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Annual Report 2016-17
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Hedge accounting is discontinued when the hedging instrument e[pires or is sold, or terminated, or e[ercised, or no
longer qualioes for hedge accounting. Any cumulative gain or loss on the hedging instrument recognized under other
comprehensive income is transferred to the statement of proot and loss when the forecasted transaction occurs or
affects proot or loss or when a hedged transaction is no longer e[pected to occur.
Accordingly, the Hedge Reserve (net of ta[ effects) as at March 31, 2017 stood at a credit balance of
`
208.44 Million as
against a credit balance of
`
91.49 Million as at March 31, 2016. Please refer “Other Equity” under Statement of Changes
in Equity in the consolidated onancials for details.
Exchange differences on translating the onancial statements of foreign operations
:hile consolidating the onancial statements of subsidiaries (including step down subsidiaries) with the onancial
statements of the holding company, the assets / liabilities are stated in Indian Rupees by applying the closing e[change
rates and income / e[penditure are stated in Indian Rupees by applying the average e[change rates. This creates
e[change gain / loss on consolidation which is accumulated under foreign currency translation reserve.
The balance in the foreign currency translation reserve was
`
73.65 Million as at March 31, 2017 as against
`
184.13
Million as at March 31, 2016, due to a translation loss of
`
110.48 Million on account of volatility in e[change rates
of currencies in the onancial year 2016-17. Please refer “Other Equity” under Statement of Changes in Equity in the
consolidated onancials for details.
Non-current assets (other than non-current onancial assets)
The Non-current assets (other than non-current onancial assets) as at March 31, 2017 stood at
`
5,649.24 Million as
against
`
4,636.50 Million. The details are as below:
(In
`
Million)
Particulars
As at
March 31, 2017
As at
March 31, 2016
Property, Plant and Equipment
2,768.36
2,968.21
Capital work-in-progress
48.47
23.64
Goodwill
76.23
77.87
Other Intangible assets
2,515.05
1,325.15
Intangible assets under development
241.13
241.63
TOTAL
5,649.24
4,636.50
Property, Plant and Equipment
The gross block of Property, Plant and Equipment amounted to
`
7,036.25 Million as at March 31, 2017 as against
`
6,813.80 Million as at March 31, 2016. The net increase of
`
222.45 Million is primarily on account of additional
computers / hardware procured for the growing business needs and procurement of furniture and o[tures for the new
ofoces of the Company mainly in the United States of America and Canada. During the year ended March 31, 2017, the
Company disposed off and retired the tangible assets having original cost of
`
84.38 Million and written down value of
`
4.99 Million. Please refer Note 6.1 of the consolidated onancials for details.
Capital work-in-progress
Capital work-in-progress (Capital :IP) stood at
`
48.47 Million as at March 31, 2017 as against
`
23.64 Million as at
March 31, 2016. The increase in Capital :IP is mainly on account of building construction work in progress at Goa
location and other capital e[penditure incurred at Nagpur location.
Goodwill
Goodwill represents the cost of business acquisition in e[cess of the Company’s interest in the net fair value of identioable
assets, liabilities and contingent liabilities of the acquired company. The Goodwill as at March 31, 2017 was
`
76.23 Million
as against
`
77.87 Million as at March 31, 2016. The reduction in Goodwill is on account of appreciation of Indian Rupee
in relation to U.S. Dollar. Please refer Note 6.2 of the consolidated onancials for details.