Investor Presentaiton
MRP
e)
included in employee benefit expense in the 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 recognised
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 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 recognised in the 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 Company receive benefits from a
provident fund trust which is a defined benefit plan. Both
the eligible employee and the Company make monthly
contributions to the provident fund plan equal to a specified
percentage of the covered employees salary. The Company
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 Company 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.
Defined Contribution Plans:
Payments to defined contribution retirement benefit
plans, viz., Provident Fund for certain eligible
employees, Pension Fund and Superannuation benefits
are recognised as an expense when employees have
rendered the service entitling them to the contribution.
17) Taxes on Income:
Income tax expense represents the sum of tax currently payable
and deferred tax. Tax is recognised in the Statement of Profit
and Loss, except to the extent that it relates to items recognised
directly in equity or in other comprehensive income.
a)
b)
Current Tax:
Current tax is the expected tax payable/ receivable on
the taxable income/ loss for the year using applicable
tax rates for the relevant period, and any adjustment to
taxes in respect of previous years. Interest expenses and
penalties, if any, related to income tax are included in
finance cost and other expenses respectively. Interest
Income, if any, related to Income tax is included in
Other Income.
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.
Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the period in
which the liability is settled or the asset realised, based
on tax rates (and tax laws) that have been enacted or
substantively enacted by the balance sheet date. The
measurement of deferred tax liabilities and assets reflects
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