Page 254 - Index

The calculation of defined benefit obligations is
performed annually by a qualified actuary using the
projected unit credit method. When the calculation
results in a potential asset for the Company, the
recognised asset is limited to the present value
of economic benefits available in the form of any
future refunds from the plan or reductions in future
contributions to the plan. To calculate the present
value of economic benefits, consideration is given to
any applicable minimum funding requirements.
Remeasurement of the net defined benefit liability,
which comprise actuarial gains and losses and the
return on plan assets (excluding interest) and the
effect of the asset ceiling (if any, excluding interest),
are recognised immediately in OCI. Net interest
expense (income) on the net defined liability (assets)
is computed by applying the discount rate, used to
measure the net defined liability (asset). Net interest
expense and other expenses related to defined benefit
plans are recognised in the statement of profit and loss.
When the benefits of a plan are changed or when a plan
is curtailed, the resulting change in benefit that relates
to past service or the gain or loss on curtailment is
recognised immediately in the statement of profit
and loss. The Company recognises gains and losses
on the settlement of a defined benefit plan when the
settlement occurs.
Short term compensated absences are provided for
based on estimates. Long term compensated absences
are provided for based on actuarial valuation. The
actuarial valuation is done as per projected unit credit
method. The Company presents the leave as a current
liability in the balance sheet, to the extent it does not
have an unconditional right to defer its settlement
for 12 months after the reporting date. Where the
Company has the unconditional legal and contractual
right to defer the settlement for a period beyond twelve
months, the same is presented as non-current liability.
Defined contribution plans
Retirement benefits in the form of provident fund is a
defined contribution plan and is charge to the statement
of profit and loss for each period of service rendered
by the employees. Excess or short of contribution
is recognised as an asset or liability in the financial
statement. There are no other obligations other than
the contribution payable to the respective authorities.
252 Annual Report 2024
Standalone
Employee stock compensation cost
The Company recognises expense relating to share
based payment in net profit using fair value in
accordance with Ind AS 102-Share Based Payment.
The grant date fair value of options granted to
employees is recognised as an employee expense, with
a corresponding increase in equity, over the period that
the employees become unconditionally entitled to the
options. The expense is recorded for each separately
vesting portion of the award as if the award was, in
substance, multiple awards. The increase in equity
recognised in connection with share based payment
transaction is presented as a separate component
in equity under “share-based payment reserve”. The
amount recognised as an expense is adjusted to reflect
the actual number of stock options that vest.
2.17 Foreign currency transactions
Foreign currency transactions are recorded at exchange
rates prevailing on the date of transaction. Foreign
currency denominated monetary assets and liabilities
are restated into the functional currency using
exchange prevailing at the balance sheet date. Gains
and losses arising on settlement and restatement of
foreign currency denominated monetary assets and
liabilities are recognised in the statement of profit
and loss. Non-monetary assets and liabilities that
are measured in terms of historical cost in foreign
currencies are not translated.
2.18 Taxes on income
Income tax expense comprises current and deferred
tax. It is recognised in the statement of profit and loss
except to the extent that it relates items recognised
directly in equity or in OCI.
Current tax
Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable
in respect of previous years. It is measured using tax
rates enacted or substantively enacted at the reporting
date. Management periodically evaluates positions
taken in tax returns with respect to situations in which
applicable tax regulation is subject to interpretations
and establishes provisions where appropriate.
Current tax assets and liabilities are offset only if,
the Company: