|755| Chap. 31 – Ind AS 112 — Interest in other entities EIH Associated Hotels Ltd Mercury Car Rentals Pvt. Ltd Oberoi Mauritius Ltd March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Group’s share in % 36.81% 36.81% 40% 40% 50% 50% Group’s share in INR 1,628.80 1,495.76 416.66 395.82 280.00 358.63 Goodwill - - - - - - Carrying amount 1,628.80 1,495.76 416.66 395.82 280.00 358.63 Summarised statement of profit and loss EIH Associated Hotels Ltd Mercury Car Rentals Pvt. Ltd Oberoi Mauritius Ltd Island Resorts Ltd March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Revenue 2,699.27 2,480.78 3,156.44 2,783.23 - - 712.60 771.16 Interest income 17.50 2.16 - - 55.91 58.37 3.77 1.00 Depreciation and amortisation 141.94 155.33 946.83 765.33 - - 49.48 47.09 Interest expense 19.26 54.41 386.21 328.26 70.00 64.40 55.64 (58.05) Income tax expense 221.55 157.68 56.01 14.46 125.65 1.79 (0.32) (7.40) Profit from continuing operations 2,334.02 2,115.52 1,767.38 1,675.18 (139.74) (7.82) 611.57 790.51 Profit from discontinued operations - - - - Profit for the year 427.79 389.39 77.71 95.11 (140.53) (8.42) (0.87) 57.65 Other comprehensive income (8.06) (3.30) (4.31) (3.58) - - - - Total comprehensive income 419.74 386.09 73.40 91.53 (140.53) (8.42) (0.87) 57.65 5. GRASIM INDUSTRIES LIMITED 2.4.9 There are no investments in Joint Ventures and Associates that are individually material. Summarised financial information of joint ventures and associates as per Ind AS 112 ` in Crore Current Year Previous Year Aggregate information of Joint Ventures that are not individually material Group's share of profit/(loss) 148.20 64.60 Group's share of Other Comprehensive Income (75.21) 100.39 Group's share of Total Comprehensive Income 72.99 164.99 Aggregate information of Associates that are not individually material Group's share of profit/(loss) (18.80) 128.42 Group's share of Other Comprehensive Income (0.32) (0.56) Group's share of Total Comprehensive Income (19.12) 127.86 2.4.10 Unrecognised share of losses of a Joint Venture as per Ind AS 112 Unrecognised share of loss for the year (10.96) (12.68) Unrecognised share Other Comprehensive Income for the year (7.66) 5.74 Cumulative share of loss (30.72) (21.39) [As at 1st April 2015 : ` (8.03) Crore] Cumulative share of Other Comprehensive Income (1.70) 5.89
Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |756| 6. HINDUSTAN CONSTRUCTION COMPANY LIMITED Note 36 Interests in other entities a) Joint operations (unincorporated) The Company’s share of interest in joint operations as at 31 March 2017 is set out below. The principal place of business of all these joint operations is in India. Name of the entity % of ownership interest held by the Company Name of the ventures’ partner Principal activities As at March 31, 2017 As at March 31, 2016 As at April 1, 2015 HCC - L&T Purulia Joint Venture 57.00 57.00 57.00 Larsen and Toubro Limited Construction Nathpa Jhakri Joint venture Kumagai - Skanska - HCC - 40.00 40.00 40.00 Impregilio-Spa, Italy Skanska, Kumagai Construction Itochu Joint Venture 19.60 19.60 19.60 Itochu, Alpine Construction HCC - Alpine - Samsung Joint Venture 33.00 33.00 33.00 Meyreder Bau, Samsung Corporation Construction Alpine - HCC Joint Venture 49.00 49.00 49.00 Alpine Meyreder Bau Samsung C&T Construction HCC - Samsung Joint Venture CC-34 50.00 50.00 50.00 Corporation Construction i) Classification of joint arrangements The joint venture agreements in relation to the above mentioned joint operations require unanimous consent from all the parties for all relevant activities. All co-venturers have direct rights to the assets of the joint venture and are also jointly and severally liable for the liabilities incurred by the joint venture. These joint ventures are therefore classified as a joint operation and the Company recognises its direct right to the jointly held assets, liabilities, revenue and expenses. In respect of these contracts (assessed as AOP under the Income tax laws), the services rendered to the joint ventures are accounted as income on accrual basis As at March 31, 2017 As at March 31, 2016 As at April 1, 2015 ` in crore ` in crore ` in crore ii) Summarised balance sheet Total assets 50.54 54.77 116.45 iii) Total liabilities 71.90 79.88 127.91 Contingent liability as at reporting date Contingent liability 2.54 4.75 23.27 Year ended March 31, 2017 Year ended March 31, 2016 ` in crore ` in crore iv) Summarised statement of profit and loss account Revenue 45.58 124.82 Other income 1.96 0.45 Total expenses (including taxes) 39.84 138.93 b) Joint operations on work sharing basis Contracts executed in joint venture under work sharing arrangement (consortium) is set out below. The principal place of business of all these joint operations is in India The principal place of business of all these arrangements is in India and are engaged in construction business. i) HCC Van Oord ACZ Joint Venture iv) HCC - KBL Joint Venture ii) Samsung - HCC Joint Venture v) HCC - NCC Joint Venture iii) L & T - HCC Joint Venture vi) HCC - CEC Joint Venture
|757| Chap. 31 – Ind AS 112 — Interest in other entities vii) HCC - NOVA Joint Venture xiv) HCC - Laing - Sadbhav viii) HCC - CPL Joint Venture xv) HCC - MEIL - NCC - WPIL Joint Venture ix) HCC - MEIL - CBE Joint Venture xvi) HCC - DSD - VNR Joint Venture x) HCC - MEIL - BHEL Joint Venture xvii) MEIL - IVRCL - HCC - WPIL Joint Venture xi) HCC - MEIL - SEW - AAG Joint Venture xviii) Alstom Hydro France - HCC Joint Venture xii) HCC - MEIL - SEW Joint Venture xix) HCC - MMS (MMRCL) Joint Venture xiii) HCC - Halcrow Joint Venture xx) HCC - LCESPL (Bistan Lift) Joint venture Classification of work executed on sharing basis Contracts executed in joint venture under work sharing arrangement (consortium) is accounted to the extent work executed by the Company as that of an independent contract. c) Jointly controlled entity (joint venture) The Compan’s joint venture as at 31st March 2017 is set out below. It has share capital consisting solely of equity shares and the proportion of ownership interests held equals the voting rights held by the Company. The principal place of business of this joint venture is in India and is engaged in tolling operations. Name of the entity Name of the joint venture partner % of ownership interest held by the Company As at March 31, 2017 As at March 31, 2016 As at April 1, 2015 Dhule Palesner Tollways Limited (Refer note below) HCC Infrastructure Limited John Laing Investments Limited John Laing Investments Mauritius (No. 1) Limited Sadbhav Engineering Limited – – 35% Sadbhav Infrastructure Projects Limited Farakka Raiganj Highways Limited Hindustan Construction Company Limited HCC Concessions Limited 85% 85% 85% Baharampore Farakka Highways Limited Hindustan Construction Company Limited HCC Concessions Limited 85% 85% 85% Name of the entity Name of the joint venture partner % of ownership interest held by the Company As at March 31, 2017 As at March 31, 2016 As at April 1, 2015 Raiganj Dalkhola Highways Limited Hindustan Construction Company Limited HCC Concessions Limited 85% 85% 85% Summarised balance sheet ` crore ` crore ` crore Total assets 2,551.77 2,188.60 2,201.67 Total liabilities 2,115.37 1,723.24 1,876.48 Equity 436.40 465.36 325.19 Contingent liability/ capital commitment as at reporting date Capital commitment 852.93 766.80 949.00 Contingent liability 1173.52 656.13 658.93 Note: The Company has disposed off its substantial stake in this entity on 29th October 2015 Year ended March 31, 2017 Year ended March 31, 2016 ` crore ` crore Summarised statement of profit and loss account Revenue 504.26 395.84 Other income 1.58 2.53 Total expenses (including taxes) 534.80 431.32
Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |758| 7. POWER GRID CORPORATION OF INDIA LIMITED 46. INTEREST IN OTHER ENTITIES 46.1 Subsidiaries The Company’s subsidiaries at 31st March, 2017 are set out below. Unless otherwise stated, they have share capital consists solely of equity share that are held directly by the Company, and the proportion of ownership interest held equals the voting rights held by the Company: Company Place of business Proportion (%) of Shareholding as on Principle activities 31st March, 2017 31st March, 2016 1st April, 2015 1 Power System Operation Corporation Limited (POSOCO)* India - 100% 100% Grid Operation 2 Grid Conductor Limited** India 100% 100% - Manufacturing of Conductor 3 Powergrid Jabalpur Transmission Limited India 100% 100% 100% Transmission 4 Powergrid Kala Amb Transmission Ltd India 100% 100% 100% Transmission 5 Powergrid NM transmission Ltd India 100% 100% 100% Transmission 6 Powergrid Parli Transmission Limited India 100% 100% - Transmission 7 Powergrid Southern Interconnector Transmission Limited India 100% 100% - Transmission 8 Powergrid Unchahar Transmission Ltd India 100% 100% 100% Transmission 9 Powergrid Vemagiri transmission Ltd India 100% 100% 100% Transmission 10 Powergrid Vizag Transmission Ltd India 100% 100% 100% Transmission 11 Powergrid Warora Transmission Limited India 100% 100% - Transmission 12 Medinipur Jeerat Transmission Limited*** India 100% - - Transmission * ceased to be a subsidiary w.e.f. 2nd January, 2017 ** Share Capital of ` 0.05 crore in Grid Conductor Limited has been paid in April 2016. However based on control of composition of board of directors by Power Grid Corporation of India Limited, the company has been considered as wholly owned subsidiary company. *** 100% equity in Medinipur Jeerat Transmission Limited acquired from PFC Consulting Limited on 28th March, 2017 Financial statements used for consolidation are unaudited except for Grid Conductor Limited. 46.1.1 Pursuant to communication of Ministry of Power vide office memorandum 18/02/2015-PG dated 25th March, 2015 and 29th December, 2015, Board of Directors in its meeting held on 9th March, 2016 had approved to sell and transfer 3,06,40,000 equity shares of ` 10 each (100% shareholding) held by the company in Power System Operation Corporation Limited (POSOCO) to GOI. Accordingly, investment in above equity shares were shown as ‘Assets held for sale’ as on 31st March, 2016 in accordance with Ind AS 105 “Non-current Assets held for sale and Discontinued operation” Ministry of Power vide their order dated 23/09/2016 conveyed sanction for release of ` 81.21 crore to POWERGRID towards consideration for transfer of above equity shares based on the book value of POSOCO as at 31st March, 2013. The Company has taken up with the GOI for payment of ` 113.88 crore towards consideration for transfer of shares in POSOCO based on the book value as at 30th September, 2016. The above shares were transferred to GOI on 2nd January, 2017 after receipt of ` 81.21 crore. Matter is being pursued with Ministry of Power for payment of the balance amount of ` 32.67 crore (i.e. ` 113.88 crore- ` 81.21 crore).
|759| Chap. 31 – Ind AS 112 — Interest in other entities 46.1.2 During the year company has made investment of ` 0.01 crore in Medinipur -Jeerat Transmission Limited, a wholly owned subsidiary company. The Company was taken over from PFC Consulting Limited vide share purchase agreement dated 28th March, 2017 to carry over the business awarded under tariff based bidding, After transfer Medinipur Jeerat Transmission Limited become wholly owned subsidiary of the Company. 46.1.3 The company has made further Investment of ` 25.05 crore (Previous Year ` 0.05 crore) in Powergrid Warora Transmission Limited which is wholly owned subsidiary company of the company. 46.1.4 The company has made further Investment of ` 0.05 crore (Previous Year ` 0.05 crore) in Powergrid Parli Transmission Limited which is wholly owned subsidiary company of the company. 46.1.5 The company has made further Investment of ` 155.00 crore (Previous Year ` Nil crore) in Powergrid Vizag Transmission Limited which is wholly owned subsidiary company of the company. 46.1.6 The company has made further Investment of ` 1.00 crore (Previous Year ` Nil crore) in Powergrid Kala Amb Transmission Limited which is wholly owned subsidiary company of the company. 46.1.7 The company has made further Investment of ` 0.10 crore (Previous Year ` Nil crore) in Powergrid Jabalpur Transmission Limited which is wholly owned subsidiary company of the company. 46.1.8 The company has made further Investment of ` 12.91 crore (Previous Year ` Nil crore) in Powergrid Unchahar Transmission Limited which is wholly owned subsidiary company of the company. 46.1.9 During the year company has made Investment of ` 0.05 crore (Previous Year ` Nil crore) in Grid Conductors Limited which is wholly owned subsidiary company of the company. However based on the control of composition of board of directors by Power Grid Corporation of India Limited, the company was considered as wholly owned subsidiary company. 46.1.10 The company has made further Investment of ` 138.00 crore (Previous Year ` Nil crore) in Powergrid NM Transmission Limited which is wholly owned subsidiary company of the company. The above investment includes share application money amounting to ` 28 crore. 8. RAYMONDS LIMITED NOTE: 38 INTEREST IN OTHER ENTITIES 1. The Consolidated Financial Statements present the Consolidated Accounts of Raymond Limited with its following Subsidiaries, Joint Ventures (and its subsidiaries and Joint Ventures), Associates (and it’s Subsidiaries and Joint Ventures) : (` in lakhs) Proportion of Ownership of Interest Name Country of Incorporation Activities As at March 31, 2017 As at March 31, 2016 As at April 1, 2015 A. Subsidiaries 35365.32 40853.02 35731.18 Indian Subsidiaries: (a) Raymond Apparel Limited India Apparel 100% 100% 100% (b) Pashmina Holdings Limited India Other 100% 100% 100% (c) Everblue Apparel Limited India Garmenting 100% 100% 100% (d) J K Files (India) Limited India Tools and Hardware 100% 100% 100% (e) Colorplus Fashions Limited India * Apparel 100% 100% 100% (f) Silver Spark Apparel Limited India Garmenting 100% 100% 100% (g) Celebrations Apparel Limited India Garmenting 100% 100% 100% (h) Scissors Engineering Products Limited India Auto Component 100% 100% 100%
Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |760| (` in lakhs) Proportion of Ownership of Interest Name Country of Incorporation Activities As at March 31, 2017 As at March 31, 2016 As at April 1, 2015 (i) Ring Plus Aqua Limited India $ Auto Component 89.07% 89.07% 89.07% (j) JK Talabot Limited India # Tools and Hardware 90% 90% 90% (k) Raymond Woollen Outerwear Limited India Textiles 99.54% 99.54% 99.54% (l) Raymond Luxury Cottons Limited India Shirting 75.69% 75.69% 61.68% (m) Dress Master Apparel Private Limited (Previously Known as Robert Systems Private Limited) India @ Garmenting 100% 100% NA * Held by Raymond Apparel Limited $ Held by Scissors Engineering Products Limited # Held by J K Files (India) Ltd. @ Held by Silver Spark Apparel Limited (` in lakhs) Proportion of Ownership of Interest Name Country of Incorporation Activities As at March 31, 2017 As at March 31, 2016 As at April 1, 2015 A. Subsidiaries Foreign Subsidiaries : (a) Jaykayorg AG Switzerland * Textiles 100% 100% 100% (b) Raymond (Europe) Limited United Kingdom * Garmenting 100% 100% 100% (c) R&A Logistics Inc. United States of America + Auto Components 100% 100% 100% (d) Raymond Lifestyle International DMCC United Arab Emirates Garmenting 100% 100% – (e) Silver Spark Middle East FZE United Arab Emirates * Garmenting 100% – – (f) Silver Spark Apparel Ethiopia ^* Garmenting 100% – – + Held by Ring Plus Aqua Limited * Financial year ends on 31st December. ^ Held by Silver Spark Apparel Limited (` in lakhs) Proportion of Ownership of Interest Name Country of Incorporation Activities As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015 B. Joint Ventures and Jointly controlled entities (a) Raymond UCO Denim Private Limited (and its subsidiaries and Joint Ventures) [RUDPL] India Denim 50% 50% 50% UCO Fabrics Inc.and its Subsidiaries USA
