Annual Report 2016-17

Notes forming part of consolidated onancial statements (Contd.)

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(v) Segment accounting policies

The Group prepares its segment information in conformity with accounting policies adopted for preparing and

presenting the onancial statements of the Group as a whole.

(p) Earnings per share (EPS)

Basic earnings per share are calculated by dividing the net proot for the year attributable to equity shareholders

by the weighted average number of equity shares outstanding during the year. The weighted average number of

equity shares outstanding during the reporting period is adjusted for events such as bonus issue, bonus element

in a rights issue, share split, and reverse share split (consolidation of shares), if any occurred during the reporting

period, that have changed the number of equity shares outstanding, without a corresponding change in resources.

Further, the weighted average number of equity shares used in computing the basic earnings per share is reduced

by the shares held by PSP/ ESOP Management Trust at the balance sheet date, which were obtained by subscription

to the shares from onance provided by the Group.

For the purpose of calculating diluted earnings per share, the net proot for the year attributable to the equity

shareholders and the weighted average number of equity shares outstanding during the year, are adjusted for the

effects of all dilutive potential equity shares.

The number of shares and potential dilutive equity shares are adjusted retrospectively for all periods presented

for any bonus shares issues including for changes effected prior to the approval of the onancial statements by the

Board of Directors.

(q) Provisions

A provision is recognized when the Group has a present obligation as a result of past event; it is probable that an

outpow of resources embodying economic beneots will be required to settle the obligation, in respect of which

a reliable estimate can be made. Provisions are determined based on the best estimate required to settle the

obligation at the reporting date. If the effect of time value of money is material, provisions are discounted using

a current pre-tax rate that repects the risks specioc to the liability. These estimates are reviewed at each balance

sheet date and adjusted to repect the current best estimates.

(r) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be conormed by the

occurrence or non-occurrence of one or more uncertain future events beyond the control of the Group or a present

obligation that is not recognized because it is not probable that an outpow of resources will be required to settle

the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be

recognized because it cannot be measured reliably.

(s) Cash and cash equivalents

Cash and cash equivalents in the cash pow statement comprises of cash at bank, cash in hand and short term

deposits with an original maturity period of three months or less.

(t) Employee stock compensation expenses

Employees of the Group receive remuneration in the form of share based payment transactions, whereby employees

render services as consideration for equity instruments granted (equity-settled transactions).

In accordance with Ind AS 102 – “Share Based Payments”, the cost of equity-settled transactions is determined

by the fair value of the options at the date of the grant and recognized as employee compensation cost over the

vesting period. The cumulative expense recognized for equity-settled transactions at each reporting date until

the vesting date repects the extent to which the vesting period has expired and the Group’s best estimate of the

number of equity instruments that will ultimately vest.