Previous Page  250 / 300 Next Page
Information
Show Menu
Previous Page 250 / 300 Next Page
Page Background

Notes forming part of onancial statements (Contd.)

250

Annual Report 2016-17

(n) Provisions

A provision is recognized when the Company 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.

(o) 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 Company 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.

(p) 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.

(q) Employee stock compensation expenses

Employees of the Company 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 Company’s best estimate of the

number of equity instruments that will ultimately vest.

The expense or credit recognized in the statement of proot and loss for a year represents the movement in

cumulative expense recognized as at the beginning and end of that year and is recognized in employee beneots

expense. In case of the employee stock option schemes having a graded vesting schedule, each vesting tranche

having different vesting period has been considered as a separate option grant and accounted for accordingly.

Where the terms of an equity-settled transaction award are modioed, the minimum expense recognized is the

expense as if the terms had not been modioed, if the original terms of the award are met. An additional expense

is recognized for any modiocation that increases the total fair value of the share-based payment transaction, or is

otherwise beneocial to the employee as measured at the date of modiocation.

The employee stock option expenses in respect of the employees of the subsidiaries are charged to the respective

subsidiary.

4. Share capital

As at

March 31, 2017

In

`

Million

As at

March 31, 2016

In

`

Million

As at

April 1, 2015

In

`

Million

Authorized shares (No. in million)

200* (March 31, 2016: 200/April 1, 2015: 112) equity shares of

`

10 each

2,000.00

2,000.00

1,120.00

2,000.00

2,000.00

1,120.00

Issued, subscribed and fully paid-up shares (No. in million)

80 (March 31, 2016/ April 1, 2015: 80) equity shares of

`

10 each

800.00

800.00

800.00

Issued, subscribed and fully paid-up share capital

800.00

800.00

800.00

*The Company increased its authorized share capital from

`

1,120 million divided into 112 million shares of

`

10 each

to

`

2,000 million divided into 200 million shares of

`

10 each pursuant to the shareholders’ resolution passed in

the Annual General Meeting held on July 24, 2015.