Page 194 - Kolte Patil AR 2019-20

Notes forming part of the Consolidated Financial Statements

R. Earnings Per Share:
The group 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
S. Taxes on income:
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 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 simultaneous.
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.

Deferred tax liability (DTL) is not recognised on the accumulated undistributed profits of the subsidiary company in the consolidated
financial statements of the Group, if it is determined that such accumulated undistributed profits will not be distributed in the
foreseeable future. When it is probable that the accumulated undistributed profits will be distributed in the foreseeable future, then
DTL on accumulated undistributed profits of the subsidiary company is recognised in the consolidated statement of profit and loss of
the Group.
In cases, where the DDT paid by subsidiary on distribution of its accumulated undistributed profits is not allowed as a set off against
the Company’s own DDT liability, then the amount of such DDT is recognised in the consolidated statement of profit and loss.
Current and deferred tax for the year:
Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive
income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly
in equity respectively.

T. Impairment:
i. Financial assets (other than at fair value)
Assessement is done 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. Lifetime expected losses are recognized for
all contract assets and/or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected

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