Mandatory Accounting Standards (Ind AS)-2

|555| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards (g) Effect of Ind AS adoption on Statement of Cash Flow for the year ended March 31, 2016 ` crore Particulars Note I-GAAP Ind AS Adjustments Ind AS Net Cash flows from operating activities A (3233.91) (5.68) (3239.59) Net Cash flows from investing activities A (4964.54) 337.98 (4626.56) Net Cash flows from financing activities A 7488.47 (235.77) 7252.70 Net increase/(decrease) in cash and cash equivalents (709.98) 96.53 (613.45) Cash and cash equivalents as at April 1, 2015 4763.73 (360.77) 4402.96 Cash and cash equivalents as at March 31, 2016 4053.75 (264.24) 3789.51 Notes: A. Some of the entities have been classified as joint ventures under Ind AS 111 based on the nature of the control exercised by the Parent Company. Accordingly, the share in net profit/loss of joint ventures is recognised in the consolidated Statement of Profit and Loss and share in the net assets is included under investment in joint ventures/associates in the consolidated Balance Sheet as per equity method. Under I-GAAP, the financials of these entities were consolidated line by line. B. Pursuant to Ind AS requirements, investment property is presented separately. Under I-GAAP the same was presented as part of tangible assets. Tangible assets have been now divided into two categories under Ind AS viz property plant & equipment and Investment Property. C. In accordance with Ind AS 105, group(s) of assets classified as held for sale and liabilities associated with such group(s) is presented separately. Under I-GAAP there was no such requirement. D. Under Ind AS 23, borrowing cost is calculated following effective interest rate (EIR) method as described under Ind AS 109. Under I-GAAP borrowing cost was computed by applying the coupon rate to the principal amount for the period with consequential impact in the asset items where borrowing cost is capitalised/inventorised. Borrowings are recognised at fair value at the inception and subsequently at amortised cost with interest recognised based on EIR method. E. Investments except investments in group companies have been fair valued in accordance with Ind AS 109. Other investments are fair valued through profit and loss. Under I-GAAP the current investments were carried at cost net of diminution in their value as on the Balance Sheet date. The long term investments were carried at cost net of diminution, other than temporary in nature, if any. F. Under Ind AS financial assets and liabilities are measured at fair value at the inception and subsequently at amortised cost or at fair value based on their classification. Under I-GAAP the financial assets and liabilities were measured at cost net of allowance. G. Deferred tax under Ind AS has been recognised for temporary differences between tax base and the book base of the relevant assets and liabilities. Under I-GAAP the deferred tax was accounted based on timing differences impacting the profit or loss for the period. H. The provision is made against trade receivables/loans based on “expected credit loss” model as per Ind AS 109. Under I-GAAP the provision was made when the receivable/loan turned doubtful/non performing asset based on the assessment on case to case basis and applicable regulations. I. ESOP charge is accounted using fair value method. Under I-GAAP, ESOP charge was calculated based on intrinsic value method. J. Pursuant to Ind AS 32, Foreign Currency Convertible Bonds (FCCB) issued by the Parent Company is split into equity and liability component and presented accordingly. The measurement of liability component is done at fair value at the inception and subsequently at amortised cost. Under I-GAAP, FCCB was accounted at cost and presented as borrowing.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |556| K. Provision is made under Ind AS towards constructive obligations of the Group related to payment of performance linked rewards to the employees and tax on ESOP benefits, wherever applicable. Under I-GAAP the cost was recognised on actual payments. L. Under Ind AS, the final dividend including related tax is recognised in the period in which the obligation to pay is established on its approval, post reporting of financial statements. Under I-GAAP, a provision was required to be made in the financial statements for the proposed final dividend in the period to which the liability related. M. Change in fair value of derivative instrument taken to hedge off-balance sheet item is accounted in the hedge reserve. Under I-GAAP the premium on these derivative instrument was recognised on accrual basis in the Statement of Profit and Loss under the respective line items to which the hedges related. N. Past service cost arising out of modifications in the post-retirement benefits is recognised in the Statement of Profit and Loss pursuant to Ind AS 19. Under I-GAAP the past service was amortised over a period. O. Actuarial gains and losses pertaining to defined benefit obligations and re-measurement pertaining to return on plan assets are recognised in OCI in accordance with Ind AS 19 and are not reclassified to the Statement of Profit and Loss. Further, there are certain other items (as presented in OCI) that are accounted in OCI and subsequently reclassified to Profit and Loss in accordance with Ind AS requirements. P. Preference Share Capital has been classified as financial liability as per Ind AS 32. The preference shares issued outside the group, were recognised as minority interests under I-GAAP. The minority interest is called non-controlling interest under Ind AS. Q. Goodwill attributable to Cash Generating Units (CGUs) disposed of has been written down as per Ind AS 36. Under I-GAAP the same was measured at the portfolio level and was not being written down for disposal of CGUs within the overall portfolio. R. Additional construction services revenue recognised for service concession arrangement as per Ind AS 11 for Design-Build-Finance- Operate-Transfer (DBFOT) contracts with corresponding recognition of construction cost. S. Impact of consolidation of a Trust Fund as per Ind AS 110. T. With respect of clarification dated May 15, 2017 issued by Ind AS Transition Facilitation Group, deferred tax liability has been provided by Parent Company if it is probable that the accumulated undistributed profits will be distributed in foreseeable future from subsidiary company. U. Part stake divestment in a subsidiary which does not result in ceding of control, is accounted as transaction between Parent Company and the non-controlling interest under Ind AS. Accordingly the gain or loss on part stake sale is recognised directly under equity and not accounted through the Statement of Profit and Loss. V. As per Ind AS 12, unused tax credits like MAT Credit entitlement is considered as Deferred Tax. W. The previous year I-GAAP figures have been reclassified/regrouped to make them comparable with Ind AS presentation. 10. OBEROI HOTELS AND RESORTS LIMITED FIRST-TIME ADOPTION OF IND AS Transition to Ind AS These are the group’s first consolidated financial statements prepared in accordance with Ind AS. The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended 31 March 2017, the comparative information presented in these financial statements for the

|557| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards year ended March 31, 2016 and in the preparation of an opening Ind AS balance sheet at 1 April 2015 (the Group’s date of transition). In preparing its opening Ind AS balance sheet, the group has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS. A.1 Ind AS optional exemptions (a) Deemed cost of property, plant & equipment and intangible assets Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption is also used for intangible assets covered by Ind AS 38, Intangible Assets. Accordingly, the Group has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value, which has been considered as deemed cost. (b) Business Combinations Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application of Ind AS 103, which would require restatement of all business combinations occurred prior to the transition date. If the entity restates any business combinations that occurred before the date of transition, then it restates all later business combinations and also applies the Ind AS 110, Consolidated Financial Statements from the same date. The Group has decided to apply this exemption at the transition date. Accordingly, business combination occurred prior to the transition date has not been restated by the Group. (c) Cumulative Translation Difference Ind AS 101 permits cumulative translation gains and losses to be reset to zero at the transition date. This provides relief from determining cumulative currency translation differences in accordance with Ind AS 21 from the date a subsidiary or equity method investee was formed or acquired. The Group has elected to reset all cumulative translation gains and losses to zero by transferring it to retained earnings at its transition date, i.e., April 1, 2015. (d) Classification and measurement of lease Land In accordance with Ind AS 101, when a lease includes both land and building elements, a first time adopter may assess the classification of each element as finance or an operating lease at the date of transition to Ind AS on the basis of the facts and circumstances existing as at the date of transition. Accordingly, applying the same exemption, the Group has classified its land leases into finance lease and operating lease on the basis of the facts and circumstances existing as at the date of transition. A.2 Ind AS mandatory exceptions (a) Estimates Estimates made under Ind AS as at April 1, 2015 are consistent with the estimates as under previous GAAP. (b) Non-controlling interest Ind AS 110 requires that an entity shall attribute the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit (negative) balance. However, Ind AS 101 requires that such requirement should be applied prospectively from the date of transition to Ind ASs. Accordingly, the group has applied above mentioned requirements of Ind AS 110 prospectively from the date of transition.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |558| (c) Changes in the proportion held by non-controlling interests Ind AS 110 requires that when the proportion of the equity held by non-controlling interests changes, an entity shall adjust the carrying amounts of the controlling and non-controlling interests to reflect the changes in their relative interests in the subsidiary and any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received should be recognised directly in equity. However, Ind AS 101 requires that such requirement should be applied prospectively from the date of transition to Ind ASs. Accordingly, the group has applied above mentioned requirements of Ind AS 110 prospectively from the date of transition. (d) Loss of control of subsidiary Under Ind AS 110, if a parent loses control of a subsidiary, it should derecognise the assets (including any goodwill) and liabilities of the subsidiary at their carrying amounts and carrying amount of any noncontrolling interests in the former subsidiary at the date when control is lost (including any components of other comprehensive income attributable to them) and should recognize the fair value of the consideration received, if any, and any investment retained in the former subsidiary at its fair value at the date when control is lost. Further any resulting difference should be recognised as gain or loss in profit or loss attributable to the parent. However, Ind AS 101 requires that such requirement should be applied prospectively from the date of transition to Ind ASs. Accordingly, the group has applied above mentioned requirements of Ind AS 110 prospectively from the date of transition. (e) Classification and measurement of financial assets Ind AS 101 requires that an entity should assess the classification of its financial assets on the basis of facts and circumstances exist on the date of transition. Accordingly, in its Opening Ind AS Balance Sheet, the group has classified all the financial assets on basis of facts and circumstances existed on the date of transition, i.e., April 1, 2015. a) Reconciliation of total equity as at March 31, 2016 and April 1, 2015 Rupees Million Notes As at March 31, 2016 As at April 1, 2015 Total equity (shareholder’s funds) as per previous GAAP 27,323.21 26,876.90 Adjustments Deferred revenue on Customer Loyalty Programme i 89.25 92.25 Fair valuation of equity investments ii 28.59 22.43 Fair valuation of security deposits iii (67.06) (62.35) Reclassification of leases iv (35.28) (43.71) Proposed Dividend v 62.32 777.66 Tax effects of adjustments vi (37.55) (33.33) Other GAAP adjustments vii 723.95 429.81 Total adjustments 764.22 1,182.76 Total equity as per Ind AS 28,087.43 28,059.66 b) Reconciliation of total comprehensive income for the year ended March 31, 2016 Notes Year ended March 31, 2016 Profit after tax as per previous GAAP 1,353.85 Adjustments Deferred revenue on Customer Loyalty Programme i (3.00) Fair valuation of equity investments ii 6.16 Fair valuation of security deposits iii (4.71) Reclassification of leases iv 8.48 Tax effects of adjustments vi (4.23)

|559| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards Notes Year ended March 31, 2016 Other GAAP adjustments vii 4.10 Remeasurnment of Post-employment benefit obligations (Net of Tax) viii 69.33 Total adjustments 76.13 Profit after tax as per Ind AS 1,429.98 Other comprehensive income (Net of Tax) viii Remeasurements of post-employment benefit obligation (69.33) Exchange difference on translation of foreign operations 225.64 Total other comprehensive income 156.31 Total comprehensive income as per Ind AS 1,586.29 c) Impact of Ind AS adoption on cash flow statementfor the year ended March 31, 2016 Rupees Million Previous GAAP Adjustments Ind AS Net cash flow from operating activities 2,830.26 517.58 2,312.68 Net cash flow from investing activities (1,390.63) (810.40) (580.23) Net cash flow from financing activities (1,576.24) 358.04 (1,934.28) Net increase/(decrease) in cash and cash equivalents (136.61) 65.22 (201.83) Cash and cash equivalents as at April 1, 2015 1,368.51 188.86 1,179.65 Cash and cash equivalents as at March 31, 2016 1,231.90 254.08 977.82 i. Deferred revenue on Customer Loyalty Programme The group operates multiple customer reward points program under its hotel business. The programme allows customers to accumulate points/complimentary room nights on hotel bookings. The points can be redeemed by the customers on future bookings and other services such as dinning, SPA, etc. Under the previous GAAP, the group was creating provision towards its liability under the programmes on full value without considering the estimated lapses. Under Ind AS, sales consideration received has been allocated between the hospitality services and the reward points/complimentary room nights issued. The consideration allocated to the customer reward points/complimentary room nights has been deferred and will be recognised as revenue when the reward points/complimentary room nights are redeemed or lapsed. The consideration to be allocated to the customer reward points/complimentary room nights has been determined considering the past estimated lapses on the basis of past trend. Accordingly, the group has recognised deferred revenue with corresponding adjustment to retained earnings. The provision created under previous GAAP has been reversed with a credit to retained earnings. ii. Fair valuation of equity investments The group holds investment in Equity Shares of entities other than subsidiaries, associate and joint venture. Under previous GAAP such investments were measured at cost less provision for other than temporary diminution in the value of investment. Under Ind AS, these investments has been measured at fair value. The group has categorised these investments as fair value through profit & loss (FVTPL) and any changes in fair value of those investment has been recognised in the statement of profit and loss. iii. Fair valuation of security deposit Under the previous GAAP, interest free lease security deposits assets (that are refundable in cash on completion of the contract term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognised at fair value at initial recognition and subsequently at amortised cost. Accordingly, the group has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognised as prepaid rent and recognised over the period of the security deposit. Under the previous GAAP, interest free lease security deposits liability (that are refundable in cash on completion of the contract term) are recorded at their transaction value.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |560| Under Ind AS, these financial liabilities are required to be recognised at fair value at initial recognition and subsequently at amortised cost. Accordingly, the group has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognised as advance rent and recognised over the period of the security deposit. iv. Reclassification of leases Under Previous GAAP the group has capitalised the leasehold land with the initial cost incurred to enter into the lease agreement along with the upfront payment of lease rent. Annual lease rent payment were charged to the profit or loss on annual basis. Under Ind AS, land lease has been classified into finance and operating leases depending on the terms of lease. In cases where land leases has been classified as finance lease on the basis of factors such as renewal right with the group, etc., finance lease obligations has been recognised for the future lease rent payable over the primary period of lease with corresponding impact to the retained earnings as these lands were already revalued at there fair value under previous GAAP. In cases where land leases has been classified as operating leases, carrying value of the respective leasehold land has been reclassified to prepaid rent from property, plant and equipment. v. Proposed dividend Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend included under provisions has been reversed with corresponding adjustment to retained earnings. vi. Tax effects of adjustments Additional deferred tax asset/(liability) has been recognised corresponding to the adjustments to retained earnings/profit or loss as a result of Ind AS Implementation. Also the group has created deferred tax liability on the undistributed profits of the subsidiaries, associate and joint ventures to the extent it is not able to control the timing of the reversal of temporary difference and it is expected that the temporary difference will reverse in near future. vii. Other GAAP adjustments Other GAAP adjustments include adjustments pertaining to goodwill, foreign currency monetary translation reserve account, non controlling interest, change from proportionate consolidation method to equity method, etc. viii. Remeasurements of post-employment benefit obligation Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income’ includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP. Accordingly, loss on remeasurements of post-employment benefit obligation has been reclassified to the Other Comprehensive Income for the period along with share in other comprehensive income of associate and joint ventures. Further, as required by Ind AS, exchange difference arising on translation of foreign operation has been also recognised in other comprehensive income. FROM AUDITORS’ REPORT OTHER MATTERS The comparative financial information of the Group, its associates and joint ventures for the year ended March 31, 2016 and the transition date opening balance sheet as at April 1, 2015 included in these consolidated Ind AS financial statements, are the consolidated figures of separate Ind AS financial statements of EIH Limited (holding company), its subsidiaries, its associates and joint ventures incorporated in India and outside India. Separate Ind AS financial statements of holding company, its subsidiaries, associates and

