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Annual Report 2016-17
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is mainly on account of capitalization of the consideration paid for acquisition of a product which was considered as
capital advance as at March 31, 2016.
Current Financial Assets
(In
`
Million)
Particulars
As at
March 31, 2017
As at
March 31, 2016
Investments
4,499.66
4,914.36
Trade receivables
4,753.83
4,275.49
Cash and cash equivalents
1,461.38
1,400.19
Other bank balances
48.25
38.76
/oans
14.00
9.12
Other current onancial assets
2,316.03
1,763.98
TOTAL
13,093.15
12,401.90
Current Investments
As per the Investment Policy approved by the Board of Directors, the Company invests its surplus funds in liquid and
debt schemes and o[ed maturity plans of some reputed mutual funds with a focus on capital preservation, liquidity and
optimization of returns.
Investment in mutual funds classioed under current investments stood at
`
4,499.66 Million as at March 31, 2017 as
compared to
`
4,914.36 Million as at March 31, 2016. The decrease in the balance of current investments is due to
reduction in investment in liquid mutual funds. Please refer Note 12 of the consolidated onancials for details.
Trade Receivables
Trade receivables (net of provision for doubtful debts) amounted to
`
4,753.83 Million as at March 31, 2017 as against
`
4,275.49 Million as at March 31, 2016.
The following table provides the age-wise analysis of Trade Receivables (Net of provision for doubtful debts) as on
March 31, 2017.
Particulars
As At March 31, 2017
As At March 31, 2016
`
Million
As a %
`
Million
As a %
Not Due
3,350.54
70.48% 2,968.53
69.43%
Due upto 30 days
745.16
15.67%
562.40
13.15%
Due 31 – 60 days
193.57
4.07%
259.17
6.06%
Due 61 – 90 days
178.98
3.76%
303.36
7.10%
Due 91 – 120 days
121.26
2.55%
111.62
2.61%
Due over 120 days
164.32
3.47%
70.41
1.65%
Total
4,753.83
100% 4,275.49
100%
The Company uses a provisioning policy approved by the Board of Directors to compute the e[pected credit loss
allowance for trade receivables. The policy takes into account available e[ternal and internal credit risk factors and the
Company’s historical e[perience for customers. Further, the policy provides for the provisioning of all customer invoices
which are overdue for a period of more than 180 days.
Provision for doubtful debts increased to
`
283.62 Million as at March 31, 2017 from
`
270.62 Million as at March 31, 2016.
Please refer Note 13 of the consolidated onancials for details.
Cash and cash equivalents
Cash and cash equivalents include bank balances and cash and cheques on hand. Cash and cash equivalents increased
to
`
1,461.38 Million as at March 31, 2017 from
`
1,400.19 Million as at March 31, 2016. There has been an increase in
balance in current accounts, whereas the balance in E[port Earners’ Foreign Currency accounts has reduced. Please
refer Note 14 of the consolidated onancials for details.