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Notes forming part of onancial statements (Contd.)
Annual Report 2016-17
•
293
Note 6
Under Indian GAAP, the Employee stock compensation expenses are recognized at the intrinsic value as on the date of
grant. Further, the Employee stock compensation expenses related to employees of subsidiaries are recognized in the
books of holding company only. Under Ind AS, the Employee stock compensation expenses are recognized at the fair
value as on the date of grant and the Employee stock compensation expenses related to employees of subsidiaries are
recognized in the books of respective subsidiary companies. The fair valuation is made for the shares not vested as on
March 31, 2015. The net impact arising on these adjustments is summarized below:
(In
`
Million)
Particulars
1-Apr-15 YE 31-Mar-16
Statement of proot and loss
Employee beneot expenses
-
16.08
Balance sheet
Other current onancial assets - Advance to related parties
12.92
13.50
Employees share options outstanding account
74.29
75.75
Adjustment to retained earnings
(61.37)
-
Further, following reclassiocations related to current assets have been made to other current onancial assets as per Ind
AS compliant format of the onancial statements:
(In
`
Million)
Particulars
1-Apr-15 31-Mar-16 Old schedule name
/oan to related parties
(312.40)
- Short term loans and advances
Advances recoverable in cash or kind or for value to be received (78.85)
(259.11) Short term loans and advances
VAT receivable (net)
(47.68)
(52.50) Short term loans and advances
Service tax receivable (net)
(57.60)
(128.71) Short term loans and advances
Deposits - Short term loans and advances
(7.80)
(5.78) Short term loans and advances
Forward contracts receivable
107.32 164.40 Other current assets
Unbilled revenue
275.68 516.40 Other current assets
Total
(121.33)
234.70
Note 7
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. Further, deferred tax in respect of cash pow hedges is recognised under other
comprehensive income. The impact arising on this change on deferred tax is summarized as follows:
(In
`
Million)
Particulars
1-Apr-15 YE 31-Mar-16
Statement of proot and loss
Deferred tax charge / (credit)
-
(4.90)
Other comprehensive income
Deferred tax charge / (credit)
-
48.42
Balance sheet
Deferred tax asset / (liability)
(70.99)
(114.51)
Adjustment to retained earnings
70.99
-
Further, the tax effects of the items presented in other comprehensive income amounting to
`
30.77 million for the
year ended March 31, 2016 have been reclassioed to other comprehensive income from the statement of proot and loss.