(i) Provisions and contingencies
Provisions are recognised when the
Company has a present obligation (legal
or constructive) as a result of a past event,
it is probable that an outflow of resources
embodying economic benefits will be
required to settle the obligation and a reliable
estimate can be made of the amount of the
obligation. Provisions are measured at the
best estimate of the expenditure required to
settle the present obligation at each reporting
date.
Provisions are determined by discounting the
expected future cash flows (representing the
best estimate of the expenditure required to
settle the present obligation at the balance
sheet date) at a pre-tax rate that reflects
current market assessments of the time
value of money and the risks specific to the
liability. The unwinding of the discount is
recognized as finance cost. Expected future
operating losses are not provided for in the
standalone Ind AS financial statements.
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 the obligation or a reliable
estimate of the amount cannot be made.
(j) Foreign currency translation
Functional and presentation currency
Items included in financial statements of the
Company are measured using the currency
of the primary economic environment in
which the Company operates (‘the functional
currency’). The financial statements are
presented in Indian Rupees (INR), which is
the Company’s functional and presentation
currency.
Transactions and balances
Foreign currency transactions are
translated into the functional currency
using the exchange rates at the dates of
the transactions. Foreign exchange gains
and losses resulting from the settlement of
such transactions and from the translation of
monetary assets and liabilities denominated
in foreign currencies at year end exchange
rates are recognized in profit or loss.
Non-monetary items that are measured at
fair value in a foreign currency are translated
using the exchange rates at the date when
the fair value was determined. Translation
differences on assets and liabilities carried
at fair value are reported as part of the fair
value gain or loss. For example, translation
differences on non-monetary assets and
liabilities such as equity instruments held at
fair value through profit or loss are recognized
in profit or loss as part of the fair value gain
or loss and translation differences on non¬
monetary assets such as equity investments
classified as FVOCI are recognized in other
comprehensive income.
(k) Employee benefits
(i) Short-term obligations
Short-term employee benefits are
recognised as an expense at the
undiscounted amount in the Statement
of Profit and Loss for the year in which
the related services are rendered.
The Company recognises the costs of
bonus payments when it has a present
obligation to make such payments as
a result of past events and a reliable
estimate of the obligation can be
made.
(ii) Post-employment obligations
(I) Defined contribution plans
(a) Provident Fund: The Company
recognises contribution payable to
the provident fund scheme as an
expense, when an employee renders
the related service. If the contribution
payable to the scheme for service
received before the balance sheet date
exceeds the contribution already paid,
the deficit payable to the scheme is
recognised as a liability after deducting
the contribution already paid. If the
contribution already paid exceeds the
contribution due for services received
before the balance sheet date, then
excess is recognised as an asset to the
extent that the pre-payment will lead
to, for example, a reduction in future
payment or a cash refund.
(b) Employees’ State Insurance: The
Company contributes to Employees
State Insurance Scheme and
recognises such contribution as an
expense in the Statement of Profit and
Loss in the period when services are
rendered by the employees.
(II) Defined benefit plans
(a) Gratuity: The Company makes
contribution to a Gratuity Fund
administered by trustees and managed
by LIC. The Company accounts its
liability for future gratuity benefits
based on actuarial valuation, as at the
Balance Sheet date, determined every
year by an independent actuary using
the Projected Unit Credit method.
Re-measurements, comprising of
actuarial gains and losses, the effect
of the asset ceiling, excluding amounts
included in net interest on the net
defined benefit liability and the return
on plan assets (excluding amounts
included in net interest on the net
defined benefit liability), are recognised
immediately in the balance sheet
with a corresponding debit or credit
to retained earnings through OCI
in the period in which they occur.
Remeasurements are not reclassified
to profit or loss in subsequent periods.
Past service costs are recognised in
profit or loss on the earlier of:
(i) The date of the plan amendment or
curtailment, and
(ii) The date that the company recognises
related restructuring costs
Net interest is calculated by applying
the discount rate to the net defined
benefit liability or asset.
The Company recognises the following
changes in the net defined benefit
obligation as an expense in the
standalone statement of profit and loss:
(i) Service costs comprising current
and past service costs, gains and
losses on curtailments and non-routine
settlements; and
(ii) Net interest expense or income
(III) Other Long-term employee benefits
(a) Compensated absences - Privilege
leave entitlements are recognised
as a liability as per the rules of the
Company. The liability for accumulated
leaves which can be availed and/
or encashed at any time during the
tenure of employment is recognised
using the projected unit credit method
at the actuarially determined value by
an appointed independent actuary. The
liability for accumulated leaves which
is eligible for encashment within the
same calendar year is provided for
at prevailing salary rate for the entire
unavailed leave balance as at the
Balance Sheet date.
(l) Leases
(I) Operating lease as lessee - The
Company has adopted Ind AS 116
- “Leases” effective 1 April, 2019,
using the “full retrospective method”.
Further, the Company has applied
the standard to its leases with the full
impact recognised on the date of initial
application.
The Company’s lease asset classes
primarily consist of leases for office
premises. The Company assesses
whether a contract is or contains a
lease, at inception of a contract. A
contract is, or contains, a lease if the
contract conveys the right to control the
use of an identified asset for a period of
time in exchange for consideration. To
assess whether a contract conveys the
right to control the use of an identified
asset, the Company assesses whether:
(i) The contract involves the use of an
identified asset;
(ii) The Company has substantially all of
the economic benefits from use of the
asset through the period of the lease;
and
(iii) The Company has the right to direct
the use of the asset.
At the date of commencement of
the lease, the Company recognises
a right-of-use asset (“ROU”) and a
corresponding lease liability for all
lease arrangements in which it is a
lessee, except for leases with a term
of twelve months or less (short-term
leases) and leases of low value assets.
For these short-term and leases of low
value assets, the Company recognises
the lease payments as an operating
expense on a straight-line basis over
the term of the lease.
The right-of-use assets are initially
recognised at cost, which comprises
the initial amount of the lease liability
adjusted for any lease payments made
at or prior to the commencement date
of the lease plus any initial direct
costs less any lease incentives. They
are subsequently measured at cost
less accumulated depreciation and
impairment losses, if any. Right-of-
use assets are depreciated from the
commencement date on a straight-line
basis over the shorter of the lease term
and useful life of the underlying asset.
The lease liability is initially measured
at the present value of the future
lease payments. The lease payments
are discounted using the interest rate
implicit in the lease or, if not readily
determinable, using the incremental
borrowing rates. The lease liability
is subsequently remeasured by
increasing the carrying amount to
reflect interest on the lease liability,
reducing the carrying amount to reflect
the lease payments made.
A lease liability is remeasured upon the
occurrence of certain events such as a
change in the lease term or a change
in an index or rate used to determine
lease payments. The remeasurement
normally also adjusts the leased
assets.
Lease liability and ROU asset have
been separately presented in the
Balance Sheet and lease payments
have been classified as financing cash
flows.
(II) Operating lease as lessor: In respect
of assets given on operating lease,
lease rentals are recognised on a
straight- line basis over the term of
lease unless;
(i) Another systematic basis is more
representative of the time pattern in
which the benefit is derived from leased
asset; or
(ii) The payments to the lessor are
structured to increase in line with
the expected general inflation to
compensate the lessor’s expected
inflationary cost increases, in which
case the rental are recognised based
on contractual term.
(m) Income tax
Current tax
Current tax assets and liabilities for the
current and prior years are measured at the
amount expected to be recovered from, or
paid to, the taxation authorities. The tax rates
and tax laws used to compute the amount
are those that are enacted, or substantively
enacted, by the reporting date in the country
where the Company operates and generates
taxable income.
Current income tax relating to items
recognised outside profit or loss is recognised
outside profit or loss i.e 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.
Minimum Alternate Tax
Minimum alternate tax (MAT) paid in a year is
charged to the statement of prout and loss as
current tax. The Company recognizes MAT
credit available as an asset only to the extent
that it is probable that the Company will
pay normal income tax during the specified
period, i.e., the period for which MAT credit is
allowed to be carried forward. In the year in
which the Company recognizes MAT credit
as an asset in accordance with the Guidance
Note on Accounting for Credit Available in
respect of Minimum Alternative Tax under
the Income-tax Act, 1961, the said asset is
created by way of credit to the statement of
profit and loss and shown as “MAT Credit
“ The Company reviews the MAT Credit
Entitlement asset at each reporting date
and writes down the asset to the extent
the Company does not have convincing
evidence that it will pay normal tax during
the speciued period.
Deferred Tax
Deferred tax is provided on temporary
differences at the reporting date between
the tax bases of assets and liabilities and
their carrying amounts for financial reporting
purposes.
Deferred tax liabilities are recognised for
all taxable temporary differences, except
in respect of taxable temporary differences
associated with investments in subsidiaries,
where the timing of the reversal of the
temporary differences can be controlled and
it is probable that the temporary differences
will not reverse in the foreseeable future.
Deferred tax assets are recognised for
all deductible temporary differences, the
carry forward of unused tax credits and any
unused tax losses. Deferred tax assets are
recognised to the extent that it is probable
that taxable profit will be available against
which the deductible temporary differences,
and the carry forward of unused tax credits
and unused tax losses can be utilised,
except in respect of deductible temporary
differences associated with investments
in subsidiaries deferred tax assets are
recognised only to the extent that it is
probable that the temporary differences will
reverse in the foreseeable future and taxable
profit will be available against which the
temporary differences can be utilized.
The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced
to the extent that it is no longer probable
that sufficient taxable profit will be available
to allow all or part of the deferred tax asset
to be utilised. Unrecognised deferred tax
assets are re-assessed at each reporting
date and are recognised to the extent that
it has become probable that future taxable
profits will allow the deferred tax asset to be
recovered.
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.
(n) Cash and cash equivalents
Cash and cash equivalents include cash
on hand, other short term, highly liquid
investments with original maturities of three
months or less that are readily convertible
to known amounts of cash and which are
subject to an insignificant risk of changes in
value.
(o) Financial instruments
A financial instrument is defined as any
contract that gives rise to a financial asset
of one entity and a financial liability or
equity instrument of another entity. Trade
receivables and payables, loan receivables,
investments in securities and subsidiaries,
debt securities and other borrowings,
preferential and equity capital etc. are some
examples of financial instruments.
All the financial instruments are recognised
on the date when the Company becomes
party to the contractual provisions of the
financial instruments. For tradable securities,
the Company recognises the financial
instruments on settlement date.
Initial recognition and measurement:
Financial assets and financial liabilities
are recognized when the entity becomes
a party to the contractual provisions of the
instrument. Regular way purchases and
sales of financial assets are recognized on
trade-date, the date on which the Company
commits to purchase or sell the asset.
At initial recognition, the Company measures
a financial asset or financial liability at its
fair value plus or minus, in the case of a
financial asset or financial liability not at fair
value through profit or loss, transaction costs
that are incremental and directly attributable
to the acquisition or issue of the financial
asset or financial liability. Transaction costs
of financial assets and financial liabilities
carried at fair value through profit or loss are
expensed in profit or loss. Immediately after
initial recognition, an expected credit loss
allowance (ECL) is recognized for financial
assets measured at amortised cost.
When the fair value of financial assets and
liabilities differs from the transaction price on
initial recognition, the entity recognizes the
difference as follows:
(a) When the fair value is evidenced by
a quoted price in an active market
for an identical asset or liability (i.e. a
Level 1 input) or based on a valuation
technique that uses only data from
observable markets, the difference is
recognized as a gain or loss.
(b) In all other cases, the difference is
deferred and the timing of recognition
of deferred day one profit or loss is
determined individually. It is either
amortized over the life of the instrument,
deferred until the instrument’s fair
value can be determined using market
observable inputs, or realized through
settlement.
When the Company revises the estimates
of future cash flows, the carrying amount of
the respective financial assets or financial
liability is adjusted to reflect the new estimate
discounted using the original effective
interest rate. Any changes are recognized
in profit or loss.
Classification and subsequent
measurement
The Company classifies its financial
assets as subsequently measured at either
amortised cost or fair value depending on the
Company’s business model for managing
the financial assets and the contractual cash
flow characteristics of the financial assets.
