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Shaping the future of software driven business
Consolidated Financials •
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Exchange differences
Exchange differences arising on conversion / settlement of foreign currency monetary items and on foreign currency
liabilities relating to Property, Plant and Equipment acquisition are recognized as income or expenses in the year in which
they arise.
Translation of foreign operations
The Group presents the financial statements in INR which is the functional currency of the parent company.
The assets and liabilities of a foreign operation are translated into the reporting currency (INR) at the exchange rate
prevailing at the reporting date. Their statement of profit and loss are translated at exchange rates prevailing at the dates
of transactions or weighted average rates, where such rates approximate the exchange rate at the date of transaction.
The exchange differences arising on translation are accumulated in the foreign currency translation reserve under other
comprehensive income. On disposal of a foreign operation, the accumulated foreign currency translation reserve relating
to that foreign operation is recognized in the statement of profit and loss.
(n) Retirement and other employee benefits
(i) Provident fund
Provident fund is a defined contribution plan covering eligible employees. The Group and the eligible employees
make a monthly contribution to the provident fund maintained by the Regional Provident Fund Commissioner equal
to the specified percentage of the basic salary of the eligible employees as per the scheme. The contributions to the
provident fund are charged to the statement of profit and loss for the year when the contributions are due. The Group
has no obligation, other than the contribution payable to the provident fund.
(ii) Gratuity
Gratuity is a defined benefit obligation plan operated by the Group for its employees covered under Group Gratuity
Scheme. The cost of providing benefit under gratuity plan is determined on the basis of actuarial valuation using the
projected unit credit method at the reporting date and are charged to the statement of profit and loss, except for
the remeasurements, comprising of actuarial gains and losses which are recognized in full in the statement of other
comprehensive income in the reporting period in which they occur. Remeasurements are not reclassified to profit and
loss subsequently.
(iii) Superannuation
Superannuation is a defined contribution plan covering eligible employees. The contribution to the superannuation
fund managed by the insurer is equal to the specified percentage of the basic salary of the eligible employees as per
the scheme. The contribution to this scheme is charged to the statement of profit and loss on an accrual basis. There
are no other contributions payable other than contribution payable to the respective fund.
(iv) Leave encashment
Accumulated leave, which is expected to be utilized within the next twelve months, is treated as short-term employee
benefit. The Group measures the expected cost of such absences as the additional amount that it expects to pay as
a result of the unused entitlement that has accumulated at the reporting date.
The Group treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee
benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial
valuation using the projected unit credit method at the reporting date. Remeasurements, comprising of actuarial
gains and losses are recognized in full in the statement of profit and loss. Expense on non-accumulating compensated
absences is recognized in the period in which the absences occur.
The Group presents the entire leave encashment liability as a current liability in the balance sheet, since it does not
have an unconditional right to defer its settlement for twelve months after the reporting date.
(v) Long service awards
Long service awards are other long term benefits to all eligible employees, as per Group’s policy. The cost of providing
benefit under long service awards scheme is determined on the basis of actuarial valuation using the projected unit
credit method at the reporting date. Remeasurements, comprising of actuarial gains and losses are recognized in full
in the statement of profit and loss.
Notes forming part of consolidated financial statements (Contd.)