Mandatory Accounting Standards (Ind AS)-2

|655| Chap. 26 – Ind AS 105 — Non-current Assets held for Sale and Discontinued Operations CONSOLIDATED FINANCIAL STATEMENTS Disclosures NOTE 12 : ASSETS CLASSIFIED AS HELD FOR SALE As at 31.03.2017 As at 31.03.2016 As at 01.04.2015 Carrying Value Carrying Value Carrying Value Plant and Equipment (i) 0.75 1.38 3.21 Tinting Systems (ii) - - 0.01 Freehold Land (iii) 13.76 0.49 2.56 Building (iv) 0.48 2.58 2.58 TOTAL 14.99 4.45 8.36 1. In the next 12 months, the Parent Company and one of it’s subsidiaries intend to dispose off plant and equipment as that it no longer plans to utilise. They were previously used in the manufacturing facilities at Bhandup and Baddi. A search for a buyer is underway. No impairment was recognise on reclassifcation of this assets as ‘held for sale’. However during the year, based on an assessment done by the subsidiary, an impairment loss of ` 0.24 crores was recognised on the plant and equipments in Baddi, since it now expects that fair value less cost to sell is lower than carrying amount. This loss is included in Other Expenses in statement of proft and loss. 2. As at 01st April, 2015 the Parent Company intended to sell tinting systems it no longer planned to utilise in the next 12 months. It was previously given on operating lease to dealers. No impairment loss was recognised on reclassification of the tinting system as held for sale. The same was sold during the year 2015-16. 3. In the next 12 months, two of the subsidiaries of the Parent Company intend to sell freehold land they no longer plan to utilise. One of these was previously used in the manufacturing facility at Baddi and the other was acquired for setting up a manufacturing facility. A search is underway for suitable buyer(s) for these properties. No impairment loss was recognised on reclassification of the freehold land as held for sale as the subsidiaries expect that fair value less cost to sell is higher than carrying amount. 4. As at 01st April, 2015, the Parent Company held a freehold land which it intended to dispose as it no longer had plans to utilise the same. It was previously held for setting up a manufacturing plant. No impairment loss was recognised on reclassification of the freehold land as held for sale. This land was disposed during the year 2015-16. 5. In the next 12 months, one of the subsidiaries intends to sell building it no longer plans to utilise. They were previously used in the manufacturing facility at Baddi. A search is underway for a buyer. No impairment was recognise on reclassifcation of this assets as ‘held for sale’. However during the year, based on an assessment done by the subsidiary, an impairment loss of ` 2.20 crores was recognised since it now expects that fair value less cost to sell is lower than carrying amount. This loss is included in Other Expenses in statement of proft and loss. 6. Note: The above mentioned ‘Assets classified as held for sale’ are part of the Paints segment. 2. BHARTI AIRTEL LIMITED CONSOLIDATED FINANCIAL STATEMENTS Significant Accounting Policies Non-current assets are classified as assets-held-for sale when their carrying amount is to be recovered principally through a sale transaction and a sale is considered highly probable. The sale is considered highly probable only when the asset is available for immediate sale in its present condition, it is unlikely that the sale will be withdrawn and sale is expected within one year from the date of the classification. Assets classified as held for sale are stated at the lower of carrying amount and fair value less costs to sell.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |656| Assets classified as held for sale are presented separately in the balance sheet. is recognised for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any cumulative loss previously recognised. Non-current assets (or disposal groups) are classified as assets-held-for-sale when their carrying amount is to be recovered principally through a sale transaction and a sale is considered highly probable. The sale is considered highly probable only when the asset or disposal group is available for immediate sale in its present condition, it is unlikely that the sale will be withdrawn and sale is expected within one year from the date of the classification. Disposal groups classified as held for sale are stated at the lower of carrying amount and fair value less costs to sell except for assets such as deferred tax assets, financial assets that are carried at fair value. Non-current assets are not depreciated or amortized while they are classified as held for sale. Assets and liabilities classified as held for sale are presented separately in the balance sheet. Loss is recognised for any initial or subsequent write down of the asset (or disposal group) to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but not in excess of any cumulative loss previously recognised. If the criteria for the held for sale are no longer met,it ceases to be classified as held for sale and are measured at the lower of (i) its carrying amount before the asset was classified as held for sale, adjusted for any depreciation/amortisation that would have been recognised had that asset not been classified as held for sale, and (ii) its recoverable amount at the date when the disposal group ceases to be classified as held for sale. Disclosures Until March 31, 2015, the Group had entered into agreements to sale and leaseback a dedicated portion of towers in eight of the African countries. Further during the year ended March 31, 2017 and 2016, the Group has entered into an agreement to sale and leaseback a dedicated portion of towers in one of the African country each. The Group, on the basis of approval by relevant Board of Directors, considers that the criteria relevant for classification as ssetsheld- for-sale have been met, and accordingly has classified the assets and associated liabilities (collectively referred to as ‘disposal group’) that are part of the sale and will not be leased back as held for sale. These assets and liabilities pertain to ‘Mobile Services Africa’ segment. The completion of the transactions is subject to certain customary closing conditions and is expected to be completed within a period of one year from the date of classification as held for sale. Assets-held-for-sale mainly consist of property plant and equipment (refer Note 6). The Group has ceased Depreciation on the telecom tower assets, to the extent it has estimated such assets would not be leased back, from the respective dates of classification as held for sale. During the year ended March 31, 2017, the agreement for sale of tower assets in one of the African countries with American Tower Corporation have lapsed and therefore stand terminated thereby. Accordingly, assets and the related liabilities have been re-classified from held for sale to its earlier classification. b. The major classes of assets and liabilities classified as held for sale are as follows: Assets of disposal group classified as held for sale As of March 31, 2017 As of March 31, 2016 As of April 1, 2015 Non current assets - 6,870 30,012 Other current assets - 132 2,606 - 7,002 32,618 Liabilities of disposal group classified as held for sale As of March 31, 2016 As of April 1, 2015 As of March 31, 2017 Non current liabilities - (1,039) (2,763) Current liabilities - - (1,200) - (1,039) (3,963)

|657| Chap. 26 – Ind AS 105 — Non-current Assets held for Sale and Discontinued Operations During the year ended March 31, 2017, sale and lease back of 1,510 towers in two of the African countries was completed for a consideration of ` 13,193. The portion leased back which have been classified as finance lease, has been retained at the carrying value of ` 5,430 and the finance lease obligation has been recorded at ` 5,855, being the fair value of the leased back portion. During the year ended March 31, 2016, sale and lease back of 8,740 towers in seven African countries was completed for a consideration of ` 116,229 respectively. The portion leased back which have been classified as finance lease, has been retained at the carrying value of ` 16,339 and the finance lease obligation has been recorded at ` 51,141, being the fair value of the leased back portion. 3. HAVELLS INDIA LIMITED CONSOLIDATED FINANCIAL STATEMENTS Significant Accounting Policies The Company classifies non-current assets as held sale if their carrying amounts will be recovered principally through a sale rather than through continuing use. Such non-current assets classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Any expected loss is recognised immediately in the statement of profit and loss. The criteria for held for sale classification is regarded as met only when the sale is highly probable i.e. an active program to locate a buyer to complete the plan has been initiated and the asset is available for immediate sale in its present condition and the assets must have actively marketed for sale at a price that is reasonable in relation to its current fair value. Actions required to complete the sale should indicate that it is unlikely that significant changes to that plan to sale these assets will be made. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortised. Assets and liabilities classified as held for sale are presented separately as current items in the balance sheet Notes to Accounts 12. ASSETS CLASSIFIED AS HELD FOR SALE (` in Crores) As at March 31, 2017 As at March 31, 2016 As at April 1, 2015 Property, plant and equipment Plant and machinery retired from active use {refer note (a)} 0.06 0.10 0.39 Investment in associate company (unquoted) Feilo Malta Limited (formerly known as Havells Malta limited) {refer note no. 32(1)(a)(i)} 238.90 252.76 - 2,82,51,603 (March 31, 2016 : 2,82,51,603) (April 1, 2015 : Nil) Equity Shares of Euro 1 each fully paid up Feilo Exim Limited (erstwhile Havells Exim Limited) {refer Note No. 32(1)(b)} - 18.95 - Nil (March 31, 2016 : 200) (April 1, 2015: Nil) Equity Shares of 1 Hong Kong dollar each fully paid up Investment in joint venture (unquoted) Jiangsu Havells Sylvania Lighting Co., Limited {refer Note No. 32(1)(a)(iii)} 16.19 - - (50% contribution in paid in capital) Disposal group {refer Note No. 32(3)} 101.64 - - 356.79 271.81 0.39

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |658| Note: (a) On March 31, 2017, the Group classified certain plant and machinery retired from active use and held for sale recognized and measured in accordance with Ind-AS 105 “Non Current Assets Held for Sale and Discontinued Operations” at lower of its carrying amount and fair value less cost to sell. The Group expects to complete the sale by 30th September 2017 by selling it in the open market. (b) Refer to note 32(3) for information about assets and liabilities of disposal group that were classified as held for sale at March 31, 2017. 4. HINDUSTAN UNILEVER LIMITED CONSOLIDATED FINANCIAL STATEMENTS Significant Accounting Policies Non-current assets or disposal groups comprising of assets and liabilities are classified as ‘held for sale’ when all of the following criteria’s are met: (i) decision has been made to sell. (ii) the assets are available for immediate sale in its present condition. (iii) the assets are being actively marketed and (iv) sale has been agreed or is expected to be concluded within 12 months of the Balance Sheet date. Subsequently, such non-current assets and disposal groups classified as held for sale are measured at the lower of its carrying value and fair value less costs to sell. Non-current assets held for sale are not depreciated or amortised. During the year Ponds Exports Limited (PEL) has closed down its existing operation and are evaluating future course of action on the going concern assumption. This is in line with our group strategy of exiting non-core business. a. Results of discontinued operation Year ended 31st March, 2017 Year ended 31st March, 2016 Revenue 90 117 Expenses 103 124 Results from discontinued operations before tax (13) (7) Less: Inter-company Elimination 0 1 tax expense Current tax 1 0 Deferred tax credit/(charge) - (1) Results from discontinued operations (12) (7) The loss from discontinued operations of ` 12 crores (2015-16 loss ` 7 crores) is attributable entirely to the owners of the Company. B. Net Cash generated/(Used in) from discontinued operations Year ended 31st March, 2017 Year ended 31st March, 2016 Net cash generated from operating activities (0) 5 Net cash (used in)/generated from investing activities 1 1 Net cash used in financing activities 0 (7) net cash flows for the year 1 (1)

|659| Chap. 26 – Ind AS 105 — Non-current Assets held for Sale and Discontinued Operations 5. RAYMOND LIMITED CONSOLIDATED FINANCIAL STATEMENTS Significant Accounting Policies Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and contractual rights under insurance contracts, which are specifically exempt from this requirement. Non-current assets are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal Company classified as held for sale continue to be recognised. Disclosures With effect from 1st December 2015, the management of one of the subsidiary Ring Plus Aqua Limited discontinued its forging business and sold the same on Slump sale basis. Majority of assets were sold and the balance properties in the process of disposal were disclosed as ‘Assets classified as held for sale’ at estimated realizable value as at 31st March, 2016 part of which were sold during the year. The sale of the balance assets is expected to be completed next year. The estimated realisable value of the asset as at 31st March, 2017 is reassessed based on the market information. Note: 44 Discontinued Operation Subsidiaries of RUDPL, UCO Sportswear International NV (USI) and UCO Fabrics Inc (UFI), had discontinued their operations in 2008. The disclosures with respect to these discontinuing operations are as under: (` in lakhs) Subsidaries of Raymond Uco Denim Private Limited 2016-17 2015-16 Total Assets at the close of the year 2.00 2.37 6. TATA COFFEE LIMITED CONSOLIDATED FINANCIAL STATEMENTS Significant Accounting Policies Non-current assets held for sale are presented separately in the balance sheet when the following criteria are met: - the company is committed to selling the asset; - the assets are available for sale immediately; - an active plan of sale has commenced; and - sale is expected to be completed within 12 months. Assets held for sale are measured at the lower of their carrying amount and fair value less cost to sell. Assets held for sale are no longer amortised or depreciated.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |660| 7. TATA COMMUNICATIONS LIMITED CONSOLIDATED FINANCIAL STATEMENTS Significant Accounting Policies Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. Non-current assets classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Notes to Accounts 14. Assets classified as held for sale (` in crores) As at 31 March 2017 As at 31 March 2016 As at 1 April 2015 a. Staff Quarters 2.87 - - b. Land at Guldhar Repeater Station 0.45 - - 3.32 - - i. The Management intends to dispose off a parcel of the Company’s freehold land and staff quarter’s. An active program to locate the buyer and to complete the sale has already been initiated, the sale is expected to be completed in the next 12 months. Accordingly, these assets have been classified as assets held for sale as on 31 March 2017. ii. Further the fair value of these assets is higher than its carrying value as on 31 March 2017 and hence no impairment loss has been recognised. CONSOLIDATED FINANCIAL STATEMENTS Disclosures 34. Discontinued operations i. Data Center operations (i) On 19 October, 2016, the Company completed the sale of its India data center business by selling 74% shareholding in STT Global Data Centres India Private Limited (formely known as Tata Communications Data Centres Private Limited (STT – India) for cash consideration of ` 1,796.78 crores that resulted into gain on sale of subsidiary of ` 2,127.33 crores (net of transaction cost of ` 100.55 crores and including ` 584.54 crores on remeasurement of remaining 26% shareholding). This amount is included under profit on disposal of subsidiaries under discontinued operations. The financial performance and cash flows for STT – India presented below are till the date of sale and for the year ended 31 March 2016: a. Financial performance: (` in crores) Year ended 31 March 2017 Year ended 31 March 2016 Revenue from operations 361.24 582.11 Total income 361.24 582.11 Expenses Employee benefits expense 13.36 15.56 Finance costs 0.12 0.08 Depreciation and amortisation expense 14.75 93.82 Operating and other expenses (Includes intercompany rent expenses) (Refer note i) 221.52 367.62 Total expenses 249.75 477.08

|661| Chap. 26 – Ind AS 105 — Non-current Assets held for Sale and Discontinued Operations (` in crores) Year ended 31 March 2017 Year ended 31 March 2016 Profit before tax 111.49 105.03 Current tax 14.35 22.70 Deferred tax (4.84) (3.45) Profit after tax 101.98 85.78 Other comprehensive income (0.03) (0.02) Total comprehensive income 101.95 85.76 Gain on sale of subsidiary 2,127.33 - Current tax 399.42 - Deferred tax 134.86 - Net profit on sale of subsidiary 1,593.05 - Total profit from discontinued operations 1,695.03 85.78 Note: i. Includes ` 0.24 crores of gain on disposal of property, plant and equipment (net), ` 1.10 crores of Interest income on financial assets carried at amortised cost, ` 1.28 crores of Gain on investments carried at fair value through profit or loss (net) and ` 2.03 crores of allowance for trade receivables. b. Cash flow from india data center operations: (` in crores) Year ended 31 March 17 Year Ended 31 March 16 a. Cash flow from Operating activities 108.79 124.59 b. Cash flow from investing activities (106.54) (296.58) c. Cash flow from financing activities (8.76) 174.99 c. Analysis of assets and liabilities over which control was lost (` in crores) Non-Current assets Property, Plant and Equipment 664.38 Capital Work-in-Progress 84.59 Other Intangible Assets 1.85 Other financial assets 0.64 Deferred Tax asset 23.48 Other non-current assets 53.88 Total (a) Current assets 828.82 Other Investments 50.96 Trade receivables 214.34 Cash and cash equivalents 0.36 Other bank balance - Other current assets 11.49 Total (B) 277.15 Total assets (A+B) 1,105.97 Non-Current liabilities Other financial liabilities 0.07 Other non current liabilities 16.25 Provisions 2.57 Total (C) 18.89

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |662| (` in crores) Current liabilities Trade Payables 102.64 Borrowings 362.22 Other financial liabilities 421.22 Other Current liabilities 47.30 Provisions 0.26 Total (d) 933.64 Total liabilities (C+d) 952.53 Net assets disposed of 153.44 d. Gain on disposal of India Data Centre operations (` in crores) Cash Consideration 1,796.78 Fair value of retained interest of 26% 584.54 Less: Transaction cost 100.55 Net consideration received 2,280.77 Net assets disposed of 153.44 Gain on disposal 2,127.33 (ii) On 13th February, 2017 the Group has completed the sale of Singapore data center business by selling its net assets in Singapore data center business for cash consideration of ` 823.15 crores resulting in a gain on sale of ` 738.87 crores (including fair value of shares received in STT Tai Seng Pte Limited of ` 222.09 crores (STT – Singapore) (company floated by ST Telemedia in which all the assets and liabilities of Singapore data center business are transferred). The financial performance and cash flows for Singapore data center business presented below are till the date of sale and for the year ended 31 March 2016: a. Financial performance (` in crores) Year ended 31 March 2017 Year Ended 31 March 2016 Revenue from operations 190.13 200.67 Total income 190.13 200.67 Expenses Network and transmission expense 44.93 51.26 Employee benefits expense 25.03 29.16 Finance costs 1.27 3.97 Depreciation and amortisation expense 4.11 30.42 Operating and other expenses(Refer note i) 57.71 72.70 Total expenses 133.05 187.51 Profit Before tax 57.08 13.16 Attributable income tax Profit After Tax - 57.08 Other comprehensive income - - 13.16 Total comprehensive income 57.08 13.16 Gain on sale of subsidiary Attributable income tax 738.87 - Net profit on sale of subsidiary 738.87 - Total profit from discontinued operations 795.95 13.16 Total Comprehensive income 795.95 13.16

|663| Chap. 26 – Ind AS 105 — Non-current Assets held for Sale and Discontinued Operations Note: i. Operating and other expenses includes ` 0.07 crore of allowance for trade receivables. b. Cash flow from STT – Singapore: (` in crores) Year ended 31 March 2017 Year Ended 31 March 2016 Cash flow from operating activities 34.97 (0.38) Cash flow from investing activities (6.57) (12.52) Cash flow from financing activities (28.40) 12.90 c. Analysis of assets and liabilities over which control was lost: (` in crores) Non-Current Assets Property, Plant and Equipment 330.00 Capital Work-in-Progress 0.43 Total (a) 330.43 Current assets Trade receivables 49.14 Other current assets 16.54 Total (B) 65.68 Total assets (a+B) 396.11 Non Current liabilities Other Liabilities 61.45 Provisions 16.54 Total (C) 77.99 Current liabilities Trade Payable 8.66 Other liability 8.78 Provisions 0.04 Total (d) 17.48 Total liabilities (C+d) 95.47 Net assets disposed of 300.64 d. Gain on sale of STT - Singapore (` in crores) Cash Consideration 823.15 Fair value of retained interest of 26% 222.09 Less: Transaction cost (5.73) net consideration received 1,039.51 Net assets disposed of 300.64 Gain on disposal 738.87 ii. South Africa Operations (Neotel Pty limited) During the current year, the shareholders of Neotel and Liquid Telecom entered into an agreement whereby Liquid Telecom would acquire the entire shareholding in Neotel for ZAR 6.55 billion subject to certain closing adjustments and conditions. On 10 February. 2017, the Group successfully completed the sale of its entire shareholding to Neotel. In accordance with the conditions for sale of shareholding the Group needed to settle the liabilities of Nexus Connections Pty. Limited (Nexus) who was one of the minority shareholder in Neotel. The Group also needs to acquire the entire shareholding in Nexus.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |664| Consequently, the Group has paid ` 180.45 crores (ZAR 361.5 million) to acquire 100% shareholding in Nexus. The financial performance and cash flows for Neotel presented below are till the date of sale and for the year ended 31 March 2016. a. Financial performance (` in crores) Year ended 31 March 2017 Year Ended 31 March 2016 Revenue from operations 1,318.74 1,673.28 Other income (Refer Note ii) 29.42 3.41 Total income 1,348.16 1,676.69 Expenses Network and transmission expense 427.87 674.63 Employee benefits expense 260.35 323.41 Finance costs 322.74 305.99 Depreciation and amortisation expense 62.30 230.77 Operating and other expenses (Refer Note iii) 320.41 370.11 Total expenses 1,393.68 1,904.91 Loss before share in profit of associate, tax and exceptional items (45.52) (228.22) Share in profit of associate 0.26 0.37 Loss before tax and exceptional items (45.26) (227.85) Exceptional items (impairment of Goodwill/other assets in Neotel) - (90.00) Loss before tax (45.26) (317.85) Current tax 3.17 - Loss after tax * (48.43) (317.85) Other Comprehensive income - - Total loss (a) (48.43) (317.85) Gain on disposal 627.03 - Foreign currency translation loss pertaining to Neotel reclassified to Consolidated Statement of Profit and Loss (1,072.72) - Net loss on disposal of neotel (B) (445.69) - Total loss from discontinued operation (494.12) (317.85) * Net of intercompany adjustments Note: i. Pending receipt of audited financials upto the effective date of sale, the financial results of Neotel Group (Neotel Pty Limited its subsidiary and its associate) for the year ended 31 March, 2017 have been considered on the basis of unaudited financial information furnished by Management. The unaudited financial information of Neotel Group as considered in the consolidated financial information reflect a loss from discontinued operations of ` 69.98 crores for the year ended 31 March, 2017. The statutory auditors report contains a qualification in this respect. ii. Other income includes ` 0.07 crore of gain on disposal of property, plant and equipment (net) and 17.87 crores of Interest income on financial assets carried at amortised cost. iii. Operating and other expenses includes ` 16.56 crores of allowance for trade receivables.

|665| Chap. 26 – Ind AS 105 — Non-current Assets held for Sale and Discontinued Operations b. Cash flow from neotel (` in crores) Year ended 31 March, 2017 Year Ended 31 March, 2016 Cash flow from operating activities 311.41 480.64 Cash flow from investing activities (207.73) (302.71) Cash flow from financing activities (167.03) (268.25) c. Analysis of assets and liabilities over which control was lost (` in crores) Non-Current assets Property, Plant and Equipment 1,916.01 Capital work in progress 69.52 Goodwill 163.32 Intangible Assets 85.88 Investments in Associates 2.43 Other financial assets 64.84 Other assets 49.90 Total (a) 2,351.90 Current assets Inventory 20.88 Trade receivables 313.89 Cash and cash equivalents 15.21 Other bank balance 263.15 Other financial assets – current 2.47 Other current assets 82.87 Total (B) 698.47 Total assets (a+B) 3,050.37 Non-Current liabilities 1,751.85 Long Term Borrowings Trade Payable 4.09 Other Liabilities 78.65 Total (C) 1,834.59 Current liabilities Trade Payables 538.60 Short-Term borrowings 968.41 Other financial liabilities 25.67 Other current liabilities 285.33 Short-Term provisions 6.10 Current tax liability (3.47) Total (d) 1,820.64 Total liabilities 3,655.23 Net liabilities disposed of (604.86) d. Gain/loss on disposal of neotel operations (` in crores) Consideration received (net) 89.39 Transaction cost (21.12) Net (assets)/liability disposed of 604.86 Additional obligations (Refer Note below)

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |666| Cumulative exchange loss on net liabilities reclassified to (46.10) Consolidated Statement of Profit and Loss (1,072.72) Loss on disposal 445.69 Note: As part of the sale agreement, the Group along with the buyer needs to pay a certain pre-agreed amount to Communitel Telecommunications Proprietary Limited, one of the minority shareholders in Neotel. The Group’s share of such liability is ` 46.10 crores. e. Net Cash inflow on disposal of subsidiary (` in crores) Consideration received in cash and cash equivalents 89.39 Less: Transaction cost (21.12) Less: Cash and Cash equivalent balance disposed of (15.21) Net cash inflow on disposal of subsidiary 53.06 ll

|667| Chap. 27 – Ind AS 106 — Exploration and Evaluation of Mineral Resources Chapter 27 Ind AS 106 — Exploration and Evaluation of Mineral Resources 1. OIL AND NATURAL GAS CORPORATION LIMITED STANDALONE FINANCIAL STATEMENTS ACCOUNTING POLICIES 3.8. Intangible Assets (ii) Intangible assets under development – Exploratory Wells in Progress All exploration and evaluation costs incurred in drilling and equipping exploratory and appraisal wells, are initially capitalized as Intangible assets under development - Exploratory Wells in Progress till the time these are either transferred to Oil and Gas Assets on completion as per Note No. 3.11 or expensed as exploration and evaluation cost (including allocated depreciation) as and when determined to be dry or of no further use, as the case may be. Cost of drilling exploratory type stratigraphic test wells are initially capitalized as Intangible assets under development – Exploratory Wells in Progress till the time these are either transferred to Oil and Gas Assets as per Note No. 3.11 or expensed as exploration and evaluation cost (including allocated depreciation) as when determined to be dry or the Petroleum Exploration License is surrendered. Costs of exploratory wells are not carried over unless it could be reasonably demonstrated that there are indications of sufficient quantity of reserves and sufficient progress has been made in assessing the reserves and the economic and operating viability of the project. All such carried over costs are subject to review for impairment as per the policy of the Company. 3.10. Exploration & Evaluation, Development and Production Costs i) Pre-acquisition cost Expenditure incurred before obtaining the right(s) to explore, develop and produce oil and gas are expensed as and when incurred. ii) Acquisition cost Acquisition costs of Oil and Gas Assets are costs related to right to acquire mineral interest and are accounted as follows:– Exploration and development stage Acquisition cost relating to projects under exploration or development are initially accounted as Intangible Assets under development-exploratory wells in progress or Oil & Gas Assets under development - development wells in progress respectively. Such costs are capitalized by transferring to Oil and Gas Assets when a well is ready to commence commercial production. In case of abandonment/relinquishment of Intangible Assets under development - exploratory wells in progress, such costs are written off. Production stage Acquisition costs of producing Oil and Gas Assets are capitalized as proved property acquisition cost under Oil and Gas Assets and amortized using the unit of production method over proved reserves of underlying assets.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |668| iii) Survey cost Cost of Survey and prospecting activities conducted in the search of oil and gas are expensed as exploration cost in the year in which these are incurred. iv) Oil & Gas asset under development – Development Wells in Progress All costs relating to Development Wells are initially capitalized as ‘Development Wells in Progress’ and transferred to ‘Oil and Gas Assets’ on “completion”. v) Production costs Production costs include pre-well head and post-well head expenses including depreciation and applicable operating costs of support equipment and facilities. 3.11. Oil and Gas Assets Oil and Gas Assets are stated at historical cost less accumulated depletion and impairment losses. These are created in respect of an area/ field having proved developed oil and gas reserves, when the well in the area/field is ready to commence commercial production. Cost of temporary occupation of land, successful exploratory wells, all development wells (including service wells), allied facilities, depreciation on support equipment used for drilling and estimated future decommissioning costs are capitalised and classified as Oil and Gas Assets. Oil and Gas Assets are depleted using the “Unit of Production Method”. The rate of depletion is computed with reference to an area covered by individual lease/license/asset/amortization base by considering the proved developed reserves and related capital costs incurred including estimated future decommissioning/ abandonment costs net of salvage value. Acquisition cost of Oil and Gas Assets is depleted by considering the proved reserves. These reserves are estimated annually by the Reserve Estimates Committee of the Company, which follows the International Reservoir Engineering Procedures. 3.12. Side tracking In the case of an exploratory well, cost of sidetracking is treated in the same manner as the cost incurred on a new exploratory well. The cost of abandoned portion of side tracked exploratory wells is expensed as ‘Exploration cost written off.’ In the case of development wells, the entire cost of abandoned portion and side tracking is capitalized. In the case of producing wells and service wells, if the side-tracking results in additional proved developed oil and gas reserves or increases the future economic benefits therefrom beyond previously assessed standard of performance, the cost incurred on side tracking is capitalised, whereas the cost of abandoned portion of the well is depleted in the normal way. Otherwise, the cost of side tracking is expensed as ‘Work over Expenditure.’