A financial asset is measured at amortised
cost only if both of the following conditions
are met:
(i) The asset is held within a business
model whose objective is to hold them
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 amount
outstanding.
The Company has applied Ind AS 109 and
classifies its financial assets in the following
measurement categories:
- Amortised cost
- Fair value through profit or loss
(FVTPL); or
- Fair value through other comprehensive
income (FVOCI)
Such financial assets are subsequently
measured at amortised cost using the
Effective Interest rate method. Financial
assets are subsequently measured at
fair value through other comprehensive
income if these financial assets are held
within a business model whose objective
is achieved by both collecting contractual
cash flows and selling financial assets and
the contractual terms of financial asset give
rise on specified dates to cash flows that are
solely payments of principal and interest on
principal and the interest on the principal
outstanding. Any financial instrument, which
does not meet the criteria for categorisation
as amortized cost or as Fair Value Through
Other Comprehensive Income (FVTOCI),
is classified as at Fair Value Through P&L
(FVTPL). In addition, the Company may
elect to classify a debt instrument, which
otherwise meets amortized 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’). Debt instruments included within
the FVTPL category are measured at fair
value with all changes recognised in the
profit and loss.
Financial liabilities are classified at amortised
cost or FVTPL. A financial liability is classified
as at FVTPL if it is classified as held for
trading, or it is a derivative or it is designated
as such on initial recognition. Financial
liabilities at FVTPL are measured at fair
value and net gains and losses, including
any interest expense, are recognised in
profit or loss. Other financial liabilities are
subsequently measured at amortised cost
using the effective interest method. Interest
expense and foreign exchange gains and
losses are recognised in profit or loss.
Any gain or loss on derecognition is also
recognised in Statement of Profit or loss.
Equity Investments
The Company accounts for equity
investments in subsidiaries at cost less
impairment.
All other equity investments are measured
at fair value, with value changes recognised
in Statement of Profit and Loss, except
for those equity investments for which
the Company has elected to present the
value changes in ‘Other Comprehensive
Income’. However, dividend on such equity
investments are recognised in Statement of
Profit and loss when the Company’s right to
receive payment is established.
Fair Value Hierarchy
Some of the Company’s assets and liabilities
are measured at fair value for financial
reporting purpose. 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.
Information about the valuation techniques
and inputs used in determining the fair value
of various assets and liabilities are disclosed
in Note 49 of the standalone Ind AS financial
statements.
Impairment of Financial Assets
The Company applies expected credit
loss (ECL) model for measurement and
recognition of loss allowance on the following:
(i) Trade receivables
(ii) Financial assets measured at amortised
cost (other than trade receivables)
(iii) Financial assets measured at fair value
through other comprehensive income
(FVTOCI)
In case of trade receivables, the Company
follows a simplified approach wherein an
amount equal to lifetime ECL is measured
and recognised as loss allowance.
In case of other assets (listed as ii and iii
above), the Company determines if there
has been a significant increase in credit risk
of the financial asset since initial recognition
If the credit risk of such assets has not
increased significantly, an amount equal to
12-month ECL is measured and recognised
as loss allowance. However, if credit risk has
increased significantly, an amount equal to
lifetime ECL is measured and recognised as
loss allowance.
Subsequently, if the credit quality of the
financial asset improves such that there is
no longer a significant increase in credit risk
since initial recognition, the Company reverts
to recognising impairment loss allowance
based on 12-month ECL.
ECL is the difference between all contractual
cash flows that are due to the Company in
accordance with thecontract and all the cash
flows that the Company expects to receive
(i.e. all cash shortfalls), discounted at the
original effective interest rate.
Lifetime ECL are the expected credit losses
resulting from all possible default events
over the expected life of a financial asset.
12-month ECL are a portion of the lifetime
ECL which result from default events that are
possible within 12 months from the reporting
date.
ECL are measured in a manner that they
reflect unbiased and probability weighted
amounts determined by a range of outcomes,
taking into account the time value of money
and other reasonable information available
as a result of past events, current conditions
and forecasts of future economic conditions.
