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Notes on the standalone financial statements
for the year ended 31 March 2017
charges are recognised in finance costs in the statement of profit and loss. Contingent rentals are recognised as expenses
in the periods in which they are incurred.
A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company
will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of
the asset and the lease term.
Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis over the
lease term however, rent expenses shall not be straight-lined, if escalation in rentals is in line with expected inflationary
cost.
n. Provisions, Contingent liabilities and Contingent assets
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past events
and 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.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of
time is recognised as a finance cost.
Contingent liability is disclosed in the case of:
• a present obligation arising from past events, when it is not probable that an outflow of resources will be required to
settle the obligation;
• a present obligation arising from past events, when no reliable estimate is possible
Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.
o. Earnings per share
Basic earnings per equity share is computed by dividing the net profit after tax attributable to the equity shareholders by
the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share is computed
by dividing adjusted net profit after tax by the aggregate of weighted average number of equity shares and dilutive
potential equity shares during the year.
p. Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand, cheques on hand and short-term
deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as
defined above.
q. Fair value measurement
The Company measures financial instruments such as derivatives and certain investments, at fair value at each balance
sheet date.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the
fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement
as a whole:
• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable