Page 139 - Kolte Patil AR 2019-20
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Notes forming part of the standalone financial statements

            O.   Earnings Per Share:
                The Company reports basic and diluted earnings per share in accordance with Ind AS - 33 on ‘Earnings per Share’. Basic earnings per share
                is computed by dividing the net profit or loss for the year by the weighted average number of Equity shares outstanding during the year.
                Diluted earnings per share is computed by dividing the net profit or loss for the year by the weighted average number of equity shares
                outstanding during the year as adjusted for the effects of all diluted potential equity shares except where the results are anti- dilutive.
            P.   Current and Deferred Taxes:
                Current Tax:

                Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax
                rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current tax
                relating to items recognised outside Statement of Profit and Loss is recognised outside Statement of Profit and Loss (either in Other
                Comprehensive Income (OCI) or in Equity). Current tax items are recognised in correlation to the underlying transaction either in OCI
                or directly in Equity.
                Deferred Tax:
                Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts
                in the financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill.
                Deferred tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business
                combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss).
                Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting
                period and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.
                Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future
                taxable amounts will be available to utilise those temporary differences and losses.
                Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset when the deferred tax balances relate to
                the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and
                intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
                Current tax and deferred tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in
                other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in
                equity, respectively.
            Q.   Impairment:
                i.  Financial assets (other than at fair value):

                   The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired.
                     Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Company recognizes lifetime expected
                   losses for all contract assets and / or all trade receivables that do not constitute a financing transaction. For all other financial assets,
                   expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life
                   time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.
                ii.  Non-financial assets:

                   Property, Plant & Equipment and Intangible assets (PPE&IA):
                   At each Balance Sheet date, the Company reviews the carrying amounts of its PPE&IA to determine whether there is any indication
                   that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to
                   determine the extent of impairment loss. Recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. In
                   assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted
                   to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and the risks
                   specific to the asset. Reversal of impairment loss is recognised as income in the Statement of Profit and Loss as and when they arise.

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