Page 183 - Index

Mission-Critical Decisions, Made with Confidence.
2.19 Other Income
Grant income
Grants and subsidies are recognised at fair value
where there is reasonable assurance that the grant/
subsidy will be received and all attaching conditions
will be complied with.
Interest income
Interest income from a financial asset is recognised
when it is probable that the economic benefits will
flow to the Group and the amount of income can be
measured reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding and at
the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that
asset’s net carrying amount on initial recognition.
Dividend income
Dividend income is recognised when the Group’s right
to receive payment is established by the balance
sheet date.
Profit /(loss) on sale of current investment
Profit /(loss) on sale of current investment is accounted
when the sale is executed. On disposal of such
investments, the difference between the carrying
amount and the disposal proceeds, net of expenses, is
recognised in the statement of profit and loss.
2.20 Retirement and other employee benefits
Short term employee benefits
Short-term employee benefits are expensed as the
related service is provided. A liability is recognised
for the amount expected to be paid if the Group has
a present legal or constructive obligation to pay this
amount as a result of past service provided by the
employee and the obligation can be estimated reliably.
Defined contribution plans
The Group’s obligations for contributions to defined
contribution plans are expensed as the related service
is provided. Prepaid contributions are recognised as an
asset to the extent that a cash refund or a reduction in
future payments is available.
Defined benefit plans
The Group’s net obligation in respect of defined
benefit plans is calculated separately for each plan
by estimating the amount of future benefit that
employees have earned in the current and prior
periods, discounting that amount and deducting the
fair value of any plan assets.
The calculation of defined benefit obligations is
performed annually by a qualified actuary using the
projected unit credit method. When the calculation
results in a potential asset for the Group, the recognised
asset is limited to the present value of economic
benefits available in the form of any future refunds
from the plan or reductions in future contributions to
the plan. To calculate the present value of economic
benefits, consideration is given to any applicable
minimum funding requirements.
Remeasurement of the net defined benefit liability,
which comprise actuarial gains and losses and the
return on plan assets (excluding interest) and the
effect of the asset ceiling (if any, excluding interest), are
recognised immediately in OCI. Net interest expense
(income) on the net defined liability (asset) is computed
by applying the discount rate, used to measure the
net defined liability (asset). Net interest expense and
other expenses related to defined benefit plans are
recognised in the statement of profit and loss.
When the benefits of a plan are changed or when a plan
is curtailed, the resulting change in benefit that relates
to past service or the gain or loss on curtailment is
recognised immediately in the statement of profit
and loss. The Group recognises gains and losses on
the settlement of a defined benefit plan when the
settlement occurs.
Short term compensated absences are provided for
based on estimates. Long term compensated absences
are provided for based on actuarial valuation. The
actuarial valuation is done as per projected unit credit
method. The Group presents the leave as a current
liability in the balance sheet, to the extent it does not
have an unconditional right to defer its settlement
for twelve months after the reporting date. Where the
Group has the unconditional legal and contractual
right to defer the settlement for a period beyond twelve
months, the same is presented as non-current liability.
In respect of foreign subsidiaries retirement benefits
are governed and accrued as per local statutes
and there are no defined benefit plan. The amount
contributed to the defined contribution plan is
charged to the statement of profit and loss account
on accrual basis.
2.21 Employee stock compensation cost
The Group recognises expense relating to share based
payment in net profit using fair value in accordance
with Ind AS 102-Share Based Payment.
The grant date fair value of options granted to
employees is recognised as an employee expense, with
Annual Report 2024
181
Financial Statements