Investor Presentaiton
MRP
The net interest cost is calculated by applying the discount
rate to the net balance of the defined benefit obligation
and the fair value of plan assets. This cost is included in
employee benefit expense in the Consolidated statement
of profit and loss except those included in cost of assets as
permitted.
Re-measurements comprising of actuarial gains and
losses arising from experience adjustments and change
in actuarial assumptions, the effect of change in assets
ceiling (if applicable) and the return on plan asset
(excluding net interest as defined above) are recognized
in other comprehensive income (OCI) except those
included in cost of assets as permitted in the period in
which they occur. Re-measurements are not reclassified
to the Consolidated statement of profit and loss in
subsequent periods.
Service cost (including current service cost, past service
cost, as well as gains and losses on curtailments and
settlements) is recognized in the Consolidated statement
of profit and loss except those included in cost of assets
as permitted in the period in which they occur.
Eligible employees of the Group receive benefits
from a provident fund trust which is a defined benefit
plan. Both the eligible employee and the Group make
monthly contributions to the provident fund plan equal
to a specified percentage of the covered employees
salary. The Group contributes a part of the contribution
to the provident fund trusts. The trusts invests in specific
designated instruments as permitted by Indian Law. The
remaining portion is contributed to the Government
Administered Pension Fund. The rate at which the
annual interest is payable to the beneficiaries by the
trusts is administered by the Government. The Group has
obligation to make good the shortfall, if any, between
the return from investments of the Trusts and the notified
interest rate. However, as at the year end no shortfall
remains unprovided for.
e)
Defined Contribution Plans
Payments to defined contribution retirement benefit
plans, viz., Provident Fund for certain eligible
employees, Pension Fund and Superannuation
benefits are recognized as an expense when
employees have rendered the service entitling them
to the contribution.
17) Taxes on Income:
a)
b)
Income tax expense represents the sum of tax currently payable
and deferred tax. Tax is recognized in the Consolidated
statement of profit and loss, except to the extent that it relates to
items recognized directly in equity or in other comprehensive
income.
Current Tax:
Current tax includes provision for Income Tax computed
under normal provision of Income Tax Act. Tax on Income
for the current period is determined on the basis of estimated
taxable income and tax credits computed in accordance
with the provisions of the relevant tax laws and based on the
expected outcome of assessments/appeals.
Deferred Tax:
Deferred tax is recognised on temporary differences between
the carrying amounts of assets and liabilities in the balance
sheet and the corresponding tax bases used in the computation
of taxable profit. Deferred tax liabilities are generally recognised
for all taxable temporary differences. Deferred tax assets are
generally recognised for all deductible temporary differences,
unabsorbed losses and unabsorbed depreciation to the extent
that it is probable that future taxable profits will be available
against which those deductible temporary differences,
unabsorbed losses and unabsorbed depreciation can be utilised.
The carrying amount of deferred tax assets is reviewed at
each balance sheet date and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available
to allow all or part of the asset to be recovered.
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