As a practical expedient, the Company uses
a provision matrix to measure lifetime ECL
on its portfolio of trade receivables.
The provision matrix is prepared based on
historically observed default rates over the
expected life of trade receivables and is
adjusted for forward-looking estimates. At
each reporting date, the historically observed
default rates and changes in the forward¬
looking estimates are updated.
Write-offs
The Company reduces the gross carrying
amount of a financial asset when the
Company has no reasonable expectations
of recovering a financial asset in its entirety
or a portion thereof. This is generally the
case when the Company determines that the
borrower does not have assets or sources of
income that could generate sufficient cash
fiows to repay the amounts subjected to
write-offs. Any subsequent recoveries are
credited to the statement of profit and loss.
De-recognition of financial instruments
(a) Financial asset - A financial asset or a
part thereof is primarily de-recognised
when:
(i) The right to receive contractual cash
flows from the asset has expired, or
(ii) The Company has transferred its right
to receive cash flows from the asset
or has assumed an obligation to pay
the received cash flows in full without
material delay to a third party under a
‘pass-through’ arrangement; and either:
(a) The Company has transferred
substantially all the risks and rewards
of the asset, or
(b) The Company has neither transferred
nor retained substantially all the risks
and rewards of the asset, but has
transferred control of the asset.
If the Company enters into transactions
whereby it transfers assets recognised
on its balance sheet, but retains all or
substantially all the risks and rewards of
the transferred assets, the transferred
assets are not de-recognised.On de¬
recognition of a financial asset, the
difference between the carrying amount
of the asset and the consideration
received is recognised in profit or loss.
(b) Financial liabilities: The Company de¬
recognises a financial liability when its
contractual obligations are discharged,
cancelled or expired.
Offsetting of financial instruments
Financial assets and liabilities are offset and
the net amount is reported in the balance
sheet where there is a legally enforceable
right to offset the recognised amounts and
there is an intention to settle on a net basis
or realise the asset and settle the liability
simultaneously. The legally enforceable right
must not be contingent on future events and
must be enforceable in the normal course
of business and in the event of default,
insolvency or bankruptcy of the Company
or the counterparty.
(p) Revenue Recognition
The Company recognises revenue from
contracts with customers based on a five-
step model asset out in Ind AS 115, Revenue
from Contracts with Customers, to determine
when to recognize revenue and at what
amount. Revenue is measured based on
the consideration specified in the contract
with a customer. Revenue from contracts
with customers is recognised when services
are provided and it is highly probable that
a significant reversal of revenue is not
expected to occur.
Revenue is measured at fair value of
the consideration received or receivable.
Revenue is recognised when (or as) the
Company satisfies a performance obligation
by transferring a promised service (i.e. an
asset) to a customer. An asset is transferred
when (or as) the customer obtains control of
that asset
Step 1: Identify contract(s) with a customer: A
contract is defined as an agreement between
two or more parties that creates enforceable
rights and obligations and sets out the criteria
for every contract that must be met.
Step 2: Identify performance obligations in
the contract: A performance obligation is
a promise in a contract with a customer to
transfer a good or service to the customer.
Step 3: Determine the transaction price:
The transaction price is the amount of
consideration to which the Company expects
to be entitled in exchange for transferring
promised goods or services to a customer,
excluding amounts collected on behalf of
third parties.
Step 4: Allocate the transaction price to the
performance obligations in the contract:
For a contract that has more than one
performance obligation, the Company
allocates the transaction price to each
performance obligation in an amount that
depicts the amount of consideration to
which the Company expects to be entitled
in exchange for satisfying each performance
obligation.
Step 5: Recognise revenue when (or as) the
Company satisfies a performance obligation.
(i) Interest income - Interest income is
recognised using the effective interest rate
(EIR) method by considering all contractual
terms of the financial instrument in estimating
the cash flows.
(ii) Dividend income - Dividend income
(including from FVOCI 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.
(iii) Net gain on fair value changes - Financial
assets are subsequently measured at fair
value through profit or loss (FVTPL) or
fair value through other comprehensive
income (FVOCI), as applicable. The
Company recognises gains/losses on fair
value changeof financial assets measured
as FVTPL and realised gains/losses on
derecognition of financial asset measured
at FVTPL and FVOCI.