|761| Chap. 31 – Ind AS 112 — Interest in other entities UCO Testatura S.r.l. Romania UCO Raymond Denim Holding NV Belgium (b) Rose Engineered Products India Private Limited (till 20th September, 2016) India & Auto Components NA 50% 50% & Held by Ring Plus Aqua Limited subsidiary of scissors C. Associates and their Subsidiary and Joint Venture : (Effective Holdings) (` in lakhs) Proportion of Ownership of Interest Name Country of Incorporation Activities As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015 (a) P. T. Jaykay Files Indonesia * Indonesia $ Tools and Hardware 39.20% 39.20% 39.20% (b) J. K Investo Trade (India) Limited (and its subsidiaries and Joint Ventures) FMCG 47.66% 47.66% 47.66% J. K. Helene Curtis Limited India + 47.66% 47.66% 47.66% J. K. Helene Curtis International FZE United Arab Emirates “ 47.66% 47.66% 47.66% J. K. Ansell Limited India ^ 23.83% 23.83% 23.83% (c) Radha Krishna Films Limited India Entertainment 25.38% 25.38% 25.38% $ Includes 15.20% equity shares held by Jaykayorg AG. + 100% Subsidiary of J K Investo Trade (India) Limited ^ 50% Joint Venture of J K Investo Trade (India) Limited * Financial year ends on 31st December. “ 100% Subsidiary of J K Helene Curtis Limited Note:- Below mentioned information relates to the Propotionate of Group’s Share. i) Jointly controlled entities. (` in lakhs) Country of Incorporation Percentage of Ownership interest As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015 1) Raymond UCO Denim Pvt. Ltd. India 50% 50% 50% 2) Rose Engineered Product India Pvt. Ltd.* India ** 50% 50% * Held through subsidiaries and disposed off on 20th September, 2016. ii) Investment in Associates (` in lakhs) Country of Incorporation Percentage of Ownership interest As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015 1) J. K. Investo Trade (India) Limited India 47.66% 47.66% 47.66% 2) P. T. Jaykay Files Indonesia Indonesia 39.20% 39.20% 39.20% 3) Radha Krishna Films Limited India 25.38% 25.38% 25.38%
Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |762| Summarised Financial Information (` in lakhs) Joint Venture Associates Raymond Uco Denim Private Limited Rose Engineered Products India Private Limited J K Investo Trade (India) Limited Other associates 31st March, 2017 31st March, 2016 1st April, 2015 31st March, 2017 31st March, 2016 1st April, 2015 31st March,’ 2017 31st March, 2016 1st April, 2015 31st March, 2017 31st March, 2016 1st April, 2015 (A) Non Current Assets 25464.98 24372.12 17470.57 – 666.28 697.06 20860.47 14030.00 14205.35 677.60 351.53 401.83 (B) Current Assets i) Cash and cash equivalent 22.39 109.22 200.09 – 92.48 105.21 414.58 185.80 363.16 375.86 199.57 354.56 ii) Others 22606.72 20475.99 19187.16 – 712.73 483.27 2758.34 2421.72 3095.98 1091.01 968.37 1092.16 Total Current Asset 22629.10 20585.21 19387.25 – 805.21 588.48 3172.93 2607.53 3459.14 1466.86 1167.94 1446.72 Total Asset (A+B) 48094.08 44957.32 36857.82 – 1471.49 1285.53 24033.40 16637.53 17664.49 2144.47 1519.47 1848.55 (A) Non Current Liabilities i) Financial Liabilities 14322.98 13126.18 9608.08 – 5.05 – – – – 278.34 – – ii) Non Financial Liabilities 2519.56 3368.64 1884.54 – – 19.73 1293.11 643.73 761.60 395.91 321.59 262.80 Total Non Current Liabilities 16842.54 16494.82 11492.62 – 5.05 19.73 1293.11 643.73 761.60 674.24 321.59 262.80 (B) Current Liabilities i) Financial Liabilities 26629.00 21853.72 19891.47 – 413.35 236.22 1792.16 2067.22 2385.50 796.58 298.42 258.10 ii) Non Financial Liabilities 866.46 810.34 745.30 – 64.41 33.13 839.12 73.60 62.68 60.02 3.86 2.86 Total Current Liabilities 27495.46 22664.06 20636.77 – 477.76 269.35 2631.27 2140.82 2448.18 856.60 302.28 260.96 Total Liabilities (A+B) 44337.99 39158.88 32129.39 – 482.81 289.08 3924.38 2784.55 3209.78 1530.85 623.87 523.76 Net Assets 3756.08 5798.45 4728.44 – 988.68 996.45 20109.02 13852.98 14454.71 613.62 895.60 1324.79 9. RELIANCE INFRASTRUCTURE LIMITED INTERESTS IN OTHER ENTITIES (a) Subsidiaries The Group’s subsidiaries at March 31, 2017 are set out below. Unless otherwise stated, they have share capital consisting solely of equity shares that are held directly either by Parent Company or its subsidiaries/the Group and the proportion of ownership interests held equals the voting rights held by the Group either through equity shares, management agreement or structure of the entity. The country of incorporation or registration is also their principal place of business.
|763| Chap. 31 – Ind AS 112 — Interest in other entities Name of entity Principal activities Place of business/ country of incorporation Controlling Interest held by the Group Non-controlling Interest As at March 31, 2017 As at March 31, 2016 As at April 1, 2015 As at March 31, 2017 As at March 31, 2016 As at April 1, 2015 % % % % % % BSES Rajdhani Power Limited Power distribution India 51.00 51.00 51.00 49.00 49.00 49.00 BSES Yamuna Power Limited Power distribution India 51.00 51.00 51.00 49.00 49.00 49.00 BSES Kerala Power Limited Power generation India 100.00 100.00 100.00 - - - Reliance Power Transmission Limited Power transmission India 100.00 100.00 100.00 - - - Parbati Koldam Transmission Company Limited Power transmission India 74.00 74.00 74.00 26.00 26.00 26.00 Mumbai Metro One Private Limited Metro rail concession India 69.00 69.00 69.00 31.00 31.00 31.00 Mumbai Metro Transport Private Limited Metro rail concession India 48.00 48.00 48.00 52.00 52.00 52.00 Delhi Airport Metro Express Private Limited Metro rail concession India 95.00 95.00 95.00 5.00 5.00 5.00 Tamilnadu Industries Captive Power Company Limited Power generation India 33.70 33.70 33.70 66.30 66.30 66.30 Reliance Sea Link One Private Limited Sea link concession India 90.00 90.00 90.00 10.00 10.00 10.00 SU Toll Road Private Limited Toll road concession India 100.00 100.00 100.00 - - - TD Toll Road Private Limited Toll road concession India 100.00 100.00 100.00 - - - TK Toll Road Private Limited Toll road concession India 100.00 100.00 100.00 - - - DS Toll Road Limited Toll road concession India 100.00 100.00 100.00 - - - NK Toll Road Limited Toll road concession India 100.00 100.00 100.00 - - - GF Toll Road Private Limited Toll road concession India 100.00 100.00 100.00 - - - JR Toll Road Private Limited Toll road concession India 100.00 48.00 48.00 - 52.00 52.00 PS Toll Road Private Limited Toll road concession India 74.00 74.00 74.00 26.00 26.00 26.00 KM Toll Road Private Limited Toll road concession India 100.00 100.00 100.00 - - - HK Toll Road Private Limited Toll road concession India 100.00 100.00 100.00 - - - DA Toll Road Private Limited Toll road concession India 100.00 100.00 100.00 - - - Nanded Airport Private Limited Airport concession India 100.00 100.00 100.00 - - - Baramati Airport Private Limited Airport concession India 100.00 100.00 100.00 - - - Latur Airport Private Limited Airport concession India 100.00 100.00 100.00 - - - Yavatmal Airport Private Limited Airport concession India 100.00 100.00 100.00 - - -
Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |764| Name of entity Principal activities Place of business/ country of incorporation Controlling Interest held by the Group Non-controlling Interest As at March 31, 2017 As at March 31, 2016 As at April 1, 2015 As at March 31, 2017 As at March 31, 2016 As at April 1, 2015 % % % % % % Osmanabad Airport Private Limited Airport concession India 100.00 100.00 100.00 - - - Reliance Airport Developers Private Limited Airport concession India 100.00 100.00 100.00 - - - CBD Tower Private Limited Trade tower and business district construction India 89.00 89.00 89.00 11.00 11.00 11.00 10. SUNDARAM-CLAYTON LIMITED 39 INTERESTS IN OTHER ENTITIES a) Subsidiaries The group’s subsidiaries at 31st March, 2017 are set out below. Unless otherwise stated, they have share capital consisting solely of equity shares that are held directly by the group, and the proportion of ownership interests held equals the voting rights held by the group. The country of incorporation or registration is also their principal place of business. Name of entity Place of business / country of incorporation Ownership interest held by the group Ownership interest held by non-controlling interests Principal activities 31- Mar-17 31- Mar-16 01-Apr15 31- Mar-17 31- Mar-16 01-Apr15 TVS Motor Company Limited India 57% 57% 57% 43% 43% 43% Motor vehicles manufacturing Sundaram Holding USA Inc., Delaware, USA USA 71% 68% NA 29% 32% NA Automotive components TVS Housing Limited India 57% 57% 57% 43% 43% 43% Housing Sundaram Auto Components Limited (SACL) India 57% 57% 57% 43% 43% 43% Automotive components TVS Motor Company (Europe) B.V., Amsterdam Netherlands 57% 57% 57% 43% 43% 43% Others TVS Motor (Singapore) Pte. Limited, Singapore Singapore 57% 57% 57% 43% 43% 43% Others PT.TVS Motor Company Indonesia, Jakarta Indonesia 57% 57% 57% 43% 43% 43% Motor vehicles manufacturing Sundaram Business Development Consulting (Shanghai) Co. Ltd., Shanghai China NA 57% 57% NA 43% 43% Others b) Non-Controlling Interest Set out below is summarised financial information for each subsidiary that has non-controlling interest that are material to the group. The amount disclosed for each subsidiary are before inter company eliminations. Summarised balance sheet TVS Motor Company Limited Sundaram Auto Components Limited 31-Mar-17 31-Mar-16 01-Apr-15 31-Mar-17 31-Mar-16 01-Apr-15 Current assets 2,186.89 1,886.37 1,943.29 287.42 234.37 243.50 Current liabilities 2,851.08 2,315.88 2,178.27 331.85 274.43 252.84 Net current assets / (liabilities) (664.19) (429.51) (234.98) (44.43) (40.06) (9.34)
|765| Chap. 31 – Ind AS 112 — Interest in other entities Summarised balance sheet TVS Motor Company Limited Sundaram Auto Components Limited 31-Mar-17 31-Mar-16 01-Apr-15 31-Mar-17 31-Mar-16 01-Apr-15 Non-current assets 3,717.78 3,065.81 2,610.36 226.62 180.21 140.41 Non-current liabilities 645.26 677.96 691.94 13.92 10.41 17.02 Net non-current assets 3,072.52 2,387.85 1,918.42 212.70 169.80 123.39 Net assets 2,408.33 1,958.34 1,683.44 168.27 129.74 114.05 Accumulated NCI 1,025.95 834.25 717.15 71.68 55.27 48.59 (Rupees in crores) Summarised Statement of profit and loss TVS Motor Company Limited Sundaram Auto Components Limited 31-Mar-17 31-Mar-16 31-Mar-17 31-Mar-16 Revenue 13,363.43 12,194.77 2,915.93 2,798.17 Profit for the year 558.08 489.28 25.06 29.38 Other comprehensive income 33.20 (7.70) (0.65) (0.47) Total comprehensive income 591.28 481.58 24.41 28.91 Profit allocated to NCI 251.89 205.15 10.40 12.32 Dividends paid to NCI 50.60 73.87 3.50 4.68 Summarised Cash Flow Statement TVS Motor Company Limited Sundaram Auto Components Limited 31-Mar-17 31-Mar-16 31-Mar-17 31-Mar-16 Cash flow from operating activities 697.45 942.62 32.21 57.03 Cash flow from investing activities (721.64) (609.69) (47.17) (47.26) Cash flow from financing activities (72.70) (306.05) 11.81 (24.95) Net increase/ (decrease) in cash and cash equivalents (96.89 ) 26.88 (3.15) (15.18) c) Interests in associates and joint ventures The group has interests in 3 individually immaterial associates that are accounted using equity method. Particulars 31-Mar-17 31-Mar-16 01-Apr-15 Aggregate carrying amount of individually immaterial associates 91.77 50.84 47.18 Particulars 31-Mar-17 31-Mar-16 Share of profits from associates 0.89 3.08 Other Comprehensive Income (0.03) (0.02) Total Comprehensive Income 0.86 3.06 11. TATA GLOBAL BEVERAGES LIMITED 35. INTEREST IN OTHER ENTITIES a) Subsidiaries The Group’s subsidiaries as at March 31, 2017 are set out below. Unless otherwise stated, they have share capital consisting solely of equity shares that are held directly by the Group. The country of incorporation or registration is also their principal place of business and effective ownership is set out below: Sl No. Name of entity Country of incorporation Principal Activities Effective ownership (%) Interest held by noncontrolling interests (%) 2017 2016 2017 2016 1 Tata Global Beverages Group Ltd. U K Holding company 89.10 88.65 10.90 11.35
Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |766| Sl No. Name of entity Country of incorporation Principal Activities Effective ownership (%) Interest held by noncontrolling interests (%) 2017 2016 2017 2016 Subsidiaries of Tata Global Beverages Group Ltd. 2 Tata Global Beverages Holdings Ltd. U K Holding company 89.10 88.65 10.90 11.35 3 Tata Global Beverages Services Ltd. U K Provision of services 89.10 88.65 10.90 11.35 4 Tata Global Beverages GB Ltd. U K Manufacturing, marketing and distribution of tea 89.10 88.65 10.90 11.35 5 Tata Global Beverages Overseas Holdings Ltd. U K Holding company 89.10 88.65 10.90 11.35 6 Tata Global Beverages Overseas Ltd. U K Holding company 89.10 88.65 10.90 11.35 7 Lyons Tetley Ltd. U K Dormant 89.10 88.65 10.90 11.35 8 Drassington Ltd. U K Dormant 89.10 88.65 10.90 11.35 9 Teapigs Ltd. U K Marketing and distribution of tea 89.10 88.65 10.90 11.35 10 Teapigs US LLC USA Marketing and distribution of tea 89.10 88.65 10.90 11.35 11 Stansand Ltd. U K Dormant 89.10 88.65 10.90 11.35 12 Stansand (Brokers) Ltd. U K Dormant 89.10 88.65 10.90 11.35 13 Stansand (Africa) Ltd. Kenya Purchase and sale of tea 89.10 88.65 10.90 11.35 14 Stansand (Central Africa) Ltd. Malawi Purchase and sale of tea 89.10 88.65 10.90 11.35 15 Tata Global Beverages Polska sp.zo.o Poland Marketing and distribution of tea 89.10 88.65 10.90 11.35 16 Tata Global Beverages Czech Republic a.s. Czech Republic Manufacturing, marketing and distribution of tea 89.10 88.65 10.90 11.35 17 Tata Global Beverages US Holdings Inc. USA Holding company 89.10 88.65 10.90 11.35 18 Tetley USA Inc. USA Marketing and distribution of tea 89.10 88.65 10.90 11.35 19 Empirical Group LLC (w.e.f October 1, 2016) USA Marketing and distribution of tea 49.90 - 50.10 - 20 Tata Water LLC (w.e.f August 28, 2016) USA Marketing and distribution of water 89.10 - 10.90 - 21 Good Earth Corporation USA Holding company 89.10 88.65 10.90 11.35 22 Good Earth Teas Inc. USA Marketing and distribution of tea 89.10 88.65 10.90 11.35 23 Tata Global Beverages Canada Inc. Canada Marketing and distribution of tea 89.10 88.65 10.90 11.35 24 Tata Global Beverages Australia Pty Ltd. Australia Marketing and distribution of tea 89.10 88.65 10.90 11.35 25 Earth Rules Pty Ltd. Australia Marketing and distribution of coffee 89.10 88.65 10.90 11.35
|767| Chap. 31 – Ind AS 112 — Interest in other entities Sl No. Name of entity Country of incorporation Principal Activities Effective ownership (%) Interest held by noncontrolling interests (%) 2017 2016 2017 2016 26 Tata Global Beverages Investments Ltd. U K Holding company 89.10 88.65 10.90 11.35 27 Campestres Holdings Ltd. Cyprus Holding company 89.10 88.65 10.90 11.35 28 Kahutara Holdings Ltd. Cyprus Holding company 57.92 57.62 42.08 42.38 29 Suntyco Holding Ltd. Cyprus Holding company 57.92 57.62 42.08 42.38 30 Onomento Co. Ltd. Cyprus Holding and assignment of Trademark 57.92 57.62 42.08 42.38 31 OOO Tea Trade LLC Russia Commission trade of Tea and Coffee 57.92 57.62 42.08 42.38 32 OOO Sunty LLC Russia Manufacturing, marketing and distribution of tea and Coffee 57.92 57.62 42.08 42.38 33 Tata Global Beverages Capital Ltd UK Holding company 100.00 100.00 - - 34 Tata Coffee Ltd. India Manufacturing, marketing and distribution of Coffee & tea 57.48 57.48 42.52 42.52 Subsidiaries of Tata Coffee Ltd. 35 Tata Coffee Vietnam Company Ltd. (w.e.f. March 28, 2016) Vietnam Manufacturing, marketing and distribution of Coffee 57.48 - 42.52 - 36 Consolidated Coffee Inc. USA Holding company 78.70 78.70 21.30 21.30 Subsidiaries of Consolidated Coffee Inc. 37 Eight O’Clock Holdings Inc. USA Holding company 78.70 78.70 21.30 21.30 38 Eight O’Clock Coffee Inc. USA Manufacturing, marketing and distribution of Coffee 78.70 78.70 21.30 21.30 39 Tata Tea Extractions Inc. USA Manufacturing, marketing and distribution of tea 100.00 100.00 - - 40 Zhejiang Tata Tea Extraction Company Ltd. China Manufacturing, marketing and distribution of tea 89.75 81.46 10.25 18.54 41 Tata Tea Holdings Private Ltd. India Investment company 100.00 100.00 - - During the year, Tata Global Beverages Capital Limited a 100% overseas subsidiary of the Holding Company has increased its shareholding in Tata Global Beverages Group Limited from 47.98% to 48.43%, consequently effective holding has increased from 88.65% to 89.10%, the said transaction with non-controlling interest is reflected in Statement of Changes in Equity. During the year, the Holding Company has increased its stake in Zhejiang Tata Tea Extractions Company Ltd., consequently shareholding has increase from 81.46% to 89.75%. ll
Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |768| Chapter 32 Ind AS 114 — Regulatory Deferral Accounts 1. NTPC LIMITED ACCOUNTING POLICY Regulatory Deferral Accounts (i) Nature of rate regulated activities The Company is mainly engaged in generation and sale of electricity. The price to be charged by the Company for electricity sold to its customers is determined by the CERC which provides extensive guidance on the principles and methodologies for determination of the tariff for the purpose of sale of electricity. The tariff is based on allowable costs like interest, depreciation, operation & maintenance expenses, etc. with a stipulated return. This form of rate regulation is known as cost-of-service regulations which provide the Company to recover its costs of providing the goods or services plus a fair return. The Company is eligible to apply Ind AS 114, Regulatory Deferral Accounts. The standard permits an eligible entity to continue previous GAAP (Guidance Note on Accounting for Rate Regulated Activities) accounting policy for its regulatory deferral account balances. Hence, Company has opted to continue with its previous GAAP accounting policy for such balances. (ii) Recognition and measurement As per the CERC Tariff Regulations, any gain or loss on account of exchange risk variation during the construction period shall form part of the capital cost till the declaration of Commercial Operation Date (COD) to be considered for calculation of tariff. The CERC during the past period in tariff orders for various stations has allowed exchange differences incurred during the construction period in the capital cost. Accordingly, exchange difference arising during the construction period is within the scope of Ind AS 114. In view of the above, exchange differences arising from settlement/translation of monetary item denominated in foreign currency to the extent recoverable from or payable to the beneficiaries in subsequent periods as per CERC Tariff Regulations are recognized on an undiscounted basis as ‘Regulatory deferral account debit/credit balance’ by credit/debit to ‘Movements in Regulatory deferral account balances’ during construction period and adjusted from the year in which the same becomes recoverable from or payable to the beneficiaries. Revision of pay scales of employee of PSEs are due w.e.f. 1st January, 2017 (Refer Note 33). The recommendations of the constituted committee to the Government inter-alia includes superannuation benefits @ 30% of basic + DA to be provided to the employees of CPSEs which includes gratuity at the enhanced ceiling of ` 0.20 crore and the enhanced amount from ` 0.10 crore to ` 0.20 crore will be borne by the Company. As per Proviso 8(3) of Terms and Conditions of Tariff Regulations 2014 applicable for the period 2014-19, truing up exercise in respect of Change in Law or compliance of existing law will be taken up by CERC. The proposed increase in gratuity from ` 0.10 crore to ` 0.20 crore falls under the category of ‘Change in law’. CERC Tariff Regulations provide truing up of capital expenditure, subject to prudence check, considering inter-alia change in laws. Considering the methodology followed by the CERC in the previous pay revision and the provisions of CERC Tariff Regulations, 2014, a regulatory asset has been created (Regulatory deferral account debit balance) towards the increase in O&M expenditure due to the pay revision. This will be claimed upon implementation of revision of pay scales and discharge of related liabilities. (iii) Risks associated with future recovery/reversal of regulatory deferral account balances (i) demand risk due to changes in consumer attitudes, the availability of alternative sources of supply (ii) regulatory risk on account of submission or approval of a rate-setting application or the entity’s assessment of the expected future regulatory actions
|769| Chap. 32 – Ind AS 114 — Regulatory Deferral Accounts (iii) other risks including currency or other market risks, if any (iv) Reconciliation of the carrying amounts The regulated assets/liability recognized in the books to be recovered from or payable to beneficiaries in future periods are as follows: a) Regulatory deferral account credit balance - Note 36 ` in Crore Particulars 31st March, 2017 31st March, 2016 A. Opening balance 295.65 307.74 B. Addition during the year 193.38 (8.45) C. Amount collected/refunded during the year 6.29 3.64 D. Regulatory deferral account balances recognized in the Statement of Profit & Loss (B-C) 187.09 (12.09) E. Closing balance (A+D 482.74 295.65 b) Regulatory deferral account debit balance - Note 20 The regulated assets/liability recognized in the books to be recovered from or payable to beneficiaries in future periods are as follows: ` in Crore Particulars 31st March, 2017 31st March, 2016 A. Opening balance - - B. Addition during the year 522.83 - C. Amount collected/refunded during the year - - D. Regulatory deferral account balances recognized in the Statement of Profit & Loss (B-C) 522.83 - E. Closing balance (A+D) 522.83 - c) Total amount recognized in the Statement of Profit & Loss during the year 335.74 12.09 The Company expects to recover the carrying amount of regulatory deferral account debit balance over a period of 4-5 years. 2. POWER GRID CORPORATION OF INDIA LIMITED ACCOUNTING POLICY Regulatory Deferral Accounts Net movement in Regulatory Deferral Account Balances Certain expenses and income, allowed under CERC Regulations to be reimbursed by/passed on to the beneficiaries in future, are to be accounted in the Statement of Profit and Loss as per the provisions of Ind AS 114, ‘Regulatory Deferral Accounts’. Such expenses and income, to the extent recoverable/ payable as part of tariff under CERC Regulations are treated as Regulatory Deferral Assets/Liabilities. Net movement in Regulatory in Deferral Account Balances-Income/(Expenses) for Fiscal 2017 stood at ` 69.93 crore in comparison to ` (0.05) crore. Rate Regulated Activities Certain expenses and income, allowed under CERC regulations to be reimbursed by/passed on to beneficiaries in future, are to be accounted in the Statement of Profit and Loss as per the provisions of Ind AS 114 ‘Regulatory Deferral Accounts’. Such expenses and income, to the extent recoverable /payable as part of tariff under CERC Regulations are treated as Regulatory Deferral Assets/Liabilities.
Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |770| The Company presents separate line items in the Balance Sheet for: (a) The total of all Regulatory Deferral Account Debit Balances; and (b) The total of all Regulatory Deferral Account Credit Balances. A separate line item is presented in the profit or loss section of the Statement of Profit and Loss for the net movement in all Regulatory Deferral Account Balances for the reporting period. Disclosures relating to Regulatory Deferral Account Balances The Company is mainly engaged in the business of transmission of power. The tariff for transmission of power is determined by the CERC through tariff regulations. The tariff is based on capital cost admitted by CERC and provides for transmission charges recovery of annual fixed cost consisting of Return on equity, Interest on loan capital, Depreciation, interest on working capital and Operation & Maintenance expenses. FERV arising during the construction period for settlement/transmission of monetary items (other than non-current loans) denominated in foreign currency to the extent recoverable/payable to the beneficiaries as capital cost as per CERC Tariff Regulations are accounted as Regulatory Deferral Account Balances. In respect of long term foreign currency loan drawn on or after 1st April, 2016, exchange difference to the extent recoverable as per CERC Tariff Regulations are recognised as Regulatory Deferral Account Balances. The company expects to recover these amounts through depreciation component of the tariff over the life of the asset or as exchange rate variation on repayment of the loan. The impact of pay revision effective from 1st January, 2017 was not considered while fixing the norms for recovery of Operation and Maintenance charges under the CERC Tariff Regulations 2014, which are valid for the period 1st April, 2014 to 31st March, 2019. Keeping in view the provisions of the Ind AS 114 ‘Regulatory Deferral Accounts’, CERC Tariff Regulations 2014, the Company has recognized an amount of ` 103.18 crore as recoverable from the beneficiaries in subsequent periods under Regulatory Deferral Account Balances. These balances are to be adjusted in the year in which they become recoverable from beneficiaries as per approval of the CERC. The Regulatory Deferral Account Balances (assets) recognized in the books to be recovered from the beneficiaries in future periods are as follows: Particulars Regulated Assets (` in crore) A. Opening Balance as on 1st April, 2015 37.72 B. Addition/(deduction) during the year (0.05) C. Amount collected/refunded during the year NIL D. Regulated Income/(Expense) recognized in the statement of Profit and Loss (0.05) E. Closing Balance as on 31st March, 2016 37.67 F. Opening Balance as on 1st April, 2016 37.67 G. Addition/(deduction) during the year 69.93 H. Amount collected/refunded during the year NIL I. Regulated Income/(Expense) recognized in the statement of Profit and Loss 69.93 J. Closing Balance as on 31st March, 2017 107.60 Any change in the Tariff regulations beyond the current tariff period ending on 31st March, 2019 may have an impact on the recovery of Regulatory Deferral Account Balances. 3. RELIANCE INFRASTRUCTURE LIMITED ACCOUNTING POLICY (i) Basis of Preparation These financial statements are presented in ‘Indian Rupees’, which is also the Company’s functional currency and all amounts, are rounded to the nearest Crore, with two decimals, unless otherwise stated. The financial
|771| Chap. 32 – Ind AS 114 — Regulatory Deferral Accounts statements have been prepared in accordance with the requirements of the information and disclosures mandated by Schedule III to the Act, applicable Ind AS, other applicable pronouncements and regulations. The tariff in respect of Company’s Mumbai Generation, Transmission and Distribution Business is subject to approval from Regulatory Authorities. The basis of accounting for regulatory deferral balances of such businesses is in accordance with the provisions of Ind AS 114 “Regulatory Deferral Accounts” read with the Guidance Note on Rate Regulated Activities issued by The Institute of Chartered Accountants of India (ICAI). (ii) Current versus Non-Current Classification The Company presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is treated as current when it is: • Expected to be realised or intended to be sold or consumed in normal operating cycle • Expected to be realised within twelve months after the reporting period, or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period • Held primarily for the purpose of trading All other assets are classified as non-current. A liability is current when: • It is expected to be settled in normal operating cycle • It is due to be settled within twelve months after the reporting period, or • There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. • Held primarily for the purpose of trading All other liabilities are classified as non-current. The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle. Deferred tax assets and liabilities are classified as non-current assets and liabilities. Regulatory Assets/Liabilities are presented as separate line item distinguished from assets and liabilities as per Ind AS 114. Revenue Recognition (i) Power Business The Company determines revenue gaps (i.e. surplus/shortfall in actual returns over returns entitled) in respect of its regulated operations in accordance with the provisions of Ind AS 114 “Regulatory Deferral Accounts” read with the Guidance Note on Rate Regulated Activities issued by ICAI and based on the principles laid down under the relevant Tariff Regulations/Tariff Orders notified by the Electricity Regulator and the actual or expected actions of the regulator under the applicable regulatory framework. Appropriate adjustments in respect of such revenue gaps are made in the revenue of the respective year for the amounts which are reasonably determinable and no significant uncertainty exists in such determination. These adjustments/accruals representing revenue gaps are carried forward as Regulatory deferral accounts debit/ credit balances (Regulatory Assets/Regulatory Liabilities) as the case may be in the financial statements, which would be recovered/refunded through future billing based on future tariff determination by the regulator in accordance with the electricity regulations. The Company presents separate line items in the balance sheet for: i. the total of all regulatory deferral account debit balances and related deferred tax balances; and ii. the total of all regulatory deferral account credit balances and related deferred tax balances. A separate line item is presented in the Statement of Profit and Loss for the net movement in regulatory deferral account net of deferred tax for the reporting period.
Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |772| 4. TATA POWER LIMITED ACCOUNTING POLICY Regulatory Deferral Accounts As per the Ind AS 114 ‘Regulatory Deferral Accounts’ the business of electricity distribution is a Rate Regulated activity wherein the regulators determine Tariff to be charged from consumers based on prevailing regulations in place. The Multi Year Tariff (MYT) Regulations issued by respective State Regulators is applicable to the Group’s distribution business. According, to these regulations, the regulators shall determine tariff in a manner in which the Group can recover its fixed and variable costs including assured rate on return approved equity base, from its consumers. The Group determines the Revenue, Regulatory Assets and Liabilities as per the terms and conditions specified in respective MYT Regulations. 18. Regulatory Deferral Accounts As at 31st March, 2017 ` crore As at 31st March, 2016 ` crore As at 1st April, 2015 ` crore Regulatory Deferral Account - Liability Regulatory Liabilities 656.00 680.38 18.36 Total 656.00 680.38 18.36 Regulatory Deferral Account - Asset Regulatory Assets 6,481.35 7,334.28 7,677.16 Total 6,481.35 7,334.28 7,677.16 (ii) Reconciliation of Regulatory Assets/Liabilities of distribution business as per Rate Regulated Activities as on 31st March, 2017, and 31st March, 2016 is as follows: As at 31st March, 2017 ` crore As at 31st March, 2016 ` crore Opening Regulatory Assets net of Liabilities (A) 6,653.90 7,658.80 Regulatory Income/(Expenses) during the year (i) Power Purchase Cost 7,368.48 7,311.45 (ii) Other expenses as per the terms of Tariff Regulations including ROE 1,820.31 2,530.09 (iii) Collected during the year as per approved Tariff (9,875.25) (10,649.51) Regulatory Expenses (net) (i + ii + iii) (686.46) (807.97) Regulatory Income/(Expenses) (net) in respect of earlier years 77.00 (167.27) Expenses on account of Rate Regulated Activities (B) (609.46) (975.24) Carrying cost recognised in the Statement of Profit and Loss relating to uncollected amounts (C) 103.16 219.72 Amount Collected (net) in respect of earlier years (D) (322.25) (249.38) Closing Regulatory Asset (A+B+C+D) 5,825.35 6,653.90 Regulatory Assets 6,481.35 7,334.28 Regulatory Liabilities. (656.00) (680.38) Total 5,825.35 6,653.90 ll