable
to equity shareholders by the weighted average
number of equity shares outstanding during the
year/period under review. Diluted earnings per
equity share are computed using the weighted
average number of equity shares and dilutive
potential equity shares outstanding during the
year/period under review, except where the
results are anti-dilutive. In the case of bonus
issue since, the bonus issue is an issue without
consideration, the issue is treated as it had
occurred prior to the beginning of the
year/period under review, the earliest period
reported.
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