|669| Chap. 27 – Ind AS 106 — Exploration and Evaluation of Mineral Resources STANDALONE FINANCIAL STATEMENTS Disclosures: Note 51: Disclosure under Guidance Note on Accounting for “Oil and Gas Producing Activities” (Revised) 51.1 Company’s share of Proved Reserves on the geographical basis is as under: Particular Details Crude Oil (MMT) Gas (Billion Cubic Metre) Total Oil Equivalent (MMTOE)* As at March 31, 2017 As at March 31, 2016 As at March 31, 2017 As at March 31, 2016 As at March 31, 2017 As at March 31, 2016 Offshore Opening 200.76 208.13 176.306 187.882 377.05 396.00 Addition 14.48 9.36 27.375 5.689 41.86 15.05 Production 16.26 16.73 17.606 17.265 33.86 34.00 Closing 198.98 200.76 186.075 176.306 385.05 377.05 Onshore Opening 187.73 189.75 145.083 148.051 332.81 337.80 Addition 3.91 6.33 2.864 2.002 6.77 8.33 Production 8.34 8.35 5.364 4.970 13.70 13.32 Closing 183.30 187.73 142.583 145.083 325.88 332.81 Total Opening 388.49 397.88 321.389 335.933 709.88 733.81 Addition 18.39 15.69 30.239 7.691 48.62 23.39 Production 24.60 25.08 22.970 22.235 47.57 47.32 Closing 382.28 388.49 328.658 321.389 710.93 709.88 Refer Note No. 4.2(d) for procedure of estimation of reserves. 51.2 Company’s share of Proved Developed Reserves on the geographical basis is as under: Particular Details Crude Oil (MMT) Gas (Billion Cubic Metre) Total Oil Equivalent (MMTOE)* As at March 31, 2017 As at March 31, 2016 As at March 31, 2017 As at March 31, 2016 As at March 31, 2017 As at March 31, 2016 Offshore Opening 146.61 154.48 113.525 122.693 260.14 277.17 Addition 3.73 8.86 16.622 8.097 20.35 16.97 Production 16.26 16.73 17.606 17.265 33.87 34.00 Closing 134.08 146.61 112.541 113.525 246.62 260.14 Onshore Opening 142.71 143.74 100.172 103.835 242.88 247.57 Addition 3.49 7.33 (0.370) 1.360 3.12 8.69 Production 8.35 8.36 5.364 5.023 13.71 13.39 Closing 137.85 142.71 94.438 100.172 232.29 242.87 Total Opening 289.32 298.22 213.697 226.528 503.02 524.75 Addition 7.22 16.19 16.252 9.457 23.47 25.66 Production 24.61 25.09 22.970 22.288 47.58 47.39 Closing 271.93 289.32 206.979 213.697 478.91 503.02 * MMTOE denotes “Million Metric Tonne Oil Equivalent ” and for calculating Oil equivalent of Gas, 1000 M3 of Gas has been taken to be equal to 1 MT of Crude Oil. Variations in totals, if any, are due to internal summations and rounding off.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |670| CONSOLIDATED FINANCIAL STATEMENTS Disclosure Note 53: Disclosures under Guidance Note on Accounting for “Oil & Gas Producing Activities” (Revised) 53.1. Group’s share of Proved Reserves on the geographical basis is as under: Particular Details Crude Oil (MMT) Gas (Billion Cubic Metre) Total Oil Equivalent (MMTOE) (note 53.2.1) As at March 31, 2017 As at March 31, 2016 As at March 31, 2017 As at March 31, 2016 As at March 31, 2017 As at March 31, 2016 A. In India Offshore Opening 200.76 208.13 176.306 187.882 377.05 396.00 Addition 14.48 9.36 27.375 5.689 41.86 15.05 Production 16.26 16.73 17.606 17.265 33.86 34.00 Closing 198.98 200.76 186.075 176.306 385.05 377.05 Onshore Opening 187.73 189.75 145.083 148.051 332.81 337.80 Addition 3.91 6.33 2.864 2.002 6.77 8.33 Production 8.34 8.35 5.364 4.970 13.70 13.32 Closing 183.30 187.73 142.583 145.083 325.88 332.81 Total Opening 388.49 397.88 321.389 335.933 709.88 733.81 Addition 18.39 15.69 30.239 7.691 48.62 23.39 Production 24.60 25.08 22.970 22.235 47.57 47.32 Closing 382.28 388.49 328.658 321.389 710.93 709.88 B. Outside India GNOP, Sudan Opening 8.901 8.988 - - 8.901 8.988 Addition 0.540 - - - 0.540 Deduction/Adjustment (2.019) - - (2.019) Production 0.481 0.627 - 0.481 0.627 Closing 6.401 8.901 - - 6.401 8.901 GPOC, South Sudan Opening 6.377 6.377 - - 6.377 6.377 Addition - - - - - - Deduction/Adjustment - - - - - Production - - - - - - Closing 6.377 6.377 - - 6.377 6.377 Block 5A, South Sudan Opening 5.886 5.887 - - 5.886 5.887 Addition - - - - - - Deduction/Adjustment 0.001 - - - 0.001 Production - - - - - - Closing 5.886 5.886 - - 5.886 5.886 Sakhalin- 1, Russia Opening 37.810 36.605 72.525 72.780 110.335 109.385 Addition - 2.947 - 0.334 - 3.281 Deduction/Adjustment - 0.001 - 0.001 - Production 1.809 1.742 0.555 0.588 2.364 2.33 Closing 36.001 37.810 71.969 72.525 107.970 110.335

|671| Chap. 27 – Ind AS 106 — Exploration and Evaluation of Mineral Resources Particular Details Crude Oil (MMT) Gas (Billion Cubic Metre) Total Oil Equivalent (MMTOE) (note 53.2.1) As at March 31, 2017 As at March 31, 2016 As at March 31, 2017 As at March 31, 2016 As at March 31, 2017 As at March 31, 2016 Block 06.1, Vietnam Opening 0.563 0.535 4.380 2.789 4.943 3.324 Addition 0.055 0.057 2.919 3.250 2.974 3.307 Deduction/Adjustment - - - 0.001 - 0.001 Production 0.024 0.029 1.478 1.659 1.502 1.688 Closing 0.594 0.563 5.821 4.380 6.415 4.943 A FPC, Syria Opening 2.581 2.581 - 2.581 2.581 Addition - - - - Deduction/Adjustment - - - - Production - - - - - Closing 2.581 2.581 - - 2.581 2.581 BC-10, Brazil Opening 6.737 9.081 0.464 0.663 7.201 9.744 Addition - (0.001) - 0.001 - - Deduction/Adjustment (3.114) 1.694 (0.225) 0.160 (3.339) 1.854 Production 0.604 0.649 0.039 0.040 0.643 0.689 Closing 3.019 6.737 0.200 0.464 9.897 7.201 MECL, Colombia Opening 2.744 3.355 - - 2.744 3.355 Addition 0.004 - - 0.004 Deduction/Adjustment (0.207) 0.001 - (0.207) 0.001 Production 0.543 0.614 - 0.543 0.614 Closing 1.994 2.744 - - 2.408 2.744 IEC, Russia Opening 16.397 14.317 4.750 4.661 21.147 18.978 Addition - 2.385 - 0.119 - 2.504 Deduction/Adjustment (1.438) - (0.797) - (2.235) - Production 0.271 0.305 0.027 0.030 0.298 0.335 Closing 14.688 16.397 3.926 4.750 18.614 21.147 PIVSA, Venezuela Opening 8.969 9.554 - - 8.969 9.554 Addition - - - - Deduction/Adjustment - - - - Production 0.427 0.585 - 0.427 0.585 Closing 8.542 8.969 - - 8.542 8.969 Carabobo - 1, Venezuela Opening 3.622 3.734 - - 3.622 3.734 Addition 0.874 - - 0.874 - Deduction/Adjustment - - - - Production 0.140 0.112 - 0.140 0.112 Closing 4.356 3.622 - - 4.356 3.622 BLOCK-X XIV, Syria Opening 1.803 1.803 - - 1.803 1.803 Addition - - - - - - Deduction/Adjustment - - - - - - Production - - - - - - Closing 1.803 1.803 - - 1.803 1.803

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |672| Particular Details Crude Oil (MMT) Gas (Billion Cubic Metre) Total Oil Equivalent (MMTOE) (note 53.2.1) As at March 31, 2017 As at March 31, 2016 As at March 31, 2017 As at March 31, 2016 As at March 31, 2017 As at March 31, 2016 BLOCK-A1 & A3, Myanmar Opening - - 10.138 11.029 10.138 11.029 Addition - - - - Deduction/Adjustment - - - - Production - 0.843 0.891 0.843 0.891 Closing - - 9.295 10.138 9.295 10.138 ACG, Azerbaijan Opening 7.057 7.904 - - 7.057 7.904 Addition - - - - - Deduction/Adjustment (0.584) - - (0.584) - Production 0.818 0.847 - 0.818 0.847 Closing 5.655 7.057 - - 5.655 7.057 Vankor, Russia Opening - - - - - Addition 78.115 - 8.553 - 86.668 - Deduction/Adjustment - - 0.001 - 0.001 - Production 3.317 - 1.228 - 4.545 - Closing 74.798 - 7.326 - 82.123 - Total Reserves Opening 109.446 110.720 92.256 91.921 201.702 202.641 Addition 79.044 5.932 11.473 3.704 90.517 9.636 Deduction/Adjustment (7.362) 1.696 (1.023) 0.160 (8.385) 1.856 Production 8.434 5.510 4.170 3.208 12.604 8.718 Closing 172.694 109.446 98.536 92.256 271.230 201.702 CONSOLIDATED FINANCIAL STATEMENT 53.2. Group’s share of Proved Developed Reserves on the geographical basis is as under: Particular Details Crude Oil (MMT) Gas (Billion Cubic Metre) Total Oil Equivalent (MMTOE) (Note 53.2.1) As at March 31, 2017 As at March 31, 2016 As at March 31, 2017 As at March 31, 2016 As at March 31, 2017 As at March 31, 2016 A. In India Offshore Opening 146.61 154.48 113.525 122.693 260.14 277.17 Addition 3.73 8.86 16.622 8.097 20.35 16.97 Production 16.26 16.73 17.606 17.265 33.87 34.00 Closing 134.08 146.61 112.541 113.525 246.62 260.14 Onshore Opening 142.71 143.74 100.172 103.835 242.88 247.57 Addition 3.49 7.33 (0.370) 1.360 3.12 8.69 Production 8.35 8.36 5.364 5.023 13.71 13.39 Closing 137.85 142.71 94.438 100.172 232.29 242.87

|673| Chap. 27 – Ind AS 106 — Exploration and Evaluation of Mineral Resources Particular Details Crude Oil (MMT) Gas (Billion Cubic Metre) Total Oil Equivalent (MMTOE) (Note 53.2.1) As at March 31, 2017 As at March 31, 2016 As at March 31, 2017 As at March 31, 2016 As at March 31, 2017 As at March 31, 2016 Total Opening 289.32 298.22 213.697 226.528 503.02 524.75 Addition 7.22 16.19 16.252 9.457 23.47 25.66 Production 24.61 25.09 22.970 22.288 47.58 47.39 Closing 271.93 289.32 206.979 213.697 478.91 503.02 B. Outside India GNOP, Sudan Opening 2.463 2.297 - - 2.463 2.297 Addition 0.272 0.793 - - 0.272 0.793 Deduction/Adjustment - - - - - - Production 0.481 0.627 - - 0.481 0.627 Closing 2.254 2.463 - - 2.254 2.463 GPOC, South Sudan Opening 4.312 4.312 - - 4.312 4.312 Addition - - - - - - Deduction/Adjustment - - - - - Production - - - - - - Closing 4.312 4.312 - - 4.312 4.312 Block 5A, South Sudan Opening 2.565 2.565 - - 2.565 2.565 Addition - - - - - - Deduction/Adjustment - - - - - - Production - - - - - - Closing 2.565 2.565 - - 2.565 2.565 Sakhalin- 1, Russia Opening 16.197 12.848 10.169 9.691 26.366 22.539 Addition 2.378 5.091 0.223 1.065 2.601 6.156 Deduction/Adjustment (0.001) - 0.001 -0.001 0.000 (0.001) Production 1.809 1.742 0.555 0.588 2.364 2.330 Closing 16.765 16.197 9.839 10.169 26.603 26.366 Block 06.1, Vietnam Opening 0.563 0.536 4.380 2.789 4.943 3.324 Addition 0.047 0.057 1.000 3.250 1.047 3.307 Deduction/Adjustment 0.001 - - 0.001 Production 0.024 0.029 1.478 1.659 1.502 1.688 Closing 0.586 0.563 3.902 4.380 4.488 4.943 A FPC, Syria Opening 2.206 2.206 - - 2.206 2.206 Addition Deduction - - - - - - Adjustment - - - - Production - - - - - - Closing 2.206 2.206 - - 2.206 2.206

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |674| Particular Details Crude Oil (MMT) Gas (Billion Cubic Metre) Total Oil Equivalent (MMTOE) (Note 53.2.1) As at March 31, 2017 As at March 31, 2016 As at March 31, 2017 As at March 31, 2016 As at March 31, 2017 As at March 31, 2016 BC-10, Brazil Opening 6.737 6.783 0.464 0.450 7.201 7.233 Addition Deduction 0.603 0.054 - 0.657 Adjustment (3.114) - (0.225) - (3.339) - Production 0.604 0.649 0.039 0.040 0.643 0.689 Closing 3.019 6.737 0.200 0.464 3.219 7.201 MECL, Colombia Opening 2.403 3.014 - - 2.403 3.014 Addition 0.004 - - 0.004 Deduction/Adjustment (0.111) 0.001 - (0.111) 0.001 Production 0.543 0.614 - 0.543 0.614 Closing 1.749 2.403 - - 1.971 2.403 IEC, Russia Opening 5.206 4.178 1.110 1.071 6.316 5.249 Addition Deduction - 1.333 - 0.069 - 1.402 Adjustment (0.001) - 0.001 - - - Production 0.271 0.305 0.027 0.030 0.298 0.335 Closing 4.934 5.206 1.084 1.110 6.018 6.316 PIVSA, Venezuela Opening 1.697 2.282 - 1.697 2.282 Addition - - - - Deduction/Adjustment - - - - Production 0.427 0.585 - 0.427 0.585 Closing 1.270 1.697 - 1.270 1.697 Carabobo - 1, Venezuela Opening 1.231 0.920 - - 1.231 0.920 Addition 0.722 0.423 - 0.722 0.423 Deduction/Adjustment - - - - Production 0.140 0.112 - 0.140 0.112 Closing 1.813 1.231 - - 1.813 1.231 BLOCK-X XIV, Syria Opening 0.049 0.049 - 0.049 0.049 Addition - - - - - Deduction/Adjustment - - - - Production - - - - Closing 0.049 0.049 - - 0.049 0.049 BLOCKA1 & A3, Myanmar Opening - 6.716 5.654 6.716 5.654 Addition - - 1.953 - 1.953 Deduction/Adjustment - 0.001 - 0.001 - Production - 0.843 0.891 0.843 0.891 Closing - 5.872 6.716 5.872 6.716

|675| Chap. 27 – Ind AS 106 — Exploration and Evaluation of Mineral Resources Particular Details Crude Oil (MMT) Gas (Billion Cubic Metre) Total Oil Equivalent (MMTOE) (Note 53.2.1) As at March 31, 2017 As at March 31, 2016 As at March 31, 2017 As at March 31, 2016 As at March 31, 2017 As at March 31, 2016 ACG, Azerba-ijan Opening 2.585 2.928 2.585 2.928 Addition 2.725 0.504 2.725 0.504 Deduction/ Adjustment - - - Production 0.818 0.847 0.818 0.847 Closing 4.492 2.585 4.492 2.585 Vankor, Russia Opening - - - - - - Addition Deduction 59.213 - 6.620 - 65.833 - Adjustment - (0.000) - (0.000) - Production 3.317 - 1.228 - 4.545 - Closing 55.896 - 5.392 - 61.289 - Total Reserves Opening 48.214 44.918 22.840 19.654 71.054 64.573 Addition Deduction 65.356 8.807 7.843 6.392 73.200 15.199 Adjustment (3.227) 0.002 (0.222) (0.001) (3.449) 0.001 Production 8.434 5.510 4.170 3.208 12.604 8.718 Closing 101.910 48.214 26.289 22.839 128.199 71.053 53.2.1. MMTOE denotes “Million Metric Tonne Oil Equivalent” and for calculating Oil equivalent of Gas, 1000 M3 of Gas has been taken to be equal to 1 MT of Crude Oil. Variations in totals, if any, are due to internal summations and rounding off. 53.3 The year-end reserves of the company have been estimated by the Reserves Estimation Committee (REC) which follows international reservoir engineering procedures consistently. The company has adopted deterministic approach for reserves estimation and is following Society of Petroleum Engineers (SPE) – 1997 guidelines which defines reserves as “estimated volumes of crude oils, condensate, natural gas, natural gas liquids and associated substances anticipated to be commercially recoverable from known accumulations from a given date forward, under existing economic conditions, by established operating practices, and under current Government regulations.” Volumetric estimation is the main procedure in estimation, which uses reservoir rock and fluid properties to calculate hydrocarbons inplace and then estimate that portion which will be recovered from it. As the field gets matured with reasonably good production history is available then performance method such as material balance, simulation, decline curve analysis are applied to get more accurate assessments of reserves. The Company uses the services of third party agencies for due diligence and it gets the reserves of its assets audited by third party periodically by internationally reputed consultants who adopt latest industry practices for their evaluation. The annual revision of estimates is based on the yearly exploratory and development activities and results thereof. New in-place Volume and Ultimate Reserves are estimated for new field discoveries or new pool discoveries in already discovered fields. Also, appraisal activities lead to revision in estimates due to new subsurface data. Similarly, reinterpretation exercise is also carried out for old fields due to necessity of revision in petro-physical parameters, updating of static and dynamic models and performance analysis leading to change in reserves. Intervention of new technology, change in classifications and contractual provisions also necessitates revision in estimation of reserves.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |676| 2. RELIANCE INDUSTRIES LIMITED (RIL) STANDALONE FINANCIAL STATEMENTS ACCOUNTING POLICIES (o) Accounting For Oil and Gas Activity The Company has adopted Successful Efforts Method (SEM) of accounting for its Oil and Gas activities. The policy of recognition of exploration and evaluation expenditure is considered in line with the principle of SEM. Seismic costs, geological and geophysical studies, petroleum exploration license fees and general and administration costs directly attributable to exploration and evaluation activities are expensed off. The costs incurred on acquisition of interest in oil and gas blocks and on exploration and evaluation other than those which are expensed off are accounted for as Intangible Assets under Development. All development costs incurred in respect of Proved reserves are also capitalized under Intangible Assets under Development. Until a well is ready to commence commercial production, the costs accumulated in Intangible Assets under Development are classified as Intangible Assets corresponding to proved developed oil and gas reserves. The exploration and evaluation expenditure which does not result in discovery of proved oil and gas reserves and all cost pertaining to production are charged to the Statement of Profit and Loss. The Company used technical estimation of reserves as per the Petroleum Resources Management System guidelines 2011 and standard geological and reservoir engineering methods. The reserve review and evaluation is carried out annually. Oil and Gas Joint Ventures are in the nature of joint operations. Accordingly, assets and liabilities as well as income and expenditure are accounted on the basis of available information on a line-by-line basis with similar items in the Company’s financial statements, according to the participating interest of the Company. STANDALONE FINANCIAL STATEMENTS Disclosures Note 31.2 Quantities of Company’s Interest (on gross basis) in Proved Reserves and Proved Developed Reserves Particulars Proved Reserves in India (Million MT) Proved Developed Reserves in India (Million MT) 2016-17 2015-16 2016-17 2015-16 Oil Beginning of the year 4.32 1.96 1.05 1.47 Revision of estimates (0.26) 2.78 (0.12) - Production (0.35) (0.42) (0.35) (0.42) Closing balance of the year 3.71 4.32 0.58 1.05 Particulars Proved Reserves in India (Million M3#) Proved Developed Reserves in India (Million M3#) 2016-17 2015-16 2016-17 2015-16 Gas Beginning of the year 71,731 65,741 14,582 18,812 Revision of estimates (8,500) 9,008 1,995 (1,212) Production (2,280) (3,018) (2,280) (3,018) Closing balance of the year 60,951 71,731 14,297 14,582 # cubic metre (M3) = 35.315 cubic feet, 1 cubic feet = 1000 BTU and 1 MT = 7.5 bbl

|677| Chap. 27 – Ind AS 106 — Exploration and Evaluation of Mineral Resources The reserve estimates for producing fields are revised based on the performance of producing fields and with respect to discovered fields, the revision are based on the revised geological and reservoir simulation studies. 31.3 Government of India (GOI), by its letters dated 2nd May, 2012, 14th November, 2013, 10th July, 2014 and 3rd June 2016 has communicated that it proposes to disallow certain costs which the Production Sharing Contract (PSC), relating to Block KG-DWN-98/3 entitles the Company to recover. Based on legal advice received, the Company continues to maintain that a Contractor is entitled to recover all of its costs under the terms of the PSC and there are no provisions that entitle the Government to disallow the recovery of any Contract Cost as defined in the PSC. The Company has already referred the issue to arbitration and already communicated the same to GOI for resolution of disputes. Pending decision of the arbitration, the demand from the GOI of $ 148 million (for ` 961 crore) being the Company’s Share (total demand $ 247 million) towards additional Profit Petroleum has been considered as contingent liability. 31.4(a) The Government has made a claim of about $ 1.55 billion against the KGD6 Contractor parties in respect of gas said to have migrated from neighbouring blocks. In carrying out petroleum operations, the Contractor has worked within the boundaries of the block awarded to it and has complied with all applicable regulations and provisions of the Production Sharing Contract (“PSC”). The Company has already invoked the dispute resolution mechanism in the PSC and issued a Notice of Arbitration to the Government on 11th November, 2016. The Company remains convinced of being able to fully justify and vindicate its position that the Government’s claim is not sustainable. (b) In supersession of the Ministry’s Gazette Notification No. 22011/3/2012-ONG.D.V. dated 10th January, 2014, the GoI notified the New Domestic Natural Gas Pricing Guidelines, 2014, on 26th October 2014. Consequent to the aforesaid dispute referred to under 31.3 above which has been referred to arbitration, the GoI has directed the Company to instruct customers to deposit differential revenue on gas sales from D1D3 field on account of the prices determined under the above guidelines converted to NCV basis and the prevailing price prior to 1st November, 2014 ($ 4.205 per MMBTU) to be credited to the gas pool account maintained by GAIL (India) Limited. The amount so deposited by customers to Gas Pool Account is ` 295 crore (net) as at 31st March, 2017 and is disclosed under Other NonCurrent Assets. Revenue has been recognized at the GoI notified prices in respect of gas quantities sold. (c) In December 2010, the Company and BG Exploration and Production India Limited (together, the ’Claimants‘) referred a number of disputes, differences and claims arising under two Production Sharing Contracts entered into in 1994 among the Claimants, Oil and Natural Gas Corporation Limited (ONGC) and the Government (the ’PSCs‘) to arbitration. The disputes relate to, among other things, the limits of cost recovery, profit sharing and audit and accounting provisions of the PSCs. the Tribunal by majority issued a final partial award (“FPA”), and separately, two dissenting opinions in the matter on 12 October 2016. Claimants have challenged certain parts of the FPA before the English Court and the English court has initiated steps to effect service of the Challenge proceedings upon the Government. d) NTPC had filed a suit for specific performance of a contract for supply of natural gas by RIL before the Hon’ble Bombay High Court. The main issue in dispute is whether a valid, concluded and binding contract exists between the parties for supply of Natural Gas of 132 Trillion BTU annually for a period of 17 years. The matter is presently sub judice and RIL is of the view that NTPC’s claim lacks merit and no binding contract for supply of gas was executed between NTPC and RIL.” (e) Considering the complexity of above issues, the Company is of the view that any attempt for quantification of possible exposure to the Company will have an effect of prejudicing Company’s legal position in the ongoing arbitration/litigations. 31.5 Exploration for and Evaluation of Oil and Gas Resources The following financial information represents the amounts included in Intangible Assets under Development relating to activity associated with the exploration for and evaluation of oil and gas resources.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |678| (` in crore) Particulars As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015 Exploration & evaluation cost Exploration Expenditure written off 46 - - Other Exploration Cost 23 379 - Exploration Cost for the Year 69 379 - Impairment loss Intangible Assets – Exploration & Appraisal Expenditure 46 - - Intangible Assets – Other than E&E 41 59 45 CWIP – Inventory & Advance 8 2 2 Current Liabilities (24) (1) (2) Net Assets 71 60 45 Capital expenditure on accrual basis 81 14 - Net Cash Used in Operating activity 23 379 - Net Cash Used in Investing activity 58 15 - CONSOLIDATED FINANCIAL STATEMENTS Disclosures Note 31.2 Quantities of Company’s Interest (on gross basis) in Proved Reserves and Proved Developed Reserves Reserves in India Reserves outside India (North America) Proved Reserves (Million MT) Proved Developed Reserves (Million MT) Proved Reserves (Million MT) Proved Developed Reserves (Million MT) 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 Oil Beginning of the year 4.32 1.96 1.05 1.47 21.27 23.51 5.88 7.45 Revision of estimates (0.26) 2.78 (0.12) - (9.30) (0.85) (1.14) (0.18) Production (0.35) (0.42) (0.35) (0.42) (1.06) (1.39) (1.06) (1.39) Closing balance for the year 3.71 4.32 0.58 1.05 10.91 21.27 3.68 5.88 Reserves in India Reserves outside India (North America) Proved Reserves (Million M3#) Proved Developed Reserves (Million M3#) Proved Reserves (Million M3#) Proved Developed Reserves (Million M3#) 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 Gas Beginning of the year 71,731 65,741 14,582 18,812 46,790 53,665 21,762 20,197 Revision of estimates (8,500) 9,008 1,995 (1,212) (3,227) (3,779) 1,189 4,661 Production (2,280) (3,018) (2,280) (3,018) (2,902) (3,096) (2,902) (3,096) Closing balance for the year 60,951 71,731 14,297 14,582 40,661 46,790 20,049 21,762 # 1 cubic metre (M3) = 35.315 cubic feet, 1 cubic feet = 1000 BTU and 1 MT = 7.5 bbl The reserve estimates for producing fields are revised based on the performance of producing fields and with respect to discovered fields, the revision are based on the revised geological and reservoir simulation studies.

|679| Chap. 27 – Ind AS 106 — Exploration and Evaluation of Mineral Resources 3. VEDANTA LIMITED STANDALONE FINANCIAL STATEMENTS ACCOUNTING POLICIES (d) Property, plant and equipment (i) Mining properties The costs of mining properties, which include the costs of acquiring and developing mining properties and mineral rights, are capitalised as property, plant and equipment under the heading “Mining properties” in the year in which they are incurred. When a decision is taken that a mining property is viable for commercial production (i.e. when the company determines that the mining property will provide sufficient and sustainable return relative to the risks and the company decided to proceed with the mine development), all further pre-production primary development expenditure other than land, buildings, plant and equipment is capitalised as part of the cost of the mining property until the mining property is capable of commercial production. Exploration and evaluation assets are recognized as assets at their cost of acquisition, subject to meeting the commercial production criteria as above and are subject to impairment review on annual basis, or more frequently if indicators of impairment exist. The stripping cost incurred during the production phase of a surface mine is deferred to the extent the current period stripping cost exceeds the average period stripping cost over the life of mine and recognised as an asset if such cost provides a benefit in terms of improved access to ore in future periods and certain criteria are met. When the benefit from the stripping costs are realised in the current period, the stripping costs are accounted for as the cost of inventory. If the costs of inventory produced and the stripping activity asset are not separately identifiable, a relevant production measure is used to allocate the production stripping costs between the inventory produced and the stripping activity asset. The Company uses the expected volume of waste compared with the actual volume of waste extracted for a given value of ore production for the purpose of determining the cost of the stripping activity asset. Deferred stripping cost are included in mining properties within property, plant and equipment and disclosed as a part of mining properties. After initial recognition, the stripping activity asset is depreciated on a unit of production method over the expected useful life of the identified component of the ore body. In circumstance, where a property is abandoned, the cumulative capitalized costs relating to the property are written off in the same period. Commercial reserves are proved and probable reserves. Changes in the commercial reserves affecting unit of production calculations are dealt with prospectively over the revised remaining reserves. (ii) Oil and gas assets – (developing/producing assets) For oil and gas assets a successful efforts based accounting policy is followed. Costs incurred prior to obtaining the legal rights to explore an area are expensed immediately to the statements of profit and loss. All costs incurred after the technical feasibility and commercial viability of producing hydrocarbons has been demonstrated are capitalised within property, plant and equipment - development/producing assets on a field-by-field basis. Subsequent expenditure is capitalised only where it either enhances the economic benefits of the development/producing asset or replaces part of the existing development/producing asset. Any remaining costs associated with the part replaced are expensed. Net proceeds from any disposal of development/ producing assets are credited against the previously capitalised cost. A gain or loss on disposal of a development/producing asset is recognised in the statements of profit and loss to the extent that the net proceeds exceed or are less than the appropriate portion of the net capitalised costs of the asset.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |680| (f) Exploration and evaluation intangible assets Exploration and evaluation expenditure incurred after obtaining the mining right or the legal right to explore are capitalised as exploration and evaluation assets (intangible assets) and stated at cost less impairment. Exploration and evaluation assets are transferred to property, plant and equipment when the technical feasibility and commercial viability has been determined. Exploration and evaluation assets are assessed for impairment indicators at least annually. Exploration and evaluation expenditure incurred prior to obtaining the mining right or the legal right to explore are expensed as incurred. Exploration expenditure includes all direct and allocated indirect expenditure associated with finding specific mineral resources which includes depreciation and applicable operating costs of related support equipment and facilities and other costs of exploration activities: Acquisition costs – costs associated with acquisition of licenses and rights to explore, including related professional fees. General exploration costs – costs of surveys and studies, rights of access to properties to conduct those studies (e.g., costs incurred for environment clearance, defense clearance, etc.), and salaries and other expenses of geologists, geophysical crews and other personnel conducting those studies. Costs of exploration drilling and equipping exploration and appraisal wells – Expenditure incurred on the acquisition of a licence interest is initially capitalised on a licence-by-license basis. Costs are held, undepleted, within exploration and evaluation assets until such time as the exploration phase on the license area is complete or commercial reserves have been discovered. Exploration expenditure incurred in the process of determining oil and gas exploration targets is capitalised within ”Exploration and evaluation assets” (intangible assets) and subsequently allocated to drilling activities. Exploration drilling costs are initially capitalised on a well-by-well basis until the success or otherwise of the well has been established. The success or failure of each exploration effort is judged on a well-by-well basis. Following appraisal of successful exploration wells, if commercial reserves are established and technical feasibility for extraction demonstrated, then the related capitalised exploration costs are transferred into a single field cost centre within property, plant and equipment – development/producing assets after testing for impairment. Where results of exploration drilling indicate the presence of hydrocarbons which are ultimately not considered commercially viable, all related costs are written off to profit or loss. Net proceeds from any disposal of an exploration asset are initially credited against the previously capitalised costs. Any surplus proceeds are credited to the statement of profit and loss. (g) Non-current assets held for sale Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale which should be expected to qualify for recognition as a completed sale within one year from the date of classification. Non-current assets and disposal groups classified as held for sale are not depreciated and are measured at the lower of carrying amount and fair value less costs to sell. Such assets and disposal groups are presented separately on the face of the balance sheet. (h) Impairment of non-financial assets Exploration and evaluation assets In assessing whether there is any indication that an exploration and evaluation asset may be impaired, the company considers, as a minimum, the following indications: – The period for which the entity has the right to explore in the specific area has expired during the period or will expire in the near future, and is not expected to be renewed;

|681| Chap. 27 – Ind AS 106 — Exploration and Evaluation of Mineral Resources - Substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned; - Exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and the entity has decided to discontinue such activities in the specific area; - Sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by sale; and - Reserve information prepared annually by external experts. When a potential impairment is identified, an assessment is performed for each area of interest in conjunction with the group of operating assets (representing a cash-generating unit) to which the exploration and evaluation assets is attributed. Exploration areas in which reserves have been discovered but require major capital expenditure before production can begin, are continually evaluated to ensure that commercial quantities of reserves exist or to ensure that additional exploration work is under way or planned. To the extent that capitalised expenditure is no longer expected to be recovered, it is charged to the statement of profit and loss. STANDALONE FINANCIAL STATEMENTS Disclosures Note 44: Oil & gas reserves and resources The Company’s gross reserve estimates are updated atleast annually based on the forecast of production profiles, determined on an asset-by-asset basis, using appropriate petroleum engineering techniques. The estimates of reserves and resources have been derived in accordance with the Society for Petroleum Engineers “Petroleum Resources Management System (2007)”. The changes to the reserves are generally on account of future development projects, application of technologies such as enhanced oil recovery techniques and true up of the estimates. The management’s internal estimates of hydrocarbon reserves and resources at the period end, based on the current terms of the PSCs, are as follows: Gross proved and probable hydrocarbons initially in place Gross proved and probable reserves and resources Net working interest proved and probable reserves and resources Particulars (mmboe) (mmboe) (mmboe) 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 Rajasthan MBA Fields 2,197 2,208 2,208 410 496 545 143 174 191 Rajasthan MBA EOR - - - 272 225 226 95 79 79 Rajasthan Block Other Fields 4,034 4,189 3,833 478 471 505 167 165 177 Ravva Fields 696 706 684 41 39 47 9 9 11 CBOS/2 Fields 225 215 220 23 23 24 9 9 9 Other fields 335 481 481 48 74 74 24 36 36 Total 7,487 7,799 7,426 1,272 1,328 1,421 447 472 503

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |682| The Company’s net working interest proved and probable reserves is as follows: Proved and probable reserves Proved and probable reserves (developed) Particulars Oil Gas Oil Gas (mmstb) (bscf) (mmstb) (bscf) Reserves as of April 1, 2015* 115.43 47.81 77.65 16.07 Additions / (revision) during the year (5.82) (10.95) 22.96 6.20 Production during the year (24.46) ( 4.52) (24.46) (4.52) Reserves as of March 31, 2016** 85.15 32.34 76.15 17.75 Additions / (revision) during the year (0.35) 0.88 (0.23) (2.47) Production during the year (22.99) (3.59) (22.99 ) (3.59) Reserves as of March 31, 2017*** 61.81 29.63 52.93 11.69 * Includes probable oil reserves of 36.95 mmstb (of which 13.84 mmstb is developed) and probable gas reserves of 34.32 bscf (of which 5.94 bscf is developed) ** Includes probable oil reserves of 22.69 mmstb (of which 15.05 mmstb is developed) and probable gas reserves of 18.31 bscf (of which 5.02 bscf is developed) *** Includes probable oil reserves of 20.36 mmstb (of which 11.73 mmstb is developed) and probable gas reserves of 22.69 bscf (of which 4.75 bscf is developed) mmboe = million barrels of oil equivalent mmstb = million stock tank barrels bscf = billion standard cubic feet 1 million metric tonnes = 7.4 mmstb 1 standard cubic metre =35.315 standard cubic feet MBA = Mangala, Bhagyam & Aishwarya EOR = Enhanced Oil Recovery ll

|683| Chap. 28 – Ind AS 108 — Operating Segments Chapter 28 Ind AS 108 — Operating Segments 1. BHARAT FORGE LIMITED ACCOUNTING POLICY Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions. In accordance with paragraph 4 of notified Ind AS 108 “Operating segments”, the Company has disclosed segment information only on the basis of the consolidated financial statements. Disclosure 53. Segment Information In accordance with paragraph 22 of notified Indian Accounting Standard 108 Operating Segments (Ind AS 108), the Group has disclosed segment information only on the basis of the consolidated financial statements which are presented together with the unconsolidated financial statements. The Group’s operating businesses are organized and managed separately according to the nature of the products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. The Group has identified its reporting segments as “Forgings”, “Projects (Capital goods)” and “Others” which represents the Group businesses not covered in Forgings and Projects (Capital goods) segment. The Chairman is the chief operation decision maker. The Chief operating decision makers monitors the operating results of the business units separately based on the above segments for the purpose of making decisions about resource allocation and performance assessment. Each segment’s performance is evaluated based on profit or loss and is measured consistently with profit or loss in the consolidated financial statements. Transfer prices between operating segments, if any, are on an arm’s length basis in a manner similar to transactions with third parties. The “Forgings” segment produces and sells steel forging products comprising of forgings, finished machined crankshafts, front axle assembly and components and ring rolling etc. The “Projects (Capital goods)” includes engineering, procurement and commissioning business for power related projects. “Others” primarily include infrastructure projects & other activities. No operating segments have been aggregated to form the above reportable operating segments ` in Million Sr. No. March 31, 2017 March 31, 2016 1 Segment revenue a Forgings 65,788.55 69,743.07 b Projects (capital goods) - 8,593.26 c Others 257.68 420.93 d Discontinued operations 3,002.86 - e Unallocable - - Total 69,049.09 78,757.26

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |684| ` in Million Sr. No. March 31, 2017 March 31, 2016 Adjustments and eliminations (3,067.53) (8,741.70) Revenue from operations 65,981.56 70,015.56 2 Segment results a Forgings 9,561.31 11,895.72 b Projects (capital goods) - 698.65 c Others (73.52) (28.90) d Discontinued operations 1,104.66 (0.36) Total segment profits 10,592.45 12,565.11 Less: Finance cost from continuing operations (999.60) (1,513.38) Less: Finance cost from discontinued operations (599.23) (0.02) Less: Other un-allocable expenditure net off un-allocable income (285.07) (1,642.31) Add: Exceptional items 1,284.34 54.69 Total profits before tax and exceptional items 9,992.89 9,464.09 Adjustments and eliminations (525.21) 193.94 Consolidated 9,467.68 9,658.03 3 Segment income/(expense) 3.1 Depreciation and amortisation a Forgings 4,442.02 4,218.64 b Projects (capital goods) - 150.88 c All other segements 79.31 80.86 d Discontinued operations 303.68 0.31 e Unallocable - 233.44 Total segments 4,825.01 4,684.13 Adjustments and eliminations (relates to discontinued operations & others) (304.54) (154.37) Consolidated 4,520.47 4,529.76 3.2 Income tax expense/income a Forgings 2,491.46 3,163.83 b Projects (capital goods) - (11.32) c All other segements (0.03) 0.93 d Discontinued operations 374.26 - Total segments 2,865.69 3,153.44 Adjustments and eliminations (374.02) 11.32 Consolidated 2,491.67 3,164.76 3.3 Share of profit of an associate and a joint venture (including discontinued operations a Forgings - - b Projects (Capital goods) - 260.70 c All other segements 0.20 - d Discontinued operations 131.17 (0.37) Total segments 131.37 260.33 ` in Million Sr. No. March 31, 2017 March 31, 2016 April 1, 2015 4 Segment assets a Forgings 69,805.97 60,646.89 62,511.86 b Projects (Capital goods) - 14,703.79 10,495.37 c Others 1,926.90 2,126.57 1,629.21

|685| Chap. 28 – Ind AS 108 — Operating Segments ` in Million Sr. No. March 31, 2017 March 31, 2016 April 1, 2015 d Discontinued operations - - - e Unallocable 16,705.19 20,435.67 17,369.32 Total 88,438.06 97,912.92 92,005.76 Adjustments and eliminations (30.62) (14,993.33) (10,413.54) Consolidated 88,407.44 82,919.59 81,592.22 5 Segment liabilities a Forgings 11,806.80 8,035.48 11,117.26 b Projects (Capital goods) - 5,694.14 7,567.92 c Others 662.09 709.60 366.41 d Discontinued operations - - - e Unallocable 3,517.80 7,029.53 4,900.56 Total 15,986.69 21,468.75 23,952.15 Adjustments and eliminations (46.90) (6,174.79) (7,577.39) Consolidated 15,939.79 15,293.96 16,374.76 Capital employed 72,467.65 67,625.63 65,217.46 6 Other disclosures 6.1 Investments in associates and joint ventures a Forgings - - 0.30 b Projects (capital goods) - 849.16 588.20 c All other segements 0.13 0.59 34.16 Total segments 0.13 849.75 622.66 Adjustments and eliminations - - - Consolidated 0.13 849.75 622.66 ` in Million Sr. No. March 31, 2017 March 31, 2016 6.2 Capital expenditure for the year a Forgings 6,098.98 7,051.59 b Projects (capital goods) - 4,271.19 c All other segements 0.57 35.59 d Unallocable - 1,989.47 e Discontinued operations 765.67 - Total segments 6,865.22 13,347.84 Adjustments and eliminations (765.67) (4,325.75) Consolidated 6,099.55 9,022.09 ` in Million Sr. No. March 31, 2017 March 31, 2016 7 Information in respect of geographical areas 7.1 Segment revenue from external customers a Within India 20,525.57 20,982.32 b Outside India 45,455.99 49,033.24 Total 65,981.56 70,015.56

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |686| The revenue information above is based on location of the customers ` in Million Sr. No. March 31, 2017 March 31, 2016 April 1, 2015 7.2 Segment non-current assets a Within India 34,491.42 30,235.27 26,075.37 b Outside India 9,726.45 9,096.21 7,171.60 Total 44,217.87 39,331.48 33,246.97 Reconciliations to amounts reflected in the financial statements Inter-segment revenues are eliminated upon consolidation. All adjustments and eliminations are part of detailed reconciliations presented further below. ` in Million March 31, 2017 March 31, 2016 Reconciliation of Revenues Segment Revenue 69,049.09 78,757.26 Less: Revenue from discontinued operations 3,002.86 12.13 Less: Revenue from joint ventures and associates 64.67 8,729.57 Total Revenue 65,981.56 70,015.56 Reconciliation of Results Segment Results 9,992.89 9,464.09 Less: Results from discontinued operations 505.32 (0.34) Less: Results from joint ventures and associates 19.89 (193.60) Total Results 9,467.68 9,658.03 Reconciliation of Depreciation and amortisation Depreciation and amortisation 4,825.01 4,684.13 Less: Depreciation and amortisation from discontinued operations 303.68 0.31 Less:Depreciation and amortisation from joint ventures and associates 0.86 154.06 Total Depreciation and amortisation 4,520.47 4,529.76 Reconciliation of Income tax expense/income Income tax expense/income 2,865.69 3,153.44 Less: Income tax expense/income from discontinued operations 374.26 - Less:Income tax expense/income from joint ventures and associates (0.24) (11.32) Total Income tax expense/income 2,491.67 3,164.76 ` in Million March 31, 2017 March 31, 2016 April 1, 2015 Reconciliation of Assets Segment Assets 88,438.06 97,912.92 92,005.76 Less: Assets pertaining to joint ventures and associates 30.62 14,993.33 10,409.65 Less: Assets pertaining to discontinued operations - - 3.89 Total Assets 88,407.44 82,919.59 81,592.22 Reconciliation of Liabilities Segment Liabilities 15,986.69 21,468.75 23,952.15 Less: Liabilities pertaining to joint ventures and associates 46.90 6,174.79 7,571.32 Less: Liabilities pertaining to discontinued operations - - 6.07 Total Liabilities 15,939.79 15,293.96 16,374.76

|687| Chap. 28 – Ind AS 108 — Operating Segments ` in Million March 31, 2017 March 31, 2016 Reconciliation of Capital expenditure Segment Capital expenditure 6,865.22 13,347.84 Less: Capital expenditure pertaining to joint ventures and associates - 4,325.75 Less: Capital expenditure pertaining to discontinued operations 765.67 - Total Capital expenditure 6,099.55 9,022.09 2. DR. REDDY’S LABORATORIES LIMITED ACCOUNTING POLICY The Chief Operating Decision Maker (“CODM”) evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by operating segments. The CODM reviews revenue and gross profit as the performance indicator for all of the operating segments, and does not review the total assets and liabilities of an operating segment. The Chief Executive Officer is the CODM of the Company. Disclosure 2.24 SEGMENT REPORTING The Chief Operating Decision Maker (“CODM”) evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by operating segments. The CODM reviews revenue and gross profit as the performance indicator for all of the operating segments, and does not review the total assets and liabilities of an operating segment. The Chief Executive Officer is the CODM of the Company. The Company’s reportable operating segments are as follows: • Global Generics; • Pharmaceutical Services and Active Ingredients (“PSAI”); and • Proprietary Products. Global Generics: This segment consists of the Company’s business of manufacturing and marketing prescription and over-the-counter finished pharmaceutical products ready for consumption by the patient, marketed under a brand name (branded formulations) or as generic finished dosages with therapeutic equivalence to branded formulations (generics). This segment includes the operations of the Company’s biologics business. Pharmaceutical Services and Active Ingredients: This segment consists of the Company’s business of manufacturing and marketing active pharmaceutical ingredients and intermediates, also known as “API” or bulk drugs, which are the principal ingredients for finished pharmaceutical products. Active pharmaceutical ingredients and intermediates become finished pharmaceutical products when the dosages are fixed in a form ready for human consumption such as a tablet, capsule or liquid using additional inactive ingredients. This segment also includes the Company’s contract research services business and the manufacture and sale of active pharmaceutical ingredients and steroids in accordance with the specific customer requirements. Proprietary Products: This segment consists of the Company’s business that focuses on the research, development, and manufacture of differentiated formulations and new chemical entities (“NCEs”). These novel products fall within the dermatology and neurology therapeutic areas and are marketed and sold through Promius Pharma, LLC. Others: This includes the operations of the Company’s wholly-owned subsidiary, Aurigene Discovery Technologies Limited, a discovery stage biotechnology company developing novel and best-in-class therapies in the fields of oncology and inflammation and which works with established pharmaceutical and biotechnology companies in early-stage collaborations, bringing drug candidates from hit generation to pre- clinical development.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |688| The measurement of each segment’s revenues, expenses and assets is consistent with the accounting policies that are used in preparation of the Company’s consolidated financial statements. Information about segments Reportable Segments For the Year Ended 31 March 2017 Global Generics PSAI Proprietary Products Others Total Revenue from operations (1) 115,736 21,651 2,783 1,791 141,961 Gross profit 71,079 4,497 1,951 853 78,380 Less: Other unallocable expense/ (income), net 62,843 Profit before tax 15,537 Tax expense 2,965 Profit after tax 12,572 Add: Share of profit of equity accounted investees, net of tax 349 Profit for the year 12,921 Reportable Segments For the Year Ended 31 March 2016 Global Generics PSAI Proprietary Products Others Total Revenue from operations (1) 128,330 22,990 2,659 1,704 155,683 Gross profit 84,427 4,954 2,217 706 92,304 Less: Other unallocable expense/ (income), net 63,716 Profit before tax 28,588 Tax expense 7,511 Profit after tax 21,077 Add: Share of profit of equity accounted investees, net of tax 229 Profit for the year 21,306 (1) Revenue for the year ended 31 March 2017 does not include inter-segment revenues from PSAI to Global Generics which is accounted for at a cost of ` 6,181 (as compared to ` 5,447 for the year ended 31 March 2016). Analysis of revenue by geography: The following table shows the distribution of the Company’s revenues (excluding other operating income) based on the location of the customers: Country For the Year Ended 31 March 2017 For the Year Ended 31 March 2016 India 24,927 23,913 United States 69,816 81,154 Russia 11,547 10,640 Others 34,519 39,001 Total 140,809 154,708 Analysis of revenue within the Global Generics segment An analysis of revenues (excluding other operating income) by therapeutic areas in the Company’s Global Generics segment is given below:

|689| Chap. 28 – Ind AS 108 — Operating Segments Particulars For the Year Ended 31 March 2017 For the Year Ended 31 March 2016 Gastrointestinal 21,190 21,253 Oncology 17,054 19,410 Cardiovascular 15,553 19,009 Pain Management 14,323 16,240 Central Nervous System 12,749 14,739 Anti-Infective 7,189 12,711 Others 27,351 24,700 Total 115,409 128,062 Analysis of revenue within the PSAI segment An analysis of revenues (excluding other operating income) by therapeutic areas in the Company’s PSAI segment is given below: Particulars For the Year Ended 31 March 2017 For the Year Ended 31 March 2016 Cardiovascular 5,078 5,077 Pain Management 3,290 4,085 Central Nervous System 2,758 3,021 Anti-Infective 1,859 2,015 Dermatology 1,606 1,485 Oncology 1,534 2,570 Others 5,152 4,126 Total 21,277 22,379 Analysis of assets by geography The following table shows the distribution of the Company’s non current assets (other than financial instruments and deferred tax assets) by country, based on the location of assets: Country As At 31 March 2017 As At 31 March 2016 India 61,031 56,320 United States 8,233 6,716 Switzerland 31,457 6,466 Germany 2,560 2,467 Others 5,001 5,253 Total 108,282 77,222 The following table shows the distribution of the Company’s property, plant and equipment including capital work in progress and intangible assets acquired during the year (other than goodwill arising on business combination) by country, based on the location of assets: Country For the Year Ended 31 March 2017 For the Year Ended 31 March 2016 India 10,545 19,389 Switzerland 26,639 2,325 United States 2,657 1,019 Others 728 586 Total 40,569 23,319

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |690| Analysis of depreciation and amortisation by reportable segments: Particulars For the Year Ended 31 March 2017 For the Year Ended 31 March 2016 Global Generics 6,400 5,898 PSAI 3,075 2,778 Proprietary Products 472 411 Others 319 302 Total 10,266 9,389 Information about major customers Revenues from one of the customers of the Company’s Global Generics segment were approximately ` 22,760 representing approximately 16% of the Company’s total revenues, for the year ended 31 March 2017. Revenues from two of the customers of the Company’s Global Generics segment were approximately ` 21,600 and ` 15,998 representing approximately 14% and 10%, respectively, of the Company’s total revenues, for the year ended 31 March 2016. 3. GRASIM INDUSTRIES LIMITED ACCOUNTING POLICY Segment Reporting • Identification of Segments Operating Segments are identified based on monitoring of operating results by the chief operating decision maker (CODM) separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss of the Company. Operating Segments are identified based on the nature of products and services, the different risks and returns and the internal business reporting system. Geographical segment is identified based on geography in which major operating divisions of the Company operate. • Segment Policies The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole. Further, inter-segment revenue has been accounted for based on the transaction price agreed to between segments which is primarily market based. Unallocated Corporate Items include general corporate income and expenses which are not attributable to segments. Disclosure 4.4.1 Details of products included in each of the segments are as under: Fibre and Pulp - Viscose Staple Fibre and Rayon Grade Pulp Chemicals - Caustic Soda, Epoxy and Allied Chemicals Others - Mainly Textiles Information about Operating Segments for Current Year: ` in Crore Fibre and Pulp Chemicals Others Eliminations Total REVENUE Gross Sales (External) 7,629.32 3,403.80 77.94 - 11,111.06 Gross Sales (Inter-segment) 7.85 704.57 - (712.42) - Total Gross Sales (Note 3.1) 7,637.17 4,108.37 77.94 (712.42) 11,111.06

|691| Chap. 28 – Ind AS 108 — Operating Segments ` in Crore Fibre and Pulp Chemicals Others Eliminations Total Other Income (including Other Operating Revenues) 105.26 77.74 1.50 (12.81) 171.69 Unallocated Corporate Other Income - - - - 444.13 Total Other Income 105.26 77.74 1.50 (12.81) 615.82 Total Revenue 7,742.43 4,186.11 79.44 (725.23) 11,726.88 RESULTS Segment Results (PBIT) 1,206.10 641.50 5.28 - 1,852.88 Unallocated Corporate Income/(Expenses) 329.68 Finance Costs (57.62) Profit Before Tax 2,124.94 Current Tax (528.69) Deferred Tax (36.25) Profit After Tax 1,560.00 OTHER INFORMATION Segment Assets 5,960.08 4,418.04 48.18 - 10,426.30 Unallocated Corporate Assets 9,424.80 Total Assets 19,851.10 Segment Liabilities 1,886.22 680.21 13.19 - 2,579.62 Unallocated Corporate Liabilities 1,040.50 Total Liabilities 3,620.12 Additions to Non-Current Assets 204.64 228.52 1.07 - 434.23 Unallocated Corporate Capital Expenditure 3.02 Total Addition to Non-Current Assets 437.25 Depreciation and Amortisation 232.99 200.41 0.71 - 434.11 Unallocated Corporate Depreciation and Amortisation 12.03 Total Depreciation and Amortisation 446.14 Significant Non-Cash Expenses other than Depreciation and Amortisation 24.64 Information about Operating Segments for Previous Year: ` in Crore Fibre and Pulp Chemicals Others Eliminations Total REVENUE Gross Sales (External) 6,460.26 3,106.70 94.06 - 9,661.02 Gross Sales (Inter-segment) 8.21 607.27 - (615.48) - Total Gross Sales (Note 3.1) 6,468.47 3,713.97 94.06 (615.48) 9,661.02 Other Income (including Other Operating Revenues) 99.61 58.80 2.01 (7.07) 153.35 Unallocated Corporate Other Income - - - - 322.48 Total Other Income 99.61 58.80 2.01 (7.07) 475.83 Total Revenue 6,568.08 3,772.77 96.07 (622.55) 10,136.85 RESULTS Segment Results (PBIT) 693.88 462.07 6.76 - 1,162.71

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |692| ` in Crore Fibre and Pulp Chemicals Others Eliminations Total Unallocated Corporate Income/(Expenses) 243.53 Finance Costs (147.40) Profit Before Exceptional Item and Tax 1,258.84 Exceptional Item (29.19) Profit Before Tax 1,229.65 Current Tax (222.09) Deferred Tax (36.92) Profit After Tax 970.64 OTHER INFORMATION Segment Assets 5,821.45 4,284.71 51.29 - 10,157.45 Unallocated Corporate Assets 7,638.92 Total Assets 17,796.37 Segment Liabilities 1,771.38 1,299.06 12.76 - 3,083.20 Unallocated Corporate Liabilities 841.32 Total Liabilities 3,924.52 Additions to Non-Current Assets 183.26 396.98 1.90 - 582.14 Unallocated Corporate Capital Expenditure 34.75 Total Addition to Non-Current Assets 616.89 Depreciation and Amortisation 229.25 201.35 0.69 - 431.29 Unallocated Corporate Depreciation and Amortisation 13.60 Total Depreciation and Amortisation 444.89 Significant Non-Cash Expenses other than Depreciation and Amortisation 37.65 Information about Business Segments as at 1st April 2015: ` in Crore Fibre and Pulp Chemicals Others Eliminations Total Segment Assets 5,980.83 2,150.05 45.91 - 8,176.79 Unallocated Corporate Assets 7,068.63 Total Assets 15,245.42 Segment Liabilities 1,814.50 234.11 14.65 - 2,063.26 Unallocated Corporate Liabilities 660.10 Total Liabilities 2,723.36 Geographical Segments The Company’s operating facilities are located in India. Current Year Previous Year Segment Revenue (Gross Sales) India 8,500.35 7,373.97 Rest of the World 2,610.71 2,287.05 Total 11,111.06 9,661.02 Addition to Non-Current Assets India 434.23 582.14 Rest of the World - - Total 434.23 582.14

|693| Chap. 28 – Ind AS 108 — Operating Segments The carrying amount of non-current operating assets by location of assets: As at 31st March 2017 As at 31st March 2016 As at 1st April 2015 Non- Current Assets India 7,319.93 7,341.26 5,714.53 Rest of the World - - - Total 7,319.93 7,341.26 5,714.53 4. INFOSYS LIMITED ACCOUNTING POLICY Segment reporting Ind AS 108 establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers. The Group’s operations predominantly relate to providing end-to-end business solutions to enable clients to enhance business performance. Based on the ‘management approach’ as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the Group’s performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments. Accordingly, information has been presented both along business segments and geographic segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the significant accounting policies. Business segments of the Group are primarily enterprises in Financial Services (FS), enterprises in Manufacturing (MFG), enterprises in Retail, Consumer packaged goods and Logistics (RCL), enterprises in the Energy & utilities, Communication and Services (ECS), enterprises in Hi-Tech (Hi-Tech), enterprises in Life Sciences, Healthcare and Insurance (HILIFE) and all other segments. The FS reportable segments have been aggregated to include the Financial Services operating segment and the Finacle operating segment because of the similarity in the economic characteristics. All other segments represent the operating segments of businesses in India, Japan and China, and IPS. Geographic segmentation is based on business sourced from that geographic region and delivered from both onsite and offshore locations. North America comprises the United States of America, Canada and Mexico, Europe includes continental Europe (both the east and the west), Ireland and the United Kingdom, and the Rest of the World comprises all other places except those mentioned above and India. Revenue and identifiable operating expenses in relation to segments are categorized based on items that are individually identifiable to that segment. Revenue for ‘all other segments’ represents revenue generated by IPS and revenue generated from customers located in India, Japan and China. Allocated expenses of segments include expenses incurred in rendering services from the Group’s offshore software development centers and onsite expenses, which are categorized in relation to the associated turnover of the segment. Certain expenses such as depreciation, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying assets are used interchangeably. The Management believes that it is not practical to provide segment disclosures relating to those costs and expenses, and accordingly, these expenses are separately disclosed as ‘unallocated’ and adjusted against the total income of the Group. Assets and liabilities used in the Group’s business are not identified to any of the reportable segments, as these are used interchangeably between segments. The Management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous. Geographical information on revenue and business segment revenue information is collated based on individual customers invoiced or in relation to which the revenue is otherwise recognized.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |694| Disclosure 2.28 Segment reporting Ind AS 108 establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers. The Company’s operations predominantly relate to providing end-to-end business solutions to enable clients to enhance business performance. Based on the ‘management approach’ as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments. Accordingly, information has been presented both along business segments and geographic segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the significant accounting policies. Business segments of the Company are primarily enterprises in Financial Services (FS), enterprises in Manufacturing (MFG), enterprises in Retail, Consumer packaged goods and Logistics (RCL), enterprises in Energy & utilities, Communication and Services (ECS), enterprises in Hi-Tech (Hi-Tech), enterprises in Life Sciences, Healthcare and Insurance (HILIFE), and all other segments. All other segments represent the operating segments of businesses in India, Japan and China. Geographic segmentation is based on business sourced from that geographic region and delivered from both onsite and offshore locations. North America comprises the United States of America, Canada and Mexico, Europe includes continental Europe (both the east and the west), Ireland and the United Kingdom, and the Rest of the World comprises all other places except those mentioned above and India. Revenue and identifiable operating expenses in relation to segments are categorized based on items that are individually identifiable to that segment. Revenue for ‘all other segments’ represents revenue generated from customers located in India, Japan and China. Allocated expenses of segments include expenses incurred for rendering services from the Company’s offshore software development centers and onsite expenses, which are categorized in relation to the associated turnover of the segment. Certain expenses, such as depreciation, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying assets are used interchangeably. The Management believes that it is not practical to provide segment disclosures relating to those costs and expenses, and accordingly, these expenses are separately disclosed as ‘unallocated’ and adjusted against the total income of the Company. Assets and liabilities used in the Company’s business are not identified to any of the reportable segments, as these are used interchangeably between segments. The Management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous. Geographical information on revenue and business segment revenue information are collated based on individual customers invoiced or in relation to which the revenue is otherwise recognized. Business segments For the years ended March 31, 2017 and March 31, 2016 : ` in Crore Particulars FS (1) MFG (2) ECS (3) RCL (4) HILIFE (5) Hi-Tech All other segments Total Revenue from operations 15,735 6,086 13,999 10,280 7,065 4,901 1,223 59,289 14,846 5,434 12,124 9,411 6,392 4,736 1,040 53,983 Identifiable operating expenses 8,408 3,136 6,931 5,127 3,607 2,595 788 30,592 7,582 2,855 5,745 4,615 3,204 2,367 583 26,951 Allocated expenses 3,036 1,180 2,713 1,994 1,369 952 236 11,480 3,079 1,143 2,550 1,979 1,344 996 218 11,309 Segment operating income 4,291 1,770 4,355 3,159 2,089 1,354 199 17,217 4,185 1,436 3,829 2,817 1,844 1,373 239 15,723

|695| Chap. 28 – Ind AS 108 — Operating Segments ` in Crore Particulars FS (1) MFG (2) ECS (3) RCL (4) HILIFE (5) Hi-Tech All other segments Total Unallocable expenses 1,341 1,129 Operating profit 15,876 14,594 Other income, net 3,062 3,006 Profit before income tax 18,938 17,600 Income tax expense 5,120 4,907 Net profit 13,818 12,693 Depreciation and amortization 1,331 1,115 Non-cash expenses other than depreciation and amortization 10 14 (1) Financial Services (4) Retail, Consumer Packaged Goods and Logistics (2) Manufacturing (5) Life Sciences, Healthcare and Insurance (3) Energy & Utilities, Communications and Services Geographic segments For the years ended March 31, 2017 and March 31, 2016 : ` in Crore Particulars North America Europe India Rest of the World Total Revenue from operations 38,578 13,019 1,798 5,894 59,289 35,638 11,775 1,274 5,296 53,983 Identifiable operating expenses 20,337 6,664 786 2,805 30,592 18,052 5,868 568 2,463 26,951 Allocated expenses 7,479 2,523 345 1,133 11,480 7,493 2,471 255 1,090 11,309 Segment operating income 10,762 3,832 667 1,956 17,217 10,093 3,436 451 1,743 15,723 Unallocable expenses 1,341 1,129 Operating profit 15,876 14,594 Other income, net 3,062 3,006 Profit before income tax 18,938 17,600 Income tax expense 5,120 4,907 Net profit 13,818 12,693

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |696| ` in Crore Particulars North America Europe India Rest of the World Total Depreciation and amortization 1,331 1,115 Non-cash expenses other than depreciation and amortization 10 14 Significant clients No client individually accounted for more than 10% of the revenues in the years ended March 31, 2017 and March 31, 2016. 2.29 Function-wise classification of the Statement of Profit and Loss ` in Crore Particulars Year ended March 31, 2017 2016 Revenue from operations 59,289 53,983 Cost of sales 37,057 33,409 Gross Profit 22,232 20,574 Operating expenses Selling and marketing expenses 2,728 2,695 General and administration expenses 3,628 3,285 Total operating expenses 6,356 5,980 Operating profit 15,876 14,594 Other income, net 3,062 3,006 Profit before tax 18,938 17,600 Tax expense Current tax 5,068 4,898 Deferred tax 52 9 Profit for the period 13,818 12,693 Other comprehensive income Items that will not be reclassified subsequently to profit or loss Remeasurement of the net defined benefit liability / asset (42) (2) Equity instruments through other comprehensive income (5) – (47) (2) Items that will be reclassified subsequently to profit or loss Fair value changes on cash flow hedges, net 39 – Fair value changes on investments, net (10) – 29 – Total other comprehensive income, net of tax (18) (2) Total comprehensive income for the period 13,800 12,691 5. IRB INFRASTRUCTURE DEVELOPERS LIMITED ACCOUNTING POLICY Segment information Based on “Management Approach” as defined in Ind AS 108 -Operating Segments, the Management evaluates the Group’s performance and allocates the resources based on an analysis of various performance indicators by business segments. Inter segment sales and transfers are reflected at market prices. Unallocable items includes general corporate income and expense items which are not allocated to any business segment.

|697| Chap. 28 – Ind AS 108 — Operating Segments Segment Policies The Group prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Group as a whole. Common allocable costs are allocated to each segment on an appropriate basis. Disclosure a) The Group has identified business segments in accordance with Indian Accounting Standard 108 “Operating Segment” notified under Section 133 of the Companies Act, 2013, read together with relevant rules issued thereunder. b) The Group has identified two business segments viz., Built, Operate and Transfer (‘BOT’) and Construction as reportable segments. The business segments of the Group comprise of the following: Segment Description of Activity BOT Projects Operation and maintenance of roadways Construction Development of roads c) The Group’s activities are restricted within India and hence no separate geographical segment disclosure is considered necessary. d) Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. e) Assets and Liabilities that cannot be allocated between the segments are shown as a part of unallocated corporate assets and liabilities respectively. f) Details of Business Segment information is presented below. (` in millions) Particulars BOT Projects* Construction Unallocated corporate Total 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 REVENUE Total external revenue 23,511.56 20,987.99 34,854.63 30,215.53 93.17 75.94 23,604.72 21,063.93 Inter segment revenue - - - - - - - - Total Revenue (Net) 23,511.56 20,987.99 34,854.63 30,215.53 93.17 75.94 23,604.72 21,063.93 RESULT Segment Results 12,152.69 10,116.38 9,802.62 7,959.10 (14.92) (0.88) 21,940.39 18,074.60 Unallocated corporate expenses 5.44 5.44 Operating Profit 21,934.95 18,069.16 Other Income 1,231.72 1,271.60 Unallocated financial expenses 13,327.25 10,639.17 Profit Before Tax 9,839.42 8,701.59 Current Tax 3,672.74 3,164.49 Deferred Tax (987.52) (858.24) MAT Credit Entitlement - - Net Profit after tax and before non-controlling interest 12,525.64 11,007.85 Less: Non-controlling interest (0.54) 4.48 Net Profit 12,524.10 11,012.33

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |698| (` in millions) Particulars BOT Projects* Construction Unallocated corporate Total 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 OTHER INFORMATION Segment assets 208,230.81 298,457.80 106,670.01 94,360.95 24,672.18 28,840.76 339,573.00 421,659.52 Segment liabilities 99,930.03 151,719.58 69,581.50 61,206.72 142,122.45 160,015.29 311,633.98 372,941.59 Depreciation and Amortisation 8,498.27 8,476.89 49.64 56.54 8,547.90 8,533.43 * BOT projects segment includes Assets held for sale (refer note 31) Footnotes: 1. Unallocated corporate assets includes current and non-current investments, goodwill, deferred tax assets, cash and bank balances and advance payment of income tax. 2. Unallocated corporate liabilities includes long term borrowings, short term borrowings, current maturities of long term borrowing, deferred tax liability and provision for taxation. 3. Unallocated corporate under segment revenue and segment results includes Real Estate Development, Windmill (Sale of electricity generated by windmill), Hospitality and Airport Infrastructure. 6. ITC LIMITED ACCOUNTING POLICY Operating Segments Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (CODM). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Corporate Management Committee. Segments are organised based on business which have similar economic characteristics as well as exhibit similarities in nature of products and services offered, the nature of production processes, the type and class of customer and distribution methods. Segment revenue arising from third party customers is reported on the same basis as revenue in the financial statements. Inter-segment revenue is reported on the basis of transactions which are primarily market led. Segment results represent profits before finance charges, unallocated corporate expenses and taxes. “Unallocated Corporate Expenses” include revenue and expenses that relate to initiatives/costs attributable to the enterprise as a whole and are not attributable to segments. Disclosure (` in Crores) 2017 2016 External Inter Segment Total External Inter Segment Total 1. Segment Revenue - Gross FMCG - Cigarettes 34001.98 – 34001.98 32348.29 – 32348.29 FMCG - Others 10498.57 13.26 10511.83 9719.62 11.55 9731.17 FMCG - Total 44500.55 13.26 44513.81 42067.91 11.55 42079.46 Hotels 1329.25 12.48 1341.73 1273.51 12.66 1286.17 Agri Business 5352.88 2911.67 8264.55 4389.34 3067.54 7456.88 Paperboards, Paper and Packaging 3819.01 1543.85 5362.86 3851.69 1476.01 5327.70 Segment Total 55001.69 4481.26 59482.95 51582.45 4567.76 56150.21 Eliminations (4481.26) (4567.76) Gross Revenue from sale of products and services 55001.69 51582.45

|699| Chap. 28 – Ind AS 108 — Operating Segments (` in Crores) 2017 2016 External Inter Segment Total External Inter Segment Total 2. Segment Results FMCG - Cigarettes 12513.91 11752.43 FMCG - Others 28.12 101.76 FMCG - Total 12542.03 11854.19 Hotels 110.95 55.69 Agri Business 905.80 933.03 Paperboards, Paper and Packaging 965.84 907.62 Segment Total 14524.62 13750.53 Eliminations 41.46 (51.13) Consolidated Total 14566.08 13699.40 Unallocated corporate expenses net of unallocated income 946.47 958.94 Profit before interest etc. and taxation 13619.61 12740.46 Finance Costs 22.95 49.13 Interest earned on loans and deposits, income from current and non-current investments, profit and loss on sale of investments etc. - Net 1906.30 1742.74 Profit before tax 15502.96 14434.07 Tax expense 5302.06 5105.70 Profit for the year 10200.90 9,328.37 3. Other Information 2017 2016 2015 Segment Segment Segment Segment Segment Segment Assets Liabilities* Assets Liabilities* Assets Liabilities* FMCG - Cigarettes 7994.51 2447.84 7946.13 2644.39 8004.99 2186.41 FMCG - Others 7113.91 1407.21 6090.74 1179.77 4849.14 861.29 FMCG - Total 15108.42 3855.05 14036.87 3824.16 12854.13 3047.70 Hotels** 5082.80 420.62 4820.29 345.39 4654.05 353.09 Agri Business 2991.57 795.88 2968.39 610.35 2650.59 691.75 Paperboards, Paper and Packaging 6322.79 623.85 6031.00 510.68 5921.98 496.07 Segment Total 29505.58 5695.40 27856.55 5290.58 26080.75 4588.61 Unallocated Corporate Assets / Liabilities 24710.37 3179.59 22174.73 3084.27 18684.06 2888.37 Total 54215.95 8874.99 50031.28 8374.85 44764.81 7476.98 * Segment Liabilities of FMCG - Cigarettes is before considering ` 629.83 Crores (2016 - ` 651.54 Crores; 2015 - ` 629.98 Crores) in respect of disputed taxes, the recovery of which has been stayed or where States’ appeals are pending before Courts. These have been included under ‘Unallocated Corporate Liabilities’. ** Includes `` 541.21 Crores (2016 - ` 541.21 Crores; 2015 - ` 515.44 Crores) towards payment to IFCI Limited and applicable stamp duty for purchase of a five star hotel resort in Goa operating under the name Park Hyatt Goa Resort & Spa and IFCI Limited issued required sale certificate in favour of the Company. The erstwhile owners of the property thereafter challenged the sale. By its judgement dated 23.03.2016, the Bombay High Court set aside the sale and directed IFCI Limited to refund the sale consideration to the Company. The Company and IFCI Limited have approached the Hon’ble Supreme Court against the High Court judgement. The Hon’ble Supreme Court by its order dated 22.04.2016 directed maintenance of status quo and that the amount paid by ITC shall remain with IFCI Limited until further orders. The matter is pending before the Hon’ble Supreme Court. The amount of ` 515.44 Crores and the stamp duty paid in 2015-16 amounting to ` 25.77 Crores, was adjusted in 2015-16 from Capital Work In Progress and reflected in Capital Advances (Refer Note 3B and Note 7). (` in Crores) 2017 2016 Capital expenditure Depreciation and amortization Capital expenditure Depreciation and amortization FMCG - Cigarettes 253.49 248.34 218.25 244.84 FMCG - Others 1153.44 236.55 734.19 204.41 FMCG - Total 1406.93 484.89 952.44 449.25