|561| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards its joint venture incorporated in India are audited by us except one subsidiary company whose separate Ind AS financial statements are audited by another auditor. Separate financial statements of nine subsidiaries and one joint venture which are incorporated outside India have been prepared in accordance with accounting principles generally accepted in their respective countries and which have been audited by other auditors under generally accepted auditing standards applicable in their respective countries. We have audited the conversion adjustments made by the Company’s management. Our opinion in so far as it relates to the balances and affairs of such subsidiaries and one joint venture located outside India is based on the report of other auditors and the conversion adjustments prepared by the management of the Company and audited by us. 11. RELIANCE INDUSTRIES LIMITED (RIL) ACCOUNTING POLICY First Time Adoption of Ind AS The Company has adopted Ind AS with effect from 1st April 2016 with comparatives being restated. Accordingly the impact of transition has been provided in the Opening Reserves as at 1st April 2015. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III. a) Exemptions from retrospective application (i) Business combination exemption The Company has applied the exemption as provided in Ind AS 101 on non-application of Ind AS 103, “Business Combinations” to business combinations consummated prior to April 1, 2015 (the “Transition Date”), pursuant to which goodwill/capital reserve arising from a business combination has been stated at the carrying amount prior to the date of transition under Indian GAAP. The Company has also applied the exemption for past business combinations to acquisitions of investments in subsidiaries/associates/joint ventures consummated prior to the Transition Date. (ii) Share-based payment transactions Ind AS 101 encourages, but does not require, first time adopters to apply Ind AS 102 Share based Payment to equity instruments that were vested before the date of transition to Ind AS. The Company has elected not to apply Ind AS 102 to options that vested prior to April 1, 2015. (iii) Fair value as deemed cost exemption The Company has elected to measure items of property, plant and equipment and intangible assets at its carrying value at the transition date except for certain class of assets which are measured at fair value as deemed cost. (iv) Cumulative translation differences The Company has elected to apply Ind AS 21 - The Effects of changes in Foreign Exchange Rate prospectively. Accordingly all cumulative gains and losses recognised are reset to zero by transferring it to retained earnings. (v) Long Term Foreign Currency Monetary Items The Company continues the policy of capitalising exchange differences arising on translation of long term foreign currency monetary items. (vi) Investments in subsidiaries, joint ventures and associates The Company has elected to measure investment in subsidiaries, joint venture and associate at cost. (vii) Decommissioning liabilities The Company has elected to apply the transitional provision with respect to recognition of Decommissioning, Restoration and Similar Liabilities.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |562| Notes: I Change in accounting policy for Oil & Gas Activity From Full cost method (FCM) to Successful Efforts Method (SEM): The impact on account of change in accounting policy from FCM to SEM is recognised in the Opening Reserves on the date of transition and consequential impact of depletion and write off’s are recognized in the Statement of Profit and Loss. Major differences impacting such change of accounting policy are in the areas of; - Expenditure on surrendered blocks, unproved wells and abandoned wells, which have been expensed under SEM. - Depletion on producing property in SEM is calculated using Proved Developed Reserve, as against Proved Reserve in FCM. II Fair valuation as deemed cost for Property, Plant and Equipment and Intangible Assets Under Development The Company and it subsidiaries have considered fair value for property, viz. land admeasuring over 33,000 acres, situated in India, with an impact of ` 51,188 crore, telecom assets with an impact of ` (11,988) crore, gas producing wells in USA Shale region with an impact of ` (6,426) crore and petrochemical assets of Recron (Malaysia) Sdn. Bhd. with an impact of ` (700) crore as on 31st March, 2016, in accordance with stipulations of Ind AS 101 with the resultant impact being accounted for in the reserves. The consequential impact on depletion and reversal of impairment are reflected in the Statement of Profit and Loss. III Fair valuation for Financial Assets The Company has valued financial assets (other than Investment in Subsidiaries, Associate and Joint Ventures which are accounted at cost), at fair value. Impact of fair value changes as on the date of transition, is recognised in the opening reserves and changes thereafter are recognised in the Statement of Profit and Loss or Other Comprehensive Income, as the case may be. IV Deferred Tax The impact of transition adjustments together with Ind AS mandate using the balance sheet approach (against profit and loss approach in the previous GAAP) for computation of deferred taxes which has resulted in charge to the Reserves, on the date of transition, with consequential impact to the Statement of Profit and Loss for the subsequent periods. V Others Other adjustments primarily comprise of : a. Attributing time value of money to Assets Retirement Obligation: Under Ind AS, such obligation is recognised and measured at present value. Under previous Indian GAAP it was recorded at cost. The impact for the periods subsequent to the date of transition is reflected in the Statement of Profit and Loss. b. Loan processing fees/transaction cost: Under Ind AS such expenditure are considered for calculating effective interest rate. The impact for the periods subsequent to the date of transition is reflected in the Statement of Profit and Loss. 12. RELIANCE INFRASTRUCTURE LIMITED FIRST-TIME ADOPTION OF IND AS Transition to Ind AS These are the Group’s first Consolidated Financial Statements prepared in accordance with Ind AS. The accounting policies set out in note 1 have been applied in preparing the Consolidated Financial Statements for the year ended March 31, 2017, the comparative information presented in these Consolidated Financial Statements for the year ended March 31, 2016 and in the preparation of an opening Ind AS balance sheet

|563| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards at April 01, 2015 (the Group’s date of transition). In preparing its opening Ind AS balance sheet, the Group has adjusted the amounts reported previously in Consolidated Financial Statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP or IGAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Group’s financial position, financial performance and cash flows is set out in the following tables and notes. A. Exemptions and exceptions availed In preparing these Ind AS Consolidated Financial Statements, the Group has availed certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the Consolidated Financial Statements as at the transition date under Ind AS and previous GAAP have been recognised directly in equity (retained earnings or another appropriate category of equity). This note explains the adjustments made by the Group in restating its previous GAAP Consolidated Financial Statements, including the Balance Sheet As at April 01, 2015 and the Consolidated Financial Statements as at and for the year ended March 31, 2016. A.1 Ind AS optional exemptions Business combinations Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date. The Group elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated. The Group has applied same exemption for investment in associates and joint ventures. Deemed cost The Group has elected to measure property, plant and equipment at fair value at the date of transition to Ind AS. Hence at the date of transition to Ind AS, an increase of ` 8,630.91 Crore was recognised in property, plant and equipment. This amount has been recognised against retained earnings. Designation of previously recognised financial instruments Ind AS 101 allows the Group to designate investments in equity instruments at FVTPL on the basis of the facts and circumstances at the date of transition to Ind AS. The Group has elected to apply this exemption for its investment in equity investments. Leases Appendix C to Ind AS 17 requires the Group to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material. The Group has elected to apply this exemption for such contracts/arrangements. Joint ventures Ind AS 101 provides an exemption for changing from proportionate consolidation to the equity method. As per the exemption, when changing from proportionate consolidation to the equity method, the Group should recognise its investment in the joint venture at transition date to Ind AS. That initial investment should be measured as the aggregate of the carrying amounts of the assets and liabilities that the Group had previously proportionately consolidated, including any goodwill arising from acquisition. The balance of the investment in joint venture at the date of transition to Ind AS, determined in accordance with the above is regarded as the deemed cost of the investment at initial recognition. The Group has elected to apply this exemption for its joint venture.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |564| Long Term Foreign Currency Monetary Items Ind AS 101 provides an exemption to account for exchange differences arising on translation of such items as per previous GAAP (on application of Para 46A of AS-11 “The Effects of Changes in Foreign Exchange Rates”) can be continued under Ind AS for items outstanding as on March 31, 2016. The Group has elected to apply this exemption for its long term foreign currency borrowings and investments. Decommissioning liabilities included in the cost of Property, Plant and Equipment Ind AS 101 provides the Group an option not to make changes in the decommissioning, restoration or similar liability before the transition date to be added to or deducted from the cost of the asset to which it relates. The Group is allowed to measure the liability as at the date of transition to Ind ASs that would have been included in the cost of the related asset when the liability first arose, by discounting the liability to that date using its best estimate of the historical risk adjusted discount rate(s) that would have applied for that liability over the intervening period and calculate the accumulated depreciation on that amount, as at the date of transition to Ind ASs, on the basis of the current estimate of the useful life of the asset, using the depreciation policy adopted. The Group has elected to apply this exemption for its cement business which has been sold effective August 22, 2016. Financial assets or intangible assets accounted for in accordance with Appendix A of Ind AS 11 (Service concession arrangements) The Group has used exemption under Ind AS 101 and has continue to adopt the accounting policy of previous GAAP for amortization for intangible assets arising from service concession arrangements relating to concession toll roads intangible assets recognized in the Consolidated Financial Statements. A.2 Ind AS mandatory exceptions Estimates The Group’s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at April 01, 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Group made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP: • Investment in equity instruments carried at FVTPL or FVTOCI; • Investment in debt instruments carried at FVTPL; and • Impairment of financial assets based on expected credit loss model. Non-controlling interests Ind AS 110 requires entities to attribute the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests. This requirement needs to be followed even if this results in the non-controlling interests having a deficit balance. Ind AS 101 requires the above requirement to be followed prospectively from the date of transition. Consequently, the Group has applied the above requirement prospectively. Classification and measurement of financial assets Ind AS 101 requires the Group to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS. B. Reconciliations between previous GAAP and Ind AS Ind AS 101 requires the Group to reconcile Profit, other equity and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

|565| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards (a) Reconciliation of Profit as per Ind AS with profit reported under Previous GAAP is as under: ` Crore Sr. No. Particulars Note No. Year Ended March 31, 2016 Net Profit after tax reported as per Previous GAAP 1,974.56 1 Depreciation impact on fair valuation of Property Plant & Equipment 1 (462.40) 2 Gain/(Loss) on fair valuation/measurement of Investments 2 (350.40) 3 Arrangements accounted as Financial Assets/Intangible assets under Service Concession Arrangements 3 29.94 4 Financial Assets/Liabilities measured at amortised cost 4 213.00 5 Expected Credit Loss on Financial Assets 5 (441.21) 6 Power Purchase Agreement accounted as finance lease 9 (176.71) 7 Recalculation of borrowing cost as per Effective Interest Rate methodology 10 (88.62) 8 Effect of consolidation of entity on assessment of control 12 69.46 9 Ind AS adjustments on Associates share of Profit 13 (206.06) 10 Other Adjustments (29.34) 11 Deferred Tax on Ind AS adjustments 14 160.30 12 Net Profit after tax as per Ind AS 692.52 13 Other Comprehensive income / (expenses) (net of tax) (26.36) 14 Total Comprehensive income reported under Ind AS 666.16 (b) Reconciliations of other equity between previous GAAP and Ind AS ` Crore Sr. No. Particulars Note No. As at March 31, 2016 As at April 01, 2015 Other equity (Reserves & Surplus) as per Previous GAAP 27,412.78 26,711.44 1 Fair Valuation of Property Plant & Equipment on transition date and considered as deemed cost 1 8,168.51 8,630.91 2 Gain / (Loss) on fair valuation / remeasurement of financial instruments 2 (8,201.83) (7,851.43) 3 Decrease in PPE- Service Concession Arrangements accounting under Appendix ‘A’ -IND-AS 11 3 (2,046.17) (1,887.36) 4 Increase in Financial Assets (Service Concession Receivable) - Service Concession Arrangements accounting under Appendix ‘A’ -IND-AS 11 3 1,382.27 1,291.51 5 Service Concession Arrangements accounting under Appendix‘A’ -IND-AS 11 – Toll Road Business 3 (233.10) (322.23) 6 Service Concession Arrangements accounting under Appendix ‘A’ -IND-AS 11 – Metro Business 3 (111.43) (120.29) 7 Long Term Retention Receivable measured at amortised Cost 4 (12.67) (302.22) 8 Long Term Retention Payable measured at amortised Cost 4 - 76.55 9 Provision for Expected Credit Loss in respect of Loans given 5 (2,681.78) (2,240.57) 10 Service Line Contribution reclassified as Deferred Income 6 (315.16) (287.45) 11 Consumer Contribution reclassified as Liability 6 (262.75) (256.55) 12 APDPR Grant reclassified as Liability 6 (5.12) (5.40) 13 Contingency Reserve reclassified as Liability 7 (123.35) (107.79) 14 Treasury Shares reduced from other equity 8 (36.85) (36.85) 15 Increase in PPE - Long Term Power Purchase Agreements with Generator treated as Leasing Arrangement under Appendix ‘C’- Ind-AS 17 9 3,780.82 3,999.93 16 Increase in Finance Lease Obligations - Long Term Power Purchase Agreements with Generator treated as Leasing Arrangement under Appendix ‘C’- Ind-AS 17 9 (4,269.53) (4,311.93)

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |566| ` Crore Sr. No. Particulars Note No. As at March 31, 2016 As at April 01, 2015 17 Reworking of Borrowing cost as Effective Interest Rate 10 123.51 212.13 18 Proposed Dividends (including Tax) accounted in the year of Shareholder’s approval 11 269.05 253.22 19 Effect of assessment control 12 428.15 358.69 20 Ind AS adjustments on Associates / Joint Venture 13 357.76 421.02 21 Others 0.92 (0.22) 22 Deferred Tax on above Ind AS adjustments 14 (2,234.73) (2,395.03) Other equity (Reserves & Surplus) as per Ind AS 21,389.30 21,830.08 (c) Reconciliations of Cashflows between previous GAAP and Ind AS Impact of Ind AS adoption on the Consolidated Statements of cash flows for the year ended March 31, 2016 ` Crore Particulars Previous GAAP Adjustments Ind AS Net cash flow from Operating Activities 6,766.03 3,529.65 10,295.68 Net cash flow from Investing Activities (5,735.85) 41.95 (5,693.90) Net cash flow from Financing Activities (1,092.57) (3,611.43) (4,704.00) Effects of exchange rate changes on Cash and Cash Equivalents 3.79 - 3.79 Net increase/(decrease) in Cash and Cash Equivalents (58.60) (39.83) (98.43) Cash and Cash Equivalents as at April 01, 2015 422.10 130.31 552.41 Cash and Cash Equivalents as at March 31, 2016 363.50 90.48 453.98 Analysis of changes in Cash and Cash Equivalents for the purposes of consolidated statement of cash flows under Ind AS ` Crore Particulars As at March 31, 2016 As at April 01, 2015 Cash and cash equivalents as per previous GAAP 363.50 422.10 Consolidation of subsidiary 97.22 133.98 Joint venture - equity accounting (6.74) (3.67) Cash and cash equivalents for the purpose of statement of cash flows 453.98 552.41 First-time adoption of Ind AS Transition to Ind AS Note 1: Property, plant and equipment The Group has elected to measure items of Property, Plant and Equipment at fair value at the date of transition to Ind AS and considered it as deemed cost. Hence, at the date of transition to Ind AS, an increase of ` 8,630.91 Crore was recognised in Property, Plant and Equipment with corresponding increase in Retained Earnings. Since the Group has elected for fair valuation of PPE at the date of transition to Ind AS, the Revaluation Reserve existing on the date of transition under Previous GAAP amounting to ` 505.15 Crore has been transferred to the Retained Earnings on the date of transition. Note 2: Fair valuation of investments Under Previous GAAP, the Group had accounted for long term investments at cost less provision for other than temporary diminution in the value of investments. Current investments were carried at lower of cost and fair value. At the date of transition to Ind AS, difference between these instrument’s fair value and Previous GAAP carrying amount has been recognised in retained earnings. Subsequently, the fair value

|567| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards gains and losses are recorded in the Statement of Profit and Loss. Under Ind AS, the Group has assessed that its investments in debt securities such as preference shares and debentures do not meet the “solely payments of principal and interest” test. Hence, these investments have been classified as FVTPL. However, the investments in government securities meet the “solely payments of principal and interest” test and are not held for trading. Hence, these investments are classified as amortised cost instruments. At the date of transition to Ind AS, difference between these instruments’ fair value or amortised cost as applicable and Previous GAAP carrying amount has been recognised in retained earnings. Subsequently, the interest income on government securities is recorded in the Statement of Profit and Loss using the effective interest method. Under Ind AS, financial guarantees are accounted as financial liabilities and measured initially at fair value. Accordingly the company has created financial guarantee obligations of ` 29.66 Crore and ` 24.79 Crore on April 01, 2015 and March 31, 2016 respectively. Note 3: Service concession arrangements Appendix A of Ind AS 11 ‘Service Concessionaire Arrangement’ is applicable to certain projects of the Group that have public-to-private concession arrangements under which private sector entities participate in the development, financing, operation and maintenance of infrastructure for provision of public services. In the books of the Parent Company, Samalkot Power Station and Transmission business under the Western Region System Strengthening Scheme II are engaged in such businesses that meet the conditions for classification as service concession arrangements. Certain subsidiaries are engaged in Design, Build, Finance, Operate and Transfer (DBFOT) or Design, Build, Finance, Operate (DBFO) basis arrangements with toll roads and metro rails and power generation plants. After the expiry of the concession period, these projects either have to handover the infrastructure to the grantor or provide services using the infrastructure in such a manner that the control over the entire economic useful life (including the residual value) remains with the grantor. As per the salient feature of the concession arrangement, the operator has a twofold activity based on which revenue is recognized in the financial statements that is in line with the requirement of Appendix A of Ind AS 11. - a construction activity in respect of its obligation to design, build and finance an asset that it makes available the grantor: revenue is recognized on a stage of completion basis in accordance with Ind AS 11 during the construction phase. - an operating and maintenance activity in respect of the assets under the concession during the operational: revenue is recognised in accordance with Ind AS 18 “Revenue”. In return of its activities, the projects receive consideration from users in the form of license to charge public or in guaranteed return from the grantor in the form of grant or fixed cost reimbursement. The guaranteed consideration is recorded as a concession financial receivable while the unguaranteed consideration denoting a right to charge the users is recorded as a concession intangible asset. Retrospective application of ‘Service Concessionaire arrangement’ accounting has also led to recognition of maintenance obligation and premium payable in case of toll road projects to NHAI for existing infrastructure in the balance sheet with a corresponding charge to retained earnings. Note 4: Retention money discounting Ind AS 11 and Ind AS 18 require the Group to record revenue at fair value. Under Ind AS, in case of retention monies payable and receivable, due to the timing difference between the recording of revenue/cost and settlement of transaction, it is presumed that the transactions have an embedded financing component, which is separated and recorded as interest income or expense. The interest income and expense on such transactions accrues to the Statement of Profit and Loss over the period the transaction occurs and measured at effective interest rate. Note 5: Impairment of financial assets As per Ind AS 109, the Group is required to apply expected credit loss model for recognising the allowance for doubtful loans, debts and advances. As a result, the loss allowance increased by ` 441.21 Crore as at March 31, 2016 from ` 2,240.57 Crore as at April 01, 2015 to ` 2,681.78 Crore with a corresponding impact

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |568| in the Consolidated Statement of Profit and Loss for the year ended March 31, 2016 and retained earnings as at April 01, 2015. Note 6: Service line contributions reserve, Consumer contribution reserve for capital works and Accelerated Power Development & Reforms Programme (APDRP) Grant in Aid Under Previous GAAP, the Group recorded the amounts received from customers and government to connect the distribution network in license are of Mumbai and Delhi as a part of Reserves and Surplus in its financial statements. Under the guidance of Appendix C of Ind AS 18, such amounts received from customers are considered as received to provide the customers an ongoing supply of electricity. Hence, these amounts are recorded as deferred income or an income received in advance i.e. a liability in Ind AS. Ind AS 20 on Government grant requires amounts received from the government towards capital assets to be recorded as deferred income to be amortised over the useful life of the asset for which the grant has been received. Note 7: Contingency Reserve Under Previous GAAP, the Group transferred amounts from the Statement of Profit and Loss to a Contingencies reserve fund required under the Repealed Electricity (Supply Act), 1948 and Tariff Regulations which was disclosed under Reserves and Surplus. Under Ind AS, this amount is treated as a liability. Note 8: Treasury Shares Reliance Infrastructure ESOS Trust has in substance acted as an agent and the Parent Company as a sponsor retains the majority of the risks rewards relating to funding arrangement. Accordingly, the Parent Company has recognised issue of shares to the Trust as the issue of treasury shares and deducted from equity by consolidating Trust into financial statements of the Parent Company. Note 9: Arrangement containing Lease Appendix C of Ind AS 17 ‘Determining whether an Arrangement contains a Lease’ is applicable to the power purchase agreement of the Parent Company with Vidarbha Industries Power Limited (VIPL). The Parent Company has contracted for 600 MW power on long-term basis from VIPL’s 2X300 MW thermal plant located at Butibori, District Nagpur in the State of Maharashtra. This long-term power purchase agreement is dependent on the use of the specified plant in Butibori and allows the Parent Company to ensure that no party other than itself has the ability to obtain more than an insignificant amount of output from these specified plants. Further, the contracted price is neither fixed per unit nor equal to the market price per unit as of the time of delivery of the output. The tariff for purchase of power is MERC approved and determined as under Section 62 of the Electricity Act, 2003. The present value of fixed charges reimbursable to VIPL under the power purchase agreement i.e. minimum lease payments at the inception of the contract amount to substantially all of the fair value of the thermal power plant. Therefore, the arrangement is classified finance lease. Note 10: Borrowings Ind AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognised in the profit or loss over the tenure of the borrowing as part of the interest expense by applying the effective interest rate method. Under Previous GAAP, these transaction costs were charged to the Statement of Profit and Loss as and when incurred or capitalised if incurred before the capitalisation date in case of specific borrowings. Accordingly, borrowings as at March 31, 2016 and April 01, 2015 have been reduced by ` 123.51 Crore and ` 212.13 Crore respectively with a corresponding adjustment to Statement of Profit and Loss and retained earnings respectively. The total equity increased by an equivalent amount. The profit for the year ended March 31, 2016 was increased by ` 88.62 Crore because of such reduction in other Borrowing cost.

|569| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards Note 11: Proposed dividend Under Previous GAAP, proposed dividends including dividend distribution tax (DDT) were recognised as a liability in the period to which they relate, irrespective of when the dividends are declared. Under Ind AS, a proposed dividend is recognised as liability in the period in which it is declared by the Company i.e. when approved by shareholders in a general meeting or paid. In the case of the Parent Company, the declaration of dividend has happened after the end of the reporting period. Therefore, the dividend liability (proposed dividend) of ` 253.22 Crore (including dividend tax of ` 42.83 Crore) for the year ended April 01, 2015 and ` 269.05 Crore (including dividend tax of ` 45.51 Crore) for the year ended March 31, 2016 recorded for proposed dividend has been derecognised from retained earnings. Note 12: Control assessment under Ind AS Under Previous GAAP, an investor was said to control an investee if he has the ability to appoint a more than half of the Board of Directors or held more than half of the voting rights. Under Ind AS, the investor controls an investee if he has (i) power over the investee, (ii) exposure, or rights, to variable returns from its involvement with the investee, and (iii) the ability to use its power over the investee to affect the amount of the investor’s returns. The following entities have become subsidiaries of the Group based on the evaluation under the new model as of April 1, 2015. These entities were not subsidiaries as per the guidance of the Previous GAAP. a) BSES Rajdhani Power Limited b) BSES Yamuna Power Limited c) Delhi Airport Metro Express Private Limited d) Mumbai Metro Transport Private Limited e) Reliance Delhi Metro Trust f) Spice Commerce and Trade Private Limited g) Space Trade Enterprises Private Limited h) Skyline Global Trade Private Limited i) Reliance Toll Road Trust j) Tamil Nadu Industries Captive Power Group Limited k) SU Toll Road Private Limited l) TD Toll Road Private Limited m) TK Toll Road Private Limited n) JR Toll Road Private Limited o) Worldcom Solutions Limited p) Hirma Power Limited q) Jayamkondam Power Limited r) Reliance Thermal Energy Limited s) Noida Global Sez Private Limited t) Globetech Advisory Services Limited

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |570| Note 13: Equity method of accounting – Joint Venture and Associates The joint venture and associate’s previous GAAP net worth was considered for equity method of accounting. Under Ind AS, the share of net worth and profit under Ind AS is considered for the purpose of equity method of accounting. Note 14: Deferred tax Under Previous GAAP, deferred tax accounting was under the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 “Income Tax” approach has resulted in recognition of deferred taxes on temporary differences that were not required to be recorded under Previous GAAP. In addition, the various transitional adjustments have led to deferred tax implications that the Group has accounted for. Deferred tax adjustments are recognised in correlation to the underlying transaction in either retained earnings or other comprehensive income, on the date of transition. Note 15: Re-measurements of post-employment benefit obligations Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the Previous GAAP, these Remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended March 31, 2016 increased by ` 26.36 Crore. There is no impact on the total equity as at March 31, 2016. Note 16: Foreign Currency Monetary Items Translation Difference Accounts (FIMTDA) On account of fair valuation of financial instruments held in foreign currency as at April 01, 2015, there is corresponding reduction of ` 313.33 Crore in the balance of FMITDA as per the Ind AS accounts and the Previous GAAP accounts. However, there is no impact on Other Equity. Note 17: Assignment Under the Previous GAAP, during the year ended March 31, 2016 the Parent Company had assigned its buyers credit liability (availed from various Banks/Financial Institution) of ` 2,578.99 Crore and ` 758.27 Crore to Samalkot Power Limited (Samalkot) and Reliance Cleangen Limited (Cleangen) respectively and also assigned its receivables of ` 2,328.67 Crore from Samalkot and Inter Corporate Deposit of ` 250.32 Crore and ` 758.27 Crore to Samalkot and Cleangen respectively. Since, the Parent Company could not obtain the requisite approvals from the lenders, under Ind AS, such assignment did not meet the derecognition criteria and the same has been reversed as at March 31, 2016. Accordingly, Buyer’s Credit liability of ` 3,337.26 Crore, Receivables of ` 2,328.67 Crore and Inter Corporate Deposit of ` 1,008.59 Crore has been increased as on March 31, 2016. Note 18: Derivatives and Forward Contracts Under the previous GAAP the premium or discount arising at the inception of forward exchange contracts entered into to hedge an existing asset/liability, was amortised as expense or income over the life of the contract. Under the Ind AS 109, Forward Contracts are carried at fair value and the resultant gains and losses are recorded in the consolidated statement of Profit and Loss. Accordingly, the same has been fair valued resulting in decrease by ` 5.25 Crore as at March 31, 2016 and increase in equity by ` 8.88 Crore as at April 01, 2015). Under the previous GAAP the gains pursuant to the clarification of ICAI on March 29, 2008 on accounting of derivatives contracts, the Group does not recognize gain on the mark to market valuation of the derivative instruments on a prudence basis. However under Ind AS 109, the derivative financial instruments are initially recognized at fair value and any change in the value on subsequent remeasurement whether gains or losses is recognized in the Consolidated Statement of Profit and Loss.

|571| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards Note 19: Retained Earnings Retained earnings as at April 01, 2015 has been adjusted consequent to the above Ind AS transition adjustments. Note 20: Other Comprehensive Income Under Ind AS, all items of income and expense recognised in a period should be included in consolidated statement of profit and loss for the year, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the Consolidated Statement of Profit and Loss as ‘other comprehensive income’ includes Remeasurements of post-employment benefit obligation. Other Matters in Auditors Report The comparative financial information of the Group for the year ended March 31, 2016 and the transition date opening balance sheet as at April 1, 2015 included in these consolidated Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by us whose report for the year ended March 31, 2016 and March 31, 2015 dated May 28, 2016 and May 27, 2015 respectively expressed an unmodified opinion on those consolidated financial statements, as adjusted for the differences in the accounting principles adopted by the Group on transition to the Ind AS, which have been audited by us and respective component auditors. 13. SUZLON ENERGY LIMITED FIRST-TIME ADOPTION OF IND AS These consolidated financial statements, for the year ended March 31, 2017, are the first the Group has prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2016, the Group prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP or ‘IGAAP’). Accordingly, the Group has prepared financial statements which comply with Ind AS applicable for periods ending on March 31, 2017, together with the comparative period data as at and for the year ended March 31, 2016, as described in the summary of significant accounting policies. This note explains the principal adjustments made by the Group in restating its IGAAP financial statements, including the balance sheet as at April 1, 2015 and the financial statements as at and for the year ended March 31, 2016. Exemptions applied Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Group has applied the following exemptions: • Ind AS 103 Business Combinations has not been applied to business combinations that occurred before April 1, 2015. Accordingly, in case of subsidiaries acquired by the Group, the carrying amounts of assets and liabilities, which can be recognised under Ind AS, have been measured at deemed cost (i.e. the amount at which theywere measured under Indian GAAP financial statements. After the date of the acquisition, measurement is in accordance with respective Ind AS. The Group recognises all assets acquired and liabilities assumed in a past business combination. The Group did not recognize or exclude any previously recognised amounts as a result of Ind AS recognition requirements. The Group has used same exemptions for interest in associates and joint venture. Ind AS 101 also requires that IGAAP carrying amount of goodwill must be used in the opening Ind AS balance sheet (apart from adjustments for goodwill impairment and recognition or de-recognition of intangible assets). In accordance with Ind AS 101, the Group has tested goodwill for impairment at the date of transition to Ind AS. No goodwill impairment was deemed necessary at April 1, 2015. • The Group has not applied Ind AS 21, The Effects of Changes in Foreign Exchange Rates retrospectively to fair value adjustments and goodwill from business combinations that occurred before

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |572| the date of transition to Ind AS. Such fair value adjustments and goodwill are treated as assets and liabilities of the parent rather than as assets and liabilities of the acquiree. Therefore, those assets and liabilities are already expressed in the functional currency of the parent or are nonmonetary foreign currency items and no further translation differences occur. • Since there is no change in the functional currency, the Group has elected to continue with the carrying value for all of its property, plant and equipment, intangible assets and investment property as recognised in its IGAAP financials as deemed cost at the transition date. • Ind AS 102 share-based payment has not been applied to equity instruments in share-based payment transactions that vested before April 1, 2015. • Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. However, the Group has used Ind AS 101 exemption and assessed all arrangements based for embedded leases based on conditions in place as at the date of transition. • As per Ind AS 101, when changing from proportionate consolidation method to equity method, an entity may measure its investment in a joint venture at date of transition as the aggregate of the carrying amounts of the assets and liabilities that the entity had previously proportionately consolidated, including any goodwill arising from acquisition. The resultant amount is recognised as the deemed cost of the investment in the joint venture at initial recognition. The group has opted to avail this exemption. • The Company has applied the requirements for de-recognition of financial instruments, as required in Ind AS 109-Financial Instruments prospectively for financial transactions occurring on or after April 1, 2015, the date of transition to Ind AS. • The Group has elected to continue with the policy of accounting for exchange differences arising from translation of longterm foreign currency monetary items recognised in the financial statements prepared as per Indian GAAP for the year ended March 31, 2016. Accordingly, exchange differences arising on other long-term foreign currency monetary items (existing as at March 31, 2016) are accumulated in the “Foreign Currency Monetary Item Translation Difference Account” and amortised over the remaining life of the concerned monetary item. • Ind AS 110 requires entities to attribute the profit or loss and each component of other comprehensive income to the owners of the parent and the non-controlling interests. The requirement needs to be followed even if this results in the non-controlling interests having a debit balance. Ind AS 101 requires the above requirement to be followed prospectively fromthe date of transition. Consequently, the Group has applied the above requirement prospectively. • The Group has applied classification and measurement principles to financial assets on the basis of facts and circumstances that existed on the date of transition to Ind AS. Estimates The estimates at April 1, 2015 and at March 31, 2016 are consistent with those made for the same dates in accordance with IGAAP (after adjustments to reflect any differences in accounting policies). The estimates used by the Group to present these amounts in accordance with Ind AS reflect conditions at April 1, 2015, the date of transition to Ind AS and as of March 31, 2016. Notes to the reconciliation of equity as at April 1, 2015 and March 31, 2016 and profit or loss for the year ended March 31, 2016: a) Accounting for interest in Suzlon Energy (Tianjin) Limited The Group holds 25% interest in Suzlon Energy (Tianjin) Limited (‘SETL’) and classified it as a joint venture under Indian GAAP and has proportionately consolidated its interest in the consolidated financial statements. On transition to Ind AS the Group had assessed and determined that SETL is its associate under Ind AS 28 - Investments in Associates and Joint Ventures. Therefore interest in SETL has been

|573| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards accounted for using the equity method as against proportionate consolidation. For the application of equity method, the initial investment is measured as the aggregate of Ind AS amount of assets and liabilities that the Group had previously proportionately consolidated. On application of equity method the investment stands increased by ` 28.61 Crore on April 1, 2015 and decreased by ` 11.00 Crore on March 31, 2016. De-recognition of proportionately consolidated SETL has resulted in change in balance sheet, statement of profit and loss and cash flow statement for both above mentioned periods. b) Accounting for interest in Suzlon Generators Limited (‘SGL’) In case of SGL, the Company has a joint venture arrangement with two parties and the Company used to hold 75% stake in SGL. As per the requirements of Indian GAAP, if an entity establishes joint controls over a subsidiary through contractual arrangement it will be consolidated as a subsidiary under Accounting Standard 21 – Consolidated Financial Statements. Accordingly, the Group had accounted for interest in SGL as a subsidiary and disclosed 25% stake held by other parties as non-controlling interest. Under Ind AS, the Group has evaluated the terms of the joint venture agreement and based on the contractual terms classified interest in SGL as joint venture and hence it has been accounted using the equity method of accounting. Accordingly, all the assets, liabilities, income and expenses included in the Indian GAAP financial statements have been adjusted and also the amount of long term investment in SGL has been adjusted to incorporate effect of equity method. c) Investments Under IGAAP, investments in mutual funds were classified as current investments. Current investments were carried at lower of cost and fair value. Under Ind AS, the Group has designated such instruments as financial assets at fair value through profit or loss. The resulting fair value changes of these investments have been recognised in retained earnings as at the date of transition and subsequently in the statement of profit or loss for the year ended March 31, 2016. d) Trade receivables Under IGAAP, the Group has created provision for impairment of receivables only in respect of specific amount for incurred losses. Under Ind AS, impairment allowance has been determined based on expected credit loss model (‘ECL’). Due to ECL model, the Group impaired its trade receivable which has been adjusted against retained earnings. e) Other financial assets Under IGAAP, interest free security deposit given is initially measured at the transaction price and no consideration is given to the fair value at the time of initial measurement. Under Ind AS, interest free security deposit is to be initially measured at fair value. As at the date of transition, the interest free security deposit has been recognised at fair value based on the facts and circumstances which existed at the date of initial measurement by giving corresponding effect to retained earnings for the period from initial measurement to the date of transition and to other current assets (pre-paid expense) for remaining period of deposit post the date of transition. f) Defined benefit obligations Both under IGAAP and Ind AS, the Group recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under IGAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, Re-measurements comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI. g) Share-based payments Under IGAAP, the Group recognised only the intrinsic value for the employee stock option plan as an expense. Ind AS requires the fair value of the share options to be determined using an appropriate pricing model recognised over the vesting period. Share options which were granted before and still vesting at

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |574| April 1, 2015, have been recognised as a separate component of equity in Share option outstanding account against retained earnings at April 1, 2015. h) Borrowings Under IGAAP, transaction costs incurred in connection with borrowings are amortised upfront and charged to profit or loss for the period. Under Ind AS, transaction costs are included in the initial recognition amount of financial liability and charged to profit or loss using the effective interest method. I) Provisions Under IGAAP, the Group has accounted for long-term warranty provisions at the undiscounted amount. In contrast, Ind AS 37 requires that where the effect of time value of money is material, the amount of provision should be the present value of the expenditures expected to be required to settle the obligation. The discount rate(s) should not reflect risks for which future cash flow estimates have been adjusted. Ind AS 37 also provides that where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. This increase is recognised as finance cost. j) Deferred Revenue Under IGAAP, the Group used to recognise the provision for free O&M given as part ofWTG supply contract on dispatch of WTG. Under Ind AS, free O&M given in excess of 2 years is recognised as cost and revenue over the period of service which exceeds 2 years. Transitional adjustment in regard to free O&M as at the date of transition have been made by debiting retained earnings with a corresponding credit to the deferred income. k) Other comprehensive income Under IGAAP, the Group has not presented other comprehensive income (OCI) separately. Hence, it has reconciled IGAAP profit or loss to profit or loss as per Ind AS. Further, IGAAP profit or loss is reconciled to total comprehensive income as per Ind AS. l) Statement of cash flows The transition from IGAAP to Ind AS has not had a material impact on the statement of cash flows, except on account of changes due to para (a) and (b) above. m) Foreign currency convertible bonds (‘FCCB’) The FCCB has been classified as compound instrument. This instrument has been split between equity and liability by primarily valuing the liability portion without equity conversion options. The balance between instrument value and liability component has been the value of equity conversion options. On the date of transition the amount of FCMITDA has been recomputed under Ind AS. The difference in the value as a result has been transferred to retained earnings. n) Recompense liability The Group is in negotiation with CDR lenders for a voluntary exit from CDR scheme. The Group has recognised recompense liability payable to CDR lenders based on reasonable estimate which is derived considering possibility certain scenarios and assumptions in relation to interest rate, waiver in recompense, timing of loan repayment and CDR exit etc. The amount payable by the Company as recompense is dependent on various factors and also on discussions and negotiations with the CDR lenders. The Group has recognised the present value of estimated recompense liability on the date of transition and the unwinding cost has been recognised as part of finance cost in subsequent periods. o) Forward contracts Under IGAAP, the premium or discount arising at the inception of forward exchange contract is amortised and recognised as an expense or income over the life of the contract. Exchange differences on such contracts, foreign currency monetary items, are recognised in the statement of profit and loss in the period in which the exchange rate changes. Any profit or loss arising on cancellation or renewal of such forward

|575| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards exchange contract is also recognised as income or expense for the period. Under Ind AS, these contracts have been classified as FVTPL instruments and corresponding fair value is recorded. Accordingly, the reversal of IGAAP accounting and recording ofMTMon these instruments has led to a reduction in equity as at April 1, 2015. Also, the same has resulted into a reduction in the profit for the year ended March 31, 2016. p) Restructuring cost The Group had restructured its outstanding loans under the Corporate Debt Restructuring (‘CDR’) Scheme approved by CDR Empowered Group. In connection of this restructuring, the Group incurred certain costs such as consultancy fees, legal fees etc. Under IGAAP these costs were debited to prepaid expenses and were amortised on a quarterly basis. Thus, on transition date, the transaction costs which were recorded as a prepaid asset under previous GAAP has been de-recognised as it does not meet the asset recognition criteria under Ind AS. q) Reclassification of loans and advances and other current assets April 1, 2015 March 31, 2016 Non-current Current Non-current Current Classification as per IGAAP Loans and advances 368.07 1,391.89 255.39 749.56 Other asset 463.59 2,293.86 636.58 147.57 831.66 3,685.75 891.97 897.13 Classification as per Ind AS Loans 43.09 47.76 0.98 47.98 Other financial assets 629.02 2,259.27 801.52 139.07 Other assets 159.55 1,330.83 89.47 678.26 Current tax asset, net - 47.89 - 31.82 831.66 3,685.75 891.97 897.13 Loans and advances under IGAAP has been primarily reclassified as Loans (Current: March 31, 2016 - ` 46.50 Crore, April 01, 2015 - ` 47.25 Crore), advance recoverable in kind as other asset (Current: March 31, 2016 - ` 455.50 Crore, April 01, 2015 - ` 737.16 Crore) and Security deposit as other financial asset (Non-current: March 31, 2016 - ` 169.48 Crore, April 01, 2015 - ` 186.30 Crore). Other assets under IGAAP has been primarily reclassified to other financial asset as non-current bank balance (Non-current: March 31, 2016 - ` 247.23 Crore, April 01, 2015 - ` 130.23 Crore), receivable towards share application money (Current: March 31, 2016 - ` Nil, April 01, 2015 - ` 1,800.00 Crore) and Infrastructure development and TNEB receivable (Noncurrent: March 31, 2016 - ` 341.18 Crore, April 01, 2015 - ` 272.69 Crore. Current: March 31, 2016 - `51.18 Crore, April 01, 2015 - ` 132.48 Crore). r) Reclassification of trade payable and other current liabilities April 1, 2015 March 31, 2016 Non-current Current Non-current Current Classification as per IGAAP Other liabilities 102.74 6,320.68 157.86 2,045.84 Trade payable - 4,556.22 - 2,805.33 102.74 10,876.90 157.86 4,851.17 Classification as per Ind AS Other financial liabilities 102.74 3,423.25 157.86 306.46 Trade payable - 4,669.69 - 2,932.03 Other liabilities - 2,783.96 - 1,612.68 102.74 10,876.90 157.86 4,851.17

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |576| Other liabilities has been primarily reclassified to other financial liabilities as current maturity of borrowing (Current: March 31, 2016 - ` 294.81 Crore, April 01, 2015 - ` 2,448.62 Crore) and other liabilities as advance from customers (Current: March 31, 2016 - ` 1,136.26 Crore, April 01, 2015 - ` 2,093.11 Crore) FROM AUDITORS’ REPORT EMPHASIS OF MATTER We draw attention to Note [6] of the accompanying consolidated Ind AS financial statements. The consolidated financial statements of the Group for the year ended March 31, 2017 were earlier approved by the Board of Directors at its meeting held on May 19, 2017. Those consolidated Ind AS financial statements have been revised by the Group so as to give effect to the composite schemes of amalgamation and arrangement for merger under Sections 391 to 394 and other applicable provisions of the Companies Act, 1956 and Companies Act, 2013, of Suzlon Wind International Limited, SE Blades Limited and SE Electricals Limited (wholly owned subsidiaries) and for demerger of tower business of Suzlon Structures Limited (a wholly owned subsidiary, now known as Suzlon Global Services Limited), into the Company, consequent to obtaining approvals from Honourable National Company Law Tribunal, Ahmedabad Bench vide its order dated May 31, 2017, filed by the Company with the Registrar of Companies, Gujarat on June 1, 2017, with effect from appointed dates, January 1, 2016 for merger and April 1, 2016 for the demerger. As a result, the aforesaid consolidated Ind AS financial statements have been revised by the Group to give effect to the said composite schemes of amalgamation and arrangement. Accordingly, we are issuing revised report, on the revised consolidated Ind AS financial statements of the Group for the financial year ended March 31, 2017 in supersession of the original report dated May 19, 2017, which hereby stands withdrawn. Our opinion is not modified in respect of this matter. NOTE Screenshot of other reconcillations have not been included here because they are the same in comparison with the above companies. 14. TATA GLOBAL BEVERAGES LIMITED FIRST-TIME ADOPTION OF IND AS The Group has prepared Consolidated Financial Statements which comply with Ind AS for periods ending on or after March 31, 2016, together with the comparative period data for the year ended March 31, 2016. In preparing these Consolidated Financial Statements, the Group’s opening balance sheet was prepared as at April 1, 2015, the Group’s date of transition to Ind AS. This note explains the principal adjustments made by the Group in restating its Indian GAAP Balance Sheet as at April 1, 2015 and its previously published Indian GAAP Consolidated Financial Statements as at and for the year ended March 31, 2016. Exemptions availed on first time adoption Ind AS 101 – First-time adoption of Ind AS permits certain optional exemptions from full retrospective application of Ind AS accounting policies and the following options have been adopted as at the date of transition: 1. Business combinations prior to the date of transition have not been restated based on Ind AS principles. 2. Group has designated long-term equity instruments held at April 1, 2015 as fair value through Other Comprehensive Income. 3. Cumulative currency translation differences for all foreign operations are deemed to be zero as at April 1, 2015. 4. Group has elected to measure all of its property, plant and equipment, investment properties and other intangible assets at their previous GAAP carrying value.

|577| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards 5. Group has elected to apply the exception provided by Para D13AA of Ind AS-101 to its External Commercial Borrowing (ECB). Consequently any exchange differences arising from translation of ECB will continue to be capitalised. Reconciliation between previous GAAP and Ind AS ` in Crores Notes 2016 April 1, 2015 Equity as per previous GAAP 6599.61 6367.73 Changes in Fair value of Equity instrument through other comprehensive income a 336.23 801.57 Reversal of Proposed Dividend b 186.99 186.99 Amortised cost adjustments on long-term borrowings c 10.78 27.26 Fair Value of Agricultural Produce d 1.00 31.67 Hedge accounting adjustment e (3.33) (16.20) Deferred Tax on Unremitted Earnings and Consolidation adjustments f (12.28) (12.11) Non Controlling Interest adjustment on Equity Accounting of Joint Ventures g (6.20) (6.37) Others (3.86) (5.54) Total transition adjustments 509.33 1007.27 Equity as per Ind AS 7108.94 7375.00 Reconciliation on Total Comprehensive Income for the year ended March 31, 2016 ` in Crores Notes 2016 Profit after tax as per previous GAAP before Minority Interest 333.63 Profit on sale of equity instruments carried at fair value through other comprehensive income a (327.79) Fair valuation of Agricultural produce d (32.45) Replanting costs capitalised as bearer plants in progress d 5.53 Amortised cost adjustments on long-term borrowings c (25.20) Adjustment for change in depreciation methodology h (16.97) Ind AS transition adjustments in Associate entities i 9.06 Remeasurement of the defined benefit plan j 4.82 Others 3.93 Tax on above adjustments 8.35 Total transition adjustments (370.72) Profit after tax as per Ind AS (37.09) Other Comprehensive Income (47.24) Total Comprehensive Income as per Ind AS (84.33) Impact of Ind AS transition on the Consolidated Statements of Cash flows for the year ended March 31, 2016 ` in Crores Cash Flows from operating activities 111.52 4.46 115.98 Cash Flows from investing activities 293.15 (172.27) 120.88 Cash Flows from financing activities (429.02) 147.22 (281.80) Net increase / (decrease) in cash & cash equivalent (24.35) (20.59) (44.94) Cash and cash equivalent as at April 1, 2015 536.53 (181.66) 354.87 Effects of exchange rate changes on cash and cash equivalent 18.59 5.15 23.74 Cash and cash equivalent as at March 31, 2016 530.77 (197.10) 333.67 Adjustment to cash flow from investing activities mainly relates to current investment considered as cash and cash equivalent under previous GAAP and adjustment to cash flow from financing activities mainly relates to bank overdraft not considered as cash and cash equivalent under previous GAAP.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |578| Analysis of changes in cash and cash equivalents for the purposes of consolidated statement of cash flows under Ind AS: ` in Crores 2016 April 1, 2015 Cash and cash equivalent as per previous GAAP 530.77 536.53 Current Investments (173.33) (10.83) Bank overdraft (12.61) (152.50) Joint Venture Equity Accounted (11.16) (18.33) Cash and cash equivalent as per Ind AS 333.67 354.87 Notes to first time adoption: Note (a): Fair value of equity investments through Other Comprehensive Income Under previous GAAP, current investment were measured at lower of cost or fair value and long-term investment were measured at cost less diminution in the value which is other than temporary, under Ind AS these investments are required to be measured at fair value. The resulting fair value changes of these investments were recognised in equity. Note (b): Reversal of proposed dividend Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the Consolidated Financial Statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting, consequently the liability for proposed dividend has been reversed with corresponding adjustment to retained earnings. Note (c): Borrowings Under previous GAAP, redemption premium payable on debentures were adjusted with Securities Premium in accordance with Section 52 of Companies Act, 2013. Under Ind AS, these debentures are measured at amortised cost using the effective interest rate method and the resultant difference is accounted in the Statement of Profit and Loss. Note (d): Fair valuation of agricultural produce and bearer plants (i) Ind AS adjustment represents fair valuation of agricultural produce at the point of harvest and capitalisation of replanting costs as bearer plant in progress. (ii) Bearer assets have been recognised only after the transition date i.e. April 1, 2015. Note (e): Hedge accounting of commodities Effective portion of cash flow hedge. Note (f): Deferred tax Under previous GAAP, tax expense in the consolidated financial statements was computed by performing line by line addition of tax expense of the parent and its subsidiaries. No adjustments to tax expense were made on consolidation. Under Ind AS, deferred taxes are recognised on undistributed profits of subsidiaries, joint ventures and associates and consolidation adjustments. Note (g): Equity accounting of investment in Joint Ventures i) Under previous GAAP, one entity controls another entity when it has the ownership of more than onehalf of the voting power of the other entity or control of the composition of the board of directors so as to obtain economic benefits from its activities, since the Group held 51.70% in Joekels Tea Packers (Proprietary) Limited it was treated as a subsidiary. However, based on the control assessment carried out by the Group in accordance with Ind AS 110, Joekels Tea Packers (Proprietary) Ltd has been assessed to be a Joint Venture and has been accounted using the equity method.

