Page 255 - Index

Mission-Critical Decisions, Made with Confidence.
a) has a legally enforceable right to set off the
recognised amounts; and
b) intends either to settle on a net basis, or to realise
the asset and settle the liability simultaneously.
Deferred tax
Deferred tax is recognised in respect of temporary
differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the
amounts used for taxation purposes.
Deferred tax assets are recognised for unused tax
losses, unused tax credits and deductible temporary
differences to the extent that it is probable that future
taxable profits will be available against which they
can be used. Deferred tax assets are reviewed at each
reporting date and are reduced to the extent that it
is no longer probable that the related tax benefit will
be realised; such reductions are reversed when the
probability of future taxable profits improves.
Unrecognised deferred tax assets are reassessed at
each reporting date and recognised to the extent that
it has become probable that future taxable profits will
be available against which they can be used. Deferred
tax is measured at the tax rates that are expected to
be applied to temporary differences when they reverse,
using tax rates enacted or substantively enacted at
the reporting date. The measurement of deferred tax
reflects the tax consequences that would follow from
the manner in which the Company expects, at the
reporting date, to recover or settle the carrying amount
of its assets and liabilities.
Deferred tax assets and liabilities are offset only if:
a) The Company has a legally enforceable right to
set off current tax assets against current tax
liabilities; and
b) The deferred tax assets and the deferred tax
liabilities relate to income taxes levied by the same
taxation authority on the same taxable entity.
2.19 Earnings per share
Basic earnings per share are 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 year. The weighted
average number of equity shares outstanding during
the period is adjusted for events such as buy back,
Employee Stock Option Scheme (ESOS), etc. 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 Company has adopted treasury stock
method to compute the new shares that can possibly
be created by un-exercised stock options. The net
profit or loss for the period attributable to equity
shareholders and the weighted average number of
shares outstanding during the period are adjusted for
the effects of all dilutive potential equity shares.
2.20 Dividend
The final dividend on shares is recorded as a liability
on the date of approval by the shareholders. Interim
dividend is recognised as a liability on the date of
declaration by the Company’s Board of Directors.
2.21 Cash flow statement
Cash flows are reported using the indirect method,
whereby profit 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 and
item of income or expenses associated with investing
or financing cash flows. Cash flow from operating,
investing and financing activities are segregated.
2.22 Recent accounting pronouncement
Application of new and revised Indian Accounting
Standards (Ind AS)
All the Ind AS issued and notified by the Ministry
of Corporate Affairs under the Companies (Indian
Accounting Standards) Rules, 2015 (as amended) till
the standalone financial statements are authorised,
have been considered in preparing these Standalone
Financial Statements.
Application of new accounting pronouncements
‘Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. For the year ended
December 31, 2024, MCA has not notified any new
standards or amendments to the existing standards
applicable to the Company.
Annual Report 2024
253
Financial Statements