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |700| (` in Crores) 2017 2016 Capital expenditure Depreciation and amortization Capital expenditure Depreciation and amortization Hotels 398.74 169.01 291.50 187.23 Agri Business 159.44 49.13 128.46 50.63 Paperboards, Paper and Packaging 560.63 254.14 349.76 242.52 Segment Total 2525.74 957.17 1722.16 929.63 Unallocated 551.83 80.87 288.74 71.05 Total 3077.57 1038.04 2010.90 1000.68 Non-Cash expenditure other than depreciation Non-Cash expenditure other than depreciation FMCG - Cigarettes 3.13 6.73 FMCG - Others 40.14 25.19 FMCG - Total 43.27 31.92 Hotels 10.00 2.21 Agri Business 0.52 1.98 Paperboards, Paper and Packaging 22.97 23.54 Segment Total 76.76 59.65 GEOGRAPHICAL INFORMATION 2017 2016 1. Revenue from external customers – Within India 51700.52 48302.97 – Outside India 3301.17 3279.48 Total 55001.69 51582.45 2017 2016 2015 2. Non-Current Assets – Within India 21087.37 18904.85 17721.10 – Outside India 0.01 0.01 – Total 21087.38 18904.86 17721.10 Notes : (1) The Company’s corporate strategy aims at creating multiple drivers of growth anchored on its core competencies. The Company is currently focused on four business groups : FMCG, Hotels, Paperboards, Paper and Packaging and Agri Business. The Company’s organisational structure and governance processes are designed to support effective management of multiple businesses while retaining focus on each one of them. The Operating Segments have been reported in a manner consistent with the internal reporting provided to the Corporate Management Committee, which is the Chief Operating Decision Maker. (2) The business groups comprise the following: FMCG : Cigarettes – Cigarettes, Cigars etc. Others – Branded Packaged Foods Businesses (Staples; Snacks and Meals; Dairy and Beverages; Confections); Apparel; Education and Stationery Products; Personal Care Products; Safety Matches and Agarbattis. Hotels – Hoteliering. Paperboards, Paper and Packaging – Paperboards, Paper including Specialty Paper and Packaging including Flexibles. Agri Business – Agri commodities such as soya, spices, coffee and leaf tobacco.

|701| Chap. 28 – Ind AS 108 — Operating Segments (3) The geographical information considered – Sales within India. for disclosure are : – Sales outside India. (4) Segment results of ‘FMCG : Others’ are after considering significant business development, brand building and gestation costs of the Branded Packaged Foods businesses and Personal Care Products business. (5) As stock options are granted under ITC ESOS to align the interests of employees with those of shareholders and also to attract and retain talent for the enterprise as a whole, the option value of ITC ESOS do not form part of the segment performance reviewed by the Corporate Management Committee. (6) The Company is not reliant on revenues from transactions with any single external customer and does not receive 10% or more of its revenues from transactions with any single external customer. 7. LARSEN & TOUBRO LIMITED ACCOUNTING POLICY Accounting and reporting of information for Operating Segments Operating segments are those components of the business whose operating results are regularly reviewed by the chief operating decision making body in the company to make decisions for performance assessment and resource allocation. The reporting of segment information is the same as provided to the management for the purpose of the performance assessment and resource allocation to the segments. Segment accounting policies are in line with the accounting policies of the company. In addition, the following specific accounting policies have been followed for segment reporting: i) Segment revenue includes sales and other operational revenue directly identifiable with/allocable to the segment including inter segment revenue. ii) Expenses that are directly identifiable with/allocable to segments are considered for determining the segment result. iii) Most of the centrally incurred costs are allocated to segments mainly on the basis of their respective expected segment revenue estimated at the beginning of the reported period. iv) Income which relates to the company as a whole and not allocable to segments is included in “unallocable corporate income”. v) Segment result includes margins on inter-segment capital jobs, which are reduced in arriving at the profit before tax of the company. vi) Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable corporate assets and liabilities represent the assets and liabilities that relate to the company as a whole. vii) Segment non-cash expenses forming part of segment expenses includes the fair value of the employee stock options which is accounted as employee compensation cost [Note 1(r) supra] and is allocated to the segment. viii) Segment revenue resulting from transactions with other business segments is accounted on the basis of transfer prices which are either determined to yield a desired margin or agreed on a negotiated basis. Disclosure NOTE [47] Disclosure pursuant to Ind AS 108 “Operating Segment” (a) Information about reportable segment ` in Crore Particulars For the year ended 31-3-2017 For the year ended 31-3-2016 External Intersegment Total External Intersegment Total Revenue Infrastructure 46573.35 321.07 46894.42 45236.94 409.50 45646.44

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |702| ` in Crore Particulars For the year ended 31-3-2017 For the year ended 31-3-2016 External Intersegment Total External Intersegment Total Power 6938.79 – 6938.79 6425.48 1.33 6426.81 Heavy Engineering 3098.38 233.39 3331.77 2779.17 156.32 2935.49 Electrical & Automation 4058.19 223.15 4281.34 3874.66 308.69 4183.35 Others 5632.64 483.17 6115.81 5496.40 410.24 5906.64 Elimination – (1260.78) (1260.78) – (1286.08) (1286.08) Total 66301.35 – 66301.35 63812.65 – 63812.65 Segment result [Profit/(Loss) before interest and tax] Infrastructure 4147.12 4701.14 Power 201.18 112.84 Heavy Engineering 530.88 (98.48) Electrical & Automation 520.39 436.59 Others 492.07 384.36 Total 5891.64 5536.45 NOTE [47(a)] Disclosure pursuant to Indian Accounting Standard (Ind AS) 108 “Operating Segment” ` in Crore Particulars For the year ended 31-3-2017 For the year ended 31-3-2016 External Intersegment Total External Intersegment Total Inter-segment margin on capital jobs (32.83) (11.02) 5858.81 5525.43 Unallocated corporate income/(expenditure) (net) 783.78 1116.01 Operating Profit (PBIT) 6642.59 6641.44 Interest expense (1318.03) (1476.82) Interest income 539.31 530.72 Profit before tax (PBT) 5863.87 5695.34 Provision for current tax (1675.20) (1530.01) Provision for deferred tax 371.10 273.97 Profit after tax (before exceptional items) 4559.77 4439.30 Profit from exceptional items 893.97 560.28 Profit after tax (after exceptional items) 5453.74 4999.58 ` in Crore Particulars Segment assets Segment liabilities As at 31-3-2017 As at 31-3-2016 As at 1-4-2015 As at 31-3-2017 As at 31-3-2016 As at 1-4-2015 Infrastructure 43931.92 42284.29 35811.84 29858.24 27176.56 23933.86 Power 6241.46 7470.09 6158.33 6362.49 7382.07 6126.57 Heavy Engineering 4868.03 5017.80 5023.67 3270.32 3318.20 2533.52 Electrical & Automation 3007.54 2907.22 3005.70 1530.93 1338.19 1410.52 Others 7940.91 8011.28 8013.04 3967.19 3887.56 3358.18 Total 65989.86 65690.68 58012.58 44989.17 43102.58 37362.65 Unallocable corporate assets/liabilities 36742.92 34515.85 31924.50 11730.87 14968.64 14021.90 Inter-segment assets/liabilities (535.96) (585.58) (591.30) (535.96) (585.58) (591.30) Total assets/liabilities 102196.82 99620.95 89345.78 56184.08 57485.64 50793.25

|703| Chap. 28 – Ind AS 108 — Operating Segments ` in Crore Particulars Depreciation, amortisation, impairment & obsolescence included in segment expense Other non-cash expenses included in segment expense Additions to non-current assets For the year ended 31-3-2017 For the year ended 31-3-2016 For the year ended 31-3-2017 For the year ended 31-3-2016 For the year ended 31-3-2017 For the year ended 31-3-2016 Infrastructure 591.45 430.54 19.81 22.09 564.53 1158.73 Power 44.40 58.31 1.99 3.23 100.17 450.04 Heavy Engineering 105.75 110.84 2.49 3.31 92.98 231.09 Electrical & Automation 130.81 123.10 3.83 4.87 165.38 297.63 Others 122.60 151.06 4.45 5.61 75.04 131.22 Total 995.01 873.85 32.57 39.11 998.10 2268.71 Unallocable corporate 220.18 123.55 29.20 21.23 567.07 130.37 Inter-segment – – – – (166.44) (514.43) Total 1215.19 997.40 61.77 60.34 1398.73 1884.65 Note: There is no impairment in non-financial assets of the segments. Unallocable corporate expenses include impairment loss of ` 103 crore for the year ended March 31, 2017 (previous year: ` Nil). (b) Geographical information ` in Crore Particulars Revenue For the year ended 31-3-2017 For the year ended 31-3-2016 India (i) 51738.65 50117.59 Foreign countries: Kingdom of Saudi Arabia 2639.59 2178.17 United Arab Emirates 2897.95 1916.57 Qatar 4655.59 4056.36 Bangladesh 1317.00 1440.76 Other countries 3052.57 4103.20 Total foreign countries (ii) 14562.70 13695.06 Total (i)+(ii) 66301.35 63812.65 ` in Crore Particulars Non-current assets For the year ended 31-3-2017 For the year ended 31-3-2016 For the year ended 31-3-2015 India (i) 9185.28 9227.49 9318.48 Foreign countries: Qatar 235.85 305.93 142.67 Other countries 349.91 380.78 189.38 Total foreign countries (ii) 585.76 686.71 332.05 Total (i)+(ii) 9771.04 9914.20 9650.53 (c) Revenue contributed by any single customer in any of the operating segments, whether reportable or otherwise, does not exceed ten percent of the Company’s total revenue. (d) The Company’s reportable segments are organised based on the nature of products and services offered by these segments. (e) Basis of identifying operating segments, reportable segments, segment profit and definition of each reportable segment:

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |704| (i) Basis of identifying operating segments Operating segments are identified as those components of the Company (a) that engage in business activities to earn revenues and incur expenses (including transactions with any of the Company’s other components; (b) whose operating results are regularly reviewed by the Company’s Executive Management Committee (EMC) to make decisions about resource allocation and performance assessment and (c) for which discrete financial information is available. The Company has four reportable segments as described under “Segment Composition” below. The nature of products and services offered by these businesses are different and are managed separately given the different sets of technology and competency requirements. (ii) Reportable segments An operating segment is classified as reportable segment if reported revenue (including intersegment revenue) or absolute amount of result or assets exceed 10% or more of the combined total of all the operating segments. (iii) Segment profit Performance of a segment is measured based on segment profit (before interest and tax), as included in the internal management reports that are reviewed by the Company’s EMC (iv) Segment composition • Infrastructure segment comprises engineering and construction of building and factories, transportation infrastructure, heavy civil infrastructure, power transmission & distribution, water & effluent treatment and smart world & communication projects. • Power segment comprises turnkey solutions for Coal-based and Gas-based thermal power plants including power generation equipment with associated systems and/or balance-of-plant packages. • Heavy Engineering segment comprises manufacture and supply of custom designed, engineered critical equipment and systems to core sector industries like Fertiliser, Refinery, Petrochemical, Chemical, Oil & Gas, Thermal & Nuclear Power, Aerospace and Defence. • Electrical & Automation segment comprises manufacture and sale of low and medium voltage switchgear components, custom built low and medium voltage switchboards, electronic energy meters/protection (relays) systems, control & automation products. • Others segment includes metallurgical & material handling systems, realty, shipbuilding, manufacture, marketing and servicing of construction equipment and parts thereof, marketing and servicing of mining machinery and parts thereof, manufacture and sale of rubber processing machinery & castings (upto the date of sale). None of the businesses reported as part of others segment meet any of the quantitative thresholds for determining reportable segments in the year ended March 31, 2017, the year ended March 31, 2016 or as at April 1, 2015 8. RELIANCE INFRASTRUCTURE LIMITED Disclosure (a) Description of segments and principal activities The Company operates in two Business Segments namely Power and Engineering, Procurement, Construction (EPC) and Contracts. Business segments have been identified as reportable segments based on how the CODM examines the Company’s performance both from a product and geographic perspective. The inter segment pricing is effected at cost. Segment accounting policies are in line with the accounting policies of the Company.