|579| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards ii) Under previous GAAP, following entities were classified as jointly controlled entity and accounted using proportionate consolidation method: Nourish Co Beverages Ltd. Tata Starbucks Private Ltd. Empirical Group LLC. Southern Tea LLC. Tetley ACI (Bangladesh) Ltd. Tetley Clover (Pvt.) Ltd. The above entities are accounted using the equity method. For the purpose of applying the equity method the investments in the aforementioned joint ventures, as at the date of transition, has been measured as the aggregate of the carrying value of the assets and liabilities that the Group had previously proportionately consolidated. Note (h): Change in depreciation methodology Under previous GAAP, change in method of depreciation is applied retrospectively from the date of asset coming into use. Under Ind AS, depreciation method change in treated as a change in estimate and any impact is prospectively adjusted. Adjustment represents impact of change of method of depreciation in one of the Indian subsidiary of the Holding Company. Note (i): Re-measurement of defined benefits plan Under Ind AS, re-measurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in Other Comprehensive Income instead of the Statement of Profit and Loss. Under the previous GAAP, these remeasurements were accounted in the Statement of Profit and Loss for the year by the Group other than defined benefit pension scheme of overseas subsidiaries. Note (j): Ind AS transition adjustments in the Associates entities mainly relating to fair valuation of agricultural produce and remeasurement of defined benefits plans. Note (k): Foreign currency translation reserve The Group elected to reset the balance appearing in the foreign currency translation reserve to zero as at April 1, 2015. Accordingly, translation reserve balance under previous GAAP of ` 678.88 Crores has been transferred to retained earnings. There is no impact on total equity as a result of this adjustment. FROM AUDITORS’ REPORT OTHER MATTERS The comparative financial information of the Company for the year ended March 31, 2016 and the transition date opening balance sheet as at April 1, 2015 included in these consolidated Ind AS financial statements, are based on the previously issued statutory financial statements for the years ended March 31, 2016 and March 31, 2015 prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by us, on which we expressed an unmodified opinion dated May 24, 2016 and May 28, 2015 respectively. The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition to the Ind AS have been audited by us.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |580| 15. TATA STEEL LIMITED ADOPTION OF INDIAN ACCOUNTING STANDARDS (IND AS) A. Mandatory exceptions to retrospective application The Group has applied the following exceptions to the retrospective application of Ind AS as mandatorily required under Ind AS 101 “First Time Adoption of Indian Accounting Standards”. (i) Estimates On assessment of estimates made under the Previous GAAP financial statements, the Group has concluded that there is no necessity to revise such estimates under Ind AS, as there is no objective evidence of an error in those estimates. (ii) Classification and measurement of financial assets The classification of financial assets to be measured at amortised cost or fair value through other comprehensive income is made on the basis of facts and circumstances that existed on the date of transition to Ind AS. B. Optional exemptions from retrospective application Ind AS 101 “First time adoption of Indian Accounting Standards” permits Companies adopting Ind AS for the first time to take certain exemptions from the full retrospective application of Ind AS during transition. The Group has accordingly on transition to Ind AS availed the following key exemptions: i. Fair value as deemed cost for items of property, plant and equipment The Company and some of its subsidiaries has elected to treat fair value as deemed cost for certain items of its property, plant and equipment. The aggregate fair value of property, plant and equipment where the exemption was availed amounted to ` 47,580.78 crore with an aggregate adjustment of ` 14,129.68 crore being recognised to the carrying value reported under the Previous GAAP. ii. Business combination The Group has elected to apply the principles of Ind AS 103, ‘Business Combinations’ retrospectively to acquisitions made on or after April 2, 2007. The assets acquired and liabilities assumed in such business combinations have thus been accounted for at their respective fair values as on the acquisition date adjusted till the date of transition and for subsequent reporting periods. iii. Designation of previously recognised financial instruments As per Ind AS 109, “Financial Instruments” at initial recognition of a financial asset, an entity may make an irrevocable election to present subsequent changes in fair value of an investment in equity instrument in other comprehensive income. Ind AS 101 “First time Adoption of Indian Accounting Standards” allows such designation of previously recognised financial assets as “fair value through other comprehensive income” on the basis of facts and circumstances that existed at the date of transition to Ind AS. Accordingly, the Group has designated its investments in equity instruments at fair value through other comprehensive income on the basis of facts and circumstances that existed at the date of transition to Ind AS. iv. Effects of changes in exchange rates In respect of long term foreign currency monetary items recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period, the Company and some of its subsidiaries have elected to recognise exchange differences on translation of such long term foreign currency monetary items in line with their Previous GAAP accounting policy. In respect of long term foreign currency monetary items recognised in the financial statements beginning with the first Ind AS financial reporting period, exchange differences are recognised in the consolidated statement of profit and loss.

|581| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards (c) Reconciliation of consolidated statement of cash flows (` crore) Note Amount as per Previous GAAP Effect of transition to Ind AS Amount as per Ind AS Net cash generated from/(used in) operating activities (xiii-xv) 11,116.96 338.39 11,455.35 Net cash generated from/(used in) investing activities (xiii-xv) (9,192.46 ) (61.36) (9,253.82) Net cash generated from/(used in) financing activities (xiii-xv) (4,313.77) (415.35) (4,729.12) Net increase/(decrease) in cash and cash equivalents (2,389.40) (138.19) (2,527.59) Cash and cash equivalents as at April 1, 2015 (xiii-xv) 8,525.66 (348.53) 8,177.13 Effect of exchange rate on translation of foreign currency cash and cash equivalents (xiii-xv) 472.73 (13.22) 459.51 Cash and cash equivalents as at March 31, 2016 (xiii-xv) 6,608.99 (499.94) 6,109.05 Notes to reconciliation of total equity and total comprehensive income (i) Financial Instruments (a) In accordance with Ind AS 109 “Financial Instruments”, investments in quoted equity instruments (other than in subsidiaries, associates and joint ventures) have been recognised at fair value at each reporting date through other comprehensive income. Consequently, on eventual sale of such investments, profit or loss recognised in the consolidated statement of profit and loss under the Previous GAAP has been reversed as the fair value changes are recognised through other comprehensive income. (b) In accordance with Ind AS 109 “Financial Instruments”, premium payable on redemption, discount on issue, transaction costs on issue of bonds and debentures are required to be considered as effective finance costs and recognised in the consolidated statement of profit and loss using the effective interest rate. Consequently, premium on redemption/discount on issue and transaction costs recognised directly in equity or amortised using a different approach under the Previous GAAP have been reversed and are now recognised through the consolidated statement of profit and loss using effective interest rate. (c) In accordance with Ind AS 109 “Financial Instruments”, investments in mutual funds are recognised at fair value through the consolidated statement of profit and loss at each reporting period. (d) In accordance with Ind AS 109 “Financial Instruments”, all derivative financial instruments are recognised at fair value as at each reporting date through the consolidated statement of profit and loss except where designated in a hedging relationship. (ii) Property, plant and equipment On transition to Ind AS, the Company and some of its subsidiaries have treated fair value as deemed cost for certain items of property, plant and equipment resulting in an uplift in the carrying value as compared to the Previous GAAP. The consequential impact of additional depreciation on fair value uplift is recognised in the consolidated statement of profit and loss. (iii) Leases As per Ind AS 17, “Leases”, the Group has assessed long term arrangements, fulfilment of which is dependant on use of specified assets and where the Group has the right to control the use of such assets for being in the nature of a lease. This resulted in certain arrangements being treated as a lease and classified as finance lease. The impact on total equity and profit and loss is on account of timing difference in recognition of expenses under the lease accounting model as compared to those recognised under the Previous GAAP.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |582| (iv) Business combinations The Group has fair valued business combinations effected on or after April 2, 2007. The assets acquired and liabilities assumed in such business combinations have thus been recorded at fair values on the date of acquisition and adjusted for subsequent depreciation and amortisation till the date of transition to Ind AS and for subsequent reporting periods (v) Re-classification of Hybrid Perpetual Securities In accordance with Ind AS 109 “Financial Instruments”, Hybrid Perpetual Securities have been re-classified as equity based on its substance and the fact that the Company has an unconditional right to avoid making payments on the instrument as per the contractual terms. (vi) Equity accounting of joint ventures and changes in scope of consolidation In accordance with Ind AS 28, “Investments in Associates and Joint Ventures”, the Group has accounted for its joint ventures using the equity method unlike proportionate line by line method under the previous GAAP. In addition, certain entities consolidated as subsidiaries under the Previous GAAP have been consolidated as joint ventures and accounted for using the equity method under Ind AS. (vii) Reversal of proposed dividend In accordance with Ind AS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”, dividend recommended by the Board of Directors is recognised only once approved by the shareholders as compared to the Previous GAAP where it was considered as an adjusting event. (viii) Employee benefits (a) In accordance with Ind AS 19, “Employee benefits” re-measurement gains and losses on post employment defined benefit obligations are recognised in other comprehensive income as compared to the consolidated statement of profit and loss under the Previous GAAP. (b) Interest expense/income on the net defined benefit liability/asset is recognised in the consolidated statement of profit and loss using the discount rate used for defined benefit obligation as compared to the expected rate used for recognising income from plan assets under the Previous GAAP. (c) Plan administration costs are recognised in the consolidated statement of profit and loss as and when incurred, as compared to the Previous GAAP where the same was included in the valuation of obligations or assets as the case may be. (ix) Deferred Taxes In accordance with Ind AS 12, “Income Taxes”, the Company on transition to Ind AS has recognised deferred tax on temporary differences, i.e. based on balance sheet approach as compared to the earlier approach of recognising deferred taxes on timing differences , i.e. profit and loss approach. The tax impacts as above primarily represent deferred tax consequences arising out of Ind AS re-measurement changes. (x) Non-controlling Interests Under the Previous GAAP, non-controlling interest was not considered as part of total equity and was presented separately. In the consolidated statement of profit and loss, share of non-controlling interest for the year was shown as a deduction from Group’s profit or loss. Under Ind AS, non-controlling interests are considered as a part of total equity and its share in profit or loss for the year and total comprehensive income is shown as an allocation instead of as a deduction from profit or loss for the year. Further, under Ind AS, profit or loss and each component of other comprehensive income is attributed to the owners of the Company and to non-controlling interests even if this results in the non-controlling interests having a deficit balance. Under the Previous GAAP, the excess of such losses attributable to non-controlling interests over its interest in the equity of subsidiary was attributed to the owners of the Company. (xi) Other Adjustments (a) In accordance with Ind AS 20 “Government Grants”, duty saved on import of capital goods and spares under the EPCG scheme has been treated as a Government grant. The benefit has been grossed up

|583| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards with the cost of the related asset and has been recognised as a deferred income. Such deferred income is released to the consolidated statement of profit and loss based on fulfilment of related export obligations. The duty benefit grossed up to the cost of the asset is depreciated based on its useful economic life or as and when the spares are consumed. (b) Other adjustments also include consequential impact on inventory valuation due to Ind AS transition. (xii) Other comprehensive Income Under Ind AS, all items of income and expense recognized during the year are included in the profit or loss for the year, unless Ind AS requires or permits otherwise. Items that are not recognised in profit or loss but are shown in the consolidated statement of profit and loss and other comprehensive income include re-measurements gains or losses on defined benefit plans, effective portion of gains or losses on cash flow hedges, fair value changes of equity investments and foreign currency translation differences of foreign subsidiaries. The concept of other comprehensive income did not exist under the Previous GAAP. Notes to reconciliation of consolidated statement of cash flows (xiii) The Group transfers trade receivables under discounting arrangements with banks and financial institutions. Some of the arrangements do not meet the de-recognition criteria due to recourse arrangements being in place. Consequently, proceeds received from such transactions are recorded as short term borrowings and trade receivables continue to be recognised in the consolidated financial statements. Under the Previous GAAP, such transactions were de-recognised and recorded as a sale. As a result, cash flow from operating activities under Ind AS is lower and cash flow from financing activities is higher. (xiv) On transition to Ind AS, long term arrangements have been assessed as being in the nature of a lease and classified as finance leases, where applicable. Under the Previous GAAP, such long term contracts were treated as a normal contract for purchase of output. Payments made under such contracts have therefore been re-classified as part of financing activities under Ind AS as compared to operating activities under the Previous GAAP. As a result, cash flow from operating activities under Ind AS is higher and cash flow from financing activities is lower. (xv) Under the Previous GAAP, joint ventures were consolidated using line by line proportionate method whereas under Ind AS joint ventures have been accounted for using the equity method. As a result, proportionate cash flows for operating, investing and financing activities including cash and cash equivalents of joint ventures included in the consolidated cash flow under the Previous GAAP do not form part of consolidated cash flow under Ind AS. NOTE : Screenshot of other reconcillations has not been included here since they are the same in comparison to above companies. 16. UNITED PHOSPHORUS LIMITED 49. FIRST-TIME ADOPTION OF IND AS These financial statements, for the year ended 31 March 2017, are the first the Group has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2016, the Group prepared its financial statements in accordanc with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP) as amended thereafter. Accordingly, the Group has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2017, together with the comparative period data as at and for the year ended 31 March 2016, as described in the summary of significant accounting policies. In preparing these financial statements, the Group’s opening balance sheet was prepared as at 1 April 2015, the Group’s date of transition to Ind AS. This note explains the principal adjustments made by the Group in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2015 and the financial statements as at and for the year ended 31 March 2016.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |584| Exemptions applied Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Group has applied the following exemptions: 1) The Group is allowed to choose any date in the past from which it wants to account for the business combinations under Ind AS 103, without having to restate business combinations prior to such date. Accordingly, the group has applied the standard for all acquisitions completed after 1st June, 2005. For all such acquisitions, - Intangible assets previously included within goodwill under IGAAP have been recognized separately in the opening Balance Sheet in accordance with Ind AS 103. - Retained earnings has been adjusted to include the amortization on identified intangibles, net of taxes, that would have been recorded from the date of acquisition till the transition date. - Deferred taxes have been recorded on intangible assets, wherever applicable. Ind AS 101 also requires that Indian GAAP carrying amount of goodwill must be used in the opening Ind AS balance sheet for all business combinations prior to 1st June, 2005 (apart from adjustments for goodwill impairment and recognition or derecognition of intangible assets). In accordance with Ind AS 101, the Group has tested goodwill for impairment at the date of transition to Ind AS. No goodwill impairment was deemed necessary at 1 April 2015.The Group has used same exemptions for interest in associates and joint ventures. 2) The Group’s investment in Advanta Limited and Agrinet Solutions Limited was considered as an associate under Indian GAAP. These have been treated as subsidiaries in accordance with Ind-AS 110 “ Consolidated Financial Statements”. These have been accounted retrospectively by applying requirements of Ind-AS 103 “Business Combinations” from the date of acquisition. 3) Certain items of plant and equipment have been measured at fair value at the date of transition to Ind AS. 4) Cumulative currency translation differences for all foreign operations are deemed to be zero as at 1 April 2015. 5) Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the lease contract or arrangement. However, the Group has used Ind AS 101 exemption and assessed all arrangements for embedded leases based on conditions in place at the date of transition. 6) The group has designated quoted equity instruments held as on the transition date as fair value through Other Comprehensive Income instruments and unquoted debt and equity instruments as fair value through Profit and loss. 7) The Group holds 40% interest in Hodogaya Co Ltd and exercises joint control over the entity. On transition to Ind AS the Group has assessed and determined Hodogaya Co Ltd as its joint venture under Ind AS 111 Joint Arrangements. Under Indian-GAAP Group had proportionately consolidated its interest in the Joint venture in the Consolidated Financial Statement. However, under Ind AS, it needs to be accounted for using the equity method as against proportionate consolidation. For the application of equity method, the initial investment is measured as the aggregate of Ind AS amount of assets and liabilities that the Group had previously proportionately consolidated including any goodwill arising on acquisition. Estimates The estimates as at 1 April 2015 and as at 31 March 2016 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from the following items where application of Indian GAAP did not require estimation:

|585| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards - Impairment of financial assets based on expected credit loss model. - FVTPL - unquoted debt instruments and equity shares. The estimates used by the Group to present these amounts in accordance with Ind AS reflect conditions as at 1 April 2015, the date of transition to Ind AS and as of 31 March 2016. Footnotes to the reconciliation of equity as at 1 April 2015 and 31 March 2016 and profit or loss for the year ended 31 March 2016. 1. Property, plant and equipment Group has elected to measure certain items of property, plant and equipment at fair value at the date of transition to Ind AS. Hence at the transition date, a decrease of ` 101 Crs was recognised in property, plant and equipment. This amount has been recognised against retained earnings. Accordingly, the Group has also reversed depreciation of ` 11 Crs excess charged under Indian GAAP for the year ended March 31, 2016. 2. Government Grants The Group imports capital goods without payment of duty under Export Promotion on Capital Goods (EPCG) scheme and assumes an export obligation to be fulfilled over a period of 6-8 years which is treated as asset related government grant as per Ind AS 20 - Accounting for Government Grants and disclosure of government assistance. Such grants utstanding on the date of transition and received during the year ended March 31, 2016, are fair valued and treated as deferred income with the corresponding adjustments to property, plant and equipments amounting to ` 4 Crs and ` 4 Crs net of depreciation respectively. Grant set up as deferred income has been recognised in the statement of profit and loss account for the year ended March 31, 2016 amounting to ` 22 lacs on a systematic basis over the useful life of the asset. 3. FVTOCI financial assets Under Indian GAAP, Group recognised long-term investments in equity shares at cost less provision for diminution in the value of investments. Under Ind AS, the Group has designated such investments as FVTOCI and measured them at fair value through Other comprehensive income. On the transition date, decrease of ` 32 Crs between the instruments’ fair value and Indian GAAP carrying amount has been recognised in Other Comprehensive Income. Further for the year ended March 31, 2016 an additional loss of ` 19 Crs has been recorded in Other Comprehensive income. 4. FVTPL financial assets Under Indian GAAP, Group recognised long-term investments in convertible debt securities at cost less provision for diminution in the value of investments. Under Ind AS, Group recognised such convertible debt investments as FVTPL and measured them at fair value through profit and loss. On the transition date, an increase of ` 29 Crs and further increase of ` 10 Crs during the year ended March 31, 2016 between the instruments fair value and amortised cost has been recognised in retained earnings and statement of profit and loss respectively. 5. Amortized Cost of financial assets Under Indian GAAP, Group accounted for interest free deposits paid at cost i.e. the amount actually paid. Under Ind AS, such deposits are recognised at fair value on initial recognition and at amortised costs on subsequent measurement. Accordingly, on the date of transition, a decrease of ` 2 Crs (net) (` 8 crs reduced from Security deposits and ` 6 Crs recognised as Prepaid Expense) between the deposits’ carrying amount and amortized cost has been recognized in retained earnings. 6. Expected Credit Loss Under Indian GAAP, Group has recognised specific amount towards impairment of Trade receivables on the basis of incurred losses. Under Ind AS, impairment allowance has been recognised based on Expected Credit Loss basis (ECL). Accordingly, additional allowance for impairment amounting to ` 51 Crs as at April 01, 2015 (at the transition date) and INR 71 Crs as at March 31, 2016, which has decreased retained earnings.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |586| 7. Amortised cost of financial liability Non-convertible debentures (‘NCDs’) issued by Group are carried at the outstanding principal amount under Indian GAAP and debenture issue expenses were adjusted against securities premium. Under Ind AS, NCDs are to be measured at amortized cost by applying the effective interest rate method which adjusts the effective interest rate for the debenture issue expenses. Accordingly, the borrowings are restated as per Ind AS and the transition cost amounting to ` 11 Crs earlier debited to the Securities premium has now been reversed. The amount of transition cost debited to retained earnings on date of transition is ` 4 Crs. Net impact on profits for the year ended March 31, 2016 on account of carrying debentures at amortised cost amounts to ` 1 Cr. 8. Proposed Dividend In Indian GAAP, dividend payable is recorded as a liability in the period to which it relates. Under Ind AS, dividend to holders of equity instruments is recognized as a liability in the period in which the obligation to pay is established. Accordingly, proposed dividends and the related tax have increased the retained earnings by ` 258 Crs, at the transition date and as on March 31, 2016. 9. Net Present Value Adjustment Under Indian GAAP, the Group recorded their financial assets and liabilities with expected credit period at book value. However, under Ind AS, trade receivables and trade payables are recorded at their fair value i.e. at net present value if the impact is material based on the discount rate used by the Group for borrowing. Thus the impact on account of recording trade payables and receivables at net present value with corresponding deferred tax impact as on April 01, 2015 is ` 17 Crs decrease in retained earnings and further impact of ` 21 Crs recognized as income (net) during the year ended March 31, 2016. 10. Deferred tax including recognition of Deferred tax Assets on losses Under Indian GAAP, deferred tax assets and liabilities are accounted using the income approach which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP. In addition, the various transitional adjustments lead to temporary differences. Accordingly, the Group has to account for such differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or a separate component of equity. On the date of transition, the net impact on deferred tax liabilities is of ` 16 Crs and ` 17 Crs on 31 March 2016. 11. Sale of goods Under Indian GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is separately presented on the face of statement of profit and loss. Thus sale of goods under Ind AS has increased by ` 296 Crs with a corresponding increase in other expense. Also Cash discount was presented under Finance Cost under Indian GAAP. However, under Ind AS, the same has been netted off from Sale of goods. 12. Other comprehensive income Under Indian GAAP, the Group has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP profit or loss to profit or loss as per Ind AS. Further, Indian GAAP profit or loss is reconciled to total comprehensive income as per Ind AS. 13. Derivative instruments Under IGAAP derivative contracts were marked to market on portfolio basis and the net loss was charged to statement of profit and loss and net gains were ignored. However, under Ind AS derivative financial instruments are required to be measured at their fair value. Thus, Group has recognised a gain of ` 8 crs in the year ended March 31, 2016 on account of fair value of derivative instruments that was ignored under IGAAP.

|587| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards 14. Deferred Tax Assets on unrealised profits resulting from intra group transactions Under Indian GAAP, unrealised profits resulting from intragroup transactions are eliminated from the carrying amount of assets, such as inventory or property, plant or equipment, but no equivalent adjustment is made for tax purposes. Under Ind AS, where the carrying amount of the asset in the consolidated financial statements is lower than the tax base of the transferred asset (for the transferee), results in recognition of deductible temporary difference on which a deferred tax asset is recognised. Thus, the Group has recognised deferred tax asset on stock reserve amounting to ` 98 Crs as at April 01, 2015 (the date of transition) and ` 172 Crs as at March 31, 2016. 15. Defined benefit liabilities Both under Indian GAAP and Ind AS, the Group recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, remeasurements [comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability] are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI. Thus the employee benefit cost is reduced by INR 2 Crs and Remeasurement gains/losses on defined benefit plans has been recognized in the OCI net of tax. 16. Share-based payments Under Indian GAAP, the Group recognised only the intrinsic value for the long-term incentive plan as an expense. Ind AS requires the fair value of the share options to be determined using an appropriate pricing model recognised over the vesting period. Share options totalling ` 2 Crs which were granted before and still vesting at 1 April 2015, have been recognised as a separate component of equity in Share based payments reserve against retained earnings at 1 April 2015. 17. Impact of change in value of Contingent consideration after measurement period Under Indian GAAP, any change in the value of contingent consideration that the acquirer recognised after the acquisition date was adjusted to Goodwill. However, under Ind AS, the change shall be recognised in statement of profit and loss. Accordingly, the Group has recognised loss amounting to ` 16 Crs in statement of Profit and loss for the year ended 31 March, 2016. 18. Joint Venture The Group holds 40% interest in Hodogaya Co Ltd and exercises joint control over the entity. On transition to Ind AS the Group has assessed and determined Hodogaya Co Ltd as its Joint Venture under Ind AS 111 Joint Arrangements. Under Indian-GAAP Group had proportionately consolidated its interest in the Joint venture in the Consolidated Financial Statement. However, under Ind AS, it needs to be accounted for using the equity method as against proportionate consolidation. On application of equity method the investment stands increased by INR 14 Crs on 1 April 2015. Derecognition of proportionately consolidation of Joint venture has resulted in change in balance sheet, statement of profit and loss and cash flow statement. For its impact on the financial statement refer note 33. 19. Business Combination The group has elected to restate past business combinations and has selected to apply Ind-AS 103 retrospectively from 1st June 2005. Hence, in accordance with para C1 of Ind-AS 101, the Group has restated all the business combinations after that data and has also applied Ind AS 110 from that date to all those business combinations. Measurement principle stated under para 18 of Ind AS 103 require that the acquirer shall measure the identifiable assets acquired and the liabilities assumed at their acquisitiondate fair values. However, the current Indian GAAP does not permit measurement of assets and liabilities at fair value acquired in a business combination. On application of the above recognition principle, certain intangible and tangible assets acquired on business combinations were identified and amortised/depreciated over their useful lives by the Group and recognized in the books as under:

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |588| INR Crores 31 Mar 2016 01 Apr 2015 Increase in Intangible Assets 82 197 Increase in Tangible Assets 16 16 Reduction in Goodwill (1,289) (1,273) (1,191) (1,060) Depreciation and amortisation of these tangibles and intangibles amounted to ` 111 crores 20. Restatement of prior period error Under IGAAP, the Group had recorded prior period expense (net) amounting to ` 14 Crores in the statement of Profit and loss for the year ended March 31, 2016. However, in accordance with the requirements of Ind AS the same has been recognised by restating the retained earnings as on April 01, 2015 21. Trade receivables Under Indian GAAP, Debtors factoring and Bills discounted with recourse was treated as a contingent liability, however under Ind AS the same is recognised as a Obligation with corresponding debit to Trade receivables. Accordingly, ` 92 Crs as at April 01, 2015 and ` 60 Crs as at March 31, 2016 has been recognised as liability under borrowings with corresponding grossing up of debtors. 22. Functional Curency Under Ind AS, an entity shall determine its functional currency which can be different from its local currency on the basis of primary economic environment in which the entity operates, i.e. primarily generates and expends cash. Once determined, entity translates foreign currency items into its functional currency and reports the effects of such translation from the date of the transaction in accordance with Ind AS 21. The net impact on account of change in functional currencies for various assets and liabilities of three subsidiaries of the group as on the transition date is ` 31 Crs that has been adjusted to retained earnings. 23. Unconsolidated Subsidiaries Under Indian GAAP, Advanta Limited and Agrinet Solutions Limited were treated as associates and accounted by applying equity method in the consolidated financial statements. Under Ind AS, these entities have been treated as subsidiaries in accordance with Ind AS 110 Consolidated financial statements and accordingly have been retrospectively consolidated using line by line consolidation. Accordingly, carrying value of investments have been changed which resulted in change in the balance sheet, statementof profit and loss and cash flow statements. The resulting difference of ` 179 Crs has been recognised in the retained earnings. Further, on account of merger of Advanta Limited with UPL Limited w.e.f. April 1, 2015 as described in Note 30, the difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received, and attributable it to the owners of the parent has been recognised in Equity as on April 1, 2015. 24. Statement of cash flows The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows 17. VEDANTA LIMITED EXPLANATION OF TRANSITION TO IND AS These are the Group’s first consolidated financial statements prepared in accordance with Ind AS. The accounting policies set out in note 3 have been applied in preparing the financial statements for the year ended March 31, 2017 and the comparative period information.

|589| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards For all periods up to and including the year ended March 31, 2016, the Group prepared its financial statements in accordance with Generally Accepted Accounting Principles (GAAP) in India and complied with the accounting standards as notified under Section 133 of the Companies Act, 2013 read together with Rule 7 of the Companies (Accounts) Rules, 2014, to the extent applicable, and the presentation requirements of the Companies Act, 2013 (Previous GAAP). The transition to Ind AS was carried out in accordance with Ind AS 101, with April 01, 2015 being the date of transition. This note explains the exemptions on the firsttime adoption of Ind AS availed in accordance with Ind AS 101 and an explanation of how the transition from previous GAAP to Ind AS has affected the Group’s financial position, financial performance and cash flows. Exemptions availed and mandatory exceptions Ind AS 101 First-time Adoption of Indian Accounting Standards allows first-time adopters certain exemptions from retrospective application of certain requirements under Ind AS. Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS. A) Ind AS optional exemptions A.1 Fair valuation as deemed cost for certain items of Property, plant and equipment Ind AS 101 permits an entity to elect to measure an item of property, plant and equipment at the date of transition to Ind AS at its fair value and use that fair value as its deemed cost at that date. Accordingly, the Group has elected to use the fair value of certain items of property, plant and equipment on the date of transition and designate the same as deemed cost on the date of transition. Fair value has been determined, by obtaining an external third party valuation,with reference to the depreciated replacement cost of similar assets, a level 3 valuation technique. For the remaining assets, the Group has applied Ind AS retrospectively, from the date of their acquisition. A.2 Designation of previously recognised financial instruments Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS. The Group has elected to apply this exemption for its equity investment. A.3 Leases Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS. The Group has elected to apply this exemption for such contracts/arrangements. A.4 Long Term Foreign Currency Monetary Items Ind AS 101 allows a first-time adopter to continue the policy adopted for the accounting for exchange differences arising on translation of the long-term foreign currency monetary items recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per previous GAAP. The Group has opted this exemption and continued its previous GAAP policy for accounting of exchange differences on long-term foreign currency monetary items recognized in the previous GAAP financial statements for the year ended March 31, 2016. Accordingly, foreign currency differences on such items attributable to the acquisition of property, plant and equipment are adjusted against their cost and depreciated prospectively over the remaining useful lives. A.5 Joint ventures – transition from proportionate consolidation to the equity method As per Ind AS 101, when changing from proportionate consolidation method to equity method, an entity may measure its investment in a joint venture at the date of transition as the aggregate of the carrying amounts of the assets and liabilities that the entity had previously proportionately consolidated, including any goodwill arising from acquisition. The resultant amount is regarded as the deemed cost of the investment in the joint venture at initial recognition. The Group has elected to avail this exemption.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |590| A.6 Stripping costs in the production phase of a surface mine Ind AS 101 permits a first-time adopter to apply the guidance in Appendix B of Ind AS 16 –‘Stripping Costs in the Production Phase of a Surface Mine’ from the date of transition to Ind AS. Accordingly, the Group has opted to capitalize stripping cost (incurred during the production phase) from the date of transition to Ind AS. A.7 Cumulative translation differences Ind AS 21 ‘The effects of changes in Foreign Exchange Rates’ requires an entity to recognize the translation differences relating to foreign operations in other comprehensive income (and accumulate them in a separate component of equity) and on disposal of such foreign operation, to reclassify the cumulative translation difference for that foreign operation from equity to profit or loss as part of the gain or loss on disposal. Ind AS 101 allows an entity to elect not to apply the requirements of Ind AS 21 retrospectively and to deem the cumulative translation differences for all foreign operations to be zero as at the date of transition. The Group has elected to avail the above exemption. A.8 Share based payment transactions As per Ind AS 101 an entity is encouraged, but not required, to apply Ind AS 102 Share-based payment to equity instruments that vested before date of transition to Ind AS. Therefore, the Group has availed optional exemption and applied Ind AS 102 from all period beginning on or after date of transition. A.9 Compound financial instruments Ind AS 101 permits a first-time adopter not to split the compound financial instrument into separate liability and equity components in accordance with Ind AS 32 Financial Instruments: Presentation, if the liability component is no longer outstanding at the date of transition to Ind AS. Accordingly, as the liability component of compound financial instrument was no longer outstanding at the date of transition to Ind AS, the Group has elected not to apply Ind AS 32 retrospectively to split the liability and equity components of the instrument. B) Ind AS mandatory exceptions B.1 Accounting estimates An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at April 1, 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Group made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP: - Investment in equity instruments carried at FVOCI; - Investment in debt instruments and compound instruments carried at FVTPL/FVOCI; - Impairment of financial assets based on expected credit loss model. B.2 Hedge accounting Hedge accounting can only be applied prospectively from the transition date to transactions that satisfy the hedge accounting criteria in Ind AS 109, at that date. Hedging relationships cannot be designated retrospectively, and the supporting documentation cannot be created retrospectively. As a result, only hedging relationships that satisfied the hedge accounting criteria as of April 1, 2015, are reflected as hedges in the Group’s results under Ind AS. The Group had designated various hedging relationships as cash flow hedge, hedge of net investment in foreign operation and fair value hedges under the previous GAAP. On the date of transition to Ind AS, the Group has assessed that all the designated hedging relationship qualifies

|591| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards for hedge accounting as per Ind AS 109. Consequently, the Group continues to apply hedge accounting on and after the date of transition to Ind AS. B.3 De-recognition of financial assets and liabilities Ind AS 101 requires a first-time adopter to apply the derecognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a firsttime adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entity’s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions. The Group has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS. B.4 Classification and measurement of financial assets Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable. Accordingly, the Group has determined the classification of financial assets bases on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable. Reconciliation of Equity as per the erstwhile Indian GAAP as previously reported and Ind AS is as follows: (` in Crore) Particulars Note ref. As at March 31, 2016 As at April 01, 2015 Equity as per Previous GAAP Adjustments 77,639.72 89,405.01 Effect of measuring investments at fair value (i) 6,120.62 5,158.59 Fair valuation of items of property, plant and equipment as deemed cost & effect of depreciation thereon (ii) (1,724.95) 3,610.57 Recognition of fair value of property,plant and equipment net of accumulated depreciation/amortisation and impairment (iii) 249.19 23,081.70 Change in foreign currency translation reserve/foreign exchange fluctuation (iv) 1,851.87 17.91 Discounting of site restoration liability and mine closure liability (v) 186.11 254.21 Dividend and tax on dividend (vi) - 698.97 Others (vii) 154.30 98.37 Deferred tax impact (viii) (3,876.60) (16,812.56) Equity as per Ind AS 80,600.26 1,05,512.77 Reconciliations of net profit as per erstwhile Indian GAAP as previously reported and Ind AS is as follows: (` in Crore) Particulars Note Year ended March 31, 2016 Net loss as per Previous GAAP (6,136.97) Adjustments Effect of measuring investments at fair value (i) 962.03 Depreciation on fair valuation of items of property,plant and equipment (ii) 62.26 Change in depletion,depreciation and capitalisation of exploration costs-oil and gas business, mining assets and other assets (iii) (1,608.91) Impairment of property,plant and equipment net of reversal of impairment of goodwill under

