Annual Report 2016-17

Notes forming part of consolidated onancial statements (Contd.)

Annual Report 2016-17

•

223

Notes

Note 1

Under Indian GAAP, the expenditure and corresponding liability for escalation of lease rent during non-cancellable

lease period is required to be considered and total lease rent payable during non-cancellable lease period is recognized

on straight line basis over the non-cancellable lease period. Under Ind AS, this additional expenses and corresponding

liability on lease escalation is not required to be recognized if such escalation represents normal inpation in the

economy. Accordingly, the excess expenses and corresponding lease escalation liability is reversed. The impact arising

on this change is summarized as follows:

(In

Million)

Particulars

1-Apr-15 YE 31-Mar-16

Consolidated statement of proot and loss

Other expenses - Rent

(19.97)

Consolidated balance sheet

Trade payables

(31.73)

(51.70)

Adjustment to retained earnings

31.73

Note 2

Under Indian GAAP, a liability is recognized in respect of proposed dividend on Company’s equity shares, even though

the dividend is expected to be approved by the shareholders subsequent to reporting date. Under Ind AS, the liability for

dividend is recognized only when it is approved by the shareholders. The impact arising on this change is summarized

as follows:

(In

Million)

Particulars

1-Apr-15 YE 31-Mar-16

Consolidated balance sheet

Short-term provisions - Dividend payable and tax thereon

(481.43)

Adjustment to retained earnings

481.43

Financial liabilities of

535.01 million as at April 1, 2015 and of

534.63 million as at March 31, 2016 have been reclassioed

from other current liabilities to other current onancial liabilities in accordance with Ind AS compliant Schedule III.

Note 3

Under Indian GAAP, in case of acquisitions, the difference between the value of net consideration and the value of net

assets acquired is recognized as goodwill / capital reserve on consolidation. Under Ind AS, all identioable intangible

assets are recognized at their fair values separately from goodwill arising out of business combinations. The impact

arising on this change is summarized as follows:

(In

Million)

Particulars

1-Apr-15 YE 31-Mar-16

Consolidated statement of proot and loss

Depreciation and amortization expense

25.49

Consolidated balance sheet

Goodwill on consolidation

(248.13)

Goodwill

77.87

Intangible assets (net of amortization)

144.77

Note 4

Under Indian GAAP, the long-term investments (investments in equity shares and mutual funds) are stated at cost as

reduced by the permanent diminution in value of investment, if any. The short-term investments (current portion of

mutual funds) are stated at lower of cost and market value. Under Ind As, the investments in mutual funds and equity

shares are stated at their fair values. The impact arising on this change is summarized as follows: