| Disclosure of accounting policies, change in accounting policies and changes in estimates explanatory | Segment accounting policies | | The Company brpares its segment information in conformity with the accounting policies adopted for brparing and brsenting the financial statements of the Company as a whole. | | | o. Earnings Per Share | | Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting brference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the year. | | | For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares. | | | p. Provisions | | A provision is recognised when the Company has a brsent obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their brsent value and are determined based on the best estimate of the amount required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. | | | Where the Company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is brsented in the statement of profit and loss net of any reimbursement. | | | q. Deferred Revenue expenditure/Unamortised expenditure | | Costs incurred in raising funds are amortised equally over the period for which the borrowings are acquired. | | | r. Contingent Liabilities | | A contingent liability is a possible obligation that may arise as a result of past events whose existence may be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a brsent obligation that is not recognised because it is not probable that an outflow 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 recognised because it cannot be measured reliably. The Company does not recognise a contingent liability but discloses its existence in the financial statements. | | s. Cash and Cash equivalents | | Cash and cash equivalents for the purposes of the cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less. | | | t. Research and development | | Revenue expenditure on research and development is charged to revenue in the year in which it is incurred. Capital expenditure on research and development is added to fixed assets and debrciated in accordance with the policies of the Company. | | | u. Measurement of EBITDA | | As permitted by the Guidance Note on the Revised Schedule VI to the Companies Act, 1956, the Company has elected to brsent earnings before interest, tax, debrciation and amortisation (EBITDA) as a separate line item on the face of the statement of profit and loss. The Company measures EBITDA on the basis of profit/ (loss) from continuing operations. In its measurement, the Company does not include debrciation and amortisation expense, finance costs and tax expense. |
Disclosure of employee benefits explanatory| 28. | Gratuity | | | | | | | | | | | | | Defined Benefit Plans | | | | | | | | | | | | | The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to a gratuity on departure at 15 days salary for each completed year of service. The Scheme is funded with SBI Life Insurance Company Limited. The following tables summarise net benefit expenses recognised in the statement of profit and loss, the status of funding and the amount recognised in the Balance sheet for the gratuity plan: | | | | | | | | | | | | | | | | | | | | | | March 31, 2014 | | March 31, 2013 | | | Profit and Loss account | | | | | | | | | | | | i. Net employee benefit expense (recognised in Employee benefits expenses) | | | | | | | Current service cost | | | | | | | | 4.05 | | 2.85 | | | Interest cost | | | | | | | | 2.54 | | 1.63 | | | Expected return on plan assets | | | | | | | (0.25) | | - | | | Net actuarial( gain) / loss recognised in the year | | | | | | 6.40 | | 10.45 | | | Benefits paid | | | | | | | | - | | - | | | Net employee benefit expenses | | | | | | | 12.74 | | 14.93 | | | Actual return on plan asset | | | | | | | (0.25) | | - | | | | | | | | | | | | | | | | Amount recognised in the Balance Sheet | | | | | | | | | | | Defined benefit obligation | | | | | | | 43.68 | | 33.34 | | | Fair value of plan assets | | | | | | | 1.25 | | 1.79 | | | | | | | | | | | 42.43 | | 31.55 | | | | | | | | | | | | | | | | Changes in the brsent value of the defined benefit obligation | | | | | | | | | Opening defined benefit obligation | | | | | | | 33.34 | | 20.37 | | | Current service cost | | | | | | | | 4.05 | | 2.85 | | | Interest cost | | | | | | | | 2.54 | | 1.63 | | | Benefits paid | | | | | | | | (0.96) | | (1.96) | | | Transfer on account of slump sale | | | | | | | (1.69) | | - | | | Actuarial (gains) / losses on obligation | | | | | | | 6.40 | | 10.45 | | | Closing defined benefit obligation | | | | | | | 43.68 | | 33.34 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Change in the fair value of plan assets | | | | | | | | | | | | Opening fair value of plan assets | | | | | | | 1.79 | | 0.93 | | | Expected return on plan assets | | | | | | | 0.25 | | - | | | Contributions | | | | | | | | - | | 2.00 | | | Benefits paid | | | | | | | | (0.79) | | (1.14) | | | Actuarial gain/(loss) on plan assets | | | | | | | - | | - | | | Closing fair value of plan assets | | | | | | | 1.25 | | 1.79 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | The Company expects to contribute Rs 5.00 to the gratuity fund in the year 2014-15 against the short term liability of Rs. 3.10 as per the actuarial valuation. | | | The major categories of plan assets as a percentage of the fair value of total plan assets are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2014 | | March 31, 2013 | | | Investments with insurer | | | | | | | 100.0% | | 100.0% | | | | | | | | | | | | | | | | The overall expected rate of return on assets is determined based on the actual rate of return during the current year. | | | | | The principal assumptions used in determining gratuity for the Company’s plans are shown below: | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2014 | | March 31, 2013 | | | | | | | | | | | | | | | | Discount rate | | | | | | | | 8.00% | | 8.00% | | | Expected rate of return on assets | | | | | | | 8.50% | | 8.50% | | | Salary rise | | | | | | | | 15.00% | | 15.00% | | | Attrition Rate | | | | | | | | | | | | | Pharmaceuticals | | | | | | | | 12.00% | | 12.00% | | | Infosystems | | | | | | | | 15.00% | | 15.00% | | | | | | | | | | | | | | | | The estimates of future salary increases, considered in the actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. | | | Defined Contribution Plan | | | | | | | | | | | | | | | | | | | | March 31, 2014 | | March 31, 2013 | | | Contribution to Provident Fund | | | | | | | 40.18 | | 29.23 | | | Contribution to Superannuation Fund | | | | | | | 3.87 | | 4.22 |
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