Amal Ltd 2015-16

59 Notes to the Financial Statements represented by creation of separate funds and is used to meet the liability as and when it accrues for payment in future. Actuarial gains | losses are immediately taken to the Statement of Profit and Loss. Long-term leave encashment: Long-term leave encashment is provided for based on actuarial valuation on project unit credit method carried by an actuary as at the end of the year. Actuarial gains | losses are immediately taken to the Statement of Profit and Loss. iii. Short-term employee benefits: Short-term leave encashment is provided at undiscounted amount during the accounting period based on service rendered by employees. iv. Voluntary retirements: Compensation payable under the Voluntary Retirement Scheme is being charged to the Statement of Profit and Loss. 14. Taxation: i. Income tax expense comprises current tax and deferred tax charge or credit. Provision for current tax is made on the basis of the assessable income at the tax rate applicable to the relevant assessment year. ii. The company is declared sick under Section 17(1) of SICA (Special Provisions), 1985 and hence the MAT under Section 115JB of the Income Tax Act, 1961 is not applicable. iii. Deferred tax asset and deferred tax liability are calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets on account of timing differences are recognised, only to the extent there is a reasonable certainty of its realization. Deferred tax assets are reviewed at each Balance Sheet date to reassure realisation. 15. Earnings per share: The Company reports basic and diluted Earnings per share (EPS) in accordance with Accounting Standard 20 on ‘Earnings per share’. Basic EPS are computed by dividing the net profit or loss for the period by the weighted average number of Equity shares outstanding during the period. Diluted EPS is computed by dividing the net profit or loss for the period by the weighted average number of Equity shares outstanding during the period adjusted for the effects of all diluted potential Equity shares except where the results are anti-dilutive. ( ` 000) Note 2 Share capital As at March 31, 2016 As at March 31, 2015 Authorised 1,50,00,000 (1,50,00,000) Equity shares of ` 10 each 1,50,000 1,50,000 1,00,00,000 (1,00,00,000) 0% Redeemable and Non Convertible Preference shares of ` 10 each 1,00,000 1,00,000 Issued, Subscribed and fully paid up 70,25,000 (70,25,000) Equity shares of ` 10 each 70,250 70,250 1,00,00,000 (1,00,00,000) 0% Redeemable and Non Convertible Preference shares of ` 10 each 1,00,000 1,00,000 1,70,250 1,70,250 Note 1 Significant Accounting Policies (continued)