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |592| (` in Crore) Particulars Note Year ended March 31, 2016 Previous GAAP (iii) (21,332.82) Effect of change in foreign exchange fluctuation- Oil and Gas business (iv) (946.00) Others (v), (vii) 23.89 Deferred tax impact (viii) 12,735.17 Deferred tax on undistributed profits of subsidiary (viii) (1,621.04) Net profit/(loss) as per Ind AS (17,862.39) Other Comprehensive Income 400.13 Total Comprehensive income as per Ind AS (17,462.26) Notes on adjustments (i) Current Investments Under the previous GAAP, investments were measured at lower of cost or fair value. Under Ind AS, these investments are required to be measured at fair value through profit or loss or though other comprehensive income. The resulting fair value changes of these investments is recognised in retained earnings/equity as at the date of transition and subsequently in profit or loss/other comprehensive income for the year ended March 31, 2016 Accordingly, there is an increase in the equity by ` 6,120.62 Crore as at March 31, 2016 (` 5,158.59 Crore as at April 1, 2015) and loss before tax for the year ended March 31, 2016 has reduced by ` 962.03 Crore. (ii) Property, plant and equipment Government grant and fair valuation as deemed cost for certain items: Under Ind AS, the transfer of resources from the government in the form of a waiver of duty needs to be accounted for as government grant. Accordingly, the duty benefit availed under Export Promotion Capital Goods (EPCG) Scheme and SEZ scheme on purchase of plant and equipments has been recognised as government grant by an increase in the carrying value of plant and equipment with a corresponding credit to the deferred government grant. The increase in the value of plant and equipment is depreciated over the balance useful life of the asset. The deferred grant revenue is released to the profit or loss over the expected useful life in a pattern of consumption of the benefit of the underlying asset. Under Previous GAAP such benefits were being netted off with the cost of the respective item of plant and equipment. This has resulted in net increase in the value of plant and equipment and capital work-inprogress by ` 4,372.92 Crore and ` 4,412.25 Crore as at March 31, 2016 and April 1, 2015 respectively. There is no resultant impact on equity. Further, as explained above, the Group has elected to measure certain items of property, plant and equipment at the date of transition at its fair value and use that fair value as its deemed cost as at that date. For the remaining assets, the Group has applied Ind AS retrospectively, from the date of their acquisition. A similar revaluation of assets was carried out under previous GAAP during the year ended March 31, 2016, which has been reversed on transition. Accordingly, this has resulted in net decrease in the value of property, plant and equipment by ` 1,724.95 Crore and increase by ` 3,610.57 Crore as at March 31, 2016 and April 1, 2015 respectively with corresponding adjustment to equity. Consequentially, the depreciation charge for year ended March 31, 2016 is lower by ` 62.26 Crore (iii) Changes in value of Property,Plant and Equipment and Intangible assets (` in Crore) Particulars Note ref. Equity As at March 31, 2016 Equity As at April 01, 2015 Due to restatement of past business combinations (a) 292.66 22,195.33 Changes in method of depreciation and carrying value of Exploration and Evaluation assets (b) (43.47) 886.37 Total (a+b) 249.19 23,081.70

|593| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards a) Past Business Combinations The Group has elected to apply Ind AS 103 retrospectively to all past business combinations. Retrospective application of Ind AS 103 requires that each business combination should be accounted for by applying the acquisition method i.e. by recognizing and measuring the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree; and recognising and measuring goodwill or a gain from a bargain purchase. Such adjustments have resulted into: Increase in property, plant and equipment by ` 5,925.38 Crore as at March 31, 2016 and ` 39,985.02 Crore as at April 01, 2015 respectively*. Reversal of goodwill of ` 5,632.72 Crore and ` 17,789.69 Crore as at March 31, 2016 and April 01, 2015 respectively*. Resulting in a net increase in retained earnings by ` 292.66 Crore as at March 31,2016 and ` 22,195.33 Crore as at April 01,2015 respectively. Increase in loss before tax for the year ended March 31, 2016 by ` 21,995.07 Crore on account of increase in depreciation and amortization expense by ` 1,404.42 Crore and on account of impairment of property,plant and equipment by ` 20,590.65 Crore net of amortisation/ impairment of goodwill. *Net of depreciation/amortization/impairment from the date of respective business combination to the date of transition/reporting date. b) Change in depletion, depreciation and capitalization of exploration costs Net impact mainly is on account of following transactions: Exploration and evaluation assets: Under Previous GAAP, exploration expenditure incurred in the process of determining exploration targets which cannot be directly related to individual exploration wells is expensed in the period in which it is incurred. Drilling costs were written off on completion of a well unless the results indicate that oil and gas reserves exist and there is a reasonable prospect that these reserves are commercial. Under Ind AS, exploration expenditure incurred in the process of determining oil & gas exploration targets is capitalised initially within property, plant and equipment – exploration and evaluation assets and subsequently allocated to drilling activities. Drilling costs are written off on completion of a well unless the results indicate that oil and gas reserves exist and there is a reasonable prospect that these reserves are commercial. The resulting adjustment has been recognised against retained earnings. Depletion For depletion accounting in Oil and Gas business, previous GAAP specified use of working interest on proved and developed reserves (or 1P reserves) with current asset base, for calculation of depletion under unit of production methodology. However, under Ind AS proved and probable reserves (or 2P reserves) on entitlement interest basis are required to be depleted. Similarly, the future capital expenditure estimated to develop those undeveloped reserves is required to be added to the current asset base for depletion computation. Accordingly, property, plant and equipment as at March 31,2016 has decreased by ` 43.47 Crore and as at April 01,2015 has increased by `886.37 Crore with a corresponding adjustment in retained earnings. The loss before tax for the year ended March 31, 2016 has increased by ` 204.49 Crore on account of change in depletion/depreciation and ` 742.17 Crore on account of impairment of oil and gas assets. (iv) Functional Currency Under the previous GAAP, Cairn and the foreign subsidiaries were preparing their financial statements in Indian Rupee. Accordingly, the impact of exchange fluctuation on all monetary items denominated in non-Indian Rupee was accounted for in the statement of profit and loss. Accordingly every business and component of the Group has reassessed its functional currency and exchange differences have arisen for transactions being recorded in a currency other than functional currency. Further, the Group reporting currency remains to be Indian Rupee, the impact on account of translation of items for which functional currency is USD are accounted for in “Other Comprehensive Income (OCI)” as part of Foreign Exchange Translation Reserve (FCTR). Consequently, the currency translation reserve as at March 31,2016 has

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |594| increased by ` 2,779.96 Crore. The retained earnings as at March 31,2016 has decreased by ` 928.09 Crore and as at April 01,2015 has increased by ` 17.91 Crore and the loss before tax for the year ended March 31, 2016 has increased by ` 946.00 Crore. (v) Property, plant and equipment - Site restoration obligation Under Previous GAAP, the full cost of site restoration is recognised as a liability when the obligation to rectify environmental damage arises. The site restoration expenses forms part of the cost of the related asset. Under Ind AS, the site restoration cost is recognised in full, on a discounted basis, as an asset, and on a similar basis decommissioning liability is recognised. The difference on account of the same has been recognized against retained earnings. Accordingly, property, plant & equipment has reduced by ` 129.85 Crore as at March 31, 2016 and ` 148.16 Crore as at April 01, 2015 and ‘Provision for restoration, rehabilitation and environmental costs’ has decreased by ` 397.56 as at March 31, 2016 and by ` 402.37 Crore as at April 01, 2015. Consequently, the retained earnings increased by ` 186.11 Crore (excluding the impact of currency translation) and ` 254.21 Crore as at March 31, 2016 and April 01, 2015 respectively. Loss before tax for the year ended on March 31, 2016 has increased by ` 68.10 Crore on account of unwinding of provision presented under “Others” in net profit reconciliation. (vi) Proposed dividend Under the previous GAAP, dividend payable is recognised as a liability in the period to which it relates. Under Ind AS, dividend to holders of equity instruments is recognised as a liability in the period in which the obligation to pay is established. Under the previous GAAP, dividends proposed by the Board of Directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend of ` 698.97 Crore as at April 1, 2015 (including tax on proposed dividend of ` 2.19 Crore) included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity as at April 01, 2015 increased by an equivalent amount. (vii) Others : Others include following (` in Crore) Particulars Note ref. Equity As at March 31, 2016 Equity as at April 01,2015 Profit for the year ended March 31,2016 Port Service concession arrangement a) 57.04 34.66 22.38 Stripping Cost in the production phase of surface mine b) 72.17 - 76.54 Deferred Sales Tax liability c) 36.54 42.29 (5.75) Investment in Equity instruments d) 32.31 19.77 (4.50) Re-measurement gains or losses e) - - 9.17 Other adjustments f) (43.76) 1.65 (73.95) Total 154.30 98.37 23.89 a) Intangible assets under Port concession arrangement As per Appendix A to Ind AS 11 ‘Construction Contracts’, an operator providing a public service such as development of infrastructure shall recognise an intangible asset to the extent that it receives a right (a licence) to charge users of the public service. The consideration paid for acquiring such assets has been recognised as an intangible asset following the guidance in Appendix A to Ind AS 11. The Group has recognised the right to charge the users acquired under service concession arrangements as “License” by reclassifying the amount of “Property, plant and equipment” and “Capital-work-in-progress to “Other intangible assets”. Accordingly, net block of “Plant and Machinery” as per retrospective application of Ind AS as on the date of transition, amounting to ` 615.89 Crore has been reclassified as “Intangible Assets – Service Concession”.

|595| Chap. 22 – Ind AS 101 — First-time Adoption of Indian Accounting Standards In accordance with Ind AS 38, intangible asset is amortised on a straight line basis over the period in which it is expected to be available for use by the operator. Accordingly an amount of ` 57.04 Crore and ` 34.66 Crore has been credited to retained earnings as at March 31, 2016 and April 01, 2015 respectively on account of difference in value of amortisation. Loss before tax for the year ended March 31, 2016 has been reduced by ` 22.38 Crore. b) Stripping costs in the production phase of a surface mine Under previous GAAP there was no specific guidance for accounting of costs incurred in removing mine waste material to gain access to mineral ore deposits i.e. ‘stripping’. Under Ind AS, to the extent that the benefit from the stripping activity is realised in the form of inventory produced, the costs of that stripping overburden removal activity is accounted for in accordance with the principles of Ind AS 2, Inventories. To the extent the benefit is improved access to ore, these costs are accounted for as non-current asset, if certain criteria are met. Accordingly, property, plant and equipment has been increased by ` 72.17 Crore as at March 31, 2016. The loss before tax for the year ended March 31, 2016 has decreased by ` 76.54 Crore (net of consequential impact of depreciation). c) Deferred Sales tax liability Under Ind AS, the benefit of government loans with subsidised/nil interest is accounted for as government grant, measured as the difference between the fair value determined in accordance with Ind AS 109 and the proceeds received from the loan. Such borrowings were initially measured at fair value and thereafter at amortised cost as at March 31, 2016 and April 01, 2015 leading to a reduction in loan value by ` 36.54 Crore and ` 42.29 Crore respectively with a corresponding increase in retained earnings. Loss before tax for the year ended March 31, 2016 has increased by ` 5.75 Crore on account of recognition of interest at effective interest rate. d) Investment in equity instruments of a Company other than subsidiaries, joint ventures and associates: Under the previous GAAP, investments in equity instruments were carried at cost less provision for other than temporary decline in the value of such investments. Under Ind AS, such investments (in Companies other than subsidiaries, joint ventures and associates) are required to be measured at fair value. These investments have been designated as Fair Value through OCI and accordingly, the fair value changes with respect to such investments have been recognised in OCI – ‘Equity investments at FVOCI’ and subsequently in other comprehensive income for the year ended March 31, 2016. This has resulted in increase in the carrying value of investment by ` 32.31 Crore and `19.77 Crore as at March 31, 2016 and April 01, 2015 respectively with corresponding adjustment to equity. The effect of the same has led to an increase in other comprehensive income of ` 17.04 Crore and decrease in the statement of profit and loss by ` 4.50 Crore for the year ended March 31, 2016. e) Re-measurement gains or losses Ind AS 19 Employee Benefits requires the impact of re-measurement in net defined benefit liability (asset) to be recognized in other comprehensive income (OCI).Re-measurement of net defined benefit liability (asset) comprises actuarial gains and losses, return on plan assets (excluding interest on net defined benefit asset/liability). However, under previous GAAP this was recognised in the statement of profit and loss. Accordingly, loss for the year ended March 31, 2016 has reduced by ` 9.17 Crore and other comprehensive loss has increased by ` 9.17 Crore. f) Other adjustments Other adjustments include adjustment in respect of effective interest rate in case of borrowings, capitalisation of major inspection and overhaul costs etc. viii) Deferred Tax Previous GAAP required deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |596| between the carrying amount of an asset or liability in the balance sheet and its tax base. In addition, under Previous GAAP, tax expense in the consolidated financial statements were computed by performing line by line addition of tax expense of the parent and its subsidiaries with no adjustment being made for elimination of intra group transactions and profit/losses. Ind AS requires tax adjustments to be accounted for on such elimination. Further, Ind AS also requires the recognition of deferred tax on undistributed profits of subsidiaries, joint ventures and associates. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Previous GAAP. In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the Group has to account for such differences. Deferred tax has been recognised on such temporary differences. ix) Sale of goods Under previous GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is separately presented in the statement of profit and loss. Thus sale of goods under Ind AS for the year ended March 31, 2016 has increased by ` 3,730.95 Crore with a corresponding increase in expense. x) Grossing up of Joint Operation liabilities Under Previous GAAP, the Cairn India Limited (Cairn) accounts for its share of the assets and liabilities of Joint Ventures involving joint control of assets along with income and expenses in which it holds a participating interest. Under Ind AS if Cairn participates in unincorporated Joint Arrangements which involves the joint control of assets, Cairn India Group accounts for its share of liabilities of the Joint Operation in which Cairn holds an interest, classified in the appropriate Balance Sheet heading on a gross basis, i.e. the liabilities to be settled by all partners are grossed up in operator’s books to represent total Joint Operation liabilities, with a corresponding receivable from other venture partners. xi) Other Comprehensive Income (OCI) Includes (a) Foreign currency translation reserve of ` 376.84 Crore as described in (iv) above; (b) Fair value gains of `17.04 Crore on equity instruments as described in (vii)(d) above ;and (c) Other adjustments of ` 6.25 Crore. Reconciliation of cash flows for the year ended March 31, 2016 As a result of transition to Ind-AS operating cash inflows (net) and financing cash outflows (net) for the year ended March 31, 2016 have decreased by ` 443.24 Crore, as the dividend distribution tax paid by subsidiaries is being treated as a tax expense as against the Previous GAAP practice of adjusting it against equity (refer (viii) above). All other changes enumerated above do not have any material impact on the cash flows statement. ll

|597| Chap. 23 – Ind AS 102 — Share-based Payment Chapter 23 Ind AS 102 — Share-based Payment 1. BHARTI AIRTEL LIMITED ACCOUNTING POLICY Share-based payments The Company operates equity-settled and cash settled, employee share-based compensation plans, under which the Company receives services from employees as consideration for stock options either towards shares of the Company/cash settled units. In case of equity-settled awards, the fair value is recognised as an expense in the statement of profit and loss within employee benefits as employee share-based payment expenses, with a corresponding increase in share-based payment reserve (a component of equity). However, in case of cash-settled awards, the credit is recognised as a liability within other nonfinancial liabilities. Subsequently, at each reporting period, until the liability is settled, and at the date of settlement, liability is re-measured at fair value through statement of profit and loss. The total amount so expensed is determined by reference to the grant date fair value of the stock options granted, which includes the impact of any market performance conditions and non-vesting conditions but excludes the impact of any service and nonmarket performance vesting conditions. However, the non-market performance vesting and service conditions are considered in the assumption as to the number of options that are expected to vest. The forfeitures are estimated at the time of grant and reduce the said expense rateably over the vesting period. The expense so determined is recognised over the requisite vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. As at each reporting date, the Company revises its estimates of the number of options that are expected to vest, if required. It recognises the impact of any revision to original estimates in the period of change. Accordingly, no expense is recognised for awards that do not ultimately vest, except for which vesting is conditional upon a market performance/non-vesting condition. These are treated as vesting irrespective of whether or not the market/ non-vesting condition is satisfied, provided that service conditions and all other non-market performance are satisfied. Where the terms of an award are modified, in addition to the expense pertaining to the original award, an incremental expense is recognised for any modification that results in additional fair value, or is otherwise beneficial to the employee as measured at the date of modification. Where an equity-settled award is cancelled (including due to non-vesting conditions not being met), it is treated as if it is vested thereon, and any un-recognised expense for the award is recognised immediately. This includes any award where non-vesting conditions within the control of either the entity or the employee are not met. However, if a new replacement award is substituted for the cancelled award, the arrangement is treated as a modification and accounted accordingly. Ind AS 102, ‘Share based payments’ In March 2017, MCA issued amendments to Ind AS 102 pertaining to measurement of cash–settled share based payments, classification of share based payments settled net of tax withholdings and accounting for modification of a share based payment from cash-settled to equity-settled method. The amendments are applicable to annual periods beginning on or after April 1, 2017 with early adoption permitted. The Company does not expect that the adoption of the amendments will not have any significant impact on the said financial statements.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |598| Disclosure Share based payment plans The following table provides an overview of all existing share option plans of the Company: Scheme Plan Vesting period (years) Contractual term (years) Equity settled Plans Scheme I 2006 Plan 1 - 5 7 Scheme 2005 2008 Plan & Annual Grant Plan (AGP) 1 - 3 7 Scheme 2005 Performance Share Plan (PSP) 2009 Plan 3 - 4 7 Scheme 2005 Special ESOP & Restricted Share Units (RSU) Plan 1 - 5 7 Scheme 2005 Long Term Incentive (LTI) Plan 1 - 3 7 Cash settled Plans Performance Unit Plan (PUP) Performance Unit Plan (PUP) 2013, 2014 & 2015 1 - 4 3-5 The stock options vesting are subject to service and certain performance conditions mainly pertaining to certain financial parameters. The movement in the number of stock options and the related weighted average exercise prices are as follows: Particulars For the year ended March 31, 2017 For the year ended March 31, 2016 Number of share options (’000) Weighted average exercise price (`) Number of share options (’000) Weighted average exercise price (`) 2006 Plan Outstanding at beginning of year 305 5.00 390 5.00 Granted - - - - Exercised (100) 5.00 (75) 5.00 Forfeited/Expired - - (10) 5.00 Outstanding at end of year 205 5.00 305 5.00 Exercisable at end of year 36 5.00 30 5.00 2008 Plan and AGP Outstanding at beginning of year 639 402.50 2,534 355.45 Granted - - - - Exercised - - (686) 334.89 Forfeited/Expired (639) 402.50 (1,209) 342.24 Outstanding at end of year - - 639 402.50 Exercisable at end of year - - 639 402.50 PSP 2009 Plan Outstanding at beginning of year 53 5.00 83 5.00 Granted - - - - Exercised (37) 5.00 (22) 5.00 Forfeited/Expired (10) 5.00 (8) 5.00 Outstanding at end of year 6 5.00 53 5.00 Exercisable at end of year 5 5.00 53 5.00 Special ESOP and RSU Plan Outstanding at beginning of year 126 5.00 189 5.00 Granted - - - - Exercised (91) 5.00 (44) 5.00 Forfeited/Expired (1) 5.00 (19) 5.00 Outstanding at end of year 34 5.00 126 5.00 Exercisable at end of year 34 5.00 126 5.00

|599| Chap. 23 – Ind AS 102 — Share-based Payment Particulars For the year ended March 31, 2017 For the year ended March 31, 2016 Number of share options (’000) Weighted average exercise price (`) Number of share options (’000) Weighted average exercise price (`) LTI Plans Outstanding at beginning of year 1,709 5.00 523 5.00 Granted 820 5.00 1,576 5.00 Exercised (308) 5.00 (201) 5.00 Forfeited/Expired (219) 5.00 (189) 5.00 Outstanding at end of year 2,002 5.00 1,709 5.00 Exercisable at end of year 358 5.00 208 5.00 PUP Number of shares under option: Outstanding at beginning of year 3,118 - 4,801 - Granted 9 - 18 - Exercised (1,257) - (822) - Forfeited/Expired (469) - (879) - Outstanding at end of year 1,401 - 3,118 - Exercisable at end of year - - - - The following table summarises information about weighted average remaining contractual life, weighted average fair value and weighted average share price for the options: Plan Weighted average remaining contractual life for the options outstanding as of (years) Weighted Avg Fair Value for the options granted during the year ended (`) Weighted average share price for the options exercised during the year ended (`) March 31, 2017 March 31, 2016 April 1, 2015 March 31, 2017 March 31, 2016 April 1, 2015 March 31, 2017 March 31, 2016 April 1, 2015 Equity settled Plans 2006 Plan 4.07 5.00 5.86 - - 361.19 316.50 350.45 371.70 2008 Plan & AGP - 0.25 0.63 - - - - 397.45 383.30 PSP 2009 Plan 0.34 0.69 1.87 - - - 346.84 367.51 352.26 Special ESOP & RSU Plan 0.10 1.20 2.26 - - - 329.91 319.66 350.09 LTI Plan (2011, 2012, 2015 & 2016) 5.65 5.98 4.27 338.50 398.32 291.63 296.90 348.28 368.36 Cash settled Plans PUP 2013, 2014 & 2015 1.20 1.85 2.58 379.25 361.11 389.29 466.38 420.81 354.24 The carrying value of cash settled plans liability is ` 141, ` 697 and ` 658 as of March 31, 2017, March 31, 2016 and April 1, 2015, respectively. The fair value of options is measured using Black-Scholes valuation model. The key inputs used in the measurement of the grant date fair valuation of equity settled plans and fair value of cash settled plans are given in the table below: Particulars For the year ended March 31, 2017 For the year ended March 31, 2016 Risk free interest rates 5.79% to 6.86% 6.86% to 7.83% Expected life 4 to 60 months 4 to 60 months Volatility 27.08% to 27.59% 26.63% to 27.45% Dividend yield 0.39% to 0.63% 0.54% to 0.63% Wtd average exercise price (`) 0 to 5 0 to 5 The expected life of the stock options is based on the Company’s expectations and is not necessarily indicative of exercise patterns that may actually occur. The expected volatility reflects the assumption that

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |600| the historical volatility over a period similar to the expected life of the options is indicative of future trends, which may not necessarily be the actual outcome. Further, the expected volatility is based on the weighted average volatility of the comparable benchmark companies. 2. BIOCON LIMITED ACCOUNTING POLICY Share-based compensation The grant date fair value of equity settled share-based payment awards granted to employees is recognised as an employee expense, with a corresponding increase in equity, over the period that the employees unconditionally become entitled to the awards. The amount recognised as expense is based on the estimate of the number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the number of awards that do meet the related service and non-market vesting conditions at the vesting date. Ind AS 102 Share based Payment has not been applied to equity instruments in share based payment transactions that vested before April 1, 2014. For cash settled share based payment transactions, the Company has not applied Ind AS 102 to liabilities that were settled before April 1, 2014. Disclosure 31. Employee stock compensation (a) Biocon ESOP Plan On September 27, 2001, Biocon’s Board of Directors approved the Biocon Employee Stock Option Plan (‘ESOP Plan 2000’) for the grant of stock options to the employees of the Company and its subsidiaries/joint venture company. The Nomination and Remuneration Committee (‘Remuneration Committee’) administers the plan through a trust established specifically for this purpose, called the Biocon India Limited Employee Welfare Trust (ESOP Trust). The ESOP Trust shall make additional purchase of equity shares of the Company using the proceeds from the loan obtained from the Company, other cash inflows from allotment of shares to employees under the ESOP Plan and shall subscribe, when allotted to such number of shares as is necessary for transferring to the employees. The ESOP Trust may also receive shares from the promoters for the purpose of issuance to the employees under the ESOP Plan. The Remuneration Committee shall determine the exercise price which will not be less than the face value of the shares. Grant IV In July 2006, the Company approved the grant of 3,478,200 options (face value of shares - ` 5 each) to its employees under the existing ESOP Plan 2000. The options under this grant would vest to the employees as 25%, 35% and 40% of the total grant at the end of first, second and third year from the date of grant for existing employees and at the end of 3rd, 4th and 5th year from the date of grant for new employees. Exercise period is 3 years for each grant. The conditions for number of options granted include service terms and performance grade of the employees. These options are exercisable at a discount of 20% to the market price of Company’s shares on the date of grant.

|601| Chap. 23 – Ind AS 102 — Share-based Payment Details of Grant IV Particulars March 31, 2017 March 31, 2016 Number of Options Weighted Average Exercise Price (`) Number of Options Weighted Average Exercise Price (`) Outstanding at the beginning of the year 3,500 231 61,625 187 Granted during the year - - - - Forfeited during the year - - - - Exercised during the year 2,500 231 55,250 179 Expired during the year 1,000 231 2,875 154 Outstanding at the end of the year - - 3,500 231 Exercisable at the end of the year - - 3,500 231 Weighted average remaining contractual life (in years) - - 0.3 - Range of exercise prices for outstanding options at the end of year (`) - - 231 - Grant V In April 2008, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this grant would vest to the employees as 25%, 35% and 40% of the total grant at the end of first, second and third year from the date of grant for existing employees and at the end of 3rd, 4th and 5th year from the date of grant for new employees. Exercise period is 3 years for each grant. The conditions for number of options granted include service terms and performance grade of the employees. These options are exercisable at the market price of Company’s shares on the date of grant. Details of Grant V Particulars March 31, 2017 March 31, 2016 Number of Options Weighted Average Exercise Price (`) Number of Options Weighted Average Exercise Price (`) Outstanding at the beginning of the year 791,875 343 1,151,975 336 Granted during the year - - - - Forfeited during the year 74,625 344 269,087 324 Exercised during the year 221,388 307 91,013 303 Expired during the year - - - - Outstanding at the end of the year 495,862 357 791,875 343 Exercisable at the end of the year 135,175 312 220,638 310 Weighted average remaining contractual life (in years) 2.5 - 4.6 - Range of exercise prices for outstanding options at the end of year (`) 221-471 - 197-531 - Grant VI In July 2014, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this grant would vest to the employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth year from the date of grant, respectively, with an exercise period ending one year from the end of last vesting. The vesting conditions include service terms and performance grade of the employees. These options are exercisable at the closing market price of Company’s shares existing on the date preceding to the date of grant.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |602| Particulars March 31, 2017 March 31, 2016 Number of Options Weighted Average Exercise Price (`) Number of Options Weighted Average Exercise Price (`) Outstanding at the beginning of the year 1,185,839 470 1,346,152 470 Granted during the year 95,000 477 - - Forfeited during the year 61,600 470 160,313 470 Exercised during the year 258,001 471 - - Expired during the year - - - - Outstanding at the end of the year 961,238 471 1,185,839 470 Exercisable at the end of the year 125,026 470 116,750 470 Weighted average remaining contractual life (in years) 2.3 - 3.3 - Weighted average fair value of options granted (`) 156 - - - Range of exercise prices for outstanding options at the end of year (`) 470-493 - 470 - Grant VII In July 2014, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this grant would vest to the employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth year from the date of grant, respectively, with an exercise period ending one year from the end of last vesting. The vesting conditions include service terms and performance grade of the employees. These options are exercisable at the closing market price of Company’s shares existing on the date preceding to the date of grant. Particulars March 31, 2017 March 31, 2016 Number of Options Weighted Average Exercise Price (`) Number of Options Weighted Average Exercise Price (`) Outstanding at the beginning of the year 1,275,500 461 293,000 452 Granted during the year 200,000 605 1,077,500 461 Forfeited during the year 238,500 392 95,000 472 Exercised during the year 16,800 457 - - Expired during the year - - - - Outstanding at the end of the year 1,220,200 482 1,275,500 461 Exercisable at the end of the year 9,450 457 - - Weighted average remaining contractual life (in years) 5.2 - 6.0 - Weighted average fair value of options granted (`) 251 - 185 - Range of exercise prices for outstanding options at the end of year (`) 415-741 - 415-518 - Grant VIII In July 2015, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this grant would vest to the employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth year from the date of grant, respectively, with an exercise period ending one year from the end of last vesting. The vesting conditions include service terms and performance grade of the employees. These options are exercisable at the closing price as per National Stock Exchange as on the last day of the month preceding the month of first grant.

|603| Chap. 23 – Ind AS 102 — Share-based Payment Particulars March 31, 2017 March 31, 2016 Number of Options Weighted Average Exercise Price (`) Number of Options Weighted Average Exercise Price (`) Outstanding at the beginning of the year 312,500 459 - - Granted during the year 55,000 457 312,500 459 Forfeited during the year 105,000 457 - - Exercised during the year 1,000 457 - - Expired during the year - - - - Outstanding at the end of the year 261,500 460 312,500 459 Exercisable at the end of the year 16,750 457 - - Weighted average remaining contractual life (in years) 3.8 - 4.6 - Weighted average fair value of options granted (`) 149 - 154 - Range of exercise prices for outstanding options at the end of year (`) 457-481 - 457-481 - Grant IX In June 2016, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this grant would vest to the employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth year from the date of grant, respectively, with an exercise period ending one year from the end of last vesting. The vesting conditions include service terms and performance grade of the employees. These options are exercisable at 50% of the closing price as per National Stock Exchange as on the preceding day to the date of grant. Particulars March 31, 2017 March 31, 2016 Number of Options Weighted Average Exercise Price (`) Number of Options Weighted Average Exercise Price (`) Outstanding at the beginning of the year - - - - Granted during the year 472,500 495 - - Forfeited during the year 5,000 467 - - Exercised during the year - - - - Expired during the year - - - - Outstanding at the end of the year 467,500 496 - - Exercisable at the end of the year - - - - Weighted average remaining contractual life (in years) 8.9 - - - Weighted average fair value of options granted (`) 617 - - - Range of exercise prices for outstanding options at the end of year (`) 415-566 - - - Grant X In June 2016, the Company approved the grant to its employees under the existing ESOP Plan 2000. The options under this grant would vest to the employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth year from the date of grant, respectively, with an exercise period ending one year from the end of last vesting. The vesting conditions include service terms and performance grade of the employees. These options are exercisable at 50% of the closing price as per National Stock Exchange as on the preceding day to the date of grant.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |604| Particulars March 31, 2017 March 31, 2016 Number of Weighted Options Average Exercise Price (`) Number of Weighted Options Average Exercise Price (`) Outstanding at the beginning of the year - - - - Granted during the year 255,000 388 - - Forfeited during the year 51,250 373 - - Exercised during the year - - - - Expired during the year - - - - Outstanding at the end of the year 203,750 392 - - Exercisable at the end of the year - - - - Weighted average remaining contractual life (in years) 4.3 - - - Weighted average fair value of options granted (`) 442 - - - Range of exercise prices for outstanding options at the end of year (`) 371-467 - - - Assumptions used in determination of the fair value of the stock options under the Black Scholes Model are as follows: Particulars March 31, 2017 March 31, 2016 Weighted Average Exercise Price (`) 388-605 459-461 Expected volatility 29.5% to 33.4% 29% to 34.5% Historical volatility 34.32% 34.18% Life of the options granted (vesting and exercise period) in years 3.0-6.5 3.0-6.5 Expected dividends per share 5.00 5.00 Average risk-free interest rate 7.12% 7.65% Expected dividend rate 1.10% 1.10% Expected volatility is based on historical volatility of the market price of the Company’s publicly traded equity shares during the expected term of the option grant. (b) RSU Plan 2015 On March 11, 2015, Biocon’s Remuneration Committee approved the Biocon - Restricted Stock Units (RSUs) of Syngene (‘RSU Plan 2015’) for the grant of RSUs to the employees of the Company and its subsidiaries other than Syngene. The Remuneration Committee administers the plan through a trust established specifically for this purpose, called the Biocon Limited Employee Welfare Trust (‘RSU Trust’). For this purpose, on March 31, 2015, the Company transferred 2,000,000 equity shares of Syngene to RSU Trust. In April 2015, the Company approved the grant to its employees under the RSU Plan 2015. The RSUs under this grant would vest to the employees as 10%, 20%, 30% and 40% of the total grant at the end of first, second, third and fourth year from the date of grant, respectively, with an exercise period ending one year from the end of last vesting. The vesting conditions include service terms and performance grade of the employees. Exercise price of RSUs will be Nil. March 31, 2017 March 31, 2016 Number of Weighted Units Average Exercise Price (`) Number of Weighted Units Average Exercise Price (`) Outstanding at the beginning of the year 1,231,803 - - - Granted during the year 193,454 - 1,364,148 - Forfeited during the year 117,963 - 132,345 - Exercised during the year 10,742 - - - Expired during the year - - - - Outstanding at the end of the year 1,296,552 - 1,231,803 - Exercisable at the end of the year 92,320 - - -