(iv) Sale of services - Income from services
(including other operating revenues) are
recognized with reference to achievement
of milestones defined in the corresponding
engagement or mandate letters entered with
counter party which reflects the stage of each
performance obligation.
(v) Dividend income - The Company recognises
dividend income in the statement of profit
or loss on the date that the Company’s
right to receive payment is established,
it is probable that the economic benefits
associated with the dividend will flow to the
entity and the amount of dividend can be
reliably measured. This is generally when
the shareholders approve the dividend.
(vi) Contract Balances
Trade Receivables - A receivable represents
the Company’s right to an amount of
consideration that is unconditional.
Unbilled Revenue - Unbilled revenue
represents value of services performed in
accordance with reference to achievement
of milestones defined in the corresponding
engagement or mandate letters entered with
counter party with the contract terms but not
billed.
Contract Liabilities - A contract liability is
the obligation to transfer goods or services
to a customer for which the Company has
received consideration (or an amount of
consideration is due) from the customer. If
a customer pays consideration before the
Company transfers goods or services to the
customer, a contract liability is recognised
when the payment is made or the payment
is due (whichever is earlier). Contract
liabilities are recognised as revenue when
the Company performs under the contract.
(q) Cash flow statement
Cash flows are reported using the indirect
method, where by profit / (loss) before tax
is adjusted for the effects of transactions
of non-cash nature and any deferrals or
accruals of past or future cash receipts or
payments.
For the purpose of the Statement of Cash
Flows, cash and cash equivalents as defined
above, as they are considered an integral
part of cash management of the company.
(r) 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 and
for all periods presented is adjusted for
events, such as bonus shares, other than the
conversion of potential equity 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.
(s) Dividends
The final dividend on shares is recorded
as a liability on the date of approval by the
shareholders, and interim dividends are
recorded as liability on the date of declaration
by the Company’s Board of Directors and
consequently approved by the shareholders
of the company.
(t) Segment information
Operating segments are those components
of the business whose operating results are
regularly reviewed by the chief operating
decision making body in the Company to
make decisions for performance assessment
and resource allocation.
The reporting of segment information is the
same as provided to the management for the
purpose of the performance assessment and
resource allocation to the segments
The accounting policies adopted for Segment
reporting are in line with the accounting
policies of the company with the following
additional policies:
Revenue and expenses have been identified
to segments on the basis of their relationship
to the operating activities of the Segment.
Revenue and expenses, which relate to the
enterprise as a whole and are not allocable
to Segments on a reasonable basis have
been included under “Un-allocable”.
Assets and liabilities have been identified to
segments on the basis of their relationship
to the operating activities of the Segment.
Assets and liabilities, which relate to the
enterprise as a whole and are not allocable
to Segments on a reasonable basis have
been included under “Un-allocable”.
(u) Events after reporting date
Where events occurring after the balance
sheet date provide evidence of conditions
that existed at the end of the reporting period,
the impact of such events is adjusted within
the financial statements. Otherwise, events
after the balance sheet date of material size
or nature are only disclosed.
(v) Critical estimates and judgements
The preparation of financial statements
requires the use of accounting estimates
which by definition will seldom equal the
actual results. Management also need
to exercise judgement in applying the
Company’s accounting policies.
This note provides an overview of the areas
that involved a higher degree of judgement or
complexity, and items which are more likely
to be materially adjusted due to estimates
and assumptions turning out to be different
than those originally assessed. Detailed
information about each of these estimates
and judgements is included in relevant notes
together with information about the basis of
calculation for each affected line item in the
financial statements.
The areas involving critical estimates or
judgement are:
(i) Estimated useful life of PPE - refer Note
2(d) and 11
(ii) Estimation of tax expenses and tax
payable - refer Note 2(m) and 46
(iii) Fair value of financial instruments - refer
Note 2(o) and 48
(iv) Estimation of Defined benefit obligations
- refer Note 2(k) and 44
(v) Probable outcome of matters included
under Contingent Liabilities - refer note
2(i) and 33.
|