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Integrated report Statutory reportS Financial StatementS
Standalone

will be received. Government grants whose intention to realise the asset or to settle the liability
primary condition is that the Company should on a net basis.
purchase, construct or otherwise acquire non-
current assets are recognised as deferred revenue Deferred tax is the tax expected to be payable or
in the Standalone Balance Sheet and transferred recoverable on differences between the carrying
to the Standalone Statement of Profit and Loss on values of assets and liabilities in the Standalone
systematic and rational basis over the useful lives Financial Statements and the corresponding tax
of the related asset. bases used in the computation of taxable profit
and is accounted for using the Standalone Balance
2.20 Segment reporting Sheet method. Deferred tax liabilities are generally
The operating segments are the segments for recognised for all taxable temporary differences
which separate financial information is available arising between the tax base of assets and
and for which operating profit/loss amounts are liabilities and their carrying amount, except when
evaluated regularly by the Managing Director and the deferred income tax arises from the initial
Chief Executive Officer (who is the Company’s recognition of an asset or liability in a transaction
chief operating decision maker) in deciding how to that is not a business combination and affects
allocate resources and in assessing performance. neither accounting nor taxable profit or loss at
the time of the transaction. In contrast, deferred
The accounting policies adopted for segment tax assets are only recognised to the extent that
reporting are in conformity with the accounting it is probable that future taxable profits will be
policies of the Company. Segment revenue, available against which the temporary differences
segment expenses, segment assets and segment can be utilised.
liabilities have been identified to segments on
the basis of their relationship to the operating The carrying value of deferred tax assets is
activities of the segment. Inter segment revenue is reviewed at the end of each reporting period and
accounted on the basis of transactions which are reduced to the extent that it is no longer probable
primarily determined based on market / fair value that sufficient taxable profits will be available to
factors. Revenue, expenses, assets and liabilities allow all or part of the asset to be recovered.
which relate to the Company as a whole and are Deferred tax is calculated at the tax rates that are
not allocable to segments on a reasonable basis expected to apply in the period when the liability
have been included under ‘unallocated revenue / is settled or the asset is realised based on the
expenses / assets / liabilities’.
tax rates and tax laws that have been enacted or
substantially enacted by the end of the reporting
2.21 Income tax
period. The measurement of deferred tax liabilities
Tax expense for the year comprises current and and assets reflects the tax consequences that
deferred tax. The tax currently payable is based would follow from the manner in which the
on taxable profit for the year. Taxable profit differs Company expects, at the end of the reporting
from net profit as reported in the Standalone period, to cover or settle the carrying value of its
Statement of Profit and Loss because it excludes assets and liabilities.
items of income or expense that are taxable or
deductible in other years and it further excludes Deferred tax assets and liabilities are offset to the
items that are never taxable or deductible. The extent that they relate to taxes levied by the same
Company’s liability for current tax is calculated tax authority and there are legally enforceable
using tax rates and tax laws that have been rights to set off current tax assets and current tax
enacted or substantively enacted by the end of liabilities within that jurisdiction.
the reporting period.
Current and deferred tax are recognised as an
Current tax assets and current tax liabilities are expense or income in the Standalone Statement
offset when there is a legally enforceable right to of Profit and Loss, except when they relate to items
set off the recognised amounts and there is an credited or debited either in other comprehensive

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