 

 

 

 

 

 

 

Class of Assets Estimated useful life
Computers & Accessories 3 years

Office equipment 5 years

Premises 30 years

Furniture and fittings 10 years

Vehicle 8 years

 

 

 

Leasehold Improvements: Improvements to leasehold premises are amortised over the primary period of lease or estimated
useful life, whichever is lower.

Intangible Assets: Intangible Assets acquired separately are measured on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.
Intangible assets such as software are amortized over a period of 36 months or license period whichever is lower on a straight-
line basis with zero residual value.

Leases

Operating Lease: Leases, where the lessor effectively retains substantially all the risks and benefits of ownership for the leased
term are classified as operating leases in accordance with Accounting Standard 19, Leases. The office premises are generally
rented on cancellable terms or renewable at the option of both the parties. Computers and tablets are rented on operating lease.

Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal
/ external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.
The recoverable amount is the greater of the asset’s net selling price and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of
the time value of money and risks specific to the asset.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.
Taxation

Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax
authorities in accordance with the Income Tax Act, 1961 enacted in India. Deferred taxes reflect the impact of current year
timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier
years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.
Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will
be available against which such deferred tax assets can be realised. In situations where we have unabsorbed depreciation or
carry forward tax losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence
that they can be realised against future taxable profits.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. We write-down the carrying amount of a
deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient
future taxable income will be available against which deferred tax asset can be realised.

Earnings Per Share

Basic and diluted earnings per share are computed in accordance with Accounting Standard 20 — Earnings per share. Basic
earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the period.

Diluted earnings per equity share reflect the potential dilution that could occur if securities or other contracts to issue equity
shares were exercised or converted to equity during the year. Diluted earnings per equity share are computed using the weighted
average number of equity shares and potential dilutive equity shares outstanding during the period except where the results are
anti-dilutive.

Provisions, contingent liabilities and contingent assets

In accordance with AS 29, Provision, Contingent liabilities and Contingent Assets, the provision is recognised when we have
a present obligation as a result of past event, where it is probable that an outflow of resources will be required to settle the

316
